Document:

<PAGE>
                                                                     EXHIBIT 4.9

                             ======================

                               Roadway Corporation
                                    as Issuer

                                 The Guarantors
                                  Named Herein

                                       and

                                  SunTrust Bank
                                   as Trustee

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

                                    Indenture

                          Dated as of November 30, 2001

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

                    8 1/4 % Senior Notes Due December 1, 2008

                             =====================

<PAGE>

                                ROADWAY INDENTURE
                         DETAILED CROSS-REFERENCE TABLE

                                  Text in bold

<TABLE>
<CAPTION>
TIA                                                                  INDENTURE
SECTION                                                              SECTION
<S>                                                               <C>
310(a)(1).............................................................   7.10
   (a)(2).............................................................   7.10
   (a)(3).............................................................   N.A.
   (a)(4).............................................................   N.A.
   (a)(5).............................................................   7.10
   (b)................................................................   7.08
   (c)................................................................   N.A.

311(a)................................................................   7.03
   (b)................................................................   7.03
   (c)............................................................. ..   N.A.

312(a)................................................................   12.02
   (b)................................................................   12.02
   (c)................................................................   12.02

313(a)................................................................   7.06
   (b)................................................................   N.A.
   (c)................................................................   7.06
   (d)................................................................   7.06

314(a)................................................................   4.10, 4.11
   (b)(1).............................................................   N.A.
   (b)(2).............................................................   N.A.
   (c)(1).............................................................   12.04
   (c)(2).............................................................   12.04
   (c)(3).............................................................   N.A.
   (d)................................................................   N.A.
   (e)................................................................   12.05
   (f)................................................................   N.A.

315(a)................................................................   7.01, 7.02
   (b)................................................................   7.02, 7.05
   (c)................................................................   7.01
   (d)................................................................   7.02
   (e)................................................................   6.12, 7.02

</TABLE>

<PAGE>

316(a)(last sentence).................................     2.05
(a)(1)(A).............................................     6.05
(a)(1)(B).............................................     6.02, 6.04
(a)(2)................................................     N.A.
(b)...................................................     6.06, 6.07

317(a)(1).............................................     6.08
(a)(2)................................................     6.09
(b)...................................................     2.03

318(a)................................................     N.A.
(b)...................................................     N.A.
(c)...................................................     12.01

                                       2

<PAGE>

                                    RECITALS

                                    ARTICLE 1
                  DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01. Definitions ...............................................     2
SECTION 1.02. Rules of Construction .....................................    12

                                   ARTICLE 2
                                   THE NOTES

SECTION 2.01. Form, Dating and Denominations; Legends ...................    13
SECTION 2.02. Execution and Authentication; Exchange Notes; Additional
     Notes ..............................................................    14
SECTION 2.03. Registrar, Paying Agent and Authenticating Agent; Paying
     Agent to Hold Money in Trust .......................................    15
SECTION 2.04. Replacement Notes .........................................    16
SECTION 2.05. Outstanding Notes .........................................    16
SECTION 2.06. Temporary Notes ...........................................    17
SECTION 2.07. Cancellation ..............................................    17
SECTION 2.08. CUSIP and CINS Numbers ....................................    17
SECTION 2.09. Registration, Transfer and Exchange .......................    18
SECTION 2.10. Restrictions on Transfer and Exchange .....................    21
SECTION 2.11. Temporary Offshore Global Notes ...........................    23

                                   ARTICLE 3
                                   REDEMPTION

SECTION 3.01. Optional Redemption .......................................    24
SECTION 3.02. Method and Effect of Redemption ...........................    24
SECTION 3.03. No Mandatory Redemption ...................................    25

                                   ARTICLE 4
                                   COVENANTS

SECTION 4.01. Payment of Notes .........................................     26
SECTION 4.02. Maintenance of Office or Agency ..........................     26
SECTION 4.03. Existence ................................................     27
SECTION 4.04. Payment of Taxes and Other Claims ........................     27
SECTION 4.05. Maintenance of Properties and Insurance ..................     27
SECTION 4.06. Limitation on Liens ......................................     28

                                       i

<PAGE>

SECTION 4.07. Limitation on Sale and Leaseback Transactions ..............   29
SECTION 4.08. Guaranties by Subsidiaries .................................   30
SECTION 4.09. Equal and Ratable Liens ....................................   30
SECTION 4.10. Financial Reports ..........................................   31
SECTION 4.11. Reports to Trustee .........................................   31

                                   ARTICLE 5
                MERGER, CONSOLIDATION AND DISPOSITION OF ASSETS

SECTION 5.01. Merger, Consolidation and Disposition of Assets by the
Company ....................................................                 32
SECTION 5.02. Consolidation or Sale of Assets by a Guarantor ............    33

                                   ARTICLE 6
                              DEFAULT AND REMEDIES

SECTION 6.01. Events of Default .........................................    34
SECTION 6.02. Acceleration ..............................................    35
SECTION 6.03. Other Remedies ............................................    36
SECTION 6.04. Waiver of Past Defaults ...................................    36
SECTION 6.05. Control by Majority .......................................    36
SECTION 6.06. Limitation on Suits .......................................    37
SECTION 6.07. Rights of Holders to Receive Payment ......................    37
SECTION 6.08. Collection Suit by Trustee ................................    37
SECTION 6.09. Trustee May File Proofs of Claim ..........................    38
SECTION 6.10. Priorities ................................................    38
SECTION 6.11. Restoration of Rights and Remedies ........................    38
SECTION 6.12. Undertaking for Costs .....................................    39
SECTION 6.13. Rights and Remedies Cumulative ............................    39
SECTION 6.14. Delay or Omission Not Waiver ..............................    39
SECTION 6.15. Waiver of Stay, Extension or Usury Laws ...................    39

                                   ARTICLE 7
                                  THE TRUSTEE

SECTION 7.01. General ...................................................    40
SECTION 7.02. Certain Rights of Trustee .................................    40
SECTION 7.03. Individual Rights of Trustee ..............................    41
SECTION 7.04. Trustee's Disclaimer ......................................    42
SECTION 7.05. Notice of Default .........................................    42
SECTION 7.06. Reports by Trustee to Holders .............................    42
SECTION 7.07. Compensation and Indemnity ................................    42
SECTION 7.08. Replacement of Trustee ....................................    43

                                       ii

<PAGE>

SECTION 7.09. Successor Trustee by Merger ........................       44
SECTION 7.10. Eligibility ........................................       44
SECTION 7.11. Money Held in Trust ................................       44

                                   ARTICLE 8
                           DEFEASANCE AND DISCHARGE

SECTION 8.01. Discharge of Company's Obligations .................       45
SECTION 8.02. Legal Defeasance ...................................       46
SECTION 8.03. Covenant Defeasance ................................       48
SECTION 8.04. Application of Trust Money .........................       48
SECTION 8.05. Repayment to Company ...............................       48
SECTION 8.06. Reinstatement ......................................       48

                                   ARTICLE 9
                      AMENDMENTS, SUPPLEMENTS AND WAIVERS

SECTION 9.01. Amendments Without Consent of Holders ..............       49
SECTION 9.02. Amendments With Consent of Holders .................       50
SECTION 9.03. Effect of Consent ..................................       51
SECTION 9.04. Trustee's Rights and Obligations ....................      51
SECTION 9.05. Conformity with Trust Indenture Act .................      52
SECTION 9.06. Payments for Consents ..............................       52

                                   ARTICLE 10
                                   GUARANTIES

SECTION 10.01. The Guaranties ....................................       52
SECTION 10.02. Guaranty Unconditional ............................       52
SECTION 10.03. Discharge; Reinstatement ..........................       53
SECTION 10.04. Waiver by the Guarantors ..........................       53
SECTION 10.05. Subrogation and Contribution ......................       53
SECTION 10.06. Stay of Acceleration ..............................       54
SECTION 10.07. Limitation on Amount of Guaranty ..................       54
SECTION 10.08. Execution and Delivery of Guaranty ................       54
SECTION 10.09. Release of Guaranty ...............................       54
SECTION 10.10. Liability .........................................       55

                                   ARTICLE 11
                             SECURITY ARRANGEMENTS

SECTION 11.01. Security ...........................................      55
SECTION 11.02. Notice of Payment, Discharge or Defeasance .........      56

                                      iii

<PAGE>

                                   ARTICLE 12
                                 MISCELLANEOUS

SECTION 12.01. Trust Indenture Act of 1939 ................................   57
SECTION 12.02. Noteholder Communications; Noteholder Actions ..............   57
SECTION 12.03. Notices ....................................................   58
SECTION 12.04. Certificate and Opinion as to Conditions Precedent .........   59
SECTION 12.05. Statements Required in Certificate or Opinion ..............   59
SECTION 12.06. Payment Date Other Than a Business Day .....................   59
SECTION 12.07. Governing Law ..............................................   60
SECTION 12.08. No Adverse Interpretation of Other Agreements ..............   60
SECTION 12.09. Successors .................................................   60
SECTION 12.10. Duplicate Originals ........................................   60
SECTION 12.11. Separability ...............................................   60
SECTION 12.12. Table of Contents and Headings .............................   60
SECTION 12.13. No Liability of Directors, Officers, Employees, Incorporators
    and Stockholders ......................................................   60

                                    EXHIBITS

EXHIBIT A Form of Note
EXHIBIT B Form of Supplemental Indenture
EXHIBIT C Restricted Legend
EXHIBIT D DTC Legend
EXHIBIT E Form of Regulation S Certificate
EXHIBIT F Form of Rule 144A Certificate
EXHIBIT G Certificate of Beneficial Ownership
EXHIBIT H Temporary Offshore Global Note Legend

                                       iv

<PAGE>

         INDENTURE, dated as of November 30, 2001, among Roadway Corporation, a
Delaware corporation (the "COMPANY"), the Guarantors (as defined), and SunTrust
Bank, as Trustee.

                                    RECITALS

         The Company has duly authorized the execution and delivery of the
Indenture to provide for the issuance of up to $225,000,000 aggregate principal
amount of the Company's 8 1/4 % Senior Notes due December 1, 2008 and, if and
when issued, any Additional Notes, together with any Exchange Notes issued
therefor as provided herein (the "NOTES"). All things necessary to make the
Indenture a valid agreement of the Company, in accordance with its terms, have
been done, and the Company has done all things necessary to make the Notes (in
the case of the Additional Notes, when duly authorized), when executed by the
Company and authenticated and delivered by the Trustee and duly issued by the
Company, the valid obligations of the Company as hereinafter provided.

         In addition, Roadway Express, Inc., a Delaware corporation, Roadway
Express International, Inc., a Delaware corporation, Roadway Reverse Logistics,
Inc., an Ohio corporation, Arnold Industries, Inc., a Pennsylvania corporation,
New Penn Motor Express, Inc., a Pennsylvania corporation and Arnold
Transportation Services, Inc., a Pennsylvania corporation, have duly authorized
the execution and delivery of the Indenture as Guarantors of the Notes. All
things necessary to make the Indenture a valid agreement of each Guarantor, in
accordance with its terms, have been done, and each Guarantor has done all
things necessary to make the Note Guaranties, when the Notes are executed by the
Company and authenticated and delivered by the Trustee and duly issued by the
Company, the valid obligations of such Guarantor as hereinafter provided.

         This Indenture is subject to, and will be governed by, the provisions
of the Trust Indenture Act that are required to be a part of and govern
indentures qualified under the Trust Indenture Act.

                            THIS INDENTURE WITNESSETH

         For and in consideration of the premises and the purchase of the Notes
by the Holders thereof, the parties hereto covenant and agree, for the equal and
proportionate benefit of all Holders, as follows:

<PAGE>

                                    ARTICLE 1
                  DEFINITIONS AND INCORPORATION BY REFERENCE

         SECTION 1.01. Definitions.

         "ADDITIONAL INTEREST" means additional interest owed to the Holders
pursuant to a Registration Rights Agreement.

         "ADDITIONAL NOTES" means any notes issued under the Indenture in
addition to the Original Notes, including any Exchange Notes issued in exchange
for such Additional Notes, having the same terms in all respects as the Original
Notes except that interest will accrue on the Additional Notes from their date
of issuance.

         "AFFILIATE" means, with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under direct or indirect
common control with, such Person. For purposes of this definition, "control"
(including, with correlative meanings, the terms "controlling," "controlled by"
and "under common control with") with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

         "AGENT" means any Registrar, Paying Agent or Authenticating Agent.

         "AGENT MEMBER" means a member of, or a participant in, the
Depositary.

         "ATTRIBUTABLE DEBT" means, in connection with any sale and leaseback
transaction, at any date as of which the amount thereof is to be determined, the
total net obligations of the lessee for rental payments during the remaining
term of the lease discounted from the respective due dates thereof to such
determination date at a rate per annum equivalent to the interest rate on the
Notes.

         "AUTHENTICATING AGENT" refers to a Person engaged to authenticate the
Notes in the stead of the Trustee.

         "BANKRUPTCY DEFAULT" has the meaning assigned to such term in Section
6.01.

         "BOARD OF DIRECTORS" means the board of directors or comparable
governing body of the Company, or any committee thereof duly authorized to act
on its behalf.
<PAGE>

         "BOARD RESOLUTION" means a resolution duly adopted by the Board of
Directors which is certified by the Secretary or an Assistant Secretary of the
Company and remains in full force and effect as of the date of its
certification.

         "BUSINESS DAY" means any day except a Saturday, Sunday or other day
on which commercial banks in New York City or in the city where the Corporate
Trust Office of the Trustee is located are authorized by law to close.

         "CAPITAL LEASE OBLIGATION" means, all obligations required to be
classified and accounted for as a capitalized lease under GAAP, and the amount
of Debt represented by such obligation will be the capitalized amount thereof
determined in accordance with GAAP.

         "CAPITAL STOCK" means with respect to any Person, any and all shares
of stock of a corporation, partnership interests or other equivalent interests
(however designated, whether voting or no-voting) in such Person's equity,
entitling the holder to receive a share of the profits and losses of, or
distributions of assets, after liabilities, of such Person.

         "CERTIFICATE OF BENEFICIAL OWNERSHIP" means a certificate
substantially in the form of Exhibit G.

         "CERTIFICATED NOTE" means a Note in registered individual form
without interest coupons.

         "CLEARSTREAM" means Clearstream Banking SA and its successors.

         "COLLATERAL" means all assets of the Company and its Subsidiaries
which are subject to Liens pursuant to the terms and provisions of the Security
Documents.

         "COLLATERAL AGENT" means Credit Suisse First Boston, as collateral
agent, or any other collateral agent under any or all of the Security Documents.

         "COMMISSION" means the Securities and Exchange Commission.

         "COMMON STOCK" means Capital Stock not entitled to any preference on
dividends or distributions, upon liquidation or otherwise.

         "COMPANY" means the party named as such in the first paragraph of the
Indenture or any successor obligor under the Indenture and the Notes pursuant to
Article 5.

                                        3

<PAGE>

         "COMPARABLE TREASURY ISSUE" mean the United States Treasury security
selected by the Independent Investment Banker as having a maturity comparable to
the remaining term of the notes to be redeemed that would be utilized, at the
time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of such notes.

         "COMPARABLE TREASURY PRICE" means with respect to any redemption date
for the notes (i) the average of four Reference Treasury Dealer Quotations for
such redemption date, after excluding the highest and lowest such Reference
Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer than four such
Reference Treasury Dealer Quotations, the average of all such quotations.

         "CONSOLIDATED NET TANGIBLE ASSETS" means, at any date of
determination, total stockholders' equity of the Company and its subsidiaries,
less the aggregate amount of any intangible assets of the Company and its
subsidiaries, determined in accordance with GAAP.

         "CORPORATE TRUST OFFICE" means the office of the Trustee at which the
corporate trust business of the Trustee is administered, which at the date of
the Indenture is located at SunTrust Center, Corporate Trust Department, Sixth
Floor, 424 Church Street, Nashville, TN 37219.

         "CREDIT AGREEMENT" means the credit agreement dated on or about the
Issue Date among the Company, the lenders party thereto and Credit Suisse First
Boston, as agent, together with any related documents (including any security
documents and guaranty agreements), as such agreement may be amended, modified,
supplemented, extended, renewed, refinanced or replaced or substituted from time
to time.

         "DEBT" means, with respect to any Person, without duplication,

         (1) all indebtedness of such Person for borrowed money;

         (2) all obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments;

         (3) all obligations of such Person to pay the deferred and unpaid
purchase price of property or services to the extent recorded as liabilities
under GAAP, excluding trade payables arising in the ordinary course of business;

         (4) all Capital Lease Obligations of such Person; and

                                        4

<PAGE>

         (5) all Debt of other Persons Guarantied by such Person (including by
securing such Debt by a Lien on any asset of such Person, whether or not such
Debt is assumed by such Person) to the extent so Guarantied.

         Debt shall not include indebtedness or amounts owed for compensation to
employees, or for goods or materials purchased or services used in the ordinary
course of business.

         "DEFAULT" means any event that is, or after notice or passage of time
or both would be, an Event of Default.

         "DEPOSITARY" means the depositary of each Global Note, which will
initially be DTC.

         "DTC" means The Depository Trust Company, a New York corporation, and
its successors.

         "DTC LEGEND" means the legend set forth in Exhibit D.

         "EUROCLEAR" means Euroclear Bank S.A./N.V., and its successors or
assigns, as operator of the Euroclear System.

         "EVENT OF DEFAULT" has the meaning assigned to such term in Section
6.01.

         "EXCHANGE ACT" means the Securities Exchange Act of 1934.

         "EXCHANGE NOTES" means the Notes of the Company issued pursuant to
the Indenture in exchange for, and in an aggregate principal amount equal to,
the Initial Notes or any Initial Additional Notes in compliance with the terms
of a Registration Rights Agreement and containing terms substantially identical
to the Initial Notes or any Initial Additional Notes (except that (i) such
Exchange Notes will be registered under the Securities Act and will not be
subject to transfer restrictions or bear the Restricted Legend, and (ii) the
provisions relating to Additional Interest will be eliminated).

         "EXCHANGE OFFER" means an offer by the Company to the Holders of the
Initial Notes or any Initial Additional Notes to exchange outstanding Notes for
Exchange Notes, as provided for in a Registration Rights Agreement.

         "EXCHANGE OFFER REGISTRATION STATEMENT" means the Exchange Offer
Registration Statement as defined in a Registration Rights Agreement.

                                        5

<PAGE>

         "GAAP" means generally accepted accounting principles in the United
States of America as in effect from time to time.

         "GLOBAL NOTE" means a Note in registered global form without interest
coupons.

         "GUARANTY" means any obligation, contingent or otherwise, of any
Person directly or indirectly guaranteeing any Debt or other obligation of any
other Person; provided that the term "Guaranty" does not include endorsements
for collection or deposit in the ordinary course of business. The term
"Guaranty" used as a verb has a corresponding meaning.

         "GUARANTOR" means each Subsidiary of the Company that Guaranties the
obligations of the Company under the Indenture pursuant to Section 4.08, or any
successor obligor under its Note Guaranty pursuant to "Limitation on Merger,
Consolidation and Disposition of Assets", in each case unless and until such
Guarantor is released from its Note Guaranty pursuant to the Indenture.

         "HOLDER" OR "NOTEHOLDER" means the registered holder of any Note.

         "INDENTURE" means this indenture, as amended or supplemented from
time to time.

         "INDENTURE OBLIGATIONS" means (a) all principal of and interest
(including, without limitation, any interest which accrues after the
commencement of any case, proceeding or other action relating to the bankruptcy,
insolvency or reorganization of the Company, whether or not allowed or allowable
as a claim in any such proceeding) on any Note issued pursuant to the Indenture,
(b) all other amounts payable by the Company or any Guarantor under the
Indenture and (c) any renewals or extensions of any of the foregoing.

         "INDEPENDENT INVESTMENT BANKER" means one of the Reference Treasury
Dealers appointed by the Company.

         "INITIAL ADDITIONAL NOTES" means Additional Notes issued in an
offering not registered under the Securities Act and any Notes issued in
replacement thereof, but not including any Exchange Notes issued in exchange
therefor.

         "INITIAL NOTES" means the Notes issued on the Issue Date and any
Notes issued in replacement thereof, but not including any Exchange Notes issued
in exchange therefor.

                                        6

<PAGE>

         "INITIAL PURCHASERS" means the initial purchasers party to a purchase
agreement with the Company relating to the sale of the Initial Notes or Initial
Additional Notes by the Company.

         "INTEREST", in respect of the Notes, unless the context otherwise
requires, refers to interest and Additional Interest, if any.

         "INTEREST PAYMENT DATE" means each June 1st and December 1st of each
year, commencing June 1, 2002.

         "ISSUE DATE" means the first date on which the Original Notes are
initially issued under the Indenture.

         "LIEN" means any mortgage, pledge, security interest, encumbrance,
lien or charge of any kind (including any conditional sale or other title
retention agreement or lease in the nature thereof, other than ordinary course
operating leases, and including in connection with any Capital Lease
Obligation).

         "MOODY'S" means Moody's Investors Service, Inc. and its successors.

         "NON-U.S. PERSON" means a Person that is not a U.S. person, as
defined in Regulation S.

         "NOTES" has the meaning assigned to such term in the Recitals.

         "NOTE GUARANTY" means the guaranty of the Notes by a Guarantor
pursuant to the Indenture.

         "OBLIGATIONS" means, with respect to any Debt, all obligations
(whether in existence on the Issue Date or arising afterwards, absolute or
contingent, direct or indirect) for or in respect of principal (when due, upon
acceleration, upon redemption, upon mandatory repayment or repurchase pursuant
to a mandatory offer to purchase, or otherwise), premium, interest, penalties,
fees, indemnification, reimbursement and other amounts payable and liabilities
with respect to such Debt, including all interest accrued or accruing after the
commencement of any bankruptcy, insolvency or reorganization or similar case or
proceeding at the contract rate (including, without limitation, any contract
rate applicable upon default) specified in the relevant documentation, whether
or not the claim for such interest is allowed as a claim in such case or
proceeding.

         "OFFICER" means the chairman of the Board of Directors, the president
or chief executive officer, any vice president, the chief financial officer, the
treasurer

                                        7

<PAGE>

or any assistant treasurer, or the secretary or any assistant secretary, of the
Company.

         "OFFICERS' CERTIFICATE" means a certificate signed in the name of the
Company (i) by the chairman of the Board of Directors, the president or chief
executive officer, treasurer or a vice president and (ii) by the chief financial
officer, or any assistant treasurer or the secretary or any assistant secretary.

         "OFFSHORE GLOBAL NOTE" means a Global Note representing Notes issued
and sold pursuant to Regulation S.

         "OPINION OF COUNSEL" means a written opinion signed by legal counsel,
who may be an employee of or counsel to the Company, satisfactory in its
reasonable discretion to the Trustee.

         "ORIGINAL NOTES" means the Initial Notes and any Exchange Notes
issued in exchange therefor.

         "PAYING AGENT" refers to a Person engaged to perform the obligations
of the Trustee in respect of payments made or funds held hereunder in respect of
the Notes.

         "PERMANENT OFFSHORE GLOBAL NOTE" means an Offshore Global Note that
does not bear the Temporary Offshore Global Note Legend.

         "PERSON" means an individual, a corporation, a partnership, a limited
liability company, an association, a trust or any other entity, including a
government or political subdivision or an agency or instrumentality thereof.

         "PRINCIPAL" of any Debt means the principal amount of such Debt (or
if such Debt was issued with original issue discount, the face amount of such
Debt less the remaining unamortized portion of the original issue discount of
such Debt), together with, unless the context otherwise indicates, any premium
then payable on such Debt.

         "PRINCIPAL PROPERTY" means any distribution facility, warehouse
facility or group of tractors and/or trailers owned or subsequently acquired by
the Company or any Subsidiary, which has a gross book value (including related
land, improvements, machinery and equipment without deduction of any
depreciation reserves) which on the date as of which the determination is being
made exceeds 0.5% of the Company's Consolidated Net Tangible Assets.

                                        8

<PAGE>

         "RATING AGENCY" means (i) S&P, (ii) Moody's or (iii) if neither S&P
or Moody's is rating the Notes, another recognized rating agency, selected by
the Company.

         "REFERENCE TREASURY DEALER" means each of Credit Suisse First Boston
Corporation and any three of the Initial Purchasers (each, a "Primary Treasury
Dealer") appointed by the Company; provided, however, that if any of the
foregoing shall cease to be a Primary Treasury Dealer, the Company shall
substitute in its place another Primary Treasury Dealer.

         "REFERENCE TREASURY DEALER QUOTATIONS" means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m. on the
third Business Day preceding such redemption date.

         "REGISTER" has the meaning assigned to such term in Section 2.09(a).

         "REGISTRAR" means a Person engaged to maintain the Register.

         "REGISTRATION RIGHTS AGREEMENT" means (i) the Registration Rights
Agreement dated on or about the Issue Date between the Company and the Initial
Purchasers party thereto with respect to the Initial Notes, and (ii) with
respect to any Additional Notes, any registration rights agreements between the
Company and the Initial Purchasers party thereto relating to rights given by the
Company to the purchasers of Additional Notes to register such Additional Notes
or exchange them for Notes registered under the Securities Act.

         "REGULAR RECORD DATE" for the interest payable on any Interest
Payment Date means the May 15th or November 15th (whether or not a Business Day)
next preceding such Interest Payment Date.

         "REGULATION S" means Regulation S under the Securities Act.

         "REGULATION S CERTIFICATE" means a certificate substantially in the
form of Exhibit E hereto.

         "REIMER AGREEMENTS" means the $10,000,000 credit facility to which
Reimer Express Lines Ltd. ("REIMER") is the borrower as evidenced by the
Agreement re: Operating Line, dated as of April 29, 1997, together with related
documents, among Reimer and The Bank of Nova Scotia, as amended to the date
hereof and as may be amended from time to time.

                                        9

<PAGE>

         "RESTRICTED LEGEND" means the legend set forth in Exhibit C.

         "RESTRICTED PERIOD" means the relevant 40-day distribution compliance
period as defined in Regulation S.

         "RULE 144A" means Rule 144A under the Securities Act.

         "RULE 144A CERTIFICATE" means (i) a certificate substantially in the
form of Exhibit F hereto or (ii) a written certification addressed to the
Company and the Trustee to the effect that the Person making such certification
(x) is acquiring such Note (or beneficial interest) for its own account or one
or more accounts with respect to which it exercises sole investment discretion
and that it and each such account is a qualified institutional buyer within the
meaning of Rule 144A, (y) is aware that the transfer to it or exchange, as
applicable, is being made in reliance upon the exemption from the provisions of
Section 5 of the Securities Act provided by Rule 144A, and (z) acknowledges that
it has received such information regarding the Company as it has requested
pursuant to Rule 144A(d)(4) or has determined not to request such information.

         "S&P" means Standard & Poor's Ratings Group, a division of McGraw
Hill, Inc. and its successors.

         "SALE AND LEASEBACK TRANSACTION" has the meaning assigned to such
term in Section 4.07.

         "SECURITIES ACT" means the Securities Act of 1933.

         "SECURED DEBT" means Debt that is secured by a Lien on any (i)
Principal Property, (ii) shares of stock owned by the Company or a Subsidiary in
a Subsidiary or (iii) Debt of a Subsidiary held by the Company or a Subsidiary
(in each case whether owned on the date of the Indenture or thereafter acquired
or created); provided , that neither Debt under the Credit Agreement, the Reimer
Agreements nor the notes shall be deemed Secured Debt.

         "SECURITY DOCUMENTS" means (i) the Pledge, Security and Intercreditor
Agreement dated as of the Issue Date among the Company, the Collateral Agent,
the Trustee and the administrative agent under the Credit Agreement, and (ii)
any other pledge agreements, security agreements, mortgages, deeds of trust or
other agreements or instruments between the Company and/or any of its
Subsidiaries and the Collateral Agent granting Liens on any asset of the Company
or any of its Subsidiaries to secure the Credit Agreement and Note Obligations,
in each case as amended, modified, restated or supplemented from time to time.

                                       10

<PAGE>

         "SENIOR DEBT" of the Company or of a Guarantor, as the case may be,
means all Obligations with respect to Debt of the Company or such Guarantor, as
relevant, whether outstanding on the Issue Date or thereafter created, except
for Debt which, in the instrument creating or evidencing the same, is expressly
stated to be not senior in right of payment to the Notes or, in respect of such
Guarantor, its Note Guaranty; provided that Senior Debt does not include (i) any
obligation to the Company or any Subsidiary, (ii) trade payables or (iii) any
Debt Incurred in violation of the Indenture.

         "SHELF REGISTRATION STATEMENT" means the Shelf Registration Statement
as defined in a Registration Rights Agreement.

         "STATED MATURITY" means with respect to any Debt, the date specified as
the fixed date on which the final installment of principal of such Debt is due
and payable.

         "SUBORDINATED DEBT" means any Debt of the Company or any Guarantor
which is subordinated in right of payment to the Notes or the Note Guaranty, as
applicable, pursuant to a written agreement to that effect.

         "SUBSIDIARY" means with respect to any Person, any corporation,
association or other business entity of which more than 50% of the outstanding
Voting Stock is owned, directly or indirectly, by, or, in the case of a
partnership, the sole general partner or the managing partner or the only
general partners of which are, such Person and one or more Subsidiaries of such
Person (or a combination thereof). Unless otherwise specified, "Subsidiary"
means a Subsidiary of the Company.

         "10% SUBSIDIARY GUARANTOR" has the meaning assigned to such term in
Section 5.02.

         "TEMPORARY OFFSHORE GLOBAL NOTE" means an Offshore Global Note that
bears the Temporary Offshore Global Note Legend.

         "TEMPORARY OFFSHORE GLOBAL NOTE LEGEND" means the legend set forth in
Exhibit H.

         "TREASURY RATE" means, with respect to any redemption date for the
notes, (i) the yield, under the heading which represents the average for the
immediately preceding week, appearing in the most recently published statistical
release designated "H.15(519)" or any successor publication which is published
weekly by the Board of Governors of the Federal Reserve System and which
established yields on actively traded United States Treasury securities adjusted
to

                                       11

<PAGE>

constant maturity under the caption "Treasury Constant Maturities," for the
maturity corresponding to the Comparable Treasury Issue (if no maturity is
within three months before or after the maturity date for the notes being
redeemed yields for the two published maturities most closely corresponding to
the Comparable Treasury Issue shall be determined and the Treasury Rate shall be
interpolated from such yields on a straight line basis, rounding to the nearest
month) or (ii) if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain such yields,
the rate per annum equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, expressed as a percentage of its principal amount,
calculated using a price for the Comparable Treasury Price for such redemption
date. The Treasury Rate shall be calculated by the Independent Investment Banker
on the third Business Day preceding the redemption date.

         "TRUSTEE" means the party named as such in the first paragraph of the
Indenture or any successor trustee under the Indenture pursuant to Article 7.

         "TRUST INDENTURE ACT" means the Trust Indenture Act of 1939.

         "U.S. GLOBAL NOTE" means a Global Note that bears the Restricted Legend
representing Notes issued and sold pursuant to Rule 144A.

         "U.S. GOVERNMENT OBLIGATIONS" means obligations issued or directly
and fully guaranteed or insured by the United States of America or by any agent
or instrumentality thereof, provided that the full faith and credit of the
United States of America is pledged in support thereof.

         "VOTING STOCK" means, with respect to any Person, Capital Stock of
any class or kind ordinarily having the power to vote for the election of
directors, managers or other voting members of the governing body of such
Person.

         SECTION 1.02. Rules of Construction. Unless the context otherwise
requires or except as otherwise expressly provided,

         (1) an accounting term not otherwise defined has the meaning assigned
to it in accordance with GAAP;

         (2) "herein," "hereof" and other words of similar import refer to the
Indenture as a whole and not to any particular Section, Article or other
subdivision;

         (3) all references to Sections or Articles or Exhibits refer to
Sections or Articles or Exhibits of or to the Indenture unless otherwise
indicated;

                                       12

<PAGE>

                  (4) references to agreements or instruments, or to statutes or
         regulations, are to such agreements or instruments, or statutes or
         regulations, as amended from time to time (or to successor statutes and
         regulations); and

                  (5) in the event that a transaction meets the criteria of more
         than one category of permitted transactions or listed exceptions the
         Company may classify such transaction as it, in its sole discretion,
         determines.

                                    ARTICLE 2
                                    THE NOTES

         SECTION 2.01. Form, Dating and Denominations; Legends. (a) The Notes
and the Trustee's certificate of authentication will be substantially in the
form attached as Exhibit A. The terms and provisions contained in the form of
the Notes annexed as Exhibit A constitute, and are hereby expressly made, a part
of the Indenture. The Notes may have notations, legends or endorsements required
by law, rules of or agreements with national securities exchanges to which the
Company is subject, or usage. Each Note will be dated the date of its
authentication. The Notes will be issuable in denominations of $1,000 in
principal amount and integral multiples thereof.

                  (b)(1) Except as otherwise provided in paragraph (c), Section
         2.10(b)(3), (b)(5) or (c) or Section 2.09(b)(4), each Initial Note or
         Initial Additional Note (other than a Permanent Offshore Global Note)
         will bear the Restricted Legend.

                  (2) Each Global Note, whether or not an Initial Note or
         Additional Note, will bear the DTC Legend.

                  (3) Each Temporary Offshore Global Note will bear the
         Temporary Offshore Global Note Legend.

                  (4) Initial Notes and Initial Additional Notes offered and
         sold in reliance on Regulation S will be issued as provided in Section
         2.11(a).

                  (5) Exchange Notes will be issued, subject to Section 2.09(b),
         in the form of one or more Global Notes.

                  (c) (1) If the Company determines (upon the advice of counsel
         and such other certifications and evidence as the Company may
         reasonably require) that a Note is eligible for resale pursuant to Rule
         144(k) under the

                                       13

<PAGE>

                  Securities Act (or a successor provision) and that the
                  Restricted Legend is no longer necessary or appropriate in
                  order to ensure that subsequent transfers of the Note (or a
                  beneficial interest therein) are effected in compliance with
                  the Securities Act, or

                           (2) after an Initial Note or any Initial Additional
                  Note is

                                    (x) sold pursuant to an effective
                           registration statement under the Securities Act,
                           pursuant to the Registration Rights Agreement or
                           otherwise, or (y) is validly tendered for exchange
                           into an Exchange Note pursuant to an Exchange Offer

the Company may instruct the Trustee to cancel the Note and issue to the Holder
thereof (or to its transferee) a new Note of like tenor and amount, registered
in the name of the Holder thereof (or its transferee), that does not bear the
Restricted Legend, and the Trustee will comply with such instruction.

         (d) By its acceptance of any Note bearing the Restricted Legend (or any
beneficial interest in such a Note), each Holder thereof and each owner of a
beneficial interest therein acknowledges the restrictions on transfer of such
Note (and any such beneficial interest) set forth in this Indenture and in the
Restricted Legend and agrees that it will transfer such Note (and any such
beneficial interest) only in accordance with the Indenture and such legend.

         SECTION 2.02. Execution and Authentication; Exchange Notes; Additional
Notes. (a) An Officer shall execute the Notes for the Company by facsimile or
manual signature in the name and on behalf of the Company. If an Officer whose
signature is on a Note no longer holds that office at the time the Note is
authenticated, the Note will still be valid.

         (b) A Note will not be valid until the Trustee manually signs the
certificate of authentication on the Note, with the signature conclusive
evidence that the Note has been authenticated under the Indenture.

         (c) At any time and from time to time after the execution and delivery
of the Indenture, the Company may deliver Notes executed by the Company to the
Trustee for authentication. The Trustee will authenticate and deliver

                  (i) Initial Notes for original issue in the aggregate
         principal amount not to exceed $225,000,000,

                  (ii) Initial Additional Notes from time to time for original
         issue in aggregate principal amounts specified by the Company, and

                                       14

<PAGE>

                  (iii) Exchange Notes from time to time for issue in exchange
         for a like principal amount of Initial Notes or Initial Additional
         Notes

after the following conditions have been met:

                  (1) Receipt by the Trustee of an Officers' Certificate
         specifying

                           (A) the amount of Notes to be authenticated and the
                  date on which the Notes are to be authenticated,

                           (B) whether the Notes are to be Initial Notes,
                  Additional Notes or Exchange Notes,

                           (C) in the case of Initial Additional Notes, that the
                  issuance of such Notes does not contravene any provision of
                  Article 4,

                           (D) whether the Notes are to be issued as one or more
                  Global Notes or Certificated Notes, and

                           (E) other information the Company may determine to
                  include or the Trustee may reasonably request.

                  (2) In the case of Initial Additional Notes, receipt by the
         Trustee of an Opinion of Counsel confirming that the Holders of the
         outstanding Notes will be subject to federal income tax in the same
         amounts, in the same manner and at the same times as would have been
         the case if such Additional Notes were not issued.

                  (3) In the case of Exchange Notes, effectiveness of an
         Exchange Offer Registration Statement and consummation of the exchange
         offer thereunder (and receipt by the Trustee of an Officers'
         Certificate to that effect). Initial Notes or Initial Additional Notes
         exchanged for Exchange Notes will be cancelled by the Trustee.

         SECTION 2.03. Registrar, Paying Agent and Authenticating Agent; Paying
Agent to Hold Money in Trust. (a) The Company may appoint one or more Registrars
and one or more Paying Agents, and the Trustee may appoint an Authenticating
Agent, in which case each reference in the Indenture to the Trustee in respect
of the obligations of the Trustee to be performed by that Agent will be deemed
to be references to the Agent. The Company may act as Registrar or (except for
purposes of Article 8) Paying Agent. In each case the Company and the Trustee
will enter into an appropriate agreement with the Agent implementing the
provisions of the Indenture relating to the obligations of the Trustee to be

                                       15

<PAGE>

performed by the Agent and the related rights. The Company initially appoints
the Trustee as Registrar and Paying Agent. The Company may change the Registrar
or Paying Agent without notice to any Holder.

         (b) The Company will require each Paying Agent other than the Trustee
to agree in writing that the Paying Agent will hold in trust for the benefit of
the Holders or the Trustee all money held by the Paying Agent for the payment of
principal of and interest on the Notes and will promptly notify the Trustee of
any default by the Company in making any such payment. The Company at any time
may require a Paying Agent to pay all money held by it to the Trustee and
account for any funds disbursed, and the Trustee may at any time during the
continuance of any payment default, upon written request to a Paying Agent,
require the Paying Agent to pay all money held by it to the Trustee and to
account for any funds disbursed. Upon doing so, the Paying Agent will have no
further liability for the money so paid over to the Trustee.

         SECTION 2.04. Replacement Notes. If a mutilated Note is surrendered to
the Trustee or the Company or if a Holder claims that its Note has been lost,
destroyed or wrongfully taken, the Company will issue and the Trustee will
authenticate a replacement Note of like tenor and principal amount and bearing a
number not contemporaneously outstanding. Every replacement Note is an
additional obligation of the Company and entitled to the benefits of the
Indenture. If required by the Trustee or the Company, an indemnity must be
furnished by the Holder that is sufficient in the judgment of both the Trustee
and the Company to protect the Company and the Trustee from any loss they may
suffer if a Note is replaced. The Company may charge the Holder for the expenses
of the Company and the Trustee in replacing a Note. In case the mutilated, lost,
destroyed or wrongfully taken Note has become or is about to become due and
payable, the Company in its discretion may pay the Note instead of issuing a
replacement Note.

         SECTION 2.05. Outstanding Notes. (a) Notes outstanding at any time are
all Notes that have been authenticated by the Trustee except for

                  (1) Notes cancelled by the Trustee or delivered to it for
         cancellation;

                  (2) any Note which has been replaced pursuant to Section 2.04
         unless and until the Trustee and the Company receive proof satisfactory
         to them that the replaced Note is held by a bona fide purchaser; and

                  (3) on or after the maturity date or any redemption date,
         those Notes payable or to be redeemed or purchased on that date for
         which the Trustee (or Paying Agent, other than the Company or an
         Affiliate of the Company) holds money sufficient to pay all amounts
         then due.

                                       16

<PAGE>

         (b) A Note does not cease to be outstanding because the Company or one
of its Affiliates holds the Note, provided that in determining whether the
Holders of the requisite principal amount of the outstanding Notes have given or
taken any request, demand, authorization, direction, notice, consent, waiver or
other action hereunder, Notes owned by the Company or any Affiliate of the
Company will be disregarded and deemed not to be outstanding (it being
understood that in determining whether the Trustee is protected in relying upon
any such request, demand, authorization, direction, notice, consent, waiver or
other action, only Notes which the Trustee knows to be so owned will be so
disregarded). Notes so owned which have been pledged in good faith may be
regarded as outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee's right so to act with respect to such Notes and that the
pledgee is not the Company or any Affiliate of the Company.

         SECTION 2.06. Temporary Notes. Until definitive Notes are ready for
delivery, the Company may prepare and the Trustee will authenticate temporary
Notes. Temporary Notes will be substantially in the form of definitive Notes but
may have insertions, substitutions, omissions and other variations determined to
be appropriate by the Officer executing the temporary Notes, as evidenced by the
execution of the temporary Notes. If temporary Notes are issued, the Company
will cause definitive Notes to be prepared without unreasonable delay. After the
preparation of definitive Notes, the temporary Notes will be exchangeable for
definitive Notes upon surrender of the temporary Notes at the office or agency
of the Company designated for the purpose pursuant to Section 4.02, without
charge to the Holder. Upon surrender for cancellation of any temporary Notes the
Company will execute and the Trustee will authenticate and deliver in exchange
therefor a like principal amount of definitive Notes of authorized
denominations. Until so exchanged, the temporary Notes will be entitled to the
same benefits under the Indenture as definitive Notes.

         SECTION 2.07. Cancellation. The Company at any time may deliver to
the Trustee for cancellation any Notes previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may
deliver to the Trustee for cancellation any Notes previously authenticated
hereunder which the Company has not issued and sold. Any Registrar or the Paying
Agent will forward to the Trustee any Notes surrendered to it for transfer,
exchange or payment. The Trustee will cancel all Notes surrendered for transfer,
exchange, payment or cancellation and dispose of them in accordance with its
normal procedures or the written instructions of the Company. The Trustee shall
deliver certification of all cancelled Notes to the Company. The Company may not
issue new Notes to replace Notes it has paid in full or delivered to the Trustee
for cancellation.

                                       17

<PAGE>

         SECTION 2.08. CUSIP and CINS Numbers. The Company in issuing the Notes
may use "CUSIP" and "CINS" numbers, and the Trustee will use CUSIP numbers or
CINS numbers in notices of redemption or exchange as a convenience to Holders.
Any such notice may state that no representation is made as to the correctness
of such numbers either as printed on the Notes or as contained in any notice of
redemption or exchange. The Company will promptly notify the Trustee of any
change in the CUSIP or CINS numbers.

         SECTION 2.09. Registration, Transfer and Exchange. (a) The Notes will
be issued in registered form only, without coupons, and the Company shall cause
the Trustee to maintain a register (the "REGISTER") of the Notes, for
registering the record ownership of the Notes by the Holders and transfers and
exchanges of the Notes.

                  (b) (1) Each Global Note will be registered in the name of the
         Depositary or its nominee. The Depositary shall be a clearing agency
         registered under the Exchange Act. The Company initially appoints DTC
         to act as Depositary with respect to the Notes in global form.
         Initially, the Global Notes shall be issued to the Depositary,
         registered in the name of Cede & Co., as the nominee of the Depositary,
         and deposited with the Trustee as custodian for Cede & Co. So long as
         DTC is serving as the Depositary thereof, each Global Note will bear
         the DTC Legend.

                  (2) Each Global Note will be delivered to the Trustee as
         custodian for the Depositary. Transfers of a Global Note (but not a
         beneficial interest therein) will be limited to transfers thereof in
         whole, but not in part, by the Depositary to a nominee of the
         Depositary or by a nominee of the Depositary to the Depositary or
         another nominee of the Depositary or by the Depositary or any such
         nominee to a successor Depositary or a nominee of such successor
         Depositary except as set forth in Section 2.09(b)(4).

                  (3) Agent Members will have no rights under the Indenture with
         respect to any Global Note held on their behalf by the Depositary, and
         the Depositary may be treated by the Company, the Trustee and any agent
         of the Company or the Trustee as the absolute owner and Holder of such
         Global Note for all purposes whatsoever. Notwithstanding the foregoing,
         the Depositary or its nominee may grant proxies and otherwise authorize
         any Person (including any Agent Member and any Person that holds a
         beneficial interest in a Global Note through an Agent Member) to take
         any action which a Holder is entitled to take under the Indenture or
         the Notes, and nothing herein will impair, as between the Depositary
         and its Agent Members, the operation of customary practices governing
         the exercise of the rights of a holder of any security.

                                       18

<PAGE>

                  (4) If (x) the Depositary notifies the Company that it is
         unwilling or unable to continue as Depositary for a Global Note and a
         successor depositary is not appointed by the Company within 90 days of
         the notice or (y) an Event of Default has occurred and is continuing
         and the Trustee has received a request from the Depositary or (z) the
         Company notifies the Trustee to effect such exchange, the Trustee will
         promptly exchange each beneficial interest in the Global Note for one
         or more Certificated Notes in authorized denominations having an equal
         aggregate principal amount and registered in the name of the owner of
         such beneficial interest, as identified to the Trustee by the
         Depositary, and thereupon the Global Note will be deemed canceled. If
         such Note does not bear the Restricted Legend, then the Certificated
         Notes issued in exchange therefor will not bear the Restricted Legend.
         If such Note bears the Restricted Legend, then the Certificated Notes
         issued in exchange therefor will bear the Restricted Legend, provided
         that any Holder of any such Certificated Note issued in exchange for a
         beneficial interest in a Temporary Offshore Global Note will have the
         right upon presentation to the Trustee of a duly completed Certificate
         of Beneficial Ownership after the Restricted Period to exchange such
         Certificated Note for a Certificated Note of like tenor and amount that
         does not bear the Restricted Legend, registered in the name of such
         Holder.

         (c) Each Certificated Note will be registered in the name of the holder
thereof or its nominee.

         (d) A Holder may transfer a Note (or a beneficial interest therein) to
another Person or exchange a Note (or a beneficial interest therein) for another
Note or Notes of any authorized denomination by presenting to the Trustee a
written request therefor stating the name of the proposed transferee or
requesting such an exchange, accompanied by any certification, opinion or other
document required by Section 2.10. The Trustee will promptly register any
transfer or exchange that meets the requirements of this Section by noting the
same in the register maintained by the Trustee for the purpose; provided that

                  (x) no transfer or exchange will be effective until it is
         registered in such register and

                  (y) the Trustee will not be required (i) to issue, register
         the transfer of or exchange any Note for a period of 15 days before a
         selection of Notes to be redeemed or purchased, (ii) to register the
         transfer of or exchange any Note so selected for redemption or purchase
         in whole or in part, except, in the case of a partial redemption or
         purchase, that portion of any Note not being redeemed or purchased, or
         (iii) if a redemption or a

                                       19

<PAGE>

         purchase is to occur after a Regular Record Date but on or before the
         corresponding Interest Payment Date, to register the transfer of or
         exchange any Note on or after the Regular Record Date and before the
         date of redemption or purchase. Prior to the registration of any
         transfer, the Company, the Trustee and their agents will treat the
         Person in whose name the Note is registered as the owner and Holder
         thereof for all purposes (whether or not the Note is overdue), and will
         not be affected by notice to the contrary.

         From time to time the Company will execute and the Trustee will
authenticate additional Notes as necessary in order to permit the registration
of a transfer or exchange in accordance with this Section.

         No service charge will be imposed in connection with any transfer or
exchange of any Note, but the Company may require payment of a sum sufficient to
cover any transfer tax or similar governmental charge payable in connection
therewith (other than a transfer tax or other similar governmental charge
payable upon exchange pursuant to subsection (b)(4)).

         (e) (1) Global Note to Global Note. If a beneficial interest in a
Global Note is transferred or exchanged for a beneficial interest in another
Global Note, the Trustee will (x) record a decrease in the principal amount of
the Global Note being transferred or exchanged equal to the principal amount of
such transfer or exchange and (y) record a like increase in the principal amount
of the other Global Note. Any beneficial interest in one Global Note that is
transferred to a Person who takes delivery in the form of an interest in another
Global Note, or exchanged for an interest in another Global Note, will, upon
transfer or exchange, cease to be an interest in such Global Note and become an
interest in the other Global Note and, accordingly, will thereafter be subject
to all transfer and exchange restrictions, if any, and other procedures
applicable to beneficial interests in such other Global Note for as long as it
remains such an interest.

                  (2) Global Note to Certificated Note. If a beneficial
         interest in a Global Note is transferred or exchanged for a
         Certificated Note, the Trustee will (x) record a decrease in the
         principal amount of such Global Note equal to the principal amount of
         such transfer or exchange and (y) deliver one or more new Certificated
         Notes in authorized denominations having an equal aggregate principal
         amount to the transferee (in the case of a transfer) or the owner of
         such beneficial interest (in the case of an exchange), registered in
         the name of such transferee or owner, as applicable.

                  (3) Certificated Note to Global Note. If a Certificated Note
         is transferred or exchanged for a beneficial interest in a Global Note,
         the

                                       20

<PAGE>

         Trustee will (x) cancel such Certificated Note, (y) record an increase
         in the principal amount of such Global Note equal to the principal
         amount of such transfer or exchange and (z) in the event that such
         transfer or exchange involves less than the entire principal amount of
         the canceled Certificated Note, deliver to the Holder thereof one or
         more new Certificated Notes in authorized denominations having an
         aggregate principal amount equal to the untransferred or unexchanged
         portion of the canceled Certificated Note, registered in the name of
         the Holder thereof.

                  (4) Certificated Note to Certificated Note. If a Certificated
         Note is transferred or exchanged for another Certificated Note, the
         Trustee will (x) cancel the Certificated Note being transferred or
         exchanged, (y) deliver one or more new Certificated Notes in authorized
         denominations having an aggregate principal amount equal to the
         principal amount of such transfer or exchange to the transferee (in the
         case of a transfer) or the Holder of the canceled Certificated Note (in
         the case of an exchange), registered in the name of such transferee or
         Holder, as applicable, and (z) if such transfer or exchange involves
         less than the entire principal amount of the canceled Certificated
         Note, deliver to the Holder thereof one or more Certificated Notes in
         authorized denominations having an aggregate principal amount equal to
         the untransferred or unexchanged portion of the canceled Certificated
         Note, registered in the name of the Holder thereof.

         SECTION 2.10. Restrictions on Transfer and Exchange. (a) The transfer
or exchange of any Note (or a beneficial interest therein) may only be made in
accordance with this Section and Section 2.09 and, in the case of a Global Note
(or a beneficial interest therein), the applicable rules and procedures of the
Depositary. The Trustee shall refuse to register any requested transfer or
exchange that does not comply with the preceding sentence.

         (b) Subject to paragraph (c), the transfer or exchange of any Note (or
a beneficial interest therein) of the type set forth in column A below for a
Note (or a beneficial interest therein) of the type set forth opposite in column
B below may only be made in compliance with the certification requirements (if
any) described in the clause of this paragraph set forth opposite in column C
below.

<TABLE>
<CAPTION>
                 A                           B                     C
<S>                      <C>                                    <C>
  U.S. Global Note         U.S. Global Note                         (1)
  U.S. Global Note         Offshore Global Note                     (2)
  U.S. Global Note         Certificated Note                        (3)
  Offshore Global Note     U.S. Global Note                         (4)
  Offshore Global Note     Offshore Global Note                     (1)
  Offshore Global Note     Certificated Note                        (5)
  Certificated Note        U.S. Global Note                         (4)
</TABLE>

                                       21

<PAGE>

                  A                             B                    C
   Certificated Note           Offshore Global Note                 (2)
   Certificated Note           Certificated Note                    (3)

                  (1) No certification is required.

                  (2) The Person requesting the transfer or exchange must
         deliver or cause to be delivered to the Trustee a duly completed
         Regulation S Certificate; provided that if the requested transfer or
         exchange is made by the Holder of a Certificated Note that does not
         bear the Restricted Legend, then no certification is required.

                  (3) The Person requesting the transfer or exchange must
         deliver or cause to be delivered to the Trustee (x) a duly completed
         Rule 144A Certificate, (y) a duly completed Regulation S Certificate,
         and/or an Opinion of Counsel and such other certifications and evidence
         as the Company may reasonably require in order to determine that the
         proposed transfer or exchange is being made in compliance with the
         Securities Act and any applicable state securities laws or blue sky
         laws; provided that if the requested transfer or exchange is made by
         the Holder of a Certificated Note that does not bear the Restricted
         Legend, then no certification is required. In the event that (i) the
         requested transfer or exchange takes place after the Restricted Period
         and a duly completed Regulation S Certificate is delivered to the
         Trustee or (ii) a Certificated Note that does not bear the Restricted
         Legend is surrendered for transfer or exchange, upon transfer or
         exchange the Trustee will deliver a Certificated Note that does not
         bear the Restricted Legend.

                  (4) The Person requesting the transfer or exchange must
         deliver or cause to be delivered to the Trustee a duly completed Rule
         144A Certificate.

                  (5) Notwithstanding anything to the contrary contained herein,
         no such exchange is permitted if the requested exchange involves a
         beneficial interest in a Temporary Offshore Global Note. If the
         requested transfer involves a beneficial interest in a Temporary
         Offshore Global Note, the Person requesting the transfer must deliver
         or cause to be delivered to the Trustee a duly completed Rule 144A
         Certificate and/or an Opinion of Counsel and such other certifications
         and evidence as the Company may reasonably require in order to
         determine that the proposed transfer is being made in compliance with
         the Securities Act and any applicable state securities laws or blue sky
         laws. If the requested transfer or exchange involves a beneficial
         interest in a Permanent Offshore Global Note, no certification is
         required and the Trustee will deliver a Certificated

                                       22

<PAGE>

         Note that does not bear the Restricted Legend.

         (c) No certification is required in connection with any transfer or
exchange of any Note (or a beneficial interest therein)

                  (1) after such Note is eligible for resale pursuant to Rule
         144(k) under the Securities Act (or a successor provision); provided
         that the Company has provided the Trustee with an Officer's Certificate
         to that effect, and the Company may require from any Person requesting
         a transfer or exchange in reliance upon this clause (1) an opinion of
         counsel and any other reasonable certifications and evidence in order
         to support such certificate; or

                  (2)(x) sold pursuant to an effective registration statement,
         pursuant to the Registration Rights Agreement or otherwise or (y) which
         is validly tendered for exchange into an Exchange Note pursuant to an
         Exchange Offer.

         Any Certificated Note delivered in reliance upon this paragraph will
not bear the Restricted Legend.

         (d) The Trustee will retain copies of all certificates, opinions and
other documents received in connection with the transfer or exchange of a Note
(or a beneficial interest therein), and the Company will have the right to
inspect and make copies thereof at any reasonable time upon written notice to
the Trustee.

         SECTION 2.11. Temporary Offshore Global Notes. (a) Each Note
originally sold by the Initial Purchasers in reliance upon Regulation S will be
evidenced by one or more Offshore Global Notes that bear the Temporary Offshore
Global Note Legend.

         (b) An owner of a beneficial interest in a Temporary Offshore Global
Note (or a Person acting on behalf of such an owner) may provide to the Trustee
(and the Trustee will accept) a duly completed Certificate of Beneficial
Ownership at any time after the Restricted Period (it being understood that the
Trustee will not accept any such certificate during the Restricted Period).
Promptly after acceptance of a Certificate of Beneficial Ownership with respect
to such a beneficial interest, the Trustee will cause such beneficial interest
to be exchanged for an equivalent beneficial interest in a Permanent Offshore
Global Note, and will (x) permanently reduce the principal amount of such
Temporary Offshore Global Note by the amount of such beneficial interest and (y)
increase the principal amount of such Permanent Offshore Global Note by the
amount of such beneficial interest.

                                       23

<PAGE>

         (c) Notwithstanding anything to the contrary contained herein,
beneficial interests in a Temporary Offshore Global Note may be held through the
Depositary only through Euroclear and Clearstream and their respective direct
and indirect participants.

         (d) Notwithstanding paragraph (b), if after the Restricted Period any
Initial Purchaser owns a beneficial interest in a Temporary Offshore Global
Note, such Initial Purchaser may, upon written request to the Trustee
accompanied by a certification as to its status as an Initial Purchaser,
exchange such beneficial interest for an equivalent beneficial interest in a
Permanent Offshore Global Note, and the Trustee will comply with such request
and will (x) permanently reduce the principal amount of such Temporary Offshore
Global Note by the amount of such beneficial interest and (y) increase the
principal amount of such Permanent Offshore Global Note by the amount of such
beneficial interest.

                                   ARTICLE 3
                                  REDEMPTION

         SECTION 3.01. Optional Redemption. At any time and from time to time,
the Company may redeem the Notes, in whole or in part, at a redemption price
equal to the greater of (a) 100% of the principal amount of such Notes, or (b)
the sum of the present values of the remaining scheduled payments of principal
and interest on such notes from the redemption date to the applicable maturity
date of the Notes being redeemed discounted, in either case, to the redemption
date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate plus 50 basis points, plus in either (a) or (b),
any interest accrued but not paid to the date of redemption.

         SECTION 3.02. Method and Effect of Redemption. (a) If the Company
elects to redeem Notes, it must notify the Trustee of the redemption date and
the principal amount of Notes to be redeemed by delivering an Officers'
Certificate at least 60 days before the redemption date (unless a shorter period
is satisfactory to the Trustee). Any such notice may be cancelled at any time
prior to notice of such redemption being mailed to any Holder and shall thereby
be void and of no effect. If fewer than all of the Notes are being redeemed, the
Officers' Certificate must also specify a record date not less than 15 days
after the date of the notice of redemption is given to the Trustee, and the
Trustee will select the Notes to be redeemed pro rata, by lot or by any other
method the Trustee in its sole discretion deems fair and appropriate, in
denominations of $1,000 principal amount and multiples thereof. The Trustee will
notify the Company promptly of the Notes or portions of Notes to be called for
redemption. Notice of redemption must be mailed by First-class mail by the
Company or at the Company's request, by the Trustee in the name and at the
expense of the Company, to Holders whose Notes are to be redeemed at least 30
days but not more than 60 days before the

                                       24

<PAGE>

         redemption date.

         (b) The notice of redemption will identify the Notes to be redeemed and
will include or state the following:

                  (1) the redemption date;

                  (2) the redemption price, including the portion thereof
         representing any accrued interest;

                  (3) the place or places where Notes are to be surrendered for
         redemption;

                  (4) Notes called for redemption must be so surrendered in
         order to collect the redemption price;

                  (5) on the redemption date the redemption price will become
         due and payable on Notes called for redemption, and interest on Notes
         called for redemption will cease to accrue on and after the redemption
         date;

                  (6) if any Note is redeemed in part, on and after the
         redemption date, upon surrender of such Note, new Notes equal in
         principal amount to the unredeemed portion will be issued; and

                  (7) if any Note contains a CUSIP or CINS number, no
         representation is being made as to the correctness of the CUSIP or CINS
         number either as printed on the Notes or as contained in the notice of
         redemption and that the Holder should rely only on the other
         identification numbers printed on the Notes.

         (c) Once notice of redemption is sent to the Holders, Notes called for
redemption become due and payable at the redemption price on the redemption
date, and upon surrender of the Notes called for redemption, the Company shall
redeem such Notes at the redemption price. Commencing on the redemption date,
Notes redeemed will cease to accrue interest. Upon surrender of any Note
redeemed in part, the Holder will receive a new Note equal in principal amount
to the unredeemed portion of the surrendered Note.

         SECTION 3.03. No Mandatory Redemption. The Company shall not be
required to make mandatory redemptions of the Notes. The Notes shall not have
the benefit of any sinking fund.

                                       25

<PAGE>

                                   ARTICLE 4
                                   COVENANTS

         SECTION 4.01. Payment of Notes. (a) The Company agrees to pay the
principal of and interest on the Notes on the dates and in the manner provided
in the Notes and the Indenture. Not later than 10:00 A.M. (New York City time)
on the due date of any principal of or interest on any Notes, or any redemption
or purchase of the Notes, the Company will deposit with the Trustee (or Paying
Agent) money in immediately available funds sufficient to pay such amounts,
provided that if the Company or any Affiliate of the Company is acting as Paying
Agent, it will, on or before each due date, segregate and hold in a separate
trust fund for the benefit of the Holders a sum of money sufficient to pay such
amounts until paid to such Holders or otherwise disposed of as provided in the
Indenture. In the case the Company acts as Paying Agent, the Company will
promptly notify the Trustee of its compliance with this paragraph.

         (b) An installment of principal or interest will be considered paid on
the date due if the Trustee (or Paying Agent, other than the Company or any
Affiliate of the Company) holds on that date money designated for and sufficient
to pay the installment. If the Company or any Affiliate of the Company acts as
Paying Agent, an installment of principal or interest will be considered paid on
the due date only if paid to the Holders.

         (c) The Company agrees to pay interest on overdue principal, and, to
the extent lawful, overdue installments of interest at the rate per annum
specified in the Notes.

         (d) Payments in respect of the Notes represented by the Global Notes
are to be made by wire transfer of immediately available funds to the accounts
specified by the Holders of the Global Notes. With respect to Certificated
Notes, the Company will make all payments by wire transfer of immediately
available funds to the accounts specified by the Holders thereof or, if no such
account is specified, by mailing a check to each Holder's registered address.

         SECTION 4.02. Maintenance of Office or Agency. The Company will
maintain an office or agency where Notes may be surrendered for registration of
transfer or exchange or for presentation for payment and where notices and
demands to or upon the Company in respect of the Notes and the Indenture may be
served. The Company hereby initially designates the Corporate Trust Office of
the Trustee as such office of the Company. The Company will give prompt written
notice to the Trustee of the location, and any change in the location, of such
office or agency. If at any time the Company fails to maintain any such required
office or agency or fails to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served to the

                                       26

<PAGE>

         Trustee.

         The Company may also from time to time designate one or more other
offices or agencies where the Notes may be surrendered or presented for any of
such purposes and may from time to time rescind such designations. The Company
will give prompt written notice to the Trustee of any such designation or
rescission and of any change in the location of any such other office or agency.

         SECTION 4.03. Existence. The Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its existence and
the existence of each of its Subsidiaries in accordance with their respective
organizational documents, and the material rights, licenses and franchises of
the Company and each Subsidiary, provided that the Company is not required to
preserve any such right, license or franchise, or the existence of any
Subsidiary, if the maintenance or preservation thereof is no longer desirable in
the conduct of the business of the Company and its Subsidiaries taken as a
whole; and provided further that this Section does not prohibit any transaction
otherwise permitted by Article 5.

         SECTION 4.04. Payment of Taxes and Other Claims. The Company will pay
or discharge, and cause each of its Subsidiaries to pay or discharge before the
same become delinquent (i) all material taxes, assessments and governmental
charges levied or imposed upon the Company or any Subsidiary or its income or
profits or property, and (ii) all material lawful claims for labor, materials
and supplies that, if unpaid, might by law become a Lien upon the property of
the Company or any Subsidiary, other than any such tax, assessment, charge or
claim the amount, applicability or validity of which is being contested in good
faith by appropriate proceedings and for which adequate reserves have been
established.

         SECTION 4.05. Maintenance of Properties and Insurance. (a) The Company
will cause all material properties used or useful in the conduct of its business
or the business of any of its Subsidiaries to be maintained and kept in good
condition, repair and working order (reasonable wear and tear excepted) as in
the judgment of the Company may be necessary so that the business of the Company
and its Subsidiaries may be properly and advantageously conducted at all times;
provided that nothing in this Section prevents the Company or any Subsidiary
from discontinuing the use, operation or maintenance of any of such properties
or disposing of any of them, if such discontinuance or disposal is, in the
judgment of the Company, desirable in the conduct of the business of the Company
and its Subsidiaries taken as a whole.

         (b) The Company will provide or cause to be provided, for itself and
its Subsidiaries, insurance (including appropriate self-insurance) against loss
or damage of the kinds customarily insured against by corporations similarly
situated

                                       27

<PAGE>

and owning like properties with reputable insurers, in such amounts, with such
deductibles and by such methods as are customary for corporations similarly
situated in the industry in which the Company and its Subsidiaries are then
conducting business.

         SECTION 4.06. Limitation on Liens. (a) The Company will not, nor will
it permit any Subsidiary to, incur, issue, assume, guaranty or create any
Secured Debt, without effectively providing concurrently with the incurrence,
issuance, assumption, guaranty or creation of the Secured Debt that the Notes
will be secured equally and ratably with, or prior to, such Secured Debt,
unless, after giving effect thereto, the sum of:

         (i)      the aggregate amount of all outstanding Secured Debt of the
                  Company and its Subsidiaries; plus

         (ii)     all Attributable Debt in respect of sale and leaseback
                  transactions relating to a Principal Property, other than
                  Attributable Debt that is excluded pursuant to clauses (i) to
                  (iv) described under "Limitations on Sale and Leaseback
                  Transactions" below,

would not exceed 15% of the Company's Consolidated Net Tangible Assets.

         (b) The restriction in Section 4.06(a) will not apply to, and there
will be excluded from Secured Debt in any computation under this restriction,
Debt secured by:

                  (i) Liens on property, shares of capital stock or debt of any
         Person existing at the time such Person becomes a Subsidiary; provided
         that the Liens were not granted in contemplation of that Person
         becoming a Subsidiary;

                  (ii) Liens on property, shares of capital stock or debt
         existing at the time of acquisition thereof by the Company or any
         Subsidiary; provided that the Liens were not granted in contemplation
         of that acquisition;

                  (iii) Liens on property, shares of capital stock or Debt to
         secure or provide for the payment of all or any part of the purchase
         price thereof or the cost of construction, alteration or improvement
         thereof; provided that

                           (1) the amount secured does not exceed the purchase
                  price or cost of construction or improvement; and

                                       28

<PAGE>

                           (2) the Lien is created at the time of, or within
                  twelve months after the acquisition or the completion,
                  alteration or improvement of such property, whichever is
                  later;

                  (iv) Liens in favor of the Company or any of its Subsidiaries;

                  (v) Liens incurred or assumed in connection with the issuance
         of revenue bonds the interest on which is exempt from Federal income
         taxation pursuant to Section 103(b) of the Internal Revenue Code;

                  (vi) Liens existing on the date of the Indenture (other than
         Liens of the type described in clause (iv));

                  (vii) Liens granted by Roadway Express, Inc. and Roadway
         Funding, Inc. pursuant to the Purchase and Contribution Agreement,
         dated as of November 21, 2001 and the Receivables Purchase Agreement,
         dated as of November 21, 2001; or

                  (viii) any extension, renewal, refunding or replacement of the
         foregoing (other than Liens of the type described in clause (iv));
         provided that the amount secured by the Lien is not increased and the
         Lien does not extend to any additional property or assets.

         SECTION 4.07. Limitation on Sale and Leaseback Transactions. (a) The
Company will not, nor will it permit any Subsidiary to, enter into any
arrangement with any person providing for the leasing by the Company or any
Subsidiary of any Principal Property of the Company or any Subsidiary, which
Principal Property has been or is to be sold or transferred by the Company or
such Subsidiary to such Person (a "SALE AND LEASEBACK TRANSACTION") unless:

                  (i) the Company or a Subsidiary would be entitled to create
         Debt secured by a Lien on the Principal Property to be leased, in a
         principal amount equal to the Attributable Debt with respect to such
         sale and leaseback transaction as described in Section 4.06 above,
         without equally and ratably securing the Notes pursuant to such
         Section;

                  (ii) (1) the property leased pursuant to such arrangement is
         sold for a price at least equal to such property's fair market value,
         as determined by an executive officer of the Company, and

                           (2) the Company or a Subsidiary, within 360 days
                  after the sale or transfer shall have been made by the Company
                  or a Subsidiary, shall apply an amount in cash equal to the
                  net proceeds of the sale or transfer of the Principal Property
                  leased pursuant to

                                       29

<PAGE>

                  such arrangement to:

                                    (A) the retirement of Debt of the Company or
                           any Subsidiary that is ranked equally with the Notes,
                           other than Debt owed to the Company or any
                           Subsidiary; provided, however , that no retirement
                           referred to in this clause (A) may be effected by
                           payment at maturity or pursuant to any mandatory
                           sinking fund payment provision of Debt; or

                                    (B) the purchase of additional Principal
                           Property used or to be used by the Company or any of
                           its Subsidiaries;

                  (iii) the sale and leaseback transaction is entered into
         between the Company and a Subsidiary or between Subsidiaries; or

                  (iv) the applicable lease is for a period, including renewals,
         of not more than three years.

         SECTION 4.08. Guaranties by Subsidiaries. (a) If and for so long as
any Subsidiary, directly or indirectly, Guaranties any Debt of the Company, such
Subsidiary shall provide a Note Guaranty, and, if the guaranteed Debt of the
Company is Subordinated Debt, the Guaranty of such guaranteed Debt must be
subordinated in right of payment to the Note Guaranty to at least the extent
that the guaranteed Debt is subordinated to the Notes.

         (b) The Company will cause any Subsidiary that Guaranties any Debt of
the Company to enter into and deliver a Note Guaranty (including any Subsidiary
that had previously been such a Guarantor and was subsequently released as a
Guarantor of the Notes). A Subsidiary required to provide a Note Guaranty shall
execute a supplemental indenture in the form of Exhibit B, and deliver an
Opinion of Counsel to the Trustee to the effect that the supplemental indenture
has been duly authorized, executed and delivered by the Subsidiary and
constitutes a valid and binding obligation of the Subsidiary, enforceable
against the Subsidiary in accordance with its terms (subject to customary
exceptions).

         SECTION 4.09. Equal and Ratable Liens. (a) To the extent the Company,
or any Subsidiary of the Company, grants a Lien to secure the obligations of the
Company, or the obligations of any Subsidiary of the Company, under the Credit
Agreement, the Company or such Subsidiary shall, contemporaneously with the
granting of such Lien, secure the Indenture Obligations equally and ratably with
the obligations of the Company, or the obligations of any Subsidiary of the
Company, under the Credit Agreement secured by such Lien.

                                       30

<PAGE>

         (b) From and after the date when any Lien granted in favor of the
holders of the Credit Agreement is released (and is not concurrently replaced
with any new Lien securing the Credit Agreement) the corresponding Lien securing
the Indenture Obligations will be released in conformity with the provisions of
Section 11.01(b).

         SECTION 4.10. Financial Reports. (a) Whether or not the Company is
subject to the reporting requirements of Section 13 or 15(d) of the Exchange
Act, the Company must provide the Trustee and Holders with

                  (i) all quarterly and annual financial information that would
         be required to be contained in a filing with the Commission on Forms
         10-Q and 10-K if the Company were required to file such forms,
         including a "Management's Discussion and Analysis of Financial
         Condition and Results of Operations" and, with respect to annual
         information only, a report thereon by the Company's certified
         independent accountants, and

                  (ii) all current reports that would be required to be filed
         with the Commission on Form 8-K if the Company were required to file
         such reports

within the time periods specified for this information in the Commission's rules
and regulations. Upon the effectiveness of an Exchange Offer Registration
Statement or Shelf Registration Statement, whether or not required by the
Commission, the Company will, if the Commission will accept the filing, file a
copy of all of the information and reports referred to in clauses (i) and (ii)
with the Commission for public availability within the time periods specified in
the Commission's rules and regulations. In addition, the Company will make the
information and reports available to securities analysts and prospective
investors upon request.

         (b) For so long as any of the notes remain outstanding and constitute
"restricted securities" under Rule 144, the Company will furnish to the holders
of the Notes and prospective investors, upon their request, the information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act.

         (c) The Company shall comply with all of the applicable provisions of
the Trust Indenture Act Section 314(a).

         SECTION 4.11. Reports to Trustee. (a) The Company will deliver to the
Trustee within 120 days after the end of each fiscal year a certificate from the
principal executive, financial or accounting officer of the Company stating that
the officer has conducted or supervised a review of the activities of the
Company and its Subsidiaries and their performance under the Indenture and that,
based

                                       31

<PAGE>

upon such review, the Company has fulfilled its obligations hereunder or, if
there has been a Default, specifying the Default and its nature and status.

         (b) The Company will deliver to the Trustee, as soon as possible and in
any event within 30 days after the Company becomes aware or should reasonably
become aware of the occurrence of a Default, an Officers' Certificate setting
forth the details of the Default, and the action which the Company proposes to
take with respect thereto.

         (c) The Company will deliver to the Trustee within 120 days after the
end of each fiscal year of the Company a written statement by the Company's
independent public accountants stating (i) that their audit examination has
included a review of the terms of this Indenture and the Notes as they relate to
accounting matters, and (ii) whether, in connection with their audit
examination, any Default has come to their attention and, if a Default has come
to their attention, specifying the nature and period of the existence thereof.

         (d) The Company will notify the Trustee when any Notes are listed on
any national securities exchange and of any delisting.

                                    ARTICLE 5
                MERGER, CONSOLIDATION AND DISPOSITION OF ASSETS

         SECTION 5.01. Merger, Consolidation and Disposition of Assets by the
Company. (a) The Company shall not merge with, consolidate with or into, or
sell, convey, transfer, lease or otherwise dispose of all or substantially all
of its property and assets to, any Person or permit any Person to merge with or
into the Company unless:

                  (i) either

                           (1) the Company shall be the continuing Person or

                           (2) the resulting, surviving or transferee Person is
                  organized and validly existing under the laws of the United
                  States of America or any jurisdiction thereof and expressly
                  assumes by supplemental indenture all of the obligations of
                  the Company under the Indenture and the Notes; and the Company
                  shall have delivered to the Trustee an Opinion of Counsel
                  stating that such consolidation, merger or transfer and such
                  supplemental indenture complies with this provision and that
                  all conditions precedent provided for in the Indenture
                  relating to such transaction have been

                                       32

<PAGE>

                           complied with and that such supplemental indenture
                           constitutes the legal valid and binding obligation of
                           the Company or such successor enforceable against
                           such entity in accordance with its terms, subject to
                           customary exceptions; and

                           (ii) immediately after giving effect to the
                  transaction, no Default shall have occurred and be continuing;
                  and

                           (iii) the Company delivers to the Trustee an
                  Officers' Certificate stating that the consolidation, merger
                  or transfer and the supplemental indenture (if any) comply
                  with the Indenture;

                  (b) Upon the consummation of any transaction effected in
         accordance with these provisions, if the Company is not the continuing
         Person, the resulting, surviving or transferee Person will succeed to,
         and be substituted for, and may exercise every right and power of, the
         Company under the Indenture with the same effect as if such successor
         Person had been named as the Company in the Indenture. Upon such
         substitution, unless the successor is one or more of the Company's
         Subsidiaries, the Company will be released from its obligations under
         the Indenture and the Notes.

         SECTION 5.02. Consolidation or Sale of Assets by a Guarantor. (a) The
Company shall not sell or dispose of, or cause any Subsidiary to sell or dispose
of to any Person other than the Company or any Guarantor, any Guarantor whose
assets exceed 10% of the Company's consolidated total assets (determined as of
the date of the Company's most recent interim or fiscal year-end balance sheet
filed with the Commission prior to the date of the sale or disposition) (each, a
"10% SUBSIDIARY GUARANTOR") unless at least 80% of the net after-tax proceeds
of such sale or disposition will consist of any combination of:

                           (i) cash (including assumption by the acquiror of any
                  indebtedness of the Company or its Subsidiaries) or readily
                  marketable securities;

                           (ii) property or assets (other than current assets)
                  of a nature or type similar or related to the nature or type
                  of the property or assets of the Company and its Subsidiaries
                  existing on the date of such sale or disposition; or

                           (iii) interests in companies or businesses having
                  property or assets or engaged in businesses similar or related
                  to the nature or type of the property or assets or businesses
                  of the Company and its Subsidiaries on the date of such sale
                  or disposition.

                                       33

<PAGE>

         (b) The limitation in Section 5.02(a) will not apply to the sale or
disposition of the property or assets of a Guarantor normally disposed of by
such Guarantor in the ordinary course of its business consistent with past
practice.

         (c) In the event that the net after-tax proceeds from the sale or
disposition of a 10% Subsidiary Guarantor consist of cash or readily marketable
securities, the Company will apply, within 18 months of such sale or
disposition, an amount equal to 100% of the fair market value, as determined in
good faith by the Board of Directors, of such net after-tax proceeds to:

                           (i) repay unsubordinated Debt of the Company or any
                  Guarantor, in each case owing to a Person other than an
                  Affiliate of the Company;

                           (ii) invest in property or assets (other than current
                  assets) of a nature or type similar or related to the nature
                  or type of the property or assets of the Company and its
                  Subsidiaries existing on the date of such investment, provided
                  that if such property or assets are, following such
                  investment, owned directly by a Subsidiary that becomes a
                  guarantor under any of the Company's other Debt obligations,
                  such Subsidiary will become a Guarantor; or

                           (iii) invest in a Person or business having property
                  or assets or engaged in a business similar or related to the
                  nature or type of the property or assets or businesses of the
                  Company and its Subsidiaries on the date of such investment,
                  provided that if such Person or business, following such
                  investment, becomes a guarantor under any of the Company's
                  other Debt obligations, such Person or the Person owning such
                  business will become a Guarantor.

                                    ARTICLE 6
                              DEFAULT AND REMEDIES

         SECTION 6.01. Events of Default. An "EVENT OF DEFAULT" occurs if

                           (1) the Company defaults in the payment of the
                  principal (or premium, if any, on) any Note when the same
                  becomes due and payable at maturity, upon acceleration or
                  redemption, or otherwise;

                           (2) the Company defaults in the payment of interest
                  (including any Additional Interest) on any Note when the same
                  becomes due and payable, and the default continues for a
                  period of 30 days;

                           (3) the Company fails to comply with Sections
                  4.08(b), 5.01 or

                                       34

<PAGE>

                  5.02;

                           (4) the Company defaults in the performance of or
                  breaches any other covenant or agreement of the Company in the
                  Indenture and the default or breach continues for a period of
                  60 consecutive days after written notice to the Company by the
                  Trustee or to the Company and the Trustee by the Holders of
                  25% or more in aggregate principal amount of the Notes;

                           (5) there occurs with respect to any indebtedness for
                  money borrowed by the Company or any of its Subsidiaries
                  having an aggregate principal amount outstanding of at least
                  $10,000,000 a failure to pay when due, subject to any
                  applicable grace period, the principal at (x) Stated Maturity
                  or (y) acceleration prior thereto (and such payment default
                  shall not have been waived or such acceleration shall not have
                  been rescinded or such indebtedness shall not have been
                  discharged within 30 days following such payment default or
                  acceleration);

                           (6) an involuntary case or other proceeding is
                  commenced against the Company or any Guarantor with respect to
                  it or its debts under any bankruptcy, insolvency or other
                  similar law now or hereafter in effect seeking the appointment
                  of a trustee, receiver, liquidator, custodian or other similar
                  official of it or any substantial part of its property, and
                  such involuntary case or other proceeding remains undismissed
                  and unstayed for a period of 60 days; or an order for relief
                  is entered against the Company or any Guarantor under the
                  federal bankruptcy laws as now or hereafter in effect;

                           (7) the Company or any Guarantor (i) commences a
                  voluntary case under any applicable bankruptcy, insolvency or
                  other similar law now or hereafter in effect, or consents to
                  the entry of an order for relief in an involuntary case under
                  any such law, (ii) consents to the appointment of or taking
                  possession by a receiver, liquidator, assignee, custodian,
                  trustee, sequestrator or similar official of the Company or
                  any Guarantor or for all or substantially all of the property
                  and assets of the Company or any Guarantor or (iii) effects
                  any general assignment for the benefit of creditors (an event
                  of default specified in clause (6) or (7) a "BANKRUPTCY
                  DEFAULT"); or

                           (8) any Note Guaranty ceases to be in full force and
                  effect, other than in accordance with the terms of the
                  Indenture, or a Guarantor denies or disaffirms its obligations
                  under its Guaranty.

         SECTION 6.02. Acceleration. (a) If an Event of Default, other than a

                                       35

<PAGE>

         bankruptcy default with respect to the Company, occurs and is
         continuing under the Indenture, the Trustee or the Holders of at least
         25% in aggregate principal amount of the Notes then outstanding, by
         written notice to the Company (and to the Trustee if the notice is
         given by the Holders), may, and the Trustee at the request of such
         Holders shall, declare the principal of and accrued interest on the
         Notes to be immediately due and payable. Upon a declaration of
         acceleration, such principal and interest will become immediately due
         and payable. If a bankruptcy default occurs with respect to the
         Company, the principal of and accrued interest on the Notes then
         outstanding will become immediately due and payable without any
         declaration or other act on the part of the Trustee or any Holder.

                  (b) The Holders of a majority in aggregate principal amount of
         the outstanding Notes by written notice to the Company and to the
         Trustee may waive all past defaults and rescind and annul a declaration
         of acceleration and its consequences if

                           (1) all existing Events of Default, other than the
                  nonpayment of the principal of, premium, if any, and interest
                  on the Notes that have become due solely by the declaration of
                  acceleration, have been cured or waived, and

                           (2) the rescission would not conflict with any
                  judgment or decree of a court of competent jurisdiction.

         SECTION 6.03. Other Remedies. If an Event of Default occurs and is
continuing, the Trustee may pursue, in its own name or as trustee of an express
trust, any available remedy by proceeding at law or in equity to collect the
payment of principal of and interest on the Notes or to enforce the performance
of any provision of the Notes or the Indenture. The Trustee may maintain a
proceeding even if it does not possess any of the Notes or does not produce any
of them in the proceeding.

         SECTION 6.04. Waiver of Past Defaults. Except as otherwise provided in
Sections 6.02, 6.07 and 9.02, the Holders of a majority in aggregate principal
amount of the outstanding Notes may, by notice to the Trustee, waive an existing
Default and its consequences. Upon such waiver, the Default will cease to exist,
and any Event of Default arising therefrom will be deemed to have been cured,
but no such waiver will extend to any subsequent or other Default or impair any
right consequent thereon.

         SECTION 6.05. Control by Majority. The Holders of a majority in
aggregate principal amount of the outstanding Notes may direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee
or

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<PAGE>

exercising any trust or power conferred on the Trustee. However, the Trustee may
refuse to follow any direction that conflicts with law or the Indenture, that
may involve the Trustee in personal liability, or that the Trustee determines in
good faith may be unduly prejudicial to the rights of Holders of Notes not
joining in the giving of such direction, and may take any other action it deems
proper that is not inconsistent with any such direction received from Holders of
Notes.

         SECTION 6.06. Limitation on Suits. A Holder may not institute any
proceeding, judicial or otherwise, with respect to the Indenture or the Notes,
or for the appointment of a receiver or trustee, or for any other remedy under
the Indenture or the Notes, unless:

                  (1) the Holder has previously given to the Trustee written
         notice of a continuing Event of Default;

                  (2) Holders of at least 25% in aggregate principal amount of
         then outstanding Notes have made written request to the Trustee to
         institute proceedings in respect of the Event of Default in its own
         name as Trustee under the Indenture;

                  (3) Holders have offered to the Trustee indemnity reasonably
         satisfactory to the Trustee against any costs, liabilities or expenses
         to be incurred in compliance with such request;

                  (4) the Trustee for 60 days after its receipt of such notice,
         request and offer of indemnity has failed to institute any such
         proceeding; and

                  (5) during such 60-day period, the Holders of a majority in
         aggregate principal amount of the outstanding Notes have not given the
         Trustee a direction that is inconsistent with such written request.

         SECTION 6.07. Rights of Holders to Receive Payment. Notwithstanding
anything to the contrary, the right of a Holder of a Note to receive payment of
principal of or interest on its Note on or after the Stated Maturities thereof,
or to bring suit for the enforcement of any such payment on or after such
respective dates, may not be impaired or affected without the consent of that
Holder.

         SECTION 6.08. Collection Suit by Trustee. If an Event of Default in
payment of principal or interest specified in clause (1) or (2) of Section 6.01
occurs and is continuing, the Trustee may recover judgment in its own name and
as trustee of an express trust for the whole amount of principal and accrued
interest remaining unpaid, together with interest on overdue principal and, to
the extent lawful, overdue installments of interest, in each case at the rate
specified in the Notes, and such further amount as is sufficient to cover the
costs and expenses

                                       37

<PAGE>

of collection, including the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel and any other amounts due
the Trustee hereunder.

         SECTION 6.09. Trustee May File Proofs of Claim. The Trustee may file
proofs of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee hereunder) and the
Holders allowed in any judicial proceedings relating to the Company or any
Guarantor or their respective creditors or property, and is entitled and
empowered to collect, receive and distribute any money, securities or other
property payable or deliverable upon any such claims. Any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee and, if the Trustee consents to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agent and counsel, and any other amounts due the Trustee hereunder.
Nothing in the Indenture will be deemed to empower the Trustee to authorize or
consent to, or accept or adopt on behalf of any Holder, any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or
the rights of any Holder thereof, or to authorize the Trustee to vote in respect
of the claim of any Holder in any such proceeding.

         SECTION 6.10. Priorities. If the Trustee collects any money pursuant
to this Article, it shall pay out the money in the following order:

                  First: to the Trustee for all amounts due hereunder;

                  Second: to Holders for amounts then due and unpaid for
         principal of and interest on the Notes, ratably, without preference or
         priority of any kind, according to the amounts due and payable on the
         Notes for principal and interest; and

                  Third: to the Company, the Guarantors or such other Person as
         a court of competent jurisdiction may direct.

         The Trustee, upon written notice to the Company, may fix a record date
and payment date for any payment to Holders pursuant to this Section.

         SECTION 6.11. Restoration of Rights and Remedies. If the Trustee or
any Holder has instituted a proceeding to enforce any right or remedy under the
Indenture and the proceeding has been discontinued or abandoned for any reason,

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<PAGE>

or has been determined adversely to the Trustee or to the Holder, then, subject
to any determination in the proceeding, the Company, any Guarantors, the Trustee
and the Holders will be restored severally and respectively to their former
positions hereunder and thereafter all rights and remedies of the Company, any
Guarantors, the Trustee and the Holders will continue as though no such
proceeding had been instituted.

         SECTION 6.12. Undertaking for Costs. In any suit for the enforcement
of any right or remedy under the Indenture or in any suit against the Trustee
for any action taken or omitted to be taken by it as Trustee, a court may
require any party litigant in such suit (other than the Trustee) to file an
undertaking to pay the costs of the suit, and the court may assess reasonable
costs, including reasonable attorneys' fees, against any party litigant (other
than the Trustee) in the suit, having due regard to the merits and good faith of
the claims or defenses made by the party litigant. This Section does not apply
to a suit by a Holder to enforce payment of principal of or interest on any Note
on the respective due dates, or a suit by Holders of more than 10% in principal
amount of the outstanding Notes.

         SECTION 6.13. Rights and Remedies Cumulative. Except as otherwise
provided with respect to the replacement of lost, destroyed or wrongfully taken
Notes in Section 2.04, no right or remedy conferred or reserved to the Trustee
or to the Holders under this Indenture is intended to be exclusive of any other
right or remedy, and all such rights and remedies are, to the extent permitted
by law, cumulative and in addition to every other right and remedy hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
exercise of any right or remedy hereunder, or otherwise, will not prevent the
concurrent assertion or exercise of any other right or remedy.

         SECTION 6.14. Delay or Omission Not Waiver. No delay or omission of
the Trustee or of any Holder to exercise any right or remedy accruing upon any
Event of Default will impair the exercise of any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article or by law to the Trustee or to the
Holders may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by the Holders, as the case may be.

         SECTION 6.15. Waiver of Stay, Extension or Usury Laws. The Company
and each Guarantor covenants, to the extent that it may lawfully do so, that it
will not at any time insist upon, or plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay or extension law or any usury law or
other law that would prohibit or forgive the Company or the Guarantor from
paying all or any portion of the principal of, or interest on the Notes as
contemplated herein, wherever enacted, now or at any time hereafter in force, or
that may affect the covenants or the performance of the Indenture. The Company
and each Guarantor

                                       39

<PAGE>

hereby expressly waives, to the extent that it may lawfully do so, all benefit
or advantage of any such law and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law had been
enacted.

                                   ARTICLE 7
                                  THE TRUSTEE

         SECTION 7.01. General. (a) The duties and responsibilities of the
Trustee are as provided by the Trust Indenture Act and as set forth herein.
Whether or not expressly so provided, every provision of the Indenture relating
to the conduct or affecting the liability of or affording protection to the
Trustee is subject to this Article.

         (b) Except during the continuance of an Event of Default, the Trustee
need perform only those duties that are specifically set forth in the Indenture
and no others, and no implied covenants or obligations will be read into the
Indenture that are adverse to the Trustee. In case an Event of Default has
occurred and is continuing, the Trustee shall exercise those rights and powers
vested in it by the Indenture, and use the same degree of care and skill in
their exercise, as a prudent man would exercise or use under the circumstances
in the conduct of his own affairs.

         (c) No provision of the Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act or its own willful misconduct.

         SECTION 7.02. Certain Rights of Trustee. Subject to Trust Indenture
Act Section 315(a) through (d):

                  (1) In the absence of bad faith on its part, the Trustee may
         rely, and will be protected in acting or refraining from acting, upon
         any resolution, certificate, statement, instrument, opinion, report,
         notice, request, direction, consent, order, bond, debenture, note,
         other evidence of indebtedness or other paper or document believed by
         it to be genuine and to have been signed or presented by the proper
         Person. The Trustee need not investigate any fact or matter stated in
         the document, but, in the case of any document which is specifically
         required to be furnished to the Trustee pursuant to any provision
         hereof, the Trustee shall examine the document to determine whether it
         conforms to the requirements of the Indenture (but need not confirm or
         investigate the accuracy of

                                       40

<PAGE>

         mathematical calculations or other facts stated therein). The Trustee,
         in its discretion, may make further inquiry or investigation into such
         facts or matters as it sees fit.

                  (2) Before the Trustee acts or refrains from acting, it may
         require an Officers' Certificate or an Opinion of Counsel conforming to
         Section 12.05 and the Trustee will not be liable for any action it
         takes or omits to take in good faith in reliance on the certificate or
         opinion.

                  (3) The Trustee may act through its attorneys and agents and
         will not be responsible for the misconduct or negligence of any agent
         appointed with due care.

                  (4) The Trustee will be under no obligation to exercise any of
         the rights or powers vested in it by the Indenture at the request or
         direction of any of the Holders, unless such Holders have offered to
         the Trustee reasonable security or indemnity against the costs,
         expenses and liabilities that might be incurred by it in compliance
         with such request or direction.

                  (5) The Trustee will not be liable for any action it takes or
         omits to take in good faith that it believes to be authorized or within
         its rights or powers or for any action it takes or omits to take in
         accordance with the direction of the Holders in accordance with Section
         6.05 relating to the time, method and place of conducting any
         proceeding for any remedy available to the Trustee, or exercising any
         trust or power conferred upon the Trustee, under the Indenture.

                  (6) The Trustee may consult with counsel, and the written
         advice of such counsel or any Opinion of Counsel will be full and
         complete authorization and protection in respect of any action taken,
         suffered or omitted by it hereunder in good faith and in reliance
         thereon.

                  (7) No provision of the Indenture will require the Trustee to
         expend or risk its own funds or otherwise incur any financial liability
         in the performance of its duties hereunder, or in the exercise of its
         rights or powers, unless it receives indemnity satisfactory to it
         against any loss, liability or expense.

         SECTION 7.03. Individual Rights of Trustee. The Trustee, in its
individual or any other capacity, may become the owner or pledgee of Notes and
may otherwise deal with the Company or its Affiliates with the same rights it
would have if it were not the Trustee. Any Agent may do the same with like
rights. However, the Trustee is subject to Trust Indenture Act Section 310(b)
and 311. For purposes of Trust Indenture Act Section 311(b)(4) and (6):

                                       41

<PAGE>

                  (a) "CASH TRANSACTION" means any transaction in which full
         payment for goods or securities sold is made within seven days after
         delivery of the goods or securities in currency or in checks or other
         orders drawn upon banks or bankers and payable upon demand; and

                  (b) "SELF-LIQUIDATING PAPER" means any draft, bill of
         exchange, acceptance or obligation which is made, drawn, negotiated or
         incurred for the purpose of financing the purchase, processing,
         manufacturing, shipment, storage or sale of goods, wares or merchandise
         and which is secured by documents evidencing title to, possession of,
         or a lien upon, the goods, wares or merchandise or the receivables or
         proceeds arising from the sale of the goods, wares or merchandise
         previously constituting the security, provided the security is received
         by the Trustee simultaneously with the creation of the creditor
         relationship arising from the making, drawing, negotiating or incurring
         of the draft, bill of exchange, acceptance or obligation.

         SECTION 7.04. Trustee's Disclaimer. The Trustee (i) makes no
representation as to the validity or adequacy of the Indenture or the Notes,
(ii) is not accountable for the Company's use or application of the proceeds
from the Notes and (iii) is not responsible for any statement in the Notes other
than its certificate of authentication.

         SECTION 7.05. Notice of Default. If any Default occurs and is
continuing and is known to the Trustee, the Trustee will send notice of the
uncured Default to each Holder within 90 days after it occurs, unless the
Default has been cured; provided that, except in the case of a default in the
payment of the principal of or interest on any Note, the Trustee may withhold
the notice if and so long as the board of directors, the executive committee or
a trust committee of directors of the Trustee in good faith determines that
withholding the notice is in the interest of the Holders. Notice to Holders
under this Section will be given in the manner and to the extent provided in
Trust Indenture Act Section 313(c).

         SECTION 7.06. Reports by Trustee to Holders. Within 60 days after
each September 29, beginning with September 29, 2002, the Trustee will mail to
each Holder, as provided in Trust Indenture Act Section 313(c), a brief report
dated as of such September 29, if required by Trust Indenture Act Section
313(a), and file such reports with each stock exchange upon which its Notes are
listed and with the Commission as required by Trust Indenture Act Section
313(d). The Trustee shall also transmit by mail to all Holders a brief report as
required by Trust Indenture Act Section 313(b).

         SECTION 7.07. Compensation and Indemnity. (a) The Company will pay
the Trustee compensation as agreed upon in writing for its services. The

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<PAGE>

compensation of the Trustee is not limited by any law on compensation of a
Trustee of an express trust. The Company will reimburse the Trustee upon request
for all reasonable out-of-pocket expenses, disbursements and advances incurred
or made by the Trustee while acting as Trustee under this Indenture, including
the reasonable compensation and expenses of the Trustee's agents and counsel.

         (b) The Company will indemnify the Trustee for, and hold it harmless
against, any loss or liability or expense incurred by it without negligence or
bad faith on its part arising out of or in connection with the acceptance or
administration of the Indenture and its duties under the Indenture and the
Notes, including the costs and expenses of defending itself against any claim or
liability and of complying with any process served upon it or any of its
officers in connection with the exercise or performance of any of its powers or
duties under the Indenture and the Notes.

         (c) To secure the Company's payment obligations in this Section, the
Trustee will have a lien prior to the Notes on all money or property held or
collected by the Trustee, in its capacity as Trustee, except money or property
held in trust to pay principal of, and interest on particular Notes.

         SECTION 7.08. Replacement of Trustee. (a) (1) The Trustee may resign
at any time by written notice to the Company.

                  (2) The Holders of a majority in aggregate principal amount of
         the outstanding Notes may remove the Trustee by written notice to the
         Company and the Trustee.

                  (3) If the Trustee is no longer eligible under Section 7.10 or
         in the circumstances described in Trust Indenture Act Section 310(b),
         any Holder that satisfies the requirements of Trust Indenture Act
         Section 310(b) may petition any court of competent jurisdiction for the
         removal of the Trustee and the appointment of a successor Trustee.

                  (4) The Company may remove the Trustee if: (i) the Trustee is
         no longer eligible under Section 7.10; (ii) the Trustee is adjudged a
         bankrupt or an insolvent; (iii) a receiver or other public officer
         takes charge of the Trustee or its property; or (iv) the Trustee
         becomes incapable of acting.

A resignation or removal of the Trustee and appointment of a successor Trustee
will become effective only upon the successor Trustee's acceptance of
appointment as provided in this Section.

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<PAGE>

         (b) If the Trustee has been removed by the Holders, Holders of a
majority in principal amount of the Notes may appoint a successor Trustee with
the consent of the Company. Otherwise, if the Trustee resigns or is removed, or
if a vacancy exists in the office of Trustee for any reason, the Company will
promptly appoint a successor Trustee. If the successor Trustee does not deliver
its written acceptance within 30 days after the retiring Trustee resigns or is
removed, the retiring Trustee, the Company or the Holders of a majority in
aggregate principal amount of the outstanding Notes may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

         (c) Upon delivery by the successor Trustee of a written acceptance of
its appointment to the retiring Trustee and to the Company, (i) the retiring
Trustee will transfer all property held by it as Trustee to the successor
Trustee, subject to the lien provided for in Section 7.07, (ii) the resignation
or removal of the retiring Trustee will become effective, and (iii) the
successor Trustee will have all the rights, powers and duties of the Trustee
under the Indenture. Upon request of any successor Trustee, the Company will
execute any and all instruments for fully and vesting in and confirming to the
successor Trustee all such rights, powers and trusts. The successor Trustee will
mail notice of any resignation and any removal of the Trustee and its
appointment to all Holders, and include in the notice its name and the address
of its Corporate Trust Office.

         (d) Notwithstanding replacement of the Trustee pursuant to this
Section, the Company's obligations under Section 7.07 will continue for the
benefit of the retiring Trustee.

         (e) The Trustee agrees to give the notices provided for in, and
otherwise comply with, Trust Indenture Act Section 310(b).

         SECTION 7.09. Successor Trustee by Merger. If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all of its
corporate trust business to, another corporation or national banking
association, the resulting, surviving or transferee corporation or national
banking association without any further act will, if such resulting, surviving
or transferee corporation or national banking association is otherwise eligible
under the Indenture, be the successor Trustee with the same effect as if the
successor Trustee had been named as the Trustee in the Indenture.

         SECTION 7.10. Eligibility. The Indenture must always have a Trustee
that satisfies the requirements of Trust Indenture Act Section 310(a) and has a
combined capital and surplus of at least $25,000,000 as set forth in its most
recent published annual report of condition.

         SECTION 7.11. Money Held in Trust. The Trustee will not be liable for

                                       44

<PAGE>

interest on any money received by it except as it may agree with the Company.
Money held in trust by the Trustee need not be segregated from other funds
except to the extent required by law and except for money held in trust under
Article 8.

                                    ARTICLE 8
                           DEFEASANCE AND DISCHARGE

         SECTION 8.01. Discharge of Company's Obligations. (a) Subject to
paragraph (b), the Company's obligations under the Notes and the Indenture, and
each Guarantor's obligations under its Note Guaranty, will terminate if:

                  (1) all Notes previously authenticated and delivered (other
         than (i) destroyed, lost or stolen Notes that have been replaced or
         (ii) Notes that are paid pursuant to Section 4.01 or (iii) Notes for
         whose payment money or U.S. Government Obligations have been held in
         trust and then repaid to the Company pursuant to Section 8.05) have
         been delivered to the Trustee for cancellation and the Company has paid
         all sums payable by it hereunder; or

                           (2) (A) the Notes mature within one year, or all of
                  them are to be called for redemption within one year under
                  arrangements satisfactory to the Trustee for giving the notice
                  of redemption,

                           (B) the Company irrevocably deposits in trust with
                  the Trustee, as trust funds solely for the benefit of the
                  Holders, money or U.S. Government Obligations or a combination
                  thereof sufficient, in the opinion of a nationally recognized
                  firm of independent public accountants expressed in a written
                  certificate delivered to the Trustee, without consideration of
                  any reinvestment, to pay principal of, premium, if any, and
                  each installment of interest on the Notes to maturity or
                  redemption, as the case may be, and to pay all other sums
                  payable by it hereunder,

                           (C) no Default or event that with the passage of time
                  or the giving of notice, or both, will constitute an Event of
                  Default has occurred and is continuing on the date of the
                  deposit,

                           (D) the deposit will not result in a breach or
                  violation of, or constitute a default under, the Indenture or
                  any other agreement or instrument to which the Company is a
                  party or by which it is bound,

                                       45
<PAGE>

                           (E) the Company delivers to the Trustee an Officers'
                  Certificate and an Opinion of Counsel, in each case stating
                  that all conditions precedent provided for herein relating to
                  the satisfaction and discharge of the Indenture have been
                  complied with,

                           (F) the Company has received from, or there has been
                  published by, the Internal Revenue Service a ruling or there
                  has been a change in law, which in the Opinion of Counsel
                  provides that holders of the Notes will not recognize gain or
                  loss for Federal income tax purposes as a result of such
                  deposit, defeasance and discharge and will be subject to
                  Federal income tax on the same amount, in the same manner and
                  at the same times as would have been the case if such deposit,
                  defeasance and discharge had not occurred, and

                           (G) the Company has delivered to the Trustee an
                  Opinion of Counsel to the effect that such deposit shall not
                  cause the Trustee or the trust so created to be subject to the
                  Investment Company Act of 1940.

         (b) After satisfying the conditions in clause (1), only the Company's
obligations under Section 7.07 will survive. After satisfying the conditions in
clause (2), only the Company's obligations in Article 2 and Sections 4.01, 4.02,
7.07, 7.08, 8.05 and 8.06 will survive. In either case, the Trustee upon request
will acknowledge in writing the discharge of the Company's obligations under the
Notes and the Indenture other than the surviving obligations.

         SECTION 8.02. Legal Defeasance. After the 123rd day following the
deposit referred to in clause (1), the Company will be deemed to have paid and
will be discharged from its obligations in respect of the Notes and the
Indenture, other than its obligations in Article 2 and Sections 4.01, 4.02,
7.07, 7.08, 8.05 and 8.06, and each Guarantor's obligations under its Note
Guaranty will terminate, provided the following conditions have been satisfied:

                  (1) The Company has irrevocably deposited in trust with the
         Trustee, as trust funds solely for the benefit of the Holders, money or
         U.S. Government Obligations or a combination thereof sufficient, in the
         opinion of a nationally recognized firm of independent public
         accountants expressed in a written certificate thereof delivered to the
         Trustee, without consideration of any reinvestment, to pay principal
         of, premium, if any, and each installment of interest on the Notes to
         maturity or redemption, as the case may be, provided that any
         redemption before maturity has been irrevocably provided for under
         arrangements satisfactory to the Trustee.

                                       46

<PAGE>

                  (2) No Default or event that with the passing of time or the
         giving of notice, or both, will constitute an Event of Default, has
         occurred and is continuing on the date of the deposit or occurs at any
         time during the 123-day period following the deposit.

                  (3) The deposit will not result in a breach or violation of,
         or constitute a default under, the Indenture or any other agreement or
         instrument to which the Company is a party or by which it is bound.

                  (4) The Company has delivered to the Trustee

                           (A) either (x) a ruling received from or published by
                  the Internal Revenue Service to the effect that the Holders
                  will not recognize gain or loss for federal income tax
                  purposes as a result of the deposit, defeasance and discharge
                  and will be subject to federal income tax on the same amount
                  and in the same manner and at the same times as would
                  otherwise have been the case or (y) an Opinion of Counsel,
                  based on a change in law after the date of the Indenture, to
                  the same effect as the ruling described in clause (x), and

                           (B) an Opinion of Counsel to the effect that (i) the
                  creation of the defeasance trust does not violate or cause the
                  Trustee or the trust so created to be subject to the
                  Investment Company Act of 1940, (ii) the Holders have a valid
                  first priority Note interest in the trust funds (subject to
                  customary exceptions), and (iii) after the passage of 123 days
                  following the deposit, the trust funds will not be subject to
                  the effect of Section 547 of the United States Bankruptcy Code
                  or Section 15 of the New York Debtor and Creditor Law.

                  (5) If the Notes are listed on a national securities exchange,
         the Company has delivered to the Trustee an Opinion of Counsel to the
         effect that the deposit and defeasance will not cause the Notes to be
         delisted.

                  (6) The Company has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel, in each case stating that all
         conditions precedent provided for herein relating to the defeasance
         have been complied with.

         Prior to the end of the 123-day period, none of the Company's
obligations under the Indenture will be discharged. Thereafter, the Trustee upon
request will acknowledge in writing the discharge of the Company's obligations
under the Notes and the Indenture except for the surviving obligations specified
above.

                                       47

<PAGE>

         SECTION 8.03. Covenant Defeasance. After the 123rd day following the
deposit referred to in clause (1), the Company's obligations set forth in
Sections 4.05 through 4.09, 4.11, Article 5 and each Guarantor's obligations
under its Note Guaranty, will terminate, and clauses (3), (4), (5), (6) and (7)
of Section 6.01 will no longer constitute Events of Default, provided the
following conditions have been satisfied:

                  (1) The Company has complied with clauses (1), (2), (3), 4(B),
         (5) and (6) of Section 8.02; and

                  (2) the Company has delivered to the Trustee an Opinion of
         Counsel to the effect that the Holders will not recognize gain or loss
         for federal income tax purposes as a result of the deposit and
         defeasance and will be subject to federal income tax on the same amount
         and in the same manner and at the same times as would otherwise have
         been the case.

         Except as specifically stated above, none of the Company's obligations
under the Indenture will be discharged.

         SECTION 8.04. Application of Trust Money. Subject to Section 8.05,
the Trustee will hold in trust the money or U.S. Government Obligations
deposited with it pursuant to Section 8.01, 8.02 or 8.03, and apply the
deposited money and the proceeds from deposited U.S. Government Obligations to
the payment of principal of and interest on the Notes in accordance with the
Notes and the Indenture. Such money and U.S. Government Obligations need not be
segregated from other funds except to the extent required by law.

         SECTION 8.05. Repayment to Company. Subject to Sections 7.07, 8.01,
8.02 and 8.03, the Trustee will promptly pay to the Company upon request any
excess money or U.S. Government Obligations held by the Trustee at any time and
thereupon be relieved from all liability with respect to such money. The Trustee
will pay to the Company upon request any money or U.S. Government Obligations
held for payment with respect to the Notes that remains unclaimed for two years,
provided that before making such payment the Trustee may at the expense of the
Company publish once in a newspaper of general circulation in New York City, or
send to each Holder entitled to such money, notice that the money remains
unclaimed and that after a date specified in the notice (at least 30 days after
the date of the publication or notice) any remaining unclaimed balance of money
will be repaid to the Company. After payment to the Company, Holders entitled to
such money must look solely to the Company for payment, unless applicable law
designates another Person, and all liability of the Trustee with respect to such
money will cease.

         SECTION 8.06. Reinstatement. If and for so long as the Trustee is
unable

                                       48

<PAGE>

to apply any money or U.S. Government Obligations held in trust pursuant to
Section 8.01, 8.02 or 8.03 by reason of any legal proceeding or by reason of any
order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, the Company's obligations under the
Indenture and the Notes will be reinstated as though no such deposit in trust
had been made. If the Company makes any payment of principal of or interest on
any Notes because of the reinstatement of its obligations, it will be subrogated
to the rights of the Holders of such Notes to receive such payment from the
money or U.S. Government Obligations held in trust.

                                   ARTICLE 9
                      AMENDMENTS, SUPPLEMENTS AND WAIVERS

         SECTION 9.01. Amendments Without Consent of Holders. (a) The Company,
the Guarantors and the Trustee may amend or modify the Indenture or the Notes
without notice to or the consent of any Noteholder

                  (1) to cure any ambiguity, defect or inconsistency in the
         Indenture or the Notes;

                  (2) to comply with Article 5;

                  (3) to comply with any requirements of the Commission in
         connection with the qualification of the Indenture under the Trust
         Indenture Act;

                  (4) to evidence and provide for the acceptance of appointment
         hereunder by a successor Trustee;

                  (5) to provide for uncertificated Notes in addition to or in
         place of certificated Notes, provided that the uncertified Notes are
         issued in registered form for purposes of Section 163(f) of the
         Internal Revenue Code, or in a manner such that the uncertificated
         Notes are described in Section 163(f)(2)(B) of the Internal Revenue
         Code;

                  (6) to provide for any Guaranty of the Notes, to secure the
         Notes or to confirm and evidence the release, termination or discharge
         of any Guaranty of or Lien securing the Notes when such release,
         termination or discharge is permitted by the Indenture;

                  (7) to provide for or confirm the issuance of Additional
         Notes;

                                       49

<PAGE>

                  (8) to make any other change that does not adversely affect
         the rights of any Holder; or

                  (9) to add covenants to Article 4 for the benefit of the
         Holders or surrender any right or power conferred upon the Company or
         the Guarantors.

         SECTION 9.02. Amendments With Consent of Holders. (a) Except as
otherwise provided in Sections 6.02, 6.04 and 6.07 or paragraph (b), the
Company, the Guarantors and the Trustee may amend or modify the Indenture and
the Notes with the written consent of the Holders of a majority in aggregate
principal amount of the outstanding Notes, and the Holders of a majority in
aggregate principal amount of the outstanding Notes by written notice to the
Trustee may waive future compliance by the Company with any provision of the
Indenture or the Notes.

         (b) Notwithstanding the provisions of paragraph (a), without the
consent of each Holder affected, an amendment or modification may not

                  (1) change the stated maturity of the principal of, or any
         installment of interest on, any Note,

                  (2) reduce the principal amount of, or the premium if any, or
         interest on, any Note,

                  (3) reduce the amount payable upon the redemption of any Note
         or, in respect of an optional redemption, the times at which any Note
         may be redeemed or, once notice of redemption has been given, the time
         at which it must thereupon be redeemed,

                  (4) change the place or currency of payment of principal of,
         or premium, if any, or interest on, any Note,

                  (5) impair the right of any Holder to institute suit for the
         enforcement of any payment on or with respect to any Note,

                  (6) make any change in the percentage of the aggregate
         principal amount of the Notes required for amendments or modifications
         of the Indenture or waivers of past defaults of covenants,

                  (7) amend the provisions of the Indenture or any Note Guaranty
         relating to the Guarantors in a manner adverse to the Holders of the
         Notes, other than to effect the release of a Guarantor as set forth in
         Section 10.03 or

                                       50

<PAGE>

                  (8) make any change in any Note Guaranty that would adversely
         affect the Noteholders.

         (c) It is not necessary for Noteholders to approve the particular form
of any proposed amendment, modification or waiver, but is sufficient if their
consent approves the substance thereof.

         (d) An amendment, supplement or waiver under this Section will become
effective on receipt by the Trustee of written consents from the Holders of the
requisite percentage in principal amount of the outstanding Notes. After an
amendment, modification or waiver under this Section becomes effective, the
Company will send to the Holders affected thereby a notice briefly describing
the amendment, modification or waiver. The Company will send supplemental
indentures to Holders upon request. Any failure of the Company to send such
notice, or any defect therein, will not, however, in any way impair or affect
the validity of any such amendment, modification, supplemental indenture or
waiver.

         SECTION 9.03. Effect of Consent. (a) After an amendment, modification
or waiver becomes effective, it will bind every Holder unless it is of the type
requiring the consent of each Holder affected. If the amendment, modification or
waiver is of the type requiring the consent of each Holder affected, the
amendment, modification or waiver will bind each Holder that has consented to it
and every subsequent Holder of a Note that evidences the same debt as the Note
of the consenting Holder.

         (b) If an amendment, modification or waiver changes the terms of a
Note, the Trustee may require the Holder to deliver it to the Trustee so that
the Trustee may place an appropriate notation of the changed terms on the Note
and return it to the Holder, or exchange it for a new Note that reflects the
changed terms. The Trustee may also place an appropriate notation on any Note
thereafter authenticated. However, the effectiveness of the amendment,
modification or waiver is not affected by any failure to annotate or exchange
Notes in this fashion.

         SECTION 9.04. Trustee's Rights and Obligations. The Trustee is
entitled to receive, and will be fully protected in relying upon, an Opinion of
Counsel stating that the execution of any amendment, modification or waiver
authorized pursuant to this Article is authorized or permitted by the Indenture.
If the Trustee has received such an Opinion of Counsel, it shall sign the
amendment, modification or waiver so long as the same does not adversely affect
the rights of the Trustee. The Trustee may, but is not obligated to, execute any
amendment, modification or waiver that affects the Trustee's own rights, duties
or immunities under the Indenture.

                                       51

<PAGE>

         SECTION 9.05. Conformity with Trust Indenture Act. Every amendment,
modification or supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act.

         SECTION 9.06. Payments for Consents. Neither the Company nor any of
its Subsidiaries or Affiliates may, directly or indirectly, pay or cause to be
paid any consideration, whether by way of interest, fee or otherwise, to any
Holder for or as an inducement to any consent, waiver or amendment of any of the
terms or provisions of the Indenture or the Notes unless such consideration is
offered to be paid or agreed to be paid to all Holders of the Notes that
consent, waive or agree to amend such term or provision within the time period
set forth in the solicitation documents relating to the consent, waiver or
amendment.

                                   ARTICLE 10
                                   GUARANTIES

         SECTION 10.01. The Guaranties. Subject to the provisions of Section
4.08 and this Article, for value received, each Guarantor hereby irrevocably and
unconditionally guaranties, jointly and severally, the full and punctual payment
(whether at Stated Maturity, upon redemption, or acceleration, or otherwise) of
the principal of, premium, if any, and interest on, and all other amounts
payable under, each Note, and the full and punctual payment of all other amounts
payable by the Company under the Indenture. Upon failure by the Company to pay
punctually any such amount, each Guarantor shall forthwith on demand pay the
amount not so paid at the place and in the manner specified in the Indenture.

         Each Guaranty hereunder is intended to be a general, unsecured, senior
obligation of each Guarantor and will rank pari passu in right of payment with
all Debt and other indebtedness of each such Guarantor that is not, by its
terms, expressly subordinated in right of payment to the Guaranty of such
Guarantor.

         SECTION 10.02. Guaranty Unconditional. The obligations of each
Guarantor hereunder are unconditional and absolute and, without limiting the
generality of the foregoing, will not be released, discharged or otherwise
affected by

                  (1) any extension, renewal, settlement, compromise, waiver or
         release in respect of any obligation of the Company under the Indenture
         or any Note, by operation of law or otherwise;

                  (2) any modification or amendment of or supplement to the
         Indenture or any Note;

                                       52

<PAGE>

                  (3) any change in the corporate existence, structure or
         ownership of the Company, or any insolvency, bankruptcy, reorganization
         or other similar proceeding affecting the Company or its assets or any
         resulting release or discharge of any obligation of the Company
         contained in the Indenture or any Note;

                  (4) the existence of any claim, set-off or other rights which
         the Guarantor may have at any time against the Company, the Trustee or
         any other Person, whether in connection with the Indenture or any
         unrelated transactions, provided that nothing herein prevents the
         assertion of any such claim by separate suit or compulsory
         counterclaim;

                  (5) any invalidity or unenforceability relating to or against
         the Company for any reason of the Indenture or any Note, or any
         provision of applicable law or regulation purporting to prohibit the
         payment by the Company of the principal of or interest on any Note or
         any other amount payable by the Company under the Indenture; or

                  (6) any other act or omission to act or delay of any kind by
         the Company, the Trustee or any other Person or any other circumstance
         whatsoever which might, but for the provisions of this paragraph,
         constitute a legal or equitable discharge of or defense to such
         Guarantor's obligations hereunder.

         SECTION 10.03. Discharge; Reinstatement. Each Guarantor's obligations
hereunder will remain in full force and effect until the earlier of (a) the
principal of, premium, if any, and interest on the Notes and all other amounts
payable by the Company under the Indenture have been paid in full or (b) the
Guarantor ceases to be a Guarantor of any of the Company's Debt obligations. If
at any time any payment of the principal of, premium, if any, or interest on any
Note or any other amount payable by the Company under the Indenture is rescinded
or must be otherwise restored or returned upon the insolvency, bankruptcy or
reorganization of the Company or otherwise, each Guarantor's obligations
hereunder with respect to such payment will be reinstated as though such payment
had been due but not made at such time.

         SECTION 10.04. Waiver by the Guarantors. Each Guarantor irrevocably
waives acceptance hereof, presentment, demand, protest and any notice not
provided for herein, as well as any requirement that at any time any action be
taken by any Person against the Company or any other Person.

         SECTION 10.05. Subrogation and Contribution. Upon making any payment
with respect to any obligation of the Company under this Article, the

                                       53

<PAGE>

Guarantor making such payment will be subrogated to the rights of the payee
against the Company with respect to such obligation, provided that the Guarantor
may not enforce either any right of subrogation, or any right to receive payment
in the nature of contribution, or otherwise, from any other Guarantor, with
respect to such payment so long as any amount payable by the Company hereunder
or under the Notes remains unpaid.

         SECTION 10.06. Stay of Acceleration. If acceleration of the time for
payment of any amount payable by the Company under the Indenture or the Notes is
stayed upon the insolvency, bankruptcy or reorganization of the Company, all
such amounts otherwise subject to acceleration under the terms of the Indenture
are nonetheless payable by the Guarantors hereunder forthwith on demand by the
Trustee or the Holders.

         SECTION 10.07. Limitation on Amount of Guaranty. Notwithstanding
anything to the contrary in this Article, each Guarantor, and by its acceptance
of Notes, each Holder, hereby confirms that it is the intention of all such
parties that the Note Guaranty of such Guarantor not constitute a fraudulent
conveyance under applicable fraudulent conveyance provisions of the United
States Bankruptcy Code or any comparable provision of state law. To effectuate
that intention, the Trustee, the Holders and the Guarantors hereby irrevocably
agree that the obligations of each Guarantor under its Note Guaranty are limited
to the maximum amount that would not render the Guarantor's obligations subject
to avoidance under applicable fraudulent conveyance provisions of the United
States Bankruptcy Code or any comparable provision of state law.

         SECTION 10.08. Execution and Delivery of Guaranty. The execution by
each Guarantor of the Indenture (or a supplemental indenture in the form of
Exhibit B) evidences the Note Guaranty of such Guarantor, whether or not the
person signing as an officer of the Guarantor still holds that office at the
time of authentication of any Note. The delivery of any Note by the Trustee
after authentication constitutes due delivery of the Note Guaranty set forth in
the Indenture on behalf of each Guarantor.

         SECTION 10.09. Release of Guaranty. The Note Guaranty of a Guarantor
will terminate upon (a) the principal of, premium, if any, and interest on the
Notes and all other amounts payable by the Company under the Indenture having
been paid in full or (b) the Guarantor ceasing to be a Guarantor of any of the
Company's Debt obligations.

         Upon delivery by the Company to the Trustee of an Officers' Certificate
and, if reasonably requested by the Trustee, an Opinion of Counsel, to the
foregoing effect, the Trustee will execute any documents reasonably required in
order to evidence the release of the Guarantor from its obligations under its
Note

                                       54

<PAGE>

Guaranty.

         SECTION 10.10. Liability. A director, officer, employee or
stockholder, as such, of any Guarantor shall not have any liability for any
obligations of such Guarantor under this Indenture or for any claim based on, in
respect of or by reason of this Article 10.

                                   ARTICLE 11
                             SECURITY ARRANGEMENTS

         SECTION 11.01. Security. (a) In order to secure the Indenture
Obligations equally and ratably with the Obligations of the Company, and the
obligations of any Subsidiary of the Company, under the Credit Agreement, the
Company will, and will cause each of its Subsidiaries named in any Security
Document as a party thereto, to execute and deliver to the Collateral Agent
prior to the Issue Date each Security Document to which it is a party. The
Company and its Subsidiaries shall comply with all covenants and agreements
contained in the Security Documents the failure to comply with which would have
a material and adverse effect on the Liens purported to be created thereby,
unless such failure to comply is waived by the requisite lenders under the
Credit Agreement if, after that waiver, the Company is in compliance with
Section 4.09.

         (b) The Trustee and each Holder of each Note by its acceptance of that
Note acknowledges and agrees that:

                  (i) this Indenture, as originally executed and delivered by
         the parties hereto, does not create any Lien on any property or
         securities which secures the Indenture Obligations or this Indenture;

                  (ii) the Security Documents, when executed and delivered by
         the parties thereto, will comply with the provisions of Section 4.09;

                  (iii) the Security Documents provide, and any Security
         Document that becomes effective after the Issue Date may provide, that
         the Liens created thereby or thereunder automatically will be released
         and extinguished with respect to any property or security that is
         transferred or otherwise disposed of in accordance with the terms of
         the Credit Agreement;

                  (iv) without the necessity of any consent of or notice to the

                                       55

<PAGE>

         Trustee or any holder of Indenture Obligations, the Company and the
         Collateral Agent may amend, modify, supplement or terminate any
         Security Document as long as the Company remains in compliance with
         Section 4.09;

                  (v) as among the Trustee and the holders of Indenture
         Obligations and the lenders under the Credit Agreement and the
         Collateral Agent, those lenders and the Collateral Agent will have the
         sole ability to control and obtain remedies with respect to all
         Collateral (including on sale or liquidation of any Collateral after
         acceleration of the Notes or the Credit Agreement) without the
         necessity of any consent of or notice to the Trustee or any such
         holder;

                  (vi) any or all Liens granted under the Security Documents for
         the benefit of the Holders will be automatically released, without the
         necessity of any consent of the Trustee or any Holders, upon a release
         of such Lien or Liens pursuant to the terms of the Security Documents
         and the Credit Agreement or if such release is approved by the
         requisite lenders under the Credit Agreement;

                  (vii) the relative rights of the holders of Indenture
         Obligations and the holders of Indebtedness or other obligations
         secured by Liens on the Collateral are governed by, and are subject to
         the terms and conditions of, the Security Documents and not this
         Indenture; and

                  (viii) without the necessity of any consent of or notice to
         the Trustee or any holder of Indenture Obligations, the Company may, on
         behalf of itself or any of its Subsidiaries, request and instruct the
         Collateral Agent to, on behalf of each secured party under the Security
         Documents, (A) execute and deliver to the Company, for the benefit of
         any Person, such release documents as the Company may reasonably
         request, of all liens and security interests held by the Collateral
         Agent in Collateral, and such Person shall be entitled to rely
         conclusively on such release document, and (B) deliver any such
         Collateral in the possession of the Collateral Agent to the Company.

         SECTION 11.02. Notice of Payment, Discharge or Defeasance. The Trustee
and each Holder, by its acceptance of a Note, agree that upon the payment in
full or discharge pursuant to Article 8 of the Indenture Obligations, the
Trustee shall without notice to or consent of any Holder, upon the written
request of the Company, certify to the Collateral Agent, in writing, that the
Indenture Obligations have been paid in full, or that this Indenture has been
discharged in accordance with Article 8.

                                       56

<PAGE>

                                   ARTICLE 12
                                 MISCELLANEOUS

         SECTION 12.01. Trust Indenture Act of 1939. The Indenture shall
incorporate and be governed by the provisions of the Trust Indenture Act that
are required to be part of and to govern indentures qualified under the Trust
Indenture Act.

         SECTION 12.02. Noteholder Communications; Noteholder Actions. (a) The
rights of Holders to communicate with other Holders with respect to the
Indenture or the Notes are as provided by the Trust Indenture Act, and the
Company and the Trustee shall comply with the requirements of Trust Indenture
Act Section 312(a) and 312(b). Neither the Company nor the Trustee will be held
accountable by reason of any disclosure of information as to names and addresses
of Holders made pursuant to the Trust Indenture Act.

                  (b) (1) Any request, demand, authorization, direction, notice,
         consent to amendment, modification or waiver or other action provided
         by this Indenture to be given or taken by a Holder (an " act ") may be
         evidenced by an instrument signed by the Holder delivered to the
         Trustee. The fact and date of the execution of the instrument, or the
         authority of the person executing it, may be proved in any manner that
         the Trustee deems sufficient.

                  (2) The Trustee may make reasonable rules for action by or at
         a meeting of Holders, which will be binding on all the Holders.

         (c) Any act by the Holder of any Note binds that Holder and every
subsequent Holder of a Note that evidences the same debt as the Note of the
acting Holder, even if no notation thereof appears on the Note. Subject to
paragraph (d), a Holder may revoke an act as to its Notes, but only if the
Trustee receives the notice of revocation before the date the amendment or
waiver or other consequence of the act becomes effective.

         (d) The Company may, but is not obligated to, fix a record date (which
need not be within the time limits otherwise prescribed by Trust Indenture Act
Section 316(c)) for the purpose of determining the Holders entitled to act with
respect to any amendment or waiver or in any other regard, except that during
the continuance of an Event of Default, only the Trustee may set a record date
as to notices of default, any declaration or acceleration or any other remedies
or other consequences of the Event of Default. If a record date is fixed, those
Persons that were Holders at such record date and only those Persons will be
entitled to act, or

                                       57

<PAGE>

to revoke any previous act, whether or not those Persons continue to be Holders
after the record date. No act will be valid or effective for more than 90 days
after the record date.

         SECTION 12.03. Notices. (a) Any notice or communication to the Company
will be deemed given if in writing (i) when delivered in person or (ii) five
days after mailing when mailed by first class mail, or (iii) when sent by
facsimile transmission, with transmission confirmed. Any notice or communication
to the Trustee will be deemed given if in writing (i) when delivered in person,
or (ii) when sent by facsimile transmission, with transmission confirmed.
Notices or communications to a Guarantor will be deemed given if given to the
Company. In each case the notice or communication should be addressed as
follows:

        if to the Company:

           Roadway Corporation
           1077 Gorge Blvd.
           P.O. Box 471
           Akron, OH  44309
           FAX:  (303) 258-6082

        if to the Trustee:

           SunTrust Center
           Corporate Trust Department
           424 Church Street, 6th Floor
           Nashville, TN 37219
           FAX:  (615) 748-5331

         The Company or the Trustee by notice to the other may designate
additional or different addresses for subsequent notices or communications.

         (b) Except as otherwise expressly provided with respect to published
notices, any notice or communication to a Holder will be deemed given when
mailed to the Holder at its address as it appears on the Register by first class
mail or, as to any Global Note registered in the name of DTC or its nominee, as
agreed by the Company, the Trustee and DTC. Copies of any notice or
communication to a Holder, if given by the Company, will be mailed to the
Trustee at the same time. Defect in mailing a notice or communication to any
particular Holder will not affect its sufficiency with respect to other Holders.

         (c) Where the Indenture provides for notice, the notice may be waived
in

                                       58

<PAGE>

writing by the Person entitled to receive such notice, either before or after
the event, and the waiver will be the equivalent of the notice. Waivers of
notice by Holders must be filed with the Trustee, but such filing is not a
condition precedent to the validity of any action taken in reliance upon such
waivers.

         SECTION 12.04. Certificate and Opinion as to Conditions Precedent.
Upon any request or application by the Company to the Trustee to take any action
under the Indenture, the Company will furnish to the Trustee:

                  (1) an Officers' Certificate stating that, in the opinion of
         the signers, all conditions precedent, if any, provided for in the
         Indenture relating to the proposed action have been complied with; and

                  (2) an Opinion of Counsel stating that all such conditions
         precedent have been complied with.

                  SECTION 12.05. Statements Required in Certificate or Opinion .
         Each certificate or opinion with respect to compliance with a condition
         or covenant provided for in the Indenture must include:

                  (1) a statement that each Person signing the certificate or
         opinion has read the covenant or condition and the related definitions;

                  (2) a brief statement as to the nature and scope of the
         examination or investigation upon which the statement or opinion
         contained in the certificate or opinion is based;

                  (3) a statement that, in the opinion of each such Person, that
         Person has made such examination or investigation as is necessary to
         enable the Person to express an informed opinion as to whether or not
         such covenant or condition has been complied with; and

                  (4) a statement as to whether or not, in the opinion of each
         such Person, such condition or covenant has been complied with,
         provided that an Opinion of Counsel may rely on an Officers'
         Certificate or certificates of public officials with respect to matters
         of fact.

         SECTION 12.06. Payment Date Other Than a Business Day. If any payment
with respect to a payment of any principal of, premium, if any, or interest on
any Note (including any payment to be made on any date fixed for redemption or
purchase of any Note) is due on a day which is not a Business Day, then the
payment need not be made on such date, but may be made on the next Business Day
with the same force and effect as if made on such date, and no interest will
accrue for the intervening period.

                                       59

<PAGE>

         SECTION 12.07. Governing Law. The Indenture, including any Note
Guaranties, and the Notes shall be governed by, and construed in accordance
with, the laws of the State of New York.

         SECTION 12.08. No Adverse Interpretation of Other Agreements. The
Indenture may not be used to interpret another indenture or loan or debt
agreement of the Company or any Subsidiary of the Company, and no such indenture
or loan or debt agreement may be used to interpret the Indenture.

         SECTION 12.09. Successors. All agreements of the Company or any
Guarantor in the Indenture and the Notes will bind its successors. All
agreements of the Trustee in the Indenture will bind its successor.

         SECTION 12.10. Duplicate Originals. The parties may sign any number of
copies of the Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.

         SECTION 12.11. Separability. In case any provision in the Indenture or
in the Notes is invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions will not in any way be affected or
impaired thereby.

         SECTION 12.12. Table of Contents and Headings. The Table of Contents,
Cross-Reference Table and headings of the Articles and Sections of the Indenture
have been inserted for convenience of reference only, are not to be considered a
part of the Indenture and in no way modify or restrict any of the terms and
provisions of the Indenture.

         SECTION 12.13. No Liability of Directors, Officers, Employees,
Incorporators and Stockholders. No director, officer, employee, incorporator,
member or stockholder of the Company or any Subsidiary, will have any liability
for any obligations of the Company or any Guarantor under the Notes, any Note
Guaranty or the Indenture or for any claim based on, in respect of, or by reason
of, such obligations. Each Holder of Notes by accepting a Note waives and
releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes and the Note Guaranties.

                                       60

<PAGE>

                                   SIGNATURES

         IN WITNESS WHEREOF, the parties hereto have caused the Indenture to be
duly executed as of the date first written above.

                                           ROADWAY CORPORATION
                                           as Issuer

                                           By: /s/ Joseph R. Boni III
                                               --------------------------------
                                               Name: Joseph R. Boni III
                                               Title: Treasurer

                                           SUNTRUST BANK
                                           as Trustee

                                           By: /s/ Walter L. Duke, Jr.
                                               --------------------------------
                                               Name: Walter L. Duke, Jr.
                                               Title: Group Vice President

                                           ROADWAY EXPRESS, INC.
                                           as Guarantor

                                           By: /s/ Joseph R. Boni III
                                               --------------------------------
                                               Name: Joseph R. Boni III
                                               Title: Treasurer

                                           ROADWAY EXPRESS INTERNATIONAL, INC.
                                           as Guarantor

                                           By: /s/ Joseph R. Boni III
                                               --------------------------------
                                               Name: Joseph R. Boni III
                                               Title: Treasurer
<PAGE>

                                        ROADWAY REVERSE LOGISTICS, INC.
                                        as Guarantor

                                        By: /s/ Joseph R. Boni III
                                           ------------------------------------
                                           Name: Joseph R. Boni III
                                           Title: Treasurer

                                        ARNOLD INDUSTRIES, INC.
                                        as Guarantor

                                        By: /s/ Joseph R. Boni III
                                           ------------------------------------
                                           Name: Joseph R. Boni III
                                           Title: Vice President and Treasurer

                                        NEW PENN MOTOR EXPRESS, INC.
                                        as Guarantor

                                        By: /s/ Joseph R. Boni III
                                           ------------------------------------
                                           Name: Joseph R. Boni III
                                           Title: Treasurer

                                        ARNOLD TRANSPORTATION SERVICES, INC.
                                        as Guarantor

                                        By: /s/ Joseph R. Boni III
                                           ------------------------------------
                                           Name: Joseph R. Boni III
                                           Title: Treasurer

<PAGE>

                                                                       EXHIBIT A

                                 [FACE OF NOTE]

                               ROADWAY CORPORATION

                    8 1/4% Senior Note Due December 1, 2008

                                                   [CUSIP] [CINS] ______________

No.                                                             $ ______________

         Roadway Corporation, a Delaware corporation (the "COMPANY", which
term includes any successor under the Indenture hereinafter referred to), for
value received, promises to pay to          , or its registered assigns, the
principal sum of         DOLLARS ($      ) [or such other amount as indicated on
the Schedule of Exchange of Notes attached hereto] on December 1, 2008. All
capitalized terms used herein but not defined herein shall have the meaning set
forth for such terms in the Indenture (as defined below).

         Initial Interest Rate: 8 1/4% per annum.

         Interest Payment Dates: June 1st and December 1st, commencing June 1,
2002.

         Regular Record Dates: May 15th and November 15th.

         Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof, which will for all purposes have the same effect as
if set forth at this place.

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Note to be signed
manually or by facsimile by its duly authorized officers.

Date:

                                       Roadway Corporation

                                       By:
                                          --------------------------
                                           Name:
                                           Title:

                                       A-2

<PAGE>

                (Form of Trustee's Certificate of Authentication)

         This is one of the 8 1/4% Senior Notes Due December 1, 2008 described
in Indenture referred to in this Note.

                                             SunTrust Bank, as Trustee

                                             By:
                                                ------------------------------
                                                    Authorized Signatory

                                       A-3

<PAGE>

                             [REVERSE SIDE OF NOTE]

                               ROADWAY CORPORATION

                    8 1/4% Senior Note Due December 1, 2008

1. Principal and Interest.

         The Company promises to pay the principal of this Note on December 1,
2008.

         The Company promises to pay interest on the principal amount of this
Note on each interest payment date, as set forth on the face of this Note, at
the rate of 8 1/4% per annum (subject to adjustment as provided below).

         Interest will be payable semiannually (to the holders of record of the
Notes at the close of business on the May 15th or November 15th immediately
preceding the interest payment date) on each interest payment date, commencing
June 1, 2002.

         The Holder of this Note is entitled to the benefits of the Registration
Rights Agreement, dated November 30, 2001 between the Company and the Initial
Purchasers named therein (the "REGISTRATION RIGHTS AGREEMENT"). In the event
that neither the Exchange Offer Registration Statement (as defined in the
Registration Rights Agreement) nor the Shelf Registration Statement (as defined
in the Registration Rights Agreement) is declared effective on or prior to the
date that is 180 days after the Issue Date (the "EFFECTIVENESS DEADLINE"), the
interest rate on this Note will increase by a rate of 0.25% per annum. The rate
will increase 0.25% each 90 day period following the Effectiveness Deadline that
the Exchange Offer Registration Statement or the Shelf Registration Statement is
not declared effective by the Commission, provided that the maximum increase in
the interest rate will in no event exceed 1.00% per annum. Upon the
effectiveness of the relevant registration statement, the interest rate on the
Notes will revert to the original rate. If the Exchange Offer Registration
Statement is declared effective but the Exchange Offer is not consummated on or
prior to 30 Business Days after the date of effectiveness of the Exchange Offer
Registration Statement, the interest rate on this Note will increase by a rate
of 0.25% per annum. The rate will increase 0.25% each 90 day period following
the Effectiveness Deadline that the Exchange Offer is not complete, provided
that the maximum increase in the interest rate will in no event exceed 1.00% per
annum. Upon completion of the Exchange Offer, the interest rate on the Notes
will revert to the original rate.

                                       A-4

<PAGE>

         Interest on this Note will accrue from the most recent date to which
interest has been paid on this Note or the Note surrendered in exchange for this
Note (or, if there is no existing default in the payment of interest and if this
Note is authenticated between a regular record date and the next interest
payment date, from such interest payment date) or, if no interest has been paid,
from the Issue Date. Interest will be computed in the basis of a 360-day year of
twelve 30-day months.

         The Company will pay interest on overdue principal, premium, if any,
and, to the extent lawful, interest at a rate of 8 1/4% per annum. Interest not
paid when due and any interest on principal, premium or interest not paid when
due will be paid to the Persons that are Holders on a special record date, which
will be the 15th day preceding the date fixed by the Company for the payment of
such interest, whether or not such day is a Business Day. At least 15 days
before a special record date, the Company will send to each Holder and to the
Trustee a notice that sets forth the special record date, the payment date and
the amount of interest to be paid.

2. Indentures; Note Guaranty.

         This is one of the Notes issued under an Indenture dated as of November
30, 2001 (as amended from time to time, the "INDENTURE"), between the Company,
the Guarantors party thereto and SunTrust Bank, as Trustee. Capitalized terms
used herein are used as defined in the Indenture unless otherwise indicated. The
terms of the Notes include those stated in the Indenture and those made part of
the Indenture by reference to the Trust Indenture Act. The Notes are subject to
all such terms, and Holders are referred to the Indenture and the Trust
Indenture Act for a statement of all such terms. To the extent permitted by
applicable law, in the event of any inconsistency between the terms of this Note
and the terms of the Indenture, the terms of the Indenture will control.

         The Notes are senior obligations of the Company, rank equal in right of
payment with all existing and future senior obligations and rank senior to all
subordinated Debt of the Company. The Indenture limits the original aggregate
principal amount of the Notes to $225,000,000 , but Additional Notes may be
issued pursuant to the Indenture, and the originally issued Notes and all such
Additional Notes vote together for all purposes as a single class. This Note is
Guaranteed by all of the Subsidiaries of the Company that are Guarantors of any
of the Company's Debt as set forth in the Indenture.

3. Redemption and Repurchase; Discharge Prior to Redemption or Maturity.

         This Note is subject to optional redemption as further described in the
Indenture. There is no sinking fund or mandatory redemption applicable to this

                                       A-5

<PAGE>

Note.

         If the Company deposits with the Trustee money or U.S. Government
Obligations sufficient to pay the then outstanding principal of, premium, if
any, and accrued interest on the Notes to redemption or maturity, the Company
may in certain circumstances be discharged from the Indenture and the Notes or
may be discharged from certain of its obligations under certain provisions of
the Indenture.

4. Registered Form; Denominations; Transfer; Exchange.

         The Notes are in registered form without coupons in denominations of
$1,000 principal amount and any integral thereof. A Holder may register the
transfer or exchange of Notes in accordance with the Indenture. The Trustee may
require a Holder to furnish appropriate endorsements and transfer documents and
to pay any taxes and fees required by law or permitted by the Indenture.
Pursuant to the Indenture, there are certain periods during which the Trustee
will not be required to issue, register the transfer of or exchange any Note or
certain portions of a Note.

5. Defaults and Remedies.

         If an Event of Default, as defined in the Indenture, occurs and is
continuing, the Trustee or the Holders of at least 25% in aggregate principal
amount of the Notes may declare all the Notes to be due and payable. If a
bankruptcy or insolvency default with respect to the Company occurs and is
continuing, the Notes automatically become due and payable. Holders may not
enforce the Indenture or the Notes except as provided in the Indenture. The
Trustee may require indemnity satisfactory to it before it enforces the
Indenture or the Notes. Subject to certain limitations, Holders of a majority in
aggregate principal amount of the Notes then outstanding may direct the Trustee
in its exercise of remedies.

6. Amendment and Waiver.

         Subject to certain exceptions, the Indenture and the Notes may be
amended, or default may be waived, with the consent of the Holders of a majority
in aggregate principal amount of the outstanding Notes. Without notice to or the
consent of any Holder, the Company and the Trustee may amend or supplement the
Indenture or the Notes to, among other things, cure any ambiguity, defect or
inconsistency if such amendment or supplement does not adversely affect the
interests of the Holders in any material respect.

7. Authentication.

                                       A-6

<PAGE>

         This Note is not valid until the Trustee (or Authenticating Agent)
signs the certificate of authentication on the other side of this Note.

         8. Abbreviations.

         Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as
tenants in common), CUST (= Custodian) and U/G/M/A/ (= Uniform Gifts to Minors
Act).

         The Company will furnish a copy of the Indenture to any Holder upon
written request and without charge.

                                       A-7

<PAGE>

                            [FORM OF TRANSFER NOTICE]

         FOR VALUE RECEIVED the undersigned registered holder hereby sell(s),
assign(s) and transfer(s) unto

Insert Taxpayer Identification No.

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

--------------------------------------------------------------------------------
Please print or typewrite name and address including zip code of assignee

--------------------------------------------------------------------------------
the within Note and all rights thereunder, hereby irrevocably constituting and
appointing

--------------------------------------------------------------------------------
attorney to transfer said Note on the books of the Company with full power of
substitution in the premises.

                                       A-8
<PAGE>

[THE FOLLOWING PROVISION TO BE INCLUDED ON ALL
CERTIFICATES BEARING A RESTRICTED LEGEND]

         In connection with any transfer of this Note occurring prior to       ,
the undersigned confirms that such transfer is made without utilizing any
general solicitation or general advertising and further as follows:

[ ] (1) This Note is being transferred to a "qualified institutional buyer" in
compliance with Rule 144A under the Securities Act of 1933, as amended and
certification in the form of Exhibit F to the Indenture is being furnished
herewith.

[ ] (2) This Note is being transferred to a non-U.S. Person in compliance with
the exemption from registration under the Securities Act of 1933, as amended,
provided by Regulation S thereunder, and certification in the form of Exhibit E
to the Indenture is being furnished herewith.

                                   or

[ ] (3) This Note is being transferred other than in accordance with (1) or (2)
above and documents are being furnished which comply with the conditions of
transfer set forth in this Note and the Indenture.

         If none of the foregoing boxes is checked, the Trustee is not obligated
to register this Note in the name of any Person other than the Holder hereof
unless and until the conditions to any such transfer of registration set forth
herein and in the Indenture have been satisfied.

Date:
      -------------------
                                               -------------------------------
                                               Seller

                                               By
                                                 -----------------------------
                                    NOTICE: The signature to this assignment
                                    must correspond with the name as written
                                    upon the face of the within-mentioned
                                    instrument in every particular, without
                                    alteration or any change whatsoever.

                                       A-9

<PAGE>

                              Signature Guaranty:(1)
                                                    -------------------------

                                     By
                                        -------------------------------------
                                     To be executed by an executive officer

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

         (1) Signatures must be guaranteed by an "ELIGIBLE GUARANTOR
INSTITUTION" meeting the requirements of the Registrar, which requirements
include membership or participation in the Note Transfer Agent Medallion Program
("STAMP") or such other "SIGNATURE GUARANTEE PROGRAM" as may be determined
by the Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

                                      A-10

<PAGE>

                         SCHEDULE OF EXCHANGES OF NOTES

         The following exchanges of a part of this Global Note for Certificated
Notes or a part of another Global Note have been made:

<TABLE>
<CAPTION>
                                                                    PRINCIPAL AMOUNT OF
                                                                     THIS GLOBAL NOTE
                    AMOUNT OF DECREASE     AMOUNT OF INCREASE IN      FOLLOWING SUCH           SIGNATURE OF
                    IN PRINCIPAL AMOUNT     PRINCIPAL AMOUNT OF         DECREASE (OR      AUTHORIZED OFFICER OF
DATE OF EXCHANGE     OF THIS GLOBAL NOTE     THIS GLOBAL NOTE             INCREASE)               TRUSTEE
----------------   ----------------------  -----------------------------------------------------------------
<S>                <C>                     <C>                   <C>                      <C>

</TABLE>

                                      A-11

<PAGE>

                                                                       EXHIBIT B
                             SUPPLEMENTAL INDENTURE

                           dated as of _____________, ______

                                      among

                              Roadway Corporation,

                         [The Guarantor(s) Party Hereto]

                                       and

                                 SunTrust Bank,
                                   as Trustee

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

                    8 1/4 % Senior Notes Due December 1, 2008

<PAGE>

         THIS SUPPLEMENTAL INDENTURE (this "SUPPLEMENTAL INDENTURE"), entered
into as of,        , among Roadway Corporation, a Delaware corporation (the
"COMPANY"), [insert each Guarantor executing this Supplemental Indenture and
its jurisdiction of incorporation] (each an "UNDERSIGNED") and SunTrust Bank,
as trustee (the "TRUSTEE").

                                    RECITALS

         WHEREAS, the Company, the Guarantors party thereto and the Trustee
entered into the Indenture, dated as of November 30, 2001 (the "INDENTURE"),
relating to the Company's 8 1/4 % Senior Notes due December 1, 2008 (the
"NOTES");

         WHEREAS, as a condition to the Trustee entering into the Indenture and
the purchase of the Notes by the Holders, the Company agreed pursuant to the
Indenture to cause certain Subsidiaries, including certain newly acquired or
created Subsidiaries, to provide Guaranties in certain circumstances.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained and intending to be legally bound, the parties the Indenture
hereby agree as follows:

         SECTION 1. Capitalized terms used herein and not otherwise defined
herein are used as defined in the Indenture.

         SECTION 2. Each Undersigned, by its execution of this Supplemental
Indenture, agrees to be a Guarantor under the Indenture and to be bound by the
terms of the Indenture applicable to Guarantors, including, but not limited to,
Article 10 thereof.

         SECTION 3. This Supplemental Indenture shall be governed by and
construed in accordance with the laws of the State of New York.

         SECTION 4. This Supplemental Indenture may be signed in various
counterparts which together will constitute one and the same instrument.

         SECTION 5. This Supplemental Indenture is an amendment supplemental to
the Indenture and the Indenture and this Supplemental Indenture will henceforth
be read together.

         IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed as of the date first above written.

                                       B-2

<PAGE>

                                                Roadway Corporation,
                                                           as Issuer

                                                By:
                                                   ---------------------------
                                                   Name:
                                                   Title:

                                                [GUARANTOR]

                                                By:
                                                   ---------------------------
                                                   Name:
                                                   Title:

                                                SunTrust Bank, as Trustee

                                                By:
                                                   ---------------------------
                                                   Name:
                                                   Title:

                                       B-3

<PAGE>

                                                                       EXHIBIT C

                                RESTRICTED LEGEND

         THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
         EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933
         (THE "SECURITIES ACT"), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR
         OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
         APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY
         NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION
         FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE
         144A THEREUNDER.

         THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
         THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED,
         ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY
         BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
         UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF
         RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
         ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN
         EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE
         144 THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE
         REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I)
         THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY
         STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH
         SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE
         FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

<PAGE>

                                                                       EXHIBIT D

         For Global Note only: UNLESS THIS CERTIFICATE IS PRESENTED BY AN
         AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
         CORPORATION (THE "DEPOSITARY", WHICH TERM INCLUDES ANY SUCCESSOR
         DEPOSITARY FOR THE CERTIFICATES) TO THE COMPANY OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
         ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
         REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY
         PAYMENT HEREIN IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
         REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY
         TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
         ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
         CO., HAS AN INTEREST HEREIN.

<PAGE>

                                                                       EXHIBIT E

                            Regulation S Certificate

                          _______________________, _____

SunTrust Bank as Trustee
424 Church Street, 6th Floor
Nashville, TN 37219
Attention: Corporate Trust Administration

           Re:  Roadway Corporation 8 1/4 % Senior Notes due December
                1, 2008 (the "NOTES") Issued under the Indenture
                (the "INDENTURE") dated as of November 30, 2001
                relating to the Notes
                ----------------------------------------------------

Dear Sirs:

         Terms are used in this Certificate as used in Regulation S ("Regulation
S") under the Securities Act of 1933, as amended (the "Securities Act"), except
as otherwise stated herein.

         [CHECK A OR B AS APPLICABLE.]

         [ ]  A. This Certificate relates to our proposed transfer of $
                  principal amount of Notes issued under the Indenture. We
                  hereby certify as follows:

                  1.       The offer and sale of the Notes was not and will not
                           be made to a person in the United States (unless such
                           person is excluded from the definition of "U.S.
                           person" pursuant to Rule 902(k)(2)(vi) or the account
                           held by it for which it is acting is excluded from
                           the definition of "U.S. person" pursuant to Rule
                           902(k)(2)(i) under the circumstances described in
                           Rule 902(g)(3)) and such offer and sale was not and
                           will not be specifically targeted at an identifiable
                           group of U.S. citizens abroad.

                  2.       Unless the circumstances described in the
                           parenthetical in paragraph 1 above are applicable,
                           either (a) at the time the buy order was originated,
                           the buyer was outside the United

<PAGE>

                           States or we and any person acting on our behalf
                           reasonably believed that the buyer was outside the
                           United States or (b) the transaction was executed in,
                           on or through the facilities of a designated offshore
                           securities market, and neither we nor any person
                           acting on our behalf knows that the transaction was
                           pre-arranged with a buyer in the United States.

                  3.       Neither we, any of our affiliates, nor any person
                           acting on our or their behalf has made any directed
                           selling efforts in the United States with respect to
                           the Notes.

                  4.       The proposed transfer of Notes is not part of a plan
                           or scheme to evade the registration requirements of
                           the Securities Act.

                  5.       If we are a dealer or a person receiving a selling
                           concession, fee or other remuneration in respect of
                           the Notes, and the proposed transfer takes place
                           during the Restricted Period (as defined in the
                           Indenture), or we are an officer or director of the
                           Company or an Initial Purchaser (as defined in the
                           Indenture), we certify that the proposed transfer is
                           being made in accordance with the provisions of Rule
                           904(b) of Regulation S.

           [ ] B. This Certificate relates to our proposed exchange of $
                  principal amount of Notes issued under the Indenture for an
                  equal principal amount of Notes to be held by us. We hereby
                  certify as follows:

                  1.       At the time the offer and sale of the Notes was made
                           to us, either (i) we were not in the United States or
                           (ii) we were excluded from the definition of "U.S.
                           person" pursuant to Rule 902(k)(2)(vi) or the account
                           held by us for which we were acting was excluded from
                           the definition of "U.S. person" pursuant to Rule
                           902(k)(2)(i) under the circumstances described in
                           Rule 902(g)(3); and we were not a member of an
                           identifiable group of U.S. citizens abroad.

                  2.       Unless the circumstances described in paragraph 1(ii)
                           above are applicable, either (a) at the time our buy
                           order was originated, we were outside the United
                           States or (b) the transaction was executed in, on or
                           through the facilities of a designated offshore
                           securities market and we did not pre- arrange the
                           transaction in the United States.

                  3.       The proposed exchange of Notes is not part of a plan
                           or

                                       E-2

<PAGE>

                           scheme to evade the registration requirements of the
                           Securities Act.

         You and the Company are entitled to rely upon this Certificate and are
irrevocably authorized to produce this Certificate or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

                                     Very truly yours,

                                     [NAME OF SELLER (FOR TRANSFERS)
                                                OR OWNER (FOR EXCHANGES)]

                                     By:
                                       --------------------------------------
                                       Name:
                                       Title:
                                       Address:

Date:_____________________

                                       E-3

<PAGE>

                                                                       EXHIBIT F

                              Rule 144A Certificate

                                   _________________, _____

SunTrust Bank as Trustee
424 Church Street, 6th Floor
Nashville, TN 37219
Attention: Corporate Trust Administration

                  Re:      Roadway Corporation 8 1/4 % Senior Notes due December
                           1, 2008 (the "NOTES") Issued under the Indenture
                           (the "INDENTURE") dated as of November 30, 2001
                           relating to the Notes
                           ----------------------------------------------------

Ladies and Gentlemen:

         TO BE COMPLETED BY PURCHASER IF (1) ABOVE IS CHECKED.

         This Certificate relates to:

         [CHECK A OR B AS APPLICABLE.]

[ ]   A. Our proposed purchase of $ principal amount of Notes issued under
         the Indenture.

[ ]   B. Our proposed exchange of $ principal amount of Notes issued under
         the Indenture for an equal principal amount of Notes to be held by us.

         We and, if applicable, each account for which we are acting in the
aggregate owned and invested more than $100,000,000 in securities of issuers
that are not affiliated with us (or such accounts, if applicable), as of     ,
200_, which is a date on or since close of our most recent fiscal year. We and,
if applicable, each account for which we are acting, are a qualified
institutional buyer within the meaning of Rule 144A ("Rule 144A") under the
Securities Act of 1933, as amended (the "Securities Act"). If we are acting on
behalf of an account, we exercise sole investment discretion with respect to
such account. We are aware that the transfer of Notes to us, or such exchange,
as applicable, is being made in reliance upon the exemption from the provisions
of Section 5 of the Securities Act provided by Rule 144A. Prior to the date of
this Certificate we have received such information regarding the Company as we
have requested

<PAGE>

pursuant to Rule 144A(d)(4) or have determined not to request such information.

         You and the Company are entitled to rely upon this Certificate and are
irrevocably authorized to produce this Certificate or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

                                   Very truly yours,

                                   [NAME OF PURCHASER (FOR
                                              TRANSFERS) OR OWNER (FOR
                                              EXCHANGES)]

                                   By:
                                      ----------------------------------------
                                      Name:
                                      Title:
                                      Address:
Date:_____________________

                                       F-2

<PAGE>

                                                                       EXHIBIT G

                   [COMPLETE FORM I OR FORM II AS APPLICABLE.]

                                    [FORM I]

                       Certificate of Beneficial Ownership

  To:  SunTrust Bank, as Trustee
       424 Church Street, 6th Floor
       Nashville, TN 37219

       Attention: Corporate Trust Administration  OR
       Euroclear Bank S.A./N.V., as operator of the Euroclear System OR
       Clearstream Banking SA

       Re:      Roadway Corporation 8 1/4 % Senior Notes due December
                1, 2008 (the "NOTES") Issued under the Indenture
                (the "INDENTURE") dated as of November 30, 2001
                relating to the Notes
                ----------------------------------------------------
  Ladies and Gentlemen:

         We are the beneficial owner of $ principal amount of Notes issued under
the Indenture and represented by a Temporary Offshore Global Note (as defined in
the Indenture).

         We hereby certify as follows:

         [CHECK A OR B AS APPLICABLE.]

[ ]   A. We are a non-U.S. person (within the meaning of Regulation S under
         the Securities Act of 1933, as amended).

[ ]   B. We are a U.S. person (within the meaning of Regulation S under the
         Securities Act of 1933, as amended) that purchased the Notes in a
         transaction that did not require registration under the Securities Act
         of 1933, as amended.

         You and the Company are entitled to rely upon this Certificate and are
irrevocably authorized to produce this Certificate or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

<PAGE>

                                              Very truly yours,

                                              [NAME OF BENEFICIAL OWNER]

                                              By:
                                                 ------------------------------
                                                 Name:
                                                 Title:
                                                 Address:
  Date:_______________________

                                    [FORM II]

                       Certificate of Beneficial Ownership

To:  SunTrust Bank, as Trustee
     424 Church Street, 6th Floor
     Nashville, TN 37219

     Attention: Corporate Trust Administration

         Re:      Roadway Corporation 8 1/4 % Senior Notes due December 1, 2008
                  (the "NOTES") Issued under the Indenture (the "INDENTURE")
                  dated as of November 30, 2001 relating to the Notes
                  -------------------------------------------------------------

Ladies and Gentlemen:

         This is to certify that based solely on certifications we have received
in writing, by tested telex or by electronic transmission from member
organizations ("Member Organizations") appearing in our records as persons being
entitled to a portion of the principal amount of Notes represented by a
Temporary Offshore Global Note (as defined in the Indenture) issued under the
above-referenced Indenture, that as of the date hereof, $ principal amount of
Notes represented by the Temporary Offshore Global Note being submitted herewith
for exchange is beneficially owned by persons that are either (i) non-U.S.
persons (within the meaning of Regulation S under the Securities Act of 1933, as
amended) or (ii) U.S. persons that purchased the Notes in a transaction that did
not require registration under the Securities Act of 1933, as amended.

         We further certify that (i) we are not submitting herewith for exchange
any portion of such Temporary Offshore Global Note excepted in such Member

                                       G-2

<PAGE>

Organization certifications and (ii) as of the date hereof we have not received
any notification from any Member Organization to the effect that the statements
made by such Member Organization with respect to any portion of such Temporary
Offshore Global Note submitted herewith for exchange are no longer true and
cannot be relied upon as of the date hereof.

         You and the Company are entitled to rely upon this Certificate and are
irrevocably authorized to produce this Certificate or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

                             Yours faithfully,

                             EUROCLEAR BANK S.A./N.V., as
                                 operator of the Euroclear System

                                                          OR

                             CLEARSTREAM BANKING SA

                             By:
                                 ---------------------------------
                                 Name:
                                 Title:
                                 Address:
Date:______________

                                      G-3

<PAGE>

                                                                       EXHIBIT H

         THIS NOTE IS A TEMPORARY GLOBAL NOTE. PRIOR TO THE EXPIRATION OF THE
         RESTRICTED PERIOD APPLICABLE HERETO, BENEFICIAL INTERESTS HEREIN MAY
         NOT BE HELD BY ANY PERSON OTHER THAN (1) A NON-U.S. PERSON OR (2) A
         U.S. PERSON THAT PURCHASED SUCH INTEREST IN A TRANSACTION EXEMPT FROM
         REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
         "SECURITIES ACT"). BENEFICIAL INTERESTS HEREIN ARE NOT EXCHANGEABLE FOR
         PHYSICAL NOTES OTHER THAN A PERMANENT GLOBAL NOTE IN ACCORDANCE WITH
         THE TERMS OF THE INDENTURE. TERMS IN THIS LEGEND ARE USED AS USED IN
         REGULATION S UNDER THE SECURITIES ACT.<PAGE>
                                                                    EXHIBIT 4.10

                                   ROADWAY LLC
                            401(K) STOCK SAVINGS PLAN

               (AMENDED AND RESTATED EFFECTIVE DECEMBER 11, 2003)

<PAGE>

                                   ROADWAY LLC
                            401(K) STOCK SAVINGS PLAN

               (AMENDED AND RESTATED EFFECTIVE DECEMBER 11, 2003)

                                TABLE OF CONTENTS

<TABLE>
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INTRODUCTION...............................................................          1

ARTICLE I.  PRELIMINARY MATTERS............................................          2
1.1   Qualified Plan ......................................................          2
1.2   Discretionary Powers ................................................          2
1.3   Construction ........................................................          2

ARTICLE II. DEFINITIONS ...................................................          2
2.1   Generally ...........................................................          2
      Account and Sub-Account .............................................          2
      Administrative Committee.............................................          2
      After-Tax Contributions .............................................          3
      Before-Tax Contributions ............................................          3
      Beneficiary .........................................................          3
      Board ...............................................................          3
      Code ................................................................          3
      Company .............................................................          3
      Company Stock .......................................................          3
      Company Stock Fund ..................................................          3
      Compensation ........................................................          3
      Contributions .......................................................          4
      Controlled Group ....................................................          4
      Controlled Group Member .............................................          4
      Covered Employee ....................................................          4
      Death Beneficiary ...................................................          4
      Effective Date ......................................................          5
      Eligible Employee ...................................................          5
      Eligible Retirement Plan ............................................          5
      Eligible Rollover Distribution ......................................          5
      Employee ............................................................          6
      Employer ............................................................          6
      Employer Contributions ..............................................          6
      Employment Commencement Date ........................................          6
      Enrollment Date .....................................................          7
      ERISA ...............................................................          7
      FedEx Corp. Stock ...................................................          7
      FedEx Stock Fund ....................................................          7
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      Fiduciary ...........................................................          7
      Full-Time Employee ..................................................          7
      Hardship ............................................................          7
      Highly Compensated Employee .........................................          8
      Hours of Service ....................................................          8
      Instrument of Adoption ..............................................          9
      Investment Committee.................................................          9
      Investment Funds ....................................................          9
      Matching Employer Contributions .....................................          9
      Named Fiduciary .....................................................          9
      One-Year Break in Service or 1-Year Break in Service ................          9
      Participant .........................................................         10
      Part-Time Employee ..................................................         11
      Period of Service ...................................................         11
      Period of Severance .................................................         12
      Plan ................................................................         12
      Plan Administrator ..................................................         12
      Plan Year ...........................................................         12
      Predecessor Employer ................................................         12
      Prior Plans .........................................................         12
      Profit Sharing Contributions ........................................         12
      Qualified Nonelective Contributions .................................         12
      Reemployment Commencement Date ......................................         13
      Rollover Contributions ..............................................         13
      Safe Harbor Matching Contribution ...................................         13
      Salary Reduction Agreement ..........................................         13
      Service .............................................................         13
      Severance Date ......................................................         13
      Spouse ..............................................................         13
      Stock Bonus Portion .................................................         13
      Temporary or Casual Employee ........................................         13
      Termination of Employment ...........................................         13
      Totally and Permanently Disabled ....................................         13
      Trust ...............................................................         14
      Trust Agreement .....................................................         14
      Trust Fund ..........................................................         14
      Trustee .............................................................         14
      Valuation Date ......................................................         14
      Year of Service .....................................................         14

ARTICLE III.      ELIGIBILITY FOR PARTICIPATION ...........................         15
3.1   Eligibility to Participate ..........................................         15
3.2   Duration of Participation ...........................................         16
3.3   Participation Due to Administrative Error ...........................         16
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ARTICLE IV. PARTICIPANT CONTRIBUTIONS .....................................         16
4.1   Amount of Before-Tax and After-Tax Contributions ....................         16
4.2   Maximum and Minimum Contributions ...................................         17
4.3   Payments to Trustee .................................................         17
4.4   Changes in Contributions ............................................         17
4.5   Suspension and Resumption of Contributions ..........................         18
4.6   Excess Deferrals ....................................................         18
4.7   Excess Before-Tax Contributions .....................................         19
4.8   Excess Matching Employer and After-Tax Contributions ................         20
4.9   Multiple Use of the Alternative Limitation ..........................         21
4.10  Monitoring Procedures ...............................................         22
4.11  Testing Procedures ..................................................         23
4.12  Rollover Contributions ..............................................         23
4.13  Transfers to this Plan from Other Plans .............................         24
4.14  Deemed Satisfaction of the Limitations on Before-Tax
       Contributions and Matching Employer Contributions
       of Highly Compensated Employees ....................................         24
4.15  Notice Requirements for Safe Harbor Matching Contributions ..........         24

ARTICLE V.        EMPLOYER CONTRIBUTIONS ..................................         25
5.1   Amount of Matching Employer Contributions ...........................         25
5.2   Allocation of Matching Employer Contributions .......................         25
5.3   Safe Harbor Matching Contributions ..................................         26
5.4   Qualified Nonelective Contributions .................................         26
5.5   Allocation of Qualified Nonelective Contributions ...................         26
5.6   Profit Sharing Contributions ........................................         27
5.7   Allocation of Profit Sharing Contributions ..........................         27
5.8   Return of Contributions to Employers ................................         27
5.9   Provisions Pursuant to Code Section 415(c) ..........................         28
5.9A  Provision Pursuant to Code Section 415(e)............................         29
5.10  Definitions .........................................................         30
5.11  Funding Policy ......................................................         31
5.12  No Duty to Enforce Payment ..........................................         31

ARTICLE VI. VESTING .......................................................         31
6.1   Immediate Vesting ...................................................         31

ARTICLE VII.      INVESTMENTS .............................................         31
7.1   Investment Funds ....................................................         31
7.2   Account; Sub-Account ................................................         33
7.3   Reports .............................................................         33
7.4   Valuation of Investment Funds .......................................         34
7.5   Investment of Contributions .........................................         35
7.6   Change of Investments ...............................................         37
7.7   Investment Direction and Change Procedures - Future Contributions ...         37
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7.8   Investment Direction and Change Procedures - Prior Contributions ....         37
7.9   Directions to the Trustee ...........................................         38
7.10  Voting of Allocated Company Stock and FedEx Corp. Stock .............         38
7.11  Tender of Allocated Company Stock or FedEx Corp. Stock ..............         39

ARTICLE VIII.     DISTRIBUTIONS AND WITHDRAWALS ...........................         42
8.1   Distributions Only As Provided ......................................         42
8.2   Distributions upon Termination of Employment (Other than Death) .....         42
8.3   Distribution upon Death .............................................         43
8.4   Distribution Options ................................................         44
8.5   Form and Valuation of Distribution ..................................         44
8.6   Latest Time of Distributions ........................................         45
8.7   Minimum Required Distributions for Calendar Years After 2002.........         47
8.8   Withdrawal Requested by Participant .................................         51
8.9   Suspension of Contributions Upon Withdrawal .........................         53
8.10  Hardship Withdrawals ................................................         53
8.11  Distributions Pursuant to Qualified Domestic Relations Orders .......         54
8.12  Direct Rollovers ....................................................         54
8.13  Loans ...............................................................         55

ARTICLE IX. ADMINISTRATION OF THE PLAN

                  AND FIDUCIARY RESPONSIBILITIES ..........................         57
9.1   Responsibility for Administration ...................................         57
9.2   Named Fiduciaries ...................................................         58
9.3   Delegation of Fiduciary Responsibilities by Plan Administrator.......         58
9.4   Immunities ..........................................................         58
9.5   Limitation on Exculpatory Provisions ................................         59
9.6   Administrative Committee.............................................         59
9.7   Interpretation of the Plan and Findings of Fact .....................         60
9.8   Investment Committee.................................................         61
9.9   Operation of the Administrative Committee or the Investment
            Committee......................................................         62
9.10  Plan Administrator's Actions ........................................         63
9.11  Correction of Errors ................................................         63

ARTICLE X. CLAIMS PROCEDURES ..............................................         63
10.1  Claims ..............................................................         63
10.2  Review of Claims ....................................................         64

ARTICLE XI. AMENDMENT AND TERMINATION .....................................         65
11.1  Right to Amend or Terminate .........................................         65
11.2  Procedure for Termination or Amendment ..............................         65
11.3  Distribution Upon Termination .......................................         65
11.4  Amendment Changing Vesting Schedule .................................         66
11.5  Nonforfeitable Amounts ..............................................         66
11.6  Prohibition on Decreasing Accrued Benefits ..........................         66
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ARTICLE XII. MISCELLANEOUS ................................................         67
12.1  Employment Not Affected .............................................         67
12.2  Inalienability ......................................................         67
12.3  Incapacity to Receive Payment .......................................         67
12.4  Unclaimed Benefits ..................................................         67
12.5  Dissolution, Merger or Consolidation of the Company .................         68
12.6  Action by the Company ...............................................         68
12.7  Limitation to Rights Created Under the Plan .........................         68
12.8  Recourse Against Officers, Directors or Stockholders ................         68
12.9  Interpretation ......................................................         68
12.10 Severability ........................................................         69
12.11 Counterparts ........................................................         69
12.12 Plan Merger or Transfer of Assets ...................................         69
12.13 Indemnification .....................................................         69
12.14 Service of Process/Necessary Parties ................................         70
12.15 Military Service ....................................................         70
12.16 Model EGTRRA Amendments .............................................         70

ARTICLE XIII. ADOPTION OF PLAN BY CONTROLLED
                  GROUP MEMBERS ...........................................         70
13.1  Adoption Procedure ..................................................         70
13.2  Effect of Adoption by a Controlled Group Member .....................         71
13.3  Withdrawal of an Employer ...........................................         71

ARTICLE XIV. TOP-HEAVY PLAN PROVISIONS ....................................         71
14.1  Definitions .........................................................         71
14.2  Determination of Top-Heavy Status ...................................         73
14.3  Determination of Extra Top-Heavy Status .............................         74
14.4  Requirements ........................................................         74
14.5  Coordination With Other Plans .......................................         75
14.6  Certain Changes Effective January 1, 2002 ...........................         76

EXHIBIT A
Employers Pursuant to Section 2.23.........................................         77

EXHIBIT B
Investment Funds...........................................................         78
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<PAGE>

                                   ROADWAY LLC
                            401(K) STOCK SAVINGS PLAN

               (AMENDED AND RESTATED EFFECTIVE DECEMBER 11, 2003)

                                  INTRODUCTION

      THIS PLAN is amended and restated effective the 11th day of December, 2003
by the Yellow Roadway Corporation, a Delaware corporation.

      The Plan was established effective January 1, 1996 as the Roadway Express,
Inc. 401(k) Stock Savings Plan. As a result of a corporate reorganization and by
amendment to the Plan, effective January 1, 2002, the name of the Plan was
changed to the Roadway Corporation 401(k) Stock Savings Plan. As a result of the
merger of Roadway Corporation with and into Yankee LLC, a Delaware corporation
and a wholly owned subsidiary of Yellow Corporation pursuant to an Agreement and
Plan of Merger, dated as of July 8, 2003, and by this amendment and restatement,
the name of the Plan is changed to the "Roadway LLC 401(k) Stock Savings Plan."

      This amendment and restatement of the Plan is effective December 11, 2003.
As provided herein, however, certain provisions of this amended and restated
Plan are effective as of some other date. Such provisions shall be deemed to
amend the corresponding provisions of the Plan as in effect before this
amendment and restatement and all amendments thereto. Events occurring before
the applicable effective date of any provision of this amendment and restatement
of the Plan shall be governed by the applicable provision of the Plan in effect
on the date of the event.

                                       1
<PAGE>

                         ARTICLE I. PRELIMINARY MATTERS

1.1   QUALIFIED PLAN. The Plan is a profit-sharing plan maintained by the
      Company for the exclusive benefit of Participants and their Beneficiaries.
      The Plan is permitted to acquire and hold shares of common stock of the
      Company, and is intended to comply with the provisions of the Code that
      govern tax-qualified plans and ERISA.

1.2   DISCRETIONARY POWERS. All discretionary powers granted hereunder shall be
      exercised in a uniform nondiscriminatory manner.

1.3   CONSTRUCTION.

      (a)   Unless the context otherwise indicates, the masculine wherever used
            herein shall include the feminine and neuter, the singular shall
            include the plural and words such as "herein", "hereof", "hereby",
            "hereunder" and words of similar import refer to the Plan as a whole
            and not to any particular part thereof.

      (b)   Wherever the word "person" appears in the Plan, it shall refer to
            both natural legal persons.

      (c)   A number of the provisions of the Plan are designed to contain
            provisions required or contemplated by certain federal laws and/or
            regulations thereunder. All such provisions are intended to have the
            meaning required or contemplated by such provisions of such law or
            regulations and shall be construed in accordance with valid
            regulations and valid published governmental rulings and
            interpretations of such provisions. In applying such provisions of
            the Plan, each Fiduciary may rely (and shall be protected in
            relying) on any determination or ruling made by any agency of the
            United States Government that has authority to issue regulations,
            rulings or determinations with respect to the federal law thus
            involved.

                             ARTICLE II..DEFINITIONS

2.1 GENERALLY. The following terms, when used with initial capital letters,
unless the context clearly indicates otherwise, shall have the following
respective meanings.

      "ACCOUNT AND SUB-ACCOUNT" mean the records maintained by the Plan
Administrator in the manner provided in Section 7.2 hereof to determine the
interest of each Participant in the Trust Fund.

      "ADMINISTRATIVE COMMITTEE" means the administrative committee appointed
pursuant to Section 9.6 hereof.

                                       2
<PAGE>

      "AFTER-TAX CONTRIBUTIONS" means the contributions provided for in Section
4.1(b) hereof and any other comparable after-tax amounts transferred to the Plan
pursuant to Section 4.13 hereof.

      "BEFORE-TAX CONTRIBUTIONS" means the contributions provided for in Section
4.1(a) and any other comparable before-tax amounts transferred to the Plan
pursuant to Section 4.13 hereof.

      "BENEFICIARY" means the Participant's Death Beneficiary or any other
person entitled to receive benefits under this Plan by reason of a Participant's
death.

      "BOARD" means the Board of Directors of the Company or the Compensation
Committee thereof.

      "CODE" means the Internal Revenue Code of 1986, as amended.

      "COMPANY" means Yellow Roadway Corporation, a Delaware corporation. For
periods prior to December 11, 2003, the term "Company" shall mean Roadway
Corporation.

      "COMPANY STOCK" means (a) prior to May 30, 2001, the voting common stock
of Roadway Express, Inc., (b) after May 30, 2001 and prior to December 11, 2003,
the common stock of Roadway Corporation, par value $0.01 per share, and (c) on
and after December 11, 2003, the common stock of the Company, par value $1.00
per share.

      "COMPANY STOCK FUND" means the Investment Fund described in Section 7.1
hereof, which is invested in Company Stock.

      "COMPENSATION" means

            (a) the sum of salary paid to an Employee by all Controlled Group
      Members in the calendar year plus cash incentive compensation and overtime
      pay paid to that Employee, but excluding (i) expense allowances and other
      special payments not paid as regular compensation, (ii) effective January
      1, 2000, payments pursuant to the Century Bonus Program, (iii) payments
      pursuant to a tax equalization, relocation or cost of living program, an
      expatriate program or any similar programs or arrangements, and (iv) any
      part of the Employer's contributions under this Plan and/or any pension,
      welfare, stock bonus, stock ownership or other qualified or nonqualified
      plan. Notwithstanding the foregoing, Compensation shall include any salary
      that would have been paid to such Employee had he not signed (or been
      deemed to have signed) a salary deferral agreement that satisfies the
      requirements of Code Section 401(k), 125, 129 or 132(f).

            (b) Notwithstanding the foregoing, Compensation of any Employee
      taken into account for any purpose for any Plan Year shall not exceed (i)
      one hundred fifty thousand dollars ($150,000) for Plan Years beginning
      before January 1, 2002, or (ii) two hundred thousand dollars ($200,000)
      for Plan Years beginning on and after January 1, 2002, as adjusted by the
      Secretary of the Treasury for increases in the cost of living in
      accordance

                                       3
<PAGE>

      with Code Section 401(a)(17). The cost-of-living adjustment in effect for
      a calendar year applies to Compensation for the Plan Year that begins with
      or within such calendar year.

      "CONTRIBUTIONS" mean any one or more of After-Tax Contributions,
Before-Tax Contributions, Matching Employer Contributions, Rollover
Contributions, Qualified Nonelective Contributions and Profit Sharing
Contributions, as the context requires.

      "CONTROLLED GROUP" means the Employers and any and all other corporations,
trades and/or businesses, the employees of which, together with Employees of an
Employer, are required by Code Section 414 to be treated as if they were
employed by a single employer. For purposes of Section 5.9 hereof, "Controlled
Group" shall be interpreted in accordance with Code Section 415(h).

      "CONTROLLED GROUP MEMBER" means each corporation or unincorporated trade
or business that is or was a member of the Controlled Group, but, except as
provided in Section 2.42(d) hereof, only during such period as it is or was such
a member of the Controlled Group.

      "COVERED EMPLOYEE" means any Employee of an Employer who is in a class or
group to which the Employer has extended eligibility for participation in the
Plan, excluding, however, any Employee who (a) is included in a collective
bargaining unit (either directly or through an employer's association) unless
the collective bargaining agreement expressly provides that the Employee is to
be eligible under the Plan, (b) is a non-resident alien (other than an alien who
is only temporarily located outside of the United States) or (c) is a leased
employee (as defined in the definition of the term "Employee" in this Article
II).

      "DEATH BENEFICIARY" means:

            (a) a Participant's Spouse or, if he has no Spouse or if his Spouse
      consents to the designation, such person or persons other than, or in
      addition to, his Spouse as may be designated by the Participant as his
      Death Beneficiary under the Plan. A Participant's designation required by
      this definition may be made, revoked or changed (without the consent of
      any previously designated Death Beneficiary, except as provided in this
      definition) only by an instrument (in the form provided by the Plan
      Administrator) that is signed by the Participant, that, if he has a
      Spouse, includes his Spouse's written consent to the action to be taken
      pursuant to such instrument (unless such action results in the Spouse
      being named as the Participant's sole Death Beneficiary), and that is
      filed with the Plan Administrator before the Participant's death. A
      Spouse's consent required by this definition shall be signed by the
      Spouse, shall acknowledge the effect of such consent, shall be witnessed
      by a notary public and shall be effective only with respect to such
      Spouse. A Spouse's consent is not required if it is established to the
      satisfaction of the Plan Administrator that the consent cannot be obtained
      because there is no Spouse, because the Spouse cannot be located, or
      because of such other circumstances as the Secretary of the Treasury may
      prescribe by regulations.

            (b) In default of such a designation and at any other time when
      there is no existing Death Beneficiary designated by the Participant, his
      Death Beneficiary shall be

                                       4
<PAGE>

      determined by the Plan Administrator in the following order: (i) his
      Spouse, (ii) his children, (iii) his parents, (iv) his siblings and (v)
      his estate. For purposes of the preceding sentence, "children," "parents"
      and "siblings" shall only include those individuals living at the time of
      the Participant's death and not the descendants of any child, parent or
      sibling, as applicable.

            (c) If a person designated by a Participant as his Death Beneficiary
      ceases to exist on or after the date of the Participant's death, the Death
      Beneficiary shall be that person's estate or such other person designated
      by that person pursuant to this definition.

      "EFFECTIVE DATE" means January 1, 1996; provided, however, that the Plan
shall be effective upon its execution for purposes of transfers pursuant to
Section 4.13 hereof. The effective date of this amendment and restatement of the
Plan is December 11, 2003.

      "ELIGIBLE EMPLOYEE" means an Employee who is eligible for participation in
the Plan in accordance with Article III hereof.

      "ELIGIBLE RETIREMENT PLAN" means any of the following plans that accepts a
Participant's Eligible Rollover Distribution: (a) an individual retirement
account described in Code Section 408(a); (b) an individual retirement annuity
described in Code Section 408(b); (c) an annuity plan described in Code Section
403(a); (d) a qualified trust described in Code Section 401(a); (e) for Eligible
Rollover Distributions made on and after January 1, 2002, an annuity contract
described in Code Section 403(b); and (f) for Eligible Rollover Distributions
made on and after January 1, 2002, an eligible plan under Code Section 457(b)
which is maintained by a State, political subdivision of a State, or any agency
or instrumentality of a State or political subdivision of a State and which
agrees to separately account for amounts transferred into such plan from this
Plan. However, in the case of an Eligible Rollover Distribution made before
January 1, 2002 to a surviving spouse, an Eligible Retirement Plan is an
individual retirement account described in Code Section 408(a) or an individual
retirement annuity described in Code Section 408(b).

      "ELIGIBLE ROLLOVER DISTRIBUTION" means:

            (a) any distribution of all or any portion of the Participant's
      Account, except (i) any distribution required under Code Section
      401(a)(9), (ii) any distribution if it and all other Eligible Rollover
      Distributions to the Participant during the calendar year are reasonably
      expected to total less than Two Hundred Dollars ($200), (iii) with respect
      to any distribution made prior to January 1, 2002, the portion of the
      distribution not includible in gross income (determined without regard to
      the exclusion for net unrealized appreciation described in Code Section
      402(e)(4)), (iv) effective January 1, 1999, any "hardship" distribution
      (as defined in Code Section 401(k)), (v) any distribution that is one of a
      series of periodic payments for a specified period of ten (10) or more
      years, and (vi) such other amounts specified in Treasury regulations or
      Internal Revenue Service rulings, notices or announcements issued under
      Code Section 402(c).

                                       5
<PAGE>

            (b) Notwithstanding (a) above, effective January 1, 2002, no portion
      of a distribution shall fail to be an Eligible Rollover Distribution
      merely because the portion consists of After-Tax Contributions not
      includible in gross income, provided, however, that such portion may be
      transferred only to an individual retirement account or annuity described
      in Code Section 408(a) or (b), or to a qualified defined contribution plan
      described in Code Sections 401(a) or 403(a), that agrees to separately
      account for amounts so transferred, including separately accounting for
      the portion of such distribution which is includible in gross income and
      the portion of such distribution which is not so includible.

      "EMPLOYEE" means:

            (a) Any person who is subject to the dominion and control of a
      Controlled Group Member with respect to the type, kind, nature and scope
      of services furnished and, to the extent required by Code Section 414(n),
      any person who is a "leased employee" of a Controlled Group Member.

            (b) For purposes of this definition, effective January 1, 1997, a
      "leased employee" means any person who, pursuant to an agreement between a
      Controlled Group Member and any other person ("leasing organization"), has
      performed services for the Controlled Group Member on a substantially
      full-time basis for a period of at least one year, and such services are
      performed under the primary direction and control of the Controlled Group
      Member. Contributions or benefits provided to a leased employee by the
      leasing organization that are attributable to services performed for a
      Controlled Group Member will be treated as provided by the Controlled
      Group Member. A leased employee will not be considered an Employee of a
      Controlled Group Member, however, if (i) leased employees do not
      constitute more than twenty percent (20%) of the Controlled Group Member's
      nonhighly compensated work force (within the meaning of Code Section
      414(n)(5)(C)(ii)) and (ii) such leased employee is covered by a money
      purchase pension plan maintained by the leasing organization that provides
      (A) a nonintegrated employer contribution rate of at least ten percent
      (10%) of Compensation, (B) immediate participation and (C) full and
      immediate vesting.

      "EMPLOYER" means any Controlled Group Member that adopts the Plan as
specified in Article XIII hereof. However, any person that adopts the Plan and
thereafter ceases to exist, ceases to be a member of the Controlled Group or
withdraws or is eliminated from the Plan, shall not thereafter be an Employer.
The Employers under the Plan are listed on Exhibit A.

      "EMPLOYER CONTRIBUTIONS" means Matching Employer Contributions as
described in Section 5.1 hereof, Qualified Nonelective Contributions as
described in Section 5.4 and Profit Sharing Contributions as described in
Section 5.6.

      "EMPLOYMENT COMMENCEMENT DATE" means the date on which an Employee first
performs an Hour of Service for a Controlled Group Member.

                                       6
<PAGE>

      "ENROLLMENT DATE" means:

            (a) Effective as of January 1, 2000, the first day of the first pay
      period of the first administratively feasible month following the month in
      which an Employee becomes an Eligible Employee.

            (b) Effective as of January 1, 2003, the first administratively
      practicable date following the date an Eligible Employee files (or is
      deemed to file) an application for enrollment with the Trustee pursuant to
      Article III hereof.

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

      "FEDEX CORP. STOCK" means the voting common stock of FedEx Corporation.

      "FEDEX STOCK FUND" means the Investment Fund described in Section 7.1
hereof, which is invested in FedEx Corp. Stock, and, as appropriate to meet the
needs of the Plan, cash.

      "FIDUCIARY" means any person who (a) exercises any discretionary authority
or discretionary control respecting management of the Plan or exercises any
authority or control respecting management or disposition of the Trust Fund, (b)
renders investment advice for a fee or other compensation, direct or indirect,
with respect to the Trust Fund, or has authority or responsibility to do so, or
(c) has any discretionary authority or discretionary responsibility in the
administration of the Plan or the Trust Fund. The term "Fiduciary" shall also
include any person to whom a Named Fiduciary delegates any of his fiduciary
responsibilities hereunder in accordance with the provisions of the Plan, as
long as such designation is in effect.

      "FULL-TIME EMPLOYEE" means any permanent Employee who is regularly
scheduled to work at least 40 hours per week.

      "HARDSHIP" means an immediate and heavy financial need on the part of a
Participant for:

            (a) expenses for medical care described in Code Section 213(d)
      previously incurred by the Participant, his Spouse, or any dependents of
      the Participant (as defined in Code Section 152), or expenses necessary
      for these persons to obtain such medical care;

            (b) costs directly related to the purchase (excluding mortgage
      payments) of a principal residence for the Participant;

            (c) the payment of tuition, related educational fees, and room and
      board expenses for the next twelve (12) months of post-secondary education
      for the Participant, his Spouse, his children or his dependents (as
      defined in Code Section 152);

                                       7
<PAGE>

            (d) payments necessary to prevent the eviction of the Participant
      from his principal residence or foreclosure on the mortgage of the
      Participant's principal residence; or

            (e) any other financial need that the Commissioner of Internal
      Revenue, through the publication of revenue rulings, notices and other
      documents of general applicability, may from time to time designate as a
      deemed immediate and heavy financial need as provided in Treasury
      Regulation Section 1.401(k)-1(d)(2)(iv)(C).

      "HIGHLY COMPENSATED EMPLOYEE" means:

            (a) effective January 1, 1997, for a particular Plan Year, any
      Employee:

                  (i) who, during the current or the preceding Plan Year, was at
            any time a 5-percent owner (as such term is defined in Code Section
            416(i)(1)), or

                  (ii) for the preceding Plan Year, received compensation from
            the Controlled Group in excess of $80,000 (as adjusted under Code
            Section 414(q)(1)), and was in the top-paid group of Employees for
            such Plan Year.

            (b) The term "Highly Compensated Employee" shall include a former
      Employee whose Termination of Employment occurred prior to the Plan Year
      and who was a Highly Compensated Employee for the Plan Year in which his
      Termination of Employment occurred or for any Plan Year ending on or after
      his fifty-fifth (55th) birthday.

            (c) For the purposes of this Section, the term "compensation" shall
      mean (i) for the period prior to January 1, 1998, the sum of an Employee's
      compensation under Section 5.8(c) hereof and the Employee's Before-Tax
      Contributions (subject to the limitation described in Subsection (b) of
      the definition of the term "Compensation" in this Article II) and elective
      or salary reduction contributions pursuant to a cafeteria plan under Code
      Section 125 or a tax-sheltered annuity under Code Section 403(b), and (ii)
      for the periods commencing on and after January 1, 1998, an Employee's
      compensation under Section 5.9(c) hereof (subject to the limitation
      described in Subsection (b) of the definition of the term "Compensation"
      in this Article II).

            (d) For purposes of this definition, the term "top-paid group of
      Employees" shall mean that group of Employees of the Controlled Group
      consisting of the top 20 percent (20%) of such Employees when ranked on
      the basis of compensation paid by the Controlled Group during the
      preceding Plan Year.

      "HOURS OF SERVICE" means:

            (a)) an hour for which an Employee is paid, or entitled to payment,
      by one or more Controlled Group Members for the performance of duties as
      an Employee and, with respect to a Temporary or Casual Employee, shall be
      determined in accordance with the

                                       8
<PAGE>

      provisions of 29 C.F.R. Section 2530.200b-2(a) and (b), which provisions
      are incorporated herein by reference.

            (b) For purposes of determining the Hours of Service of a Temporary
      or Casual Employee, Hours of Service shall be credited to eligibility
      computation periods and Plan Years in accordance with the provisions of 29
      C.F.R. Section 2530.200b-2(c), which provisions are incorporated herein by
      reference.

            (c) Anything in the Plan to the contrary notwithstanding, for
      purposes of determining the Hours of Service of a Temporary or Casual
      Employee, such Employee shall be credited with such Hours of Service not
      otherwise credited to him under the Plan as may be required by any
      applicable law.

      "INSTRUMENT OF ADOPTION" means the instrument referred to in Section 13.1
hereof by which a corporation or other business organization adopts the Plan and
designates a group or groups of its Employees as Covered Employees under the
Plan.

      "INVESTMENT COMMITTEE" means the investment committee appointed pursuant
to Section 9.8 hereof.

      "INVESTMENT FUNDS" means any of the funds provided for in Section 7.1
hereof.

      "MATCHING EMPLOYER CONTRIBUTIONS" means the contributions provided for in
Section 5.1 hereof or any other comparable matching contributions transferred to
the Plan pursuant to Section 4.13 hereof.

      "NAMED FIDUCIARY" shall have the same meaning assigned to such term under
ERISA Section 402.

      "ONE-YEAR BREAK IN SERVICE" or "1-YEAR BREAK IN SERVICE" means:

            (a) a twelve- (12-) month period beginning on an Employee's
      Severance Date and ending on the first anniversary of such Date, provided
      that during such period the Employee does not perform an Hour of Service.

            (b) If an Employee is absent from work for any period due to (i) the
      pregnancy of the Employee, (ii) the birth of a child of the Employee,
      (iii) the placement of a child with the Employee in connection with the
      adoption of such child by the Employee, or (iv) caring for a child for a
      period beginning immediately following the birth or placement of such
      child, such Employee shall not, solely by reason of such absence, be
      considered to have incurred a Period of Severance until the expiration of
      the twenty-four (24) consecutive month period commencing on the first day
      of such absence and shall incur a One-Year Break in Service if he does not
      perform an Hour of Service during the twelve (12) month period immediately
      following such twenty-four (24) month period.

                                       9
<PAGE>

            (c) Notwithstanding the provisions of Subsection (a) of this
      definition, with respect to an Employee who is a Temporary or Casual
      Employee, "One-Year Break in Service" means a Plan Year in which such
      Employee does not complete more than 500 Hours of Service.

            (d) Notwithstanding the provisions of Subsection (b) of this
      definition, if a Temporary or Casual Employee is absent from work for any
      period due to (1) the pregnancy of the Employee, (2) the birth of a child
      of the Employee, (3) the placement of a child of the Employee in
      connection with the adoption of such child by the Employee, or (4) caring
      for a child for a period beginning immediately following the birth or
      placement of such child, such Employee shall receive credit for Hours of
      Service equal to:

                  (i) the number of Hours of Service which otherwise would
            normally have been credited to him but for the absence; or

                  (ii) if the number of Hours of Service under Subparagraph (i)
            is not determinable, eight (8) Hours of Service per normal work day
            of the absence; provided, however, that no more than 501 Hours of
            Service shall be credited under this Subsection by reason of the
            absence. The Hours of Service shall be credited:

                        (A) in the Plan Year in which the absence from work
                  begins, if the Employee would be prevented from incurring a
                  1-Year Break in Service in such Year; or

                        (B) in the immediately following Plan Year.

      "PARTICIPANT" means:

            (a) an Eligible Employee who has become and continues to be a
      Participant in accordance with the provisions of Article III hereof, or
      any former Eligible Employee who was a Participant while employed as an
      Eligible Employee and who continues to have a vested interest in the Plan.

            (b) The term "Participant" shall also mean any Employee who was a
      participant in the Roadway Services, Inc. Stock Savings and Retirement
      Income Plan and Trust, as amended and restated, on December 31, 1995 and
      whose account balance in such plan has been transferred to the Plan after
      the Effective Date; provided, however, that such an Employee who does not
      otherwise meet the requirements for participation contained in Article III
      hereof shall not be entitled to make Before-Tax or After-Tax Contributions
      pursuant to Article IV hereof or to receive an allocation of Matching
      Employer Contributions, Qualified Nonelective Contributions or Profit
      Sharing Contributions pursuant to Article V hereof.

                                       10
<PAGE>

      "PART-TIME EMPLOYEE" means any permanent Employee who is regularly
scheduled to work a number of hours per week that is less than 40.

      "PERIOD OF SERVICE" means,

            (a) Except as provided in Subsection (c) or (e) of this definition,
      the total of an Employee's periods of Service commencing with his
      Employment Commencement Date (or Reemployment Commencement Date, if
      applicable) and ending on his next following Severance Date.

            (b) If an Employee, whose Period of Severance occurs as a result of
      a voluntary Termination of Employment, involuntary Termination of
      Employment, or retirement, performs an Hour of Service for a Controlled
      Group Member within the twelve (12) consecutive month period beginning on
      his Severance Date, the period beginning on his Severance Date and ending
      on the date on which he performs an Hour of Service shall be taken into
      account in determining his Period of Service hereunder. Notwithstanding
      the foregoing, if an Employee's Period of Severance occurs as a result of
      a voluntary Termination of Employment, an involuntary Termination of
      Employment or retirement during a period of absence referred to in
      Subsection (ii) of the definition of the term "Period of Severance," in
      this Article II, the period beginning on his Severance Date (i.e., the
      date of the voluntary Termination of Employment, the involuntary
      Termination of Employment or retirement) and ending on the date on which
      he performs an Hour of Service shall not be taken into account in
      determining his Period of Service unless he performs such Hour of Service
      within twelve (12) months of the date on which the Employee was first
      absent.

            (c) In the case of any Employee who incurs a Period of Severance
      that includes at least one 1-Year Break in Service and who later again
      becomes an Employee, any Period of Service before such Period of Severance
      (a "Prior Period of Service") shall not be taken into account in
      determining his Period of Service hereunder if at the beginning of such
      Period of Severance he did not have a nonforfeitable right to a benefit
      under the Plan and the length of his Period of Severance equals or exceeds
      five (5) years; and the length of his Prior Period of Service shall not
      include any time that is not required to be counted under this Section by
      reason of any prior Period of Severance that included at least one 1-Year
      Break in Service.

            (d) (Controlled Group Member) A Covered Employee's Period of Service
      shall include any employment with a Controlled Group Member who is not an
      Employer prior to the date that entity became a Controlled Group Member,
      provided that such Covered Employee was employed by such Controlled Group
      Member immediately prior to becoming a Covered Employee.

            (e) (Predecessor Employer) Notwithstanding anything in this
      definition to the contrary, an Employee's Period of Service shall include
      service with the Predecessor Employer prior to January 1, 1996.

                                       11

<PAGE>

                  (f) Notwithstanding anything in the Plan to the contrary, an
         Employee shall be credited with such Periods of Service not otherwise
         credited to him under the Plan as may be required by applicable law and
         no Employee shall be credited with a Period of Service more than once
         for the same period of employment unless otherwise required by
         applicable law.

         "PERIOD OF SEVERANCE" means, except as provided in Subsection (b) of
the definition of the term "One-Year Break in Service" in this Article II, the
period commencing with the earlier of (i) the date on which an Employee
separates from Service by reason of a voluntary Termination of Employment,
retirement, death or an involuntary Termination of Employment, or (ii) the date
twelve (12) months after the date an Employee remains absent from Service (with
or without pay) for any reason other than a voluntary Termination of Employment,
retirement, death or an involuntary Termination of Employment, and ending, if
applicable, with the date such Employee resumes Service.

         "PLAN" means the Roadway LLC 401(k) Stock Savings Plan, the terms and
provisions of which are hereinafter set forth, as the same may be amended from
time to time.

         "PLAN ADMINISTRATOR" means, as defined in ERISA Section 3(16)(A) and
Code Section 414(g), the Company for periods prior to January 1, 2003 and after
December 10, 2003, and the Administrative Committee, for the period January 1,
2003 through December 10, 2003. The Plan Administrator may delegate all or any
part of its powers, duties and authorities in such capacity (without ceasing to
be the Plan Administrator) as hereinafter provided. As used in this Plan, the
term "Plan Administrator" shall refer to the Company or Administrative
Committee, as applicable, or to any person to whom the Company or Administrative
Committee, as applicable, has delegated responsibility.

         "PLAN YEAR" means a twelve- (12-) month period beginning January 1 and
ending December 31 of each year.

         "PREDECESSOR EMPLOYER" means, for the periods prior to January 1, 1996,
Roadway Services, Inc. and any and all other corporations, trades and/or
businesses, the employees of which, together with Employees of the Company, were
required by Code Section 414 to be treated as if they were employed by a single
employer.

         "PRIOR PLANS" means the Roadway Services, Inc. Stock Savings and
Retirement Income Plan and Trust, as amended and restated, and the Roadway
Services, Inc. Stock Bonus Plan and Trust, as amended and restated, as each are
in effect on the Effective Date.

         "PROFIT SHARING CONTRIBUTIONS" means Employer contributions as
specified in Section 5.6 hereof.

         "QUALIFIED NONELECTIVE CONTRIBUTIONS" means contributions made by an
Employer pursuant to Section 5.4 hereof that (a) Participants eligible to share
therein may not elect to receive in cash until distribution from the Plan, (b)
are nonforfeitable when made, (c) are distributable only in accordance with the
distribution rules applicable to Before-Tax

                                       12
<PAGE>
Contributions and (d) are paid to the Trust Fund during the Plan Year for which
made or within the time following the close of such Plan Year which is
prescribed by law for the filing by an Employer of its federal income tax return
(including extensions thereof).

         "REEMPLOYMENT COMMENCEMENT DATE" means the date following an Employee's
One-Year Break in Service on which he again performs an Hour of Service for a
Controlled Group Member.

         "ROLLOVER CONTRIBUTIONS" means cash or other property acceptable to the
Plan Administrator received and held by the Trustee pursuant to the provisions
of Section 4.12 hereof.

         "SAFE HARBOR MATCHING CONTRIBUTION" means any Matching Employer
Contribution designated as a Safe Harbor Matching Contribution and made to the
Plan as provided in Section 5.3 hereof that meets the requirements of Code
Section 401(k)(12)(B). The contribution period for a Safe Harbor Matching
Contribution shall be each pay period.

         "SALARY REDUCTION AGREEMENT" means the arrangement provided for in
Section 4.1(a) hereof.

         "SERVICE" means employment with any Controlled Group Member.

         "SEVERANCE DATE" means the date on which an Employee's Period of
Severance commences.

         "SPOUSE" means the person to whom an Employee is legally married at the
specified time; provided, however, that a former Spouse may be treated as a
Spouse or surviving Spouse to the extent required under the terms of a
"qualified domestic relations order" (as such term is defined in Code Section
414(p)).

         "STOCK BONUS PORTION" means the portion of each Participant's Account
which is attributable to his former account balance in the Roadway Services,
Inc. Stock Bonus Plan and Trust, as amended and restated and transferred to the
Plan pursuant to Section 4.13 hereof.

         "TEMPORARY OR CASUAL EMPLOYEE" means any Employee who is employed on an
"on call" basis or does not have a regular work schedule. The term "Temporary or
Casual Employee" shall not include a Full-Time Employee or a Part-Time Employee.

         "TERMINATION OF EMPLOYMENT" means the earlier of a Participant's
cessation of active employment with the Controlled Group through a voluntary
termination, involuntary termination, death or retirement or the date that is
twelve (12) months after his last day worked with the Controlled Group.

         "TOTALLY AND PERMANENTLY DISABLED". A Participant shall be deemed to be
"Totally and Permanently Disabled" for purposes of the Plan if such Participant
terminated employment with the Controlled Group by reason of a bodily injury or
disease or mental disorder (as defined in

                                       13
<PAGE>
any long-term disability benefit contract of an Employer applicable to him) that
entitled him to disability benefits under such contract for at least twelve (12)
complete calendar months.

         "TRUST" means the trust established under the Trust Agreement for the
holding, investment, administration and distribution of the Trust Fund.

         "TRUST AGREEMENT" means the Trust Agreement between the Company and the
Trustee providing, among other things, for the Trust and the establishment of
the Trust Fund, as such Trust Agreement shall be amended from time to time, or
any trust agreement superseding the same. The Trust Agreement is hereby
incorporated into the Plan by reference.

         "TRUST FUND" means the assets held by the Trustee under the provisions
of the Trust Agreement, without distinction as to principal or interest.

         "TRUSTEE" means the trustee or trustees appointed pursuant to the Trust
Agreement, and any successor Trustee thereto.

         "VALUATION DATE" means (a) effective January 17, 2001, each day on
which the Trustee, the New York Stock Exchange and the National Association of
Securities Dealers Automated Quotation System are open for business, and (b)
effective January 1, 2003, "Valuation Date" means each day on which the New York
Stock Exchange is open for business.

         "YEAR OF SERVICE" means

         (a) except as provided in Subsection (b) of this definition, each
portion of an Employee's Period of Service that equals 365 days (whether or not
consecutive); and

         (b) with respect to an Employee who is a Temporary or Casual Employee,
any eligibility computation period during which the Employee completes at least
one thousand (1,000) Hours of Service. The Employee's initial eligibility
computation period shall be the twelve (12)-month period beginning on the
Employee's Employment Commencement Date or Reemployment Commencement Date, as
applicable. If the Employee does not complete at least one thousand (1,000)
Hours of Service during the initial eligibility computation period, the
eligibility computation period shall become the Plan Year, beginning with the
Plan Year next following the Employee's Employment Commencement Date or
Reemployment Commencement Date, as applicable. If an Employee completes one
thousand (1,000) Hours of Service during his initial eligibility computation
period, the Employee shall be treated as having completed one Year of Service on
the last day of the initial eligibility computation period. Effective January 1,
2003, if an Employee completes one thousand (1,000) Hours of Service during an
eligibility computation period other than his initial eligibility computation
period, the Employee shall be treated as having completed one Year of Service on
the date during such eligibility computation period on which he completes such
one thousand (1,000) Hours of Service.

                                       14
<PAGE>
                   ARTICLE III. ELIGIBILITY FOR PARTICIPATION

3.1 ELIGIBILITY TO PARTICIPATE.

         (a) Any Employee who was a Participant in the Plan on December 31,
2001, and who is a Covered Employee on January 1, 2002, shall be an Eligible
Employee and Participant under the Plan on such date.

         (b) Effective January 1, 2003,

                  (i) Each Covered Employee, other than a Temporary or Casual
         Employee, who does not become an Eligible Employee under (a) above
         shall become an Eligible Employee on the later of the date on which the
         Employee (A) becomes a Covered Employee, or (B) attains age twenty-one
         (21).

                  (ii) Each Covered Employee who is a Temporary or Casual
         Employee and who does not become an Eligible Employee under (a) above
         shall become an Eligible Employee on the latest of the date on which
         the Employee (A) becomes a Covered Employee, (B) attains age twenty-one
         (21), or (C) completes one thousand (1,000) Hours of Service during any
         eligibility computation period. An Employee's initial eligibility
         computation period shall be the twelve (12)-month period beginning on
         the Employee's Employment Commencement Date or Reemployment
         Commencement Date, as applicable. If the Employee does not complete at
         least one thousand (1,000) Hours of Service during his initial
         eligibility computation period, the eligibility computation period
         shall become the Plan Year, beginning with the Plan Year next following
         the Employee's Employment Commencement Date or Reemployment
         Commencement Date, as applicable. If an Employee completes one thousand
         (1,000) Hours of Service on a date during any eligibility computation
         period, the Employee shall be treated as having satisfied the service
         requirement of the foregoing clause (C) on such date.

         (c) Effective January 1, 2003,

                  (i) Each Eligible Employee shall become a Participant on the
         Enrollment Date next following the date on which the Eligible Employee
         files an application for enrollment with the Trustee in accordance with
         enrollment procedures established by the Plan Administrator.

                  (ii) Notwithstanding (i) above, each Employee who becomes a
         Covered Employee on or after January 1, 2000, automatically shall
         become a Participant on the Enrollment Date next following the
         ninetieth (90th) day after the date on which the Employee becomes an
         Eligible Employee, unless such Employee (A) elects to enroll in the
         Plan on an earlier Enrollment Date pursuant to (i) above, or (B)
         affirmatively declines to enroll in the Plan (in such form, in such
         manner and at such time as the Plan Administrator shall require).

                                       15
<PAGE>
3.2 DURATION OF PARTICIPATION.

         An Employee or former Employee shall remain a Participant so long as
(a) he meets the requirements of Section 3.1 hereof, or (b) a portion of the
Trust Fund is credited to his Account and held for his benefit by the Trustee.
However, a Participant who ceases to meet the requirements of Section 3.1 hereof
may make no further After-Tax Contributions and may have no Before-Tax
Contributions or Matching Employer Contributions made for him until he again
becomes an Eligible Employee and he again enrolls as a contributing Participant
pursuant to Section 3.1 hereof. If an Eligible Employee ceases to be an Eligible
Employee and later again becomes an Eligible Employee, he may again, subject to
the foregoing limitations of this Section, participate in the Plan on the day he
so again becomes an Eligible Employee.

3.3 PARTICIPATION DUE TO ADMINISTRATIVE ERROR.

         Any Employee of an Employer who was allowed to participate in the Plan
through an administrative error but who is not a Covered Employee shall be
considered an Eligible Employee for purposes of his initial participation in the
Plan, but shall cease to be considered an Eligible Employee (and, therefore,
shall cease to meet the requirements of Section 3.1 hereof) on the date such
error is discovered. Notwithstanding the foregoing, this Section shall only
apply to an Employee who is not a Highly Compensated Employee.

                      ARTICLE IV. PARTICIPANT CONTRIBUTIONS

4.1 AMOUNT OF BEFORE-TAX AND AFTER-TAX CONTRIBUTIONS.

         (a) Upon enrollment pursuant to Section 3.1(c) hereof, a Participant
may agree pursuant to a Salary Reduction Agreement to have his Employer make
Before-Tax Contributions to the Trust of up to (1) fourteen and one half percent
(14 1/2%), for periods prior to March 1, 2002, or (ii) twenty-five percent
(25%), for periods after February 28, 2002, of his Compensation (in 1/2%
increments) through equal pay period reductions. Effective as of January 1,
2000, notwithstanding the previous sentence, in the event that an Eligible
Employee is automatically enrolled in the Plan pursuant to Section 3.1(c)(ii)
hereof, such Eligible Employee shall be deemed to have elected to have
Before-Tax Contributions made to the Plan on his behalf in accordance with this
Section at the rate of 3% of his Compensation through equal pay period
reductions.

         (b) Upon enrollment pursuant to Section 3.1(c) hereof, a Participant
may elect to make After-Tax Contributions to the Trust of up to four and a half
percent (4 1/2%) of his Compensation (in 1/2% increments) through equal pay
period reductions.

         (c) Notwithstanding the foregoing, if a Participant's Before-Tax
Contributions and/or After-Tax Contributions must be reduced to comply with the
requirements of Section 4.7 or 4.8 hereof, as applicable, or the requirements of
applicable law, his Before-Tax Contributions and/or After-Tax Contributions as
so reduced will be the maximum percentages of his Compensation permitted by such
Section or law and the increment requirements listed above shall not apply.

                                       16
<PAGE>
4.2 MAXIMUM AND MINIMUM CONTRIBUTIONS.

         (a) Subject to Subsection (b) below, a Participant's Before-Tax
Contributions and/or After-Tax Contributions with respect to any pay period must
equal at least one percent (1%) (one and one-half percent (1 1/2%) for periods
prior to January 1, 2003) of his Compensation and may not, in the aggregate,
exceed twenty-five percent (25%) (fourteen and one half percent (14 1/2%) for
periods prior to March 1, 2002) of his Compensation. The Plan Administrator
shall have the discretion to reduce or suspend the Before-Tax Contributions
and/or to reduce, suspend or increase After-Tax Contributions of any Employee to
satisfy any of the limits expressed in this Article.

         (b) Effective for Plan Years beginning on and after January 1, 2003,
all Participants who are eligible to make Before-Tax Contributions hereunder and
who have attained age 50 before the close of the Plan Year shall be eligible to
make "catch-up contributions" in accordance with, and subject to the limitations
of, Code Section 414(v). Such catch-up contributions shall not be taken into
account for purposes of the provisions of the Plan implementing the required
limitations of Code Sections 402(g) and 415. The Plan shall not be treated as
failing to satisfy the provisions of the Plan implementing the requirements of
Code Section 401(k)(3), 401(k)(12), 410(b) or 416, as applicable, by reason of
Participants making such catch-up contributions.

4.3 PAYMENTS TO TRUSTEE.

         Effective as of February 3, 1997, Before-Tax Contributions and
After-Tax Contributions that are made by or for a Participant shall be
transmitted by the Employers to the Trustee as soon as practicable, but in no
event later than fifteen (15) business days after the end of the calendar month
in which such Contributions are withheld or would otherwise have been paid to
the Participant.

4.4 CHANGES IN CONTRIBUTIONS.

         The percentage or percentages designated or deemed to have been
designated by a Participant pursuant to Section 4.1 hereof shall continue in
effect, notwithstanding any changes in the Participant's Compensation. Effective
as of January 1, 2000, a Participant may, however, in accordance with the
percentages permitted by Sections 4.1 and 4.2(a) hereof, change the percentage
of his Before-Tax Contributions and/or his After-Tax Contributions effective as
soon as practicable after the Participant files a notice of such change with the
Plan Administrator at the time and in the manner prescribed by the Plan
Administrator. Notwithstanding the foregoing, the Plan Administrator may,
pursuant to uniform nondiscriminatory procedures, increase the Participant's
After-Tax Contributions for the remainder of the Plan Year if such Participant's
Before-Tax Contributions are ceased as a result of the application of Section
4.6 hereof.

                                       17
<PAGE>
4.5 SUSPENSION AND RESUMPTION OF CONTRIBUTIONS.

         (a) Upon prior notice filed with the Plan Administrator, within such
notice period established by the Plan Administrator, a Participant may at any
time suspend his Before-Tax Contributions and/or After-Tax Contributions
effective with the start of the next payroll period following the expiration of
such notice period. A Participant who has so suspended his Before-Tax
Contributions and/or After-Tax Contributions may, upon prior notice filed with
the Plan Administrator, within such notice period established by the Plan
Administrator, resume making such Contributions as of the first full pay period
following the expiration of such notice period if he is an Eligible Employee on
such date.

         (b) Notwithstanding (a) above, for periods prior to January 1, 2003, a
suspension of Before-Tax Contributions and/or After-Tax Contributions must be
made for not less than one (1) calendar quarter. If a Participant suspended his
Before-Tax Contributions and/or After-Tax Contributions prior to January 1,
2003, his mandatory suspension period will expire on the earlier of (i) the date
the mandatory suspension period would have ended without regard to this
provision, or (ii) January 1, 2003.

4.6 EXCESS DEFERRALS.

         (a) Notwithstanding the foregoing provisions of this Article (except
Section 4.2(b) hereof), a Participant's Before-Tax Contributions for any taxable
year of such Participant shall not exceed the dollar limitation in effect under
Code Section 402(g) for such taxable year. Except as otherwise provided in this
Section, a Participant's Before-Tax Contributions for purposes of this Section
shall include (i) any employer contribution made under any qualified cash or
deferred arrangement as defined in Code Section 401(k) to the extent not
includible in gross income for the taxable year under Code Section 402(e)(3)
(determined without regard to Code Section 402(g)), (ii) any employer
contribution to the extent not includible in gross income for the taxable year
under Code Section 402(h)(1)(B) (determined without regard to Code Section
402(g)) and (iii) any employer contribution to purchase an annuity contract
under Code Section 403(b) under a salary reduction agreement within the meaning
of Code Section 3121(a)(5)(D).

         (b) In the event that a Participant's Before-Tax Contributions exceed
the amount described in Subsection (a) of this Section (hereinafter called
"excess deferrals"), such excess deferrals (and any income allocable thereto)
shall be distributed to the Participant by April 15 following the close of the
taxable year in which such excess deferrals occurred if (and only if), by April
15 of such taxable year the Participant (i) allocates the amount of such excess
deferrals among the plans under which the excess deferrals were made and (ii)
notifies the Plan Administrator of the portion allocated to this Plan.

         (c) In the event that a Participant's Before-Tax Contributions under
this Plan exceed the amount described in Subsection (a) of this Section, or in
the event that a Participant's Before-Tax Contributions under this Plan do not
exceed such amount but he allocates a portion of his excess deferrals to his
Before-Tax Contributions made to this Plan, Matching Employer Contributions, if
any, made with respect to such Before-Tax Contributions (and any income

                                       18
<PAGE>
allocable thereto) shall be applied to reduce subsequent Matching Employer
Contributions required under the Plan.

4.7 EXCESS BEFORE-TAX CONTRIBUTIONS.

         (a) Notwithstanding the provisions of this Article (other than Section
4.14 hereof) and Article V hereof, for any Plan Year,

                  (i) the actual deferral percentage (as defined in Subsection
         (b) of this Section) for the group of Highly Compensated Eligible
         Employees (as defined in Subsection (c) of this Section) for such Plan
         Year shall not exceed the actual deferral percentage for all other
         Eligible Employees for such Plan Year multiplied by 1.25, or

                  (ii) the excess of the actual deferral percentage for the
         group of Highly Compensated Eligible Employees for such Plan Year over
         the actual deferral percentage for all other Eligible Employees for
         such Plan Year shall not exceed two (2) percentage points, and the
         actual deferral percentage for the group of Highly Compensated Eligible
         Employees for such Plan Year shall not exceed the actual deferral
         percentage for all other Eligible Employees for such Plan Year
         multiplied by two (2). If two or more plans that include cash or
         deferred arrangements are considered as one plan for purposes of Code
         Sections 401(a)(4) or 410(b), such arrangements included in such plans
         shall be treated as one arrangement for the purposes of this
         Subsection; and if any Highly Compensated Eligible Employee is a
         participant under two or more cash or deferred arrangements of the
         Controlled Group, all such arrangements shall be treated as one cash or
         deferred arrangement for purposes of determining the deferral
         percentage with respect to such Highly Compensated Eligible Employee.

         (b) For the purposes of this Section, the actual deferral percentage
for a specified group of Eligible Employees for a Plan Year shall be the average
of the ratios (calculated separately for each Eligible Employee in such group)
of (i) the amount of Before-Tax Contributions and, at the election of an
Employer, any Qualified Nonelective Contributions, actually paid to the Trust
for each such Eligible Employee for such Plan Year (including any "excess
deferrals" described in Plan Section 4.6(b) hereof) to (ii) the Eligible
Employee's compensation for such Plan Year. For the purposes of this Subsection,
the term "compensation" shall mean the sum of an Eligible Employee's
compensation under Section 5.9(c) hereof and his Before-Tax Contributions
(subject to the limitations described in Subsection (b) of the definition of the
term "Compensation" in Article II hereof).

         (c) For the purposes of this Section, the term "Highly Compensated
Eligible Employee" for a particular Plan Year shall mean any Highly Compensated
Employee who is an Eligible Employee.

         (d) In the event that excess contributions (as such term is hereinafter
defined) are made to the Trust for any Plan Year, then, prior to March 15 of the
following Plan Year, such excess contributions (and any income allocable thereto
through the end of the Plan Year determined in accordance with Section 7.4
hereof) shall be distributed to the Highly

                                       19
<PAGE>
Compensated Eligible Employees on the basis of the amount of Before-Tax
Contributions made by or on behalf of such Highly Compensated Eligible
Employees. Effective January 1, 1997, for the purposes of this Subsection, the
term "excess contributions" shall mean, for any Plan Year, the excess of (i) the
aggregate amount of Before-Tax Contributions actually paid to the Trust on
behalf of Highly Compensated Eligible Employees for such Plan Year over (ii) the
maximum amount of such Before-Tax Contributions permitted for such Plan Year
under Subsection (a) of this Section, determined by reducing Before-Tax
Contributions made on behalf of Highly Compensated Eligible Employees in order
of their actual deferral percentages beginning with the highest of such
percentages.

         (e) Matching Employer Contributions made with respect to a
Participant's excess contributions (and any income allocable thereto) shall be
applied to reduce subsequent Matching Employer Contributions required under the
Plan.

4.8 EXCESS MATCHING EMPLOYER AND AFTER-TAX CONTRIBUTIONS.

         (a) Notwithstanding the foregoing provisions of this Article or the
provisions of Article V hereof, for any Plan Year the contribution percentage
(as defined below) for the group of Highly Compensated Eligible Employees (as
defined in Section 4.7(c) hereof) for such Plan Year shall not exceed the
greater of (i) one hundred twenty-five percent (125%) of the contribution
percentage for all other Eligible Employees, or (ii) the lesser of two hundred
percent (200%) of the contribution percentage for all other Eligible Employees
or the contribution percentage for all other Eligible Employees plus two (2)
percentage points. If two or more plans of the Controlled Group to which
matching employer contributions, employee after-tax contributions or Before-Tax
Contributions are made are treated as one plan for purposes of Code Section
410(b), such plans shall be treated as one plan for purposes of this Subsection;
and if a Highly Compensated Eligible Employee participates in two or more plans
of the Controlled Group to which such contributions are made, all such
contributions shall be aggregated for purposes of this Subsection.

         (b) For the purposes of this Section, the contribution percentage for a
specified group of Eligible Employees for a Plan Year shall be the average of
the ratios (calculated separately for each Eligible Employee in such group) of
(i) the sum of the Matching Employer Contributions, After-Tax Contributions and,
at the election of an Employer, any Qualified Nonelective Contributions paid
under the Plan by or on behalf of each such Eligible Employee for such Plan Year
to (ii) the Eligible Employee's compensation (as defined in Section 4.7(b)
hereof) for such Plan Year.

         (c) Notwithstanding Subsection (a) above, the following special rules
apply for any Plan Year in which the limitations on Before-Tax Contributions
described in Section 4.7 hereof are deemed satisfied, as provided in Section
4.14 hereof:

                  (i) If the limitations on Matching Employer Contributions
         described in this Section 4.8 are also deemed satisfied for the Plan
         Year, as provided in Section 4.14 hereof, the Employer may elect to
         exclude Safe Harbor Matching Employer made on an

                                       20
<PAGE>
         Eligible Employee's behalf for the Plan Year in determining the
         numerator of the Eligible Employee's "contribution percentage" for such
         Plan Year.

                  (ii) If the limitations on Matching Employer Contributions
         described in this Section 4.8 are not deemed satisfied for the Plan
         Year, as provided in Section 4.14 hereof, the Sponsor may elect to
         exclude Safe Harbor Matching Contributions made on an Eligible
         Employee's behalf for the Plan Year in an amount up to four percent of
         the Eligible Employee's compensation (as defined in Section 4.7(b)
         hereof) for the Plan Year in determining the numerator of the Eligible
         Employee's "contribution percentage" for such Plan Year.

         (d) In the event that excess aggregate contributions (as such term is
hereinafter defined) are made to the Trust for any Plan Year, then, prior to
March 15 of the following Plan Year, such excess aggregate contributions (and
any income allocable thereto through the end of the Plan Year determined in
accordance with Section 7.4 hereof) shall be forfeited (if forfeitable) and
shall be applied to reduce subsequent Matching Employer Contributions required
under the Plan or (if not forfeitable) shall be distributed to the Highly
Compensated Eligible Employees on the basis of the amount of Matching Employer
Contributions, After-Tax Contributions and Qualified Nonelective Contributions
made on behalf of such Highly Compensated Eligible Employees. Effective January
1, 1997, for purposes of this Subsection, the term "excess aggregate
contributions" shall mean, for any Plan Year, the excess of (i) the aggregate
amount of the Matching Employer Contributions, After-Tax Contributions and
Qualified Nonelective Contributions actually paid to the Trust by or on behalf
of Highly Compensated Eligible Employees for such Plan Year over (ii) the
maximum amount of such Matching Employer Contributions, After-Tax Contributions
and Qualified Nonelective Contributions permitted for such Plan Year under
Subsection (a) of this Section, determined by reducing Matching Employer
Contributions, After-Tax Contributions and Qualified Nonelective Contributions
made on behalf of Highly Compensated Eligible Employees in order of their
contribution percentages (as defined in Subsection (b) of this Section)
beginning with the highest of such percentages.

         (e) The determination of excess aggregate contributions under this
Section shall be made after (i) first determining the excess deferrals under
Section 4.6 hereof, and (ii) then determining the excess contributions under
Section 4.7 hereof.

4.9 MULTIPLE USE OF THE ALTERNATIVE LIMITATION.

         (a) Notwithstanding the foregoing provisions of this Article or the
provisions of Article V, if, after the application of Sections 4.6, 4.7 and 4.8
hereof, the sum of the actual deferral percentage and the contribution
percentage for the group of Highly Compensated Eligible Employees (as defined in
Section 4.7(c)) exceeds the aggregate limit (as defined in Subsection (b) of
this Section), then the contributions made for such Plan Year for Highly
Compensated Eligible Employees will be reduced so that the aggregate limit is
not exceeded. Such reductions shall be made first in After-Tax Contributions
(but only to the extent that they are not matched by Matching Employer
Contributions) then in Before-Tax Contributions (but only to the extent that
they are not matched by Matching Employer Contributions) and then in Matching
Employer Contributions. Reductions in contributions shall be made in the manner

                                       21
<PAGE>
provided in Section 4.7 or 4.8 hereof, as applicable. The amount by which each
such Highly Compensated Eligible Employee's contributions are reduced shall be
treated as an excess contribution or an excess aggregate contribution under
Section 4.7 or 4.8 hereof, as applicable. For the purposes of this Section, the
actual deferral percentage and contribution percentage of the Highly Compensated
Eligible Employees are determined after any reductions required to meet those
tests under Sections 4.7 and 4.8 hereof. Notwithstanding the foregoing
provisions of this Section, no reduction shall be required by this Subsection if
either (i) the actual deferral percentage of the Highly Compensated Eligible
Employees does not exceed 1.25 multiplied by the actual deferral percentage of
the non-Highly Compensated Eligible Employees, or (ii) the contribution
percentage of the Highly Compensated Eligible Employees does not exceed 1.25
multiplied by the contribution percentage of the non-Highly Compensated Eligible
Employees.

         (b) For purposes of this Section, the term "aggregate limit" means the
sum of (i) one hundred twenty-five percent (125%) of the greater of (A) the
actual deferral percentage of the non-Highly Compensated Eligible Employees for
the Plan Year, or (B) the contribution percentage of the non-Highly Compensated
Eligible Employees for the Plan Year, and (ii) the lesser of (A) two hundred
percent (200%) of, or (B) two (2) plus the lesser of such actual deferral
percentage or contribution percentage. If it would result in a larger aggregate
limit, the word "lesser" is substituted for the word "greater" in part (i) of
this Subsection, and the word "greater" is substituted for the word "lesser" in
part (ii)(B) of this Subsection.

         (c) The multiple-use test described in this Section 4.9 and Treasury
Regulation Section 1.401(m)-2 shall not apply for Plan Years beginning on and
after January 1, 2002.

4.10 MONITORING PROCEDURES.

         (a) In order to ensure that at least one of the actual deferral
percentages specified in Section 4.7(a) hereof and at least one of the
contribution percentages specified in Section 4.8(a) hereof and the aggregate
limit specified in Section 4.9(b) hereof are satisfied for each Plan Year, the
Plan Administrator shall monitor (or cause to be monitored) the amount of
Before-Tax Contributions, After-Tax Contributions and Matching Employer
Contributions being made to the Plan by or for each Eligible Employee during
each Plan Year. In the event that the Plan Administrator determines that neither
of such actual deferral percentages, neither of such contribution percentages or
such aggregate limit will be satisfied for a Plan Year, and if the Plan
Administrator in its sole discretion determines that it is necessary or
desirable, the Before-Tax Contributions, After-Tax Contributions and/or the
Matching Employer Contributions made thereafter by or for each Highly
Compensated Eligible Employee (as defined in Section 4.7(c) hereof) may be
reduced (pursuant to non-discriminatory rules adopted by the Plan Administrator)
to the extent necessary to decrease the actual deferral percentage and/or the
contribution percentage for Highly Compensated Eligible Employees for such Plan
Year to a level that satisfies either of the actual deferral percentages, either
of the contribution percentages and/or the aggregate limit. In the case of
Section 4.8 hereof, such reductions shall be made first in the After-Tax
Contributions, if any, to be made by the Highly Compensated Eligible Employees.

         (b) In order to ensure that excess deferrals (as such term is defined
in Section 4.6(b) hereof) shall not be made to the Plan for any taxable year for
any Participant, the Plan

                                       22
<PAGE>
Administrator shall monitor (or cause to be monitored) the amount of Before-Tax
Contributions being made to the Plan for each Participant during each taxable
year and may take such action (pursuant to non-discriminatory rules adopted by
the Plan Administrator) to prevent Before-Tax Contributions made for any
Participant under the Plan for any taxable year from exceeding the maximum
amount applicable under Section 4.6(a) hereof.

         (c) The actions permitted by this Section are in addition to, and not
in lieu of, any other actions that may be taken pursuant to other Sections of
the Plan or that may be permitted by applicable law or regulation in order to
ensure that the limitations described in Sections 4.6 through 4.9 hereof are
met.

4.11 TESTING PROCEDURES.

         In applying the limitations set forth in Sections 4.7, 4.8 and 4.9
hereof, the Plan Administrator may, at its option, utilize such testing
procedures as may be permitted under Code Sections 401(a)(4), 401(k), 401(m) or
410(b), including, without limitation, (a) aggregation of the Plan with one or
more other qualified plans of the Controlled Group, (b) restructuring of the
Plan or any other qualified plan of the Controlled Group into one or more
component plans, (c) inclusion of qualified matching contributions, qualified
nonelective contributions or elective deferrals described in, and meeting the
requirements of, Treasury Regulations under Code Sections 401(k) and 401(m) to
any other qualified plan of the Controlled Group in applying the limitations set
forth in Sections 4.7, 4.8 and 4.9 hereof, (d) effective January 1, 1999,
exclusion of all Eligible Employees (other than Highly Compensated Eligible
Employees) who have not met the minimum age and service requirements of Code
Section 410(a)(1)(A) in applying the limitations set forth in Sections 4.7, 4.8
and 4.9 hereof, or (e) any permissible combination thereof.

4.12 ROLLOVER CONTRIBUTIONS.

         (a) Effective as of January 1, 1999, the Trustee shall, at the
direction of the Plan Administrator, receive and thereafter hold and administer
as a part of the Trust Fund for a Covered Employee cash or other property
acceptable to the Plan Administrator the following as Rollover Contributions:

         (b) For Plan Years beginning before January 1, 2002, amounts which
shall have been distributed to the Covered Employee (a) from a trust (which is
described in Code Section 401(a) and exempt from tax under Code Section 501(a))
under another plan in which the Covered Employee was a participant, or (b) in a
distribution which constitutes an "eligible rollover distribution" under Code
Section 401(a)(31) or Code Section 402(c)(4) other than a distribution from an
individual retirement account described in Code Section 408(d)(3)(A)(ii).

         (c) Effective for Plan Years beginning on and after January 1, 2002,
(i) a direct rollover of an eligible rollover distribution from (A) a qualified
plan described in Code Section 401(a) or 403(a), including after-tax employee
contributions, or (B) an annuity contract described in Code Section 403(b),
excluding after-tax employee contributions, (ii) a Covered Employee contribution
of an eligible rollover distribution from (A) a qualified plan described in

                                       23
<PAGE>
Code Section 401(a) or 403(a), or (B) an annuity contract described in Code
Section 403(b); or (iii) a direct rollover or a Covered Employee contribution of
an eligible rollover distribution from an eligible plan under Code Section
457(b) maintained by a State, political subdivision of a State, or any agency or
instrumentality of a State or political subdivision of a State. The Plan shall
not accept a Rollover Contribution from an individual retirement account or
annuity described in Code Section 408(a) or 408(b).

         (d) The Plan Administrator may impose such requirements as it deems
necessary to insure, to the extent possible, that the amounts proposed to be
transferred hereto comply with the requirements of this Section 4.12.

4.13 TRANSFERS TO THIS PLAN FROM OTHER PLANS.

         The Trustee shall, at the direction of the Company, receive and
thereafter hold and administer as a part of the Trust Fund for a Participant all
cash and other property which may be transferred to the Trustee from a trust
held under another plan in which the Participant was a participant, which meets
the requirements of Code Sections 401(a) and 501(a) ("a qualified trust") and
which is not subject to the survivor annuity requirements of Code Section
401(a)(11).

4.14 DEEMED SATISFACTION OF THE LIMITATIONS ON BEFORE-TAX CONTRIBUTIONS AND
     MATCHING EMPLOYER CONTRIBUTIONS OF HIGHLY COMPENSATED EMPLOYEES.

         (a) Notwithstanding any other provision of this Article IV to the
contrary, if the Employer satisfies the safe harbor notice requirements
described in Section 4.15 hereof, and makes the Safe Harbor Matching
Contribution described in Section 5.3 hereof for a Plan Year beginning on or
after January 1, 2003, the Plan shall be deemed to have satisfied the
limitations on Before-Tax-Contributions of Highly Compensated Employees
described in Section 4.7 hereof with respect to Eligible Employees who have
completed at least one Year of Service.

         (b) If the Plan also satisfies the requirements of Code Section
401(m)(11) and regulations issued thereunder for a Plan Year beginning on or
after January 1, 2003, the Plan shall be deemed to have satisfied the
limitations on Matching Employer Contributions of Highly Compensated Employees
described in Section 4.8 hereof with respect to Eligible Employees who have
completed at least one Year of Service. The Plan shall not be deemed to have
satisfied the limitations on Matching Employer Contributions of Highly
Compensated Employees for any such Plan Year if the Employer or any other
Controlled Group Member maintains a plan under which "matching contributions" on
behalf of Highly Compensated Employees are made at a rate greater than the rate
provided under the Plan and such "matching contributions" must be aggregated
with Matching Employer Contributions made on behalf of any Highly Compensated
Employee under the Plan.

4.15 NOTICE REQUIREMENTS FOR SAFE HARBOR MATCHING CONTRIBUTIONS.

         (a) For each Plan Year in which the Employer makes a Safe Harbor
Matching Contribution on behalf of its Eligible Employees, the Employer shall
provide such Eligible Employees a notice describing (i) the formula used for
determining Safe Harbor Matching

                                       24
<PAGE>
Contributions; (ii) any other Employer Contributions available under the Plan
and the requirements that must be satisfied to receive an allocation of such
Employer Contributions; (iii) the type and amount of Compensation that may be
deferred or contributed under the Plan as Before-Tax Contributions or After-Tax
Contributions, respectively; (iv) how to elect to make a Before-Tax Contribution
and After-Tax Contribution under the Plan and the periods in which such
elections may be made or changed; and (v) the withdrawal and vesting provisions
applicable to Contributions. The descriptions required in items (ii) through (v)
may be provided by cross-references to the relevant section(s) of an up-to-date
summary plan description.

         (b) The foregoing notice shall be written in a manner calculated to be
understood by the average Eligible Employee. The Employer shall provide such
notice within a reasonable period before the beginning of the Plan Year (or, in
the Plan Year in which an Employee becomes an Eligible Employee, within a
reasonable period before the Employee becomes an Eligible Employee).

                        ARTICLE V. EMPLOYER CONTRIBUTIONS

5.1 AMOUNT OF MATCHING EMPLOYER CONTRIBUTIONS.

         Subject to the provisions of the Plan, each Employer shall, and to the
extent it lawfully may, contribute to the Trust on account of each Plan Year an
amount of cash or Company Stock equal in value to one hundred percent (100%) of
the Before-Tax and After-Tax Contributions described in Section 5.2 hereof.
Subject to Section 5.3(a) hereof, the Company may provide for Matching Employer
Contributions to be made in whole or partial payments, at any time during such
Plan Year or within the time following the close of such Year that is prescribed
by law for filing its federal income tax return (including extensions thereof).
Notwithstanding any provision of the Plan to the contrary, in no event shall an
Employee's Matching Employer Contributions on account of any Plan Year exceed
the maximum amount deductible for such Plan Year for purposes of federal taxes
on income under applicable provisions of the Code, and such Contributions shall
be made on the condition that they are deductible under applicable provisions of
the Code.

5.2 ALLOCATION OF MATCHING EMPLOYER CONTRIBUTIONS.

         (a) (i) Effective as of January 1, 1999, each Participant who is a
         Covered Employee of a particular Employer and who has completed at
         least one Year of Service shall receive an allocation to his Account of
         that Employer's Matching Employer Contributions with respect to any
         Plan Year (for Plan Years beginning on and after January 1, 2003, any
         pay period) which allocation shall be made only with respect to the
         Participant's Before-Tax Contributions and After-Tax Contributions
         that:

                           (A) do not exceed, in the aggregate, four and
                  one-half percent (4 1/2) of his Compensation while an active
                  Covered Employee during that Plan Year or pay period, as the
                  case may be; and

                                       25
<PAGE>
                           (B) are earned after his completion of one Year of
                  Service and prior to his Termination of Employment with his
                  Employer.

                  (ii) For purposes of this Subsection, Matching Employer
         Contributions shall be applied pro-rata to a Participant's After-Tax
         Contributions and Before-Tax Contributions.

         (b) As of each Valuation Date, Matching Employer Contributions
(including earnings and appreciation thereon) that have been made pursuant to
Section 5.1 hereof for pay periods ending on or prior to such Valuation Date
shall be allocated to the Accounts of Participants as provided in Subsection (a)
of this Section.

5.3 SAFE HARBOR MATCHING CONTRIBUTIONS.

         (a) Effective for Plan Years beginning after December 31, 2002, if the
notice requirements of Section 4.15 hereof are satisfied, Matching Employer
Contributions made pursuant to Section 5.1 hereof and allocated pursuant to
5.2(a) hereof shall be designated as Safe Harbor Matching Contributions. For
purposes of this Section 5.3, Safe Harbor Matching Contributions shall be
applied pro rata to a Participant's Before-Tax Contributions and After-Tax
Contributions. Safe Harbor Matching Contributions shall be made to the Plan on
or before the last day of the calendar quarter following the calendar quarter
for which such Safe Harbor Matching Contributions become payable.

         (b) The Company hereby elects, pursuant to Code Section 410(b)(4), to
apply Code Section 410(b) separately to the portion of the Plan that benefits
only Employees who satisfy the age and service conditions of the Plan that are
lower than the greatest minimum age and service conditions permitted under Code
Section 410(a). Accordingly, no Safe Harbor Matching Contributions shall be made
on behalf of Eligible Employees who have not completed at least one (1) Year of
Service, and Before-Tax Contributions made on behalf of such Eligible Employees
shall satisfy the requirements of Section 4.7 hereof.

5.4 QUALIFIED NONELECTIVE CONTRIBUTIONS.

         For any Plan Year, an Employer, in its discretion, may make a Qualified
Nonelective Contribution (a) in such amount, (b) for such Participants and (c)
in such proportions among such Participants as such Employer shall determine.
Qualified Nonelective Contributions may be made in cash or Company Stock and
shall be made within the time prescribed by law for making Qualified Nonelective
Contributions. Each Employer shall designate to the Trustee the Plan Year for
which and the Participants for whom any Qualified Nonelective Contribution is
made.

5.5 ALLOCATION OF QUALIFIED NONELECTIVE CONTRIBUTIONS.

         Qualified Nonelective Contributions shall be allocated to the Accounts
of Participants who are designated by an Employer as eligible to share therein
in such amounts as such Employer directs.

                                       26
<PAGE>
5.6 PROFIT SHARING CONTRIBUTIONS.

         Each Employer may, in its discretion, contribute to the Trust on
account of each Plan Year an amount determined by such Employer as its Profit
Sharing Contribution for such year. The Profit Sharing Contribution of each
Employer may be made in cash or Company Stock and shall be made during the Plan
Year for which made or within the time following the close of such Plan Year
which is prescribed by law for the filing by each such Employer of its federal
income tax return (including extensions thereof).

5.7 ALLOCATION OF PROFIT SHARING CONTRIBUTIONS.

         Each Employer's Profit Sharing Contributions made for a Plan Year shall
be allocated and credited to the Accounts of those Employees of the Employer who
either (a) are Participants on the last day of such Plan Year or (b) terminated
employment with the Controlled Group during such Plan Year by reason of death or
Total and Permanent Disability. There shall be credited to the Account of each
such Employee as of the last day of each Plan Year, a portion of the Profit
Sharing Contribution (if any) of such Employee's Employer for such Plan Year
equal to either (1) the amount of such Profit Sharing Contribution multiplied by
a fraction, the numerator of which is the Employee's Compensation for such Plan
Year and the denominator of which is the total Compensation for such Plan Year
of all Employees of such Employer described in the preceding sentence or (2) at
the Employer's discretion, the amount of such Profit Sharing Contribution
divided by the total number of Employees described in (a) and (b) above.

5.8 RETURN OF CONTRIBUTIONS TO EMPLOYERS.

         (a) Except as specifically provided in this Section or in the other
Sections of the Plan, the Trust Fund shall never inure to the benefit of the
Employers and shall be held for the exclusive purposes of providing benefits to
Employees, Participants and their Beneficiaries and defraying reasonable
expenses of administering the Plan.

         (b) If a Matching Employer Contribution to the Trust is made by an
Employer by a mistake of fact, the excess of the amount contributed over the
amount that would have been contributed had there not occurred a mistake of fact
shall be returned to such Employer within one (1) year after the payment of such
Contribution. If a Matching Employer Contribution to the Trust is made by an
Employer (all of which Contributions are conditioned upon their deductibility
under Code Section 404 (or any successor thereto) pursuant to Section 5.1
hereof), and if such Contribution is not fully deductible under such Code
Section, such Contribution, to the extent the deduction therefor is disallowed,
shall be returned to the Employer within one (1) year after the disallowance of
the deduction. Earnings attributable to Matching Employer Contributions returned
to an Employer pursuant to this Subsection may not be returned, but losses
attributable thereto shall reduce the amount to be returned; provided, however,
that if the withdrawal of the amount attributable to the mistaken or
non-deductible Contribution would cause the balance of the Account of any
Participant to be reduced to less than the balance that would have been in such
Account had the mistaken or non-deductible amount not have been contributed, the
amount to be returned to the Employer pursuant to this Section shall be limited
so as to avoid such reduction.

                                       27
<PAGE>
5.9 PROVISIONS PURSUANT TO CODE SECTION 415(C).

         (a) Notwithstanding any other provision of the Plan (other than Section
4.2(b) hereof), the annual additions (as defined in Subsection (b) of this
Section) to a Participant's Account in any Plan Year (which shall be the
limitation year) shall in no event exceed the lesser of (i) (A) thirty thousand
dollars ($30,000) for Plan Years beginning before January 1, 2002, or (B) forty
thousand dollars ($40,000) for Plan Years beginning on and after January 1,
2002, or (ii) (A) twenty-five percent (25%) for Plan Years beginning before
January 1, 2002, or (B) one hundred percent (100%) for Plan Years beginning on
and after January 1, 2002, of the Participant's compensation for such Plan Year.

         (b) For purposes of this Section, the term "annual additions" means the
sum for any Plan Year of:

                  (i) all contributions made by the Controlled Group that are
         allocated to the Participant's account pursuant to a defined
         contribution plan maintained by a Controlled Group Member,

                  (ii) all employee contributions made by the Participant to a
         defined contribution plan maintained by a Controlled Group Member,

                  (iii) all forfeitures allocated to the Participant's account
         pursuant to a defined contribution plan maintained by a Controlled
         Group Member,

                  (iv) for purposes of the dollar limit in (a)(i) above, any
         amount allocated to an individual medical benefit account (as defined
         in Code Section 415(l)(2)) of the Participant that is part of a pension
         or annuity plan maintained by a Controlled Group Member, and

                  (v) for purposes of the dollar limit in (a)(i) above, any
         amount attributable to medical benefits allocated to the Participant's
         account established under Code Section 419A(d)(1) if the Participant is
         or was a key-employee (as such term is defined in Code Section 416(i))
         during such Plan Year or any preceding Plan Year.

         (c) For the purposes of this Section 5.9, the term "compensation" shall
mean compensation within the meaning of Code Section 415(c)(3) and Treasury
regulations thereunder; provided, however, that effective as of January 1, 1998,
compensation within the meaning of Code Section 415(c)(3) shall include any
elective deferral (as defined in Code Section 402(g)(3)) and any amount which is
contributed or deferred by a Controlled Group Member at the election of the
Participant and which is not includible in gross income of the Participant by
reason of Code Section 125, 132(f)(4) or 457. Effective for Plan Years beginning
on and after January 1, 1998, for purposes of (i) the definition of the term
"compensation" under this Section 5.9 and Section 14.6 hereof, and (ii) the
definition of the term "Compensation" in Article II hereof, amounts under Code
Section 125 include any amounts not available to a participant in cash in lieu
of group health coverage because the participant is unable to certify

                                       28
<PAGE>
that he or she has other health coverage. An amount will be treated as an amount
under Code Section 125 only if the Employer does not request or collect
information regarding the participant's other health coverage as part of the
enrollment process for the health plan.

         (d) (i) If a Participant's annual additions would exceed the
         limitations of Subsection (a) of this Section for a Plan Year as a
         result of the allocation of forfeitures, a reasonable error in
         estimating the Participant's Compensation, or a reasonable error in
         determining the amount of Before-Tax Contributions that may be made
         with respect to the Participant under the limitations of this Section
         (or other facts and circumstances that the Commissioner of Internal
         Revenue finds justify application of the following rules of this
         Subsection), After-Tax Contributions (if any) made by the Participant
         for such Plan Year that constitute part of the annual addition
         (together with any gains attributable thereto) shall be returned to the
         Participant to the extent necessary to effectuate such reduction. If
         the return of all such After-Tax Contributions is not sufficient to
         effectuate such reduction, Before-Tax Contributions (if any) made by
         the Participant for such Plan Year that constitute part of the annual
         addition (together with any gains attributable thereto) shall be
         returned to the Participant to the extent necessary to effectuate such
         reduction. If the return of all such After-Tax Contributions and
         Before-Tax Contributions is not sufficient to effectuate such
         reduction, Contributions allocable to such Participant's Account for
         such year shall, to the extent necessary to effectuate such reduction,
         be allocated among the remaining Participants in accordance with
         Section 5.2(b) hereof exclusive of those Participants whose Accounts
         have received the maximum permitted by law for tax deduction purposes.

                  (ii) In the event that the provisions of this Section make it
         impossible to allocate any Contributions in accordance with Section
         5.2(b) hereof, such Contributions shall be allocated to a suspense
         account. Amounts allocated to the suspense account shall be reallocated
         to Participant Accounts in accordance with Section 5.2(b) hereof as of
         the first Valuation Date upon which it is possible to do so without
         violating the limitations of this Section until the suspense account is
         exhausted. Investment gains and losses and other income shall not be
         allocated to the suspense account during the period such suspense
         account is required to be maintained pursuant to this Subsection.

                  (iii) In the event of the termination of this Plan while there
         exists a balance in the suspense account, to the extent such balance
         cannot be allocated to Participant Accounts without violating the
         limitations of this Section, such balance shall revert to the
         applicable Employer.

5.9A        PROVISION PURSUANT TO CODE SECTION 415(E).

         The provisions of this Section shall be effective prior to January 1,
2000 only.

         (a) Notwithstanding any other provision of the Plan, if an individual
is a participant in both a defined benefit plan and a defined contribution plan
maintained by the Controlled Group, the sum of the defined benefit plan fraction
and the defined contribution plan fraction for any Plan Year may not exceed
1.00. If a reduction is necessary to avoid exceeding the limitation

                                       29
<PAGE>
set forth in this Section, the affected participant's benefits under the defined
benefit plan shall be reduced to the extent necessary to avoid exceeding such
limitation. For purposes hereof,

                  (i) The defined benefit plan fraction for any Plan Year is a
         fraction, (A) the numerator of which is the projected annual benefit of
         the participant under the plan (determined as of the close of the
         Year), and (B) the denominator of which is the lesser of (I) the
         product of 1.25, multiplied by the dollar limitation in effect under
         Code Section 415(b)(1)(A) for such Year, or (II) the product of 1.4,
         multiplied by the amount which may be taken into account under Code
         Section 415(b)(1)(B) with respect to such participant under the plan
         for such Year; and

                  (ii) The defined contribution plan fraction for any Plan Year
         is a fraction, (A) the numerator of which is the sum of the annual
         additions to the participant's account as of the close of the Year and
         for all prior Years, and (B) the denominator of which is the sum of the
         lesser of the following amounts determined for such Year and for each
         prior year of service with the Controlled Group (regardless of whether
         a plan is in existence during such Year):

                           (I) the product of 1.25, multiplied by the dollar
                  limitation in effect under Code Section 415(c)(1)(A) for such
                  Year and each such prior year of service, or

                           (II) the product of 1.4, multiplied by the amount
                  which may be taken into account under Code Section
                  415(c)(1)(B) with respect to such participant under such plan
                  for such Year and each prior year of service.

         (b) A participant's projected annual benefit for purposes of Subsection
(a) of this Section is equal to the annual benefit to which he would be entitled
under the terms of the defined benefit plan, assuming he will continue
employment until reaching normal retirement age as determined under the terms of
such plan (or current age, if later), his compensation for the Plan Year under
consideration will remain the same until the date he attains such age, and all
other relevant factors used to determine benefits under the plan for the Plan
Year under consideration will remain constant for all future Plan Years.

5.10 DEFINITIONS.

         (a) For purposes of applying the limitations set forth in Sections 5.9
and 5.9A hereof, all qualified defined contribution plans (whether or not
terminated) ever maintained by one or more Controlled Group Members will be
treated as one defined contribution plan, and all qualified defined benefit
plans (whether or not terminated) ever maintained by one or more Controlled
Group Members will be treated as one defined benefit plan.

         (b) For purposes of applying the limitations set forth in Section 5.9
hereof, allocations under the defined contribution plans that must be treated as
though they constituted a single defined contribution plan under Subsection (a)
of this Section shall be made in the following order:

                                       30
<PAGE>
            (i)   before-tax contributions under the Plan;

            (ii)  matching employer contributions under the Plan;

            (iii) profit-sharing contributions under the Plan; and

            (iv)  after-tax contributions under the Plan.

5.11  FUNDING POLICY.

      The Plan Administrator, as a Named Fiduciary, shall (a) determine,
establish and carry out a funding policy and method consistent with the
objectives of the Plan and the requirements of applicable law, and (b) furnish
from time to time to the person responsible for the investment of the assets
held in the Trust information the Plan Administrator may have relative to the
Plan's probable short-term and long-term financial needs, including any probable
need for short-term liquidity, and the Plan Administrator's opinion (if any)
with respect thereto.

5.12  NO DUTY TO ENFORCE PAYMENT.

      Neither the Trustee nor the Plan Administrator nor any other person shall
be under any duty to inquire into the correctness of the amount contributed and
paid over to the Trustee hereunder, nor shall the Trustee or the Plan
Administrator or any other person be under any duty to enforce the payment of
the Contributions to be made hereunder by any Employer.

                               ARTICLE VI. VESTING

6.1   IMMEDIATE VESTING.

      All amounts allocated to a Participant's Account shall be fully vested at
all times. Notwithstanding the Participant's nonforfeitable right hereunder, no
distribution with respect to a Participant or Beneficiary shall be made prior to
the time authorized under Article VIII hereof.

                            ARTICLE VII. INVESTMENTS

      The provisions of this Article VII are effective as of January 17, 2001,
unless expressly provided otherwise herein.

7.1   INVESTMENT FUNDS.

      (a) Effective prior to July 18, 2002, the Trust Fund will be divided into
the Company Stock Fund, the FedEx Stock Fund and such additional Investment
Funds as the Company may in its discretion select or establish. Effective on and
after July 18, 2002, the Trust Fund will be

                                       31
<PAGE>
divided into the Company Stock Fund and such additional Investment Funds as the
Plan Administrator may in its discretion select or establish.

      (b)   Effective as of June 1, 2002,

            (i) for purposes of any Participant who is not an Employee of an
      Employer on June 1, 2002, any portion of such Participant's Account which
      is invested in the FedEx Stock Fund as of July 17, 2002, shall, as soon as
      practicable thereafter, be liquidated and the proceeds transferred to the
      Investment Funds in accordance with such Participant's timely investment
      election received by the Plan Administrator for such purpose, and if no
      timely investment election is received by the Plan Administrator for such
      purpose, to the American Balanced Fund,

            (ii) for purposes of any Participant who is an Employee of an
      Employer on June 1, 2002, but who is not making Before-Tax or After-Tax
      Contributions to the Plan as of June 1, 2002, any portion of such
      Participant's Account which is invested in the FedEx Stock Fund as of July
      17, 2002, shall, as soon as practicable thereafter, be liquidated and the
      proceeds transferred to the Investment Funds in accordance with such
      Participant's timely investment election received by the Plan
      Administrator for such purpose, and if no timely investment election is
      received by the Plan Administrator for such purpose, to the American
      Balanced Fund, and

            (iii) for purposes of any Participant who is an Employee of an
      Employer on June 1, 2002, and who is making Before-Tax or After-Tax
      Contributions to the Plan as of June 1, 2002, any portion of such
      Participant's Account which is invested in the FedEx Stock Fund as of July
      17, 2002, shall, as soon as practicable thereafter, be liquidated and the
      proceeds transferred to the Investment Funds in accordance with such
      Participant's investment elections in effect for current Before-Tax or
      After-Tax Contributions as recorded on KeyBank, N.A.'s KeyInvest system as
      of July 18, 2002.

      (c) Contributions will be invested in the Investment Funds as provided in
Section 7.5 hereof. Subject to other applicable provisions of the Plan, the
Trustee shall hold, manage, administer, value, invest, reinvest, account for and
otherwise deal with each Investment Fund separately. The Trustee shall invest
and reinvest the principal and income of each Investment Fund and will keep each
Investment Fund invested, without distinction between principal and income, as
required under the terms of the Plan.

      (d) Dividends, interest and other distributions received by the Trustee in
respect of each Investment Fund shall be reinvested in the same Investment Fund;
provided, however, that, dividends, interest and other distributions received by
the Trustee in respect of the FedEx Stock Fund shall be invested solely in the
Company Stock Fund.

      (e) The Trustee, in its sole discretion, may keep such portion of each
Investment Fund invested in interest-bearing cash or cash equivalents either
pending the selection and purchase of suitable investments under such Fund or as
the Trustee may from time to time deem

                                       32
<PAGE>
to be necessary or advisable to maintain sufficient liquidity to meet the
obligations of the Plan or for other reasons.

      (f) The Plan Administrator shall adopt, and may amend from time to time,
general rules of uniform application that shall provide for the administration
of each Investment Fund, including, but not limited to, rules providing for (i)
the method of valuing each such Investment Fund as of each applicable Valuation
Date, (ii) procedures pursuant to which a Participant may elect to have all or a
designated part of his Account invested in any Investment Fund (if more than one
such Investment Fund is established), (iii) the method of changing any such
election by either the Participant or his Death Beneficiary and the frequency
with which such elections may be made, (iv) the Investment Fund in which a
Participant's Account shall be invested in the absence of an effective election,
and (v) any other matters that the Plan Administrator deems necessary or
advisable in the administration of any Investment Fund.

      (g) Effective January 1, 2003, a Participant may invest a portion of his
Account in investment media other than the Investment Funds listed on Exhibit B
hereto at such time and in such manner as may be prescribed by the Plan
Administrator. In the event the Plan Administrator prescribes, and any
Participant elects, such other investments, each investment in an investment
medium other than an Investment Fund shall be deemed to be an Investment Fund,
and references herein to the term "Investment Fund" or "Investment Funds" shall,
as the context requires, include such other investments. Notwithstanding any
other provision of the Plan, a Participant may not directly invest any
Contributions into any investment media described in this Subsection (g). The
Plan Administrator may impose other restrictions on Participants' investment in
such investment media.

7.2   ACCOUNT; SUB-ACCOUNT.

      The Plan Administrator shall establish and maintain, or cause to be
established and maintained, an Account for each Participant, which Account will
reflect, pursuant to Sub-Accounts established and maintained thereunder, the
amount, if any, of the Participant's (a) Before-Tax Contributions, (b) After-Tax
Contributions, (c) Matching Employer Contributions, (d) Rollover Contributions,
(e) Qualified Nonelective Contributions, (f) Profit Sharing Contributions and
(g) Stock Bonus Portion. The Plan Administrator shall also maintain, or cause to
be maintained, separate records that will show (i) the portion of each such
Sub-Account invested in each Investment Fund and (ii) the amount of
Contributions thereto, payments and withdrawals therefrom and the amount of
income and losses attributable thereto. The interest of each Participant in the
Trust Fund at any time shall consist of his Account balance (as determined
pursuant to Section 7.4 hereof) as of the last preceding business day.

7.3   REPORTS.

      (a) For periods prior to January 1, 2003, the Plan Administrator shall
cause reports to be made quarterly to each Participant and to the Death
Beneficiary of each deceased Participant, indicating the value of the
Participant's Account as of the last business day of the immediately preceding
calendar quarter. In addition, the Plan Administrator shall cause such a report
to be made to each Participant who (a) requests such a report in writing
(provided that only one report shall be furnished to a Participant upon such a
request in any twelve- (12-) month period) or (b) has a Termination of
Employment.

                                       33
<PAGE>
      (b) Effective January 1, 2003, the Plan Administrator shall cause periodic
reports to be made available to each Participant and to the Death Beneficiary of
each deceased Participant, indicating the activity in the Participant's Account
for the time period reflected in the periodic report and the value of the
Participant's Account as of the Valuation Date coincident with or immediately
preceding the last day of such time period. In addition, the Plan Administrator
shall cause such a report to be made to each Participant who (a) requests such a
report in writing (provided that the Plan Administrator may restrict the number
of written reports to a frequency of not less than one per twelve (12) month
period), or (b) has a Termination of Employment.

7.4   VALUATION OF INVESTMENT FUNDS.

      (a) The balance of each Participant's Account shall be expressed in terms
of the number of shares or investment units, as applicable, including fractional
shares or units, which have been allocated pursuant to this Section to each
Investment Fund in such Participant's Account.

      (b) The Trustee will, as of the close of business on each Valuation Date,
determine or cause to be determined the value of each Investment Fund. Each such
valuation will be made on the basis of the net income or loss to each such
Investment Fund between the current Valuation Date and the last preceding
Valuation Date. The net income or loss of an Investment Fund shall include
interest income, dividends and other income of such Fund and shall be reduced by
any expenses paid (including the fees and expenses of the Trustee and investment
managers, if any, that are to be charged to such Investment Fund in accordance
with the terms of the Plan) and other losses of such Fund. For this purpose, the
transfer of funds to or from an Investment Fund pursuant to Sections 7.5, 7.6,
7.7 or 7.8 hereof, Contributions allocated to an Investment Fund, and payments,
distributions and withdrawals from an Investment Fund to provide benefits under
the Plan for Participants or Beneficiaries will not be deemed to be income or
losses of the Investment Fund.

      (c) As of each Valuation Date, the net income or loss of each Investment
Fund determined pursuant to Subsection (b) of this Section shall be allocated to
the Accounts of Participants in such Investment Fund in proportion to the ratio
of the number of shares or units in such Fund held in such Account at any time
since the immediately prior Valuation Date to the total shares or units in such
Fund at any time since the immediately prior Valuation Date.

      (d) Except as provided in Sections 7.5, 7.6, 7.7 or 7.8 hereof, or as may
otherwise be provided by the Plan Administrator, Contributions shall be credited
to each Participant's Account and allocated in accordance with the investment
option chosen by such Participant to the Investment Funds as soon as practicable
after such Contribution is made.

      (e) Notwithstanding the foregoing, the Plan Administrator may, in
accordance with the applicable requirements of the Code and ERISA, (i) adopt
such accounting procedures as it considers appropriate and equitable to
establish a proportionate crediting of net income or loss of an Investment Fund
and of Contributions made to an Investment Fund as of each Valuation Date and
(ii) adopt such valuation procedures as it considers appropriate and equitable
to determine

                                       34
<PAGE>
the value of the shares or units, as applicable, of an Investment Fund that are
necessary to effectuate the transactions contemplated by the Plan.

7.5   INVESTMENT OF CONTRIBUTIONS.

      (a) (i) All Matching Employer Contributions made to the Plan pursuant to
      Section 5.1 hereof, Qualified Nonelective Contributions and Profit Sharing
      Contributions shall be invested in the Company Stock Fund.

            (ii) Matching employer contributions made by Roadway Services, Inc.
      to the Roadway Services, Inc. Stock Savings and Retirement Income Plan and
      Trust which have been transferred to the Plan pursuant to Section 4.13
      hereof shall remain invested in the FedEx Stock Fund and the Company Stock
      Fund; provided; however, that, pursuant to Subsection 7.8(b) hereof, a
      Participant may elect to transfer any portion of such matching
      contributions invested at the time of such election in the FedEx Stock
      Fund to one or more of the other Investment Funds; and provided further,
      however, that a Participant may elect to transfer any portion of such
      matching contributions invested following December 11, 2003 in the
      Fidelity Retirement Money Market Portfolio to one or more of the other
      Investment Funds.

            (iii) Notwithstanding subsections (i) and (ii) above, during the
      period beginning on December 3, 2003 and ending on such date as the Plan
      Administrator and the Trustee shall determine, (A) Matching Employer
      Contributions made on behalf of a Participant shall be invested in such
      Investment Fund or Investment Funds (other than the Company Stock Fund) as
      directed by the Participant and (B) Matching Employer Contributions
      directed by the Participant into the Company Stock Fund shall be invested
      in the American Balanced Fund.

      (b) Effective as of January 17, 2001, except as provided in Paragraphs (i)
through (iii) of this Subsection, each Participant may, pursuant to Sections
7.6, 7.7 and 7.8 hereof, direct that Before-Tax Contributions, After-Tax
Contributions and Rollover Contributions made by or for him be invested in one
or more Investment Funds; provided, however, that if a Participant fails to
direct the Investment of Before-Tax Contributions, After-Tax Contributions and
Rollover Contributions made by or for him, such contributions shall be invested
in the American Balanced Fund.

            (i) Before-Tax Contributions and After-Tax Contributions made
      pursuant to Section 4.1 hereof and Rollover Contributions made pursuant to
      Section 4.12 hereof may not be invested in the FedEx Stock Fund;

            (ii) Until a Participant attains age fifty-five (55), that portion
      of his Before-Tax Contributions and After-Tax Contributions that (A) have
      been contributed to the Plan before April 1, 1998, and (B) have been used
      in determining the allocation of Matching Employer Contributions to his
      Account pursuant to Section 5.2 hereof shall remain invested in the
      Company Stock Fund; provided, however, that a Participant may elect to
      transfer any portion of such Before-Tax Contributions and After-Tax
      Contributions

                                       35
<PAGE>
      invested following December 11, 2003 in the Fidelity Retirement Money
      Market Portfolio to one or more of the other investment Funds.

            (iii) Until a Participant attains age fifty-five (55), that portion
      of his Before-Tax Contributions and After-Tax Contributions which have
      been transferred to the Plan pursuant to Section 4.13 hereof and were used
      in determining the allocation of matching employer contributions to his
      account under the Roadway Services, Inc. Stock Savings and Retirement
      Income Plan and Trust shall remain invested in the Company Stock Fund and
      the FedEx Stock Fund; provided; however, that, pursuant to Subsection
      7.8(b) hereof, a Participant may elect to transfer any portion of such
      Before-Tax Contributions and After-Tax Contributions invested at the time
      of such election in the FedEx Stock Fund to one or more of the other
      Investment Funds, and provided further, however, that a Participant may
      elect to transfer any portion of such Before-Tax and After-Tax
      Contributions invested following December 11, 2003 in the Fidelity
      Retirement Money Market Portfolio to one or more of the other Investment
      Funds.

      (c) (i) A Participant's Stock Bonus Portion not previously diversified or
      eligible for diversification pursuant to Subsections 5.5(b) or (c) of the
      Roadway Services, Inc. Stock Bonus Plan and Trust shall remain invested in
      the Company Stock Fund or the FedEx Stock Fund; provided; however, that,
      pursuant to Subsection 7.8(b) hereof, a Participant may elect to transfer
      any portion of his Stock Bonus Portion invested at the time of such
      election in the FedEx Stock Fund to one or more of the other Investment
      Funds; and provided further, however, that a Participant may elect to
      transfer any portion of such Stock Bonus Portion invested following
      December 11, 2003 in the Fidelity Retirement Money Market Portfolio to one
      or more of the other Investment Funds.

            (ii) A Participant's Stock Bonus Portion diversified or eligible to
      be diversified prior to the Effective Date pursuant to Subsections 5.5(b)
      or (c) of the Roadway Services, Inc. Stock Bonus Plan and Trust may,
      pursuant to Sections 7.6 and 7.8 hereof, be invested in one or more
      Investment Funds (other than the FedEx Stock Fund). A Participant who has
      made a diversification election of his Stock Bonus Portion prior to the
      Effective Date may, pursuant to Sections 7.6 and 7.8 hereof, direct that
      any remaining amount of the one-half (1/2) permitted to be diversified
      (including earnings and appreciation thereon) be invested in one or more
      of the other Investment Funds (other than the FedEx Stock Fund).

            (iii) Effective as of January 17, 2001, a Participant who attains
      age fifty-five (55) on or after the Effective Date, may make an initial
      diversification election pursuant to Sections 7.6 and 7.8 hereof to
      transfer an amount equal to up to one-half (1/2) of his Stock Bonus
      Portion to one or more Investment Funds (other than the FedEx Stock Fund).
      A Participant who has made diversification election of his Stock Bonus
      Portion pursuant to the preceding sentence may, pursuant to Sections 7.6
      and 7.8 hereof, direct that any remaining amount of the one-half (1/2)
      permitted to be diversified (including earnings and appreciation thereon)
      be invested in one or more of the other Investment Funds (other than the
      FedEx Stock Fund).

                                       36
<PAGE>
7.6   CHANGE OF INVESTMENTS.

      (a) (i) Each Participant who is eligible to direct the investment of all
      or a portion of his Before-Tax Contributions, After-Tax Contributions and
      Rollover Contributions pursuant to Subsection 7.5(b) hereof may, by
      direction to the Plan Administrator, change his investment direction with
      respect to such future Contributions and/or may direct that all or a
      portion of his Account that is attributable to such prior Contributions
      (including earnings and appreciation thereon) be transferred from one
      Investment Fund to another Investment Fund; provided, however, that a
      Participant may not direct the transfer of any portion of his Account into
      the FedEx Stock Fund.

            (ii) Each Participant who is eligible to diversify or has
      diversified any portion of his Stock Bonus Portion pursuant to Paragraphs
      7.5(c)(ii) or (iii) may, by direction to the Plan Administrator, direct
      that all or a portion of his Stock Bonus Portion which is attributable to
      the amount eligible to be diversified or to the prior amount diversified
      pursuant to Section 7.5(c)(ii) or (iii) hereof (including earnings and
      appreciation thereon) be transferred from one Investment Fund to another
      Investment Fund; provided, however, that a Participant may not direct the
      transfer of any portion of his Account into the FedEx Stock Fund.

      (b) Notwithstanding the limitations of Section 7.5 hereof, any Participant
entitled to a distribution of his Account pursuant to Article VIII hereof may,
by direction to the Plan Administrator, irrevocably direct that any portion of
his Account not invested in the Company Stock Fund be transferred to the Company
Stock Fund prior to the distribution of his Account.

7.7   INVESTMENT DIRECTION AND CHANGE PROCEDURES-FUTURE CONTRIBUTIONS.

      (a) Any change of investments for a Participant's future Contributions
permitted by Section 7.6(a)(i) hereof shall be made by a Participant by
providing direction to the Plan Administrator (on a form or in a manner provided
by the Plan Administrator) which shall specify the portion of such Contributions
to be invested in each of the Investment Funds. Effective as of January 17,
2001, such directions can be executed on a daily basis, or if later, as soon as
practicable, in accordance with the policies and procedures for such directions
established by the Plan Administrator and the Plan Trustee.

7.8   INVESTMENT DIRECTION AND CHANGE PROCEDURES-PRIOR CONTRIBUTIONS.

      (a) Any direction to transfer all or a portion of a Participant's Account
among the Investment Funds relating to a Participant's prior Contributions
permitted by Section 7.6(a)(i) hereof and/or all or a portion of a Participant's
Stock Bonus Portion among the Investments Funds permitted by Section 7.6(a)(ii)
hereof shall be made by a Participant by providing direction to the Plan
Administrator (on a form or in a manner provided by the Plan Administrator)
which shall specify the portion of the Investment Fund (in units or shares, as
applicable) to be transferred and the Investment Fund(s) into which it is to be
transferred and, in the case of a transfer of a Participant's Stock Bonus
Portion, the percentage of the Participant's

                                       37
<PAGE>
Stock Bonus Portion to be transferred. Effective as of January 17, 2001, such
directions can be executed on a daily basis, or if later, as soon as
practicable, in accordance with the policies and procedures for such directions
established by the Plan Administrator and the Plan Trustee.

      (b) Until July 18, 2002, a Participant may, with respect to the portion of
his Account invested in the FedEx Stock Fund, direct the Plan Administrator to
transfer all or a portion of his Account to one or more of the other Investment
Funds.

7.9   DIRECTIONS TO THE TRUSTEE.

      The Plan Administrator shall give appropriate and timely directions to the
Trustee in order to permit the Trustee to give effect to the investment choice
and investment change elections made under Sections 7.5, 7.6, 7.7 and 7.8 hereof
and to provide funds for distributions pursuant to Article VIII hereof.

7.10  VOTING OF ALLOCATED COMPANY STOCK AND FEDEX CORP. STOCK.

      (a) All voting rights on shares of Company Stock and FedEx Corp. Stock
held by the Trustee shall be exercised by the Trustee only as directed by the
Participants (and Beneficiaries) acting in their capacity as Named Fiduciaries
in accordance with the following provisions of this Section 7.10. The number of
shares of Company Stock and FedEx Corp. Stock credited to a Participant's
Account shall be determined as of the most recent Valuation Date for which
information is readily available.

      (b) As soon as practicable before each annual or special shareholders'
meeting of the Company or FedEx Corporation, the Trustee shall furnish or cause
to be furnished to each Participant a copy of the proxy solicitation material
sent generally to shareholders, together with a form to be returned to the
Trustee requesting confidential instructions from the Participant, acting in his
capacity as a Named Fiduciary, on how the shares of Company Stock or FedEx Corp.
Stock credited to such Participant's Account are to be voted by the Trustee. The
Company shall cooperate with the Trustee to insure that Participants receive the
requisite information with respect to Company Stock in a timely manner. The
materials furnished to the Participants shall include a notice from the Trustee
explaining each Participant's right to instruct the Trustee with respect to the
voting of shares of Company Stock or FedEx Corp. Stock credited to his Account
and how Non-Directed Shares (as defined below) and Unallocated Shares (as
defined below) will be voted. Upon timely receipt of such instructions, the
Trustee (after combining votes of fractional shares to give effect to the
greatest extent to Participants' instructions) shall vote the shares as
instructed. For purposes of this Section 7.10 and Section 7.11 hereof, (i) the
term "Non-Directed Shares" shall mean those shares of Company Stock or FedEx
Corp. Stock credited to Participants' Accounts for which instructions are not
timely received by the Trustee, as well as shares of Company Stock or FedEx
Corp. Stock credited to Participants' Accounts after the Valuation Date used
under this Section 7.10 or section 7.11, as applicable, for purposes of
determining the number of shares credited to each Participant's Account, and
(ii) the term "Unallocated Shares" shall mean any shares of Company Stock or
FedEx Corp. Stock not credited to the Participants' Accounts.

                                       38
<PAGE>
      (c) With respect to all corporate matters submitted to shareholders, each
Participant who has shares of Company Stock or FedEx Corp. Stock credited to his
Account, acting as a Named Fiduciary shall be entitled to direct the voting of
shares of Company Stock or FedEx Corp. Stock (including fractional shares to
1/1000th of a share) credited to his Account. With respect to shares of Company
Stock or FedEx Corp. Stock credited to the Account of a deceased Participant,
such Participant's Beneficiary shall be entitled to direct the voting with
respect to such shares as if such Beneficiary were the Participant.

      (d) For periods prior to January 1, 2003, each Participant who has shares
of Company Stock or FedEx Corp. Stock credited to his Account and who is
entitled to vote on any matter presented for a vote by the shareholders, as a
Named Fiduciary, shall be entitled to separately direct the Trustee with respect
to the vote of a portion of the Non-Directed Shares and the Unallocated Shares.
Such direction shall apply to such number of votes equal to the total number of
votes attributable to Non-Directed Shares and Unallocated Shares multiplied by a
fraction, the numerator of which is the number of shares of Company Stock or
FedEx Corp. Stock credited to the Participant's Account and the denominator of
which is the total number of shares of Company Stock or FedEx Corp. Stock
credited to the Accounts of all such Participants who have timely provided
directions to the Trustee with respect to Non-Directed Shares and Unallocated
Shares under this Subsection (d). Fractional shares shall be rounded to the
nearest 1/1000th of a share.

      (e) Effective January 1, 2003, the Trustee shall vote Non-Directed Shares
and Unallocated Shares in the same proportion as it votes shares of Company
Stock for which it receives timely and proper voting directions.

      (f) The instructions received by the Trustee from Participants or
Beneficiaries shall be held by the Trustee in strict confidence and shall not be
divulged or released to any person including directors, officers or employees of
the Company or any Controlled Group Member or FedEx Corporation except as
otherwise required by law.

7.11  TENDER OF ALLOCATED COMPANY STOCK OR FEDEX CORP. STOCK.

      (a) APPLICABILITY. Except as otherwise expressly provided in the Plan, the
Trustee shall not sell, alienate, encumber, pledge, transfer or otherwise
dispose of or tender or withdraw, any shares of Company Stock or FedEx Corp.
Stock held by it under the Plan. All tender or exchange decisions with respect
to Company Stock or FedEx Corp. Stock shall be made by the Trustee only as
directed by the Participants (and Beneficiaries), acting in their capacity as
Named Fiduciaries, in accordance with the following provisions of this Section
7.11. The number of shares of Company Stock or FedEx Corp. Stock credited to a
Participant's Account shall be determined as of the most recent Valuation Date
for which information is readily available.

      (b) INSTRUCTIONS TO TRUSTEE. In the event an offer shall be received by
the Trustee (including a tender offer for shares of Company Stock or FedEx Corp.
Stock subject to Section 14(d)(1) of the Securities Exchange Act of 1934 or
subject to Rule 13e-4 promulgated under such Act, as those provisions may from
time to time be amended) to purchase or exchange any

                                       39
<PAGE>
shares of Company Stock or FedEx Corp. Stock held by the Trustee, the Trustee
shall advise each Participant who has shares of Company Stock or FedEx Corp.
Stock credited to his Account in writing of the terms of the offer as soon as
practicable after its commencement and shall furnish each Participant with a
form by which he may instruct the Trustee confidentially whether or not to
tender or exchange shares of Company Stock or FedEx Corp. Stock credited to such
Participant's Account. The materials furnished to the Participants shall
include:

            (i) a notice from the Trustee explaining Participants' rights to
      instruct the Trustee with respect to shares of Company Stock or FedEx
      Corp. Stock credited to their Accounts, and, how the Trustee will treat
      Non-Directed Shares and Unallocated Shares, as provided herein; and

            (ii) such related documents as are prepared by any person and
      provided to the shareholders of the Company pursuant to the Securities
      Exchange Act of 1934. The Company and the Trustee may also provide
      Participants with such other material concerning the tender or exchange
      offer as the Trustee or the Company in their discretion determine to be
      appropriate; provided, however, that prior to any distribution of
      materials by the Company or the Trustee, the Company or the Trustee, as
      applicable, shall be furnished with complete copies of all such materials.
      The Company and the Trustee shall cooperate with each other to insure that
      Participants receive the requisite information with respect to Company
      Stock in a timely manner.

      (c) TRUSTEE ACTION ON PARTICIPANT INSTRUCTIONS: ALLOCATED SHARES. COMPANY
STOCK OR FEDEX CORP. Stock credited to his Account, as a Named Fiduciary, shall
be entitled to direct the Trustee whether or not to tender or exchange shares of
Company Stock or FedEx Corp. Stock credited to his Account (including fractional
shares to 1/1000th of a share). With respect to shares of Company Stock or FedEx
Corp. Stock credited to the Account of a deceased Participant, such
Participant's Beneficiary shall be entitled to direct the Trustee whether or not
to tender or exchange such shares as if such Beneficiary were the Participant.

      (d) TRUSTEE ACTION ON PARTICIPANT INSTRUCTIONS: NON-DIRECTED AND
UNALLOCATED SHARES.

            (i) For periods prior to January 1, 2003, each Participant who has
      shares of Company Stock or FedEx Corp. Stock credited to his Account and
      who is entitled to direct the Trustee whether or not to tender or exchange
      shares of Company Stock or FedEx Corp. Stock credited to his Account, as a
      Named Fiduciary, shall be entitled to separately direct the Trustee with
      respect to the tender or exchange of a portion of the Non-Directed Shares
      and the Unallocated Shares. Such directions shall apply to such number of
      Non-Directed Shares and Unallocated Shares equal to the total number of
      Non-Directed Shares and Unallocated Shares multiplied by a fraction, the
      numerator of which is the number of shares of Company Stock or FedEx Corp.
      Stock credited to the Participant's Account and the denominator of which
      is the total number of shares of Company Stock or FedEx Corp. Stock
      credited to the Accounts of all such Participants who have timely provided
      directions to the Trustee with respect to Non-Directed Shares

                                       40
<PAGE>
      and Unallocated Shares under this Subsection (d). Fractional shares shall
      be rounded to the nearest 1/1000th of a share.

            (ii) Effective January 1, 2003, in the event an offer shall be
      received by the Trustee to purchase or exchange any shares of Company
      Stock held by the Trustee, the Trustee shall not tender Non-Directed
      Shares, and shall tender Unallocated Shares in the same proportions as it
      tenders shares of Company Stock as to which it receives timely and proper
      tender directions with respect to such offer.

      (e) CONFIDENTIALITY. The instructions received by the Trustee from
Participants or Beneficiaries shall be held by the Trustee in strict confidence
and shall not be divulged or released to any person, including directors,
officers or employees of the Company, any Controlled Group Member or FedEx
Corporation, or the Plan Administrator, except as otherwise required by law.

      (f) WITHDRAWAL OF SHARES. In the event, under the terms of a tender offer
or otherwise, any shares of Company Stock or FedEx Corp. Stock tendered for
sale, exchange or transfer pursuant to such offer may be withdrawn from such
offer, the Trustee shall follow such instructions respecting the withdrawal of
such shares from such offer in the same manner and in the same proportion as
shall be timely received by the Trustee from Participants entitled under this
Section 7.11 to give instructions as to the sale, exchange or transfer of shares
of Company Stock or FedEx Corp. Stock pursuant to such offer, acting in their
capacity as Named Fiduciaries.

      (g) PARTIAL OFFERS. In the event that an offer for fewer than all of the
shares of Company Stock or FedEx Corp. Stock held by the Trustee shall be
received by the Trustee, the total number of shares of Company Stock or FedEx
Corp. Stock that the Plan sells, exchanges or transfers pursuant to such offer
shall be allocated among Participants' Accounts on a pro rata basis in
accordance with the directions received from Participants with respect to shares
of Company Stock or FedEx Corp. Stock credited to their Accounts and the
proportional tender of Unallocated Shares.

      (h) MULTIPLE OFFERS.

            (i) In the event an offer shall be received by the Trustee and
      instructions shall be solicited from Participants pursuant to Subsections
      (a) through (g) hereof regarding such offer, and, prior to the termination
      of such offer, another offer is received by the Trustee for the shares of
      Company Stock or FedEx Corp. Stock subject to the first offer, the Trustee
      shall use its best efforts under the circumstances to solicit instructions
      from the Participants in their capacity as Named Fiduciaries:

                  (A) with respect to shares of Company Stock or FedEx Corp.
            Stock tendered for sale, exchange or transfer pursuant to the first
            offer, whether to withdraw such tender, if possible, and, if
            withdrawn, whether to tender any shares of Company Stock or FedEx
            Corp. Stock so withdrawn for sale, exchange or transfer pursuant to
            the second offer, and

                                       41
<PAGE>
                  (B) with respect to shares of Company Stock or FedEx Corp.
            Stock not tendered for sale, exchange or transfer pursuant to the
            first offer, whether to tender or not to tender such shares of
            Company Stock or FedEx Corp. Stock for sale, exchange or transfer
            pursuant to the second offer.

            (ii) The Trustee shall follow all such instructions received in a
      timely manner from Participants in the same manner and in the same
      proportion as provided in Subsections (a) to (g) hereof. With respect to
      any further offer for any Company Stock or FedEx Corp. Stock received by
      the Trustee and subject to any earlier offer (including successive offers
      from one or more existing offerors), the Trustee shall act in the same
      manner as described above in this Subsection (h).

      (i) TENDER BY COMPANY. Subject to any provisions in the Plan to the
contrary, in the event the Company initiates a tender or exchange offer, the
Trustee may, in its sole discretion, enter into an agreement with the Company
not to tender or exchange any shares of Company Stock in such offer, in which
event, the foregoing provisions of this Section 7.11 shall have no effect with
respect to such offer and the Trustee shall not tender or exchange any shares of
Company Stock in such offer.

                   ARTICLE VIII. DISTRIBUTIONS AND WITHDRAWALS

8.1   DISTRIBUTIONS ONLY AS PROVIDED.

      (a) A Participant's Account shall only be distributable as provided in
this Article. A Participant or Death Beneficiary who is eligible to receive a
distribution or withdrawal under the Plan may apply to receive such a
distribution or withdrawal on the form or in the manner prescribed by the Plan
Administrator, furnishing such information as the Plan Administrator may
reasonably require, including any authority in writing that the Plan
Administrator may request authorizing it to obtain pertinent information,
certificates, transcripts and/or other records from any public office. No
application for a distribution pursuant to Section 8.2 or 8.3 hereof may be made
prior to the Participant's Termination of Employment.

      (b) The Plan Administrator shall provide a Participant who has requested a
distribution pursuant to Section 8.2(a) hereof or a withdrawal pursuant to
Section 8.8 or 8.10 hereof with a general description of the optional forms of
benefit available under the Plan and the right to defer receipt of such
distribution or withdrawal within the period provided in Section 8.12(b) hereof
(unless such period is waived as permitted in Section 8.12(b) hereof).

8.2   DISTRIBUTIONS UPON TERMINATION OF EMPLOYMENT (OTHER THAN DEATH).

      (a) A Participant shall be eligible to receive a distribution of his
Account, as provided in Section 8.4 hereof, due to his Termination of Employment
(other than by reason of death). A distribution pursuant to this Subsection
shall be paid to a Participant as soon as practicable after the Participant has
filed his application with the Plan Administrator pursuant to Section 8.1

                                       42
<PAGE>
hereof; provided, however, that a distribution on account of a Participant
becoming Totally and Permanently Disabled shall be paid to a Participant as soon
as practicable after the Participant has become Totally and Permanently Disabled
and the Participant has filed his application with the Plan Administrator
pursuant to Section 8.1 hereof.

      (b) Effective as of January 1, 1998, notwithstanding the provisions of
Subsection (a) of this Section, (i) if the value of the Account of a Participant
who is eligible for a distribution under Subsection (a) of this Section does not
exceed $5,000, such Account shall be paid to him in a lump sum payment after
such Termination of Employment or after the Participant has been determined to
be Totally and Permanently Disabled, and (ii) if distribution of the Account of
a Participant who has a Termination of Employment or is determined to be Totally
and Permanently Disabled has not been made solely because the Participant has
not filed his application pursuant to Section 8.1, his Account shall be paid to
him no later than the date provided in Section 8.6(b)(i) hereof. Effective
January 1, 2002, for purposes of this Section 8.2(b), a Participant's Rollover
Contributions hereto shall be included in determining the value of the
Participant's Account.

      (c) If a Participant who has a Termination of Employment should again
become an Employee before completion of the distribution of his Account, such
distribution shall cease until the Participant again has a Termination of
Employment.

8.3   DISTRIBUTION UPON DEATH.

      (a) In the case of the death of a Participant, the Participant's Death
Beneficiary shall be eligible to receive a distribution of the Participant's
Account as provided in Section 8.4 hereof. Distributions pursuant to this
Subsection shall be paid to a Death Beneficiary as soon as practicable after the
Death Beneficiary has filed an application with the Plan Administrator pursuant
to Section 8.1 hereof.

      (b) Effective as of January 1, 1998, notwithstanding the provisions of
Subsection (a) of this Section, (i) if the value of the Account of a Participant
who died does not exceed $5,000, such Account shall be paid to his Death
Beneficiary in a lump sum payment after the date of death and (ii) if
distribution of the Account of a Participant who died has not been made solely
because the Death Beneficiary has not filed his application pursuant to Section
8.1 hereof, such Account shall be paid to the Death Beneficiary no later than
the date provided in Section 8.6(b)(ii) hereof. Effective January 1, 2002, for
purposes of this Section 8.3(b), a Participant's Rollover Contributions hereto
shall be included in determining the value of the Participant's Account.

      (c) In the case of the death of a Participant, the Plan Administrator may
require such proper proof of death and such evidence of the right of any person
to receive a distribution from the Account of a deceased Participant as the Plan
Administrator may deem desirable. The Plan Administrator's determination of
death and of the right of any person to receive payment shall be conclusive.

                                       43
<PAGE>
8.4   DISTRIBUTION OPTIONS.

      (a) Except as provided in Subsection (b) of this Section, all
distributions of a Participant's Account hereunder shall be made in a single
lump sum payment.

      (b) (i) A Participant may elect to receive his Account in ten (10)
successive annual installments. The Death Beneficiary of a Participant may elect
to receive the entire portion of the Participant's Account in ten (10)
successive annual installments.

            (ii) The elections permitted by this Subsection shall be effective
      by giving written notice thereof to the Plan Administrator. No election
      hereunder shall be revocable at any time less than six (6) months prior to
      the Participant's Termination of Employment or the time death benefits are
      scheduled to commence, as applicable.

            (iii) The payment date of the first such installment shall be as
      soon as practicable after the Participant or Death Beneficiary has filed
      his application with the Plan Administrator pursuant to Section 8.1
      hereof, and payment dates of the succeeding nine (9) payments shall be
      annually thereafter during the month in which falls the anniversary of the
      first payment date; provided, however, that, in the case of a Termination
      of Employment on account of Total and Permanent Disability, the payment
      date of the first such installment shall be as soon as practicable after
      the Participant has been determined to be Totally and Permanently
      Disabled, and the Participant has filed his application with the Plan
      Administrator pursuant to Section 8.1 hereof and made his election
      pursuant to Paragraph (ii) of this Section. A Participant may not elect to
      postpone commencement of such installment payments if the exercise of such
      election will cause benefits under the Plan with respect to such
      Participant in the event of his death to be more than "incidental" under
      Code Section 401(a)(9) and Treasury regulations promulgated thereunder.

            (iv) Such annual installments shall be paid in equal portions of the
      aggregate amount vested in the Participant's Account immediately prior to
      commencement of the installment payments, and any additional amounts as
      may be credited to him in any year during the nine (9) year distribution
      period shall be paid to him on the next installment payment date as
      specified in Paragraph (iii) of this Subsection.

8.5   FORM AND VALUATION OF DISTRIBUTION.

      (a) The distribution of a Participant's Account (or portion thereof)
pursuant to this Article shall be as follows:

            (i) Effective as of November 1, 1999, the portion of such Account
      that is invested in the Company Stock Fund or the FedEx Stock Fund shall
      be distributed in kind.

      Notwithstanding the previous sentence, a Participant may elect, in the
      form and manner prescribed by the Plan Administrator, to receive a
      distribution of the portion of such

                                       44
<PAGE>
      Account that is invested in the Company Stock Fund or the FedEx Stock Fund
      in cash, provided, however, that if a Participant fails to make such an
      election, the portion of such Account that is invested in the Company
      Stock Fund or the FedEx Stock Fund shall be distributed in kind. A
      distribution in kind shall occur by the transfer of whole shares of
      Company Stock or FedEx Corp. Stock, as applicable, and cash for any
      uninvested dividends allocable to such Participant. The value of such
      Company Stock or FedEx Corp. Stock, as applicable, shall be the value
      determined as of the immediately preceding Valuation Date or such other
      date as may be required by law.

            (ii) The portion of the Participant's Account that is invested in
      any of the Investment Funds other than the Company Stock Fund or the FedEx
      Stock Fund shall, at the Participant's (or, if applicable, the Death
      Beneficiary's) election, be distributed in cash or, to the extent
      available and provided below, in kind. To effect a distribution in kind,
      the Trustee shall determine the portion of the Participant's Account that
      is distributable in whole shares, which the Trustee shall distribute in
      kind. The portion of the Participant's Account that is not distributable
      in whole shares (as determined by the Trustee) and the portion that is
      attributable to fractional shares shall be distributed in cash. The value
      of the portion of the Participant's Account distributable pursuant to this
      Paragraph shall be the value determined as of the immediately preceding
      Valuation Date or such other date as may be required by law.

            (iii) The portion of the Participant's Account that is attributable
      to Contributions that have not yet been invested in any Investment Fund
      shall be distributed in cash. The value of such Contributions shall be the
      pro-rata value of any applicable investment or account in which such
      Contributions were held as of the immediately preceding Valuation Date or
      such other date required by law.

      (b) Any Participant who is entitled to a distribution of his Account
pursuant to this Article may, by direction to the Plan Administrator,
irrevocably elect to have any portion of his Account not invested in the Company
Stock Fund transferred to the Company Stock Fund before such distribution is
made.

      (c) The Plan Administrator may postpone the distribution to a Participant
to allow an election pursuant to Subsection (b) of this Section to take effect.

      (d) Notwithstanding (a) through (c) above, effective January 1, 2003,
unless a Participant (or his Death Beneficiary) elects otherwise (at the time
and in the manner prescribed by the Plan Administrator), a mandatory
distribution pursuant to Section 8.2(b) or 8.3(b) hereof shall be made entirely
in cash.

8.6   LATEST TIME OF DISTRIBUTIONS.

      (a) The distribution of a Participant's Account shall begin as provided in
the preceding Sections of this Article, but (subject to the consent requirements
of Section 8.1 hereof) in no event later than the sixtieth (60th) day after the
close of the Plan Year in which the latest of the following events occur:

                                       45

<PAGE>
            (i)   the date the Participant attains age sixty-five (65);

            (ii)  the tenth (10th) anniversary of the year in which the
      Participant commenced participation in the Plan; or

            (iii) the date of the Participant's Termination of Employment.

      (b)   (i)   Effective as of January 1, 1997, notwithstanding any other
      provision of the Plan, to the extent required under Code Section
      401(a)(9), for purposes of a Participant who is a 5% owner (as defined in
      Code Section 416) or who attains age 70 1/2 prior to January 1, 1999,
      distribution of such Participant's Account must commence not later than
      April 1 of the calendar year following the calendar year in which he
      attains age 70 1/2, and for purposes of a Participant (other than a
      Participant who is a 5% owner (as defined in Code Section 416)) who
      attains age 70 1/2 on or after January 1, 1999, distribution of such
      Participant's Account must commence not later than the later of (A) the
      calendar year in which the Participant attains age 70 1/2 or (B) the
      calendar year in which the Participant incurs a Termination of Employment.

            (ii)  If a Participant dies before the distribution of such
      Participant's Account has begun, then the entire Account will be
      distributed within five years after the death of such Participant, unless
      (A) any portion of the Participant's Account is payable to (or for the
      benefit of) his Beneficiary, whereupon such portion will be distributed
      over the life of such Beneficiary (or over a period not extending beyond
      the life expectancy of such Beneficiary) and will begin not later than one
      year after the date of the Participant's death (or such later date as the
      Secretary of the Treasury may by regulations prescribe), or (B) any
      portion of the Participant's Account is payable to (or for the benefit of)
      a Beneficiary who is the surviving Spouse of the Participant, whereupon
      such portion will be distributed over the life of the surviving Spouse or
      over a period not extending beyond the life expectancy of the surviving
      Spouse) and begin not later than the date on which the Participant would
      have attained age 70 1/2 (provided that if the surviving Spouse dies
      before the distribution to such Spouse begins, then the five-year
      distribution requirement is to be applied as if the surviving Spouse were
      the Participant).

      (c)   Distributions under the Plan shall be made in a manner that
satisfies Code Section 401(a)(9) and Treasury Regulations issued thereunder,
including Treasury Regulation Section 1.401(a)(9)-2, which provisions are hereby
incorporated into the Plan by reference, provided that such provisions shall
override the other distribution provisions of the Plan only to the extent that
such other Plan provisions provide for distribution that is less rapid than
required under such provisions of the Code and Regulations. Nothing contained in
this Section shall be construed as providing any optional form of payment that
is not available under the other distribution provisions of the Plan.

                                       46
<PAGE>
8.7   MINIMUM REQUIRED DISTRIBUTIONS FOR CALENDAR YEARS AFTER 2002.

      (a)   GENERAL RULES.

            (i)   Effective Date. The provisions of this Section 8.7 will apply
      for purposes of determining required minimum distributions for calendar
      years beginning with the 2003 calendar year.

            (ii)  Precedence. The requirements of this Section 8.7 will take
      precedence over any inconsistent provisions of the Plan.

            (iii) Requirements of Treasury Regulations Incorporated. All
      distributions required under this Section 8.7 will be determined and made
      in accordance with the Treasury Regulations under Code Section 401(a)(9).

            (iv)  TEFRA Section 242. Notwithstanding the other provisions of
      this Section 8.7, distributions may be made under a designation made
      before January 1, 1984, in accordance with Section 242(b)(2) of the Tax
      Equity and Fiscal Responsibility Act ("TEFRA") and the provisions of the
      Plan that relate to Section 242(b)(2) of TEFRA.

      (b)   TIME AND MANNER OF DISTRIBUTION.

            (i)   Required Beginning Date. The Participant's entire interest
      will be distributed, or begin to be distributed, to the Participant no
      later than the Participant's Required Beginning Date.

            (ii)  Death of Participant Before Distributions Begin. If the
      Participant dies before distributions begin, the Participant's entire
      interest will be distributed, or begin to be distributed, no later than as
      follows:

                  (A)   If the Participant's surviving spouse is the
            Participant's sole Designated Beneficiary, then distributions to the
            surviving spouse will begin by December 31 of the calendar year
            immediately following the calendar year in which the Participant
            died, or by December 31 of the calendar year in which the
            Participant would have attained age 70 1/2, if later.

                  (B)   If the Participant's surviving spouse is not the
            Participant's sole Designated Beneficiary, distributions to the
            Designated Beneficiary will begin by December 31 of the calendar
            year immediately following the calendar year in which the
            Participant died.

                  (C)   If there is no Designated Beneficiary as of September 30
            of the year following the year of the Participant's death, the
            Participant's entire interest will be distributed by December 31 of
            the calendar year containing the fifth anniversary of the
            Participant's death.

                                       47
<PAGE>
                  (D)   If the Participant's surviving spouse is the
            Participant's sole Designated Beneficiary and the surviving spouse
            dies after the Participant but before distributions to the surviving
            spouse begin, this Section 8.7(b)(ii), other than Section
            8.7(b)(ii)(A), will apply as if the surviving spouse were the
            Participant.

      For purposes of this Section 8.7(b)(ii) and Section 8.7(d) hereof, unless
      Section 8.7(b)(ii)(D) hereof applies, distributions are considered to
      begin on the Participant's Required Beginning Date. If Section
      8.7(b)(ii)(D) hereof applies, distributions are considered to begin on the
      date distributions are required to begin to the surviving spouse under
      Section 8.7(b)(ii)(A) hereof. If distributions under an annuity purchased
      from an insurance company irrevocably commence to the Participant before
      the Participant's Required Beginning Date (or to the Participant's
      surviving spouse before the date distributions are required to begin to
      the surviving spouse under Section 8.7(b)(ii)(A) hereof), the date
      distributions are considered to begin is the date distributions actually
      commence.

            (iii) Forms of Distribution. Unless the Participant's interest is
      distributed in the form of an annuity purchased from an insurance company
      or in a single sum on or before the Required Beginning Date, as of the
      first Distribution Calendar Year, distributions will be made in accordance
      with Sections 8.7(c) and (d) hereof. If the Participant's interest is
      distributed in the form of an annuity purchased from an insurance company,
      distributions thereunder will be made in accordance with the requirements
      of Code Section 401(a)(9) and the Treasury Regulations.

      (c)   REQUIRED MINIMUM DISTRIBUTIONS DURING PARTICIPANT'S LIFETIME.

            (i)   Amount of Required Minimum Distribution for Each Distribution
      Calendar Year. During the Participant's lifetime, the minimum amount that
      will be distributed for each Distribution Calendar Year is the lesser of:

                  (A)   the quotient obtained by dividing the Participant's
            Account Balance by the distribution period in the Uniform Lifetime
            Table set forth in Section 1.401(a)(9)-9 of the Treasury
            Regulations, using the Participant's age as of the Participant's
            birthday in the Distribution Calendar Year; or

                  (B)   if the Participant's sole Designated Beneficiary for the
            Distribution Calendar Year is the Participant's spouse, the quotient
            obtained by dividing the Participant's Account Balance by the number
            in the Joint and Last Survivor Table set forth in Section
            1.401(a)(9)-9 of the Treasury Regulations, using the Participant's
            and spouse's attained ages as of the Participant's and spouse's
            birthdays in the Distribution Calendar Year.

            (ii)  Lifetime Required Minimum Distributions Continue Through Year
      of Participant's Death. Required minimum distributions will be determined
      under this

                                       48
<PAGE>
      Section 8.7(c) beginning with the first Distribution Calendar Year and up
      to and including the Distribution Calendar Year that includes the
      Participant's date of death.

      (d)   REQUIRED MINIMUM DISTRIBUTIONS AFTER PARTICIPANT'S DEATH.

            (i)   Death on or After Date Distributions Begin.

                  (A)   Participant Survived by Designated Beneficiary. If the
            Participant dies on or after the date distributions begin and there
            is a Designated Beneficiary, the minimum amount that will be
            distributed for each Distribution Calendar Year after the year of
            the Participant's death is the quotient obtained by dividing the
            Participant's Account Balance by the longer of the remaining life
            expectancy of the Participant or the remaining life expectancy of
            the Participant's Designated Beneficiary, determined as follows:

                        (I)   The Participant's remaining life expectancy is
                  calculated using the age of the Participant in the year of
                  death, reduced by one for each subsequent year.

                        (II)  If the Participant's surviving spouse is the
                  Participant's sole Designated Beneficiary, the remaining life
                  expectancy of the surviving spouse is calculated for each
                  Distribution Calendar Year after the year of the Participant's
                  death using the surviving spouse's age as of the spouse's
                  birthday in that year. For Distribution Calendar Years after
                  the year of the surviving spouse's death, the remaining life
                  expectancy of the surviving spouse is calculated using the age
                  of the surviving spouse as of the spouse's birthday in the
                  calendar year of the spouse's death, reduced by one for each
                  subsequent calendar year.

                        (III) If the Participant's surviving spouse is not the
                  Participant's sole Designated Beneficiary, the Designated
                  Beneficiary's remaining life expectancy is calculated using
                  the age of the Beneficiary in the year following the year of
                  the Participant's death, reduced by one for each subsequent
                  year.

                  (B)   No Designated Beneficiary. If the Participant dies on or
            after the date distributions begin and there is no Designated
            Beneficiary as of September 30 of the year after the year of the
            Participant's death, the minimum amount that will be distributed for
            each Distribution Calendar Year after the year of the Participant's
            death is the quotient obtained by dividing the Participant's Account
            Balance by the Participant's remaining life expectancy calculated
            using the age of the Participant in the year of death, reduced by
            one for each subsequent year.

                                       49
<PAGE>
            (ii)  Death Before Date Distributions Begin.

                  (A)   Participant Survived by Designated Beneficiary. If the
            Participant dies before the date distributions begin and there is a
            Designated Beneficiary, the minimum amount that will be distributed
            for each Distribution Calendar Year after the year of the
            Participant's death is the quotient obtained by dividing the
            Participant's Account Balance by the remaining life expectancy of
            the Participant's Designated Beneficiary, determined as provided in
            Section 8.7(d)(i) hereof.

                  (B)   No Designated Beneficiary. If the Participant dies
            before the date distributions begin and there is no Designated
            Beneficiary as of September 30 of the year following the year of the
            Participant's death, distribution of the Participant's entire
            interest will be completed by December 31 of the calendar year
            containing the fifth anniversary of the Participant's death.

                  (C)   Death of Surviving Spouse Before Distributions to
            Surviving Spouse Are Required to Begin. If the Participant dies
            before the date distributions begin, the Participant's surviving
            spouse is the Participant's sole Designated Beneficiary, and the
            surviving spouse dies before distributions are required to begin to
            the surviving spouse under Section 8.7(b)(ii)(A) hereof, this
            Section 8.7(d)(ii) will apply as if the surviving spouse were the
            Participant.

      (e)   DEFINITIONS.

            (i)   "DESIGNATED BENEFICIARY." The individual who is designated as
      the Death Beneficiary under Subsection (b) of the definition of the term
      "Death Beneficiary" in Article II hereof and is the designated beneficiary
      under Code Section 401(a)(9) and Section 1.401(a)(9)-1, Q&A-4, of the
      Treasury Regulations.

            (ii)  "DISTRIBUTION CALENDAR YEAR." A calendar year for which a
      minimum distribution is required. For distributions beginning before the
      Participant's death, the first Distribution Calendar Year is the calendar
      year immediately preceding the calendar year which contains the
      Participant's Required Beginning Date. For distributions beginning after
      the Participant's death, the first Distribution Calendar Year is the
      calendar year in which distributions are required to begin under Section
      8.7(b)(ii) hereof. The required minimum distribution for the Participant's
      first Distribution Calendar Year will be made on or before the
      Participant's Required Beginning Date. The required minimum distribution
      for other Distribution Calendar Years, including the required minimum
      distribution for the Distribution Calendar Year in which the Participant's
      Required Beginning Date occurs, will be made on or before December 31 of
      that Distribution Calendar Year.

            (iii) "LIFE EXPECTANCY." Life expectancy as computed by use of the
      Single Life Table in Section 1.401(a)(9)-9 of the Treasury Regulations.

                                       50
<PAGE>
            (iv)  "PARTICIPANT'S ACCOUNT BALANCE." The Account balance as of the
      last Valuation Date in the calendar year immediately preceding the
      Distribution Calendar Year ("Valuation Calendar Year") increased by the
      amount of any Contributions made and allocated or forfeitures allocated to
      the Account balance as of dates in the Valuation Calendar Year after the
      Valuation Date and decreased by distributions made in the Valuation
      Calendar Year after the Valuation Date. The Account balance for the
      Valuation Calendar Year includes any amounts rolled over or transferred to
      the Plan either in the Valuation Calendar Year or in the Distribution
      Calendar Year if distributed or transferred in the Valuation Calendar
      Year.

            (iv)  "REQUIRED BEGINNING DATE." April 1 (or if such date is not a
      business day, the next preceding business day) of the calendar year
      following the later of (A) the calendar year in which the Participant
      attains age 70 -1/2, or (B) if the Participant is not a "5% owner" (within
      the meaning of Code Section 416) of the Employer with respect to the
      calendar year in which the Participant attains age 70 -1/2, the calendar
      year in which the Participant incurs a Termination of Employment.

8.8   WITHDRAWAL REQUESTED BY PARTICIPANT.

      (a)   Upon prior notice filed with the Plan Administrator, within such
period established by the Plan Administrator, a Participant may withdraw all or
a portion of his Account other than his Stock Bonus Portion as provided and in
the order set forth below:

            (i)   A Participant may withdraw all or a part of the portion of his
      Account attributable to After-Tax Contributions credited to his Account
      before January 1, 1987 (excluding earnings and appreciation thereon);

            (ii)  A Participant who has withdrawn all such pre-1987 After-Tax
      Contributions may withdraw all or a part of his Account attributable to
      the remaining After-Tax Contributions credited to his Account (including
      earnings and appreciation thereon);

            (iii) A Participant who has withdrawn all such pre-1987 and
      post-1986 After-Tax Contributions may withdraw all or part of his Account
      attributable to the earnings and appreciation on his pre-1987 After-Tax
      Contributions;

            (iv)  A Participant who has withdrawn all amounts attributable to
      his After-Tax Contributions may withdraw all or a part of his Account
      attributable to Rollover Contributions (including earnings and
      appreciation thereon);

            (v)   A Participant who has withdrawn all amounts attributable to
      his After-Tax Contributions may withdraw all or a part of his Account
      attributable to Matching Employer Contributions (including earnings and
      appreciation thereon); provided, however, that Matching Employer
      Contributions (including earnings and appreciation thereon) that have not
      been held in his Account for at least two (2) years may not be so
      withdrawn unless the Participant has been a Participant in the Plan for at
      least five (5)

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<PAGE>
      years. Withdrawals permitted pursuant to above provision shall first
      distribute all or a part of the shares of FedEx Corp. Stock attributable
      to Matching Employer Contributions from a Participant's Account before any
      shares of Company Stock attributable to Matching Employer Contributions
      from a Participant's Account are distributed. This Section 8.8(a)(v) shall
      not apply to any Safe Harbor Matching Contributions (including earnings
      and appreciation thereon);

            (vi)  A Participant who is at least fifty-nine and one-half (59 1/2)
      years old, who has withdrawn all amounts described in Paragraphs (i)
      through (v) of this Subsection may withdraw all or a part of his Account
      attributable to Before-Tax Contributions (excluding any income allocable
      thereto) and Safe Harbor Matching Contributions (including any income
      allocable thereto).

      (b)   Upon prior notice filed with the Plan Administrator, within such
period established by the Plan Administrator, a Participant may withdraw all or
a portion of his Stock Bonus Portion invested in FedEx Corp. Stock; provided,
however, that any portion of the Stock Bonus Portion invested in FedEx Corp.
Stock that has not been held in the Participant's Account for at least two (2)
years may not be withdrawn unless the Participant has been a Participant in the
Plan for at least five (5) years. For purposes of this Subsection, the
calculation of a Participant's years of participation in the Plan shall include
the Participant's year(s) of participation in the Roadway Services, Inc. Stock
Bonus Plan and Trust. Any withdrawal of FedEx Corp. Stock pursuant to this
Subsection shall be distributed in a single lump sum payment, in whole shares of
FedEx Corp. Stock in kind, plus cash equal to the value of any fractional
shares.

      (c)   Effective as of January 17, 2001, notwithstanding the foregoing
provisions of this Section 8.8, upon prior written notice filed with the Plan
Administrator, during the period commencing on January 17, 2001 and terminating
on July 17, 2002, an Employee may make withdrawals from his (i) Stock Bonus
Portion invested in the FedEx Stock Fund, (ii) After-Tax Contributions invested
in the FedEx Stock Fund, or (iii) Company Matching Contributions invested in the
FedEx Stock Fund. If an Employee makes a withdrawal from the FedEx Stock Fund in
accordance with this Section 8.8(c), such Employee's Stock Bonus Portion
invested in the FedEx Stock Fund shall first be reduced. If the amount of the
withdrawal exceeds such Employee's Stock Bonus Portion invested in the FedEx
Stock Fund, such Employee's After-Tax Contributions invested in the FedEx Stock
Fund shall be reduced. If the amount of the withdrawal exceeds such Employee's
Stock Bonus Portion invested in the FedEx Stock Fund and After-Tax Contributions
invested in the FedEx Stock Fund, such Employee's Company Matching Contributions
invested in the FedEx Stock Fund shall be reduced. Such withdrawals may be made
in cash or in kind, at the election of the Employee, provided, however, that
fractional shares may be distributed only in cash.

      (d)   Any withdrawal requested pursuant to this Section prior to a
Participant's Termination of Employment will continue to be processed pursuant
to this Section notwithstanding a Participant's subsequent Termination of
Employment.

                                       52
<PAGE>
8.9   SUSPENSION OF CONTRIBUTIONS UPON WITHDRAWAL.

      (a)   Any Participant who makes a withdrawal, pursuant to Section
8.8(a)(v) hereof, of any portion of his Account not invested in FedEx Corp.
Stock, a withdrawal pursuant to Section 8.8(a)(vi) hereof or has made a
withdrawal pursuant to similar provisions in the Roadway Services, Inc. Stock
Savings and Retirement Income Plan and Trust may not make any After-Tax
Contributions or have any Before-Tax Contributions or Matching Employer
Contributions made for him for six (6) months thereafter (twelve (12) months
with respect to such withdrawals made before July 1, 2002). If a Participant has
had his Before-Tax Contributions and/or After-Tax Contributions suspended during
the period beginning on July 1, 2001 and ending on June 30, 2002, pursuant to
this Section, his mandatory suspension period will expire on the later of (i)
the date that is six (6) months from the beginning of the mandatory suspension
period, or (ii) July 1, 2002.

      (b)   A Participant's Contributions that have been suspended pursuant to
this Section will resume as of the first pay period after the period of
suspension if he is an Eligible Employee on that date.

8.10  HARDSHIP WITHDRAWALS.

      (a)   A Participant who is an Employee and who has obtained all available
withdrawals under the Plan, other than Hardship withdrawals, and all nontaxable
loans currently available under all plans maintained by the Controlled Group,
may request, a withdrawal on account of Hardship of all or a portion of his
Account attributable to Before-Tax Contributions (excluding any income allocable
thereto). Upon making a determination that the Participant is entitled to a
withdrawal on account of Hardship, the Plan Administrator shall direct the
Trustee to distribute to such Participant from his Account, the amount of his
Before-Tax Contributions determined by the Plan Administrator to be necessary to
alleviate such Hardship (including amounts necessary to pay any taxes or
penalties reasonably anticipated to result from such withdrawal).

      (b)   If a withdrawal on account of Hardship is made to a Participant
pursuant to this Section, the following rules shall apply notwithstanding any
other provision of the Plan (or any other plan maintained by the Controlled
Group) to the contrary:

            (i)   the Participant's Before-Tax Contributions and After-Tax
      Contributions (or any comparable contributions to any other qualified or
      non-qualified plan, other than a health or welfare benefit plan,
      maintained by the Controlled Group) shall be suspended for a period of six
      (6) months (twelve (12) months with respect to Hardship withdrawals under
      this Section 8.10 made before July 1, 2002) following receipt of the
      Hardship withdrawal; and

            (ii)  for taxable years beginning before January 1, 2002, the amount
      of the Participant's Before-Tax Contributions (and any comparable
      contributions to any other plan maintained by the Controlled Group) for
      the Participant's taxable year immediately following the taxable year of
      the Hardship withdrawal shall not be in excess of the applicable limit
      under Code Section 402(g) for such next taxable year less the amount of

                                       53
<PAGE>
      such Participant's Before-Tax Contributions (and any comparable
      contributions to any other plan, other than health or welfare benefit
      plan, maintained by the Controlled Group) for the taxable year of the
      Hardship withdrawal.

      (c)   If a Participant has had his Before-Tax Contributions and/or
After-Tax Contributions suspended during the period beginning on July 1, 2001
and ending on June 30, 2002, pursuant to this Section, his mandatory suspension
period will expire on the later of (i) the date that is six (6) months from the
beginning of the mandatory suspension period, or (ii) July 1, 2002.

8.11  DISTRIBUTIONS PURSUANT TO QUALIFIED DOMESTIC RELATIONS ORDERS.

      Notwithstanding anything in the Plan to the contrary, if a qualified
domestic relations order (as defined in Code Section 414(p)) so provides, the
portion of the Participant's Account payable to the alternate payee(s) (as
defined in Code Section 414(p)) may be paid to such alternate payee(s) at any
time on or after the date on which the Plan Administrator receives such order,
regardless of whether the Participant is entitled to a distribution from the
Plan at such time. The portion of the Participant's Account so payable shall be
valued on the Valuation Date specified in such order.

8.12  DIRECT ROLLOVERS.

      (a)   If a Participant, Spouse or alternate payee (as defined in Code
Section 414(p)) is eligible to receive a distribution or withdrawal from the
Plan that constitutes an Eligible Rollover Distribution and such individual
elects to have all or a portion (but not less than $500) of such distribution or
withdrawal paid directly to an Eligible Retirement Plan and specifies the
Eligible Retirement Plan to which the distribution or withdrawal is to be paid,
such distribution or withdrawal (or portion thereof) shall be made in the form
of a direct rollover to the Eligible Retirement Plan so specified. A direct
rollover is a payment made by the Plan directly to the Eligible Retirement Plan.
The Plan Administrator shall prescribe reasonable procedures for elections to be
made pursuant to this Section.

      (b)   The Plan Administrator shall provide a Participant, Spouse or
alternate payee who will receive an Eligible Rollover Distribution with a
written notice describing his rights under this Section, such other information
required to be provided under Code Section 402(f), and, if applicable, the
information required under Section 8.1(b) hereof no less than thirty (30) days
nor more than ninety (90) days before the date scheduled for payment of such
Distribution; provided, however, that a Participant, Spouse or alternate payee
may elect to waive such 30-day requirement if (i) he is clearly informed by the
Plan Administrator of his rights, if applicable, to a period of at least thirty
(30) days after receiving the written notice to consider whether or not to elect
a distribution or withdrawal and/or to elect a particular form of benefit and
(ii), after receiving the written notice, he affirmatively elects the
distribution or withdrawal. Nothing contained in this Subsection shall be
construed to accelerate the timing of a distribution or withdrawal otherwise
provided in the Plan.

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<PAGE>
      (c)   This Section 8.12 is intended to comply with the provisions of Code
Section 401(a)(31) and shall be interpreted in accordance with such Code Section
and Treasury regulations issued thereunder.

8.13  LOANS.

      The following loan provisions are effective as of July 1, 1998.

      (a)   A Participant who is either an Employee of an Employer or a
Controlled Group Member or a "party-in-interest" (as defined in ERISA Section
3(14)) may apply on a form or in a manner provided by the Plan Administrator for
a loan from his Account. Effective as of July 1, 1998, each loan shall be
charged against the Participant's Account in the following order: first, against
the Participant's Rollover Contributions Sub-Account (if any); second, to the
extent necessary, against the Participant's Qualified Nonelective Contributions
Sub-Account (if any); third, to the extent necessary, against the Participant's
Matching Employer Contributions Sub-Account (if any); fourth, to the extent
necessary, against the Participant's Profit Sharing Contributions Sub-Account
(if any); fifth, to the extent necessary, against the Participant's Before-Tax
Contributions Sub-Account, and finally, to the extent necessary, against the
Participant's Stock-Bonus Sub-Account.

      (b)   Each loan shall be in an amount which is not less than $1,000. A
Participant may (i) have only one loan outstanding at any time, and (ii) for
periods from July 1, 1998 through December 31, 2002, be granted only two loans
in any twelve (12) month period. The maximum loan to any Participant (when added
to the outstanding balance of all other loans to the Participant from all
qualified employer plans (as defined in Code Section 72(p)(4)) of the Controlled
Group) shall be an amount which does not exceed the lesser of:

            (i)   $50,000, reduced by the excess (if any) of (A) the highest
      outstanding balance of such other loans during the one-year period ending
      on the day before the date on which such loan is made, over (B) the
      outstanding balance of such other loans on the date on which such loan is
      made; or

            (ii)  50% of the value of such Participant's Account on the date on
      which such loan is made.

      (c)   Effective January 1, 2003, for each Participant for whom a loan is
authorized pursuant to this Section, the Plan Administrator shall direct the
Trustee (i) to liquidate, within each of the Participant's Subaccounts that will
provide funds for the loan, as provided in (a) above, the Participant's
interests in the Investment Funds on a pro rata basis to the extent necessary to
provide funds for the loan, (ii) to disburse such funds to the Participant upon
the Participant's completion of such loan application and other documentation as
the Plan Administrator shall prescribe, and (iii) to establish and maintain a
separate account receivable within the Participant's Account which initially
shall be in the amount of the loan and shall be reduced as payments of principal
and interest on the loan are made. All payments of principal and interest by a
Participant shall be credited against the foregoing account receivable, and then

                                       55
<PAGE>
invested in the Investment Funds pursuant to the provisions regarding the
investment of Contributions under Section 7.5 hereof.

      (d)   Effective January 1, 2003, loans made pursuant to this Section:

            (i)   Shall be made available to all Participants on a reasonably
      equivalent basis;

            (ii)  Shall not be made available to Highly Compensated Employees in
      a percentage amount greater than the percentage amount made available to
      other Participants;

            (iii) Shall be secured by the account receivable described in (c)
      above; and

            (iv)  Shall be subject to the following terms and conditions:

                  (A)   The Loan shall carry a reasonable rate of interest,
            determined by the Plan Administrator, which provides the Plan with a
            return commensurate with the prevailing interest rate charged by
            persons in the business of lending money for loans which would be
            made under similar circumstances;

                  (B)   The loan shall be repaid within a specified period of
            time, which period of time shall not be less than one (1) year, nor
            more than five (5) years, from the date on which the loan is made;

                  (C)   The loan shall be repaid in equal payments over the term
            of the loan, with payments not less frequently than monthly;

                  (D)   With respect to a Participant who is an Employee, the
            loan shall be repaid pursuant to authorization by the Participant of
            equal payroll deductions over the repayment period sufficient to
            amortize fully the loan within the repayment period and such payroll
            deductions shall not result in a reduction of the Participant's
            compensation below a reasonable level, as determined by the Plan
            Administrator;

                  (E)   The loan shall be prepayable in whole or in specified
            increments (as determined from time-to-time by the Plan
            Administrator) at any time without penalty; and

                  (F)   The loan shall become due and payable 90 days after the
            first to occur of the following default events (a "Default"):

                        (1)   the Participant's failure to make required
                  payments on the loan;

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<PAGE>
                        (2)   in the case of a Participant who is an Employee at
                  the time the loan is made and who ceases to be a "party in
                  interest" within the meaning of ERISA Section 3(14), upon the
                  Participant's voluntary Termination of Employment, involuntary
                  Termination of Employment, death or retirement;

                        (3)   in the case of a Participant who is not an
                  Employee at the time the loan is made, commencement of
                  distribution of his Account; or

                        (4)   the filing of a petition, the entry of an order or
                  the appointment of a receiver, liquidator, trustee or other
                  person in a similar capacity, with respect to the Participant,
                  pursuant to any state or federal law relating to bankruptcy,
                  moratorium, reorganization, insolvency or liquidation, or any
                  assignment by the Participant for the benefit of his
                  creditors.

      (e)   Effective January 1, 2003, notwithstanding any other provision of
the Plan, a loan made pursuant to this Section shall be a first lien against the
account receivable described in (c) above. Any amount of principal or interest
due and unpaid on the loan at the time of any Default on the loan shall be
satisfied by deduction from such account receivable, and shall be deemed to have
been distributed to the Participant immediately upon such Default.

      (f)   All principal and interest paid with respect to any loan shall be
allocated to the Sub-Accounts that funded such loan, pro rata based on the
portion of the loan that was funded by each such Sub-Account. Effective as of
July 1, 1998, all loan repayments shall be invested in the Investment Funds
pursuant to the Participant's direction under Sections 7.5, 7.6, 7.7 and 7.8
hereof, except that 20% of all loan repayments of amounts disbursed from the
FedEx Stock Fund shall be invested in the Company Stock Fund and the remaining
80% of all loan repayments of amounts disbursed from the FedEx Stock Fund shall
be invested in the Investment Funds pursuant to the Participant's direction
under Sections 7.5, 7.6, 7.7 and 7.8 hereof.

      (g)   Effective as of July 1, 1996, notwithstanding any other provision of
the Plan, loan repayments will be suspended under the Plan as permitted under
Code Section 414(u)(4) for Participants on a leave of absence for "qualified
military service" (as defined in Section 12.15 hereof).

                     ARTICLE IX.       ADMINISTRATION OF THE
                       PLAN AND FIDUCIARY RESPONSIBILITIES

9.1   RESPONSIBILITY FOR PLAN ADMINISTRATION.

      Except to the extent that particular responsibilities are otherwise
assigned or delegated to other Fiduciaries under the Plan, the Plan
Administrator shall be responsible for the administration of the Plan. Each
other Fiduciary shall have only such powers, duties, responsibilities and
authorities as are specifically conferred upon him pursuant to provisions of

                                       57
<PAGE>
the Plan. Any person may serve in more than one fiduciary capacity with respect
to the Plan or Trust Fund, if pursuant to the Plan, he is assigned or delegated
any multiple fiduciary capacities.

9.2      NAMED FIDUCIARIES.

      (a)   For the purposes of the Plan, the Named Fiduciaries shall be as
follows: (a) the Plan Administrator, (b) the Administrative Committee for
periods prior to January 1, 2003, (c) the Investment Committee for periods after
December 10, 2003, and (d) the Trustee. For purposes of Sections 7.10 and 7.11
hereof only, Participants and their Beneficiaries shall be Named Fiduciaries.

      (b)   The Company may, by written instrument, designate any other person
or persons as a Named Fiduciary or Named Fiduciaries to perform functions
specified in such instrument that relate to the administration of the Plan,
provided such designee accepts such designation. Such a designation may be
terminated at any time by notice from the Company to the designee or by notice
from the designee to the Company.

9.3   DELEGATION OF FIDUCIARY RESPONSIBILITIES BY PLAN ADMINISTRATOR.

      (a)   Each of the Plan Administrator and, for periods prior to January 1,
2003, the Administrative Committee, may to the extent permitted by law, delegate
to any person or persons any one or more of its powers, functions, duties and/or
responsibilities with respect to the Plan or the Trust Fund.

      (b)   Any delegation pursuant to Subsection (a) of this Section, (i) shall
be signed on behalf of the Plan Administrator or Administrative Committee, as
applicable, and be delivered to and accepted in writing by the delegatee, (ii)
shall contain such provisions and conditions relating to such delegation as the
Plan Administrator or Administrative Committee, as applicable, deems
appropriate, (iii) shall specify the powers, functions, duties and/or
responsibilities therein delegated, (iv) may be amended from time to time by
written agreement signed on behalf of the Plan Administrator or Administrative
Committee, as applicable, and by the delegatee and (v) may be revoked (in whole
or in part) at any time by written notice from one party to the other. A fully
executed copy of any instrument relating to any delegation (or revocation of any
delegation) under the Plan shall be filed with each of the Named Fiduciaries.

9.4   IMMUNITIES.

Except as otherwise provided in Section 9.5 hereof or by applicable law, (a) no
Fiduciary shall have the duty to discharge any duty, function or responsibility
that is specifically assigned exclusively to another Fiduciary or Fiduciaries by
the terms of the Plan or is delegated exclusively to another Fiduciary or
Fiduciaries pursuant to procedures for such delegation provided for in the Plan;
(b) no Fiduciary shall be liable for any action taken or not taken with respect
to the Plan or Trust Fund except for his own negligence or willful misconduct;
(c) no Fiduciary shall be personally liable upon any contract or other
instrument made or executed by him or on his behalf in the administration of the
Plan or Trust Fund; (d) no Fiduciary shall be liable for the neglect, omission
or wrongdoing of another Fiduciary; and (e) any Fiduciary may

                                       58
<PAGE>
rely and shall be fully protected in acting upon the advice of counsel, who may
be counsel for any Controlled Group Member, upon the records of a Controlled
Group Member, upon the opinion, certificate, valuation, report, recommendation
or determination of the certified public accountants appointed to audit a
Controlled Group Member's financial statements, or upon any certificate,
statement or other representation made by an Employee, a Participant, a
Beneficiary or the Trustee concerning any fact required to be determined under
any of the provisions of the Plan.

9.5   LIMITATION ON EXCULPATORY PROVISIONS.

      Notwithstanding any other provision of the Plan, no provision of the Plan
shall be construed to relieve (or have the effect of relieving) any Fiduciary
from any responsibility or liability for any obligation, responsibility or duty
imposed on such Fiduciary by Part 4 of Subtitle B of Title 1 of ERISA.

9.6   ADMINISTRATIVE COMMITTEE.

      (a)   The Plan Administrator may establish an Administrative Committee to
which it may delegate its responsibilities. (For periods prior to December 11,
2003, the Company was required to appoint the Administrative Committee.) The
Administrative Committee shall consist of two (2) or more Employees or officers
of the Company who have accepted appointment thereto. The members of the
Administrative Committee shall serve at the discretion of the Plan Administrator
and may resign by delivering written resignation to the Plan Administrator.
Vacancies on the Administrative Committee arising for any reason shall be filled
by the Plan Administrator, provided that any vacancy unfilled for thirty (30)
days may be filled by a majority vote of the remaining members of the
Administrative Committee.

      (b)   Members of the Administrative Committee (or any other person to whom
the Plan Administrator has delegated responsibility hereunder) shall not be
disqualified from acting because of any interest, benefit or advantage, inasmuch
as it is recognized that such members (or such other person) may be Employees of
the Employer and Participants in the Plan; provided, however, that no member of
the Administrative Committee (and no Plan Administrator delegate) shall have any
right to vote upon or decide any matter relating solely to his own rights under
the Plan.

      (c)   The Administrative Committee may (i) delegate to one or more of its
members the right to act on its behalf in any one or more matters connected with
the administration, management and interpretation of the Plan, and (ii) appoint
from its members such subcommittees (of one or more such members), with such
powers, as it shall determine.

      (d)   The Administrative Committee (or any other person to whom the Plan
Administrator has delegated responsibilities hereunder) may employ such counsel
(including legal counsel who may be counsel for any Controlled Group Member) and
agents and such clerical and other services as it may require in carrying out
the provisions of the Plan, and shall charge the fees, charges and costs
resulting from such employment as an expense to the Trust Fund unless the
Company makes such payments directly. Members of the Administrative

                                       59
<PAGE>
Committee or any subcommittee thereof (or any Plan Administrator delegate) shall
be fully protected in acting or refraining to act in accordance with the advice
of legal or other counsel.

      (e)   The members of the Administrative Committee and their delegates (and
any person to whom the Plan Administrator has delegated responsibilities
hereunder), shall be entitled to rely upon all tables, valuations, certificates,
opinions and reports furnished by any actuary, accountant, trustee, insurance
company, counsel or other expert who is engaged by the Administrative Committee
(or any Plan Administrator delegate), and the members of the Administrative
Committee and their delegates (and any Plan Administrator delegate) shall be
fully protected in respect of any action taken or suffered by them in good faith
in reliance thereon, and all action so taken or suffered shall be conclusive
upon all persons affected thereby.

      (f)   The Administrative Committee may allocate fiduciary or other
responsibilities among its members, and to the extent permitted by law, to
designate persons and committees other than its members to carry out fiduciary
or other responsibilities under the Plan.

      (g)   The Administrative Committee, and any person designated by it
pursuant to Subparagraph (f) above to whom such power is granted, may employ one
or more persons to render advice with regard to any responsibility the
Administrative Committee or such person has under the Plan.

      (h)   Except to the extent otherwise provided by law, if any duty or
responsibility of the Administrative Committee has been allocated or delegated
to any other person in accordance with any provision of this Plan, then the
Administrative Committee will not be liable for any act or omission of such
person in carrying out such duty or responsibility.

      (i)   The members of the Administrative Committee (and any Plan
Administrator delegate) shall serve without compensation (other than
compensation received as Employees of the Company or any Controlled Group
Member), but all reasonable expenses of the Administrative Committee (and any
Plan Administrator delegate) shall be paid from the Trust Fund unless the
Company makes such payments directly.

9.7   INTERPRETATION OF THE PLAN AND FINDINGS OF FACT.

      (a)   The Plan Administrator shall have sole and absolute discretion to
interpret the provisions of the Plan (including, without limitation, by
supplying omissions from, correcting deficiencies in, or resolving
inconsistencies or ambiguities in, the language of the Plan), to make factual
findings with respect to any issue arising under the Plan, to determine the
rights and status under the Plan of Participants and other persons, to decide
disputes arising under the Plan and to make any determinations and findings
(including factual findings) with respect to the benefits payable thereunder and
the persons entitled thereto as may be required for the purposes of the Plan. In
furtherance of, but without limiting the foregoing, the Plan Administrator is
hereby granted the following specific authorities, which it shall discharge in
its sole and absolute discretion in accordance with the terms of the Plan (as
interpreted, to the extent necessary, by the Plan Administrator:

                                       60
<PAGE>
            (i)   to resolve all questions (including factual questions) arising
      under the provisions of the Plan as to any individual's entitlement to
      become a Participant;

            (ii)  to determine the amount of benefits, if any, payable to any
      person under the Plan (including, to the extent necessary, making any
      factual findings with respect thereto), and

            (iii) to conduct the claims procedures specified in Article X
      hereof.

      (b)   All decisions of the Plan Administrator as to the facts of any case,
as to the interpretation of any provision of the Plan or its application to any
case, and as to any other interpretative matter or other determination or
question under the Plan shall be final and binding on all parties affected
thereby, subject to the provisions of Article X hereof.

9.8   INVESTMENT COMMITTEE.

      (a)   Notwithstanding any other provision of the Plan, for periods after
December 10, 2003, the Company (as Plan sponsor) may establish an Investment
Committee to manage and invest the Trust Fund. The Investment Committee shall
consist of two (2) or more Employees or officers of the Company who have
accepted appointment thereto. The members of the Investment Committee shall
serve at the discretion of the Company and may resign by delivering written
resignation to the Company. Vacancies on the Investment Committee arising for
any reason shall be filled by the Company.

      (b)   Except as otherwise provided in the Trust Agreement, or by the
Company, the Investment Committee shall have exclusive authority and discretion
to manage and direct the investment of the Trust Fund, subject to the
Participants' direction of the investment of their Accounts pursuant to Article
VII hereof. Without limiting the generality of the foregoing sentence, the
Investment Committee shall have the authority (i) to appoint an investment
manager or managers (within the meaning of ERISA Section 3(38)) with respect to
all or any part of the Trust Fund to the extent permitted by the terms of the
Trust Agreement, (ii) to allocate the money and property constituting the Trust
Fund among different Investment Funds, and (iii) to monitor the performances of
the Trustee, any investment managers and the Investment Funds and to report on
such performances to the Company. The foregoing list of powers is not intended
to be either complete or exclusive, and the Investment Committee shall, in
addition, have such powers as it may determine to be necessary for the
performance of its duties under the Plan.

      (c)   The Investment Committee may (i) delegate to one or more of its
members the right to act on its behalf in any one or more matters connected with
the management and investment of the Trust Fund, and (ii) appoint from its
members such subcommittees (of one or more such members), with such powers, as
it shall determine.

      (d)   The Investment Committee may employ such counsel (including legal
counsel who may be counsel for any Controlled Group Member) and agents and such
clerical and other services as it may require in carrying out the provisions of
the Plan, and shall charge the fees, charges and costs resulting from such
employment as an expense to the Trust Fund unless the

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Company makes such payments directly. Members of the Investment Committee or any
subcommittee thereof shall be fully protected in acting or refraining to act in
accordance with the advice of legal or other counsel.

      (e)   The members of the Investment Committee and persons delegated
responsibilities by the Investment Committee, shall be entitled to rely upon all
tables, valuations, certificates, opinions and reports furnished by any actuary,
accountant, trustee, insurance company, counsel or other expert who is engaged
by the Investment Committee, and the members of the Investment Committee and
their delegates shall be fully protected in respect of any action taken or
suffered by them in good faith in reliance thereon, and all action so taken or
suffered shall be conclusive upon all persons affected thereby.

      (f)   The Investment Committee may allocate fiduciary or other
responsibilities among its members, and to the extent permitted by law, to
designate persons and committees other than its members to carry out fiduciary
or other responsibilities under the Plan.

      (g)   The Investment Committee, and any person designated by it pursuant
to Subparagraph (f) above to whom such power is granted, may employ one or more
persons to render advice with regard to any responsibility the Investment
Committee or such person has under the Plan.

      (h)   Except to the extent otherwise provided by law, if any duty or
responsibility of the Investment Committee has been allocated or delegated to
any other person in accordance with any provision of this Plan, then the
Investment Committee will not be liable for any act or omission of such person
in carrying out such duty or responsibility.

      (i)   The members of the Investment Committee shall serve without
compensation (other than compensation received as Employees of the Company or
any Controlled Group Member), but all reasonable expenses of the Investment
Committee shall be paid from the Trust Fund unless the Company makes such
payments directly.

9.9   OPERATION OF THE ADMINISTRATIVE COMMITTEE OR THE INVESTMENT COMMITTEE.

      (a)   (i)   Each of the Administrative Committee and the Investment
      Committee shall act only by a majority vote of its members present at a
      meeting at which a quorum is present or by the unanimous written consent
      of all of its members without a meeting. A quorum for any meeting of the
      Administrative Committee or Investment Committee shall be a majority of
      its members in office at that time. No member shall act by proxy unless by
      proxy given in writing to another Administrative Committee or Investment
      Committee member.

            (ii)  Each of the Administrative Committee and Investment Committee
      may appoint a chairman from among its members and a secretary. It shall
      authorize one (1) or more of its members to execute any document on its
      behalf, in which event the Administrative Committee or Investment
      Committee, as applicable, shall notify the other Committee and the Trustee
      in writing of such action and the names of its members so designated. The
      other Committee and the Trustee thereafter shall accept and rely upon

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      any document executed by such members as representing action by the
      Administrative Committee or the Investment Committee, as applicable, until
      the Administrative Committee or Investment Committee, as applicable, shall
      file with the other Committee and the Trustee a written revocation of such
      designation.

            (iii) Consistent with the foregoing, each of the Administrative
      Committee and the Investment Committee may adopt such by-laws and
      regulations as it deems desirable for the conduct of its affairs and it
      may appoint such accountants, counsel, specialists and other persons as it
      deems necessary or desirable in connection with its duties and
      responsibilities under the Plan.

      (b)   Each of the Administrative Committee and the Investment Committee
shall keep a record of all of its proceedings and acts and all such books of
account, records and other data as may be necessary for administration of the
Plan as provided herein. The Administrative Committee or the Investment
Committee, as applicable, shall notify the other Committee, the Plan
Administrator, Company or Trustee, as applicable, of any action that it takes
and, when necessary or required, any other interested person.

9.10  PLAN ADMINISTRATOR'S ACTIONS.

      Any periods of time or procedures required to be established by the Plan
Administrator pursuant to this Plan shall be established in a uniform
nondiscriminatory manner.

9.11  CORRECTION OF ERRORS.

      Notwithstanding anything herein to the contrary, the Plan Administrator,
the Administrative Committee and/or the Investment Committee may take such
actions or permit such actions to be taken as are necessary and reasonably
calculated to correct an administrative error made by an Employer, the Plan
Administrator or any other Fiduciary.

                          ARTICLE X. CLAIMS PROCEDURES

10.1  CLAIMS.

      (a)   Any Participant or Beneficiary (a "Claimant") who believes that he
is entitled to receive a benefit under the Plan that he has not received may
file a claim, in the form and in the manner prescribed by the Plan
Administrator. The Claimant may have representation by a duly authorized
representative at any time.

      (b)   If such claim is wholly or partially denied, within a reasonable
period of time (but not more than ninety (90) days) after such claim is filed
(plus an additional period of up to ninety (90) days if the Plan Administrator
determines that special circumstances require an extension of time for
processing the claim and if notice of the extension indicating the special
circumstances requiring the extension of time and the date by which the Plan
Administrator expects to render its decision is given to the Claimant within the
first ninety (90) day period), the Plan Administrator

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shall cause written notice to be provided to the Claimant of the total or
partial denial of such claim. Such notice shall be written in a manner
calculated to be understood by the Claimant and shall advise the Claimant of:

            (i)   The specific reason(s) for the denial of the claim;

            (ii)  Specific reference(s) to pertinent Plan provisions on which
      the denial of the claim was based;

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

            (iv)  An explanation of the review procedures specified in Section
      10.2 hereof and the time limits applicable to such procedures, including a
      statement of the Claimant's right to bring a civil action under ERISA
      Section 502 in the event of an adverse determination on review.

10.2  REVIEW OF CLAIMS.

      (a)   Within sixty (60) days after the Claimant receives written denial of
his claim, the Claimant may appeal such denial by filing with the Plan
Administrator a written request for a review of such claim (on the form provided
by the Plan Administrator). In connection with such review, the Claimant shall
be entitled to (i) submit written comments, documents, records and other
information relating to his claim, (ii) receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other
information relevant to the Claimant's claim, and (iii) a review by the Plan
Administrator that takes into account all comments, documents, records and other
information submitted by the Claimant relating to his claim, without regard to
whether such information was submitted or considered in the initial benefit
determination. If the Claimant does not file such a request with the Plan
Administrator within such sixty (60) day period, the Claimant shall be
conclusively presumed to have accepted as final and binding the initial decision
of the Plan Administrator on his claim.

      (b)   If such an appeal is so filed within such sixty (60) days, the Plan
Administrator shall (i) conduct a full and fair review of such claim and (ii)
provide to the Claimant a written decision on the matter based on the facts and
pertinent provisions of the Plan within a reasonable period of time (but not
more than sixty (60) days) after the receipt of the request for review unless
the Plan Administrator determines that special circumstances require an
extension of time, in which case such decision shall be rendered not later than
one hundred twenty (120) days after receipt of such request. If an extension of
time for review is required, written notice of the extension indicating the
special circumstances requiring the extension of time and the date by which the
Plan Administrator expects to render its decision shall be furnished to the
Claimant within the initial sixty (60) day period. In the event an extension is
granted due to the Claimant's failure to submit information necessary to decide
a claim, the period for making the benefit determination shall be tolled from
the date on which the notice of extension is sent to the Claimant until the date
on which the Claimant responds to the request for additional information.

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      (c)   Such decision, if it is adverse to the Claimant, shall be written in
a manner calculated to be understood by the Claimant, and such written decision
shall (i) state the specific reason(s) for the decision, (ii) make specific
reference(s) to pertinent provisions of the Plan on which the decision is based,
(iii) contain a statement that the Claimant is entitled to receive, upon request
and free of charge, reasonable access to, and copies of, all documents, records
and other information relevant to the Claimant's claim for benefits; and (iv)
contain a statement of the Claimant's right to bring an action under ERISA
Section 502(a).

      (d)   During such full review, the Claimant or his duly authorized
representative shall be given an opportunity to review documents that are
pertinent to the Claimant's claim and to submit issues and comments in writing.

      (e)   To the extent that a Named Fiduciary is appointed to conduct the
review procedure described above, such Named Fiduciary shall have the same
powers to interpret the Plan and make factual findings with respect thereto as
are granted to the Plan Administrator under Section 9.7 hereof.

                      ARTICLE XI. AMENDMENT AND TERMINATION

11.1  RIGHT TO AMEND OR TERMINATE.

      The Company has reserved, and does hereby reserve, the right at any time,
without the consent of any other Employer or of the Participants, Beneficiaries
or any other person, (a) to terminate the Plan, in whole or in part or as to any
or all of the Employers or as to any designated group of Employees, Participants
and their Beneficiaries, or (b) to amend the Plan, in whole or in part. No such
termination or amendment shall decrease the amount of Matching Employer
Contributions to be made by an Employer on account of any period preceding such
termination. The Plan may be amended only by the Company. No amendment shall
increase the duties or liabilities of the Trustee without the Trustee's written
consent.

11.2  PROCEDURE FOR TERMINATION OR AMENDMENT.

      Any termination or amendment of the Plan pursuant to Section 11.1 hereof
shall be expressed in an instrument executed by the Company and shall become
effective as of the date designated in such instrument or, if no date is so
designated, on the date of its execution.

11.3  DISTRIBUTION UPON TERMINATION.

      If the Plan shall be terminated by the Company as to all Employers,
Before-Tax Contributions, After-Tax Contributions and Matching Employer
Contributions to the Plan shall cease and, as soon as practicable after such
termination, the Trustee shall make distribution (if such distribution is
permitted by applicable law) to each Employee as if the Plan had not been
terminated.

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11.4  AMENDMENT CHANGING VESTING SCHEDULE.

      (a)   If any Plan amendment changes any vesting schedule under the Plan,
each Participant having not less than three (3) years of service shall be
permitted to elect, during the election period described in Subsection (b) of
this Section, to have his nonforfeitable percentage computed under the Plan
without regard to such amendment.

      (b)   Such election period shall begin on the date the Plan amendment is
adopted and shall end no earlier than the latest of the following dates: (i) the
date that is sixty (60) days after the day the Plan amendment is adopted, (ii)
the date that is sixty (60) days after the day the Plan amendment becomes
effective, or (iii) the date that is sixty (60) days after the day the
Participant is issued written notice of the Plan amendment by the Plan
Administrator or the Company.

      (c)   For purposes of Subsection (a) of this Section, a Participant shall
be considered to have completed three (3) years of service if such Participant
has completed three (3) years of service, whether or not consecutive, without
regard to the exceptions of Code Section 411(a)(4), prior to the expiration of
the election period described in Subsection (b) of this Section.

      (d)   Notwithstanding the foregoing, the election provided in Subsection
(a) of this Section will not be provided to any Participant whose nonforfeitable
percentage under the Plan, as amended, cannot be less than such percentage
determined without regard to such amendment.

11.5  NONFORFEITABLE AMOUNTS.

      Notwithstanding any other provision of the Plan, upon the termination or
partial termination of the Plan or upon complete discontinuance of contributions
under the Plan, the rights of all Employees to benefits accrued to the date of
such termination or partial termination or discontinuance, to the extent then
funded, or the amounts credited to the Employees' Accounts, shall be
nonforfeitable.

11.6  PROHIBITION ON DECREASING ACCRUED BENEFITS.

      No amendment to the Plan (other than an amendment described in Code
Section 412(c)(8)) shall have the effect of decreasing the accrued benefit of
any Participant. For purposes of the preceding sentence, a Plan amendment that
has the effect of (a) eliminating or reducing an early retirement benefit or a
retirement-type subsidy (as defined in Treasury regulations) or (b) eliminating
an optional form of benefit (except as permitted by any such regulations) with
respect to benefits attributable to service before the amendment, shall be
treated as decreasing accrued benefits; provided, however, that in the case of a
retirement-type subsidy this sentence shall apply only with respect to a
Participant who satisfies (either before or after the amendment) the
preamendment conditions for the subsidy.

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                           ARTICLE XII. MISCELLANEOUS

12.1  EMPLOYMENT NOT AFFECTED.

      Nothing contained in this Plan shall constitute or be construed as a
contract of employment between any Employer and any Employee or Participant and
all Employees shall remain subject to discipline, discharge and layoff to the
same extent as if the Plan had never gone into effect. An Employer, by adopting
the Plan, making contributions to the Trust Fund or taking any other action with
respect to the Plan does not obligate itself to continue the employment of any
Participant or Employee for any period or, except as expressly provided in the
Plan, to make any payments into the Trust Fund.

12.2  INALIENABILITY.

      No right or interest of any kind of a Participant or Beneficiary in the
Trust Fund may be assigned, alienated, transferred, pledged or anticipated or
subject to encumbrance, garnishment, attachment, execution or levy of any kind,
voluntary or involuntary, or any other legal or equitable process and any
attempt so to assign, alienate, transfer, pledge, anticipate, encumber, garnish,
attach or levy shall be void. Notwithstanding the foregoing, this Section shall
not preclude the Trustee from complying with a qualified domestic relations
order (as defined under Code Section 414(p)). The Plan Administrator shall
develop procedures to determine whether a domestic relations order is qualified
under Code Section 414(p). Effective for judgments, orders decrees or
settlements issued on or after August 5, 1997, notwithstanding any provision of
the Plan to the contrary, the Plan shall honor a judgment, order, decree or
settlement providing for the offset of all or a part of a Participant's benefit
under the Plan, to the extent permitted under Code Section 401(a)(13)(C);
provided that the requirements of Code Section 401(a)(13)(C)(iii) relating to
the protection of the Participant's spouse (if any) are satisfied.

12.3  INCAPACITY TO RECEIVE PAYMENT.

      In the event that the Plan Administrator finds that any Participant or
Beneficiary entitled to receive benefits hereunder is (at the time such benefits
are payable) unable to care for his affairs because of a physical, mental, or
legal incompetence, the Plan Administrator may, in its sole discretion, cause
any payment due him, for which prior claim has not been made by a duly qualified
guardian or other legal representative, to be paid to such one or more persons
as may be chosen by the Plan Administrator from among the following: the
institution maintaining or responsible for the maintenance of such Participant
or Beneficiary, his spouse, his children, or other relatives by blood or
marriage. Any payment made pursuant to this Section shall be a complete
discharge of all liability under the Plan with respect of such payment.

12.4  UNCLAIMED BENEFITS.

      Subject to the provisions of Article X, when an Account is distributable
to any distributee and is unclaimed by either a Participant, a former
Participant or a Beneficiary, the Plan Administrator, upon request of the
Trustee or at its own instance, shall mail by registered or certified mail to
such distributee (at his last known address) a written demand for his current

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address, or for satisfactory evidence of his continued life, or both. If such
distributee shall fail to furnish such information to the Plan Administrator
within five (5) years from the date of such demand, then such Account shall be
forfeited and applied to reduce Matching Employer Contributions required under
the Plan; provided, however, that such Account shall be reinstated (without
provision for interest or earnings thereon) upon a proper claim therefore made
by the Participant or if applicable, the Beneficiary.

12.5  DISSOLUTION, MERGER OR CONSOLIDATION OF THE COMPANY.

      In the event of a dissolution, merger or consolidation of the Company,
provision may be made by the successor person for the continuance of this Plan.
In such event, such successor person shall be substituted as the Company under
the Plan upon the execution of an instrument authorizing such substitution,
executed on behalf of the Company and such successor. A copy of such instrument,
accompanied by a duly certified copy of a resolution of the Board authorizing
such substitution, shall be delivered to the Trustee and shall constitute
authority to the Trustee to recognize such substituted person in place of the
Company hereunder.

12.6  ACTION BY THE COMPANY.

      Wherever the Company is authorized to act under the Plan (including but
not limited to any delegation of its fiduciary powers and responsibilities under
the Plan), such action shall be taken, unless otherwise provided in the Plan, by
written instrument executed by an officer of the Company. The Trustee may rely
on any instrument so executed as being validly authorized and as properly
evidencing the action of the Company.

12.7  LIMITATION TO RIGHTS CREATED UNDER THE PLAN.

      Except as otherwise provided by controlling law, neither the Company, any
Employer, the Trustee, the Plan Administrator nor a Participant shall have any
legal or equitable right or claim against the other unless the same is
specifically provided for herein or conferred by affirmative action in
accordance herewith.

12.8  RECOURSE AGAINST OFFICERS, DIRECTORS OR STOCKHOLDERS.

      Except as otherwise provided by controlling law, no recourse under any
provision of this Plan shall be had against an agent, Employee, officer,
director or stockholder of a Controlled Group Member, past, present or future;
and all such agents, Employees, officers, directors and stockholders are hereby
released from all liability hereunder, as a condition of and a part of the
consideration for the execution hereof, the contributions hereunder by the
Company or an Employer, and the participation in the Plan by the Participants.

12.9  INTERPRETATION.

      (a)   The Plan shall be governed, construed and administered according to
the laws of the State of Ohio, except to the extent preempted by applicable
federal law.

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      (b)   Headings have been inserted in this Plan for purposes of convenience
only and shall not be taken as limiting or extending the meaning of any
provision.

12.10 SEVERABILITY.

      If any provision of this Plan or the application thereof to any
circumstance or person is invalid or unenforceable, such invalidity or
unenforceability shall not affect any other provisions of the Plan or the
application of such provision to other circumstances or persons, and the Plan
and the application of such provisions to other circumstances or persons shall
not be affected thereby.

12.11 COUNTERPARTS.

      This Plan may be executed in any number of counterparts, each of which
shall be deemed an original, and the counterparts shall constitute one and the
same instrument, which shall be sufficiently evidenced by any one thereof.

12.12 PLAN MERGER OR TRANSFER OF ASSETS.

      There shall not be any merger or consolidation of the Plan with, or the
transfer of assets or liabilities of the Plan to any other plan (other than as
permitted in Section 8.5 or 8.12 hereof), unless each Participant of the Plan
would (if Plan then terminated) receive a benefit immediately after the merger,
consolidation or transfer which is equal to or greater than the benefit he would
have been entitled to receive immediately before the merger, consolidation or
transfer (if the Plan had then terminated). The Company reserves the right to
merge or consolidate this Plan with, and to transfer the assets of the Plan to,
any other Plan, without the consent of any other Employer. Notwithstanding the
foregoing, this Plan shall not be a direct or indirect transferee of a pension
plan or any retirement plan that at any time provided for benefits in the form
of a life annuity.

12.13 INDEMNIFICATION.

      In addition to any rights of indemnification under the Certificate of
Incorporation or Code of Regulations of the Company, under any provisions of
law, or under any other agreement that may be given to the Plan Administrator,
the Board or any other person to whom any power, authority or responsibility of
the Company is delegated pursuant to this Plan (other than the Trustee), the
Company shall satisfy any liability actually and reasonably incurred by such
person, including expenses, reasonable attorneys' fees, judgments, fines and
amounts paid in settlement. This right to indemnification shall apply in
connection with any threatened, pending or completed action, suit or proceeding
that is related to the exercise or failure to exercise by such person any of the
powers, authorities, responsibilities or discretion provided under the Plan or
reasonably believed by such person to be provided hereunder and any action taken
by such person in connection therewith, but only if such person acted in good
faith and in a manner he reasonably believed to be in or not opposed to the best
interest of the Participants or, with respect to any criminal actions or
proceedings, if he had no reasonable cause to believe his conduct was unlawful.
The termination of any suit, action or proceeding by judgment, order,
settlement,

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conviction or a plea of nolo contendere or its equivalent, shall not, of itself,
create a presumption that such person did not act in good faith and in a manner
which he reasonably believed to be in or not opposed to the best interest of the
Participants or, with respect to any criminal action or proceedings, that he had
no reasonable cause to believe that his conduct was unlawful.

12.14 SERVICE OF PROCESS/NECESSARY PARTIES.

      (a)   The Plan Administrator shall serve as the agent upon whom legal
process may be served under ERISA.

      (b)   In any action or other judicial proceeding affecting the Trust, the
Trustee and the Company shall be included as necessary parties.

12.15 MILITARY SERVICE.

      Effective as of July 1, 1996, notwithstanding any other provision of the
Plan to the contrary, contributions, benefits and service credit with respect to
qualified military service will be provided in accordance with Code Section
414(u). "Qualified military service" means any service in the uniformed services
(as defined in chapter 43 of title 38 of the United States Code) by any
individual if such individual is entitled to reemployment rights under such
chapter with respect to such service.

12.16 MODEL EGTRRA AMENDMENTS.

      The amendments to the definition of the terms "Compensation," "Eligible
Retirement Plan," and "Eligible Rollover Distribution" in Article II hereof and
Sections 4.2, 4.9(c), 4.12, 5.9, 8.2, 8.9, 8.10, and 14.6 hereof and former
Section 8.11 that are effective as of January 1, 2002 (the "EGTRRA Amendments")
are intended (i) to reflect the model amendments set forth in IRS Notice 2001-57
(or good faith modifications thereof) that are designed to reflect certain
provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001
("EGTRRA"), (ii) as good faith compliance with the requirements of EGTRRA and
are to be construed in accordance with EGTRRA and the guidance issued
thereunder, and (iii) shall supersede the other provisions of the Plan to the
extent that such other provisions are inconsistent with the EGTRRA Amendments.

           ARTICLE XIII. ADOPTION OF PLAN BY CONTROLLED GROUP MEMBERS

13.1  ADOPTION PROCEDURE.

      Any Controlled Group Member may become an Employer under the Plan provided
that (a) the Company approves the adoption of the Plan by the Controlled Group
Member and designates the Controlled Group Member as an Employer; (b) the
Controlled Group Member executes an Instrument of Adoption adopting the Plan,
together with all amendments then in effect, upon appropriate resolutions of the
board of directors of the Controlled Group Member; and (c) the Instrument of
Adoption provides that the Controlled Group Member agrees to be

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bound by any other terms and conditions that may be required by the Company,
provided that such terms and conditions are not inconsistent with the purposes
of the Plan.

13.2  EFFECT OF ADOPTION BY A CONTROLLED GROUP MEMBER

      A Controlled Group Member that adopts the Plan pursuant to an Instrument
of Adoption will be deemed to be Employer for all purposes hereunder, unless
otherwise specified in the Instrument of Adoption designating the Controlled
Group Member as an Employer. In addition, the Company may provide, in its
discretion and by appropriate resolutions, that the Employees of such Controlled
Group Member will receive credit for their employment with the Controlled Group
Member prior to the date it became a Controlled Group Member for purposes of
determining either or both the eligibility of such Employees to participate in
the Plan and the vested and nonforfeitable interest of such Employees in their
Account balances, provided that such credit will be applied in a uniform and
nondiscriminatory manner with respect to all such Employees.

13.3  WITHDRAWAL OF AN EMPLOYER.

      Any Employer (other than the Company) that adopts the Plan may elect
separately to withdraw from the Plan. Any such withdrawal shall be expressed in
an instrument executed by the withdrawing Employer and filed with the Company.
No such withdrawal shall decrease the amount of Matching Employer Contributions
to be made by the Employer on account of periods preceding the effective date of
such withdrawal. In the event of such a withdrawal of an Employer, or in the
event the Plan is terminated as to an Employer (but not all the Employers)
pursuant to Section 11.1, such Employer (herein called "former Employer") shall
cease to be an Employer, and Matching Employer Contributions of such former
Employer and After-Tax and Before-Tax Contributions of Employees of such former
Employer shall cease. The interests in the Trust Fund of Participants who are or
were Employees of such former Employer shall be distributed as specified in
Article VIII.

                     ARTICLE XIV. TOP-HEAVY PLAN PROVISIONS

14.1  DEFINITIONS.

      For purposes of this Article, the following terms when used with initial
capital letters, shall have the following respective meanings:

      "AGGREGATION GROUP:" Permissive Aggregation Group or Required Aggregation
Group, as the context shall require.

      "COMPENSATION:" Compensation as defined in Section 5.9(c) hereof (subject
to the limitations described in Subsection (b) of the definition of the term
"Compensation" in Article II hereof).

      "DEFINED BENEFIT PLAN:" A qualified plan as defined in Code Section
414(j).

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      "DEFINED CONTRIBUTION PLAN:" A qualified plan as defined in Code Section
414(i).

      "DETERMINATION DATE:" For any Plan Year, last day of the immediately
preceding Plan Year.

      "EXTRA TOP-HEAVY GROUP:" Effective prior to January 1, 2000, an
Aggregation Group if, as of a Determination Date, the aggregate present value of
accrued benefits for Key Employees in all plans in the Aggregation Group
(whether Defined Benefit Plans or Defined Contribution Plans) is more than
ninety percent (90%) of the aggregate present value of all accrued benefits for
all employees in such plans.

      "EXTRA TOP-HEAVY PLAN:" See Section 14.3 hereof.

      "FORMER KEY EMPLOYEE:" A Non-Key Employee with respect to a Plan Year who
was a Key Employee in a prior Plan Year. Such term shall also include his
Beneficiary in the event of his death.

      "KEY EMPLOYEE:" Any Employee or former Employee who is or was a
Participant and who, at any time during the current Plan Year or any of the
preceding four (4) Plan Years, is (i) an officer of an Employer (limited to no
more than fifty (50) Employees or, if lesser, the greater of three (3) Employees
or ten percent (10%) of the Employees) with annual Compensation greater than
fifty percent (50%) of the dollar amount in effect under Code Section
415(b)(1)(A) for such Plan Year, (ii) one of the ten (10) Employees owning (or
considered owning within the meaning of Code Section 318) the largest interests
in an Employer and having annual Compensation exceeding the applicable dollar
amount referred to in Section 5.6(a), (iii) a five percent (5%) owner (as such
term is defined in Code Section 416(i)(1)(B)(i)), or (iv) a one percent (1%)
owner (as such term is defined in Code Section 416(i)(1)(B)(ii)) with annual
Compensation of more than One Hundred Fifty Thousand Dollars ($150,000). For
purposes of Paragraph (ii) of this Subsection, if two Employees have the same
interest in an Employer, the Employee having greater annual Compensation shall
be treated as having a larger interest. The term "Key Employee" shall also
include such Employee's Beneficiary in the event of his death. For purposes of
this definition of the term "Key Employee," the term "Compensation" has the
meaning given such term by Code Section 414(q)(4).

      "NON-KEY EMPLOYEE:" Any Employee or former Employee who is or was a
Participant and who is not a Key Employee. Such term shall also include his
Beneficiary in the event of his death.

      "PERMISSIVE AGGREGATION GROUP:" A group of qualified plans of an Employer
consisting of the plans in the Required Aggregation Group, plus one or more
plans designated from time to time by the Plan Administrator that are not part
of the Required Aggregation Group but that satisfy the requirements of Code
Sections 401(a)(4) and 410 when considered with the Required Aggregation Group.

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      "REQUIRED AGGREGATION GROUP:" The group of qualified plans of an Employer
consisting of each plan in which a Key Employee participates (in the plan year
containing the determination date or any of the four preceding plan years) plus
each other plan which, during this period, enables any plan in which a Key
Employee participates to meet the requirements of Code Section 401(a)(4) or 410.

      "TOP-HEAVY ACCOUNT BALANCE:" A Participant's (including a Participant who
has received a total distribution from this Plan) or a Beneficiary's aggregate
balance standing to his account as of the Valuation Date of the Trust Fund
coinciding with or immediately preceding the Determination Date (as adjusted by
the amount of any Matching Employer Contributions made or due to be made after
such Valuation Date but before the expiration of the extended payment period in
Code Section 412(c)(10)), provided, however, that such balance shall include the
aggregate distributions made to such Participant or Beneficiary during the five
(5) consecutive Plan Years ending with the Plan Year that includes the
Determination Date (including distributions under a terminated plan that if it
had not been terminated would have been included in a Required Aggregation
Group), and provided further that if an Employee or former Employee has not
performed services for any Employer maintaining the Plan at any time during the
five (5) year period ending on the Determination Date, his account (and/or the
account of his Beneficiary) shall not be taken into account.

      "TOP-HEAVY GROUP:" An Aggregation Group if, as of a Determination Date,
the aggregate present value of accrued benefits for Key Employees in all plans
in the Aggregation Group (whether Defined Benefit Plans or Defined Contribution
Plans) is more than sixty percent (60%) of the aggregate present value of
accrued benefits for all employees in such plans.

      "TOP-HEAVY PLAN:" See Section 14.2.

14.2  DETERMINATION OF TOP-HEAVY STATUS.

      (a)   Except as provided by Subsections (b) and (c) of this Section, the
Plan shall be a Top-Heavy Plan if, as of a Determination Date:

            (i)   the aggregate of Top-Heavy Account Balances for Key Employees
      is more than sixty percent (60%) of the aggregate of all Top-Heavy Account
      Balances, excluding for this purpose the aggregate Top-Heavy Account
      Balances of Former Key Employees; or

            (ii)  if the Plan is included in a Required Aggregation Group that
      is a Top-Heavy Group.

      (b)   If the Plan is included in a Required Aggregation Group that is not
a Top-Heavy Group, the Plan shall not be a Top-Heavy Plan notwithstanding the
fact that the Plan would otherwise be a Top-Heavy Plan under Paragraph (i) of
Subsection (a) of this Section.

                                       73
<PAGE>
      (c)   If the Plan is included in a Permissive Aggregation Group that is
not a Top-Heavy Group, the Plan shall not be a Top-Heavy Plan notwithstanding
the fact that the Plan would otherwise be a Top-Heavy Plan under Subsection (a)
of this Section.

14.3  DETERMINATION OF EXTRA TOP-HEAVY STATUS.

      Effective prior to January 1, 2000,

      (a)   Except as provided by Subsections (b) and (c) of this Section, the
Plan shall be an Extra Top-Heavy Plan if, as of the Determination Date:

            (i)   the aggregate of Top-Heavy Account Balances for Key Employees
      is more than ninety percent (90%) of the aggregate of all Top-Heavy
      Account Balances, excluding for this purpose the aggregate Top-Heavy
      Account Balances of Former Key Employees; or

            (ii)  if the Plan is included in a Required Aggregation Group that
      is an Extra Top-Heavy Group.

      (b)   If the Plan is included in a Required Aggregation Group that is not
an Extra Top-Heavy Group, the Plan shall not be an Extra Top-Heavy Plan
notwithstanding the fact that the Plan would otherwise be an Extra Top-Heavy
Plan under Paragraph (i) of Subsection (a) of this Section.

      (c)   If the Plan is included in a Permissive Aggregation Group that is
not an Extra Top-Heavy Group, the Plan shall not be an Extra Top-Heavy Plan
notwithstanding the fact that the Plan would otherwise be an Extra Top-Heavy
Plan under Subsection (a) of this Section.

14.4  REQUIREMENTS.

      (a)   A Participant shall continue to have a nonforfeitable right to all
amounts allocated to his Account.

      Notwithstanding any other provisions of the Plan to the contrary, if the
Plan is Top-Heavy for any Plan Year, the Plan shall then satisfy the following
requirements for any such Plan Year:

      (b)   (i)   Each Non-Key Employee who is eligible to share in any Matching
      Employer Contributions for such Plan Year (or who would have been eligible
      to share in any such Matching Employer Contributions if a Before-Tax
      Contribution or After-Tax Contribution had been made for him during such
      Plan Year) shall be entitled to receive an allocation of such Matching
      Employer Contributions, that is at least equal to three percent (3%) of
      his Compensation for such Plan Year.

                                       74
<PAGE>
            (ii)  The three percent (3%) minimum contribution requirement under
      Paragraph (i) of this Subsection for a Non-Key Employee shall be increased
      to four percent (4%) if the Employer maintains a Defined Benefit Plan that
      does not cover such Non-Key Employee.

            (iii) The percentage minimum contribution requirement set forth in
      Paragraphs (i) and (ii) of this Subsection with respect to a Plan Year
      shall not exceed the percentage at which Matching Employer Contributions
      are made (or required to be made) under the Plan for such Plan Year for
      the Key Employee for whom such percentage is the highest for such Year.

            (iv)  The percentage minimum contribution requirement set forth in
      Paragraphs (ii) and (iii) of this Subsection may also be reduced or
      eliminated in accordance with Section 14.5(b).

            (v)   For the purpose of Paragraph (iii) of this Subsection,
      contributions taken into account shall include like contributions under
      all other Defined Contribution Plans in the Required Aggregation Group,
      excluding any such plan in the Required Aggregation Group if that plan
      enables a Defined Benefit Plan in such Required Aggregation Group to meet
      the requirements of Code Sections 401(a)(4) or 410.

            (vi)  For the purpose of Paragraph (iii) of this Subsection, the
      term "Matching Employer Contributions" shall include Before-Tax
      Contributions made for an Employee.

      (c)   Effective January 1, 2001, if the Employer maintains a Defined
Benefit Plan that could or does provide benefits to Participants in this Plan
then the percentage minimum contribution requirement in Paragraph (i) of Section
(b) of this Section shall be seven and one-half percent (7 1/2%) for a Non-Key
Employee who is covered by this Plan and the Defined Benefit Plan.

14.5  COORDINATION WITH OTHER PLANS.

      (a)   In applying this Article, an Employer and all Controlled Group
Members shall be treated as a single employer, and the qualified plans
maintained by such single employer shall be taken into account.

      (b)   In the event that another Defined Contribution Plan or Defined
Benefit Plan maintained by the Controlled Group provides contributions or
benefits on behalf of Participants in this Plan, such other plan(s) shall be
taken into account in determining whether this Plan satisfies Section 14.4; and
the minimum contribution required for a Non-Key Employee in this Plan under
Section 14.4(c) will be reduced or eliminated, in accordance with the
requirements of Code Section 416 and the regulations thereunder, if a minimum
contribution or benefit is made or accrued in whole or in part in respect of
such other plan(s).

      (c)   Principles similar to those specifically applicable to this Plan
under this Article, and in general as provided for in Code Section 416 and the
regulations thereunder, shall be

                                       75
<PAGE>
applied to the other plan(s) required to be taken into account under this
Article in determining whether this Plan and such other plan(s) meet the
requirements of such Code Section 416 and the regulations thereunder.

14.6  CERTAIN CHANGES EFFECTIVE JANUARY 1, 2002.

      (a)   This Section 14.6 shall apply for purposes of determining whether
the Plan is a top-heavy plan under Code Section 416(g) for Plan Years beginning
on and after January 1, 2002, and whether the Plan satisfies the minimum
benefits requirements of Code Section 416(c) for such Plan Years. This Section
modifies the foregoing provisions Article XIV.

      (b)   The term "Key Employee" means any Employee or former Employee
(including any deceased Employee) who at any time during the Plan Year that
includes the Determination Date was an officer of an Employer having annual
compensation greater than $130,000 (as adjusted under Code Section 416(i)(1) for
Plan Years beginning after December 31, 2002), a 5% owner of an Employer, or a
1% owner of an Employer having annual compensation of more than $150,000. For
this purpose, "annual compensation" means compensation within the meaning of
Code Section 415(c)(3). The determination of who is a Key Employee shall be made
in accordance with Code Section 416(i)(1) and the applicable regulations and
other guidance of general applicability issued thereunder.

      (c)   This Section 14.6(c) shall apply for purposes of determining the
present values of accrued benefits and the amounts of account balances of
Employees as of the Determination Date.

            (i)   The present values of accrued benefits and the amounts of
      account balances of an Employee as of the Determination Date shall be
      increased by the distributions made with respect to the Employee under the
      Plan and any plan aggregated with the Plan under Code Section 416(g)(2)
      during the one-year period ending on the Determination Date. The preceding
      sentence shall also apply to distributions under a terminated plan which,
      had it not been terminated, would have been aggregated with the Plan under
      Code Section 416(g)(2)(A)(i). In the case of a distribution made for a
      reason other than separation from service, death, or disability, this
      provision shall be applied by substituting "five-year period" for
      "one-year period."

            (ii)  The accrued benefits and accounts of any individual who has
      not performed services for an Employer during the one-year period ending
      on the Determination Date shall not be taken into account.

      (d)   Matching Employer Contributions shall be taken into account for
purposes of satisfying the minimum contribution requirements of Code Section
416(c)(2) and the Plan. The preceding sentence shall apply with respect to
matching contributions under the Plan or, if the Plan provides that the minimum
contribution requirement shall be met in another plan, such other plan. Matching
Employer Contributions that are used to satisfy the minimum contribution
requirements shall be treated as matching contributions for purposes of the
actual contribution percentage test and other requirements of Code Section
401(m).

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<PAGE>
                                                                       EXHIBIT A

                       EMPLOYERS PURSUANT TO SECTION 2.23
                             AS OF DECEMBER 11, 2003

Roadway LLC

Roadway Reverse Logistics, Inc. (previously known as REXSIS)

Roadway Express, Inc.

                                       77
<PAGE>
                                                                       EXHIBIT B

               ADDITIONAL INVESTMENT FUNDS PURSUANT TO SECTION 7.1

                             AS OF DECEMBER 11, 2003

INVESTMENT FUNDS PURSUANT TO SECTION 7.1(a)-(c)

1.    American Balanced Fund - Class A

2.    American EuroPacific Growth Fund - Class A

3.    Fidelity Convertible Securities Fund

4.    Fidelity Freedom 2000 Fund(R)

5.    Fidelity Freedom 2010 Fund(R)

6.    Fidelity Freedom 2020 Fund(R)

7.    Fidelity Freedom 2030 Fund(R)

8.    Fidelity Freedom 2040 Fund(R)

9.    Fidelity Freedom Income Fund(R)

10.   Fidelity Growth Company Fund

11.   Fidelity Investment Grade Bond Fund

12.   Fidelity Mid-Cap Stock Fund

13.   Fidelity Money Market Trust: Retirement Money Market Portfolio

14.   Fidelity U.S. Equity Index Commingled Pool

15.   Fidelity Worldwide Fund

16.   Neuberger Berman Genesis Fund(R) - (Advisor Class)

17.   PIMCO High Yield Fund - Administrative Class

18.   Spartan(R) Total Market Index Fund

19.   Templeton Foreign Fund - Class A

20.   Templeton World Fund - Class A

21.   VanKampen Growth & Income Fund - Class A

22.   Vanguard Mid-Cap Index Fund - Admiral Class

23.   Vanguard Small-Cap Index Fund - Admiral Class

24.   Yellow Roadway Corporation Stock Fund

                                       78

<PAGE>
INVESTMENT FUNDS PURSUANT TO SECTION 7.1(g)

1. Fidelity BrokerageLink(R)

                                       79

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