Document:

DEFERRAL AND WAIVER AGREEMENT

     THIS DEFERRAL AND WAIVER AGREEMENT is made and entered into this 15th
day of December, 2000 ("Effective Date"), by and between BANK ONE,
COLORADO, N.A., a national banking association ("Lender") and VARI-L,
INC., a Colorado corporation (the "Borrower").  Capitalized terms used in
this Deferral and Waiver Agreement and not defined herein shall have the
meaning set forth in the Loan Documents.

                                 RECITALS

     A.   On March 24, 2000, the Lender and Borrower entered into a
Revolving Loan Agreement ("Loan Agreement"), Revolving Note, General
Security Agreement and other documents executed by or on behalf of the
Borrower to the Lender in connection with the Revolving Loan
(collectively, the "Loan Documents"). Pursuant to the terms of the Loan
Agreement, Lender agreed to make Revolving Advances of the Revolving Loan
to the Borrower.

     B.   Borrower hereby acknowledges that as of the date hereof, it is
and continues to be in default under the Loan Documents and is unable to
cure certain defaults.

     C.   Borrower has requested that Lender enter into this Deferral and
Waiver Agreement in order to give the Borrower time to undertake diligent
efforts to develop and implement a business plan to resolve certain
issues.

     D. Lender is willing to enter into this Deferral and Waiver
Agreement, but only upon the terms and conditions set forth herein.

     E. As contemplated in paragraph 17 of the Deferral and Waiver
Agreement dated September 28, 2000, Lender engaged an appraiser to value
the Borrower's equipment.  The appraiser completed its appraisal of the
equipment's value, resulting in a significant reduction in the borrowing
Base as defined in section 6 below.  In order to cure the shortfall in the
Borrowing Base, Borrower has agreed to make an additional principal
reduction payment as detailed in paragraph 5 below.

     NOW, THEREFORE, in consideration of the above Recitals and for other
good and valuable consideration, the receipt and adequacy of which are
hereby mutually acknowledged, the parties do hereby agree as follows:

     1.   AFFIRMATION OF RECITALS.  The Recitals set forth above are true
and correct and are incorporated herein by this reference.

     2.   ACKNOWLEDGMENT OF DEFAULT.  Borrower acknowledges that it is in
default of certain loan covenants, representations, obligations and
warranties under the Loan Documents, including, but not limited to the
following:  Litigation (Section 5.5 of the Loan Agreement); Full
Disclosure (Section 5.10 of the Loan Agreement); Financial Condition
(Section 5.13 of the Loan Agreement); Financial Statements (Section 6.2 of
the Loan Agreement); Notices (Section 6.8 of the Loan Agreement); and
Financial Covenants (Section 6.14 of the Loan Agreement) (collectively the
"Existing Events of Default").

     3.   LENDER'S FORBEARANCE.  Provided that Borrower is not in default
under the terms of this Deferral and Waiver Agreement, Lender agrees:  (a)
not to declare any further Events of Default under the Loan Documents; (b)
not to accelerate the amounts due under the Loan Documents; and, (c) to
forbear, defer and otherwise refrain from exercising its other rights and
remedies under the Loan Documents for the period from the Effective Date
through March 31, 2001 (the "Deferral Period").  Principal payments
together with accrued interest (as calculated pursuant to paragraph 4
below) plus a fee of $22,000.00 shall be due and payable on the Effective
Date.

     4.   INTEREST RATE ON REVOLVING LOAN.  From and after December 15,
2000, interest on the unpaid principal due with respect to the Revolving
Loan shall accrue and be payable at the rate of the Prime Rate (as defined
in the Loan Agreement) plus two percent to move with Prime ("TMWP")
payable at times determined under the Loan Documents.  Upon the occurrence
of any Event of Default of this Deferral and Waiver Agreement, in the
Lender's sole discretion and without waiving any of its other rights and
remedies, the amount due on the Revolving Loan shall bear interest at the
Default Rate of Prime plus five percent.  Borrower agrees that interest
shall no longer be applied at the LIBOR or Adjusted LIBOR Rate.

     5.   PRINCIPAL REDUCTION PAYMENT.  Notwithstanding any other
provision of the Loan Documents to the contrary, Borrower agrees as part
of this Deferral and Waiver Agreement and in consideration for Lender's
forbearance to pay to Lender as a principal reduction payment under the
Revolving Loan the amount of $1,100,000 in cash, certified or cashiers
check, other current funds or wire transfer funds on the Effective Date.
Provided there are no Events of Default and subject to paragraph 6 below,
no other principal payment shall be due during the Deferral Period.

     6.   BORROWING BASE. During the Deferral Period the Borrower shall
establish and maintain its Borrowing Base at a value of no less than
$8,800,000 as calculated based on the following criteria:

<TABLE>
<CAPTION>
   <S>         <C>                           <C>
     a.        raw materials                 30%
     b.        work in progress               0%
     c.        finished goods                60%
     d.        accounts receivable           75%
               (aged less than 90 days)
                                             e.   equipment (1) Equipment
                                             acquired prior to November 1,
                                             2000 shall be valued at the
                                             Forced Liquidation Value
                                             ("FLV") based on the
                                             equipment appraisal
                                             determined by BL Enterprises
                                             dated November 1, 2000; (2)
                                             equipment acquired subsequent
                                             to November 1, 2000 shall be
                                             valued at 30% of Borrower's
                                             purchase price if the
                                             equipment is used or pre-
                                             owned; and, (3) equipment
                                             acquired subsequent to
                                             November 1, 2000 shall be
                                             valued at 60% of Borrower's
                                             purchase price, if the
                                             equipment is new.
</TABLE>

Before any additional equipment may be added to the Borrowing Base,
Borrower shall provide Lender with a copy of the paid invoice for any new
or used equipment purchased after November 1, 2000.  For purposes of
determining the Borrowing Base:  (a) raw materials and finished goods
shall be valued using the standard costs employed by Borrower in its books
and records; and (b) accounts receivable shall be valued at the amount set
forth in the Borrower's books and records, net of reserves and credits.
Fixed assets or equipment financed by a person or entity other than Lender
shall be excluded from the Borrowing Base.  The Borrower shall determine
its Borrowing Base bi-monthly (as of the 15th and the last day of each
month), the results of which Borrower shall provide Lender within ten
business days thereafter.  If any bi-monthly report provided to Lender in
accordance with this paragraph 6 reflects that the Borrowing Base (as
determined by the foregoing criteria) is less than $8,800,000, Borrower
shall immediately pay to Lender an amount equal to any shortfall between
the Borrowing Base and $8,800,000 (the "Shortfall Payment").  With the
exception of a Shortfall Payment that may result from the March 31, 2001
determination of the Borrowing Base, Borrower may deposit any other
Shortfall Payment into a Lender-controlled disbursement account where it
shall remain until the next determination of the Borrowing Base (a
"Shortfall Deposit").  If at the next determination of the Borrowing Base,
the Borrowing Base is at least $8,800,000, the previous Shortfall Deposit
shall be released to the Borrower.  Conversely, if as a result of the next
determination of the Borrowing Base, the Borrowing Base is again less than
$8,800,000, the Shortfall Deposit shall be released to the Lender and
Borrower shall deposit into the disbursement account an amount equal to
the Shortfall Payment less the amount of all Shortfall Deposits released
to the Lender. The failure of Borrower to timely pay the Shortfall Payment
to Lender shall constitute an Event of Default hereunder.

     7.   RESTRICTION ON REVOLVING LOAN.  Notwithstanding any other
provision of the Loan Documents to the contrary and in consideration of
Lender's forbearance, Borrower agrees that the amount available to
Borrower under the  Revolving Loan is $8,800,000 and upon any principal
reduction payment by Borrower of such amount, Borrower shall not have the
ability to reborrow any further amounts otherwise available under the
Revolving Loan.

     8.   NO REVOLVING ADVANCE.  Notwithstanding any other provision of
the Loan Documents to the contrary, Borrower acknowledges that until
further agreement by the Lender, the Lender shall have no obligation to
make any additional Revolving Advance under the Revolving Loan.

     9.   COVENANT NOT TO LIEN OR ENCUMBER.  Borrower shall not permit the
Collateral to be encumbered by any security interest except for the
benefit of the Lender; provided, however, that subject to the Lender's
approval, Borrower may grant liens, security interests, leases or other
encumbrances solely on equipment it acquires after the Effective Date.
Lender's approval shall not be unreasonably withheld.

     10.  SUCCESSORS AND ASSIGNS.  The parties agree that this Deferral
and Waiver Agreement and the Revolving Note shall be binding upon, and
inure to the benefit of the parties hereto and their respective
successors, heirs, administrators and assigns; except that the Borrower
may not transfer or assign any of its rights or obligations hereunder
without the Lender's prior written consent.

     11.  WAIVER OF EVENTS OF DEFAULT.  Provided that the Borrower is not
in default hereunder, Lender agrees, only during the Deferral Period, to
waive the Existing Events of Default under the Loan Documents.  Subsequent
to the Deferral Period, Lender may exercise any right, remedy, power or
privilege available under the Loan Documents or under this Deferral and
Waiver Agreement.

     12.  NO DEFENSES, WAIVERS.  As of the date of this Deferral and
Waiver Agreement, the Borrower acknowledges that it has no defense,
offset, or counterclaims to any of Borrower's obligations under the Loan
Documents.  To the extent that any such defenses, claims or offsets exist
as of the date hereof, they are hereby waived and released by Borrower in
consideration of Lender's execution of this Deferral and Waiver Agreement.
Borrower has duly authorized, executed and delivered this Deferral and
Waiver Agreement to Lender, and the Borrower acknowledges that the Loan
Documents are valid and enforceable in accordance with their terms against
the Borrower.

     13.  EVENTS OF DEFAULT.  The occurrence of any one or more of the
following shall constitute an Event of Default under this Deferral and
Waiver Agreement:

          (a)  a materially false or misleading representation or warranty
contained in this Deferral and Waiver Agreement, or the existence of a
misrepresentation of fact or fraud contained in any document or
information submitted or communicated to Lender on or after August 8,
2000, in support of this Deferral and Waiver Agreement;

          (b)  material breach or violation of any terms, covenant or
condition contained in this Deferral and Waiver Agreement; and

          (c)  any other Event of Default under any of the Loan Documents
subsequent to the Effective Date other than any of the Existing Events of
Default or other than an act or omission that would again become an Event
of Default solely by the passage of time.

     14.  TERMINATION; REMEDIES.  Immediately following the occurrence of
any default under this Deferral and Waiver Agreement, Lender may, at its
option, (a) terminate its obligations to waive the defaults set forth in
paragraph 2 and terminate its obligations to defer payments as contained
herein without notice or demand to the Borrower and (b) pursue any other
remedies available to it under the Loan Documents or otherwise.  If not
sooner terminated, Lender's obligation to waive the defaults set forth in
paragraph 2 and defer payments as set forth herein shall terminate
automatically and without notice to or action by Borrower on March 31,
2001.

     15.  NO WAIVER OF  REMEDIES.  Lender expressly reserves any and all
rights and remedies available to it under this Deferral and Waiver
Agreement and the Loan Documents, at law or in equity in the event the
Borrower defaults under this Deferral and Waiver Agreement.  No failure to
exercise, or delay by Lender in exercising, any right, power or privilege
hereunder shall preclude any other or further exercise thereof, or the
exercise of any other right, power or privilege.  The rights and remedies
provided in this Deferral and Waiver Agreement and the Loan Documents are
cumulative and not exclusive of each other or of any right or remedy
provided by law or in equity.  No notice to or demand upon the Borrower in
any instance shall, in itself, entitle the Borrower to any other or
further notice or demand in similar or other circumstances or constitute a
waiver of the right of Lender to any other or further action in any
circumstances without notice or demand.

     16.  INSPECTION OF PROPERTY, BOOKS AND RECORDS.  In accordance with
Lender's right of inspection set forth in Section 6.7 of the Loan
Agreement, Lender's authorized officers, employees and agents shall have
the specific right to inspect (and make copies of or abstracts therefrom)
the accounts receivable, at the expense of the Borrower and at any
reasonable time and as often as the Lender may reasonably request.

     17.  APPRAISAL OF EQUIPMENT.  Lender's authorized officers, employees
and agents shall have the right to obtain an appraisal of any equipment of
Borrower, at Borrower's expense, and to inspect Borrower's equipment at
any reasonable time and as often as Lender may reasonably request.  Lender
agrees to provide Borrower with a copy of third-party appraisals Lender
obtains during the Deferral Period.

     18.  REPORTING.  Borrower shall promptly apprise and inform Lender of
all significant pleadings and Court Orders concerning any lawsuits or
governmental proceedings in which Borrower is a party, all decisions of
the Security Exchange Commission and NASDAQ that concern Borrower, all
actions and lawsuits filed with any Court or governmental agency
subsequent to the Effective Date and all significant developments that
concern Borrower.

     19.  EXPENSES; ATTORNEYS' FEES.  In addition to all other amounts
that are now due or may hereafter become due to Lender under the Loan
Documents or this Deferral and Waiver Agreement, the Borrower shall
reimburse Lender for all amounts reasonably incurred by or on behalf of
Lender for attorneys' fees, recording expenses, title insurance fees, UCC
searches, and all other reasonable expenses incurred by or on behalf of
Lender by reason of the matters specified herein and for the preparation
of this Deferral and Waiver Agreement and all other documents necessary
and required to effectuate the provisions hereof including, without
limitation, all reasonable costs and expenses with respect to the
Borrower's compliance with the terms and conditions hereof and Lender's
enforcement thereof.  Borrower shall reimburse Lender for all outstanding
attorneys' fees, costs and expenses within 15 days notice of such
attorneys' fees, costs and expenses.  In the event any dispute shall arise
concerning the subject matter of this Deferral and Waiver Agreement,
Lender shall be entitled to recover from the Borrower its reasonable
attorneys' fees and costs incurred in the enforcement of any of the
provisions set forth herein.  The rights and remedies of Lender contained
in this paragraph shall be in addition to, and not in lieu of, the rights
and remedies contained in the Loan Documents and as provided by law.

     20.  GOVERNING LAW.  This Deferral and Waiver Agreement shall be
construed in accordance with the laws of the State of  Colorado.

     21.  DISPUTE RESOLUTION.  Section 10.11 Waiver of Right to Trial by
Jury, Section 10.15 Submission to Jurisdiction/Service of Process and
Section 10.16 Limitation of Liability of the Loan Agreement specifically
apply to this Deferral and Waiver Agreement and are incorporated herein as
if fully set forth.  Section 10.12 Arbitration of the Loan Agreement is
not applicable to this Deferral and Waiver Agreement.  Section 10.12
Arbitration of the Loan Agreement is not applicable to this Deferral and
Waiver Agreement.

     22.  CONSTRUCTION.  This Deferral and Waiver Agreement shall not be
construed more strictly against Lender merely by virtue of the fact that
the same has been prepared by Lender or its counsel, it being recognized
that the Borrower and Lender have contributed substantially and materially
to the preparation of this Deferral and Waiver Agreement, and the Borrower
and Lender each acknowledge and waive any claim contesting the existence
and the adequacy of the consideration given by any of the other parties
hereto in entering into this Deferral and Waiver Agreement.

     23.  ENTIRE AGREEMENT AND RATIFICATION.  Borrower and Lender each
acknowledge that there are no other agreements or representations, either
oral or written, express or implied, not embodied in this Deferral and
Waiver Agreement and the Loan Documents, which, together, represent a
complete integration of all prior and contemporaneous agreements and
understandings of the Borrower and Lender, and subject to the
modifications herein, the provisions of the Loan Documents are hereby
ratified and confirmed.

     24.  CONSENT TO AGREEMENT.  Borrower acknowledges that it has
thoroughly read and reviewed the terms and provisions of this Deferral and
Waiver Agreement and is familiar with the same, that the terms and
provisions contained herein are clearly understood by it and have been
fully and unconditionally consented to by it and that the Borrower has had
the full benefit and advice of counsel of its own selection, or the
opportunity to obtain the benefit and advice of counsel of its own
selection, in regard to understanding the terms, meaning and effect of
this Deferral and Waiver Agreement and that this Deferral and Waiver
Agreement has been entered into by the Borrower freely, voluntarily, with
full knowledge, and without duress, and that in executing this Deferral
and Waiver Agreement, the Borrower is relying on no other representations
either written or oral, express or implied, made to the Borrower by any
other party hereto, and that the consideration received by the Borrower
hereunder has been actual and adequate.

     25.  RELEASE.  As additional consideration for Lender entering into
this Deferral and Waiver Agreement, the Borrower hereby fully and
unconditionally releases and forever discharges Lender, its agents,
servants, employees, directors, officers, attorneys, branches, affiliates,
subsidiaries, successors and assigns and all persons, firms, corporations,
and organizations acting in its behalf of and from all damage, loss,
claims, demands, liabilities, obligations, actions and causes of action
whatsoever which the Borrower may now have or claim to have against Lender
as of the date of this Deferral and Waiver Agreement, whether presently
known or unknown, and of every nature and extent whatsoever on account of
or in any way affecting, concerning, arising out of or founded upon the
Loan Documents including, but not limited to, all such loss or damage of
any kind heretofore sustained, or that may arise as a consequence of the
dealings between the parties up to and including the date of this Deferral
and Waiver Agreement.

     26.  COUNTERPARTS.  It is understood and agreed that this Deferral
and Waiver Agreement may be executed in several counterparts, each of
which shall, for all purposes, be deemed an original and all of such
counterparts, taken together, shall constitute one and the same Deferral
and Waiver Agreement, even though all of the parties hereto may not have
executed the same counterpart of this Deferral and Waiver Agreement.

     27.  MISCELLANEOUS.  This Deferral and Waiver Agreement is made for
the sole protection of Lender and the Borrower and their respective
successors and assigns.  No other person shall have any right whatsoever
hereunder.  Notices to parties hereunder may be given to them at the
addresses and in the manner provided in the Loan Documents.  Time shall be
of the strictest essence in the performance of each and every one of the
Borrower's obligations hereunder.  If any provision of this Deferral and
Waiver Agreement is held to be invalid or unenforceable, the remaining
provisions shall remain in effect without impairment.

     IN WITNESS WHEREOF, this Deferral and Waiver Agreement has been
executed by the parties hereto in manner and form sufficient to bind them,
as of the day and year first above written.

                               BANK ONE, COLORADO, N.A., a national
                               banking association

                               By:/s/Dennis Warren
                                   -----------------------------------
                               Name:    Dennis Warren
                               Its:     First Vice President

                               VARI-L, INC., a Colorado corporation

                               By:/s/G. Peter Pappas
                                   -----------------------------------
                               Name:    G. Peter Pappas
                               Its:     President & CEOEXHIBIT 4.1

                             DELUXE CORPORATION
                           DEFERRED COMPENSATION PLAN
                               (2000 RESTATEMENT)

<PAGE>

                               DELUXE CORPORATION
                           DEFERRED COMPENSATION PLAN
                               (2000 RESTATEMENT)

                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----

SECTION 1      RESTATEMENT AND PURPOSE........................................1

                1.1.   Restatement
                1.2.   Purpose

SECTION 2      DEFINITIONS....................................................1

                2.1.   Definitions
                2.2.   Transition Rule

SECTION 3      ELIGIBILITY FOR PARTICIPATION..................................3

SECTION 4      ENROLLMENT AND ELECTIONS.......................................4

                4.1.   Initial Enrollment
                4.2.   Election to Defer
                4.3.   Special Rule for New Hires

SECTION 5      DEFERRAL ACCOUNTS..............................................6

                5.1.   Participant Deferral Accounts
                5.2.   Employee Benefit Plan Equivalent
                5.3.   Investment Options
                5.4.   Charges Against Deferral Accounts
                5.5.   Contractual Obligation
                5.6.   Unsecured Interest

SECTION 6      PAYMENT OF DEFERRED AMOUNTS....................................7

                6.1.   Event of Maturity
                6.2.   Form of Distribution
                       6.2.1.  Form of Payment
                       6.2.2.  Time of Payment
                       6.2.3.  Default
                       6.2.4.  New Designation
                       6.2.5.  Code Section 162(m) Delay
                6.3.   Special Rule for eFunds Participants

SECTION 7      FINANCIAL EMERGENCY...........................................11

SECTION 8      BENEFICIARY...................................................11

                                      -i-
<PAGE>

SECTION 9      NONTRANSFERABILITY............................................12

SECTION 10     DETERMINATIONS -- RULES AND REGULATIONS.......................12

                10.1.  Determinations
                10.2.  Rules and Regulations
                10.3.  Method of Executing Instruments
                10.4.  Claims Procedure
                       10.4.1.  Original Claim
                       10.4.2.  Claims Review Procedure
                       10.4.3.  General Rules
                10.5.  Information Furnished by Participants

SECTION 11     ADMINISTRATION................................................14

                11.1.  Company
                       11.1.1.  Chief Executive Officer
                       11.1.2.  Committee
                       11.1.3.  Management Committee
                11.2.  Conflict of Interest
                11.3.  Dual Capacity
                11.4.  Administrator
                11.5.  Named Fiduciaries
                11.6.  Service of Process
                11.7.  Administrative Expenses

SECTION 12     AMENDMENT AND TERMINATION.....................................17

SECTION 13     LIFE INSURANCE CONTRACT.......................................17

SECTION 14     MERGER, CONSOLIDATION OR ACQUISITION..........................17

SECTION 15     NO VESTED RIGHTS..............................................18

SECTION 16     APPLICABLE LAW................................................18

                                      -ii-
<PAGE>

                               DELUXE CORPORATION
                           DEFERRED COMPENSATION PLAN
                               (2000 RESTATEMENT)

                                    SECTION 1

                             RESTATEMENT AND PURPOSE

1.1. RESTATEMENT. Deluxe Corporation, a Minnesota corporation (hereinafter
called the "Company"), established, effective as of November 15, 1983, a
deferred compensation plan known as the "DELUXE CORPORATION DEFERRED
COMPENSATION PLAN" (hereinafter called the "Plan"). The Plan was subsequently
restated effective as of January 1, 1996, and amended effective January 1, 1997.
The Plan is now again restated effective October 26, 2000 except as otherwise
indicated (the "Effective Date").

1.2. PURPOSE. The purpose of the Plan is to provide a means whereby amounts
payable by the Company to Participants (as hereinafter defined) may be deferred
to some future period. It is also the purpose of the Plan to attract and retain
as employees persons whose abilities, experience and judgment will contribute to
the growth and profitability of the Company.

                                    SECTION 2

                                   DEFINITIONS

2.1. DEFINITIONS. Whenever used in this Plan, the following terms shall have the
meanings set forth below:

        (a.)    "Affiliate" means a business entity which is affiliated in
                ownership with the Company and is recognized as an Affiliate by
                the Management Committee for the purposes of this Plan.

        (b.)    "Base Salary" means the base salary scheduled to be paid to a
                Participant during a Plan Year without regard to any Incentive
                Compensation, or any portion deferred under this Plan.

        (c.)    "Committee" means the Compensation Committee of the Board of
                Directors of the Company.

        (d.)    "Deferral Account" means the separate bookkeeping account
                representing the unfunded and unsecured general obligation of
                Company established with respect to each Participant to which is
                credited the dollar amounts specified in

<PAGE>

                Section 5 and from which are subtracted payments made pursuant
                to Sections 6 and 8.

        (e.)    "Disability" means, as to a Participant who is an employee of
                the Company, a determination of disability under Company's Long
                Term Disability Plan. If the Participant is an employee of an
                Affiliate, "Disability" means as to such Participant, a
                determination of disability under the Long Term Disability Plan
                of such Affiliate, or, if no such Plan exists, then under the
                Long Term Disability Plan of the Company as if such Participant
                were a participant in such plan. If the Company discontinues its
                Long Term Disability Plan, then "Disability" shall mean long
                term disability as defined in any other Plan of the Company
                which generally defines long term disability for purposes of
                such other plan. In no event, however, shall a Participant be
                considered to have a Disability for purposes of this Plan until
                such time as such Participant is entitled to begin (or would be
                entitled to begin, if such Participant were a participant in the
                relevant plan) receipt of benefits under such long term
                disability or other relevant plan.

        (f.)    "Eligible Employee" means an employee of the Company or its
                Affiliates who (i) is an officer or assistant officer, or (ii)
                has significant management or professional responsibilities, and
                (iii) who is highly compensated. Subject to the limitations
                contained in Section 3, the Management Committee from time to
                time may (i) establish rules governing the eligibility of
                employees of the Company and its Affiliates to participate in
                the Plan and, such rules, if adopted, shall be deemed to further
                define or amend, as the case may be, the definition of"Eligible
                Employee" herein, and (ii) permit certain employees of the
                Company and its Affiliates, who would not otherwise be eligible
                to participate in the Plan, to participate in the Plan.

        (g.)    "Event of Maturity" means any of the occurrences described in
                Section 6.1 by reason of which a Participant or Beneficiary may
                become entitled to a distribution from the Plan.

        (h.)    "Incentive Compensation" means the incentive, bonus, and similar
                compensation which is paid to a Participant based on performance
                or other factors during a Plan Year without regard to any
                portion deferred under this Plan.

        (i.)    "Installment Amount" means a Deferral Account (expressed in
                dollars) that is to be paid during a period (having common
                initial and final installment dates) designated pursuant to
                Section 6.2.1 by the Participant in writing at the time of his
                or her enrollment or otherwise made in accordance with this
                Plan.

        (j.)    "Management Committee" means the Management Committee formed by
                the Chief Executive Officer pursuant to Section 12 of the Plan.
                "Participant"

                                      -2-
<PAGE>

                means any Eligible Employee who is affirmatively selected by the
                Management Committee and who elects to participate in the Plan.

        (k.)    "Plan Year" means the twelve-month period coinciding with the
                Company's fiscal year and ending on each December 31.

        (l.)    "Selected Distribution Date" shall mean the date that is
                designated in accordance with this Plan by the Participant in
                writing at the time of his or her enrollment as the date for the
                payment or commencement of payments of his or her Deferral
                Account. In the absence of an effective election of any other
                date, a Participant's Selected Distribution Date shall be the
                date of his or her Termination of Employment.

        (m.)    "Termination of Employment" means a complete severance of a
                Participant's employment relationship with the Company and all
                Affiliates. A transfer from employment with the Company to
                employment with an Affiliate of the Company or other transfer
                between Affiliates or from an Affiliate to the Company shall not
                constitute a Termination of Employment. If an Affiliate ceases
                to be an Affiliate because of a sale or other disposition of
                substantially all its stock or assets, then Participants who are
                employed by that Affiliate shall be deemed to have had a
                Termination of Employment for the purposes of this Plan as of
                the effective date of such sale.

2.2. TRANSITION RULE. Subject to rules and deadlines established by the
Management Committee, Participants with Deferral Accounts as of October 26, 2000
who have not commenced receiving payments under Section 5 shall have an
opportunity to change the deferral election(s) for their Deferral Accounts and
elect a new designation of a time and form of payment pursuant to Section 6.2.4.
Such new designation must, however, apply to the entire Deferral Account such
that after the new designation, the Participant shall have one Selected
Distribution Date and one form of payment under Section 6 for his or her entire
Deferral Account. Participants failing to make an effective new designation or
not eligible for a new designation pursuant to this transition rule shall
receive their distribution by giving effect to the prior effective election(s)
under the Plan.

                                    SECTION 3

                          ELIGIBILITY FOR PARTICIPATION

Each Eligible Employee of the Company and its Affiliates shall be eligible to
participate in the Plan and shall become a Participant upon selection by the
Management Committee. In the event a Participant ceases to be an Eligible
Employee, he or she shall become an inactive Participant, retaining all the
rights described under the Plan, except the right to elect any further
deferrals. Notwithstanding anything apparently to the contrary in this Plan or
in any written communication, summary, resolution or document or oral
communication, no individual shall be a Participant in this Plan, develop
benefits under this Plan or be entitled to receive benefits under this Plan
(either for himself or herself or his or her survivors) unless such individual
is a member of a select group of

                                      -3-
<PAGE>

management or highly compensated employees (as that expression is used in
ERISA). If a court of competent jurisdiction, any representative of the U.S.
Department of Labor or any other governmental, regulatory or similar body makes
any direct or indirect, formal or informal, determination that an individual is
not a member of a select group of management or highly compensated employees (as
that expression is used in ERISA), such individual shall not be (and shall not
have ever been) a Participant in this Plan at any time. If any person not so
defined has been erroneously treated as a Participant in this Plan, upon
discovery of such error such person's erroneous participation shall immediately
terminate AB INITIO and the Company shall distribute the individual's Deferral
Account immediately.

                                    SECTION 4

                            ENROLLMENT AND ELECTIONS

4.1. INITIAL ENROLLMENT. Prior to the first Plan Year that an employee selected
for participation becomes a Participant, such employee shall complete such forms
and make such elections as required by the Company for effective administration
of the Plan. Such initial enrollment:

        (a.)    Shall specify the form in which distribution of the Deferral
                Account attributable to that enrollment shall be made under
                Section 6 (and if such designation is not clearly made to the
                contrary, shall be deemed to have been an election of a single
                lump sum distribution).

        (b.)    Shall specify the time at which distribution shall be made which
                shall, subject to Section 6 hereof, be the later of such
                Participant's Selected Distribution Date or such Participant's
                Termination of Employment.

        (c.)    Shall be made upon forms furnished by the Company, shall be made
                at such time as the Company shall determine and shall conform to
                such other procedural and substantive rules as the Company shall
                prescribe from time to time.

        (d.)    Shall be irrevocable once it has been accepted by the Chief
                Executive Officer of the Company, except to the extent that a
                new designation is made effective in accordance with Section
                6.2.4.

        (e.)    Shall contain a deferral election made in accordance with
                Section 4.2.

4.2. ELECTION TO DEFER. Prior to the first day of any Plan Year, a Participant
may make a deferral election for that Plan Year. A separate election shall be
made for each Plan Year. Each such deferral election:

        (a.)    Shall be irrevocable for the Plan Year with respect to which it
                is made once it has been accepted by the Chief Executive Officer
                of the Company.

                                      -4-
<PAGE>

        (b.)    Shall designate the amount or portion of the Participant's
                Incentive Compensation which is earned during that Plan Year
                (without regard to whether it would be paid during that or a
                subsequent Plan Year) which shall not be paid to the Participant
                but instead shall be accumulated in this Plan under Section 5
                and distributed from this Plan under Section 6. Such designation
                shall be in a minimum amount of $1,000. If expressed as a
                percentage, such percentage shall not exceed fifty percent (50%)
                of such Participant's targeted Incentive Compensation. If
                expressed as a dollar amount, such dollar amount shall not
                exceed the dollar amount equivalent of fifty percent (50%) of
                such Participant's targeted Incentive Compensation. If a dollar
                amount is elected, such election shall be reduced dollar for
                dollar if the Incentive Compensation declared is less than the
                election.

        (c.)    Shall designate the amount or portion of the Participant's Base
                Salary which is earned during that Plan Year (without regard to
                whether it would be paid during that or a subsequent Plan Year)
                which shall not be paid to the Participant but instead shall be
                accumulated in this Plan under Section 5 and distributed from
                this Plan under Section 6. Such designation shall be in a
                minimum amount of $1,000, and may be up to 100 percent (100%) of
                such Participant's Base Salary, less all FICA, federal, state
                and/or local income tax liabilities, and shall be automatically
                revoked if the Base Salary of the Participant is reduced during
                the Plan Year for which such election is made.

        (d.)    Shall be made upon forms furnished by the Company, shall be made
                at such time as the Company shall determine, shall be made
                before the beginning of the Plan Year with respect to which it
                is made and shall conform to such other procedural and
                substantive rules as the Company shall prescribe from time to
                time.

4.3. SPECIAL RULE FOR NEW HIRES. Notwithstanding anything to the contrary in
this Plan, the Management Committee may designate an employee of the Company or
its Affiliates as an Eligible Employee in the employee's year of hire if the new
hire satisfies the eligibility requirements of Section 3. In such cases, the new
hire may, prior to commencement of employment, make a deferral election for the
current Plan Year as provided in Sections 4.1 and 4.2, except for the
requirement that the election be made prior to the first day of the Plan Year.
Such newly hired Participants, however, may defer Base Salary only and may not
defer Incentive Compensation. Such new hires may also defer any hiring bonus
provided by Company. In addition to Base Salary and hiring bonuses, a new hire
may be allowed to defer other compensation as approved by the Management
Committee. The newly hired Participant shall make deferral elections according
to Sections 4.1 and 4.2 for Plan Years after the year of hire, as long as the
employee continues to be an Eligible Employee.

                                      -5-
<PAGE>

                                    SECTION 5

                                DEFERRAL ACCOUNTS
                           (EFFECTIVE JANUARY 1, 2000)

5.1. PARTICIPANT DEFERRAL ACCOUNTS. The Company shall establish and maintain a
bookkeeping Deferral Account for each Participant. The Company shall, from time
to time, provide each Participant with a statement indicating the balance of
such Participant's Deferral Account. At its discretion the Company may obtain
life insurance on the life of any or all Participants to provide all or a
substantial portion of the money needed to pay the amounts deferred under the
Plan. Each Participant's Deferral Account shall be credited, as appropriate,
with one or more of the following:

        (a.)    Base Salary deferrals and Incentive Compensation deferrals made
                pursuant to Section 4 above;

        (b.)    Employee Benefit Plan Equivalents as provided by Section 5.2
                below; and

        (c.)    Gains or losses on deemed investment options as provided by
                Section 5.3 below.

5.2. EMPLOYEE BENEFIT PLAN EQUIVALENT. To the extent the Company's contributions
under its compensation-based benefit plans (including the Deluxe Corporation
Supplemental Benefit Plan) are reduced as a result of the Participant's deferral
of compensation under the Plan, the amount of such reduction shall be credited
to the Participant's Deferral Account. Any amount credited under this procedure
shall be credited as of the last day of the Plan Year during which such
compensation was earned without regard to whether it is paid in a subsequent
year. Any amount credited to a Deferral Account of a Participant under this Plan
shall not be duplicated, directly or indirectly, under any other plan of the
Company.

5.3. INVESTMENT OPTIONS. The Management Committee shall permit a Participant to
allocate the Participant's Deferral Account among one or more investment options
for purposes of measuring the value of the benefit. That portion of the Deferral
Account allocated to an investment option shall be deemed to be invested in such
investment option and shall be valued as if so invested, reflecting all
earnings, losses and other distributions or charges and changes in value which
would have been incurred through such an investment. The determination of which
investment options to make available, and the continued availability of selected
investment options rests in the Management Committee's sole discretion. A
Participant's request to allocate or reallocate among investment options must
comply with any procedures established by the Management Committee and must be
in such increments as the Management Committee may require. The Participant may
not reallocate among investment options more frequently than once a quarter. All
requests for allocation or reallocation are subject to acceptance by the
Management Committee, at its discretion. If accepted by the Management
Committee, an allocation request will be effective as soon as reasonably
administratively practicable.

                                      -6-
<PAGE>

5.4. CHARGES AGAINST DEFERRAL ACCOUNTS. There shall be charged against each
Participant's account any payments made to the Participant or his or her
Beneficiary in accordance with Sections 6 or 7 of the Plan.

5.5. CONTRACTUAL OBLIGATION. It is intended that the Company is under a
contractual obligation to make payments to a Participant when due. Such payments
shall be made out of the general funds of the Company.

5.6. UNSECURED INTEREST. No Participant or Beneficiary shall have any interest
whatsoever in any specific asset of the Company. To the extent any person
acquires a right to receive payments under the Plan, such right shall be no
greater than the right of any unsecured general creditor of the Company.

                                    SECTION 6

                           PAYMENT OF DEFERRED AMOUNTS

6.1. EVENT OF MATURITY. A Participant's Deferral Account shall mature and shall
become distributable in accordance with Section 6.2 and 6.3 upon the earliest
occurrence of any of the following events:

        (a.)    The Participant's death;

        (b.)    The Participant's Disability; or

        (c.)    The occurrence of the Selected Distribution Date (except that if
                the Selected Distribution Date occurs prior to Termination of
                Employment, the Event of Maturity shall be Termination of
                Employment).

6.2. FORM OF DISTRIBUTION. Upon the occurrence of an Event of Maturity specified
in Section 6.1 effective as to a Participant, the Company shall commence payment
of such Participant's Deferral Account (reduced by the amount of any applicable
payroll, withholding and other taxes) in the form designated by the Participant
in his or her enrollment subject to the rules of this Section 6. A Participant
shall not be required to make application to receive payment. Distribution shall
not be made to any Beneficiary, however, until such Beneficiary shall have filed
a written application for benefits and such other information as may be
requested by the Company and such application shall have been approved by the
Company.

        6.2.1. FORM OF PAYMENT. Payment shall be made in whichever of the
following forms as the Participant shall have designated in writing at the time
of his or her initial enrollment or subsequent effective new designation under
Section 6.2.4 (to the extent that such election is consistent with the rules of
this Plan):

        (a.)    TERM CERTAIN INSTALLMENTS TO PARTICIPANT. Subject to Section
                6.2.1(d), below, if the distributee is a Participant and the
                Deferral Account as of the applicable Event of Maturity (without
                giving effect to any gains or losses under Section 5.1(c) after
                such date) is at least Fifty Thousand Dollars

                                      -7-
<PAGE>

                ($50,000), in a series of monthly installments payable over a
                period not less than two (2) years and not more than ten (10)
                years. The amount of the monthly installments shall be
                approximately equal and shall include a reasonable gain or loss
                assumption as determined by the Company in its discretion from
                time to time.

        (b.)    CONTINUED TERM CERTAIN INSTALLMENTS TO BENEFICIARY. If the
                distributee is a Beneficiary of a deceased Participant and
                payment had commenced to the deceased Participant before his or
                her death over a period as specified in paragraph (a) above, in
                a series of annual installments payable over the remainder of
                such period.

        (c.)    LUMP SUM. If the distributee is either a Participant or
                Beneficiary (except as provided in Section 6.2.1(b)), in a
                single lump sum payment pursuant to Section 6.2.1(d), below.

        (d.)    LUMP SUM DISTRIBUTION NOTWITHSTANDING DESIGNATION. If a
                Participant's total Deferral Account is less than Fifty Thousand
                Dollars ($50,000) at the earlier to occur of Termination of
                Employment or an Event of Maturity, then, even if the Selected
                Distribution Date occurs after the Termination of Employment and
                regardless of whether the Participant elected to have his or her
                Deferral Account paid in installments pursuant to Section
                6.2.1(a), such Participant's Deferral Account shall be paid in a
                single lump sum pursuant to the provisions of Section 6.2.2(a)
                below. If a Participant elected and is receiving installment
                distributions pursuant to Section 6.2.1(a) above (or if a
                Beneficiary is receiving installments pursuant to Section
                6.2.1(b)) and if, during the period of installment
                distributions, the undistributed portion of such total Deferral
                Account becomes less than Five Thousand Dollars ($5,000), then
                the remaining Deferral Account shall be paid in a single lump
                sum.

        (e.)    LUMP SUM DISTRIBUTION UPON DISPOSITION OF AFFILIATE.
                Notwithstanding the foregoing provisions of this Section 6.2.1
                or any enrollment of a Participant to the contrary, if a
                Termination of Employment is deemed to occur on account of a
                sale or other disposition of stock or assets of an Affiliate,
                the Deferral Accounts of Participants employed by such Affiliate
                who are deemed to have had such a Termination of Employment
                shall be distributed in a single lump sum.

        6.2.2. TIME OF PAYMENT. Payment shall be made or commenced to a
Participant in accordance with the following rules:

        (a.)    TERMINATION OF EMPLOYMENT. If the payment is to be made or
                commenced on account of the Participant's Termination of
                Employment, payment shall be made within sixty (60) days of such
                Termination of Employment.

                                      -8-
<PAGE>

        (b.)    DEATH -- INSTALLMENTS TO BENEFICIARY. If installments are
                recommenced pursuant to Section 6.2.1(b) on account of the
                Participant's death, the recommencement of such installment
                payments shall begin within sixty (60) days after the later date
                of such Participant's death or approval by the Management
                Committee of such Beneficiary's application for recommencement
                of installments.

        (c.)    DEATH -- LUMP SUM TO BENEFICIARY. If a single lump sum payment
                is to be made pursuant Section 6.2.1(c) to the Participants's
                Beneficiary, payment shall be made within the later of sixty
                (60) days after the Participant's death or the approval by the
                Management Committee of such Beneficiary's application for
                payment.

        (d.)    DISABILITY. If the payment is made on account of the
                Participant's Disability, payment shall be made in a single lump
                sum as if the Participant had a Termination of Employment as
                provided in paragraph (a) above, within sixty (60) days of the
                determination of the existence of such Disability.

        (e.)    SELECTED DISTRIBUTION DATE. Subject to the provisions of Section
                6.2.1(d), if payment is to be made or commenced on a Selected
                Distribution Date, payment will be made or commenced within
                sixty (60) days of such Selected Distribution Date. If the
                Selected Distribution Date is Termination of Employment, either
                because so designated by the Participant as the Selected
                Distribution Date or by default under Section 2.1(m), payment
                will be made or commenced within sixty (60) days of such
                Termination of Employment.

        (f.)    DISPOSITION OF AFFILIATE. If the payment is to be made on
                account of the Participant's Termination of Employment on
                account of a disposition of an Affiliate, payment shall be made
                within sixty (60) days of such disposition.

        6.2.3. DEFAULT. If for any reason a Participant shall have failed to
make a timely written designation of the form of distribution or of a Selected
Distribution Date for payment (including reasons entirely beyond the control of
the Participant), the payment shall be made in a single lump sum within sixty
(60) days of the Participant's Termination of Employment. No spouse, former
spouse, Beneficiary or other person shall have any right to participate in the
Participant's selection of a form of benefit.

        6.2.4. NEW DESIGNATION. At any time and from time to time, each
Participant may file with the Chief Executive Officer of the Company (or as
otherwise directed by the Management Committee) a new designation of a time and
form of payment. Each subsequent designation shall supercede all prior
designations and shall be effective as to the Participant's entire Deferral
Account (including the portions of the Deferral Account attributable to periods
before the new designation is filed) as if the new designation had been made in
writing at the time of the Participant's initial enrollment. Notwithstanding the
foregoing, any new designation shall be disregarded as if it had never been
filed (and the prior effective designation shall be given effect) unless the
designation was filed with the Chief Executive Officer of the Company (or as
otherwise directed by the Management

                                      -9-
<PAGE>

Committee) at least thirteen (13) months before payment is to be made or
commenced under either the prior effective designation or the new designation.

        6.2.5. CODE SECTION 162(m) DELAY. If the Company determines that
delaying the time when the initial payments are made or commenced would increase
the probability that such payments would be fully deductible by the Company for
federal or state income tax purposes, the Company may unilaterally delay the
time of the making or commencement of such payments for up to twelve (12) months
after the date such payments would otherwise be made.

6.3. SPECIAL RULE FOR eFUNDS PARTICIPANTS. Notwithstanding anything to the
contrary in this Plan, the following provisions shall apply to all Participants
who as of the spin off of eFunds Corporation ("eFunds") from the Company are
employed by eFunds or a subsidiary or affiliated corporation of eFunds ("eFunds
Participant"):

        (a.)    The spin off of eFunds shall not constitute a Termination of
                Employment for purposes of this Plan and payment shall not be
                made or commenced to eFunds Participants based on the occurrence
                of the spin off.

        (b.)    Unless eligible for distribution before the spin off, eFunds
                Participants shall not be eligible for payments of Deferral
                Accounts from the Plan until they have an Event of Maturity
                occurring after the spin off. Termination of Employment by
                eFunds (including all of its affiliates, defined as any business
                entity which is affiliated in ownership with eFunds and is
                recognized as an affiliate of eFunds by the Management Committee
                for purposes of this Plan) shall constitute a Termination of
                Employment for purposes of this Plan with respect to eFunds
                Participants.

        (c.)    The deferral elections of eFunds Participants shall immediately
                and automatically terminate upon occurrence of the spin off and
                there shall be no further deferrals of compensation for such
                eFunds Participants into this Plan. There shall also be no
                further Employee Benefit Plan Equivalents credited to the eFunds
                Participants' Deferral Accounts after the spin off, except any
                credits reflecting deferrals occurring before the spin off.
                Deferrals related to Incentive Compensation earned before the
                spin off (even if paid after the spin off) will be credited to
                the eFunds Participants' accounts in accordance with the terms
                of their deferral elections for the 2000 Plan Year.

        (d.)    All other provisions of the Plan shall remain in effect as to
                the eFunds Participants who shall become inactive Participants,
                including but not limited to the ability to allocate Deferral
                Accounts among Investment Options as provided at Section 5.3 and
                the crediting or debiting of such Deferral Accounts to reflect
                such Investment Options as provided at Section 5.1(c).

                                      -10-
<PAGE>

                                    SECTION 7

                               FINANCIAL EMERGENCY

The Management Committee may alter the manner or timing of payment of a Deferral
Account under Section 6 in the event that the Participant establishes, to the
satisfaction of the Management Committee, severe financial hardship. In such
event, the Management Committee may:

        (a.)    Provide that all or a portion of the Deferral Account shall be
                paid immediately in a lump sum payment,

        (b.)    Provide that all or a portion of the installments payable over a
                period of time shall be paid immediately in a lump sum, or

        (c.)    Provide for such other installment payment schedules as it deems
                appropriate under the circumstances,

as long as the accelerated distribution shall not be in excess of that amount
which is necessary for the Participant to meet the financial hardship.

Severe financial hardship shall be deemed to have occurred in the event of the
Participant's impending bankruptcy, a Participant's or dependent's long and
serious illness, or other events of similar magnitude. The Management
Committee's determination as to the occurrence of a severe financial hardship of
the Participant and the manner in which, if at all, the payment of deferred
amounts shall be altered or modified, shall be final.

                                    SECTION 8

                                   BENEFICIARY

A Participant may designate a Beneficiary or Beneficiaries who, upon his or her
death, shall receive the distributions that otherwise would have been paid to
the Participant. All designations shall be in writing and shall be effective
only if and when delivered to the Chief Executive Officer of the Company during
the lifetime of the Participant. If a Participant designates a Beneficiary
without providing in the designation that the Beneficiary must be living at the
time of such distribution, the designation shall vest in the Beneficiary all of
the distributions, whether payable before or after the Beneficiary's death, and
any distributions remaining upon the Beneficiary's death shall be paid to the
Beneficiary's estate.

A Participant may, from time to time, change the Beneficiary or Beneficiaries by
a written instrument delivered to the Chief Executive Officer of the Company. In
the event a Participant shall not designate a Beneficiary or Beneficiaries
pursuant to this Section, or if for any reason such designation shall be
ineffective, in whole or in part, the distributions that otherwise would have
been

                                      -11-
<PAGE>

paid to such Participant shall be paid to the first class of the following
classes of automatic Beneficiaries with a member surviving the Participant and
(except in the case of the Participant's surviving issue) in equal shares if
there is more than one member in such class surviving the Participant:

        Participant's surviving spouse
        Participant's surviving issue per stirpes and not per capita
        Participant's surviving parents
        Participant's surviving brothers and sisters
        Representative of Participant's estate.

                                    SECTION 9

                               NONTRANSFERABILITY

In no event shall the Company make any payment under the Plan to any assignee or
creditor of a Participant or a Beneficiary. Prior to the time of payment
hereunder, a Participant or Beneficiary shall have no rights by way of
anticipation or otherwise to assign or otherwise dispose of any interest under
the Plan nor shall such rights be assigned or transferred by operation of law.

                                   SECTION 10

                     DETERMINATIONS -- RULES AND REGULATIONS

10.1. DETERMINATIONS. The Management Committee shall make such determinations as
may be required from time to time in the administration of the Plan. The
Management Committee shall have the discretionary authority and responsibility
to interpret and construe the Plan and to determine all factual and legal
questions under the Plan, including but not limited to the entitlement of
Participants and Beneficiaries, and the amounts of their respective interests.
Each interested party may act and rely upon all information reported to them
hereunder and need not inquire into the accuracy thereof, nor be charged with
any notice to the contrary.

10.2. RULES AND REGULATIONS. Any rule not in conflict or at variance with the
provisions hereof may be adopted by the Management Committee.

10.3. METHOD OF EXECUTING INSTRUMENTS. Information to be supplied or written
notices to be made or consents to be given by the Management Committee pursuant
to any provision of this Plan may be signed in the name of the Management
Committee by any person who has been authorized to make such certification or to
give such notices or consents.

10.4. CLAIMS PROCEDURE. The claims procedure set forth in this Section 12.4
shall be the exclusive procedure for the disposition of claims for benefits
arising under the Plan.

                                      -12-
<PAGE>

        10.4.1. ORIGINAL CLAIM. Any Participant, former Participant or
Beneficiary of such Participant or former Participant may, if he or she so
desires, file with the Management Committee a written claim for benefits under
the Plan. Within ninety (90) days after the filing of such a claim, the
Management Committee shall notify the claimant in writing whether the claim is
upheld or denied in whole or in part or shall furnish the claimant a written
notice describing specific special circumstances requiring a specified amount of
additional time (but not more than one hundred eighty (180) days from the date
the claim was fled) to reach a decision on the claim. If the claim is denied in
whole or in part, the Company shall state in writing:

        (a.)    The specific reasons for the denial;

        (b.)    The specific references to the pertinent provisions of this Plan
                on which the denial is based;

        (c.)    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

        (d.) An explanation of the claims review procedure set forth in this
section.

        10.4.2. CLAIMS REVIEW PROCEDURE. Within sixty (60) days after receipt of
notice that the claim has been denied in whole or in part, the claimant may file
with the Management Committee a written request for a review and may, in
conjunction therewith, submit written issues and comments. Within sixty (60)
days after the filing of such a request for review, the Management Committee
shall notify the claimant in writing whether, upon review, the claim was upheld
or denied in whole or in part or shall furnish the claimant a written notice
describing specific special circumstances requiring a specified amount of
additional time (but not more than one hundred twenty (120) days from the date
the request for review was filed) to reach a decision on the request for review.

        10.4.3. GENERAL RULES.

        (a.)    No inquiry or question shall be deemed to be a claim or a
                request for a review of a denied claim unless made in accordance
                with the claims procedure. The Management Committee may require
                that any claim for benefits and any request for a review of a
                denied claim be filed on forms to be furnished by the Management
                Committee upon request.

        (b.)    All decisions on claims and on requests for a review of denied
                claims shall be made by the Management Committee.

        (c.)    The Management Committee may, in its discretion, hold one or
                more hearings on a claim or a request for a review of a denied
                claim.

        (d.)    A claimant may be represented by a lawyer or other
                representative (at the claimant's own expense), but the
                Management Committee reserves the right

                                      -13-
<PAGE>

                to require the claimant to furnish written authorization. A
                claimant's representative shall be entitled to copies of all
                notices given to the claimant.

        (e.)    The decision of the Management Committee on a claim and on a
                request for a review of a denied claim shall be served on the
                claimant in writing. If a decision or notice is not received by
                a claimant within the time specified, the claim or request for a
                review of a denied claim shall be deemed to have been denied.

        (f.)    Prior to filing a claim or a request for a review of a denied
                claim, the claimant or his or her representative shall have a
                reasonable opportunity to review a copy of this Plan and all
                other pertinent documents in the possession of the Management
                Committee.

10.5. INFORMATION FURNISHED BY PARTICIPANTS. The Company and its Affiliates
shall not be liable or responsible for any error in the computation of the
Deferral Account of a Participant resulting from any misstatement of fact made
by the Participant, directly or indirectly, to the Company, and used by it in
determining the Participant's Deferral Account. The Company shall not be
obligated or required to increase the Deferral Account of such Participant
which, on discovery of the misstatement, is found to be understated as a result
of such misstatement of the Participant. However, the Deferral Account of any
Participant which are overstated by reason of any such misstatement shall be
reduced to the amount appropriate in view of the truth.

                                   SECTION 11

                                 ADMINISTRATION

11.1. COMPANY. Functions generally assigned in this Plan to the Company are
delegated to the Committee, Chief Executive Officer and the Management Committee
as follows:

        11.1.1. CHIEF EXECUTIVE OFFICER. Except as otherwise provided by the
Plan and as set forth in Section 11.1.2, below, the Chief Executive Officer of
the Company shall delegate to a Management Committee all matters regarding the
administration of the Plan.

        11.1.2. COMMITTEE. Notwithstanding the foregoing general delegations to
the Chief Executive Officer and the Management Committee, the Committee shall
have the exclusive authority, which may not be delegated, to act for the
Company:

        (a.)    to amend or to terminate this Plan; and

        (b.)    to consent to the adoption of the Plan by other business
                entities; to establish conditions and limitations upon such
                adoption of the Plan by other business entities.

        11.1.3. MANAGEMENT COMMITTEE.

                                      -14-
<PAGE>

        (a.)    APPOINTMENT AND REMOVAL. The Management Committee, subject to
                the direction of the Committee and the Chief Executive Officer,
                shall have all of the functions and authorities generally
                assigned in this Plan to the Company. The Management Committee
                shall consist of one or members as may be determined and
                appointed from time to time by the Chief Executive Officer of
                the Company and they shall serve at the pleasure of such Chief
                Executive Officer and the Committee.

        (b.)    AUTOMATIC REMOVAL. If any individual who is a member of the
                Management Committee is a director, officer or employee when
                appointed as a member of the Management Committee, then such
                individual shall be automatically removed as a member of the
                Management Committee at the earliest time such individual ceases
                to be a director, officer or employee. This removal shall occur
                automatically and without any requirement for action by the
                Chief Executive Officer of the Company or any notice to the
                individual so removed.

        (c.)    AUTHORITY. The Management Committee may elect such officers as
                the Management Committee may decide upon. In addition to the
                other authorities delegated elsewhere in this Plan to the
                Management Committee, the Management Committee shall:

                (i.)    establish rules for the functioning of the Management
                        Committee, including the times and places for holding
                        meetings, the notices to be given in respect of such
                        meetings and the number of members who shall constitute
                        a quorum for the transaction of business,

                (ii.)   organize and delegate to such of its members as it shall
                        select authority to execute or authenticate rules,
                        advisory opinions or instructions, and other instruments
                        adopted or authorized by the Management Committee; adopt
                        such bylaws or regulations as it deems desirable for the
                        conduct of its affairs; appoint a secretary, who need
                        not be a member of the Management Committee, to keep its
                        records and otherwise assist the Management Committee in
                        the performance of its duties; keep a record of all its
                        proceedings and acts and keep all books of account,
                        records and other data as may be necessary for the
                        proper administration of the Plan,

                (iii.)  determine from the records of the Company and its
                        Affiliates the compensation, service records, status and
                        other facts regarding Participants and other employees,

                (iv.)   cause to be compiled at least annually, from the records
                        of the Management Committee and the reports and
                        accountings of the Company and its Affiliates, a report
                        or accounting of the status of the Plan and the Deferral
                        Accounts of the Participants, and make it available to
                        each Participant who shall have the right to examine
                        that

                                      -15-
<PAGE>

                        part of such report or accounting (or a true and correct
                        copy of such part) which sets forth the Participant's
                        benefits,

                (v.)    prescribe forms to be used for applications for
                        participation, benefits, notifications, etc., as may be
                        required in the administration of the Plan,

                (vi.)   set up such rules as are deemed necessary to carry out
                        the terms of this Plan,

                (vii.)  resolve all questions of administration of the Plan not
                        specifically referred to in this Section,

                (viii.) delegate or redelegate to one or more persons, jointly
                        or severally, and whether or not such persons are
                        members of the Management Committee or employees of the
                        Company, such functions assigned to the Management
                        Committee hereunder as it may from time to time deem
                        advisable, and

                (ix.)   perform all other acts reasonably necessary for
                        administering the Plan and carrying out the provisions
                        of this Plan and performing the duties imposed by the
                        Plan on it.

        (d.)    MAJORITY DECISIONS. If there shall at any time be three (3) or
                more members of the Management Committee serving hereunder who
                are qualified to perform a particular act, the same may be
                performed, on behalf of all, by a majority of those qualified,
                with or without the concurrence of the minority. No person who
                failed to join or concur in such act shall be held liable for
                the consequences thereof, except to the extent that liability is
                imposed under ERISA.

11.2. CONFLICT OF INTEREST. If any officer or employee of the Company or an
Affiliate, any member of the Committee, or any member of the Management
Committee to whom authority has been delegated or redelegated hereunder shall
also be a Participant or Beneficiary in the Plan, the individual shall have no
authority as such officer, employee, Committee or Management Committee member
with respect to any matter specially affecting his or her individual interest
hereunder (as distinguished from the interests of all Participants and
Beneficiaries or a broad class of Participants and Beneficiaries), all such
authority being reserved exclusively to the other officers, employees, Committee
or Management Committee members as the case may be, to the exclusion of such
Participant or Beneficiary, and such Participant or Beneficiary shall act only
in his or her individual capacity in connection with any such matter.

11.3. DUAL CAPACITY. Individuals, firms, corporations or partnerships identified
herein or delegated or allocated authority or responsibility hereunder may serve
in more than one fiduciary capacity.

                                      -16-
<PAGE>

11.4. ADMINISTRATOR. The Company shall be the administrator for purposes of
section 3(16)(A) of ERISA.

11.5. NAMED FIDUCIARIES. The Chief Executive Officer, the Committee and the
Management Committee shall be named fiduciaries for the purpose of section
402(a) of ERISA.

11.6. SERVICE OF PROCESS. In the absence of any designation to the contrary by
the Company, the Secretary of the Company is designated as the appropriate and
exclusive agent for the receipt of service of process directed to the Plan in
any legal proceeding, including arbitration, involving the Plan.

11.7. ADMINISTRATIVE EXPENSES. The reasonable expenses of administering the Plan
shall be payable by the Company.

                                   SECTION 12

                            AMENDMENT AND TERMINATION

The Company expects the Plan to be permanent but since future conditions
affecting the Company cannot be anticipated or foreseen, the Company reserves
the right to amend, modify or terminate the Plan at any time by action of the
Committee.

                                   SECTION 13

                             LIFE INSURANCE CONTRACT

If the Company elects to purchase one or more life insurance contracts to
provide it with funds to make payments under the Plan, the Company shall at all
times be the sole and complete owner and Beneficiary of such contract(s), and
shall have the unrestricted right to use all amounts and exercise all options
and privileges under such contract(s) without the knowledge or consent of any
Participant or Beneficiary or any other person; neither Participant, Beneficiary
nor any other person shall have any right, title or interest whatsoever in or to
any such contract(s).

                                   SECTION 14

                      MERGER, CONSOLIDATION OR ACQUISITION

In the event of a merger, consolidation or acquisition in which the Company is
not the surviving corporation, unless the successor or acquiring corporation
shall elect to continue and carry on this Plan, all Deferral Accounts shall
become immediately payable in full, notwithstanding any other provision of this
Plan to the contrary.

                                      -17-
<PAGE>

                                   SECTION 15

                                NO VESTED RIGHTS

The Plan and the elections exercisable hereunder shall not be deemed or
construed to be a written contract of employment between any Participant and the
Company or any of its Affiliates, nor shall any provision of the Plan restrict
the right of the Company or any of its Affiliates to discharge any Participant,
nor shall any provision of the Plan in any way whatsoever grant to any
Participant the right to receive any scheduled compensation, bonus, or other
payment of any nature whatsoever.

                                   SECTION 16

                                 APPLICABLE LAW

This Plan shall be construed and this Plan shall be administered to create an
unfunded plan providing deferred compensation to a select group of management or
highly compensated employees so that it is exempt from the requirements of Parts
2, 3 and 4 of Title I of ERISA and qualifies for a form of simplified,
alternative compliance with the reporting and disclosure requirements of Part 1
of Title I of ERISA. Any reference in this Plan to a statute or regulation shall
be considered also to mean and refer to any subsequent amendment or replacement
of that statute or regulation. This Plan has been executed and delivered in the
State of Minnesota and has been drawn in conformity to the laws of that State
and shall be construed and enforced in accordance with the laws of the State of
Minnesota.

                                      -18-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}]]