Document:

040794

                           KILPATRICK STOCKTON, L.L.P.

                401(k) VOLUME SUBMITTER PLAN AND TRUST AGREEMENT

                                       1
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                      Page
                                                                                                      -----
<S>                <S>                                                                                  <C>
ARTICLE I          DEFINITIONS........................................................................... 1

ARTICLE II         ELIGIBILITY AND PARTICIPATION.........................................................18

ARTICLE III        PARTICIPANT CONTRIBUTIONS.............................................................25

ARTICLE IV         EMPLOYER CONTRIBUTIONS AND FORFEITURES................................................30

ARTICLE V          TERMINATION OF SERVICE - PARTICIPANT VESTING..........................................59

ARTICLE VI         TIME AND METHOD OF PAYMENT OF BENEFITS................................................65

ARTICLE VII        WITHDRAWALS AND LOANS.................................................................82

ARTICLE VIII       EMPLOYER ADMINISTRATIVE PROVISIONS....................................................88

ARTICLE IX         PARTICIPANT ADMINISTRATIVE PROVISIONS.................................................91

ARTICLE X          PLAN ADMINISTRATOR - DUTIES WITH RESPECT TO PARTICIPANTS' ACCOUNTS....................95

ARTICLE XI         TRUSTEE POWERS AND DUTIES............................................................104

ARTICLE XII        CLAIMS PROCEDURE.....................................................................117

ARTICLE XIII       PROVISIONS RELATING TO INSURANCE AND INSURANCE COMPANY...............................120

ARTICLE XIV        MISCELLANEOUS........................................................................125

ARTICLE XV         EXCLUSIVE BENEFIT, AMENDMENT, TERMINATION............................................129

ARTICLE XVI        PARTICIPATING EMPLOYERS..............................................................136

ARTICLE XVII       QUALIFIED DOMESTIC RELATIONS ORDERS..................................................141

ARTICLE XVIII      TOP-HEAVY PLAN PROVISIONS............................................................143
</TABLE>

                                       2
<PAGE>

                           KILPATRICK STOCKTON, L.L.P.

                401(k) VOLUME SUBMITTER PLAN AND TRUST AGREEMENT

         Kilpatrick  Stockton,  L.L.P., in its capacity as Volume Submitter Plan
Sponsor,  establishes  this  Volume  Submitter  Plan  intended to conform to and
qualify  under  section  401 and 501 of the  Internal Revenue  Code of 1986,  as
amended.  An Employer  establishes a Plan and Trust under this Volume  Submitter
Plan by executing an Adoption  Agreement.  If the Employer adopts this Plan as a
restated Plan in  substitution  for, and in amendment of, an existing  plan, the
provisions of this Plan, as a restated  Plan,  apply solely to an Employee whose
employment with the Employer  terminates on or after the Restated Effective Date
of the Employer's Plan. If an Employee's employment with the Employer terminates
prior to the  Restated  Effective  Date,  that  Employee is entitled to benefits
under the Plan as the Plan existed on the date of the Employee's  termination of
employment.

                                    ARTICLE I
                                   DEFINITIONS

         1.01   "Account"   means  the  separate   account(s)   which  the  Plan
Administrator  or the Trustee  maintains for a Participant  under the Employer's
Plan, whether attributable to Employer or Participant contributions.

         1.02 "Account  Balance"  means the amount  standing in a  Participant's
Account(s)  as  of  any  date  derived  from  both  Employer  contributions  and
Participant contributions, if any.

         1.03  "Adjustment  Date" means the last day of an Employer's Plan Year.
Subject to the Employer's adoption of an additional  Valuation Date, provided by
the Adoption  Agreement Section 1.51, the Plan  Administrator will make all Plan
allocations  for a particular  Plan Year as of the Adjustment  Date of that Plan
Year.

         1.04 "Adoption  Agreement" means the document executed by each Employer
adopting this Volume Submitter Plan. The terms of this Volume Submitter Plan, as
modified by the terms of an adopting Employer's Adoption Agreement, constitute a
separate  Plan and Trust to be construed as a single  Agreement.  Each  elective
provision  of the Adoption  Agreement  corresponds  by section  reference to the
section of the Plan which establishes the election.

                                       1
<PAGE>

         1.05 "Affiliated Employer" means the Employer and any corporation which
is a member of a controlled  group of  corporations  (as defined in Code section
414(b))  which  includes  the  Employer;  any trade or business  (whether or not
incorporated)  which is under common control (as defined in Code section 414(c))
with the Employer;  any organization  (whether or not  incorporated)  which is a
member of an  affiliated  service  group (as defined in Code  section  414(m) or
414(o))  which  includes  the  Employer;  and any other  entity  required  to be
aggregated with the Employer pursuant to regulations under Code section 414(o).

         1.06  "Annuity  Starting  Date" means the first day of the first period
for which the Plan pays an amount as an annuity or, in the case of a benefit not
payable  in the form of an  annuity,  the  first day on which  all  events  have
occurred which entitle the Participant to such benefit.

         1.07 "Beneficiary" is a person or persons or legal entity designated by
a  Participant  who is or may become  entitled to a benefit under the Plan after
the  Participant's  death. A Beneficiary who becomes entitled to a benefit under
the Plan  remains a  Beneficiary  under the Plan  until  the  Trustee  has fully
distributed  his  benefit  to  him.  A  Beneficiary's  right  to (and  the  Plan
Administrator's or Trustee's duty to provide to the Beneficiary)  information or
data  concerning  the Plan does not arise  until he first  becomes  entitled  to
receive a benefit under the Plan.

         1.08 "Break in Service"  means a twelve (12)  consecutive  month period
during  which a  Participant  completes  five  hundred  (500) or fewer  Hours of
Service  with  the  Employer  (excluding,  however,  any  period  covered  by an
authorized leave of absence).  The "twelve consecutive month period" is the same
twelve  (12)  consecutive  month  period for which the Plan  measures  "Years of
Service"  under Section 1.52. For purposes of vesting,  if,  pursuant to Section
1.52, the Plan does not require more than 500 Hours of Service to receive credit
for a Year of  Service,  a  Participant  incurs a Break of  Service in a vesting
computation period in which he fails to complete a Year of Service.

         1.09 "Cash or Deferred Contribution" means the contribution made to the
Plan by the Employer which is subject to the election by a Participant to either
receive the  contribution  in cash  currently or to defer  receipt of all or any
portion of such  contribution,  pursuant to the terms and  provisions of Section
4.02.

                                       2
<PAGE>

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

         1.11  "Compensation"  means,  except  as  provided  in  the  Employer's
Adoption  Agreement  Section  1.11,  the  Participant's  Earned  Income,  wages,
salaries,  fees for professional service and other amounts received for personal
services  actually  rendered  in the  course  of  employment  with the  Employer
maintaining the Plan (including,  but not limited to,  commissions paid to sales
persons,  compensation  for  services on the basis of a  percentage  of profits,
commissions  on insurance  premiums,  tips and bonuses).  For any  Self-Employed
Individual, Compensation will mean Earned Income. The Employer must elect in its
Adoption Agreement Section 1.11 whether to include Elective Contributions in the
definition of Compensation. "Elective Contributions" are amounts excludible from
the Employee's gross income under Code sectionsection 125, 402(a)(8),  402(h) or
403(b), and contributed by the Employer,  at the Employee's election,  to a Code
section 401(k) arrangement (other than this Plan), a simplified employee pension
plan, cafeteria plan or tax-sheltered  annuity. The term "Compensation" does not
include:

                  (a)    Employer    contributions    (other   than    "Elective
         Contributions,"  if includible in the definition of Compensation  under
         Section  1.11  of the  Employer's  Adoption  Agreement)  to a  plan  of
         deferred   compensation  to  the  extent  the   contributions  are  not
         includible  in the gross income of the Employee for the Taxable Year in
         which  contributed,  on behalf of an Employee to a simplified  employee
         pension plan to the extent such  contributions  are excludible from the
         Employee's gross income,  and any distributions from a plan of deferred
         compensation,  regardless of whether such amounts are includible in the
         gross income of the Employee when distributed;

                  (b) Amounts  realized  from the  exercise  of a  non-qualified
         stock  option,  or when  restricted  stock  (or  property)  held by the
         Employee either becomes freely  transferable or is no longer subject to
         a substantial risk of forfeiture;

                  (c)  Amounts  realized  from  the  sale,   exchange  or  other
         disposition of stock  acquired  under a stock option  described in Part
         II, Subchapter D, Chapter 1 of the Code; and

                  (d) Other amounts which receive special tax benefits,  such as
         premiums  for group life  insurance  (but only to the  extent  that the
         premiums are not  includible  in the gross  income of the  Employee) or

                                       3
<PAGE>

         contributions  made by the  Employer  (whether  or not  under a  salary
         reduction  agreement)  towards  the  purchase  of an  annuity  contract
         described  in  Code  section  403(b)(whether  or not  the  amounts  are
         actually excludible from the gross income of the Employee),  other than
         "Elective   Contributions"  if  elected  in  the  Employer's   Adoption
         Agreement Section 1.11.

         Any  reference  in this  Plan to  Compensation  is a  reference  to the
definition  in  this  Section  1.11,  unless  the  Plan  reference  specifies  a
modification to this definition.  The Plan  Administrator will take into account
only Compensation paid for the relevant period. A Compensation  payment includes
Compensation by the Employer  through another person under the common  paymaster
provisions in Code sectionsection 3121 and 3306.

         For  Plan  Years   beginning   after  December  31,  1988,  the  annual
Compensation  of each  Participant  taken into account  under the Plan shall not
exceed $200,000.  This limitation shall be adjusted by the Secretary at the same
time and in the same manner as under Code section 415(d), except that the dollar
increase in effect on January 1 of any calendar year is effective for Plan Years
beginning  in such  calendar  year  and the  first  adjustment  to the  $200,000
limitation is effected on January 1, 1990. If the Plan  determines  Compensation
on a period of time that contains fewer than twelve (12) calendar  months,  then
the annual  Compensation  limit is an amount  equal to the  annual  Compensation
limit for the calendar year in which the Compensation period begins,  multiplied
by the ratio  obtained  by  dividing  the number of full months in the period by
twelve (12).

         In determining  the  Compensation of a Participant for purposes of this
limitation,  the rules of Code section 414(q)(6) shall apply, except in applying
such rules,  the term "family" shall include only the spouse of the  Participant
and any lineal descendants of the Participant who have not attained age nineteen
(19)  before  the  close  of  the  year.  If,  for a  Plan  Year,  the  combined
Compensation  of the  Employee  and such  family  members  who are  Participants
entitled to an allocation  for that Plan Year exceeds the $200,000 (or adjusted)
limitation,  "Compensation"  for each  such  Participant,  for  purposes  of the
contribution  and  allocation  provisions  of  Article  IV,  means his  Adjusted
Compensation.  "Adjusted  Compensation" is the amount which bears the same ratio
to  the  $200,000  (or  adjusted)  limitation  as  the  affected   Participant's
Compensation (without regard to the $200,000  Compensation  limitation) bears to
the combined  Compensation of all the affected  Participants in the family unit.
If the Plan uses permitted disparity, the Plan Administrator must  determine the

                                       4
<PAGE>

integration  level  of each  affected  family  member  Participant  prior to the
proration of the $200,000 Compensation limitation,  but the combined integration
level of the  affected  Participants  may not exceed  $200,000  (or the adjusted
limitation).  The combined Excess  Compensation of the affected  Participants in
the family unit may not exceed $200,000 (or the adjusted  limitation)  minus the
affected  Participants'  combined  integration  level (as  determined  under the
preceding   sentence).   If  the  combined  Excess  Compensation   exceeds  this
limitation,   the  Plan  Administrator  will  prorate  the  Excess  Compensation
limitation  among the affected  Participants in the family unit in proportion to
each such individual's  Adjusted  Compensation  minus his integration level. The
Employer  may  elect to use a  different  method  in  determining  the  Adjusted
Compensation  of the  affected  Participants  by  specifying  the  method  in an
addendum to the Adoption Agreement, numbered Section 1.11.

         For purposes of determining  whether the Plan discriminates in favor of
Highly Compensated Employees, Compensation means Compensation as defined in this
Section  1.11,  except:  (1) the  Employer  may elect to  include  or to exclude
Elective Contributions,  irrespective of the Employer's election in its Adoption
Agreement regarding Elective  Contributions;  and (2) the Employer will not give
effect to any elections made in the  "Modifications to Compensation  definition"
section of Adoption Agreement Section 1.11. The Employer's election described in
clause (1) must be consistent  and uniform with respect to all Employees and all
plans of the Employer for any particular  Plan Year. The Employer,  irrespective
of clause (2), may elect to exclude from this  nondiscrimination  definition  of
Compensation, any items of Compensation excludible under Code section 414(s) and
the applicable Treasury regulations,  provided such adjusted definition conforms
to the nondiscrimination requirements of those regulations.

         In addition to other applicable  limitations set forth in the Plan, and
notwithstanding any other provision of the Plan to the contrary,  for Plan Years
beginning on or after January 1, 1994, the annual  Compensation of each Employee
taken into account under the Plan shall not exceed the annual compensation limit
set forth under the Omnibus Budget  Reconciliation Act of 1993 ("OBRA'93").  The
OBRA'93 annual  compensation limit is $150,000,  as adjusted by the Commissioner
for  increases  in  the  cost  of  living  in   accordance   with  Code  section
401(a)(17)(B).  The  cost-of-living  adjustment  in effect for a  calendar  year
applies to any period, not exceeding twelve (12) months, over which Compensation
is  determined  (determination  period)  beginning in such  calendar  year. If a

                                       5
<PAGE>

determination  period  consists of fewer than twelve  (12)  months,  the OBRA'93
annual  compensation  limit will be multiplied  by a fraction,  the numerator of
which is the number of months in the determination  period,  and the denominator
of which is twelve (12).

         For Plan Years  beginning on or after January 1, 1994, any reference in
this Plan to the limitation under Code section 401(a)(17) shall mean the OBRA'93
annual compensation limit set forth in this provision.

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

         1.12 "Deferral  Contributions" mean Salary Reduction  Contributions and
Cash or Deferred  Contributions the Employer  contributes to the Trust on behalf
of an  Eligible  Employee,  irrespective  of  whether,  in the  case  of Cash or
Deferred  Contributions,  the  contribution  is at the election of the Employee.
Deferral  Contributions are 100%  Nonforfeitable at all times and are subject to
the distribution restrictions described in Section 6.11.

         1.13   "Discretionary   Nonelective   Contributions"  mean  Nonelective
Contributions  made to the  Plan by the  Employer,  in its  discretion,  and are
allocated to eligible Participants pursuant to the provisions of Section 4.05.

         1.14  "Disability"  means the  Participant,  because of a  physical  or
mental  disability,  will be  unable to  perform  the  duties  of his  customary
position  of  employment  (or is unable to  engage  in any  substantial  gainful
activity) for an indefinite period which the Plan  Administrator  considers will
be of long continued  duration.  A Participant also is disabled if he incurs the
permanent  loss  or loss of use of a  member  or  function  of the  body,  or is
permanently disfigured, and incurs a Separation from Service. The Plan considers
a  Participant  disabled  on the  date  the Plan  Administrator  determines  the
Participant satisfies the definition of Disability, based on a statement from an
approved  physician.  The Plan  Administrator  will apply the provisions of this
Section 1.14 in a nondiscriminatory, consistent and uniform manner. The Employer

                                       6
<PAGE>

may provide an alternate definition of Disability in an addendum to its Adoption
Agreement, numbered Section 1.14.

         1.15 "Early  Retirement Age" and "Early Retirement Date," if any, shall
be as specified in the Employer's Adoption Agreement Section 1.15. A Participant
shall become  fully vested upon  satisfying  the Early  Retirement  requirements
provided in the Employer's  Adoption Agreement if still employed by the Employer
at his Early Retirement Age.

         A former  Participant who terminates  employment  after  satisfying the
service  requirement for Early  Retirement,  if any,  provided in the Employer's
Adoption  Agreement,  and who thereafter  reaches the age  requirement for Early
Retirement, as specified in the Adoption Agreement, shall be entitled to receive
his benefits under the Plan.

         1.16 "Earned  Income"  means net earnings from  self-employment  in the
trade or business with respect to which the Employer has  established  the Plan,
provided  personal  services of the individual  are a material  income-producing
factor.  The Plan  Administrator  will determine net earnings  without regard to
items  excluded from gross income and the  deductions  allocable to those items.
The Plan  Administrator  will determine net earnings after the deduction allowed
to the Self-Employed  Individual for all contributions made by the Employer to a
qualified  plan and, for Plan Years  beginning  after  December  31,  1989,  the
deduction   allowed  to  the   Self-Employed   under  Code  section  164(f)  for
self-employment taxes.

         1.17 "Effective Date" and "Restated Effective Date," if applicable,  of
this Plan are the dates specified in the Employer's  Adoption  Agreement Section
1.17.

         1.18 "Elective  Deferrals" mean all Salary Reduction  Contributions and
that portion of any Cash or Deferred Contribution which the Employer contributes
to the Trust at the election of an Eligible  Employee.  Any portion of a Cash or
Deferred Contribution contributed to the Trust because of the Employee's failure
to make a cash election is an Elective Deferral.  However, any portion of a Cash
or Deferred  Contribution  over which the Employee does not have a cash election
is not an Elective  Deferral.  Elective  Deferrals do not include  amounts which
have become  currently  available  to the  Employee  prior to the  election  nor
amounts  designated as  nondeductible  contributions  at the time of deferral or
contribution.

                                       7
<PAGE>

         1.19   "Employee"   means  any  employee   (including  a  Self-Employed
Individual) of the Employer maintaining this Plan, or of any Affiliated Employer
which adopts this Plan in  accordance  with the terms and  provisions of Section
16.01.  The Employer  must specify in its  Adoption  Agreement  Section 1.19 any
Employee,  or class of  Employees,  not  eligible  to  participate  in the Plan.
Notwithstanding   anything  herein  to  the  contrary,   collectively  bargained
employees  shall not be  eligible to  participate  in the Plan.  This  exclusion
applies to any employee of the Employer  included in a unit of employees covered
by an agreement which the Secretary of Labor finds to be a collective bargaining
agreement between employee representatives and one or more employers, unless the
collective  bargaining agreement requires the employee to be included within the
Plan. The term  "employee  representatives"  does not include any  organization,
more than half the members of which are owners,  officers,  or executives of the
Employer.  In addition,  nonresident aliens who do not receive any earned income
(as defined in Code section  911(d)(2)) which constitutes U.S. source income (as
defined in Code section 861(a)(3)) are excluded from participation in the Plan.

         1.20 "Employee  Contributions" mean contributions made by a Participant
on an after-tax basis,  whether voluntary or mandatory,  and designated,  at the
time of contribution,  as an employee (or nondeductible) contribution.  Elective
Deferrals and Deferral Contributions are not Employee Contributions. Participant
nondeductible contributions,  including Mandatory Contributions made pursuant to
Section 3.02 of the Plan, are Employee Contributions.

         1.21 "Employer" means the entity  specified in the Adoption  Agreement,
any  Affiliated  Employer  which  adopts this Plan and becomes a  "Participating
Employer"  hereunder,  as defined in Section 16.01, by executing a Participation
Agreement to the Employer's  Adoption  Agreement,  and any successor which shall
maintain this Plan or any predecessor which has maintained this Plan.

         1.22  "Employment  Commencement  Date"  means  the  date on  which  the
Employee first performs an Hour of Service for the Employer;  provided, however,
the  Employment  Commencement  Date of a terminated  Participant  who returns to
employment  with the Employer  shall be determined in accordance  with the rules
for crediting prior service in Section 5.06.

                                       8

<PAGE>

         1.23 "Entry  Date" means the date(s)  specified  in Section 1.23 of the
Employer's Adoption Agreement on which an eligible Employee begins participating
in the Plan.

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

         1.25 "Highly  Compensated  Employee" includes Highly Compensated active
Employees and Highly Compensated former Employees.

         A Highly Compensated active Employee includes any Employee who performs
service  for the  Employer  during the  determination  year and who,  during the
look-back year:

                  (a)  received  Compensation  from the  Employer  in  excess of
         $75,000 (as adjusted pursuant to Codesection 415(d));

                  (b)  received  Compensation  from the  Employer  in  excess of
         $50,000 (as adjusted  pursuant to Code section 415(d)) and was a member
         of the top-paid group for such year; or

                  (c) was an officer of the Employer  and received  Compensation
         during such year that is greater than fifty percent (50%) of the dollar
         limitation in effect under Code section 415(b)(1)(A).

         The term "Highly Compensated Employee" also includes: (i) Employees who
are both described in the preceding sentence if the term "determination year" is
substituted  for the term  "look-back  year" and the  Employee is one of the one
hundred  (100)  Employees who received the most  Compensation  from the Employer
during the  determination  year;  and (ii)  Employees  who are five percent (5%)
owners at any time during the look-back year or  determination  year. The number
of  officers  taken  into  account  under  clause  (c) above will not exceed the
greater of three (3) or ten percent (10%) of the total number (after application
of Code section 414(q) exclusions) of Employees, but in no event more than fifty
(50) officers.  If no officer has satisfied the Compensation  requirement of (c)
above during either a  determination  year or look-back  year,  the highest paid
officer  for such year shall be treated as a Highly  Compensated  Employee.

         For purposes of this Section 1.25, the determination  year shall be the
Plan  Year  and the  look-back  year  shall  be the  twelve  (12)  month  period
immediately  preceding the  determination  year.  However,  in  accordance  with
Treasury  regulations,  the  Employer  may  make a  calendar  year  election  to

                                       9
<PAGE>

determine the Highly  Compensated  Employees for the Plan Year. Such an election
shall be made in an  addendum to the  Employer's  Adoption  Agreement,  numbered
Section 1.25. If such a calendar year election is made, the look-back year shall
be the  calendar  year ending with or within the Plan Year for which  testing is
being performed,  and the determination year (if applicable) shall be the period
of time, if any,  which extends  beyond the look-back  year and ends on the last
day of the Plan Year for which testing is being performed (the "lag period"). If
the "lag period" is less than twelve months long, the dollar  threshold  amounts
specified in (a), (b) and (c) above,  shall be prorated based upon the number of
months in the "lag  period." The calendar  year election must apply to all plans
and arrangements of the Employer.

         A  Highly   Compensated  former  Employee  includes  any  Employee  who
separated  from  Service  (or was  deemed to have  separated  from  Service,  as
determined under Treasury regulations) prior to the determination year, performs
no Service for the  Employer  during the  determination  year,  and was a Highly
Compensated  active Employee for either the separation year or any determination
year  ending on or after the  Employee's  fifty-fifth  (55th)  birthday.  If the
former Employee's  Separation from Service occurred prior to January 1, 1987, he
is a Highly Compensated Employee only if he satisfied clause (a) of this Section
1.25 or received  Compensation in excess of $50,000 during:  (1) the year of his
Separation  from Service (or the prior  year);  or (2) any year ending after his
fifty-fourth (54th) birthday.

         If an Employee is,  during a  determination  year or look-back  year, a
Family  Member of either a five  percent  (5%)  owner who is an active or former
Employee or a Highly Compensated Employee who is one of the ten (10) most Highly
Compensated  Employees ranked on the basis of Compensation  paid by the Employer
during  such year,  then the Family  Member and the five  percent  (5%) owner or
top-ten  Highly  Compensated  Employee  shall be  aggregated.  For  purposes  of
determining Highly Compensated  Employees,  "Family Member" shall mean a spouse,
lineal ascendant or descendant, or a spouse of a lineal ascendant or descendant.
In such case,  the Family  Member and five percent (5%) owner or top-ten  Highly
Compensated   Employee  shall  be  treated  as  a  single   Employee   receiving
Compensation  and  Plan  contributions  or  benefits  equal  to the  sum of such
Compensation and contributions or benefits of the Family Member and five percent
(5%) owner or top-ten Highly Compensated Employee. This aggregation rule applies
to a Family Member even if that Family Member is a Highly  Compensated  Employee
without family aggregation.

                                       10
<PAGE>

         1.26      "Hour of Service" means:

                  (a) Each  Hour of  Service  for  which  the  Employer,  either
         directly or indirectly,  pays an Employee, or for which the Employee is
         entitled to payment,  for the  performance  of duties for the Employer.
         The Hours of Service  under this  subparagraph  (a) will be credited to
         the Employee for the computation  period in which the Employee performs
         the duties, irrespective of when paid;

                  (b) Each  Hour of  Service  for  which  the  Employer,  either
         directly or indirectly,  pays an Employee, or for which the Employee is
         entitled   to  payment   (irrespective   of  whether   the   employment
         relationship is terminated), for reasons other than for the performance
         of  duties  during a  computation  period,  such as  leave  of  absence
         (including  maternity  or paternity  leave),  vacation,  holiday,  sick
         leave, illness, incapacity (including disability), layoff, jury duty or
         military duty. No more than 501 Hours of Service will be credited under
         this  subparagraph  (b)  to  an  Employee  on  account  of  any  single
         continuous period during which the Employee does not perform any duties
         (whether or not such period occurs during a single computation period).
         Hours of Service under this  subparagraph  (b) will be  calculated  and
         credited  in  accordance  with the rules of  paragraphs  (b) and (c) of
         Labor  Regulation  section   2530.200b-2,   which  the  Plan,  by  this
         reference,  specifically  incorporates in full within this subparagraph
         (b); and

                  (c)  Each  Hour of  Service  for  back  pay,  irrespective  of
         mitigation  of damages,  to which the  Employer has agreed or for which
         the Employee has received an award.  The same Hours of Service will not
         be credited both under  subparagraph  (a) or  subparagraph  (b), as the
         case may be, and under this  subparagraph (c). Hours of Service will be
         credited  under  this   subparagraph   (c)  to  the  Employee  for  the
         computation  period(s)  to which  the award or the  agreement  pertains
         rather than for the computation period in which the award, agreement or
         payment is made.

         A  computation  period for  purposes of this  Section  1.26 is the Plan
Year,  Year of Service  period,  Break in  Service  period or other  period,  as
determined  under the Plan provision for which the  Employee's  Hours of Service
are being measured.

         Hours of Service will be credited for employment  with other members of
an affiliated  service group (under Code section 414(m)),  a controlled group of
corporations  (under Code section  414(b)),  or a group of trades or  businesses

                                       11
<PAGE>

under  common  control  (under Code  section  414(c)) of which the Employer is a
member,  and any  other  entity  required  to be  aggregated  with the  Employer
pursuant to Code section 414(o).  Hours of Service will also be credited for any
individual  considered  an Employee for purposes of this Plan under Code section
414(n) or 414(o).

         The  Employer  must elect in its  Adoption  Agreement  Section 1.26 the
method the Plan  Administrator  will use in crediting an Employee  with Hours of
Service.  For purposes of the Plan,  "actual" method means the  determination of
Hours of Service  from  records of hours worked and hours for which the Employer
makes  payment or for which  payment is due from the  Employer.  If the Employer
elects to apply an "equivalency"  method,  for each equivalency period for which
the Employer  would credit the Employee  with at least one Hour of Service,  the
Employer  will  credit the  Employee  with:  (i) ten (10) Hours of Service for a
daily  equivalency;   (ii)  forty-five  (45)  Hours  of  Service  for  a  weekly
equivalency;  (iii) ninety-five (95) Hours of Service for a semimonthly  payroll
period  equivalency;  and (iv) one hundred  ninety  (190) Hours of Service for a
monthly equivalency.

         1.27 "Leased  Employee"  means an individual  (who  otherwise is not an
Employee  of the  Employer)  who,  pursuant to a leasing  agreement  between the
Employer and any other person,  has performed  services for the Employer (or for
the Employer and any persons  related to the Employer within the meaning of Code
section  414(n)(6)) on a substantially full time basis for at least one (1) year
and who performs services historically  performed by employees in the Employer's
business field. Unless the Leased Employee is otherwise covered in a safe harbor
plan as provided below,  the Plan treats a Leased Employee as an Employee of the
Employer  for  purposes  of  determining   the  number  or  identity  of  Highly
Compensated  Employees,  and for  purposes of the pension  requirements  of Code
section  414(n)(3).  If a Leased Employee is treated as an Employee by reason of
this  Section  1.27,  "Compensation"  includes  Compensation  from  the  leasing
organization which is attributable to services performed for the Employer.

         The Plan does not treat a Leased Employee as an Employee if the leasing
organization covers the employee in a safe harbor plan and, prior to application
of  this  safe  harbor  plan  exception,  twenty  percent  (20%)  or less of the
Employer's  Employees  (other  than  Highly  Compensated  Employees)  are Leased
Employees.  A safe  harbor  plan  is a money  purchase  pension  plan  providing
immediate  participation,  full  and  immediate  vesting,  and  a  nonintegrated
contribution  formula  equal to at least  ten  percent  (10%) of the  employee's

                                       12

<PAGE>

compensation  without  regard to  employment  by the leasing  organization  on a
specified  date.  The safe harbor  plan must  determine  the ten  percent  (10%)
contribution on the basis of  compensation as defined in Code section  415(c)(3)
plus Elective Contributions (as defined in Section 1.11).

         The  Plan  Administrator  must  apply  this  Section  1.27 in a  manner
consistent  with Code  sectionsection  414(n)  and  414(o)  and the  regulations
thereunder. The Employer must specify in the Adoption Agreement Section 1.27 the
manner in which the Plan will determine the allocation of Employer contributions
and  Participant  forfeitures on behalf of a Participant if the Participant is a
Leased Employee covered by a plan maintained by the leasing organization.

         1.28 "Limitation  Year" means the twelve (12) consecutive  month period
specified in the Employer's Adoption Agreement Section 1.28 which applies to the
limitations  on  allocations  described  in  Article  IV.  All  qualified  plans
maintained by the Employer must use the same Limitation  Year. If the Limitation
Year is amended to a new different twelve (12) consecutive month period, the new
Limitation  Year must begin on a date  within the  Limitation  Year in which the
amendment is made.

         1.29 "Mandatory  Contributions"  mean Employee  Contributions  which an
Employee is required to contribute to the Plan on a nondeductible basis in order
to be eligible to share in the Employer's Matching Contribution.

         1.30 "Matching  Contributions"  mean contributions made by the Employer
on account of Elective  Deferrals under a Code section 401(k)  arrangement or on
account  of  Mandatory   Contributions.   Matching  Contributions  also  include
Participant  forfeitures  allocated  on account of such  Elective  Deferrals  or
Mandatory Contributions.

         1.31 "Named  Fiduciary"  means the person,  designated  as  hereinafter
provided,  who shall be in charge of the  operation  and  administration  of the
Plan.

         1.32 "Net Profit" means with respect to any Taxable Year the Employer's
net  income or profit  for such  Fiscal  Year  determined  upon the basis of the
Employer's  books of account in accordance  with generally  accepted  accounting
principles,   without  any  reduction  for  taxes  based  upon  income,  or  for
contributions made by the Employer to this Plan and any other qualified plan.

                                       13

<PAGE>

         1.33   "Nonforfeitable"   means  a   Participant's   or   Beneficiary's
unconditional  claim, legally enforceable against the Plan, to the Participant's
Account Balance.

         1.34  "Nonelective   Contributions"  mean  contributions  made  by  the
Employer  which are not subject to a deferral  election by an Employee and which
are not Matching Contributions.

         1.35 "Nonhighly Compensated Employee" means any Employee who is neither
a Highly Compensated Employee nor a Family Member.

         1.36  "Nontransferable  Annuity"  means an  annuity  which by its terms
provides that it may not be sold,  assigned,  discounted,  pledged as collateral
for a loan or security for the  performance  of an obligation or for any purpose
to any person  other than the  insurance  company.  If the Plan  distributes  an
annuity contract, the contract must be a Nontransferable Annuity.

         1.37 "Normal  Retirement Age" and "Normal  Retirement Date" shall be as
specified in the Employer's Adoption Agreement Section 1.37. A Participant shall
become fully vested in his Account  Balance upon his Normal  Retirement Age, and
shall become  eligible to receive a distribution of his Account Balance upon his
Normal Retirement Date.

         1.38  "Participant"  is an Employee who is eligible to be and becomes a
Participant  in  accordance  with the  provisions of Section 2.01 and shall have
acquired  either a  forfeitable  or  Nonforfeitable  interest  in the Trust Fund
pursuant to the provisions of the Plan.

         1.39 "Plan" means the retirement  plan  established or continued by the
Employer in the form of this Agreement,  including the Adoption  Agreement under
which the Employer has elected to participate in this Volume Submitter Plan. The
Employer must designate the name of the Plan in the Plan Information  section of
its Adoption Agreement. The Plan and the Trust created by each adopting Employer
is a separate Plan and a separate Trust, independent from the plan and the trust
of  any  other  employer  adopting  this  Volume  Submitter  Plan.  All  section
references  within  the Plan are Plan  section  references  unless  the  context
clearly indicates otherwise.

         1.40 "Plan  Administrator"  means the Named Fiduciary with authority to
control and manage the operation and  administration  of the Plan, as designated
in the  Plan  Information  section  of the  Employer's  Adoption  Agreement.  In
addition to its other duties, the Plan Administrator has full responsibility for

                                       14
<PAGE>

compliance  with  the  reporting  and  disclosure  requirements  under  ERISA as
respects this Agreement.

         1.41  "Plan  Year"  means the  twelve  (12)  consecutive  month  period
specified in the Employer's  Adoption  Agreement Section 1.41. Any short initial
or other Plan Year shall be designated in the Adoption Agreement.

         1.42 "Qualified  Matching  Contributions"  mean Matching  Contributions
which  are 100%  Nonforfeitable  at all  times  and  which  are  subject  to the
distribution  restrictions described in Section 6.11. Matching Contributions are
not 100%  Nonforfeitable at all times if the Employee has a 100%  Nonforfeitable
interest  because of his Years of Service  taken  into  account  under a vesting
schedule.  Any Matching  Contributions  allocated to a  Participant's  Qualified
Matching   Contributions  Account  under  the  Plan  automatically  satisfy  the
definition of Qualified Matching Contributions.

         1.43   "Qualified    Nonelective    Contributions"   mean   Nonelective
Contributions  which are 100%  Nonforfeitable at all times and which are subject
to  the  distribution   restrictions  described  in  Section  6.11.  Nonelective
Contributions  are not 100%  Nonforfeitable  at all times if the  Employee has a
100% Nonforfeitable  interest because of his Years of Service taken into account
under  a  vesting  schedule.  Any  Nonelective   Contributions  allocated  to  a
Participant's  Qualified  Nonelective   Contributions  Account  under  the  Plan
automatically satisfy the definition of Qualified Nonelective Contributions.

         1.44 "Salary Reduction  Contributions"  mean the contributions  made to
the Plan by the  Employer  subject to the  election  by a  Participant  to defer
receipt  of all or any  portion  of  such  contribution  by a  reduction  in his
Compensation, pursuant to the terms and provisions of Section 4.02.

         1.45    "Self-Employed    Individual/Owner-Employee."    "Self-Employed
Individual"  means an  individual  who has Earned  Income (or who would have had
Earned  Income  but for the fact  that the  trade or  business  did not have net
earnings)  for the Taxable Year from the trade or business for which the Plan is
established.  "Owner-Employee" means a Self-Employed  Individual who is the sole
proprietor  in  the  case  of  a  sole  proprietorship.  If  the  Employer  is a
partnership,  "Owner-Employee" means a Self-Employed Individual who is a partner
and who owns more  than ten  percent  (10%) of either  the  capital  or  profits
interest of the partnership.

                                       15
<PAGE>

         1.46  "Service"  means any period of time the Employee is in the employ
of the  Employer,  including  any period the  Employee is on an unpaid  leave of
absence  authorized by the Employer  under a uniform,  nondiscriminatory  policy
applicable to all  Employees.  "Separation  from Service"  means the Employee no
longer has an employment relationship with the Employer maintaining this Plan.

         1.47  "Taxable  Year" means the twelve (12)  consecutive  month  period
adopted by the Employer for its tax purposes,  as  designated in the  Employer's
Adoption  Agreement  Section  1.47.  Any short  initial  Taxable  Year  shall be
designated in the Adoption Agreement. If, at any time, the term "Employer" shall
include more than one separate  entity and all such separate  entities shall not
have the same fiscal year,  then such fiscal year of each separate  entity shall
be the "Taxable Year" for each such separate entity.

         1.48 "Trust" means the legal entity created under the  Employer's  Plan
by which the  contributions  to the Plan shall be received,  held,  invested and
disbursed to or for the benefit of Plan Participants or Beneficiaries.

         1.49 "Trust  Fund" means all property of every kind held or acquired by
the Employer's Plan, other than incidental benefit insurance contracts, together
with all income, profits or increments thereon.

         1.50  "Trustee"  means  the  person(s),  corporation,  association,  or
combination of them, who as Trustee execute the Employer's  Adoption  Agreement,
or any successor in office who in writing  accepts the position of Trustee.  The
Employer  must  designate  the  Trustee in the Plan  Information  section of its
Adoption Agreement.

         1.51  "Valuation  Date"  shall  mean  the  date(s)   specified  in  the
Employer's  Adoption  Agreement Section 1.51 as of which Plan allocations may be
made and  Accounts  valued,  which  date(s)  shall be in  addition to the Plan's
Adjustment Date.

         1.52  "Year of  Service"  means any  twelve  consecutive  month  period
designated in the Employer's  Adoption  Agreement  Section 1.52 during which the
Employee  completes not less than the number of Hours of Service (not  exceeding
1,000) specified in the Employer's  Adoption  Agreement.  Furthermore,  Years of
Service  completed  by  any  Employee  with  any  corporation,  partnership,  or
proprietorship  which is a member of a controlled  group of corporations  within
the meaning of Code section 1563(a),  determined without regard to Code sections
1563(a)(4) and 1563(e)(3)(C), or is a member of an affiliated service group with

                                       16

<PAGE>

the Employer, or has adopted the Plan as a Participating Employer, in accordance
with  Section  16.01,  shall be  recognized  as Years of Service  with any other
Employer.

                                       17
<PAGE>

                                   ARTICLE II
                          ELIGIBILITY AND PARTICIPATION

         2.01  ELIGIBILITY.  Each Employee  becomes a Participant in the Plan in
               -----------
accordance  with the  participation  and  Entry  Date  options  selected  by the
Employer  in its  Adoption  Agreement  Sections  2.01  and  1.23,  respectively,
provided such Employee is still employed by the Employer on his Plan Entry Date.
If this Plan is a restated Plan, each Employee who was a Participant in the Plan
on the day before the Restated  Effective Date continues as a Participant in the
Plan,  irrespective of whether he satisfies the participation  conditions in the
restated Plan, unless otherwise provided in the Employer's Adoption Agreement.

         2.02 YEAR OF SERVICE -  PARTICIPATION.  For  purposes of an  Employee's
              --------------------------------
participation in the Plan under Adoption  Agreement Section 2.01, the Plan takes
into account all of his Years of Service with the  Employer,  except as provided
in Section  2.03.  With  respect to  eligibility  to  participate,  the  initial
eligibility computation period is the first twelve (12) consecutive month period
measured from the Employment  Commencement  Date.  The Plan measures  succeeding
eligibility  computation  periods in accordance  with the option selected by the
Employer in its Adoption Agreement. If the Employer elects to measure subsequent
periods on a Plan Year basis,  an Employee who receives  credit for the required
number of Hours of Service during the initial eligibility computation period and
during the first  applicable  Plan Year will receive credit for two (2) Years of
Service under Article II. For purposes of  eligibility  to  participate,  if the
Employer elects a service condition under Adoption  Agreement Section 2.01 based
on  months,  the Plan does not apply any Hour of Service  requirement  after the
completion of the first Hour of Service.

         2.03  BREAK IN SERVICE - PARTICIPATION.
               --------------------------------

                  (a) Two (2) Year Eligibility. If the Employer elects a two (2)
                      ------------------------
         Years of Service  condition for  eligibility  purposes  under  Adoption
         Agreement  Section 2.01, the Plan treats an Employee who incurs a Break
         in Service and who has never become a Participant  as a new Employee on
         the date he first  performs an Hour of Service for the  Employer  after
         the Break in Service.

                  (b) Suspension of Years of Service. The Employer must elect in
                      ------------------------------
         its Adoption  Agreement Section 2.03 whether a Participant will incur a
         suspension of Years of Service after  incurring a Break in Service.  If
         this rule applies  under the  Employer's  Plan,  the Plan  disregards a

                                       18
<PAGE>

         Participant's Years of Service earned prior to a Break in Service until
         the  Participant  completes  another  Year of  Service,  and  the  Plan
         suspends  the   Participant's   participation   in  the  Plan.  If  the
         Participant completes a Year of Service following his Break in Service,
         the Plan restores that  Participant's  pre-Break  Years of Service (and
         the Participant resumes active participation in the Plan) retroactively
         to the first  day of the  computation  period in which the  Participant
         earns the first  post-break  Year of Service.  The initial  computation
         period under this Section 2.03(b) is the twelve (12) consecutive  month
         period measured from the date the Participant first receives credit for
         an Hour of Service  following  the Break in Service.  The Plan measures
         any subsequent periods,  if necessary,  in a manner consistent with the
         computation  period selected in Adoption  Agreement  Section 2.02. This
         Section  2.03(b) does not affect a  Participant's  vesting credit under
         Article V and, during a suspension  period,  the Participant's  Account
         continues to share fully in Trust Fund allocations under Section 10.08.
         Furthermore, this Section 2.03(b) will not result in the restoration of
         any Year of  Service  disregarded  under the Break in  Service  rule of
         Section 2.03(a).

         2.04  MATERNITY OR PATERNITY LEAVE.
               ----------------------------

                  (a) Solely for purposes of determining whether an Employee has
         incurred  a Break in  Service  under any  provision  of this  Plan,  an
         individual  who is absent from work for maternity or paternity  reasons
         shall  receive  credit for the Hours of Service  which would  otherwise
         have been credited to such  individual but for such absence,  or in any
         case in which  such  hours  cannot  be  determined,  eight (8) Hours of
         Service per day of such  absence.  The Plan  Administrator  will credit
         only the number (not  exceeding  501) of Hours of Service  necessary to
         prevent an Employee's Break in Service. The Plan Administrator  credits
         all Hours of Service  described in this Section 2.04 to the computation
         period in which the absence  period begins or, if the Employee does not
         need  these  Hours of  Service  to  prevent a Break in  Service  in the
         computation  period  in  which  his  absence  period  begins,  the Plan
         Administrator  credits  these  Hours  of  Service  to  the  immediately
         following  computation  period.  For purposes of this Section  2.04, an
         absence from work for maternity or paternity  reasons means an absence:
         (1) by reason of the  pregnancy of the  individual;  (2) by reason of a
         birth of a child of the individual; (3) by reason of the placement of a

                                       19
<PAGE>

         child with the individual in connection with the adoption of such child
         by such individual;  or (4) for purposes of caring for such child for a
         period beginning immediately following such birth or placement.

                  (b) No credit will be given for a maternity or paternity leave
         of absence unless the Employee  furnishes the Plan  Administrator  with
         whatever  timely  information  it may  require  to  establish  that the
         absence  from work is for one of the reasons  described in this Section
         2.04, as well as whatever timely  information is necessary to establish
         the number of days of the absence.

         2.05  STATUS  DURING  LEAVE  OF  ABSENCE.  If a  Participant  is  on an
               ----------------------------------
authorized leave of absence,  including but not limited to, any leave of absence
pursuant  to the Family and  Medical  Leave Act of 1993,  he shall  continue  to
remain a Participant during such leave of absence. During an authorized leave of
absence,  however,  no Employer  contributions  or Participant  forfeitures,  if
applicable,  shall be  allocated  to the  credit of the  Participant's  Account,
except upon the basis of such  Compensation  as the Participant may receive from
the Employer  during the leave of absence.  A Participant  on a leave of absence
may receive credit for purposes of eligibility,  vesting and allocation purposes
as provided by the Family and Medical  Leave Act of 1993,  as  determined by the
Plan Administrator in its discretion. For purposes of the Plan, if a Participant
does not return to the employ of the Employer on or prior to the  expiration  of
the leave of absence, it shall be conclusively  presumed that his employment was
terminated  as of the  date of the  expiration  of such  leave of  absence.  If,
however,  the death of such  Participant  occurs prior to the expiration of such
leave of absence, the death benefit provided in Section 6.05 shall be payable to
the Participant's designated Beneficiary.

         2.06  PARTICIPATION UPON RE-EMPLOYMENT.  A Participant whose employment
               --------------------------------
with the Employer terminates will re-enter the Plan as a Participant on the date
of his re-employment, subject to the Break in Service rule, if applicable, under
Section 2.03(b). An Employee who satisfies the Plan's eligibility conditions but
who terminates employment with the Employer prior to becoming a Participant will
become a  Participant  on the  later of the  Entry  Date on which he would  have
entered  the  Plan  had  he  not  terminated  employment  or  the  date  of  his
re-employment,  subject  to the Break in  Service  rule,  if  applicable,  under
Section 2.03(b). Any Employee who terminates  employment prior to satisfying the

                                       20
<PAGE>

Plan's eligibility  conditions becomes a Participant in accordance with Adoption
Agreement Section 2.01.

         2.07  CHANGE IN EMPLOYEE STATUS.  If a  Participant  has not incurred a
               -------------------------
Separation  from Service but ceases to be eligible to participate in the Plan by
reason  of  employment  within  an  employment  classification  excluded  by the
Employer under Adoption  Agreement  Section 1.19 (an "Excluded  Employee"),  the
Plan Administrator must treat the Participant as an Excluded Employee during the
period such a Participant is subject to the Adoption  Agreement  exclusion.  The
Plan  Administrator  determines a  Participant's  sharing in the  allocation  of
Employer   contributions  and  Participant   forfeitures,   if  applicable,   by
disregarding his Compensation  paid by the Employer for services rendered in his
capacity as an Excluded Employee.  However, during such period of exclusion, the
Participant,  without regard to employment classification,  continues to receive
credit for vesting under  Article V for each  included Year of Service,  and the
Participant's  Account  continues to share fully in Trust Fund allocations under
Section  10.08.  Subject to the Break in Service  rules of Section  2.03,  if an
Excluded  Employee who is not a Participant  becomes  eligible to participate in
the Plan by reason of a change in employment classification, he will participate
in the Plan  immediately  if he has  satisfied  the  eligibility  conditions  of
Section  2.01 and would  have  been a  Participant  had he not been an  Excluded
Employee during his period of Service.  Furthermore, the Plan takes into account
all of the  Participant's  included  Years of Service  with the  Employer  as an
Excluded Employee for purposes of vesting credit under Article V.

         2.08 INCLUSION OF INELIGIBLE EMPLOYEE. If, in any Plan Year, any person
              --------------------------------
who should not have been  included as a Participant  in the Plan is  erroneously
included  and  discovery of such  incorrect  inclusion is not made until after a
contribution  for the year has been made,  the Employer shall not be entitled to
recover the contribution  made with respect to the ineligible  person regardless
of whether or not a deduction is allowable with respect to such contribution. In
such event, the amount  contributed with respect to the ineligible  person shall
constitute  a  Forfeiture  (except  for  Deferred  Compensation  which  shall be
distributed to the  ineligible  person) for the Plan Year in which the discovery
is made.

         2.09  ELECTION NOT TO  PARTICIPATE.  The  Employer  must specify in its
               ----------------------------
Adoption Agreement Section 2.09 whether an Employee eligible to participate,  or
any  present  Participant,  may elect  not to  participate  in the Plan.  For an
election to be effective for a particular Plan Year, the Employee or Participant

                                       21
<PAGE>

must file the election in writing with the Plan Administrator not later than the
Effective Date of the Plan, or the Adjustment Date of the Plan Year  immediately
preceding the Plan Year for which such  election is to be effective,  or at such
other  time or  times as may be  determined  by the  Plan  Administrator  in its
discretion.  Any such election not to  participate  shall remain in effect for a
period not less than one (1) Plan Year. The Employer may not make a contribution
under the Plan for the  Employee  or for the  Participant  for the Plan Year for
which the election is effective,  nor for any succeeding  Plan Year,  unless the
Employee  or  Participant  re-elects  to  participate  in  the  Plan.  After  an
Employee's or  Participant's  election not to participate has been effective for
at least the minimum period  prescribed  above,  the Employee or Participant may
re-elect to participate  in the Plan by filing such  re-election in writing with
the Plan  Administrator  not  later  than the  Adjustment  Date of the Plan Year
immediately  preceding the Plan Year for which such election is to be effective,
or at such other time or times as may be determined by the Plan Administrator in
its discretion.  If the Employee or Participant does not re-elect to participate
in the  prescribed  time  period,  it will  be  deemed  that  such  Employee  or
Participant  desires not to  participate.  Not more than one (1)  re-election to
participate shall be permitted to be made by any Employee or Participant.

         If an Employee is a Self-Employed  Individual,  the Employee's election
(except as permitted  by Treasury  regulations  without  creating a Code section
401(k)  arrangement  with  respect  to that  Self-Employed  Individual)  must be
effective no later than the date the Employee  first would become a  Participant
in the Plan and the election must be irrevocable.

         The Plan  Administrator  must furnish an Employee or a Participant  any
form required for purposes of an election under this Section 2.09. A Participant
who elects not to  participate  may not  receive a  distribution  of his Account
Balance attributable either to Employer or to Participant contributions,  except
as provided under Article VI or under Article VII.  However,  for each Plan Year
for  which  a  Participant's  election  not to  participate  is  effective,  the
Participant's  Account,  if any,  continues  to share in Trust Fund  allocations
under Article X. Furthermore,  the Employee or the Participant  receives vesting
credit under Article V for each  included Year of Service  during the period the
election not to participate is effective.

         2.10  SERVICE FOR PREDECESSOR EMPLOYER.  If the Employer  maintains the
               --------------------------------
plan of a predecessor employer, the Plan treats service of the Employee with the
predecessor  employer as service with the  Employer.  If the  Employer  does not

                                       22

<PAGE>

maintain the plan of a predecessor  employer,  the Plan does not credit  service
with the predecessor employer, unless the Employer identifies the predecessor in
its Adoption  Agreement  Section 2.10 and  specifies  the purposes for which the
Plan will credit service with that predecessor employer.

         2.11  SPECIAL  RULES  FOR  OWNER-EMPLOYEES.   The   following   special
               ------------------------------------
provisions and restrictions apply to Owner-Employees:

                  (a) If the Plan  provides  contributions  or  benefits  for an
         Owner-Employee or for a group of Owner-Employees who controls the trade
         or business  with  respect to which this Plan is  established,  and the
         Owner-Employee   or  group  of   Owner-Employees   also   control,   as
         Owner-Employees,  one or more other  trades or  businesses,  plans must
         exist or be established  with respect to all the  controlled  trades or
         businesses  so that when the plans are combined they form a single plan
         which  satisfies the  requirements  of Code  sectionsection  401(a) and
         401(d)  with  respect  to the  employees  of the  controlled  trades or
         businesses.

                  (b)  The  Plan   excludes  an   Owner-Employee   or  group  of
         Owner-Employees  if the  Owner-Employee  or  group  of  Owner-Employees
         controls any other trade or business, unless the employees of the other
         controlled trade or business  participate in a plan which satisfies the
         requirements  of Code  sectionsection  401(a)  and  401(d).  The  other
         qualified  plan must provide  contributions  and benefits which are not
         less favorable  than the  contributions  and benefits  provided for the
         Owner-Employee  or group of  Owner-Employees  under this Plan, or if an
         Owner-Employee   is  covered  under  another   qualified   plan  as  an
         Owner-Employee,  then the plan established with respect to the trade or
         business he does  control  must  provide  contributions  or benefits as
         favorable as those  provided under the most favorable plan of the trade
         or business he does not control.

                  (c) For purposes of subparagraphs  (a) and (b) of this Section
         2.11, an Owner-Employee or group of Owner-Employees controls a trade or
         business if the Owner-Employee or Owner-Employees  together (1) own the
         entire interest in an unincorporated  trade or business;  or (2) in the
         case of a partnership,  own more than fifty percent (50%) of either the
         capital  interest  or the  profits  interest  in the  partnership.  For
         purposes  of the  preceding  sentence,  an  Owner-Employee  or group of
         Owner-Employees   shall  be  treated  as  owning  any   interest  in  a
         partnership,  which is owned, directly or indirectly,  by a partnership

                                       23

<PAGE>

         which such Owner-Employee or group of  Owner-Employees,  are considered
         to control within the meaning of the preceding sentence.

                                       24

<PAGE>

                                   ARTICLE III
                            PARTICIPANT CONTRIBUTIONS

         3.01 PARTICIPANT NONDEDUCTIBLE CONTRIBUTIONS. The Employer must specify
              ---------------------------------------
in Adoption Agreement Section 3.01 whether Participant  voluntary  nondeductible
contributions  shall be permitted under the Plan.  Such voluntary  nondeductible
Employee Contributions shall be made to the Plan on an after-tax basis and shall
be separately accounted for at all times. Any voluntary  nondeductible  Employee
Contributions  made  after  December  31,  1986  are  required  to  satisfy  the
requirements  of Code section  401(m),  in  accordance  with Section 4.17 of the
Plan. Participant nondeductible  contributions under the Plan may be paid by the
Participant  to the Trustee,  or may be deducted on an after-tax  basis from the
Participant's  paycheck.  Upon the Participant's Normal Retirement Date, or such
other date when the Participant  shall be entitled to receive benefits under the
Plan,   the  fair  market  value  of  the   voluntary   nondeductible   Employee
Contributions shall be used to provide additional benefits to the Participant or
his beneficiary.

         3.02  PARTICIPANT  MANDATORY  CONTRIBUTIONS.  The Employer may elect in
               -------------------------------------
Adoption  Agreement Section 3.02 to require a Participant to make  nondeductible
contributions  in order to be eligible to receive a Matching  Contribution.  Any
required   Participant   nondeductible   contributions   eligible  for  Matching
Contributions are Mandatory  Contributions.  Mandatory  Contributions  under the
Plan shall be deducted on an after-tax  basis from the  Participant's  paycheck.
The Plan Administrator will maintain a separate accounting,  pursuant to Section
10.06 of the Plan, to reflect the Participant's Account Balance derived from his
Mandatory Contributions.

         3.03  QUALIFIED   VOLUNTARY  EMPLOYEE   CONTRIBUTIONS.   Any  voluntary
               -----------------------------------------------

Participant  contribution  made in cash after December 31, 1981  attributable to
taxable  years ending before  January 1, 1987,  shall be treated as a "Qualified
Voluntary Employee Contribution" within the meaning of Code section 219(e)(2) as
it existed prior to the  enactment of the Tax Reform Act of 1986, as amended.  A
qualified  Plan  may  not  accept  Qualified  Voluntary  Employee  Contributions
("QVECs")  which are made for a Taxable Year beginning  after December 31, 1987.
If the  Employer's  Plan includes  QVECs made prior to January 1, 1988, the Plan
Administrator must maintain a separate accounting for the Participant's  Account
Balance  attributable  to QVECs,  including  QVECs  which are part of a rollover
contribution  described in Section 3.04. The Plan  Administrator  will treat the

                                       25
<PAGE>

accumulated QVECs as part of the Participant's  Account Balance for all purposes
of the Plan,  except for  purposes  of  determining  the  Top-Heavy  Ratio under
Section  18.02.  The  Plan  Administrator  may not use  QVECs to  purchase  life
insurance on the Participant's behalf.

         3.04  ROLLOVER CONTRIBUTIONS.
               ----------------------

                  (a) The Employer must elect in its Adoption  Agreement Section
         3.04 if rollovers  will be  permitted to be made to the Plan.  Provided
         rollovers are permitted, any Employee, if elected by the Employer under
         its Adoption Agreement,  and/or any Participant who receives a lump sum
         distribution  as defined by Code section  402(e)(4)(A),  or a qualified
         total  distribution  as defined by Code  section  402(a)(5)(E)(i),  the
         maximum  amount of which  constitutes  the balance to the credit of the
         Employee  in the  qualified  plan  reduced  by  nondeductible  Employee
         Contributions (other than accumulated deductible Employee Contributions
         within  the  meaning  of Code  section  72(o)(5)),  may roll  over such
         distribution  into this Plan, in whole or in part, either directly from
         such other qualified plan, or by the Employee individually,  or through
         the medium of a conduit  individual  retirement  account or  individual
         retirement annuity,  provided such distribution  qualifies for tax-free
         rollover  treatment  within the meaning of Code section 402 or 403, and
         subject to the following requirements and limitations:

                           (1)  Any  rollover  of a  distribution  from a  prior
                  qualified  plan into this Plan must  occur  within  sixty (60)
                  days after the  Employee  receives the  distribution  from the
                  qualified plan.

                           (2) If a conduit  individual  retirement  account  or
                  individual  retirement  annuity  is  used,  no  amount  in the
                  individual retirement account or individual retirement annuity
                  may be  attributable  to a source other than a qualified total
                  distribution or a lump sum distribution from a qualified plan.

                  (b) The Trustee will invest rollover  contributions as part of
         the Trust Fund, however, a Participant's  rollover contribution Account
         shall  remain  separately  accounted  for at all  times.  If this  Plan
         permits directed  investments,  as provided in the Employer's  Adoption
         Agreement Section 9.09, the Participant,  from time to time, may direct
         the Trustee in writing,  in the form and manner  prescribed by the Plan
         Administrator,  in its discretion, as to the investment of his rollover

                                       26
<PAGE>

         Account in property, or property interest, of any kind, real, personal,
         or mixed;  provided however, the Participant may not direct the Trustee
         to  make  loans  to  his  Employer.  The  Trustee  is  not  liable  nor
         responsible  for any  loss  resulting  to any  Beneficiary,  nor to any
         Participant,  by reason of any sale or investment  made or other action
         taken  pursuant  to  and  in  accordance  with  the  direction  of  the
         Participant.  In all other respects,  the Trustee will hold, administer
         and  distribute  a  rollover  contribution  in the same  manner  as any
         Employer contribution made to the Trust. A rollover contribution is not
         an Annual Addition under Article IV.

                  (c)  The  Employer  must  provide  in its  Adoption  Agreement
         Section  3.04 whether an eligible  Employee,  prior to  satisfying  the
         Plan's eligibility conditions,  may make a rollover contribution to the
         Trust to the same extent and in the same manner as a Participant. If an
         Employee makes a rollover contribution to the Trust prior to satisfying
         the Plan's eligibility  conditions,  the Plan Administrator and Trustee
         must treat the Employee as a  Participant  for all purposes of the Plan
         except the  Employee is not a  Participant  for  purposes of sharing in
         Employer contributions or Participant  forfeitures under the Plan until
         he actually  becomes a  Participant  in the Plan. If the Employee has a
         Separation  from Service prior to becoming a  Participant,  the Trustee
         will distribute his rollover  contribution Account to him as if it were
         an Employer contribution Account.

         3.05  TRUSTEE-TO-TRUSTEE TRANSFERS TO THE PLAN.
               ----------------------------------------

                  (a) The  Employer  shall  specify  in its  Adoption  Agreement
         Section 3.05 if  trustee-to-trustee  transfers  will be permitted to be
         made to the Plan.  If this Plan is not subject to the survivor  annuity
         rules  described in Section 6.06,  the Employer may further  specify if
         trustee-to-trustee  transfers  will be  permitted  from a Plan which is
         subject to the survivor annuity rules.

                  (b) Provided transfers are permitted,  if a Participant of the
         Plan is or was previously a participant of another plan qualified under
         Code section 401(a),  including another qualified plan of the Employer,
         the Trustee  shall be authorized to accept the balance to the credit of
         the  Participant  if transferred by the trustee of such other plan upon
         the following conditions:

                                       27
<PAGE>

                           (1) the  trustee of the other plan is  authorized  to
                  distribute the balance to the credit of the Participant in the
                  other plan;

                           (2) for record-keeping and accounting  purposes,  the
                  transferred  account of the  Participant  shall be  separately
                  accounted for; and

                           (3) the  balance  to the  credit  of the  Participant
                  transferred  to this  Plan  shall  not in any way  reduce  any
                  obligations of the Employer under this Plan.

                  (c) The Plan  Administrator may direct the Trustee to transfer
         as a direct trustee-to-trustee  transfer the balance to the credit of a
         Participant to the trustee of another qualified plan, if the trustee of
         the other plan is authorized to accept such a transfer.

                  (d) If this  Plan is not  otherwise  subject  to the  survivor
         annuity  requirements  of  Article  VI, any  assets  attributable  to a
         trustee-to-trustee  transfer  from  a  plan  which  is  subject  to the
         survivor annuity  requirements shall be separately accounted for at all
         times.  All of the provisions of the Plan,  including the  distribution
         provisions of Article VI, relating to the survivor annuity requirements
         of the Code shall, at all times, be applied to the segregated assets.

                  (e)  If  this  Plan  is  subject  to  the   survivor   annuity
         requirements   of   Article   VI,   any   assets   attributable   to  a
         trustee-to-trustee  transfer  from a plan  which is not  subject to the
         survivor annuity  requirements shall be separately accounted for at all
         times. At no time shall the survivor annuity  requirements of the Code,
         or the  provisions  of this  Plan  relating  to such  survivor  annuity
         requirements, be applied to the segregated assets.

         3.06  NONFORFEITABILITY OF PARTICIPANT  CONTRIBUTIONS.  A Participant's
               -----------------------------------------------
Account Balance is, at all times, one hundred percent (100%)  Nonforfeitable  to
the extent the value of his  Account  Balance  is derived  from his  Participant
contributions described in this Article III.

         3.07  PARTICIPANT  CONTRIBUTIONS  - ACCOUNT  BALANCE.  The Trustee must
               ----------------------------------------------
maintain a separate  Account(s) in the name of each  Participant  to reflect the
Participant's  Account  Balance  under  the Plan  derived  from his  Participant
contributions.  A  Participant's  Account  Balance  derived from his Participant

                                       28
<PAGE>

contributions  as of  any  applicable  date  is  the  balance  of  his  separate
Participant contribution Account(s).

                                       29
<PAGE>

                               ARTICLE IV EMPLOYER
                         CONTRIBUTIONS AND FORFEITURES

Part 1 - Amount of Employer Contributions and Plan Allocations
--------------------------------------------------------------

         4.01 EMPLOYER CONTRIBUTIONS. For each Plan Year, the Employer, from its
              ----------------------
records,  determines  the  amount of any  contributions  to be made by it to the
Trust in accordance with the  contribution  options  selected by the Employer in
its Adoption  Agreement  Sections 4.02 through 4.05. The Employer may not make a
contribution to the Trust for any Plan Year to the extent the contribution would
exceed  the  Participant's  Maximum  Permissible  Amount,  as defined in Section
4.31(i).

         To make  allocations  under  the  Plan,  the  Plan  Administrator  must
establish a Deferral  Contributions  Account, a Qualified Matching Contributions
Account,  a regular  Matching  Contributions  Account,  a Qualified  Nonelective
Contributions  Account, a Discretionary  Nonelective  Contributions  Account for
each Participant,  and any other accounts which the Plan  Administrator may deem
necessary from time to time.

         4.02  CODE SECTION  401(k)  ARRANGEMENT.  The  Employer  will  elect in
               ---------------------------------
Section 4.02 of its  Adoption  Agreement  the terms of the Code  section  401(k)
arrangement,  if any, under the Plan. The Code section 401(k) arrangement may be
a salary  reduction  arrangement  or a cash or  deferred  arrangement.  The Plan
Administrator will allocate to each Participant's Deferral Contributions Account
the amount of Deferral  Contributions  the Employer makes to the Trust on behalf
of the Participant.

                  (a)  Salary Reduction  Arrangement.  If the Employer  elects a
                       -----------------------------
         salary reduction  arrangement,  any Employee eligible to participate in
         the  Plan  may  file  a  salary  reduction   agreement  with  the  Plan
         Administrator.  The salary  reduction  agreement  may not be  effective
         earlier than the following  date which occurs last:  (i) the Employee's
         Plan  Entry  Date  (or,  in the  case  of a  reemployed  Employee,  his
         reparticipation  date under Article II); (ii) the execution date of the
         Employee's  salary  reduction  agreement;  (iii) the date the  Employer
         adopts the Code section  401(k)  arrangement  by executing the Adoption
         Agreement;  or (iv)  the  effective  date of the  Code  section  401(k)
         arrangement,  as specified in the Employer's Adoption Agreement Section
         1.17. Regarding clause (i), an Employee subject to the Break in Service
         rule of  Section  2.03(b)  of the  Plan  may not  enter  into a  salary
         reduction  agreement  until the  Employee  has  completed a  sufficient

                                       30

<PAGE>

         number of Hours of Service to receive  credit for a Year of Service (as
         defined in Section 2.02) following his reemployment  commencement date.
         A salary  reduction  agreement must specify the amount of  Compensation
         (as defined in Section 1.11) or percentage of Compensation the Employee
         wishes to defer.  The  salary  reduction  agreement  will apply only to
         Compensation  which becomes  currently  available to the Employee after
         the effective date of the salary reduction agreement. The Employer will
         apply a reduction  election to all  Compensation  (and to  increases in
         such  Compensation),  including  cash bonuses  received  within two and
         one-half months  following the end of the Plan Year, if so specified in
         the Employer's  Adoption Agreement Section 4.02. The Plan Administrator
         may  adopt  uniform  and   nondiscriminatory   rules  and  restrictions
         applicable to the Employees' salary reduction agreements.

                  (b) If so  specified  in  the  Employer's  Adoption  Agreement
         Section 4.02, any cash bonus  attributable to services performed by the
         Participant  for the  Employer  during a given  Plan Year and which are
         received  by the  Participant  on or  before  two and  one-half  months
         following  the end of the Plan  Year  shall be  subject  to the  salary
         reduction agreement of such Employee in effect for the Plan Year during
         which the services are performed.  Provided,  however, the Employee may
         specify in his salary  reduction  agreement  to limit the  election  to
         Compensation  actually  received  during  the  Plan  Year.  A  deferral
         election  may not be  made  with  respect  to cash  bonuses  which  are
         currently available on or before the date the Participant executed such
         election.  Notwithstanding the foregoing,  cash bonuses attributable to
         services  performed by the Participant during a Plan Year but which are
         to be paid to the Participant  later than two and one-half months after
         the  close of such Plan Year will be  subjected  to  whatever  deferral
         election is in effect at the time such cash bonus would have  otherwise
         been received.

                   (c)  Cash or Deferred Arrangement.  If the Employer  elects a
                        ----------------------------
         cash or deferred  arrangement,  a Participant  may elect to make a cash
         election  against his  proportionate  share of the  Employer's  Cash or
         Deferred  Contribution,  in accordance with the Employer's  election in
         Adoption Agreement Section 4.02. A Participant's proportionate share of
         the Employer's  Cash or Deferred  Contribution is the percentage of the
         total Cash or Deferred Contribution which bears the same ratio that the
         Participant's  Compensation  for  the  Plan  Year  bears  to the  total

                                       31
<PAGE>

         Compensation  of all  Participants  for the Plan Year.  For purposes of
         determining  each  Participant's  proportionate  share  of the  Cash or
         Deferred Contribution, a Participant's Compensation is his Compensation
         as  determined  under  Section 1.11 of the Plan (as modified by Section
         4.06 for allocation  purposes),  excluding any effect the proportionate
         share may have on the Participant's Compensation for the Plan Year. The
         Plan Administrator will determine the proportionate  share prior to the
         Employer's   actual   contribution   to  the  Trust,   to  provide  the
         Participants  the opportunity to file cash  elections.  That portion of
         the  Participant's  allocable  share not  subject to a Cash or Deferred
         election shall be the Employer's Nonelective  Contribution and shall be
         allocated to the  Participant's  account  pursuant to Section 4.04. The
         Employer  will pay  directly  to the  Participant  the  portion  of his
         proportionate share the Participant has elected to receive in cash.

                   (d)  Election  Not  to  Participate.   A   Participant's   or
                        ------------------------------
         Employee's  election  not to  participate,  pursuant  to Section  2.09,
         includes  his right to enter into a salary  reduction  agreement  or to
         share in the allocation of a Cash or Deferred Contribution,  unless the
         Participant  or  Employee  limits  the  effect of the  election  to the
         non-401(k) portions of the Plan.

         4.03  MATCHING CONTRIBUTIONS.
               ----------------------

                  (a) The Employer may elect in Adoption  Agreement Section 4.03
         to provide  Matching  Contributions.  The Employer  must specify in its
         Adoption   Agreement  whether  the  Plan  Administrator  will  allocate
         Matching  Contributions to the Qualified Matching Contributions Account
         or to the regular Matching  Contributions  Account of each Participant.
         The Plan  Administrator will make this allocation as of the last day of
         each Plan Year unless, in Adoption Agreement Section 4.03, the Employer
         elects more frequent allocation dates for Matching  Contributions.  The
         Employer  must specify in its Adoption  Agreement  Section 4.03 whether
         Matching  Contributions  are fully vested or if they are subject to the
         Plan's  vesting   schedule;   provided,   however,   if  such  Matching
         Contributions are Qualified Matching Contributions,  such contributions
         shall be fully vested and nonforfeitable at all times.

                  (b) To the extent the Employer  makes  Matching  Contributions
         under a fixed Matching  Contribution  formula,  the Plan  Administrator
         will  allocate  the  Matching   Contribution  to  the  Account  of  the

                                       32
<PAGE>

         Participant  on whose behalf the Employer  makes that  contribution.  A
         fixed  Matching  Contribution  formula  is a  formula  under  which the
         Employer contributes a certain percentage or dollar amount on behalf of
         a Participant  based on that  Participant's  Deferral  Contributions or
         Mandatory  Contributions  eligible for a match, as specified in Section
         4.03 of the Employer's Adoption Agreement.  The Employer may contribute
         on a  Participant's  behalf  under  a  specific  Matching  Contribution
         formula only if the Participant  satisfies the accrual requirements for
         Matching  Contributions  specified  in Section  4.03 of the  Employer's
         Adoption  Agreement  and only to the extent the  Matching  Contribution
         does not exceed the Participant's annual additions limitation in Part 2
         of Article IV.

                  (c) To the extent the Employer  makes  Matching  Contributions
         under a discretionary formula, the Plan Administrator will allocate the
         discretionary Matching Contributions to the Account of each Participant
         who  satisfies  the accrual  requirements  for  Matching  Contributions
         specified in Section 4.06 of the  Employer's  Adoption  Agreement.  The
         allocation of discretionary  Matching  Contributions to a Participant's
         Account  shall  be in  the  same  proportion  that  each  Participant's
         Eligible  Contributions bear to the total Eligible Contributions of all
         Participants.  If the  discretionary  formula is a tiered formula,  the
         Plan Administrator will make this allocation separately with respect to
         each tier of  Eligible  Contributions,  allocating  in such  manner the
         amount of the  Matching  Contributions  made with respect to that tier.
         "Eligible  Contributions" are the Participant's  Deferral Contributions
         or  Mandatory  Contributions  eligible  for an  allocation  of Matching
         Contributions,  as specified in Section 4.03 of the Employer's Adoption
         Agreement.

                  (d) If the  Matching  Contributions  formula  applies  both to
         Deferral Contributions and to Participant Mandatory Contributions,  the
         Matching   Contributions   apply  first  to   Deferral   Contributions.
         Furthermore,  the  Matching  Contribution  formula  does  not  apply to
         Deferral  Contributions  that are excess  deferrals under Section 4.10.
         For this  purpose:  (a)  excess  deferrals  relate  first  to  Deferral
         Contributions  for the Plan Year not otherwise  eligible for a Matching
         Contribution;  and (2) if the Plan  Year is not a  calendar  year,  the
         excess  deferrals for a Plan Year are the last Elective  Deferrals made
         for a calendar year.

                                       33
<PAGE>

         4.04  DISCRETIONARY NONELECTIVE CONTRIBUTION.
               --------------------------------------

                  (a)  The  Employer  must  specify  in its  Adoption  Agreement
         Section 4.04 whether Discretionary  Nonelective  Contributions shall be
         made to the  Plan.  To the  extent  the  Employer  makes  Discretionary
         Nonelective  Contributions,  the Plan  Administrator  will allocate the
         Discretionary   Nonelective   Contributions  to  the  Account  of  each
         Participant who satisfies the accrual  requirements  for  Discretionary
         Nonelective  Contributions  specified in Section 4.04 of the Employer's
         Adoption   Agreement.   The  Plan   Administrator  will  determine  the
         allocation of Discretionary  Nonelective  Contributions on the basis of
         the Plan  Year in  accordance  with  the  Employer's  elections  in its
         Adoption   Agreement.   The  Plan   Administrator   will   determine  a
         Participant's Compensation in accordance with the general definition of
         Compensation  under  Section  1.11  of the  Plan,  as  modified  by the
         Employer in Sections 1.11 and 4.06 of its Adoption Agreement.

                  (b) To the extent the Employer makes Nonelective Contributions
         for the  Plan  Year  which,  at the time of  contribution,  it does not
         designate   as   Qualified   Nonelective   Contributions,    the   Plan
         Administrator will allocate those  contributions in accordance with the
         elections under Section 4.04 of the Employer's Adoption Agreement.  For
         purposes of the special  nondiscrimination  tests described in Sections
         4.12  and  4.17,   the  Plan   Administrator   may  treat   Nonelective
         Contributions  allocated under this paragraph as Qualified  Nonelective
         Contributions, if the contributions otherwise satisfy the definition of
         Qualified Nonelective Contributions.

         4.05 QUALIFIED NONELECTIVE CONTRIBUTIONS.  If the Employer, at the time
              -----------------------------------
of  contribution,  designates  a  contribution  to  be a  Qualified  Nonelective
Contribution  for the Plan  Year,  the Plan  Administrator  will  allocate  that
Qualified Nonelective  Contribution to the Qualified  Nonelective  Contributions
Account  of each  Participant  eligible  for an  allocation  of that  designated
contribution, as specified in Section 4.05 of the Employer's Adoption Agreement.
The Plan Administrator  will make the allocation to each eligible  Participant's
Account in the same ratio that the Participant's  Compensation for the Plan Year
bears to the total Compensation of all eligible  Participants for the Plan Year.
The Plan Administrator will determine a Participant's Compensation in accordance

                                       34
<PAGE>

with the general  definition of Compensation  under Section 1.11 of the Plan, as
modified by the Employer in Sections 1.11 and 4.06 of its Adoption Agreement.

         4.06 ACCRUAL OF BENEFIT.  The Plan  Administrator  will  determine  the
              ------------------
accrual of benefits (Employer contributions and Participant  forfeitures) on the
basis of the  Plan  Year in  accordance  with the  Employer's  elections  in its
Adoption Agreement.

                  (a)  The  Employer  must  specify  in its  Adoption  Agreement
         Section 4.06 the  Compensation  the Plan  Administrator is to take into
         account in  allocating  an  Employer  Contribution  to a  Participant's
         Account  for the Plan  Year in  which  the  Employee  first  becomes  a
         Participant. For all other Plan Years, the Plan Administrator will take
         into account only the  Compensation  determined  for the portion of the
         Plan  Year  in  which  the   Employee   actually   is  a   Participant.
         Notwithstanding anything herein to the contrary, the Plan Administrator
         must take into account the Employee's  entire  Compensation  for a Plan
         Year to determine  whether the Plan  satisfies  the  top-heavy  minimum
         allocation  requirement of Section 18.04. The Employer,  in an addendum
         to its  Adoption  Agreement,  numbered  Section  4.06(a),  may elect to
         measure  Compensation for the Plan Year for allocation  purposes on the
         basis of a specified period other than the Plan Year.

                  (b) Subject to the applicable minimum allocation  requirements
         of  Section  18.04,   and  further  subject  to  the  minimum  coverage
         requirements  of Code  section  410,  the Plan  Administrator  will not
         allocate any portion of an Employer Contribution for a Plan Year to any
         Participant's   Account  if  the  Participant  does  not  complete  the
         applicable  minimum  Hours  of  Service  requirement  specified  in the
         corresponding sections of the Employer's Adoption Agreement.

                  (c) If the Employer's  Adoption Agreement includes options for
         other requirements affecting the Participant's receipt of an allocation
         of an Employer Contribution under the Plan, the Plan Administrator will
         apply this  Section 4.06 in  accordance  with the  Employer's  Adoption
         Agreement selections.

                  (d) The  Employer  may  elect  in its  Adoption  Agreement  to
         suspend the contribution  requirements elected under Adoption Agreement
         Sections  4.03,  4.04 and 4.05 if,  for any Plan Year  beginning  after
         December 31,  1989,  the Plan fails to satisfy the  participation  test
         under Code section 401(a)(26),  or the coverage test under Code section

                                       35
<PAGE>

         410(b).  If  this  Section  4.06  applies  for a Plan  Year,  the  Plan
         Administrator  will  suspend  the  contribution  requirements  for  the
         Includible  Employees who are  Participants,  beginning  first with the
         Includible  Employee(s)  employed  with the Employer on the last day of
         the Plan  Year,  then the  Includible  Employee(s)  who have the latest
         Separation  from Service,  as defined in Section 1.46,  during the Plan
         Year,  and continuing to suspend in descending  order the  contribution
         requirements  for each  Includible  Employee  who  incurred  an earlier
         Separation from Service,  from the latest to the earliest Separation of
         Service date, until the Plan satisfies both the  participation  and the
         coverage tests for the Plan Year. For purposes of this Section 4.06(d),
         "Includible" Employees are all Employees other than (1) those Employees
         excluded  from  participating  in the Plan for the entire  Plan Year by
         reason of the collective  bargaining  unit exclusion or the nonresident
         alien exclusion under Adoption  Agreement  Section 1.19 or by reason of
         the  participation  requirements of Sections 2.01 and 2.03; and (2) any
         Employee who incurs a Separation  from Service during the Plan Year and
         fails to complete  at least 501 Hours of Service for the Plan Year.  If
         two or more Includible  Employees have a Separation from Service on the
         same  day,  the  Plan   Administrator  will  suspend  the  contribution
         requirements for all such Includible Employees, irrespective of whether
         the  Plan can  satisfy  the  participation  and the  coverage  tests by
         accruing benefits for fewer than all such Includible Employees.  If the
         Plan suspends the contribution requirements for an Includible Employee,
         that  Employee will share in the  allocation of Employer  Contributions
         and  Participant  forfeitures,  if  applicable,  without  regard to the
         number of Hours of Service he has earned for the Plan Year and  without
         regard to whether he is employed by the Employer on the last day of the
         Plan  Year.  The  Employer  may modify the  operation  of this  Section
         4.06(d) by electing  appropriate  modifications  in Section 4.06 of its
         Adoption Agreement.

         4.07  RETURN OF EMPLOYER CONTRIBUTIONS.
               --------------------------------

                  (a) The  Employer  contributes  to this Plan on the  condition
         that  its  contribution  is not due to a  mistake  of fact and that the
         Internal   Revenue   Service  will   provide  a  favorable   letter  of
         determination  on the  initial  qualification  of the Plan and will not
         disallow the deduction for its contribution.  The Trustee, upon written
         request  from the  Employer,  must return to the Employer the amount of
         the Employer's  contribution made by the Employer by mistake of fact or

                                       36
<PAGE>

         the amount of the  Employer's  contribution  disallowed  as a deduction
         under Code  section  404,  as well as all  amounts  contributed  by the
         Employer  if the Plan is denied its initial  contribution.  The Trustee
         will not return any portion of the  Employer's  contribution  under the
         provisions of this Section 4.07 more than one (1) year after:

                           (1)  The Employer made the contribution by mistake of
                  fact; or

                           (2)  The  disallowance   of  the  contribution  as  a
                  deduction, and then, only to the extent of the disallowance.

                  (b) The Trustee  will not  increase the amount of the Employer
         contribution  returnable  under  this  Section  4.07  for any  earnings
         attributable  to the  contribution,  but the Trustee will  decrease the
         Employer contribution returnable for any losses attributable to it. The
         Trustee may  require the  Employer  to furnish  whatever  evidence  the
         Trustee deems necessary to enable the Trustee to confirm the amount the
         Employer has requested be returned is properly returnable under ERISA.

         4.08  TIME OF PAYMENT OF CONTRIBUTION.  The  Employer  must make Salary
               -------------------------------
Reduction  Contributions  to the  Trust  within an  administratively  reasonable
period  of time  after  withholding  the  corresponding  Compensation  from  the
Participant. Furthermore, the Employer must make Salary Reduction Contributions,
Cash or  Deferred  Contributions,  Employer  Matching  Contributions  (including
Qualified  Matching  Contributions),  Qualified  Nonelective  Contributions  and
Discretionary Nonelective Contributions no later than the time prescribed by the
Code or by applicable Treasury regulations.  Salary Reduction  Contributions and
Cash or Deferred Contributions are Employer contributions for all purposes under
this Plan,  except to the extent the Code or Treasury  regulations  prohibit the
use of these  contributions  to satisfy the  qualification  requirements  of the
Code.  Subject  to the  consent  of the  Trustee,  the  Employer  may  make  its
contribution in property rather than in cash,  provided that the contribution of
property is not a prohibited transaction under the Code or under ERISA.

         4.09  FORFEITURE  ALLOCATION.  The  amount of a  Participant's  Account
               ----------------------
Balance  forfeited  under  the  Plan  is  a  Participant  forfeiture.  The  Plan
Administrator will allocate  Participant  forfeitures in the manner(s) specified

                                       37
<PAGE>

by the Employer in its  Adoption  Agreement  Section  4.09.  The Employer  shall
separately  provide for the manner in which  forfeited  Matching  Contributions,
including forfeited excess aggregate contributions pursuant to Section 4.21, and
forfeited   Discretionary    Nonelective   Contributions   shall   be   applied.
Notwithstanding  anything herein to the contrary, if all Employer  Contributions
under the Plan are fully vested and  nonforfeitable at all times pursuant to the
Employer's Adoption Agreement elections, then any amounts which may otherwise be
forfeited  under the Plan  pursuant  to Section  2.08 or 10.15  shall be used to
reduce the Discretionary  Nonelective  Contribution or Matching  Contribution of
the Employer,  in its discretion.  The Plan  Administrator will continue to hold
the  undistributed,  non-vested  portion of a terminated  Participant's  Account
Balance in his Account  solely for his benefit until a forfeiture  occurs at the
time  specified in Section 5.11, or if  applicable,  until the time specified in
Section 10.15.

Part 2 - Limitations on Allocations
-----------------------------------

         4.10  ANNUAL ELECTIVE DEFERRAL LIMITATION.
               -----------------------------------

                  (a) An  Employee's  Elective  Deferrals  for a  calendar  year
         beginning  after  December  31,  1986,  may not exceed the Code section
         402(g) limitation. The Code section 402(g) limitation is the greater of
         $7,000  or the  adjusted  amount  determined  by the  Secretary  of the
         Treasury. If, pursuant to a salary reduction agreement or pursuant to a
         cash or deferred  election,  the  Employer  determines  the  Employee's
         Elective  Deferrals  to the Plan for a calendar  year would  exceed the
         Code  section  402(g)   limitation,   the  Employer  will  suspend  the
         Employee's  salary  reduction  agreement,  if any,  until the following
         January 1 and pay in cash the  portion of a cash or  deferred  election
         which  would  result  in the  Employee's  Elective  Deferrals  for  the
         calendar year exceeding the Code section 402(g) limitation. If the Plan
         Administrator  determines that an Employee's Elective Deferrals already
         contributed  to the Plan for a calendar  year  exceed the Code  section
         402(g) limitation, the Plan Administrator will distribute the amount in
         excess of the Code section 402(g)  limitation (the "excess  deferral"),
         as  adjusted  for  allocable  income,  no  later  than  April 15 of the
         following  calendar  year. If the Plan  Administrator  distributes  the
         excess  deferral  by  the  appropriate   April  15,  it  may  make  the
         distribution  irrespective  of any other  provision  under this Plan or
         under the Code. The Plan Administrator will reduce the amount of excess
         deferrals  for a calendar  year  distributable  to the  Employee by the

                                       38
<PAGE>

         amount of excess contributions (as determined in Section 4.14), if any,
         previously  distributed  to the Employee for the Plan Year beginning in
         that calendar year.

                  (b) If an Employee participates in another plan under which he
         makes Elective Deferrals pursuant to a Code section 401(k) arrangement,
         Elective  Deferrals  under a  Simplified  Employee  Pension,  or Salary
         Reduction  Contributions  to a tax-sheltered  annuity,  irrespective of
         whether the Employer  maintains the other plan, he may provide the Plan
         Administrator a written claim for excess  deferrals made for a calendar
         year.  The  Employee  must  submit  the claim no later than the March 1
         following the close of the particular  calendar year and the claim must
         specify the amount of the Employee's Elective Deferrals under this Plan
         which are excess deferrals. If the Plan Administrator receives a timely
         claim,  it  will  distribute  the  excess  deferral  (as  adjusted  for
         allocable income) the Employee has assigned to this Plan, in accordance
         with the distribution  procedure described in the immediately preceding
         paragraph.

         4.11 ALLOCABLE INCOME ATTRIBUTABLE TO EXCESS DEFERRALS. For purposes of
              -------------------------------------------------
making a  distribution  of  excess  deferrals  pursuant  to this  Section  4.11,
allocable  income means net income or net loss allocable to the excess deferrals
for the calendar  year in which the  Employee  made the excess  deferral.  If so
elected in the Employer's  Adoption  Agreement  Section 4.11,  allocable  income
shall  include  the "gap  period"  income  measured  from the  beginning  of the
calendar year following the calendar year of the excess  deferral to the date of
the  distribution.  If the distribution of the excess deferral occurs during the
calendar  year in  which  the  Employee  made  the  excess  deferral,  the  Plan
Administrator will treat as a "gap period" the period from the first day of that
calendar year to the date of the distribution.  Subject to an alternative method
of  determining  allocable  income  as  specified  in  the  Employer's  Adoption
Agreement Section 4.11, the Plan Administrator  will determine  allocable income
in the same manner as described in Section 4.16 for excess contributions, except
the numerator of the  allocation  fraction will be the amount of the  Employee's
excess  deferrals and the  denominator  of the  allocation  fraction will be the
Employee's Account Balance attributable to his Elective Deferrals.

         4.12 ACTUAL DEFERRAL  PERCENTAGE  ("ADP") TEST. For each Plan Year, the
              -----------------------------------------
Plan   Administrator  must  determine  whether  the  Plan's  Codesection  401(k)
arrangement satisfies either of the following ADP tests:

                                       39
<PAGE>

                  (a) The  average  ADP for those  Participants  who are  Highly
         Compensated  Employees (the "Highly Compensated Group") does not exceed
         1.25 times the  average  ADP of those  Participants  who are  Nonhighly
         Compensated Employees (the "Nonhighly Compensated Group"); or

                  (b) The average ADP for the Highly  Compensated Group does not
         exceed the average ADP for the Nonhighly Compensated Group by more than
         two  percentage  points  (or the  lesser  percentage  permitted  by the
         multiple use  limitation  in Section  4.22) and the average ADP for the
         Highly Compensated Group is not more than twice the average ADP for the
         Nonhighly Compensated Group.

         4.13  CALCULATION OF AVERAGE DEFERRAL PERCENTAGE.
               ------------------------------------------

                  (a) The average ADP for a group is the average  (expressed  as
         percentage  calculated  to the  nearest  one-hundredth  (1/100)  of one
         percent  (1%))  of the  separate  ADPs  calculated  for  each  Eligible
         Employee who is a member of that group. An Eligible  Employee's ADP for
         a Plan Year is the ratio  (expressed  as  percentage  calculated to the
         nearest  one-hundredth  (1/100) of one  percent  (1%)) of the  Eligible
         Employee's  Deferral  Contributions for the Plan Year to the Employee's
         Compensation  for the Plan Year.  For  aggregated  Family  Members,  as
         defined  in  Section  1.25,  treated  as a  single  Highly  Compensated
         Employee,  the ADP of the family  unit is the  greater  of: (i) the ADP
         determined by combining the Deferral  Contributions and Compensation of
         the Family Members who are Highly Compensated  Employees without family
         aggregation;  or (ii) the ADP  determined  by  combining  the  Deferral
         Contributions  and  Compensation of all aggregated  Family  Members.  A
         Nonhighly   Compensated   Employee's  ADP  does  not  include  Elective
         Deferrals  made to this Plan or to any  other  Plan  maintained  by the
         Employer, to the extent such Elective Deferrals exceed the Code section
         402(g) limitation described in Section 4.10.

                  (b)  The  Plan   Administrator  may  determine  (in  a  manner
         consistent  with  Treasury   regulations)  the  ADPs  of  the  Eligible
         Employees by taking into account Qualified Nonelective Contributions or
         Qualified Matching Contributions,  or both, made to this Plan or to any
         other qualified Plan maintained by the Employer. The Plan Administrator
         may not include  Qualified  Nonelective  Contributions  in the ADP test
         unless the allocation of Nonelective Contributions is nondiscriminatory

                                       40
<PAGE>

         when  the  Plan  Administrator   takes  into  account  all  Nonelective
         Contributions  (including the Qualified Nonelective  Contributions) and
         also  when  the  Plan   Administrator   takes  into  account  only  the
         Nonelective  Contributions not used in either the ADP test described in
         this Section 4.12 or the ACP test  described in Section 4.17.  For Plan
         Years beginning after December 31, 1989, the Plan Administrator may not
         include  in the ADP test any  Qualified  Nonelective  Contributions  or
         Qualified  Matching  Contributions  under another qualified plan unless
         that plan has the same plan year as this Plan.  The Plan  Administrator
         must  maintain  records to  demonstrate  compliance  with the ADP test,
         including  the  extent  to which the Plan  used  Qualified  Nonelective
         Contributions or Qualified Matching Contributions to satisfy the test.

                  (c) To determine the ADP of any Highly  Compensated  Employee,
         the Deferral Contributions taken into account must include any Elective
         Deferrals made by the Highly Compensated  Employee under any other Code
         section  401(k)  arrangement  maintained  by the  Employer,  unless the
         Elective  Deferrals  are to an ESOP. If the plans  containing  the Code
         section  401(k)  arrangements  have  different  plan  years,  the  Plan
         Administrator will determine the combined Deferral Contributions on the
         basis of the plan years ending in the same calendar year.

         4.14  AGGREGATION OF CERTAIN CODE SECTION 401(k)  ARRANGEMENTS.  If the
               --------------------------------------------------------
Employer treats two plans as a unit for coverage or nondiscrimination  purposes,
the Employer must combine the Code section 401(k)  arrangements under such plans
to determine  whether either plan satisfies the ADP test. This  aggregation rule
applies to the ADP  determination  for all Eligible  Employees,  irrespective of
whether an  Eligible  Employee is a Highly  Compensated  Employee or a Nonhighly
Compensated  Employee.  The Plan  Administrator  also may elect to aggregate the
Code section 401(k)  arrangements  under plans which the Employer does not treat
as a unit for coverage or nondiscrimination  purposes.  For Plan Years beginning
after  December 31, 1989, an  aggregation  of Code section  401(k)  arrangements
under this  paragraph  does not apply to plans which have  different  plan years
and, for Plan Years  beginning  after December 31, 1988, the Plan  Administrator
may not  aggregate an ESOP (or the ESOP portion of a plan) with a non-ESOP  plan
(or non-ESOP portion of a plan).

         4.15 CHARACTERIZATION OF EXCESS CONTRIBUTIONS.  If, pursuant to Section
              ----------------------------------------
4.13,  the  Plan   Administrator  has  elected  to  include  Qualified  Matching
Contributions  in the average  ADP,  the Plan  Administrator  will treat  excess

                                       41
<PAGE>

contributions as attributable  proportionately to Deferral  Contributions and to
Qualified  Matching  Contributions  allocated  on the  basis of  those  Deferral
Contributions.  If the total amount of a Highly  Compensated  Employee's  excess
contributions for the Plan Year exceeds his Deferral  Contributions or Qualified
Matching  Contributions for the Plan Year, the Plan Administrator will treat the
remaining  portion of his excess  contributions  as  attributable  to  Qualified
Nonelective  Contributions.  The Plan  Administrator  will  reduce the amount of
excess  contributions  for a Plan  Year  distributable  to a Highly  Compensated
Employee by the amount of excess  deferrals (as determined in Section 4.10),  if
any,  previously  distributed to that Employee for the  Employee's  taxable year
ending in that Plan Year.

         4.16  DISTRIBUTION OF EXCESS CONTRIBUTIONS.
               ------------------------------------

                  (a) If the Plan  Administrator  determines  the Plan  fails to
         satisfy  the ADP test for a Plan Year,  it must  distribute  the excess
         contributions,  as adjusted for allocable income,  during the next Plan
         Year.  However,  the Employer  will incur an excise tax equal to 10% of
         the amount of excess  contributions  for a Plan Year not distributed to
         the appropriate  Highly  Compensated  Employees  during the first 2 1/2
         months of that next Plan Year. The excess  contributions are the amount
         of  Deferral  Contributions  made by the Highly  Compensated  Employees
         which  causes  the  Plan to fail to  satisfy  the ADP  test.  The  Plan
         Administrator will distribute to each Highly  Compensated  Employee his
         respective share of the excess  contributions.  The Plan  Administrator
         will  determine  the  respective  shares  of  excess  contributions  by
         starting with the Highly  Compensated  Employee(s) who has the greatest
         ADP,  reducing  his ADP to the next highest ADP,  then,  if  necessary,
         reducing  the ADP of the  Highly  Compensated  Employee(s)  at the next
         highest  ADP  level  (including  the  ADP  of  the  Highly  Compensated
         Employee(s) whose ADP the Plan Administrator already has reduced),  and
         continuing  in this  manner  until  the  average  ADP  for  the  Highly
         Compensated  Group  satisfies the ADP test.  If the Highly  Compensated
         Employee is part of an aggregated family group, the Plan Administrator,
         in accordance with the applicable Treasury regulations,  will determine
         each  aggregated   family  member's   allocable  share  of  the  excess
         contributions assigned to the family unit.

                  (b) To  determine  the amount of the  corrective  distribution
         required under this Section 4.16, the Plan Administrator must calculate
         the   allocable   income   for  the  Plan  Year  in  which  the  excess

                                       42
<PAGE>

         contributions arose. If so elected in the Employer's Adoption Agreement
         Section 4.16,  allocable  income shall include the "gap period"  income
         measured from the beginning of the Plan Year following the Plan Year of
         the excess  contribution  to the date of the  distribution.  "Allocable
         income"  means net income or net  losection  Subject to an  alternative
         method of calculating  allocable  income as specified in the Employer's
         Adoption  Agreement Section 4.16, the Plan Administrator will calculate
         allocable  income for the Plan Year by: (1) first  determining  the net
         income  or net  loss  for  the  Plan  Year  on the  Highly  Compensated
         Employee's Account Balance attributable to Deferral Contributions;  and
         (2) then  multiplying  this  net  income  or net loss by the  following
         fraction:

                   Amount of the Highly Compensated Employee's
                              excess contributions
                   -------------------------------------------
                         Account Balance attributable to
                             Deferral Contributions

                  (c) The Account Balance attributable to Deferral Contributions
         includes  the  Account  Balance   attributable  to  Qualified  Matching
         Contributions  and  Qualified  Nonelective   Contributions  taken  into
         account  in the ADP test for the Plan Year or for any prior  Plan Year.
         For purposes of the denominator of the fraction, the Plan Administrator
         will   calculate   the  Account   Balance   attributable   to  Deferral
         Contributions  as of the last day of the Plan Year  (without  regard to
         the net income or net loss for the Plan Year on that Account Balance).

                  (d) To calculate  allocable  income for the "gap  period," the
         Plan  Administrator  will perform the same  calculation as described in
         paragraph (b) above,  except in clause (1) the Plan  Administrator will
         determine,  as of the  last  day of the  month  preceding  the  date of
         distribution,  the net income or net loss for the "gap  period"  and in
         clause (2) will calculate the Account Balance  attributable to Deferral
         Contributions as of the day before the  distribution.  If the Plan does
         not perform a valuation on the last day of the month preceding the date
         of  distribution,  the Plan  Administrator,  in lieu of the calculation
         described in this paragraph,  will calculate  allocable income for each
         month in the "gap period" as equal to 10% of the  allocable  income for
         the Plan Year. Under this alternate calculation, the Plan Administrator

                                       43
<PAGE>

         will disregard the month in which the distribution  occurs, if the Plan
         makes the distribution no later than the 15th day of that month.

         4.17  NONDISCRIMINATION  RULES  FOR  EMPLOYER  MATCHING  CONTRIBUTIONS/
               -----------------------------------------------------------------
PARTICIPANT NONDEDUCTIBLE CONTRIBUTIONS. For Plan Years beginning after December
---------------------------------------
31, 1986,  the Plan  Administrator  must determine  whether the annual  Employer
Matching  Contributions (other than Qualified Matching Contributions used in the
ADP under Section 4.13), if any, and the Employee Contributions, if any, satisfy
either of the following average contribution percentage ("ACP") tests:

         (i) The ACP for those Participants who are Highly Compensated Employees
         (the "Highly  Compensated Group") does not exceed 1.25 times the ACP of
         those  Participants  who  are  Nonhighly   Compensated  Employees  (the
         "Nonhighly Compensated Group"); or

         (ii) The ACP for the Highly  Compensated  Group does not exceed the ACP
         for the  Nonhighly  Compensated  Group by more than two (2)  percentage
         points  (or  the  lesser  percentage  permitted  by  the  multiple  use
         limitation  in  Section  4.22) and the ACP for the  Highly  Compensated
         Group is not more  than  twice  the ACP for the  Nonhighly  Compensated
         Group.

         4.18  CALCULATION OF AVERAGE CONTRIBUTION PERCENTAGE.
               ----------------------------------------------

                  (a)  The  ACP  for a  group  is the  average  (expressed  as a
         percentage  calculated  to the  nearest  one-hundredth  (1/100)  of one
         percent (1%)) of the separate contribution  percentages  calculated for
         each  Eligible  Employee  who is a member of that  group.  An  Eligible
         Employee's  contribution  percentage  for a  Plan  Year  is  the  ratio
         (expressed  as a  percentage  calculated  to the nearest  one-hundredth
         (1/100)  of one  percent  (1%)) of the  Eligible  Employee's  aggregate
         contributions for the Plan Year to the Employee's  Compensation for the
         Plan   Year.   'Aggregate    contributions'   are   Employer   Matching
         Contributions (other than Qualified Matching  Contributions used in the
         ADP test under Section 4.13) and Employee  Contributions (as defined in
         Section  1.20) made under the Plan on behalf of the  Participant  for a
         Plan Year.  Such  aggregate  contributions  shall not include  Matching
         Contributions  that are forfeited  either to correct  Excess  Aggregate
         Contributions  or because  the  contributions  to which they relate are
         Excess   Deferrals,    excess   contributions   or   excess   aggregate
         contributions.  'Total  Compensation'  means Compensation as defined by
         Code section  414(s),  without regard to the reductions in compensation

                                       44
<PAGE>

         provided by Code  sections  125,  402(a)(8),  402(h)(1)(B)  and 403(b),
         which for Plan Years beginning on or after December 31, 1988, shall not
         exceed  $200,000,  adjusted  pursuant to Code section  401(a)(17).  For
         aggregated  Family  Members,  as defined in Section 1.25,  treated as a
         single Highly Compensated Employee, the contribution  percentage of the
         family  unit  is  the  greater  of:  (i)  the  contribution  percentage
         determined by combining the aggregate contributions and Compensation of
         the Family Members who are Highly Compensated  Employees without family
         aggregation;   or  (ii)  the  contribution   percentage  determined  by
         combining  the  aggregate   contributions   and   Compensation  of  all
         aggregated Family Members.

                  (b)  The  Plan  Administrator,  in a  manner  consistent  with
         Treasury regulations, may determine the contribution percentages of the
         Eligible  Employees  by  taking  into  account  Qualified   Nonelective
         Contributions (other than Qualified  Nonelective  Contributions used in
         the ADP test under Section 4.13) or Elective  Deferrals,  or both, made
         to this Plan or to any other qualified Plan maintained by the Employer.
         The  Plan   Administrator   may  not  include   Qualified   Nonelective
         Contributions  in the ACP test  unless the  allocation  of  Nonelective
         Contributions is  nondiscriminatory  when the Plan Administrator  takes
         into account all  Nonelective  Contributions  (including  the Qualified
         Nonelective  Contributions) and also when the Plan Administrator  takes
         into account only the Nonelective  Contributions not used in either the
         ADP test  described in Section  4.12 or the ACP test  described in this
         Section 4.17. The Plan Administrator may not include Elective Deferrals
         in the ACP test, unless the Plan which includes the Elective  Deferrals
         satisfies  the ADP test both with and  without the  Elective  Deferrals
         included in this ACP test. For Plan years  beginning after December 31,
         1989,  the  Plan  Administrator  may not  include  in the ACP  test any
         Qualified Nonelective Contributions or Elective Deferrals under another
         qualified  plan  unless  that plan has the same plan year as this Plan.
         The Plan Administrator must maintain records to demonstrate  compliance
         with  the ACP  test,  including  the  extent  to which  the  Plan  used
         Qualified  Nonelective  Contributions or Elective  Deferrals to satisfy
         the test.

                  (c) To determine  the  contribution  percentage  of any Highly
         Compensated  Employee,  the aggregate  contributions taken into account
         must include any Matching  Contributions (other than Qualified Matching
         Contributions used in the ADP test) and any Employee Contributions made

                                       45
<PAGE>

         on his behalf to any other plan maintained by the Employer,  unless the
         other plan is an ESOP. If the plans have different plan years, the Plan
         Administrator  will determine the combined  aggregate  contributions on
         the basis of the plan years ending in the same calendar year.

         4.19 AGGREGATION OF CERTAIN PLANS. If the Employer treats two (2) plans
              ----------------------------
as a unit for coverage or nondiscrimination  purposes, the Employer must combine
the  plans to  determine  whether  either  plan  satisfies  the ACP  test.  This
aggregation rule applies to the contribution  percentage  determination  for all
Eligible  Employees,  irrespective  of whether an Eligible  Employee is a Highly
Compensated Employee or a Nonhighly Compensated Employee. The Plan Administrator
also may elect to aggregate  plans which the  Employer  does not treat as a unit
for  coverage or  nondiscrimination  purposes.  For Plan Years  beginning  after
December  31,  1989,  an  aggregation  of plans under this Section 4.19 does not
apply to plans which have  different  plan years and,  for Plan Years  beginning
after  December 31, 1988, the Plan  Administrator  may not aggregate an ESOP (or
the ESOP portion of plan) with a non-ESOP plan (or non-ESOP portion of a plan).

         4.20  DISTRIBUTION OF EXCESS AGGREGATE CONTRIBUTIONS.
               ----------------------------------------------

                  (a) The Plan  Administrator  will determine  excess  aggregate
         contributions after determining excess deferrals under Section 4.10 and
         excess  contributions  under Section  4.15.  If the Plan  Administrator
         determines  the Plan fails to satisfy the ACP test for a Plan Year,  it
         must  distribute the excess  aggregate  contributions,  as adjusted for
         allocable  income, if applicable,  pursuant to the Employer's  election
         under  Adoption  Agreement  Section  4.20,  during  the next Plan Year.
         However,  the  Employer  will incur an excise tax equal to ten  percent
         (10%) of the amount of excess aggregate  contributions  for a Plan Year
         not distributed to the appropriate Highly Compensated  Employees during
         the first two and one-half (2-1/2) months of that next Plan Year.

                  (b) The  excess  aggregate  contributions  are the  amount  of
         aggregate  contributions  allocated on behalf of the Highly Compensated
         Employees  which  causes the Plan to fail to satisfy the ACP test.  The
         Plan Administrator will distribute to each Highly Compensated  Employee
         his respective  share of the excess aggregate  contributions.  The Plan
         Administrator  will determine the respective shares of excess aggregate
         contributions by starting with the Highly  Compensated  Employee(s) who

                                       46
<PAGE>

         has the greatest  contribution  percentage,  reducing his  contribution
         percentage  to the  next  highest  contribution  percentage,  then,  if
         necessary,   reducing  the   contribution   percentage  of  the  Highly
         Compensated  Employee(s)  at the next highest  contribution  percentage
         level (including the contribution  percentage of the Highly Compensated
         Employee(s)  whose  contribution   percentage  the  Plan  Administrator
         already has reduced),  and  continuing in this manner until the ACP for
         the Highly  Compensated  Group  satisfies  the ACP test.  If the Highly
         Compensated  Employee is part of an aggregated  family group,  the Plan
         Administrator,  in accordance with the applicable Treasury regulations,
         will determine each aggregated  family member's  allocable share of the
         excess aggregate contributions assigned to the family unit.

                  (c) To  determine  the amount of the  corrective  distribution
         required under this Section 4.20, the Plan Administrator must calculate
         the  allocable  income for the Plan Year in which the excess  aggregate
         contributions arose. If so elected in the Employer's Adoption Agreement
         Section 4.20,  allocable  income shall include the "gap period"  income
         measured  from the  beginning  of the next Plan Year to the date of the
         distribution.  "Allocable  income"  means net  income or net  losection
         Subject to an  alternative  method of calculating  allocable  income as
         specified in the Employer's  Adoption  Agreement Section 4.20, the Plan
         Administrator  will  determine  allocable  income in the same manner as
         described  in  Section  4.16  for  excess  contributions,   except  the
         numerator of the  allocation  fraction  will be the Highly  Compensated
         Employee's  excess aggregate  contributions  and the denominator of the
         allocation fraction will be the Employee's Account Balance attributable
         to aggregate contributions and, if applicable, to Qualified Nonelective
         Contributions and Elective  Deferrals  included in the ACP test for the
         Plan Year or for any prior Plan Year.

         4.21  CHARACTERIZATION  OF  EXCESS  AGGREGATE  CONTRIBUTIONS.  The Plan
               ------------------------------------------------------
Administrator  will treat a Highly  Compensated  Employee's  allocable  share of
excess  aggregate   contributions  in  the  following  priority:  (1)  first  as
attributable to his Employee Contributions which are voluntary contributions, if
any;  (2) then as  Matching  Contributions  allocable  with  respect  to  excess
contributions  determined under the ADP test described in Section 4.12; (3) then
on a pro rata basis to Matching  Contributions and to the Deferral Contributions
relating  to those  Matching  Contributions  which  the Plan  Administrator  has

                                       47
<PAGE>

included  in  the  ACP  test;  (4)  then  on  a  pro  rata  basis  to  Mandatory
Contributions,  if any, and to the Matching Contributions allocated on the basis
of  those  Mandatory  Contributions;  and  (5)  last  to  Qualified  Nonelective
Contributions  used  in the ACP  test.  To the  extent  the  Highly  Compensated
Employee's   excess  aggregate   contributions   are  attributable  to  Matching
Contributions,  and he is not 100% vested in his Account Balance attributable to
Matching  Contributions,  the Plan Administrator will distribute only the vested
portion and  forfeit the  nonvested  portion.  The vested  portion of the Highly
Compensated Employee's excess aggregate  contributions  attributable to Employer
Matching   Contributions   is  the  total   amount  of  such  excess   aggregate
contributions  (as  adjusted  for  allocable  income)  multiplied  by his vested
percentage  (determined  as of the  last  day of the Plan  Year  for  which  the
Employer made the Matching Contribution).  The Employer will specify in Adoption
Agreement  Section  4.09 the  manner in which the Plan will  allocate  forfeited
excess aggregate contributions.

         4.22  MULTIPLE USE LIMITATION.  For Plan Years beginning after December
               -----------------------
31, 1988, if at least one Highly  Compensated  Employee is includible in the ADP
test under Section 4.12 and in the ACP test under  Section 4.17,  the sum of the
Highly  Compensated  Group's  ADP  and  ACP  may not  exceed  the  multiple  use
limitation.

         The multiple use limitation is the greater of:

         (a) the sum of:

                  (1)      125% of the greater of: (A) the ADP of the  Nonhighly
                           Compensated   Group  under  the  Codesection   401(k)
                           arrangement;   or  (B)  the  ACP  of  the   Nonhighly
                           Compensated Group for the Plan Year beginning with or
                           within  the  Plan  year  of  the  Codesection  401(k)
                           arrangement; and

                  (2)      2% plus the lesser of (1)(A) or (1)(B),  but not more
                           than twice the lesser of (1)(A) or (1)(B); or

         (b) the sum of:

                  (1)      125% of the lesser  of: (A) the ADP of the  Nonhighly
                           Compensated   Group  under  the  Codesection   401(k)
                           arrangement;   or  (B)  the  ACP  of  the   Nonhighly
                           Compensated Group for the Plan Year beginning with or
                           within  the  Plan  Year  of  the  Codesection  401(k)
                           arrangement; and

                                       48
<PAGE>

                  (2)      2% plus the greater of (1)(A) or (1)(B), but not more
                           than twice the greater of (1)(A) or (1)(B).

         The Plan  Administrator  will determine  whether the Plan satisfies the
multiple use  limitation  after applying the ADP test under Section 4.12 and the
ACP test  under  Section  4.17 and after  making  any  corrective  distributions
required by those  Sections.  If, after  applying  this Section  4.22,  the Plan
Administrator  determines  the Plan has  failed  to  satisfy  the  multiple  use
limitation,  the Plan  Administrator  will  correct the failure by treating  the
excess amount as excess aggregate contributions under Section 4.21. This Section
4.22 does not apply unless, prior to application of the multiple use limitation,
the ADP and the ACP of the Highly  Compensated  Group each  exceeds  one hundred
twenty-five  percent  (125%) of the  respective  percentages  for the  Nonhighly
Compensated Group.

[NOTE: Sections 4.23 through 4.25 apply only to Participants in this Plan who do
not participate,  and who have never participated,  in another qualified plan or
in a welfare benefit fund (as defined in Code section 419(e))  maintained by the
Employer.]

         4.23  LIMITATIONS ON ALLOCATIONS.  The amount of Annual Additions which
               --------------------------
may be credited under this Plan on a Participant's  behalf for a Limitation Year
may not  exceed  the  lesser  of the  Maximum  Permissible  Amount  or any other
limitation  contained in this Plan. If the amount the Employer  otherwise  would
contribute  or  allocate  to the  Participant's  Account  would cause the Annual
Addition for the Limitation Year to exceed the Maximum  Permissible  Amount, the
Employer will reduce the amount of its  contribution or allocation so the Annual
Additions for the Limitation Year will equal the Maximum  Permissible Amount. If
an allocation of Employer  contributions would result in an Excess Amount (other
than an Excess  Amount  resulting  from the  circumstances  described in Section
4.25) to the Participant's  Account,  the Plan Administrator will reallocate the
Excess Amount to the remaining  Participants  who are eligible for an allocation
of Employer  contributions  for the Plan Year in which the Limitation Year ends.
The  Plan  Administrator  will  make  this  reallocation  on  the  basis  of the
allocation  method under the Plan as if the Participant  whose Account otherwise
would  receive the Excess  Amount is not eligible for an  allocation of Employer
contributions.

         4.24  DETERMINATION OF MAXIMUM PERMISSIBLE AMOUNT.
               -------------------------------------------

                                       49
<PAGE>

                  (a) Prior to the  determination  of the  Participant's  actual
         Compensation  for  a  Limitation  Year,  the  Plan   Administrator  may
         determine  the  Maximum   Permissible   Amount  on  the  basis  of  the
         Participant's  estimated annual  Compensation for such Limitation Year.
         The Plan Administrator must make this determination on a reasonable and
         uniform  basis  for  all  Participants  similarly  situated.  The  Plan
         Administrator  must reduce any Employer  contributions  (including  any
         allocation of forfeitures)  based on estimated  annual  Compensation by
         any Excess Amounts carried over from prior years.

                  (b) As soon as is  administratively  feasible after the end of
         the Limitation Year, the Plan  Administrator will determine the Maximum
         Permissible  Amount  for  such  Limitation  Year  on the  basis  of the
         Participant's actual Compensation for such Limitation Year.

         4.25  ELIMINATION  OF EXCESS AMOUNT.  If,  pursuant to Section 4.24, or
               -----------------------------
because of the allocation of forfeitures, there is an Excess Amount with respect
to a Participant for a Limitation Year, the Plan  Administrator  will dispose of
such Excess Amount as follows:

                  (a) The Plan  Administrator will return any voluntary Employee
         Contributions  to the Participant to the extent the return would reduce
         the Excess Amount.

                  (b) If, after the  application of  subparagraph  (a) above, an
         Excess Amount still exists,  and the Plan covers the Participant at the
         end of the Limitation  Year, then the Plan  Administrator  will use the
         Excess Amount(s) to reduce future Employer contributions (including any
         allocation of forfeitures)  under the Plan for the next Limitation Year
         and for each  succeeding  Limitation  Year,  as is  necessary,  for the
         Participant.

                  (c) If, after the  application of  subparagraph  (b) above, an
         Excess Amount still exists, and the Plan does not cover the Participant
         at the end of the Limitation  Year,  then the Plan  Administrator  will
         hold the Excess  Amount  unallocated  in a suspense  account.  The Plan
         Administrator  will  apply the  suspense  account  to  reduce  Employer
         contributions  (including  allocation of forfeitures) for all remaining
         Participants  in the  next  Limitation  Year,  and in  each  succeeding
         Limitation Year if necessary.

                                       50
<PAGE>

                  (d) If a suspense account is in existence at any time during a
         Limitation  Year pursuant to this Section 4.25, it will not participate
         in the  allocation  of the Trust's  investment  gains and losses.  If a
         suspense  account  is in  existence  at any time  during  a  particular
         Limitation  Year, all amounts in the suspense account must be allocated
         and  reallocated  to  Participants'  Accounts  before any  Employer  or
         Participant  contributions  may be made to the Plan for that Limitation
         Year.

                  (e) The Plan  Administrator  will not  distribute  any  Excess
         Amount(s) to Participants or to former Participants.

[NOTE: Sections 4.26 through 4.28 apply only to Participants who, in addition to
this Plan,  participate in one or more plans  (including  Paired Plans),  all of
which are qualified Master or Prototype  defined  contribution  plans or welfare
benefit  funds (as defined in Code  section  419(e)  maintained  by the Employer
during the Limitation Year.]

         4.26  LIMITATION ON ALLOCATIONS.  The amount of Annual  Additions which
               -------------------------
the Plan  Administrator  may allocate under this Plan on a Participant's  behalf
for a Limitation Year may not exceed the Maximum Permissible Amount,  reduced by
the  Annual  Addition  allocated  to the  Participant's  Account  for  the  same
Limitation  Year  under this Plan and such other  defined  contribution  plan or
welfare benefit fund. If an allocation of Employer contributions would result in
an Excess Amount (other than an Excess Amount  resulting from the  circumstances
described in Section 4.25) to the Participant's  Account, the Plan Administrator
will reallocate the Excess Amount to the remaining Participants who are eligible
for an  allocation  of  Employer  contributions  for the Plan  Year in which the
Limitation Year ends. The Plan  Administrator will make this reallocation on the
basis  of the  allocation  method  under  the Plan as if the  Participant  whose
Account  otherwise  would  receive  the  Excess  Amount is not  eligible  for an
allocation of Employer contributions.

         4.27  DETERMINATION OF MAXIMUM PERMISSIBLE AMOUNT.
               -------------------------------------------

                  (a) Prior to the  determination  of the  Participant's  actual
         Compensation  for the  Limitation  Year,  the  Plan  Administrator  may
         determine  the  Maximum   Permissible   Amount  on  the  basis  of  the
         Participant's  estimated annual  Compensation for such Limitation Year.
         The Plan Administrator will make this determination on a reasonable and
         uniform  basis  for  all  Participants  similarly  situated.  The  Plan

                                       51
<PAGE>

         Administrator  must reduce any Employer  contributions  (including  any
         allocation of forfeitures)  based on estimated  annual  Compensation by
         any Excess Amounts carried over from prior years.

                  (b) As soon as is  administratively  feasible after the end of
         the Limitation Year, the Plan  Administrator will determine the Maximum
         Permissible   Amount   on  the  basis  of  the   Participant's   actual
         Compensation for such Limitation Year.

         4.28  ELIMINATION OF EXCESS AMOUNT.
               ----------------------------

                  (a) If pursuant to Section 4.27, or because of the  allocation
         of forfeitures,  a Participant's  Annual  Additions under this Plan and
         all such other plans result in an Excess Amount for a Limitation  Year,
         such  Excess  Amount  will be deemed to  consist  of the  amounts  last
         allocated.  The Plan  Administrator  will  determine  the amounts  last
         allocated by treating the Annual  Additions  attributable  to a welfare
         benefit  fund  or  individual   medical  account  as  allocated  first,
         irrespective  of the actual  allocation  date under the welfare benefit
         fund or individual medical account.

                  (b)  The  Employer  must  specify  in its  Adoption  Agreement
         Section 4.28 the Excess  Amount  attributed  to this Plan,  if the Plan
         Administrator  allocates  an  Excess  Amount  to a  Participant  on  an
         allocation date of this Plan which coincides with an allocation date of
         another plan.

                  (c) The Plan  Administrator will dispose of any Excess Amounts
         attributed to this Plan as provided in Section 4.25.

[NOTE:  Section 4.29 applies only to Participants who, in addition to this Plan,
participate  in  one  or  more  qualified  plans  which  are  qualified  defined
contribution  plans  other than a Master or  Prototype  plan  maintained  by the
Employer during the Limitation Year.]

         4.29 SPECIAL ALLOCATION LIMITATION.  The Annual Addition which the Plan
              -----------------------------
Administrator  may allocate under this Plan for any Limitation Year on behalf of
any  Participant  is limited in accordance  with the provisions of Sections 4.26
through 4.28, as though the other plan were a Master or Prototype  plan,  unless
the  Employer  provides  other  limitations  in  an  addendum  to  the  Adoption
Agreement, numbered Section 4.29.

         4.30  DEFINED BENEFIT  PLAN  LIMITATION.  If the  Employer  maintains a
               ---------------------------------
qualified  defined  benefit  plan,  or has ever  maintained a qualified  defined

                                       52

<PAGE>

benefit plan covering any  Participant in the Plan,  then the sum of the defined
benefit plan fraction and the defined contribution plan fraction,  as defined in
Section 4.31 below,  for any Participant for any Limitation Year must not exceed
1.0. The Employer must provide in Adoption  Agreement Section 4.30 the manner in
which the Plan will satisfy this  limitation.  The Employer also must provide in
its  Adoption  Agreement  Section 4.30 the manner in which the Plan will satisfy
the  top-heavy  requirements  of Code  section 416 after taking into account the
existence (or prior maintenance) of the defined benefit plan.

         4.31  DEFINITIONS  - ARTICLE  IV.  For  purposes  of  Article  IV,  the
               --------------------------
following terms means:

                  (a)  "Annual  Addition"  - The  sum of the  following  amounts
         allocated  on  behalf  of a  Participant  for a  Limitation  Year:  (1)
         Employer   contributions;   (2)   forfeitures;   and  (3)   Participant
         contributions.  Except to the extent provided in Treasury  regulations,
         Annual Additions include excess contributions described in Code section
         401(k), Excess Aggregate Contributions described in Code section 401(m)
         and excess deferrals described in Code section 402(g),  irrespective of
         whether the Plan  distributes or forfeits such excess  amounts.  Annual
         Additions  also include  Excess  Amounts  reapplied to reduce  Employer
         contributions  under Section 4.25.  Amounts  allocated  after March 31,
         1984,  to an  individual  medical  account (as defined in Code  section
         415(1)(2))  included as part of a pension or annuity plan maintained by
         the  Employer  are treated as Annual  Additions.  Furthermore,  amounts
         derived from contributions paid or accrued after December 31, 1985, for
         Taxable  Years  ending  after  December  31,  1985,   attributable   to
         post-retirement medical benefits allocated to the separate account of a
         key employee (as defined in Code  section  419A(d)(3))  under a welfare
         benefit  fund (as defined in Code  section  419(e))  maintained  by the
         Employer  are  treated as Annual  Additions  to a defined  contribution
         plan. For purposes of this Section  4.31(a),  any Excess Amount applied
         under Section 4.25 or 4.28 in the  Limitation  Year to reduce  Employer
         contributions  will be considered  Annual Additions for such Limitation
         Year.

                  (b) "Average  contribution  percentage" shall mean the average
         of the aggregate contributions of the Eligible Employees in a group.

                  (c) "Eligible  Employee"  means,  for purposes of the ADP test
         described in Section  4.12, an Employee who is eligible to enter into a

                                       53
<PAGE>

         salary reduction  agreement for the Plan Year,  irrespective of whether
         he actually  enters into such an agreement,  and a  Participant  who is
         eligible  for  an  allocation  of  the  Employer's   Cash  or  Deferred
         Contribution  for the Plan Year. For purposes of the ACP test described
         in Section 4.17,  an "Eligible  Employee"  means a  Participant  who is
         eligible to receive an allocation of Matching  Contributions  (or would
         be eligible if he made the type of  contributions  necessary to receive
         an  allocation  of Matching  Contributions)  and a  Participant  who is
         eligible to make nondeductible  contributions,  irrespective of whether
         he actually makes nondeductible contributions. An Employee continues to
         be  an  Eligible  Employee  during  a  period  the  Plan  suspends  the
         Employee's   right  to  make   Elective   Deferrals  or   nondeductible
         contributions following a hardship distribution.

                  (d)  "Employer" - The  Employer  that adopts this Plan and any
         Affiliated  Employers.  Solely for purposes of applying the limitations
         on  allocations  in  this  Article  IV,  the  Plan  Administrator  will
         determine  Affiliated Employers described in Section 16.01 by modifying
         Code  sectionsection  414(b) and (c) in  accordance  with Code  section
         415(h).

                  (e) "Excess Amount" - The excess of the  Participant's  Annual
         Additions for the Limitation Year over the Maximum Permissible Amount.

                  (f) "Defined  Contribution Dollar Limitation" - $30,000 or, if
         greater,  one-fourth (1/4) of the defined benefit dollar limitation set
         forth in Code section  415(b)(1) as in effect for the Limitation  Year.
         If there is a short  Limitation  Year because of a change in Limitation
         Years, the Plan  Administrator  will multiply the Defined  Contribution
         Dollar Limitation by the following fraction:

                  Number of months in the short Limitation Year
                -------------------------------------------------
                                       12

                  (g) "Highly  Compensated  Employee" means an Eligible Employee
         who  satisfies  the  definition  in  Section  1.25 of the Plan.  Family
         members aggregated as a single Employee under Section 1.25 constitute a
         single Highly Compensated Employee,  whether a particular family member
         is a Highly Compensated  Employee or a Nonhighly  Compensated  Employee
         without the application of family aggregation.

                                       54
<PAGE>

                  (h) "Master or  Prototype  Plan" - A plan the form of which is
         the subject to a favorable  notification  letter or a favorable opinion
         letter from the Internal Revenue Service.

                  (i)  "Maximum  Permissible  Amount"  - The  lesser  of (1) the
         defined  contribution  dollar  limitation,  or (2) twenty-five  percent
         (25%) of the  Participant's  Compensation  for the Limitation Year. The
         Compensation  limitation  referred  to in (2)  shall  not  apply to any
         contribution  for medical  benefits (within the meaning of Code section
         401(h) or 419A(f)(2))  which is otherwise treated as an Annual Addition
         under Code section 415(l)(1) or 419A(d)(2).

                  (j)  "Nonhighly   Compensated   Employee"  means  an  Eligible
         Employee  who is not a  Highly  Compensated  Employee  and who is not a
         family member treated as a Highly Compensated Employee.

                  (k)  "Defined  contribution  plan" - A  retirement  plan which
         provides  for an  individual  account  for  each  Participant  and  for
         benefits based solely on the amount  contributed  to the  Participant's
         Account, and any income, expenses, gains or losses, and any forfeitures
         of accounts of other  Participants  which the Plan may allocate to such
         Participant's  Account.  The Plan  Administrator must treat all defined
         contribution  plans  (whether  or  not  terminated)  maintained  by the
         Employer as a single plan.  Solely for purposes of the  limitations  on
         allocations  in this  Article  IV,  the Plan  Administrator  will treat
         Participant  contributions made to a defined benefit plan maintained by
         the  Employer  as  a  separate  defined  contribution  plan.  The  Plan
         Administrator  also  will  treat  as a  defined  contribution  plan  an
         individual  medical  account  (as  defined in Code  section  415(l)(2))
         included as part of a defined  benefit plan  maintained by the Employer
         and,  for Taxable  Years  ending  after  December  31,  1985, a welfare
         benefit fund under Code section  419(e)  maintained  by the Employer to
         the extent there are post-retirement  medical benefits allocated to the
         separate  account  of a  key  employee  (as  defined  in  Code  section
         419A(d)(3)).

                  (l) "Defined  benefit plan" - A retirement plan which does not
         provide for individual  accounts for Employer  contributions.  The Plan
         Administrator  must treat all  defined  benefit  plans  (whether or not
         terminated) maintained by the Employer as a single plan.

                                       55
<PAGE>

[NOTE:  The  definitions  in  subparagraphs  (f),  (g) and (h) apply only if the
limitation described in Section 4.30 applies to the Employer's Plan.]

                  (m)  "Defined  benefit  plan  fraction"  -  A  fraction,   the
         numerator  of  which is the sum of  projected  annual  benefits  of the
         Participant  under  the  defined  benefit  plan(s)  maintained  by  the
         Employer  (whether or not terminated),  and the denominator of which is
         the  lesser of one  hundred  twenty-five  percent  (125%) of the dollar
         limitation  determined under Code sectionsection 415(b) and (d) for the
         Limitation   Year,  or  one  hundred   forty  percent   (140%)  of  the
         Participant's  average  Compensation for his high three (3) consecutive
         Years of Service, including any adjustments under Code section 415(b).

                  To  determine  the  denominator  of this  fraction,  the  Plan
         Administrator  will make any  adjustment  required  under Code  section
         415(b) and will determine a Year of Service,  unless otherwise provided
         in an addendum to the Employer's Adoption  Agreement,  numbered Section
         4.30,  as a Plan Year in which the  Employee  completed  at least 1,000
         Hours  of  Service.  The  "projected  annual  benefit"  is  the  annual
         retirement benefit (adjusted to an actuarially equivalent straight life
         annuity  if the plan  expresses  such  benefit  in a form  other than a
         straight life annuity or qualified  joint and survivor  annuity) of the
         Participant  under  the  terms  of  the  defined  benefit  plan  on the
         assumptions he continues employment until his normal retirement age (or
         current  age,  if later) as stated in the  defined  benefit  plan,  his
         compensation  continues at the same rate as in effect in the Limitation
         Year under  consideration  until the date of his normal  retirement age
         and all other  relevant  factors used to determine  benefits  under the
         defined benefit plan remain constant as of the current  Limitation Year
         for all future Limitation Years.

                  If the  Participant  accrued  benefits in one or more  defined
         benefit plans maintained by the Employer which were in existence on May
         6, 1986, the dollar limitation used in the denominator of this fraction
         will not be less than the  Participant's  current  Account  Balance.  A
         Participant's current Account Balance is the sum of the annual benefits
         under such defined  benefit plans which the  Participant had accrued as
         of the end of the  1986  Limitation  Year  (the  last  Limitation  Year
         beginning  before  January 1, 1987),  determined  without regard to any
         change in the terms or  conditions  of the Plan made after May 5, 1986,

                                       56
<PAGE>

         and without regard to any cost of living adjustment occurring after May
         5, 1986.  This current Account Balance rule applies only if the defined
         benefit  plans   individually  and  in  the  aggregate   satisfied  the
         requirements  of Code  section  415 as in effect at the end of the 1986
         Limitation Year.

                  (n) "Defined  contribution  plan  fraction" - A fraction,  the
         numerator of which is the sum, as of the close of the Limitation  Year,
         of the Annual Additions to the Participant's  Account under the defined
         contribution  plan(s)  maintained  by  the  Employer  (whether  or  not
         terminated) for the current and all prior  Limitation  Years (including
         the annual additions  attributable to the  Participant's  nondeductible
         Employee  Contributions  to all defined  benefit plans,  whether or not
         terminated,  maintained  by the  Employer,  and  the  annual  additions
         attributable  to all welfare  benefit funds, as defined in Code section
         419(e),  and individual  medical  accounts,  as defined in Code section
         415(l)(2), maintained by the Employer), and the denominator of which is
         the sum of the  lesser  of the  following  amounts  determined  for the
         Limitation  Year and for each prior Year of Service with the  Employer:
         one hundred  twenty-five  percent  (125%) of the dollar  limitation  in
         effect  under Code  sectionsection  415(b) and (d) in effect under Code
         section 415(c)(1)(A) for the Limitation Year (determined without regard
         to the special dollar  limitations for employee stock ownership plans),
         or thirty-five percent (35%) of the Participant's  Compensation for the
         Limitation Year.

                  For  purposes of  determining  the defined  contribution  plan
         fraction, the Plan Administrator will not recompute Annual Additions in
         Limitation  Years  beginning  prior to January  1,  1987,  to treat all
         Participant  contributions as Annual  Additions.  If the Plan satisfied
         Code section 415 for  Limitation  Years  beginning  prior to January 1,
         1987, the Plan Administrator will redetermine the defined  contribution
         plan  fraction and the defined  benefit plan  fraction as of the end of
         the 1986 Limitation  Year, in accordance with this Section 4.31. If the
         sum of the redetermined  fractions exceeds 1.0, the Plan  Administrator
         will   subtract   permanently   from  the   numerator  of  the  defined
         contribution  plan fraction,  an amount equal to the product of (1) the
         excess of the sum of the fractions over 1.0, times (2) the  denominator
         of the defined  contribution  plan fraction.  In making the adjustment,
         the Plan  Administrator  must  disregard any accrued  benefit under the
         defined benefit plan which is in excess of the current Account Balance.
         This  Plan  continues  any   transitional   rules   applicable  to  the

                                       57
<PAGE>

         determination  of the  defined  contribution  plan  fraction  under the
         Employer's Plan as of the end of the 1986 Limitation Year.

                  (o)  "One  hundred  percent  (100%)  limitation"  - If the one
         hundred percent (100%) limitation applies,  the Plan Administrator must
         determine the  denominator of the defined benefit plan fraction and the
         denominator of the defined  contribution  plan fraction by substituting
         one hundred percent (100%) for one hundred  twenty-five percent (125%).
         The one hundred  percent  (100%)  limitation  applies  only if: (1) the
         Plan's Top-Heavy Ratio exceeds ninety percent (90%); or (2) the Plans's
         Top-Heavy  Ratio is greater than sixty percent (60%),  and the Employer
         does not elect in its Adoption  Agreement Section 4.30 to provide extra
         minimum benefits which satisfy Code section 416(h)(2).

                                       58
<PAGE>

                                    ARTICLE V
                  TERMINATION OF SERVICE - PARTICIPANT VESTING

         5.01 NORMAL RETIREMENT.  Notwithstanding  the vesting schedule selected
              -----------------
in the  Employer's  Adoption  Agreement  Section 5.05, a  Participant's  Account
Balance  derived  from  Employer  contributions  is one hundred  percent  (100%)
Nonforfeitable  upon and after attaining the Normal  Retirement Age specified in
the Employer's  Adoption  Agreement Section 1.37 (if employed by the Employer on
or after that  date).  A  Participant  may  terminate  his  employment  with the
Employer and retire for the purposes hereof upon his Normal  Retirement Date, as
specified in the  Employer's  Adoption  Agreement  Section 1.37, and all amounts
credited to such  Participant's  Account shall be paid to him as hereinafter set
forth  in  Section  6.06,  subject  to  the  provisions  of  Section  6.16  If a
Participant  continues  in the  employment  of the  Employer  after  his  Normal
Retirement  Date,  he  shall  continue  to  be  treated  in  all  respects  as a
Participant until his actual retirement.

         5.02  EARLY RETIREMENT.  If the  Employer  elects to provide  for early
               ----------------
retirement  under the Plan,  it must  specify  Early  Retirement  Date and Early
Retirement Age in its Adoption  Agreement Section 1.15. A Participant's  Account
Balance  derived  from  Employer  contributions  is one hundred  percent  (100%)
Nonforfeitable upon his Early Retirement Date (if employed by the Employer on or
after that date). A Participant  may terminate his employment  with the Employer
and retire for the  purposes  hereof  upon his Early  Retirement  Date by making
written  application to the Employer at least thirty (30) days prior to the date
as of which he wishes to elect Early Retirement.

         5.03  DISABILITY.  The  Employer  may elect in its  Adoption  Agreement
               ----------
Section  5.03 to provide  that a  Participant's  Account  Balance  derived  from
Employer  contributions will be one hundred percent (100%) Nonforfeitable if the
Participant's Separation from Service is a result of his Disability.

         5.04  DEATH.  The Employer may elect in its Adoption  Agreement Section
               -----
5.04 to provide that a  Participant's  Account  Balance  derived  from  Employer
contributions  will  be one  hundred  percent  (100%)  Nonforfeitable  upon  the
Participant's death.

         5.05  VESTING SCHEDULE.
               ----------------

                  (a) Except as  otherwise  provided  in Sections  5.01  through
         5.04,  for  each  Year  of  Service,  a  Participant's   Nonforfeitable
         percentage of his Account Balance  derived from Employer  contributions

                                       59
<PAGE>

         equals the percentage in the vesting schedule completed by the Employer
         in its Adoption Agreement Section 5.05.

                  (b)  If  the  Trustee   makes  a   distribution   (other  than
         distribution  of  the  Participant's  entire   Nonforfeitable   Account
         Balance,   as  described  in  Section   5.07)  to  a   partially-vested
         Participant, and the Participant has not incurred a Forfeiture Break in
         Service,  as defined in Section 5.06(a), at the relevant time, the Plan
         Administrator  will establish a separate Account for the  Participant's
         Account Balance.  At any relevant time following the distribution,  the
         Plan  Administrator  will  determine the  Participant's  Nonforfeitable
         Account Balance derived from Employer  contributions in accordance with
         the following formula: P(AB + (R x D)) - (R x D).

                  To  apply  this  formula,  "P"  is the  Participant's  current
         vesting  percentage  at the relevant  time,  "AB" is the  Participant's
         Employer-derived Account Balance at the relevant time, "R" is the ratio
         of  "AB"  to  the   Participant's   Employer-derived   Account  Balance
         immediately following the earlier distribution and "D" is the amount of
         the earlier distribution.  If, under a restated Plan, the Plan has made
         distribution to a  partially-vested  Participant  prior to its Restated
         Effective Date and is unable to apply the provisions of Section 5.08 to
         that prior  distribution,  this special vesting formula also applies to
         that Participant's  remaining Account. The Employer,  in an addendum to
         its Adoption Agreement, numbered Section 5.05, may elect to modify this
         formula to read as follows: P(AB + D) - D.

         5.06  INCLUDED YEARS OF SERVICE - VESTING.  For purposes of determining
               -----------------------------------
"Years of  Service"  with  respect to vesting,  the Plan takes into  account all
Years of Service an Employee completes with the Employer except:

                  (a)  For the  sole  purpose  of  determining  a  Participant's
         Nonforfeitable  percentage of his Account Balance derived from Employer
         contributions which accrued for his benefit prior to a Forfeiture Break
         in  Service,  the  Plan  disregards  any  Year  of  Service  after  the
         Participant first incurs a Forfeiture Break of Service. The Participant
         incurs  a  "Forfeiture  Break  in  Service"  when he  incurs  five  (5)
         consecutive Breaks in Service.

                  (b) The Plan disregards any Year of Service excluded under the
         Employer's Adoption Agreement Section 5.06.

                                       60
<PAGE>

         If the Employer experienced a change in Plan Years resulting in a short
Plan Year, as indicated in Adoption Agreement Section 1.41, each Participant who
completes a Year of Service for the twelve (12) month period  beginning with the
first day of the short Plan Year and a Year of Service for the twelve (12) month
period  beginning on the first day of the new Plan Year,  shall be credited with
two (2) Years of Service for vesting purposes under the Plan.

         5.07  DISTRIBUTIONS TO PARTIALLY-VESTED  PARTICIPANTS.  If, pursuant to
              ------------------------------------------------
Article VI, a partially-vested Participant receives a distribution of the entire
amount of his Nonforfeitable Account Balance before he incurs a Forfeiture Break
in Service (as  defined in Section  5.06(a)) (a  "cash-out"  distribution),  the
distribution will result in an immediate  forfeiture of the nonvested portion of
the  Participant's  Account  Balance  derived from Employer  contributions.  See
Section 5.11 for the  provisions  with respect to when a  forfeiture  occurs.  A
partially-vested  Participant is a Participant whose  Nonforfeitable  Percentage
determined under Section 5.05 is less than one hundred percent (100%).

         5.08  RESTORATION OF FORFEITED ACCOUNT BALANCE.
               ----------------------------------------

                  (a) A  partially-vested  Participant who is re-employed by the
         Employer  after  receiving a  distribution  of the entire amount of the
         Nonforfeitable  percentage  of his  Account  Balance  may  repay to the
         Trustee  the  amount  of  the  distribution  attributable  to  Employer
         contributions,  unless  the  Participant  no  longer  has  a  right  to
         restoration  by reason of the  conditions  of this Section  5.08.  If a
         partially-vested Participant makes the distribution repayment, the Plan
         Administrator,  subject to the  conditions of this Section  5.08,  must
         restore his Account Balance  attributable to Employer  contributions to
         the same dollar amount as the dollar  amount of his Account  Balance on
         the Adjustment Date, or other Valuation Date, immediately preceding the
         date of the cash-out  distribution,  unadjusted for any gains or losses
         occurring  subsequent to that Adjustment Date, or other Valuation Date.
         Restoration of the Participant's  Account Balance includes  restoration
         of all Code section 411(d)(6)  protected  benefits with respect to that
         restored  Account Balance,  in accordance with the applicable  Treasury
         regulations.  The Plan  Administrator  will not  restore a  re-employed
         Participant's Account Balance under this Section 5.08 if:

                                       61
<PAGE>

                           (1)  Five  (5)   years   have   elapsed   since   the
                  Participant's  first  re-employment  date  with  the  Employer
                  following the cash-out distribution; or

                           (2) The  Participant  incurred a Forfeiture  Break in
                  Service (as defined in Section 5.06(a)).

                  (b) If neither of the two conditions preventing restoration of
         the  Participant's  Account Balance in subparagraphs  (1) and (2) above
         applies, the Plan Administrator will restore the Participant's  Account
         Balance  as of the  Adjustment  Date  coinciding  with  or  immediately
         following the repayment.  To restore the Participant's Account Balance,
         the Plan Administrator,  to the extent necessary,  will allocate to the
         Participant's Account:

                           (1)  First,  the  amount,   if  any,  of  Participant
                  forfeitures the Plan  Administrator  would otherwise  allocate
                  under Section 4.09;

                           (2) Second, the amount, if any, of the Trust Fund net
                  income or gain for the Plan Year; and

                           (3) Third,  the  Employer  contribution  for the Plan
                  Year to the extent made under a discretionary formula.

                  In an addendum to its  Adoption  Agreement,  numbered  Section
         5.08, the Employer may eliminate as a means of  restoration  any of the
         amounts  described  in clauses (1), (2) and (3) or may change the order
         of priority of these  amounts.  To the extent the amounts  described in
         clauses  (1),  (2)  and  (3)  are   insufficient  to  enable  the  Plan
         Administrator  to make the  required  restoration,  the  Employer  must
         contribute,  without regard to any  requirement or condition of Section
         4.01, the additional amount necessary to enable the Plan  Administrator
         to make the required  restoration.  If, for a particular Plan Year, the
         Plan  Administrator  must restore the Account  Balance of more than one
         re-employed  Participant,  then the Plan  Administrator  will  make the
         restoration  allocations to each such Participant's Account in the same
         proportion that a Participant's restored amount for the Plan Year bears
         to  the  restored   amount  for  the  Plan  Year  of  all   re-employed
         Participants.  The Plan  Administrator  will not take into  account any
         allocation  under this  Section  5.08 in  applying  the  limitation  on
         allocations provisions in Article IV.

                                       62
<PAGE>

         5.09 ZERO PERCENT (0%) VESTED PARTICIPANT. The Employer must specify in
              ------------------------------------
its Adoption  Agreement Section 5.09 whether the deemed cash-out rule applies to
a zero percent (0%) vested  Participant.  A zero percent (0%) vested Participant
is a Participant  whose Account Balance derived from Employer  contributions  is
entirely forfeitable at the time of his Separation from Service. A Participant's
Account Balance shall not include accumulated  deductible Employee Contributions
within the meaning of Code section 72(o)(5)(B) for Plan Years beginning prior to
January 1, 1989. If the  Participant's  Account is not entitled to an allocation
of Employer  contributions  for the Plan Year in which he has a Separation  from
Service,  the Plan  Administrator  will apply the deemed cash-out rule as if the
zero percent (0%) vested  Participant  received a cash-out  distribution  on the
date of the Participant's  Separation from Service. If the Participant's Account
is  entitled  to  an  allocation  of  Employer   contributions   or  Participant
forfeitures  for the Plan Year in which he has a Separation  from  Service,  the
Plan  Administrator  will apply the deemed  cash-out rule as if the zero percent
(0%) vested Participant received a cash-out distribution on the first day of the
first Plan Year  beginning  after his Separation  from Service.  For purposes of
applying the restoration provisions of this Section 5.09, the Plan Administrator
will treat the zero  percent  (0%) vested  Participant  as repaying his cash-out
"distribution" on the first date of his re-employment with the Employer.  If the
deemed cash-out rule does not apply to the Employer's  Plan, a zero percent (0%)
vested  Participant  will not incur a  forfeiture  until he incurs a  Forfeiture
Break in Service.

         5.10 SEGREGATED ACCOUNT FOR REPAID AMOUNT. Until the Plan Administrator
              ------------------------------------
restores the  Participant's  Account Balance,  as described in Sections 5.08 and
5.09, the Trustee will invest the cash-out  amount the Participant has repaid in
a segregated  Account  maintained solely for that Participant.  The Trustee must
invest the amount in the Participant's  segregated  Account in Federally insured
interest  bearing  savings  account(s) or time  deposit(s)  (or a combination of
both), or in other fixed income  investments.  Until commingled with the balance
of the Trust Fund on the date the Plan Administrator  restores the Participant's
Account  Balance,  the  Participant's  segregated  Account remains a part of the
Trust, but it alone shares in any income it earns and it alone bears any expense
or loss it incurs.  Unless the repayment  qualifies as a rollover  contribution,
the Plan  Administrator  will direct the Trustee to repay to the  Participant as
soon as is  administratively  practicable  the full amount of the  Participant's
segregated Account if the Plan Administrator determines either of the conditions

                                       63
<PAGE>

of Section 5.08  prevents  restoration  as of the  applicable  Adjustment  Date,
notwithstanding the Participant's repayment.

         5.11  FORFEITURE OCCURS.  A  Participant's  forfeiture,  if any, of his
               -----------------
Account Balance derived from Employer contributions occurs under the Plan on the
earlier of:

                  (a) The last day of the  vesting  computation  period in which
         the Participant first incurs a Forfeiture Break in Service; or

                  (b) The  distribution  of the  entire  vested  portion  of the
         Participant's Account.

         The Plan  Administrator  determines the  percentage of a  Participant's
Account Balance forfeiture,  if any, under this Section 5.11 solely by reference
to the vesting schedule  selected in the Employer's  Adoption  Agreement Section
5.05. A Participant  does not forfeit any portion of his Account Balance for any
other reason or cause  except as  expressly  provided by this Section 5.11 or as
provided under Section 10.15.

                                       64
<PAGE>

                                   ARTICLE VI
                     TIME AND METHOD OF PAYMENT OF BENEFITS

         6.01 TIME OF PAYMENT OF ACCOUNT BALANCE.  The Plan Administrator  shall
              ----------------------------------
direct the Trustee to commence  distribution of a  Participant's  Nonforfeitable
Account  Balance in  accordance  with the  provisions  of this  Article  VI. The
Participant's  spouse must also consent in writing to any distribution for which
this Article VI requires spousal consent. A distribution date under this Article
VI,  unless  otherwise  specified  within  the  Plan,  is the date or dates  the
Employer  specifies in the Adoption  Agreement  with respect to the event giving
rise   to  the   Participant's   Separation   from   Service,   or  as  soon  as
administratively  practicable  following that distribution date. For purposes of
the  consent   requirements  under  this  Article  VI,  if  the  amount  of  the
Participant's  Nonforfeitable  Account Balance, at the time of any distribution,
exceeds  $3,500,  the Plan  Administrator  must treat that  amount as  exceeding
$3,500 for purposes of all subsequent Plan distributions to the Participant.

         6.02  SEPARATION  FROM  SERVICE FOR REASONS  OTHER THAN EARLY OR NORMAL
               -----------------------------------------------------------------
RETIREMENT, DISABILITY OR DEATH.
-------------------------------

                  (a) If the  Participant's  Separation  from Service is for any
         reason   other  than   retirement,   Disability   or  death,   and  his
         Nonforfeitable  Account  Balance does not exceed  $3,500,  nor has ever
         exceeded  $3,500,  the Plan  Administrator  will  direct the Trustee to
         distribute the Participant's  Nonforfeitable  Account Balance in a lump
         sum on the  distribution  date the  Employer  specifies in its Adoption
         Agreement  Section 6.02, but in no event later than the sixtieth (60th)
         day  following  the  close of the Plan  Year in which  the  Participant
         attains   Normal   Retirement   Age.  No  consent  is  required  for  a
         distribution not exceeding $3,500.

                  (b) If the  Participant's  Separation  from Service is for any
         reason   other  than   retirement,   Disability   or  death,   and  his
         Nonforfeitable  Account Balance exceeds $3,500,  the Plan Administrator
         will direct the Trustee to commence  distribution of the  Participant's
         Nonforfeitable  Account Balance, in accordance with the form and timing
         elected  by the  Participant.  The  Participant  may  elect to have the
         Trustee  commence  distribution as of any  distribution  date permitted
         under the Employer's  Adoption  Agreement Section 6.02. The Participant
         may  reconsider  an election at any time prior to the Annuity  Starting
         Date and elect to commence  distribution  as of any other  distribution

                                       65
<PAGE>

         date permitted under the Employer's Adoption Agreement, if the Employer
         has  elected  under  its  Adoption  Agreement  Section  6.02 to  permit
         revocation of such an election.  A  Participant  may not receive such a
         distribution  if,  prior to the time the  Trustee  actually  makes  the
         distribution,  the Participant returns to employment with the Employer.
         Following his attainment of Normal  Retirement  Age, a Participant  who
         has  separated   from  Service  may  elect   distribution   as  of  any
         distribution  date,   irrespective  of  the  elections  under  Adoption
         Agreement Section 6.02.

                  In the  absence of an election  by the  Participant,  the Plan
         Administrator  will direct the Trustee to distribute the  Participant's
         Nonforfeitable  Account  Balance in a lump sum (or, if applicable,  the
         normal annuity form of distribution required under Section 6.06(b)), on
         the sixtieth  (60th) day  following the close of the Plan Year in which
         the latest of the following events occurs:

                           (1)  the Participant attains Normal Retirement Age;

                           (2)  the Participant attains age sixty-two (62); or

                           (3)  the Participant's Separation from Service.

         6.03  EARLY OR NORMAL RETIREMENT.  If the Participant's Separation from
               --------------------------
Service is on  account of Normal  Retirement  Age or  satisfaction  of the Early
Retirement requirements,  if applicable,  the Plan Administrator will direct the
Trustee  to pay  the  Participant's  Nonforfeitable  Account  Balance  in a form
elected by the Participant,  on the distribution date the Employer  specifies in
Adoption  Agreement  Section  6.03.  Such  distribution  shall be subject to the
notice and consent  requirements  of this  Article VI, if the  survivor  annuity
rules are applicable, and subject to the applicable mandatory commencement dates
described in Sections 6.02(a) and (b).

         6.04  DISABILITY.  If the  Participant's  Separation  from  Service  is
               ----------
because of Disability, the Plan Administrator will direct the Trustee to pay the
Participant's   Nonforfeitable   Account  Balance  in  a  form  elected  by  the
Participant,  on the  distribution  date  the  Employer  specifies  in  Adoption
Agreement  Section 6.04.  Such  distribution  shall be subject to the notice and
consent  requirements of this Article VI and subject to the applicable mandatory
commencement dates described in Sections 6.02(a) and (b).

                                       66
<PAGE>

         6.05  DEATH  OF THE  PARTICIPANT.  In the  event  of the  death  of the
               --------------------------
Participant  prior to his Annuity  Starting  Date, the Plan  Administrator  will
direct the Trustee,  in accordance  with this Section 6.05, to distribute to the
Participant's  Beneficiary,  the  Participant's  Nonforfeitable  Account Balance
remaining  in the Trust,  on the  distribution  date the  Employer  specifies in
Adoption Agreement Section 6.05.

                  (a)  If  the  deceased  Participant's  Nonforfeitable  Account
         Balance does not exceed $3,500,  nor has ever exceeded $3,500, the Plan
         Administrator,  subject  to the  requirements  of Section  6.07,  shall
         direct  the   Trustee  to   distribute   the   deceased   Participant's
         Nonforfeitable  Account Balance in a lump sum, on the distribution date
         the Employer  specifies in the Adoption  Agreement,  or, if later,  the
         date on  which  the  Plan  Administrator  receives  notification  of or
         otherwise confirms the Participant's death.

                  (b)  If  the  deceased  Participant's  Nonforfeitable  Account
         Balance exceeds $3,500,  the Plan Administrator will direct the Trustee
         to distribute the deceased Participant's Nonforfeitable Account Balance
         at  the  time  and in the  form  elected  by  the  Participant  or,  if
         applicable, by the Beneficiary,  as permitted under this Article VI. In
         the  absence of an  election,  subject to the  requirements  of Section
         6.07, the Plan  Administrator will direct the Trustee to distribute the
         Participant's  undistributed  Nonforfeitable  Account Balance in a lump
         sum on the first  distribution  date  coinciding  with or following the
         close of the Plan Year in which the  Participant's  death occurs or, if
         later,  the  first  distribution  date  following  the  date  the  Plan
         Administrator  receives  notification  of  or  otherwise  confirms  the
         Participant's death.

                  (c) If the amount of the deceased Participant's Nonforfeitable
         Account Balance exceeds $3,500, the Participant's Beneficiary may elect
         to have the Trustee distribute the Participant's Nonforfeitable Account
         Balance in a form and within a period  permitted under Section 6.05 and
         Section  6.07 or  6.08,  whichever  is  applicable.  The  Beneficiary's
         election is subject to any  restrictions  designated  in writing by the
         Participant and not revoked as of his date of death.

         6.06  METHOD OF PAYMENT OF ACCOUNT BALANCE.
               ------------------------------------

                                       67
<PAGE>

                  (a) The  Employer  may  elect  in its  Adoption  Agreement  to
         provide  the  benefit  options of this  Section  6.06(a),  which do not
         include survivor annuities. If the Employer makes this election,  then,
         except  as  specified  otherwise,  if  a  Participant's  Nonforfeitable
         Account Balance exceeds $3,500, distribution of benefits under the Plan
         may be made, at the election of the Participant, or his Beneficiary, if
         applicable, in one, or a combination, of the following forms:

                           (1)      A lump sum;

                           (2) Approximately equal  installments,  as elected by
                  the Employer in Adoption  Agreement Section 6.06, over a fixed
                  reasonable  period of time, not exceeding the life  expectancy
                  of the  Participant,  or the  joint  life  and  last  survivor
                  expectancy of the Participant and his Beneficiary.

                           To facilitate  installment  payments to a Participant
                  or   Beneficiary   under  this  Section   6.06(a),   the  Plan
                  Administrator  may direct the Trustee to segregate  all or any
                  part  of  the  Participant's  Account  Balance  in a  separate
                  Account. The Trustee will invest the Participant's  segregated
                  Account  in  Federally   insured   interest   bearing  savings
                  account(s) or time  deposit(s) (or a combination of both),  or
                  in  other  fixed  income  investments.  A  segregated  Account
                  remains a part of the Trust, but it alone shares in any income
                  it earns, and it alone bears any expense or loss it incurs. If
                  elected in the  Employer's  Adoption  Agreement  Section 6.06,
                  under  an  installment   distribution,   the   Participant  or
                  Beneficiary,  at any time, may elect to accelerate the payment
                  of  all,  or  any  portion,   of  the   Participant's   unpaid
                  Nonforfeitable Account Balance, subject to the requirements of
                  Sections 6.17 and 6.18.

                           (3) The Employer may expand or limit these options in
                  the Adoption Agreement.

                  If a  Participant,  or the  terms  of the  Plan,  designate  a
         particular  payment  option for a Participant or his  Beneficiary,  the
         Participant or  Beneficiary,  may,  nevertheless,  agree to a different
         payment or option  with the Plan  Administrator,  except as provided in
         Section 6.17 or 6.18.

                                       68
<PAGE>

                  (b) In  lieu  of  electing  the  benefit  options  of  Section
         6.06(a),  the Employer  may elect in its Adoption  Agreement to provide
         the benefit  options of this Section  6.06(b),  which include  survivor
         annuities.  If the  Employer  makes  this  election,  then,  except  as
         specified otherwise, if a Participant's  Nonforfeitable Account Balance
         exceeds $3,500,  distribution of benefits under the Plan may be made in
         one, or a combination of the following forms:

                           (1)      A lump sum;

                           (2) Approximately equal  installments,  as elected by
                  the Employer in Adoption  Agreement Section 6.06, over a fixed
                  reasonable  period of time, not exceeding the life  expectancy
                  of the  Participant,  or the  joint  life  and  last  survivor
                  expectancy of the Participant and his Beneficiary,  subject to
                  the same provisions of Section 6.06(a)(2), above.

                           (3) A "Straight Life Annuity,"  which is an immediate
                  life annuity for the Participant which is purchasable with the
                  Participant's Nonforfeitable Account Balance; or

                           (4) A "Qualified  Joint and Survivor  Annuity," which
                  is  an  immediate   annuity  which  is  purchasable  with  the
                  Participant's   Nonforfeitable   Account   Balance  and  which
                  provides a life  annuity  for the  Participant  and a survivor
                  annuity  payable for the remaining  life of the  Participant's
                  surviving spouse equal to fifty percent (50%) of the amount of
                  the  annuity  payable  during  the  life  of the  Participant.
                  However,  the  Participant  may  elect to  receive  a  smaller
                  annuity benefit with continuation of payments to the spouse in
                  an amount equal to  seventy-five  percent (75%) or one hundred
                  percent (100%) of the amount of the annuity payable during the
                  life of the Participant.

                           (5) Except as required for married Participants,  the
                  Employer  may expand or limit  these  options in the  Adoption
                  Agreement.

         Payments to be made to a married  Participant shall be in the form of a
         Qualified  Joint and  Survivor  Annuity  (option (4) above)  unless the
         Participant  elects  otherwise and obtains spousal consent  pursuant to
         Section 6.13. Payments to be made to an unmarried  Participant shall be
         in the form of a  Straight  Life  Annuity  (option  (3)  above)  unless

                                       69
<PAGE>

         otherwise  elected by the  Participant.  The  Trustee  may  satisfy the
         Plan's  obligation  to pay  benefits  in the  form of a  Straight  Life
         Annuity or a Qualified Joint and Survivor  Annuity through the purchase
         of a Nontransferable  Annuity Contract or other similar contract from a
         life  insurance  company whose products are qualified to be sold in the
         state  in which  the  Employer  has its  principal  place of  business;
         provided  that any such annuity  otherwise  complies  with the terms of
         this Plan.

         6.07  DISTRIBUTIONS  UPON DEATH - PRIOR TO ANNUITY  STARTING DATE. Upon
               -----------------------------------------------------------
the  death  of a  Participant  prior  to  his  Annuity  Starting  Date,  if  his
Nonforfeitable Account Balance exceeds $3,500, the Participant's Account Balance
shall be paid:

                  (a) If the  Employer  elects  in its  Adoption  Agreement  the
         provisions of Section 6.06(a) (no survivor annuities provided):

                           (1) If the Participant was married on the date of his
                  death for a period of at least one (1) year, if such provision
                  is elected by the Employer in its Adoption  Agreement  Section
                  6.06, the  Participant's  Account Balance shall be paid to his
                  spouse, in one of the optional forms of payment, as elected by
                  the  Participant (or if no election has been made prior to the
                  Participant's death, by his spouse); or

                           (2)  If  the  Participant  was  not  married,  or not
                  married  for a  period  of at  least  one  (1)  year  if  such
                  provision is elected by the Employer in its Adoption Agreement
                  Section 6.06, the Participant's  Account Balance shall be paid
                  to a Beneficiary designated by the Participant,  in one of the
                  optional forms of payment, as elected by Participant (or if no
                  election has been made prior to the  Participant's  death,  by
                  such Beneficiary).

                  (b) If the  Employer  elects  in its  Adoption  Agreement  the
         provisions of Section 6.06(b) (survivor annuities provided):

                           (1) If the Participant was married on the date of his
                  death,  for a  period  of at  least  one  (1)  year,  if  such
                  provision is elected by the Employer in its Adoption Agreement
                  Section 6.06, the Participant's  Account Balance shall be paid
                  to  his  spouse  in  the  form  of a  Qualified  Preretirement

                                       70
<PAGE>

                  Survivor  Annuity,  or with the  consent of the  spouse  given
                  before  or  after  the  Participant's  death,  in  one  of the
                  optional forms of payment. A "Qualified Preretirement Survivor
                  Annuity"  is an  annuity  which is  purchasable  with at least
                  fifty  percent  (50%)  of  the  Participant's   Nonforfeitable
                  Account   Balance   (determined   as  of  the   date   of  the
                  Participant's  death) and which is payable for the life of the
                  Participant's surviving spouse; or

                           (2)  If  the  Participant  was  not  married,  or not
                  married  for a  period  of at  least  one  (1)  year,  if such
                  provision is elected by the Employer in its Adoption Agreement
                  Section 6.06, the Participant's  Account Balance shall be paid
                  to a Beneficiary designated by the Participant,  in one of the
                  other optional forms of payment, as elected by Participant (or
                  if no election has been made prior to the Participant's death,
                  by such Beneficiary).

         The  Employer  shall  elect in Adoption  Agreement  Section  6.07,  the
         actuarial  equivalence   percentage  of  the  Qualified   Preretirement
         Survivor  Annuity.  Any amounts not required to be  distributed  in the
         form above shall be distributed pursuant to the Participant's election,
         or, if no such  election  was made,  pursuant  to the  election  of the
         spouse.

                  (c)  Payments  under  this  Section  6.07  shall  be made  (or
         commence)   within  a   reasonable   period  of  time   following   the
         Participant's  death,  unless the Beneficiary elects otherwise with the
         consent of the Plan Administrator.

         6.08  DISTRIBUTIONS UPON DEATH - AFTER ANNUITY STARTING DATE.
               ------------------------------------------------------

                  (a) In the  event  of the  death  of a  Participant  prior  to
         distribution to him of all of his Nonforfeitable  Account Balance,  but
         following his Annuity  Starting Date, and if distribution is being made
         in  a  non-annuity  form,  then  the  Nonforfeitable   Account  Balance
         remaining  to the  credit  of the  Participant  shall  be  paid  to the
         Beneficiary  in the form  selected by the  Participant,  subject to the
         restrictions of Section 6.18.

                  (b)  Notwithstanding  any election under this Section 6.08(b),
         the provisions of Sections 6.06(b) and 6.07(b) shall apply:

                                       71
<PAGE>

                           (1) To a Participant's  Account Balance  attributable
                  to a plan from which this Plan is a transferee plan within the
                  meaning of Code section 401(a)(11)(B)(III); and

                           (2) If  this  Plan  was at one  time  subject  to the
                  survivor annuity rules, and was later amended in a permissible
                  manner  to  elect  the  provisions  of  Sections  6.06(a)  and
                  6.07(a), to the Participant's Account Balances as of the later
                  of (i) the date of the  amendment,  or (ii) the effective date
                  of the amendment.

                  The Plan Administrator shall establish  segregated Accounts as
         necessary,  under the  procedures  of  Section  3.04,  to carry out the
         provisions of this Section 6.08(b).

         6.09  BENEFIT PAYMENT ELECTIONS.
               -------------------------

                  (a) Not  earlier  than  thirty  (30) days but not  later  than
         ninety (90) days before a Participant's Annuity Starting Date, the Plan
         Administrator  must provide a benefit  notice to a  Participant  who is
         eligible  to make an  election  under this  Section  6.09.  The benefit
         notice must explain the optional forms of benefit  available  under the
         Plan,  including  the material  features  and relative  values of those
         options,  and the Participant's  right to defer  distribution  until he
         attains the later of Normal Retirement Age or age sixty-two (62).

                  (b)  If  a  Participant  or  Beneficiary   makes  an  election
         prescribed by this Section 6.09, the Plan Administrator will direct the
         Trustee to distribute the Participant's  Nonforfeitable Account Balance
         in accordance with that election,  subject to the other requirements of
         this Article VI. The  Participant or Beneficiary  must make an election
         under  this  Section  6.09  by  filing  his  election   with  the  Plan
         Administrator  at any time before the Trustee  otherwise would commence
         to  pay  a  Participant's  Account  Balance,  in  accordance  with  the
         requirements of this Article VI.

                  (c) If a  distribution  is one to  which  Code  sectionsection
         401(a)(11) and 417 do not apply,  such  distribution  may commence less
         than 30 days after the notice required under Section  1.411(a)-11(C) of
         the Income Tax Regulations is given, provided that:

                                       72
<PAGE>

                           (1)  the  Plan  Administrator   clearly  informs  the
                  Participant that the Participant has a right to a period of at
                  least 30 days  after  receiving  the  notice to  consider  the
                  decision of whether or not to elect a  distribution  (and,  if
                  applicable, a particular distribution option); and

                           (2) the  Participant,  after  receiving  the  notice,
                  affirmatively elects a distribution.

         6.10  DIRECT ROLLOVER TO ANOTHER QUALIFIED PLAN.
               -----------------------------------------

                  (a) This  Section  6.10  applies to  distributions  made on or
         after January 1, 1993. Notwithstanding any provision of the Plan to the
         contrary that would otherwise limit a Distributee's election under this
         Section,  a  Distributee  may  elect,  at the  time  and in the  manner
         prescribed  by the  Plan  Administrator,  to  have  any  portion  of an
         Eligible Rollover  Distribution paid directly to an Eligible Retirement
         Plan specified by the Distributee in a direct rollover.

                  (b)  The following definitions apply to this Section 6.10:

                           (1)  "Eligible  Rollover  Distribution".  An Eligible
                  Rollover  Distribution  is  any  distribution  of  all  or any
                  portion  of the  balance  to the  credit  of the  Distributee,
                  except  that  an  Eligible  Rollover   Distribution  does  not
                  include:   any  distribution  that  is  one  of  a  series  of
                  substantially  equal  periodic  payments (not less  frequently
                  than annually)  made for the life (or life  expectancy) of the
                  Distributee or the joint lives (or joint life expectancies) of
                  the Distributee and the Distributee's  Designated Beneficiary,
                  or for a  specified  period  of ten (10)  years  or more;  any
                  distribution to the extent such distribution is required under
                  Section  401(a)(9)  of  the  Code;  and  the  portion  of  any
                  distribution   that  is  not   includible   in  gross   income
                  (determined without regard to the exclusion for net unrealized
                  appreciation with respect to employer securities).

                           (2)   "Eligible   Retirement   Plan".   An   Eligible
                  Retirement Plan is an individual  retirement account described
                  in  Section  408(a)  of the  Code,  an  individual  retirement
                  annuity  described in Section  408(b) of the Code,  an annuity
                  plan  described in Section  403(a) of the Code, or a qualified
                  trust  described in Section  401(a) of the Code,  that accepts

                                       73
<PAGE>

                  the Distributee's Eligible Rollover Distribution.  However, in
                  the case of an Eligible Rollover Distribution to the surviving
                  spouse,   an  Eligible   Retirement   Plan  is  an  individual
                  retirement account or individual retirement annuity.

                           (2) "Distributee". A Distributee includes an Employee
                  or former  Employee.  In addition,  the  Employee's  or former
                  Employee's  surviving  spouse  and the  Employee's  or  former
                  Employee's  spouse or former spouse who is the alternate payee
                  under a  Qualified  Domestic  Relations  Order,  as defined in
                  Section  414(p) of the Code, are  Distributees  with regard to
                  the interest of the spouse or former spouse.

                           (4) "Direct Rollover". A Direct Rollover is a payment
                  by the Plan to the Eligible  Retirement  Plan specified by the
                  Distributee.

                  (c) For distributions  made prior to January 1, 1993, the Plan
         Administrator   may  direct  the   Trustee  to  transfer  as  a  direct
         trustee-to-trustee  transfer the balance to the credit of a Participant
         to the trustee of another  qualified  plan, if the trustee of the other
         plan is authorized to accept such a transfer.

         6.11 DISTRIBUTION RESTRICTIONS.  Notwithstanding anything herein to the
              -------------------------
contrary, the events giving rise to a distribution pursuant to the provisions of
Sections   6.02  through  6.05   applicable   to  the   Participant's   Deferral
Contributions Account, Qualified Nonelective Contributions Account and Qualified
Matching  Contributions  Account must satisfy the  distribution  restrictions of
this  Section  6.11.  "Distribution  restrictions"  means the  Employee  may not
receive a  distribution  of the specified  contributions  (nor earnings on those
contributions)  except in the event of (1) the Participant's death,  disability,
termination  of employment  or attainment of age 59 1/2, (2) financial  hardship
satisfying the  requirements of Code section 401(k) and the applicable  Treasury
regulations,  (3) a  plan  termination,  without  establishment  of a  successor
defined  contribution plan (other than an ESOP), (4) a sale of substantially all
of the assets (within the meaning of Code section  401(d)(2)) used in a trade or
business,  but only to an employee who continues employment with the corporation
acquiring  those  assets,  or (5) a sale by a  corporation  of its interest in a
subsidiary  (within  the  meaning  of Code  section  409(d)(3)),  but only to an
employee who continues employment with the subsidiary.  For Plan Years beginning
after December 31, 1988, a  distribution  on account of financial  hardship,  as

                                       74
<PAGE>

directed in clause (2), may not include earnings on Elective  Deferrals credited
as of a date  later  than  December  31,  1988,  and may not  include  Qualified
Matching Contributions and Qualified Nonelective Contributions, nor any earnings
on such contributions,  irrespective of when credited. A distribution  described
in clauses  (3),  (4) or (5), if made after March 31,  1988,  must be a lump sum
distribution, as required under Code section 401(k)(10).

         6.12  TRANSITIONAL  ELECTIONS.  Notwithstanding  the provisions of this
               -----------------------
Article VI, if the Participant (or  Beneficiary)  signed a written  distribution
designation prior to January 1, 1984, the Plan Administrator must distribute the
Participant's   Nonforfeitable   Account   Balance  in   accordance   with  that
designation,   subject  however,  to  the  survivor  annuity  requirements,   if
applicable,  of this  Article VI. This Section 6.12 does not apply to a pre-1985
distribution  designation,  and the Plan Administrator will not comply with that
designation,  if any of the following  applies:  (1) the method of  distribution
would have  disqualified  the Plan under Code section  401(a)(9) as in effect on
December 31, 1983;  (2) the  Participant  did not have an Account  Balance as of
December 31, 1983; (3) the distribution  designation does not specify the timing
and form of the distribution and the death Beneficiaries (in order of priority);
(4) the  substitution  of a  Beneficiary  modifies  the  payment  period  of the
distribution;  or (5) the Participant (or  Beneficiary)  modifies or revokes the
distribution  designation.   In  the  event  of  a  revocation,  the  Plan  must
distribute, no later than December 31 of the calendar year following the year of
revocation,  the  amount  which the  Participant  (or  Beneficiary)  would  have
received  under  Section 6.17 if the  distribution  designation  had not been in
effect.  The Plan  Administrator  will apply this Section 6.12 to rollovers  and
transfers  in  accordance  with Part J of the Code  section  401(a)(9)  Treasury
regulations.

         6.13  ELECTION TO WAIVE PAYMENT METHOD.
               --------------------------------

                  (a) Either or both of the Qualified Joint and Survivor Annuity
         or the  Qualified  Preretirement  Survivor  Annuity  may be  waived  by
         election of the Participant if the following conditions are satisfied:

                           (1) The  Participant's  spouse consents in writing to
                  such  election,  such consent  acknowledges  the effect of the
                  election (including naming the specific nonspouse  beneficiary
                  and, in the case of a Qualified  Joint and  Survivor  Annuity,

                                       75
<PAGE>

                  the optional form of benefit being selected), and such consent
                  is witnessed by a Plan representative or acknowledged before a
                  notary public; or

                           (2) It is established to the satisfaction of the Plan
                  Administrator  that such spouse's  consent  cannot be obtained
                  because  there is no  spouse,  because  the  spouse  cannot be
                  located,  or  because  of other  circumstances  prescribed  in
                  Treasury regulations.

                  (b) In the case of a  Qualified  Joint and  Survivor  Annuity,
         such  election is made during the ninety (90) day period  ending on the
         Participant's Annuity Starting Date.

                  (c) In the case of a Qualified Preretirement Survivor Annuity,
         such  election  is made  within  the  period  ending on the date of the
         Participant's  death and beginning on the first day of the Plan Year in
         which the Participant attains age thirty-five (35) or, if earlier,  the
         date on which the Participant's employment terminates.  Notwithstanding
         the  foregoing,  an  earlier  election  will be valid  if the  required
         explanation is given, however, such election shall become null and void
         as of the first day of the Plan Year in which the  Participant  attains
         age thirty-five (35).

         The Participant  shall have the right to revoke any election made under
this Section 6.13 at any time within the respective  election periods  specified
in subparagraphs (c) and (e) above. Any consent given by a Participant's  spouse
shall be irrevocable.

         6.14  NOTICE REQUIREMENTS.
               -------------------

                  (a) In the case of a Qualified Joint and Survivor Annuity, the
         Participant  shall receive,  not earlier than thirty (30) days, but not
         later than ninety (90) days, before the Participant's  Annuity Starting
         Date (and consistent with Treasury regulations),  a written explanation
         describing:

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

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

                           (3) the rights of the Participant's  spouse regarding
                  the waiver election; and

                                       76
<PAGE>

                           (4) the  Participant's  right to make, and the effect
                  of, a revocation of a waiver election. The Plan does not limit
                  the number of times the Participant may revoke a waiver of the
                  Qualified  Joint and  Survivor  Annuity  or make a new  waiver
                  during the election period.

                  (b) In the case of a Qualified Preretirement Survivor Annuity,
         a  married  Participant  shall  receive a  written  explanation  of the
         Qualified  Preretirement  Survivor  Annuity  comparable  to that of the
         Qualified Joint and Survivor  Annuity  described above. The explanation
         must be provided to each married  Participant by the Plan Administrator
         within the following  period which ends last: (1) the period  beginning
         on the first day of the Plan Year in which the Participant  attains age
         thirty-two  (32) and ending  with the close of the Plan Year  preceding
         the Plan Year in which the Participant  attains age  thirty-five  (35);
         (2) a reasonable period ending after an Employee becomes a Participant;
         (3) a reasonable  period ending after the survivor  annuity rules first
         become applicable to the Participant; or (4) a reasonable period ending
         after a fully  subsidized  preretirement  survivor  annuity  no  longer
         satisfies the requirements for a fully subsidized benefit. A reasonable
         period  described in clauses (2), (3) and (4) is the end of the two (2)
         year  period  beginning  one (1) year prior to the date the  applicable
         event  occurs  and  ending  one  (1)  year  after  that  date.  If  the
         Participant  terminates  employment  before  the Plan  Year in which he
         attains age  thirty-five  (35),  clauses  (1),  (2), (3) and (4) do not
         apply and the Plan Administrator  must provide the written  explanation
         within the two (2) year period beginning one (1) year before and ending
         one (1) year after the termination of employment. If such a Participant
         thereafter  returns to  employment  with the Employer,  the  applicable
         period for such Participant  shall be  redetermined.  The Plan does not
         limit the  number of times the  Participant  may revoke a waiver of the
         Qualified  Preretirement  Survivor  Annuity or make a new waiver during
         the election period.

         6.15  ADVANCE  PAYMENT OF  BENEFITS.  Subject to the  survivor  annuity
               -----------------------------
requirements  of this  Article  VI,  the  Employer  may  elect  in its  Adoption
Agreement  Section 6.15 to permit  terminated  Participants or  Beneficiaries of
deceased  Participants,  or both, to elect to receive  distribution  of all or a
portion of the Participant's Nonforfeitable Account Balance under the Plan prior
to the distribution date otherwise  selected by the Employer with respect to the

                                       77
<PAGE>

event giving rise to the Participant's Separation from Service,  pursuant to the
provisions  of this  Article VI. If the Employer  makes such an  election,  each
Participant  (or  Beneficiary,  if applicable) may elect, in the form and manner
prescribed by the Plan  Administrator,  and in accordance with the corresponding
Sections  6.01  through  6.08,  to receive  distribution  of the  Nonforfeitable
Account Balance as soon as administratively possible following the Participant's
termination of employment. The Nonforfeitable Account Balance shall be valued as
of the immediately  preceding  Adjustment  Date, or other more recent  Valuation
Date,   without  any  earnings  or  losses  thereon.   If  the  Participant  (or
Beneficiary,  if applicable) elects an advance  distribution,  any allocation of
the  Employer's  contribution  which the  Participant  may  subsequently  become
entitled to receive in accordance  with Article IV shall be  distributed to such
Participant,  or his Beneficiary, in accordance with the remaining provisions of
this  Article VI.  Provided,  however,  such  Participant  or  Beneficiary  must
acknowledge  in  writing,  in  the  form  and  manner  prescribed  by  the  Plan
Administrator, that he may be entitled to receive an additional payment from the
Plan for the year of termination,  in accordance with the allocation  provisions
of  Article  IV,  and must  agree to waive any  potential  claims he may have on
account of possible adverse tax consequences.

         6.16  REQUIRED BEGINNING DATE.
               -----------------------

                  (a) If any distribution commencement date described under this
         Section 6.16,  either by Plan provision or by Participant  election (or
         nonelection),  is later than the Participant's Required Beginning Date,
         the  Plan  Administrator  instead  must  direct  the  Trustee  to  make
         distribution on the Participant's  Required  Beginning Date, subject to
         the transitional election, if applicable, under Section 6.12.

                  (b)  "Required Beginning Date" shall mean:

                           (1) General rule.  The Required  Beginning  Date of a
                  Participant  is the  first day of April of the  calendar  year
                  following the calendar year in which the  Participant  attains
                  age seventy and one-half (70 1/2).

                           (2) Transitional  rules. The Required  Beginning Date
                  of a Participant who attains age seventy and one-half (70 1/2)
                  before January 1, 1988, shall be determined in accordance with
                  (A) or (B) below:

                                       78
<PAGE>

                                    (A)  Non-five   percent  (5%)  owners.   The
                           Required Beginning Date of a Participant who is not a
                           five  percent (5%) owner is the first day of April of
                           the calendar  year  following  the  calendar  year in
                           which  the  later  of   termination   of  employment,
                           retirement  or attainment of age seventy and one-half
                           (70 1/2) occurs.

                                    (B) Five percent  (5%) owners.  The Required
                           Beginning Date of a Participant who is a five percent
                           (5%) owner during any year  beginning  after December
                           31,  1979,  is the first day of April  following  the
                           later of:

                                            (i)  the  calendar year in which the
                                    Participant attains age seventy and one-half
                                    (70 1/2); or

                                            (ii)  the  earlier  of the  calendar
                                    year with or within which ends the Plan Year
                                    in  which  the  Participant  becomes  a five
                                    percent (5%) owner,  or the calendar year in
                                    which the Participant terminates employment.

                           The Required  Beginning Date of a Participant  who is
                           not a five percent (5%) owner who attains age seventy
                           and one-half  (70 1/2) during  1988,  and who has not
                           retired as of January 1, 1989, is April 1, 1990.

                                             (iii) Five  percent  (5%) owner.  A
                                    Participant  is  treated  as a five  percent
                                    (5%) owner for  purposes of this  Article if
                                    such  Participant  is a  five  percent  (5%)
                                    owner  as  defined  in Code  section  416(i)
                                    (determined in accordance  with Code section
                                    416 but  without  regard to whether the Plan
                                    is  top-heavy)  at any time  during the Plan
                                    Year ending with or within the calendar year
                                    in which such owners  attains age  sixty-six
                                    and one-half (66 1/2) or any subsequent Plan
                                    Year.

                                            (iv) Once  distributions  have begun
                                    to a five  percent  (5%)  owner  under  this
                                    Article,    they   must   continue   to   be
                                    distributed,  even if the Participant ceases
                                    to  be  a  five  percent  (5%)  owner  in  a
                                    subsequent year.

                                       79
<PAGE>

                  (c) A mandatory  distribution  at the  Participant's  Required
         Beginning  Date will be in a lump sum (or,  if  applicable,  the normal
         annuity form of distribution required under Section 6.06(b)) unless the
         Participant,  pursuant to the  provisions  of this  Article VI, makes a
         valid   election   to  receive   an   alternative   form  of   payment.
         Notwithstanding  the previous  sentence,  as of the first  distribution
         calendar  year,  distributions,  if not made in a single lump sum,  may
         only  be made  over  one of the  following  periods  (or a  combination
         thereof):

                           (1)  the life of the Participant,

                           (2) the  life  of the  Participant  and a  designated
                  Beneficiary,

                           (3) a period  certain not  extending  beyond the life
                  expectancy of the Participant, or

                           (4) a period  certain not extending  beyond the joint
                  and  last  survivor   expectancy  of  the  Participant  and  a
                  Beneficiary.

         6.17  LIMITATIONS ON DISTRIBUTIONS - INCIDENTAL BENEFIT RULE.
               ------------------------------------------------------

                  (a) The  Participant  shall not select any form of benefit for
         which the present value of the retirement  benefits expected to be paid
         solely to the  Participant  does not exceed fifty  percent (50%) of the
         present  value  of  the  total  retirement   benefits  payable  to  the
         Participant and his Beneficiaries. This rule is subject to an exception
         for distributions made consistent with subparagraph  (b)(2) below where
         the designated Beneficiary is the Participant's spouse.

                  (b) Subject to subparagraph (a) above, the Participant may not
         select a method of payment unless under that method  distribution  will
         be made:

                           (1) Over a period  not  extending  beyond the life or
                  life expectancy of the Participant; or

                           (2) Over a period not  extending  beyond the lives or
                  life   expectancies  of  the  Participant  and  an  individual
                  designated Beneficiary.

                                       80
<PAGE>

                  Where the designated  Beneficiary is the Participant's spouse,
         the  life  expectancies  of  the  Participant  and  his  spouse  may be
         recalculated on an annual basis and payments adjusted accordingly.

         6.18  RESTRICTIONS ON PAYMENTS AFTER DEATH OF PARTICIPANT.
               ---------------------------------------------------

                  (a)  Notwithstanding  any election a Participant  may make, in
         the event of the death of such Participant after  installment  payments
         have commenced to him (or the death of his spouse if  distribution  has
         commenced to such spouse), the Participant's  remaining Account Balance
         must be  distributed  to the  Participant's  Beneficiaries  at least as
         rapidly as under the method of  distribution  that was in effect at the
         date of his death.

                  (b) If a Participant dies before receiving any  distributions,
         his Account Balance must be distributed within five (5) years after his
         death;  provided  that  the  five (5)  year  requirement  shall  not be
         applied: (1) where his spouse has survived him, benefits are payable to
         the spouse, and distributions begin no later than the date on which the
         Participant  would have reached age seventy and  one-half (70 1/2);  or
         (2) where the Account  Balance is payable to a  designated  Beneficiary
         over a  period  not  extending  beyond  the  life  expectancy  of  such
         Beneficiary  the  distributions  begin no later than one (1) year after
         the Participant's death or such later date as IRS regulations permit.

         6.19 CODE SECTION 401(a)(9).  The provisions of Article VI are intended
              ----------------------
to comply with Code section 401(a)(9) and the regulations thereunder,  including
the rules on  incidental  death  benefits.  Sections  6.16 through 6.18 and Code
section 401(a)(9) apply to all distributions from the Plan,  notwithstanding any
inconsistent provision or election otherwise permissible under this Article VI.

                                       81
<PAGE>

                                   ARTICLE VII
                              WITHDRAWALS AND LOANS

         7.01  EMPLOYEE CONTRIBUTIONS - WITHDRAWAL/DISTRIBUTION
               ------------------------------------------------

                  (a) A  Participant,  by  giving  prior  written  notice to the
         Trustee,  may  withdraw  all or any part of the  value  of his  Account
         Balance  derived  from  his  Employee   Contributions  subject  to  the
         requirements   of  this   Article  VII  and  further   subject  to  the
         requirements  of Section 3.02 with respect to Mandatory  Contributions.
         No  forfeiture  will  occur  solely  as a  result  of  a  Participant's
         withdrawal of his Employee Contributions to the Plan. A distribution of
         Employee   Contributions   must  comply  with  the   survivor   annuity
         requirements  described in Article VI, if those  requirements  apply to
         the  Participant.  A  Participant  may exercise  his right,  if any, to
         withdraw  the value of his Account  Balance  derived  from his Employee
         Contributions not more often than annually, as of the date specified in
         the  Employer's  Adoption  Agreement  Section  7.01.  The  Trustee,  in
         accordance  with  the  direction  of  the  Plan   Administrator,   will
         distribute a Participant's  unwithdrawn Account Balance attributable to
         his Employee Contributions in accordance with the provisions of Article
         VI applicable to the distribution of the  Participant's  Nonforfeitable
         Account Balance,  including, but not limited to, the notice and consent
         requirements of Code sectionsection 417, if applicable,  and 411(a)(11)
         and the regulations  thereunder.  If the  Participant  elects to make a
         withdrawal of his Employee  Contributions  which are voluntary Employee
         Contributions,  he is prohibited from making further voluntary Employee
         Contributions to the Plan for a period of one (1) year from the date of
         withdrawal.

                  (b)  The   Employer   may   prescribe   special   distribution
         restrictions  under Adoption Agreement Section 3.02 which will apply to
         Mandatory  Contributions  prior  to the  Participant's  termination  of
         employment.  Following a Participant's  termination of employment,  the
         general distribution provisions of Article VI apply to the distribution
         of the Participant's Mandatory Contributions.

                  (c) Prior to  January  1, 1987,  withdrawals  were  limited to
         voluntary Employee  contributions and treated as a nontaxable return of
         basis. Effective January 1, 1987, any withdrawals shall consist of both
         voluntary Employee Contributions and any earnings thereon. The pro rata

                                       82

<PAGE>

         basis  recovery  rules of section 72(e) shall apply to  withdrawals  of
         voluntary Employee Contributions after December 31, 1986. In accordance
         with  the  grandfather  rule  of Code  section  72(e)(8)(D),  which  is
         available  if the Plan  permitted  withdrawals  of  voluntary  Employee
         Contributions  on  May 5,  1986,  withdrawals  shall  be  treated  as a
         nontaxable  return  of  basis  up to the  amount  of the  Participant's
         pre-1987 Employee  Contributions  (those made after December 31, 1986),
         the amount of each withdrawal  treated as a nontaxable  return of basis
         shall be determined by  multiplying  the amount of the  withdrawal by a
         fraction,  the numerator of which is the Participant's  total amount of
         voluntary Employee  Contributions,  and the denominator of which is the
         total  amount in his  voluntary  Employee  Contributions  Account.  The
         remainder of the  withdrawal  shall be treated as taxable income to the
         Participant  for the  taxable  year of the  Participant  in  which  the
         withdrawal was made.

         7.02  HARDSHIP  DISTRIBUTIONS  - GENERAL  PROVISIONS.  The Employer may
               ----------------------------------------------

elect in its Adoption Agreement Section 7.02 to permit  distributions on account
of  a   Participant's   immediate  and  heavy   financial  need.  Such  hardship
distributions  may be made to  either  an  active  Participant  or a  terminated
Participant not currently  eligible to receive a distribution under the Plan, or
both, as elected by the Employer in its Adoption  Agreement  Section  7.02.  The
distribution  shall be made from the Participant's  Accounts which are specified
by the Employer in its Adoption  Agreement 7.02,  provided,  however,a  hardship
distribution  option may not apply to the  Participant's  Qualified  Nonelective
Contributions  Account  or  Qualified  Matching  Contributions  Account.  Such a
withdrawal shall be granted only if the Plan  Administrator  determines that the
purpose of the  withdrawal is to meet an immediate and heavy  financial  need of
the Participant for which there is a lack of resources reasonably available, and
the amount of the withdrawal does not exceed the financial  need,  including any
amounts  necessary  to pay any  federal,  state or local income tax or penalties
reasonably  anticipated  to result from such  distribution.  Distributions  made
pursuant to this Section 7.02 shall be made as soon as administratively possible
after the date of  distribution  selected in the Employer's  Adoption  Agreement
Section 7.02.  Accounts  shall be adjusted as of the  Adjustment  Date, or other
Valuation  Date,  on or before  the  withdrawal  unless  the Plan  Administrator
elects, in its discretion, to have a special valuation, which will then control.
Any  distribution  made  pursuant to this Section 7.02 shall be made in a manner
which is consistent with and satisfies the provisions of Article VI,  including,

                                       83
<PAGE>

but not limited to, the notice and consent  requirements of Code  sectionsection
417, if applicable, and 411(a)(11) and the regulations thereunder.

         7.03 HARDSHIP  DISTRIBUTIONS  - SAFE HARBOR.  If the Employer elects to
              --------------------------------------
provide  the  safe  harbor  hardship   distribution   requirements  provided  in
Regulations section 1.401(k)-1(d)(2) by so designating in the Adoption Agreement
Section  7.02,  this  Section  7.03 shall  govern  hardship  distributions.  The
Employer may select a method of administering  hardship distributions other than
the safe  harbor  which  shall be  designated  in an  addendum  to its  Adoption
Agreement, numbered Section 7.02. If the Employer does not elect the safe harbor
requirements,  then hardship  distributions shall be administered and individual
determinations  of financial  hardship made pursuant to a hardship  distribution
policy  adopted by the  Employer.  If the safe harbor  hardship  provisions  are
selected,  the Plan Administrator,  in making its determination of the existence
of a heavy and immediate  financial  need for which there is a lack of resources
reasonably  available,  may reasonably rely on the Participant's  representation
that such need cannot be met by (1) insurance; (2) reasonable liquidation of the
assets of the Participant or his spouse and assets held by their children to the
extent  not  protected  by the  Uniform  Transfers  to  Minors  Act;  (3)  other
distributions  or loans from any other plan  maintained  by the  Employer or any
prior employer of the  Participant  or by a loan from any  commercial  source on
reasonable  terms.  A hardship  withdrawal  shall not be denied solely because a
Participant  does not  receive  a  nontaxable  loan  pursuant  to  Section  7.05
(provided the Employer permits loans in its Adoption  Agreement Section 7.05) if
the loan is not made on account  of a  determination  by the Plan  Administrator
that the loan cannot be adequately  secured,  or if the loan would  increase the
amount of the financial need. Any Participant  receiving a hardship distribution
shall be ineligible to make further deferrals or Participant contributions under
this Plan or any other plan  maintained  by the Employer  until the first day of
the Plan Year following the expiration of twelve (12) months  following the date
of the hardship distribution.  For the taxable year of the Participant following
the taxable  year of the  hardship  distribution,  such  Participant's  elective
contributions  under any Plan  maintained  by the  Employer  may not  exceed the
applicable limit under Code section 402(g), less the amount of the Participant's
elective contributions for the taxable year of the hardship distribution.

         "Financial hardship" under this Section 7.03 shall mean a Participant's
immediate  and heavy  financial  need that  cannot be met from other  reasonably
available resources and is caused by one or more of the following:

                                       84
<PAGE>

                  (a)  Medical  expenses  incurred  as the result of accident or
         illness incurred by the  Participant,  or the  Participant's  spouse or
         dependents, or the cost of such medical care if a hardship distribution
         is necessary to obtain medical care;

                  (b)  The  cost  of  purchasing  or  preserving  the  principal
         residence of the Participant, excluding mortgage payments;

                  (c) Payment of tuition and  related  educational  fees for the
         next twelve (12) months of post-secondary education for the Participant
         or the Participant's spouse, children, or dependents;

                  (d) The cost of preventing the Participant's eviction from, or
         foreclosure on the mortgage of, the Participant's  principal residence;
         or

                  (e) Other unexpected or unusual expenses  creating a financial
         need,  as  provided  in  published  revenue  rulings,  notices or other
         documents of general applicability.

         7.04 IN-SERVICE  DISTRIBUTIONS.  Although the purpose of the Plan is to
              -------------------------
provide  for  each  Participant's  retirement,  the  Employer  may  elect in its
Adoption  Agreement  Section  7.04  to  permit  a  Participant,  subject  to the
limitations in the Employer's Adoption Agreement, to withdraw all or any portion
of his Nonforfeitable  Account Balance prior to his Separation from Service. Any
such withdrawal shall be made as soon as administratively possible following the
date of  distribution  selected by the Employer in its Adoption  Agreement.  The
application  shall include evidence of the  Participant's age and a statement of
any other facts required by the Plan Administrator.  The Trustee will distribute
the balance of the  Participant's  Account Balances not distributed  pursuant to
his  election(s) in accordance  with the other  distribution  provisions of this
Plan.  Any  distribution  made  pursuant to this Section 7.04 shall be made in a
manner which is  consistent  with and  satisfies  the  provisions of Article VI,
including,  but not  limited  to, the notice and  consent  requirements  of Code
sectionsection   417,  if  applicable,   and  411(a)(11)  and  the   regulations
thereunder.

         7.05  LOANS.
               -----

                  (a) If the  Employer  so  elects  in  its  Adoption  Agreement
         Section 7.05, the Trustee is specifically authorized to make loans on a
         nondiscriminatory  basis in accordance with the loan policy established

                                       85
<PAGE>

         by the Plan Administrator,  provided: (1) the loan policy satisfies the
         requirements   of  Section  7.06;   (2)  loans  are  available  to  all
         Participants on a reasonably  equivalent basis and are not available in
         a  greater  amount  for  Highly  Compensated  Employees  than for other
         Employees;  (3) any loan is  adequately  secured and bears a reasonable
         rate  of  interest;  (4) the  loan  provides  for  repayment  within  a
         specified time; (5) the default  provisions of the note prohibit offset
         of the Participant's  Nonforfeitable  Account Balance prior to the time
         the Trustee otherwise would distribute the Participant's Nonforfeitable
         Account  Balance;  (6) the  amount of the loan does not  exceed (at the
         time the  Plan  extends  the  loan)  the  amount  of the  Participant's
         Nonforfeitable  Account Balance; and (7) the loan otherwise conforms to
         the exemption provided by Code section 4975(d)(1).

                  (b) The  Employer  shall  specify  in its  Adoption  Agreement
         Section  7.05 on whose behalf loans shall be permitted to be made under
         the  Plan.  Any  loans  made on  behalf  of  inactive  Participants  or
         Beneficiaries  shall be subject to the  provisions of this Section 7.05
         and Section 7.06. If the survivor  annuity  requirements  of Article VI
         apply to the Participant, the Participant may not pledge any portion of
         his Account  Balance as security for a loan made after August 18, 1985,
         unless, within the ninety (90) day period ending on the date the pledge
         becomes  effective,  the  Participant's  spouse, if any, consents (in a
         manner described in Section 7.06 other than the requirement relating to
         the consent of a  subsequent  spouse) to the  security  or, by separate
         consent, to an increase in the amount of security.

                  (c) If the Employer is an unincorporated  trade or business, a
         Participant  who is an  Owner-Employee  may not receive a loan from the
         Plan,  unless he has obtained a prohibited  transaction  exemption from
         the  Department  of Labor.  If the  Employer is an "S  Corporation,"  a
         Participant who is a  shareholder-employee  (an employee or an officer)
         who, at any time during the  Employer's  Taxable  Year,  owns more than
         five percent (5%), either directly or by attribution under Code section
         318(a)(1),  of the Employer's  outstanding stock may not receive a loan
         from  the  Plan,  unless  he  has  obtained  a  prohibited  transaction
         exemption  from the  Department  of Labor.  If the  Employer  is not an
         unincorporated  trade or business nor an "S Corporation,"  this Section
         7.05 does not  impose  any  restrictions  on the class of  Participants
         eligible  for a loan  from the Plan.  Subject  to the  requirements  of

                                       86

<PAGE>

         Sections 6.07 and 6.08, the Plan Administrator will determine the death
         benefit by reducing the Participant's Nonforfeitable Account Balance by
         any security interest the Plan has against the  Nonforfeitable  Account
         Balance by reason of an outstanding Participant loan.

         7.06.  LOAN  POLICY.  If the Plan  Administrator  adopts a loan policy,
pursuant to subparagraph  10.02(j),  the loan policy must be a written  document
and must  include:  (a) the  identity of the person or positions  authorized  to
administer the  Participant  loan program;  (b) a procedure for applying for the
loan; (c) the criteria for approving or denying a loan; (d) the limitations,  if
any,  on the  types  and  amounts  of loans  available;  (e) the  procedure  for
determining a reasonable rate of interest; (f) the types of collateral which may
secure the loan; and (g) the events constituting  default and the steps the Plan
will take to preserve  Plan assets in the event of default.  This  Section  7.06
specifically incorporates a written loan policy as part of the Employer's Plan.

         7.07.  COLLATERAL  FOR LOAN.  The  Employer  may elect in its  Adoption
                --------------------
Agreement  Section  7.07  to  require  a  Participant  to  secure  a loan  using
collateral  which is in addition to a percentage  of such  Participant's  vested
Account Balance under the Plan.

                                       87
<PAGE>

                                  ARTICLE VIII
                       EMPLOYER ADMINISTRATIVE PROVISIONS

         8.01  IN GENERAL.  The Employer shall have the sole  responsibility for
               ----------
making the  contributions  provided  for under  Article IV and the  authority to
terminate  its  participation  in this Plan.  The  Employer  shall have the sole
authority  to appoint  and  remove the  Trustee  and any  Investment  Manager or
Managers  which it may elect to provide for  managing  all or any portion of the
Trust, and to appoint the Plan Administrator.

         8.02 INFORMATION TO PLAN ADMINISTRATOR.  If the Employer is not serving
              ---------------------------------
as the Plan Administrator,  the Employer shall supply current information to the
Plan  Administrator  as to the name, date of birth,  date of employment,  annual
compensation,  leaves of absence,  Years of Service and date of  termination  of
employment  of each  Employee  who is,  or who will be  eligible  to  become,  a
Participant  under the Plan,  together with any other information which the Plan
Administrator  considers  necessary.  The  Employer's  records as to the current
information the Employer  furnishes to the Plan  Administrator are conclusive as
to all persons.

         8.03 NO LIABILITY. The Employer assumes no obligation or responsibility
              ------------
to any of its  Employees,  Participants  or  Beneficiaries  for any  act of,  or
failure to act, on the part of its Plan  Administrator  (unless the  Employer is
the Plan Administrator), or the Trustee.

         8.04 INDEMNITY OF CERTAIN FIDUCIARIES.  To the extent permitted by law,
              --------------------------------
the Employer  indemnifies  and holds  harmless the Plan  Administrator,  and any
person or persons serving in the capacity of Plan Administrator,  as provided in
Section  10.01,  from and against any and all loss  resulting  from liability to
which the Plan  Administrator  may be  subjected by reason of any act or conduct
(except willful  misconduct or gross negligence) in its official capacity in the
administration of this Trust or Plan or both,  including all expenses reasonably
incurred in its defense,  in case the Employer fails to provide such defense. No
Plan  assets  may be used  for any  such  indemnification.  The  indemnification
provisions  of this  Section 8.04 do not relieve the Plan  Administrator  or any
person  serving as a Plan  Administrator  from any  liability  he may have under
ERISA for breach of a fiduciary duty.  Furthermore,  the Plan  Administrator and
the  Employer  may  execute  a  letter   agreement   further   delineating   the
indemnification  agreement of this Section 8.04,  provided the letter  agreement
must be  consistent  with  and  does  not  violate  ERISA.  The  indemnification

                                       88
<PAGE>

provisions  of this  Section  8.04  extend to the  Trustee  solely to the extent
provided by a letter agreement executed by the Trustee and the Employer.

         8.05  EMPLOYER DIRECTION OF  INVESTMENT.  The Employer has the right to
               ---------------------------------
direct the Trustee with respect to the  investment  and  reinvestment  of assets
comprising the Trust Fund only if the Trustee consents in writing to permit such
direction.  If the Trustee  consents to Employer  direction of  investment,  the
Trustee and the Employer must execute a letter  agreement as a part of this Plan
containing  such   conditions,   limitations  and  other  provisions  they  deem
appropriate  before the Trustee will follow any  Employer  direction as respects
the investment or reinvestment of any part of the Trust Fund.

         8.06 INVESTMENT FUNDS. The Employer may elect in its Adoption Agreement
              ----------------
Section  8.06  to  authorize  the use of one or more  investment  funds.  If the
Employer makes such an election,  each  Participant  shall be entitled to direct
the Trustee as to the investment and  reinvestment of the amount credited to his
Account   pursuant  to  a  policy   established   and  maintained  by  the  Plan
Administrator.  Such policy shall include, but not by way of limitation, (i) the
available  investment  fund  options;  (ii) that  portion  of the  Participant's
Account Balance, or vested Account Balance,  subject to such investment options;
(iii)  the  percentage  increments  of a  Participant's  Account  which  may  be
allocated to each available  investment  fund; and (iv) the manner and timing of
elections by Participants. Each Eligible Employee, prior to his Entry Date shall
be permitted to elect how his Account  Balance  shall be invested in  accordance
with uniform rules adopted by the Plan Administrator. If no investment direction
is  received,  the  Plan  Administrator  shall  direct  the  investment  of  the
Participant's   Account  in  a  uniform  and   nondiscriminatory   manner.  Each
Participant  may elect the  change the  manner in which his  account  balance is
being  invested  at such  time  and in such  manner  as  prescribed  by the Plan
Administrator.  This Section 8.06 specifically incorporates a written Investment
Fund Election  Policy as part of the  Employer's  Plan.  The Plan  Administrator
reserves the right to amend or modify the Policy.

         8.07  AMENDMENT TO VESTING SCHEDULE.  Though the Employer  reserves the
               -----------------------------
right to amend the vesting schedule at any time, the Plan Administrator will not
apply the amended vesting  schedule to reduce the  Nonforfeitable  percentage of
any   Participant's   Account  Balance   derived  from  Employer   contributions
(determined as of the later of the date the Employer  adopts the  amendment,  or
the  date  the  amendment  becomes  effective)  to a  percentage  less  than the
Nonforfeitable  percentage  computed  under  the  Plan  without  regard  to  the
amendment.  An amended vesting  schedule will apply to a Participant only if the

                                       89
<PAGE>

Participant  receives  credit  for at least  one Hour of  Service  after the new
schedule becomes effective. If the Employer makes a permissible amendment to the
vesting  schedule,  each Participant  having at least three (3) Years of Service
with the Employer may elect to have the percentage of his Nonforfeitable Account
Balance computed under the Plan without regard to the amendment.  For Plan Years
beginning  prior to January 1, 1989,  or with respect to  Employees  who fail to
complete  at least  one (1)  Hour of  Service  in a Plan  Year  beginning  after
December 31, 1998, the election described in the preceding sentence applies only
to Participants having at least five (5) Years of Service with the Employer. The
Participant must file his election with the Plan Administrator within sixty (60)
days of the latest of (a) the  Employer's  adoption  of the  amendment;  (b) the
effective  date of the  amendment;  or (c) the  date  the  Participant  receives
written  notice of the amendment  from the Employer or Plan  Administrator.  The
Plan Administrator,  as soon as practicable,  must forward written notice of any
amendment to the vesting schedule to each affected Participant, together with an
explanation of the effect of the amendment,  the appropriate form upon which the
Participant may make an election to remain under the vesting  schedule  provided
under the Plan prior to the  amendment  and notice of the time within  which the
Participant  must make an election to remain under the prior  vesting  schedule.
The election  described in this Section 8.07 does not apply to a Participant  if
the amended vesting schedule provides for vesting at least as rapid at all times
as the vesting  schedule in effect prior to the amendment.  For purposes of this
Section 8.07, an amendment to the vesting  schedule  includes any Plan amendment
which  directly or  indirectly  affects the  computation  of the  Nonforfeitable
percentage  of an Employee's  rights to his Employer  derived  Account  Balance.
Furthermore,  the  Plan  Administrator  must  treat  any  shift  in the  vesting
schedule, due to a change in the Plan's top-heavy status, as an amendment to the
vesting schedule for purposes of this Section 8.07.

                                       90
<PAGE>

                                   ARTICLE IX
                      PARTICIPANT ADMINISTRATIVE PROVISIONS

         9.01  BENEFICIARY  DESIGNATION.  Any  Participant may from time to time
               ------------------------
designate, in writing, any person or persons,  contingently or successively,  to
whom the Trustee will pay his Nonforfeitable Account Balance (including any life
insurance  proceeds  payable to the  Participant's  Account) in the event of his
death and the Participant may designate the form and method of payment. The Plan
Administrator will prescribe the form for the written designation of Beneficiary
and, upon the  Participant's  filing the form with the Plan  Administrator,  the
form effectively  revokes all designations  filed prior to that date by the same
Participant.

         9.02  COORDINATION WITH SURVIVOR ANNUITY REQUIREMENTS.  If the survivor
               -----------------------------------------------
annuity  requirements of Article VI apply to the Participant,  this Section 9.02
does not impose any special  spousal consent  requirements on the  Participant's
Beneficiary designation. However, in the absence of spousal consent (as required
by Article VI) to the Participant's  Beneficiary designation:  (a) any waiver of
the  Qualified  Joint and  Survivor  Annuity or of the  Qualified  Preretirement
Survivor  Annuity is not  valid;  and (b) if the  Participant  dies prior to his
Annuity Starting Date, the Participant's Beneficiary designation will apply only
to the  portion  of the  death  benefit  which  is not  payable  as a  Qualified
Preretirement  Survivor  Annuity.  Regarding  clause (b),  if the  Participant's
surviving spouse is a primary  Beneficiary under the  Participant's  Beneficiary
designation, the Trustee will satisfy the spouse's interest in the Participant's
death   benefit  first  from  the  portion  which  is  payable  as  a  Qualified
Preretirement  Survivor Annuity. If the survivor annuity requirements of Article
VI do not apply to the  Participant,  the  Beneficiary  designation of a married
Participant is not valid unless the  Participant's  spouse consents (in a manner
described in Section 6.13) to the Beneficiary  designation.  Unless the Employer
elects  otherwise in Adoption  Agreement  Section  6.06,  this  spousal  consent
requirement  does not apply if the  Participant  and his spouse are not  married
throughout  the one (1) year  period  ending  on the  date of the  Participant's
death,  or if  the  Participant's  spouse  is  the  Participant's  sole  primary
Beneficiary.

         9.03  NO BENEFICIARY DESIGNATION/DEATH OF BENEFICIARY. If a Participant
               -----------------------------------------------
fails  to  name  a  Beneficiary  in  accordance  with  Section  9.01,  or if the
Beneficiary  named by a Participant  predeceases  him, then the Trustee will pay

                                       91
<PAGE>

the Participant's Nonforfeitable Account Balance in accordance with Section 6.06
in the following  order of priority,  unless the Employer  specifies a different
order of priority in an addendum to its  Adoption  Agreement,  numbered  Section
9.03, to:

                  (a)  The Participant's surviving spouse;

                  (b) The Participant's  surviving  children,  including adopted
         children, in equal shares;

                  (c)  The Participant's surviving parents, in equal shares; or

                  (d)  The Participant's estate.

         If the Beneficiary does not predecease the Participant,  but dies prior
to distribution of the Participant's entire Nonforfeitable  Account Balance, the
Trustee  will  pay  the  remaining   Nonforfeitable   Account   Balance  to  the
Beneficiary's estate unless the Participant's  Beneficiary  designation provides
otherwise  or unless the  Employer  provides  otherwise  in an  addendum  to its
Adoption  Agreement,  numbered  Section  9.03. If the Plan is not subject to the
survivor  annuity  requirements  of Article VI, the  Employer  may not specify a
different order of priority in an addendum to its Adoption  Agreement unless the
Participant's surviving spouse will be first in the different order of priority.
The Plan  Administrator will direct the Trustee as to the method and to whom the
Trustee will make payment under this Section 9.03.

         9.04  PERSONAL DATA TO PLAN ADMINISTRATOR.  Each  Participant  and each
               -----------------------------------
Beneficiary  of a deceased  Participant  must furnish to the Plan  Administrator
such evidence, data or information as the Plan Administrator considers necessary
or desirable for the purpose of  administering  the Plan. The provisions of this
Plan are  effective  for the  benefit  of each  Participant  upon the  condition
precedent that each  Participant  will furnish  promptly full, true and complete
evidence,  data  and  information  when  requested  by the  Plan  Administrator,
provided the Plan  Administrator  advises each  Participant of the effect of his
failure to comply with its request.

         9.05 ADDRESS FOR NOTIFICATION. Each Participant and each Beneficiary of
              ------------------------
a deceased  Participant must file with the Plan Administrator from time to time,
in writing,  his post office address and any change of post office address.  Any
communication,  statement or notice addressed to a Participant,  or Beneficiary,
at his last post office address filed with the Plan Administrator,

                                       92
<PAGE>

or as  shown  on  the  records  of  the  Employer,  binds  the  Participant,  or
Beneficiary, for all purposes of this Plan.

         9.06 NOTICE OF CHANGE IN TERMS. The Plan Administrator, within the time
              -------------------------
prescribed  by  ERISA  and  the   applicable   regulations,   must  furnish  all
Participants and Beneficiaries a summary  description of any material  amendment
to the Plan or notice of  discontinuance  of the Plan and all other  information
required by ERISA to be furnished without charge.

         9.07  LITIGATION  AGAINST THE TRUST. A court of competent  jurisdiction
               -----------------------------
may authorize any appropriate equitable relief to redress violations of ERISA or
to enforce any  provisions  of ERISA or the terms of the Plan.  A fiduciary  may
receive  reimbursement  of  expenses  properly  and  actually  incurred  in  the
performance of his duties with the Plan.

         9.08  INFORMATION  AVAILABLE.  Any  Participant  in  the  Plan  or  any
               ----------------------
Beneficiary  may examine copies of the Plan  description,  latest annual report,
any bargaining agreement,  this Plan and Trust, contract or any other instrument
under which the Plan was established or is operated. The Plan Administrator will
maintain all of the items listed in this Section 9.08 in its office,  or in such
other place or places as it may  designate  from time to time in order to comply
with the  regulations  issued under ERISA,  for  examination  during  reasonable
business hours.  Upon the written  request of a Participant or Beneficiary,  the
Plan  Administrator  must  furnish  him with a copy of any item  listed  in this
Section  9.08.  The Plan  Administrator  may  make a  reasonable  charge  to the
requesting person for the copy so furnished.

         9.09  PARTICIPANT DIRECTION OF INVESTMENT.
               -----------------------------------

                  (a) The Employer must elect in its Adoption  Agreement Section
         9.09 if  Participants  are permitted to direct the  investment of their
         respective  Accounts  under  the Plan.  If the  Trustee  consents,  the
         Trustee  will  accept  direction  from  each  Participant  on a written
         election  form (or other  written  agreement),  as a part of this Plan,
         containing  such  conditions,  limitations  and  other  provisions  the
         parties  deem  appropriate.  The Plan  Administrator,  in a uniform and
         nondiscriminatory   manner,   shall   establish   written   procedures,
         incorporated   specifically  as  a  part  of  this  Plan,  relating  to
         Participant  direction  of  investment  under this  Section  9.09.  The
         Trustee will maintain a segregated  investment  Account to the extent a
         Participant's  Account is subject to  Participant  self-direction.  The
         Trustee is not liable for any loss,  nor is the Trustee  liable for any

                                       93
<PAGE>

         breach,  resulting from a Participant's  direction of the investment of
         any part of his directed Account.

                  (b)  The  Plan  Administrator,  to the  extent  provided  in a
         written loan policy adopted under Section 7.06,  will treat a loan made
         to a Participant  as a Participant  direction of investment  under this
         Section 9.09. To the extent of the loan  outstanding  at any time,  the
         borrowing  Participant's  Account  alone shares in any interest paid on
         the  loan,  and it  alone  bears  any  expense  or  loss it  incurs  in
         connection  with the loan.  The  Trustee  may retain any  principal  or
         interest  paid  on the  borrowing  Participant's  loan  in an  interest
         bearing segregated Account on behalf of the borrowing Participant until
         the  Trustee  deems  it  appropriate  to add  the  amount  paid  to the
         Participant's separate Account under the Plan.

                                       94

<PAGE>

                                    ARTICLE X
       PLAN ADMINISTRATOR - DUTIES WITH RESPECT TO PARTICIPANTS' ACCOUNTS

         10.01  ADMINISTRATOR.  The  Employer  shall be the Plan  Administrator,
                -------------
unless  otherwise  specified  in the Plan  Information  Section of its  Adoption
Agreement.

         10.02  ADMINISTRATIVE  POWERS AND DUTIES. The Plan Administrator  shall
                ---------------------------------
administer the Plan in a uniform and nondiscriminatory manner in accordance with
its terms,  and shall have all powers  necessary to exercise its  discretion  in
carrying out the terms and  provisions of the Plan. The Plan  Administrator  has
the following powers and duties:

                  (a) To establish the funding  policy of the Plan in accordance
         with Section 10.03;

                  (b) To determine the rights of  eligibility  of an Employee to
         participate in the Plan, the value of a  Participant's  Account Balance
         and  the  Nonforfeitable   percentage  of  each  Participant's  Account
         Balance;

                  (c) To adopt rules of procedure and regulations  necessary for
         the proper and efficient administration of the Plan, provided the rules
         are not inconsistent with the terms of the Agreement;

                  (d) To  construe  and  enforce  the  terms of the Plan and the
         rules and regulations it adopts,  including  interpretation of the Plan
         documents and documents related to the Plan's operation;

                  (e) To direct  the  Trustee  as  respects  the  crediting  and
         distribution of the Trust;

                  (f) To review and render decisions  respecting a claim for (or
         denial of a claim for) a benefit under the Plan;

                  (g)  To  furnish  the  Employer  with  information  which  the
         Employer may require for tax or other purposes;

                  (h) To engage the service of agents whom it may deem advisable
         to assist it with the performance of its duties;

                  (i)  To  engage  the  services  of an  Investment  Manager  or
         Managers  (as defined in ERISA  section  3(3)),  each of whom will have

                                       95
<PAGE>

         full power and  authority to manage,  acquire or dispose (or direct the
         Trustee with respect to acquisition or  disposition)  of any Plan asset
         under its control;

                  (j) To establish, in its sole discretion,  a nondiscriminatory
         policy (see  Section  7.06) which the  Trustee  must  observe in making
         loans, if any, to Participants and Beneficiaries; and

                  (k) To direct  the  Trustee  as to the voting of stock held in
         the Trust Fund established  hereby, or as to any other actions that may
         be  appropriate   with  respect  thereto  (such  as   participation  in
         reorganizations,  etc.);  provided  that  in the  absence  of any  such
         direction, the Trustee shall have the right to vote such stock and take
         such other actions in its sole discretion.

         The Plan Administrator  shall have no power to add to, subtract from or
modify  any of the  terms  of the  Plan,  or to  change  or add to any  benefits
provided  by the  Plan,  or to  waive  or  fail to  apply  any  requirements  of
eligibility for a benefit under the Plan.

         10.03  FUNDING POLICY.  The Plan Administrator shall have the authority
                --------------
and responsibility for establishing and implementing a funding method and policy
consistent with the needs of the Plan and the requirements of ERISA. The funding
method and policy so established  shall be in writing,  and a copy thereof shall
be delivered to the Trustee.  The Plan Administrator will review, not less often
than annually,  all pertinent Employee information and Plan data in light of the
funding policy of the Plan and to determine the appropriate  methods of carrying
out the Plan's objectives. The Plan Administrator must communicate periodically,
as it deems  appropriate,  to the Trustee and to any Plan Investment Manager the
Plan's  short-term  and long-term  financial  needs so investment  policy can be
coordinated with Plan financial requirements.

         10.04  RULES AND  DECISIONS.  The Plan  Administrator  may  adopt  such
                --------------------
by-laws, rules and regulations as it deems necessary, desirable, or appropriate,
provided  that same shall not be  inconsistent  with or  contrary to the express
terms of the Plan.  All such by-laws,  rules,  regulations  and decisions of the
Plan Administrator shall be applied uniformly in all circumstances.

         10.05  MANNER OF ACTION.  If more than one person is designated as Plan
                ----------------
Administrator,  the  decision of a majority of such  individuals  appointed  and
qualified controls.  Such committee may authorize any one of its members, or its

                                       96
<PAGE>

secretary,  to  sign  on  its  behalf  any  notices,  directions,  applications,
certificates, consents, approvals, waivers, letters or other documents. The Plan
Administrator  must  evidence  this  authority  by an  instrument  signed by all
members  and  filed  with  the  Trustee.  A  member  of the  committee  who is a
Participant  shall not vote on any issue relating  specifically to himself,  and
any such  action  shall be decided  or voted by the  majority  of the  remaining
committee members (except that such member may sign unanimous written consent to
resolutions adopted or other action taken without a meeting).

         10.06  INDIVIDUAL ACCOUNTS.
                -------------------

                  (a) The  Plan  Administrator  will  maintain,  or  direct  the
         Trustee to maintain, for purposes of administering the Plan, a separate
         Account, or multiple Accounts,  with respect to Employer  contributions
         and  Participant  contributions,  in the  name of each  Participant  to
         reflect the  Participant's  Account  Balance  under the Plan.  Separate
         records shall be kept as to all  transactions  affecting the respective
         accounts.  Except when  specifically  designated  otherwise,  the above
         accounts  shall  be  collectively  referred  to  as  the  Participant's
         "Account." All contributions and the proportionate  part of profits and
         losses  attributable  thereto,  and  withdrawals  therefrom,  shall  be
         credited  or debited  respectively  against  each  respective  account.
         Nevertheless,  the respective  accounts need not be segregated and held
         by the Trustee as a separate fund but may be held as a commingled Trust
         Fund together with the other funds of the Plan.

                  (b) If a  Participant  re-enters  the Plan  subsequent  to his
         having a Forfeiture Break in Service,  the Plan  Administrator,  or the
         Trustee,  must  maintain  a  separate  Account  for  the  Participant's
         pre-Forfeiture  Break in Service Account Balance and a separate Account
         for his  post-Forfeiture  Break in Service Account Balance,  unless the
         Participant's   entire   Account   Balance   under  the  Plan  is  100%
         Nonforfeitable.

                  (c) The  Plan  Administrator  will  make its  allocations,  or
         request the  Trustee to make its  allocations,  to the  Accounts of the
         Participants  in accordance  with the provisions of Section 10.08.  The
         Plan  Administrator  may direct the  Trustee  to  maintain a  temporary
         segregated investment Account in the name of a Participant to prevent a

                                       97
<PAGE>

         distortion of income, gain or loss allocations under Section 10.08. The
         Plan Administrator must maintain records of its activities.

         10.07  VALUE  OF  PARTICIPANT'S  ACCOUNT  BALANCE.  The  value  of each
                ------------------------------------------
Participant's  Account Balance  consists of that proportion of the net worth (at
fair market value) of the Employer's  Trust Fund which the net credit balance in
his  Account  (exclusive  of the cash  value  of  incidental  benefit  insurance
contracts)  bears to the total net credit balance in the Accounts  (exclusive of
the  cash  value  of  the  incidental   benefit  insurance   contracts)  of  all
Participants  plus the cash surrender value of any incidental  benefit insurance
contracts  held by the  Trustee on the  Participant's  life.  For  purposes of a
distribution under the Plan, the value of a Participant's Account Balance is its
value  as  of  the  Valuation  Date  immediately   preceding  the  date  of  the
distribution.

         10.08  ALLOCATION  AND  DISTRIBUTION  OF NET  INCOME  GAIN OR  LOSS.  A
                ------------------------------------------------------------
"Valuation  Date"  under  this  Plan is each  Adjustment  Date and each  interim
Valuation Date determined under the Employer's  Adoption Agreement Section 1.51.
As of each Valuation Date the Plan Administrator must adjust Accounts to reflect
net income,  gain or loss since the last Valuation Date. The valuation period is
the period  beginning  the day after the last  Valuation  Date and ending on the
current Valuation Date.

                  (a)  With  respect  to all  Participant  Accounts  other  than
         segregated  investment  Accounts,  the Plan  Administrator  first  will
         adjust  the  Participant  Accounts,  as  those  Accounts  stood  at the
         beginning of the current valuation period, by reducing the Accounts for
         any forfeitures  arising under Section 5.11 or under Section 10.15, for
         amounts  charged  during  the  valuation  period  to  the  Accounts  in
         accordance with Section 10.14 (relating to  distributions)  and Section
         13.02  (relating  to  insurance  premiums),  and for the cash  value of
         incidental benefit insurance  contracts.  The Plan Administrator  then,
         subject to the restoration allocation requirements of Sections 5.08 and
         5.09 or of Section  10.15,  will allocate the net income,  gain or loss
         pro  rata to the  adjusted  Participant  Accounts.  The  allocable  net
         income,  gain or loss is the net income (or net  loss),  including  the
         increase or decrease in the fair market value of assets, since the last
         Valuation Date.  Notwithstanding  anything  herein to the contrary,  no
         gains or losses shall be credited to a  Participant's  Account  between
         the date such  Account is valued for  payment and the actual date it is
         paid.

                                       98
<PAGE>

                  (b)  Notwithstanding  paragraph  (a)  above,  with  respect to
         contributions  made to the Plan after the previous  Valuation Date, the
         method  specified in the Employer's  Adoption  Agreement  Section 10.08
         shall be used.  If the Employer  selects a weighted  average  method of
         allocation  contributions made to the Plan after the previous Valuation
         Date, such "weighted average  allocation"  method will treat a weighted
         portion  of  the  applicable  contributions  as if  includible  in  the
         Participant's  Account as of the beginning of the valuation period. The
         weighted portion is a fraction, the numerator of which is the number of
         months in the valuation  period,  excluding each month in the valuation
         period which begins prior to the  contribution  date of the  applicable
         contributions,  and the denominator of which is the number of months in
         the valuation period.

                  As of the last day of each  Plan  Year  (or,  if  earlier,  an
         allocation   date   coinciding   with  a   Valuation   Date)  the  Plan
         Administrator   will   reallocate   the   segregated   Account  to  the
         Participant's  appropriate  Account, in accordance with Section 3.07 or
         Section 4.04, whichever applies to the contributions.

                  (c) A  segregated  investment  Account  receives all income it
         earns and bears all expense or loss it incurs.  The Plan  Administrator
         will adopt uniform and  nondiscriminatory  procedures  for  determining
         income or loss of a  segregated  investment  Account in a manner  which
         reasonably   reflects   investment   directions   relating   to  pooled
         investments  and  investment  directions  occurring  during a valuation
         period. As of the Valuation Date, the Plan  Administrator must reduce a
         segregated  Account for any forfeiture arising under Section 5.11 after
         the Plan  Administrator  has made all  other  allocations,  changes  or
         adjustments to the Account for the Plan Year.

                  (d) An Excess Amount or suspense account  described in Article
         IV  does  not  share  in the  allocation  of net  income,  gain or loss
         described in this Section  10.08.  This Section 10.08 applies solely to
         the  allocation  of net  income,  gain or loss of the  Trust.  The Plan
         Administrator will allocate the Employer  contributions and Participant
         forfeitures, if applicable, in accordance with Article IV.

         10.09  DETERMINATION  AS  TO  ELIGIBILITY.   Any  question  as  to  the
                ----------------------------------
eligibility  of  any  Employee   hereunder  shall  be  determined  by  the  Plan
Administrator in accordance with the terms hereof and such  determination  shall
be final and conclusive for all purposes. The Plan Administrator shall determine

                                       99
<PAGE>

the eligibility of Employees in accordance with the provisions of this Plan from
the  books and  records  of the  Employer,  or from such  other  information  or
evidence as it may deem  sufficient,  and shall provide  notice to each Employee
when he becomes eligible to participate hereunder.

         10.10  AUTHORIZATION OF BENEFIT PAYMENTS.  The Plan Administrator shall
                ---------------------------------
issue  directions to the Trustee  concerning  all benefits  which are to be paid
from  the  Trust  Fund  pursuant  to  the  provisions  of  the  Plan.  The  Plan
Administrator  may  require a  Participant  to  complete  and file with the Plan
Administrator  an application  for a benefit and all other forms approved by the
Plan Administrator,  and to furnish all pertinent  information  requested by the
Plan Administrator. The Plan Administrator may rely upon all such information so
furnished,  including  but not  limited  to the  Participant's  current  mailing
address.

         10.11 PAYMENT FOR BENEFIT OF DISABLED OR INCAPACITATED PERSON. Whenever
               -------------------------------------------------------
in the  opinion of the Plan  Administrator  a person  entitled  to  receive  any
payment  of a  benefit  hereunder  or  installment  thereof  is  under  a  legal
disability or is physically,  mentally,  or legally  incapable of  acknowledging
receipt of such payment,  the Plan  Administrator may direct the Trustee to make
payments  to such  person or to his legal  representative  or to a  relative  or
friend of such person for his benefit,  or to an institution  maintaining him if
no guardian or committee has been  appointed for him, or the Plan  Administrator
may direct the  Trustee to apply the  payment  for the benefit of such person in
such  manner as the Plan  Administrator  considers  advisable.  Any payment of a
benefit or installment thereof in accordance with the provisions of this Section
shall be a complete  discharge of any  liability  for the making of such payment
under the provisions of the Plan.

         10.12  BOND.  To the extent required by ERISA, a fidelity bond or other
                ----
surety shall be required of the Employer and any other party at any time serving
as a fiduciary  with respect to the Plan, and shall be in an amount equal to the
greater of $1,000,  or ten percent (10%) of the assets in the Plan, but need not
be greater than $500,000, unless provided otherwise by the Secretary of Labor or
ERISA. The payment of premiums of such bond or other surety shall be paid by the
Employer  within a reasonable time or, upon its failure to do so, by the Trustee
from the Trust Fund.  The amount of such bond shall be fixed at the beginning of
each Plan Year in accordance with the provisions of section 412(a) of ERISA.

                                      100
<PAGE>

         10.13 INDIVIDUAL STATEMENT. As soon as practicable after the Adjustment
               --------------------
Date of each  Plan  Year,  but  within  the time  prescribed  by  ERISA  and the
regulations under ERISA, the Plan Administrator will deliver to each Participant
(and to each  Beneficiary)  a statement  reflecting the condition of his Account
Balance in the Trust as of that date and such other  information  ERISA requires
to be furnished to the  Participant or Beneficiary.  No  Participant,  except an
individual  designated in Section 10.01 to serve as Plan Administrator,  has the
right to inspect the records reflecting the Account of any other Participant.

         10.14   ACCOUNT   CHARGED.   The  Plan   Administrator   may  charge  a
                 -----------------
Participant's  Account  for all  distributions  made  from that  Account  to the
Participant, to his Beneficiary or to an alternate payee. The Plan Administrator
may also charge a Participant's Account for any administrative expenses incurred
by the Plan directly related to that Account.

         10.15  UNCLAIMED ACCOUNT PROCEDURE.
                ---------------------------

                  (a) The Plan does not  require  either the Trustee or the Plan
         Administrator  to search for, or to ascertain the  whereabouts  of, any
         Participant  or  Beneficiary.   At  the  time  the   Participant's   or
         Beneficiary's  benefit becomes distributable under Article VI, the Plan
         Administrator,  by certified or registered  mail  addressed to his last
         known  address of record with the Plan  Administrator  or the Employer,
         must notify any Participant,  or Beneficiary,  that he is entitled to a
         distribution  under this Plan.  The notice must quote the provisions of
         this  Section  10.15  and   otherwise   must  comply  with  the  notice
         requirements of Article VI. If the Participant,  or Beneficiary,  fails
         to  claim  his  distributive  share or make  his  whereabouts  known in
         writing to the Plan  Administrator  within six (6) months from the date
         of  mailing  of the  notice,  the Plan  Administrator  will  treat  the
         Participant's  or  Beneficiary's  unclaimed  payable Account Balance as
         forfeited and will reallocate the unclaimed  payable Account Balance in
         accordance  with Section  4.09.  A  forfeiture  under this Section will
         occur at the end of the notice  period or, if later,  the earliest date
         applicable  Treasury  regulations would permit the forfeiture.  Pending
         forfeiture,  the Plan  Administrator,  following the  expiration of the
         notice period,  may direct the Trustee to segregate the  Nonforfeitable
         Account  Balance in a segregated  Account and to invest that segregated
         Account in Federally  insured interest bearing savings accounts or time
         deposits  (or in a  combination  of  both),  or in other  fixed  income
         investments.

                                      101
<PAGE>

                  (b)  If a  Participant  or  Beneficiary  who  has  incurred  a
         forfeiture of his Account  Balance under the provisions of this Section
         10.15 makes a claim,  at any time, for his forfeited  Account  Balance,
         the Plan  Administrator must restore the Participant's or Beneficiary's
         forfeited  Account  Balance  to the same  dollar  amount as the  dollar
         amount of the Account  Balance  forfeited,  unadjusted for any gains or
         losses  occurring  subsequent to the date of the  forfeiture.  The Plan
         Administrator  will make the restoration  during the Plan Year in which
         the Participant or Beneficiary makes the claim,  first from the amount,
         if any, of Participant  forfeitures  the Plan  Administrator  otherwise
         would allocate for the Plan Year, then from the amount,  if any, of the
         Trust  Fund net  income  or gain for the  Plan  Year and then  from the
         amount, or additional  amount,  the Employer  contributes to enable the
         Plan  Administrator  to  make  the  required   restoration.   The  Plan
         Administrator  must direct the Trustee to distribute the  Participant's
         or  Beneficiary's  restored Account Balance to him not later than sixty
         (60)  days  after  the  close  of the  Plan  Year  in  which  the  Plan
         Administrator  restored the forfeited  Account Balance.  The forfeiture
         provisions of this Section 10.15 apply solely to the  Participant's  or
         the Beneficiary's Account Balance derived from Employer contributions.

         10.16  TERMS TO BE COMMUNICATED.  The principal terms of the Plan shall
                ------------------------
be  communicated  to the  Employees  by the  Plan  Administrator,  and the  Plan
Administrator  shall notify each Employee of his rights and benefits  hereunder.
The Participants shall be conclusively deemed for all purposes to have consented
to all of the terms and  provisions of this Plan and shall be bound thereby with
the same force and effect as if they had executed  this Plan. A copy of the Plan
shall be available to each  Participant  hereunder by having a copy available at
the principal office of each Employer during business hours.

         10.17  SIGNATURE AUTHORITY.  If the Plan  Administrator  shall delegate
                -------------------
specific fiduciary responsibilities,  it may designate and authorize one or more
of the persons being so delegated to sign  documents;  and shall further  notify
the  Trustee  of such  action  and the name or names of the person or persons so
designated.  The  Trustee  shall  thereafter  accept and rely upon any  document
executed  by  such  person  or  persons  as  representing  action  by  the  Plan
Administrator  until  the Plan  Administrator  shall  deliver  to the  Trustee a
written revocation of such designation.

                                      102
<PAGE>

         10.18  FIDUCIARY NOTICE REQUIREMENTS.  The Plan Administrator and those
                -----------------------------
to whom it has delegated fiduciary duties shall notify the Trustee of any action
taken with  respect to the Plan,  and when  required to do so,  shall notify any
other  interested  party.  The  Plan  Administrator  and  those  to  whom it has
delegated  fiduciary  duties shall maintain all books of account,  records,  and
other data as shall be necessary to properly administer the Plan and satisfy the
disclosure  and  reporting   requirements  of  ERISA  and  the  Code.  The  Plan
Administrator  shall  ensure  that the Plan is in  compliance  with the  various
reporting  requirements  set  forth  in  ERISA,  the  Code  and the  regulations
thereunder.

         10.19  RELIANCE.  The  Plan  Administrator  shall be  entitled  to rely
                --------
conclusively  upon,  and shall be fully  protected in any actions taken by it in
good faith and in reliance upon any opinions or reports which shall be furnished
to it by  an  accountant,  actuary,  counsel,  or  other  specialist.  The  Plan
Administrator  shall not incur any  liability  for its action or failure to act,
excepting only liability for its own gross negligence or willful misconduct. The
Plan  Administrator  shall  indemnify  each  person  to  whom  it has  delegated
fiduciary duties against all claims, losses, damages,  expenses, and liabilities
arising  from any action or failure to act,  except when the same is  judicially
determined  to be due to the gross  negligence  or  willful  misconduct  of such
person.

         10.20 SUCCESSOR FIDUCIARY. Upon the death, resignation, or inability to
               -------------------
serve of any person to whom the  Employer or Plan  Administrator  has  delegated
fiduciary  duties,  a successor  fiduciary shall be appointed within thirty (30)
days.  If the Employer  shall cease to exist,  or be dissolved,  voluntarily  or
involuntarily,  or  have a  receiver  or  trustee  in  bankruptcy  appointed,  a
successor  fiduciary  shall be  appointed  within  thirty  (30) days by the then
remaining  persons (if any) to whom  fiduciary  duties have been  delegated.  If
there are no  remaining  persons to whom the Employer  has  delegated  fiduciary
duties,  or in the  event of the  inability,  failure,  or  refusal  of the then
remaining  fiduciaries to make such appointment,  a successor fiduciary shall be
selected by a majority of the  Participants  under the Plan who are Employees of
the Employer at the time of the occurrence of the foregoing events.

         10.21  UNIFORM APPLICATION.  The provisions of this Plan shall apply to
                -------------------
all Participants uniformly.

                                      103
<PAGE>

                                   ARTICLE XI
                            TRUSTEE POWERS AND DUTIES

         11.01 TRUST.  All assets of the Plan shall be held in the Trust forming
               -----
part of this Plan,  which  shall be  administered  as a fund to provide  for the
payment  of  benefits  as  provided  in the  Plan to the  Participants  or their
successors  in  interest,  out of the income  and  principal  of the Trust.  The
Trustee  shall  discharge  its  duties  as such  solely in the  interest  of the
Participants and their successors in interest. The Trustee shall act:

                  (a)  For the  exclusive  purposes  of  providing  benefits  to
         Participants and their successors in interest and defraying  reasonable
         expenses of  administering  the Plan,  including the Trust,  which is a
         part of the Plan;

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

                  (c) In accordance with the Plan and Trust agreement, except to
         the extent such document may be inconsistent with ERISA.

         11.02 TRUST FUND.  The Trustee  shall hold the funds  received from the
               ----------
Employer subject to the terms of this Plan and upon the uses and trusts, and for
the purposes herein set forth. The funds subject to the provisions of this Trust
shall include, but shall not be limited to, all monies, properties,  securities,
investments, notes, bonds, mortgages, debentures, shares of stock, accounts, and
evidences of  indebtedness of whatsoever kind or nature at any time or from time
to time  acquired  or held by the  Trustee  pursuant  to the terms of this Plan;
however,  the Trustee shall be responsible only for such funds as shall actually
be received by it as Trustee hereunder.

         11.03  ESTABLISHMENT OF TRUST.
                ----------------------

                  (a) The  Trustee  shall hold and manage the assets of the Plan
         and shall  receive to be included  in the Trust Fund any  contributions
         paid  to  it  in  cash,  or  other   property   approved  by  the  Plan
         Administrator and acceptable to the Trustee, and shall retain,  manage,
         administer,  hold, and  distribute  the same,  together with the income

                                      104
<PAGE>

         therefrom, in accordance with the terms and provisions of this Plan. No
         part of the  corpus or income of the Trust  Fund  shall be used for any
         purpose  except for the exclusive  benefit of Employees of the Employer
         or their surviving spouses or other  Beneficiaries,  and payment of the
         expenses of administration of the Plan and Trust.

                  (b) All  contributions  so received  together  with the income
         therefrom  shall be managed,  invested and  reinvested  by the Trustee,
         subject,  however,  to the right of the  Employer to appoint and employ
         any Investment Manager or Managers to manage and/or invest and reinvest
         the Trust Fund, or any part thereof, as provided in Section 8.01.

         11.04 ACCEPTANCE.  The Trustee accepts the Trust created under the Plan
               ----------
and agrees to perform the obligations imposed. The Trustee must provide bond for
the faithful performance of its duties under the Trust to the extent required by
ERISA.

         11.05  RECEIPT OF  CONTRIBUTIONS.  The  Trustee is  accountable  to the
                -------------------------
Employer for the funds contributed to it by the Employer,  but does not have any
duty to see that the  contributions  received  comply with the provisions of the
Plan. The Trustee is not obliged to collect any contributions from the Employer,
nor is obliged to see that funds  deposited  with it are deposited  according to
the provisions of the Plan.

         11.06  INVESTMENT POWERS. The Trustee has full discretion and authority
                -----------------
with regard to the  investment of the Trust Fund,  except with respect to a Plan
asset under the control or direction of a properly appointed  Investment Manager
or with respect to a Plan asset  properly  subject to Employer,  Participant  or
Plan  Administrator  direction of  investment.  The Trustee must  coordinate its
investment  policy with Plan financial  needs as  communicated to it by the Plan
Administrator.  The  Trustee  is  authorized  and  empowered,  but not by way of
limitation, with the following powers, rights and duties:

                  (a) To invest  any part or all of the Trust Fund in any common
         or preferred stocks,  open-end or closed-end mutual funds, put and call
         options traded on a national  exchange,  United States  retirement plan
         bonds, corporate bonds, debentures,  convertible debentures, commercial
         paper,  U.S.  Treasury bills,  U.S.  Treasury notes and other direct or
         indirect  obligations of the Unites States  Government or its agencies,
         improved  or  unimproved  real estate  situated  in the United  States,
         limited partnerships, insurance contracts of any type, mortgages, notes
         or other property of any kind, real or personal, to buy or sell options

                                      105
<PAGE>

         on common stock on a  nationally  recognized  exchange  with or without
         holding  the  underlying  common  stock,  to buy and sell  commodities,
         commodity options and contracts for the future delivery of commodities,
         and to make any other investments the Trustee deems  appropriate,  as a
         prudent man would do under like  circumstances  with due regard for the
         purposes of this Plan. Any  investment  made or retained by the Trustee
         in  good  faith  is  proper  but  must  be  of a  kind  constituting  a
         diversification considered by law suitable for trust investments.

                  (b) To retain in cash so much of the Trust Fund as it may deem
         advisable  to satisfy  liquidity  needs of the Plan and to deposit  any
         cash held in the Trust Fund in a bank account at reasonable interest.

                  (c) To invest,  if the Trustee is a bank or similar  financial
         institution  supervised by the United States or by a State, in any type
         of deposit of the Trustee (or of a bank  related to the Trustee  within
         the meaning of Code section 414(b)) at a reasonable rate of interest or
         in a common  trust fund,  as  described  in Code  section  584, or in a
         collective   investment  fund,  the  provisions  of  which  govern  the
         investment  of such  assets  and  which the Plan  incorporates  by this
         reference,  which the  Trustee  (or its  affiliate,  as defined in Code
         section 1504) maintains  exclusively  for the collective  investment of
         money  contributed  by the bank (or the  affiliate)  in its capacity as
         trustee  and  which  conforms  to the rules of the  Comptroller  of the
         Currency.

                  (d) To  manage,  sell,  contract  to sell,  grant  options  to
         purchase, convey, exchange, transfer, abandon, improve, repair, insure,
         lease for any term even though  commencing  in the future or  extending
         beyond the term of the Trust,  and  otherwise  deal with all  property,
         real or personal,  in such manner, for such  considerations and on such
         terms and conditions as the Trustee decides.

                  (e) To credit and distribute the Trust as directed by the Plan
         Administrator.  The Trustee is not obliged to inquire as to whether any
         payee  or  distributee  is  entitled  to any  payment  or  whether  the
         distribution  is proper or within  the terms of the Plan,  or as to the
         manner  of  making  any  payment  or   distribution.   The  Trustee  is
         accountable  only  to  the  Plan   Administrator  for  any  payment  or
         distribution  made by it in good faith on the order or direction of the
         Plan Administrator.

                                      106
<PAGE>

                  (f) To borrow money, to assume indebtedness,  extend mortgages
and encumber by mortgage or pledge.

                  (g) To  compromise,  contest,  arbitrate or abandon claims and
         demands, in its discretion.

                  (h) To have with  respect to the Trust all of the rights of an
         individual owner,  including the power to give proxies,  to participate
         in any voting trusts, mergers,  consolidations or liquidations,  and to
         exercise or sell stock subscriptions or conversion rights.

                  (i) To lease for oil,  gas and other  mineral  purposes and to
         create mineral  severances by grant or reservation;  to pool or unitize
         interests in oil, gas and other  minerals;  and to enter into operating
         agreements and to execute division and transfer orders.

                  (j) To hold any  securities  or other  property in the name of
         the Trustee or its nominee,  with depositories or agent depositories or
         in another  form as it may deem best,  with or without  disclosing  the
         trust relationship.

                  (k) To  perform  any  and  all  other  acts  in  its  judgment
         necessary or appropriate  for the proper and  advantageous  management,
         investment and distribution of the Trust.

                  (l) To retain any funds or  property  subject  to any  dispute
         without  liability for the payment of interest,  and to decline to make
         payment or delivery of the funds or property  until final  adjudication
         is made by a court of competent jurisdiction.

                  (m)  To file all tax returns required of the Trustee.

                  (n) To furnish to the Employer and the Plan  Administrator  an
         annual statement of account showing the condition of the Trust Fund and
         all  investments,   receipts,   disbursements  and  other  transactions
         effected by the Trustee  during the Plan Year covered by the  statement
         and also  stating  the  assets of the Trust held at the end of the Plan
         Year,  which  accounts are  conclusive  on all persons,  including  the
         Employer  and  the  Plan  Administrator,   except  as  to  any  act  or
         transaction  concerning  which the  Employer or the Plan  Administrator
         files with the Trustee written  exceptions or objections  within ninety

                                      107
<PAGE>

         (90)  days  after  the  receipt  of the  accounts  or for  which  ERISA
         authorizes a longer period within which to object.

                  (o) To begin,  maintain or defend any litigation  necessary in
         connection with the administration of the Plan, except that the Trustee
         is  not  obliged  or  required  to  do so  unless  indemnified  to  its
         satisfaction.

         The  powers  granted  to the  Trustee  shall be  exercised  in the sole
fiduciary  discretion  of the  Trustee.  However,  if elected in the  Employer's
Adoption  Agreement  Section 9.09,  each  Participant  may direct the Trustee to
separate and keep  separate  all or a portion of his  interest in the Plan;  and
further, each Participant is authorized and empowered,  in his sole and absolute
discretion,  to give  directions  to the Trustee in such form as the Trustee may
require  concerning  the  investment of the  Participant's  directed  investment
Account, which directions must be followed by the Trustee,  subject, however, to
restrictions on payment of life insurance premiums.  Neither the Trustee nor any
other  persons,  including  the Plan  Administrator,  shall be under any duty to
question any such  direction of the  Participant  or to review any securities or
other property,  real or personal, or to make any suggestions to the Participant
in connection therewith, and the Trustee shall comply as promptly as practicable
with directions  given by the Participant  hereunder.  The Trustee may refuse to
comply with any direction from the Participant in the event the Trustee,  in its
sole discretion, deems such directions improper by virtue of applicable law, and
in such event,  the Trustee shall not be  responsible  or liable for any loss or
expense which may result.

         Notwithstanding anything herein to the contrary, the Trustee shall not,
at any time after  December  31,  1981,  invest any  portion of a  Participant's
directed  investment  Account in  "collectibles" as that term is defined in Code
section 408(m).

         11.07  INVESTMENT  IN QUALIFYING  EMPLOYER  SECURITIES  AND  QUALIFYING
                ----------------------------------------------------------------
EMPLOYER REAL PROPERTY. The investment options in this Section 11.07 include the
----------------------
ability to invest in qualifying  Employer securities or qualifying Employer real
property,  as defined in and as limited by ERISA.  The Employer may elect in its
Adoption  Agreement  Section  11.07  to  permit  the  aggregate  investments  in
qualifying  Employer  securities  and in  qualifying  Employer  real property to
exceed ten percent (10%) of the value of Plan assets.

         11.08 RECORDS AND STATEMENTS.  The records of the Trustee pertaining to
               ----------------------
the  Plan  must be open to the  inspection  of the  Plan  Administrator  and the

                                      108
<PAGE>

Employer  at all  reasonable  times and may be audited  from time to time by any
person or persons as the Employer or Plan  Administrator may specify in writing.
The  Trustee  must  furnish the Plan  Administrator  with  whatever  information
relating to the Trust Fund the Plan Administrator considers necessary.

         11.09  FEES AND EXPENSES FROM FUND.  A Trustee will receive  reasonable
                ---------------------------
annual compensation as may be agreed upon from time to time between the Employer
and the  Trustee.  No person who is  compensated  on a full-time  basis from the
Employer may receive  compensation for services as Trustee. The Trustee will pay
from the Trust Fund,  pursuant to the provisions of ERISA, all fees and expenses
reasonably  incurred by the Plan,  to the extent such fees and  expenses are for
the ordinary and necessary  administration and operation of the Plan, unless the
Employer  pays such fees and  expenses.  Any fee or expense  paid,  directly  or
indirectly,  by the  Employer  is  not an  Employer  contribution  to the  Plan,
provided the fee or expense relates to the ordinary and necessary administration
of the Trust Fund.

         11.10 EXERCISE OF POWERS. The powers granted the Trustee under Sections
               ------------------
11.06 and 11.07 shall be exercised by the Trustee in its  discretion  insofar as
such exercise does not  contravene  any written  direction  from the Employer or
Investment  Manager or the policy for the funding of the Plan  developed  by the
Employer.  The decision of the Trustee in matters within its jurisdiction  shall
be final,  binding,  and conclusive  upon the Employer,  and upon each Employee,
Participant, Beneficiary, and every other interested person.

         11.11  POWER TO DO ANY NECESSARY ACTS. The Trustee is authorized in its
                ------------------------------
discretion to do any and all acts and to make, execute, and deliver, as Trustee,
any and all  instruments  in  writing  necessary  or  proper  for the  effective
exercise of any of the Trustee's powers as stated herein or otherwise  necessary
to accomplish the purposes of the Trust.

         11.12  ACCOUNTING.
                ----------

                  (a) The Trustee shall keep  accurate and detailed  accounts of
         all  investments,   receipts,  disbursements,  and  other  transactions
         hereunder.  All accounts,  books and records  relating thereto shall be
         open  for  inspection  and  audit at all  reasonable  times by the Plan
         Administrator,  Investment Manager or by any other person designated by
         the Employer.

                                      109
<PAGE>

                  (b) Within ninety (90) days following the close of each fiscal
         year of the Trust and  within  ninety  (90) days  after the  removal or
         resignation  of the  Trustee,  the  Trustee  shall  file  with the Plan
         Administrator  a  written   account  setting  forth  all   investments,
         receipts,  disbursements,  and other transactions effected by it during
         such fiscal year or during the period from the close of the last fiscal
         year to the date of such removal or resignation,  and setting forth the
         current value of the Trust Fund. As of the close of business at the end
         of the fiscal year of the Trust,  the Trustee shall value the assets of
         the Trust Fund at prevailing market values and shall render a statement
         thereof promptly to the Plan  Administrator.  Nothing herein contained,
         however,  shall  preclude  the Trustee  from having any of its accounts
         judicially settled by a court of competent jurisdiction.

         11.13 PARTIES TO LITIGATION.  Except as otherwise provided by ERISA, no
               ---------------------
Participant or Beneficiary is a necessary party or is required to receive notice
of process in any court  proceeding  involving  the Plan,  the Trust Fund or any
fiduciary of the Plan.  Any final  judgment  entered in any  proceeding  will be
conclusive upon the Employer, the Plan Administrator,  the Trustee, Participants
and Beneficiaries.

         11.14  PROFESSIONAL  AGENTS.  The  Trustee  may employ and pay from the
                --------------------
Trust Fund reasonable compensation to agents,  attorneys,  accountants and other
persons to advise the Trustee as, in its opinion, may be necessary.  The Trustee
may delegate to any agent,  attorney,  accountant or other person selected by it
any non-Trustee  power or duty vested in it by the Plan, and the Trustee may act
or  refrain  from  acting  on the  advice or  opinion  of any  agent,  attorney,
accountant or other person so selected.

         11.15  DISTRIBUTION  OF CASH OR  PROPERTY.  Pursuant to the  Employer's
                ----------------------------------
election  in  its  Adoption  Agreement  Section  11.15,  the  Trustee  may  make
distribution under the Plan in cash or property,  or partly in each, at its fair
market value as determined by the Trustee.  For purposes of a distribution  to a
Participant or to a Participant's  designated  Beneficiary or surviving  spouse,
"property"  includes a Nontransferable  Annuity Contract,  provided the contract
satisfies the requirements of this Plan.

         11.16  DISTRIBUTION   DIRECTIONS.   If  no  one  claims  a  payment  or
                -------------------------
distribution  made from the Trust,  the Trustee  must  promptly  notify the Plan
Administrator  and then dispose of the payment in accordance with the subsequent
direction of the Plan Administrator.

                                      110
<PAGE>

         11.17 THIRD PARTY/MULTIPLE TRUSTEES. No person dealing with the Trustee
               -----------------------------
is  obligated  to see to the proper  application  of any money paid or  property
delivered to the Trustee,  or to inquire  whether the Trustee has acted pursuant
to any of the terms of the Plan.  Each person  dealing  with the Trustee may act
upon any notice,  request or representation in writing by the Trustee, or by the
Trustee's duly authorized  agent,  and is not liable to any person in so acting.
The  certificate  of the Trustee that it is acting in  accordance  with the Plan
will be conclusive in favor of any person  relying on the  certificate.  If more
than two  persons act as Trustee,  a decision  of the  majority of such  persons
controls with respect to any decision regarding the administration or investment
of the Trust Fund or of any portion of the Trust Fund with respect to which such
persons act as Trustee.  However, the signature of only one Trustee is necessary
to effect any transaction on behalf of the Trust.

         11.18  RESIGNATION.  The Trustee may resign its position at any time by
                -----------
giving  thirty (30) days' written  notice in advance to the Employer;  provided,
however,  the Employer  may agree to waive such thirty (30) day advance  written
notice.  If the Employer fails to appoint a successor  Trustee within sixty (60)
days of its receipt of the Trustee's written notice of resignation,  the Trustee
will treat the  Employer  as having  appointed  itself as Trustee  and as having
filed its acceptance of appointment with the former Trustee.

         11.19 REMOVAL. The Employer, by giving thirty (30) days' written notice
               -------
in  advance to the  Trustee,  may remove any  Trustee;  provided,  however,  the
Employer may elect to waive such thirty (30) day advance written notice.  In the
event of the  resignation  or removal of a Trustee,  the Employer must appoint a
successor  Trustee if it intends to continue the Plan;  provided,  however,  if,
following such resignation or removal, there is at least one person serving as a
Trustee, no appointment of a successor trustee shall be required. If two or more
persons  hold the  position of Trustee,  in the event of the removal of one such
person,  during any period the selection of a replacement is pending,  or during
any period such person is unable to serve for any reason,  the remaining  person
or persons will act as the Trustee.

         11.20  INTERIM DUTIES AND SUCCESSOR  TRUSTEE.  Each  successor  Trustee
                -------------------------------------
succeeds to the title to the Trust  vested in his  predecessor  by  accepting in
writing his  appointment as successor  Trustee and by filing the acceptance with
the former Trustee and the Plan  Administrator with the signing or filing of any

                                      111
<PAGE>

further statement.  The resigning or removed Trustee, upon receipt of acceptance
in writing of the Trust by the successor Trustee, must execute all documents and
do all acts necessary to vest the title of record in any successor Trustee. Each
successor  Trustee  has and enjoys all of the  powers,  both  discretionary  and
ministerial, conferred under this Plan upon his predecessor. A successor Trustee
is not  personally  liable  for any  act or  failure  to act of any  predecessor
Trustee,  except as required under ERISA.  With the approval of the Employer,  a
successor Trustee, with respect to the Plan, may accept the account rendered and
the property  delivered to it by a  predecessor  Trustee  without  incurring any
liability or responsibility for so doing.

         11.21  VALUATION OF TRUST.  The Trustee must value the Trust Fund as of
                ------------------
each  Adjustment  Date (or other  Valuation  Date) to determine  the fair market
value of each Participant's  Account Balance in the Trust. The Trustee also must
value the Trust  Fund on any other  valuation  dates  which may be  directed  in
writing by the Plan Administrator.

         11.22  AUTHORITY OF TRUSTEE.  All persons  dealing with the Trustee are
                --------------------
hereby  released from any necessity for questioning the authority of the Trustee
hereunder  or to see to the  application  of any  monies,  securities  or  other
property paid or delivered to the Trustee as a purchase price or otherwise.

         11.23  DOCUMENTS  AND NOTICES.  All  documents,  notices,  information,
                ----------------------
accountings,  or other  correspondence  shall be  submitted  by the  Trustee  in
writing over the  signature of a duly  authorized  officer of the Trustee if the
Trustee is a corporate Trustee; and the Employer, the Plan Administrator, or any
other  person or persons to whom such  matters  are  directed  may rely upon the
genuineness  of the  matter  submitted  without  any  duty to  inquire  into its
genuineness.

         11.24  POSTPONEMENT OF ACTION. If any dispute shall arise as to any act
                ----------------------
to be performed by the Trustee,  the Trustee may postpone the performing of such
act until actual adjudication of such dispute shall have been made in a court of
competent  jurisdiction or it shall be indemnified to its  satisfaction  against
loss arising out of such dispute.

         11.25  DELEGATION OF RESPONSIBILITIES.  The Trustee and any other party
                ------------------------------
serving as a  fiduciary  with  respect to the Plan  shall act  prudently  in the
delegation or allocation of  responsibilities  to other  persons,  and if at any
time there is more than one  authorized  Trustee  serving,  each  Trustee  shall
exercise  reasonable care to prevent the other Trustees from committing a breach

                                      112
<PAGE>

of such other Trustees' obligations and responsibilities  hereunder. The Trustee
shall conduct a periodic  review to assure that delegated  functions are carried
out properly.  Neither the Trustee nor any other person serving at any time as a
fiduciary  with respect to the Plan shall be liable for the actions of any other
Trustee or fiduciary unless he participates, approves, acquiesces in or conceals
a breach of obligations and responsibilities committed by the other.

         11.26  DETERMINATION OF ELIGIBILITY.  The Trustee shall not be required
                ----------------------------
to  determine   the  facts   concerning   the   eligibility   of  Employees  for
participation,   their  identity,  the  eligibility  of  Participants  or  their
designated  Beneficiaries  for benefits under the Plan, or the manner and method
of payment or disbursement  of benefits.  In such matters the Trustee shall rely
solely  upon the  written  advice  and  direction  of the  Employer  or the Plan
Administrator,  and shall not be required to question or verify the facts in any
manner or at any time.

         11.27  LIMITATION  ON  LIABILITY  - IF  INVESTMENT  MANAGER,  ANCILLARY
                ----------------------------------------------------------------
TRUSTEE OR INDEPENDENT FIDUCIARY APPOINTED.
------------------------------------------

                  (a) The Trustee is not liable for the acts or omissions of any
         Investment  Manager  the Plan  Administrator  may  appoint,  nor is the
         Trustee under any obligation to invest or otherwise manage any asset of
         the Plan  which is subject to the  management  of a properly  appointed
         Investment  Manager.  The  Plan  Administrator,  the  Trustee  and  any
         properly appointed Investment Manager may execute a letter agreement as
         a part  of this  Plan  delineating  the  duties,  responsibilities  and
         liabilities of the  Investment  Manager with respect to any part of the
         Trust Fund under the control of the Investment Manager.

                  (b) The  limitation  on  liability  described  in this Section
         11.27 also applies to the acts or omissions of any ancillary trustee or
         independent  fiduciary  properly  appointed  under Section 11.29 of the
         Plan. However, if the Trustee,  pursuant to the delegation described in
         Section 11.29 of the Plan,  appoints an ancillary trustee,  the Trustee
         is  responsible  for the  periodic  review of the  ancillary  trustee's
         actions and must  exercise its delegated  authority in accordance  with
         the  terms  of the  Plan and in a manner  consistent  with  ERISA.  The
         Employer,  the  Trustee and an  ancillary  trustee may execute a letter
         agreement  as a part  of  this  Plan  delineating  any  indemnification
         agreement between the parties.

                                      113
<PAGE>

         11.28  INVESTMENT IN GROUP TRUST FUND.
                ------------------------------

                  (a)  The  Employer,   by  adopting  this  Plan,   specifically
         authorizes  the  Trustee  to invest  all or any  portion  of the assets
         comprising  the Trust Fund in any group trust fund which at the time of
         the  investment  provides  for  the  pooling  of the  assets  of  plans
         qualified under Code section 401(a). This authorization  applies solely
         to a group trust fund exempt from  taxation  under Code section  501(a)
         and the trust agreement of which satisfies the  requirements of Revenue
         Ruling  81-100.  The provisions of the group trust fund  agreement,  as
         amended from time to time,  are by this reference  incorporated  within
         this Plan and Trust. The provisions of the group trust fund will govern
         any  investment of Plan assets in that fund.  The Employer must specify
         in an addendum to its Adoption  Agreement,  numbered Section 11.28, the
         group trust fund(s) to which this  authorization  applies.  Pursuant to
         Section  11.07, a Trustee has the authority to invest in certain common
         trust funds and  collective  investment  funds without the need for the
         authorizing addendum described in this Section 11.28.

                  (b) Furthermore, at the Employer's direction, the Trustee, for
         collective  investment  purposes  may  combine  into one trust fund the
         Trust  created  under this Plan with the Trust  created under any other
         qualified retirement plan the Employer maintains.  However, the Trustee
         must maintain  separate records of account for the assets of each Trust
         in order to reflect properly each  Participant's  Account Balance under
         the plan(s) in which he is a Participant.

         11.29  APPOINTMENT OF ANCILLARY TRUSTEE OR INDEPENDENT FIDUCIARY.
                ---------------------------------------------------------

                  (a) The  Employer,  in writing,  may appoint any person in any
         State to act as ancillary trustee with respect to a designated  portion
         of the Trust Fund. An ancillary trustee must acknowledge in writing its
         acceptance of the terms and conditions of its  appointment as ancillary
         trustee and its fiduciary status under ERISA. The ancillary trustee has
         the rights, powers, duties and discretion as the Employer may delegate,
         subject to any  limitations  or directions  specified in the instrument
         evidencing appointment of the ancillary trustee and to the terms of the
         Plan or of ERISA.  The  investment  powers  delegated to the  ancillary
         trustee may include any investment powers available under Section 11.06
         of the Plan  including the right to invest any portion of the assets of
         the Trust Fund in a common  trust fund,  as  described  in Code section

                                      114
<PAGE>

         584, or in any  collective  investment  fund,  the  provisions of which
         govern the investment of such assets and which the Plan incorporates by
         this reference,  but only if the ancillary trustee is a bank or similar
         financial institution supervised by the United States or by a State and
         the  ancillary  trustee (or its  affiliate,  as defined in Code section
         1504)  maintains  the common trust fund or collective  investment  fund
         exclusively for the collective  investment of money  contributed by the
         ancillary  trustee (or its  affiliate) in a trustee  capacity and which
         conforms to the rules of the Comptroller of the Currency.  The Employer
         also may  appoint as an  ancillary  trustee,  the  trustee of any group
         trust fund  designated  for  investment  pursuant to the  provisions of
         Section 11.28 of the Plan.

                  (b) The ancillary  trustee may resign its position at any time
         by providing at least thirty (30) days' advance  written  notice to the
         Employer,  unless the  Employer  waives  this notice  requirement.  The
         Employer,  in writing,  may remove an ancillary trustee at any time. In
         the event of resignation or removal,  the Employer may appoint  another
         ancillary  trustee,  return the assets to the control and management of
         the  Trustee  or  receive  such  assets in the  capacity  of  ancillary
         trustee.  The Employer may  delegate  its  responsibilities  under this
         Section 11.29 to the Trustee under the Plan,  subject to the acceptance
         by the Trustee of that delegation.

                  (c)  If  the  U.S.  Department  of  Labor  (the  "Department")
         requires  engagement  of an  independent  fiduciary  to have control or
         management  of all or a portion of the Trust Fund,  the  Employer  will
         appoint such independent fiduciary, as directed by the Department.  The
         independent fiduciary will have the duties, responsibilities and powers
         prescribed  by  the   Department   and  will  exercise   those  duties,
         responsibilities and powers in accordance with the terms,  restrictions
         and conditions  established  by the  Department  and, to the extent not
         inconsistent  with  ERISA,  the  terms  of the  Plan.  The  independent
         fiduciary must accept its  appointment in writing and must  acknowledge
         its status as a fiduciary of the Plan.

         11.30  PROHIBITED TRANSACTIONS.  Notwithstanding anything herein to the
                -----------------------
contrary,  neither the  Trustee,  nor any other  party at any time  serving as a
fiduciary  with  respect  to the  Plan,  shall  cause  the Plan to engage in any
"prohibited  transactions"  as defined and applicable to this Plan under section
406 of ERISA,  subject to any available and applicable exemption contained in or

                                      115
<PAGE>

allowed by ERISA,  and in complying with such  limitations,  neither the Trustee
nor any other fiduciary shall engage in any transaction which it knows or should
know constitutes a direct or indirect:

                  (a) Sale or exchange,  or leasing, of any property between the
         Trust Fund and a  "party-in-interest"  or a "disqualified person" (such
         terms as used in this Plan  shall  have the  meanings  which  they have
         under ERISA);

                  (b) Lending of money or other  extension of credit between the
         Trust Fund and a party-in-interest or a disqualified person;

                  (c) Furnishing of goods,  services,  or facilities between the
         Trust Fund and a party-in-interest or a disqualified person;

                  (d)  Transfer  to,  or  use  by  or  for  the  benefit  of,  a
         party-in-interest  or a disqualified person, of any assets of the Trust
         Fund; or

                  (e) Acquisition,  on behalf of the Trust Fund, of any Employer
         security or real property which would violate Section 407 of ERISA.

         Unless such transaction is permissible under ERISA, neither the Trustee
nor any other  fiduciary shall deal with the assets of the Trust Fund in its own
interest of for its own account or act in any  transaction  involving  the Trust
Fund on behalf of a party (or represent a party) whose  interests are adverse to
the  interests  of the  Trust  Fund  or the  interests  of its  Participants  or
Beneficiaries. No fiduciary shall receive any consideration for its own personal
account  from  any  party  dealing  with the  Trust  Fund in  connection  with a
transaction involving the assets of the Trust Fund.

                                      116
<PAGE>

                                   ARTICLE XII
                                CLAIMS PROCEDURE

         12.01 FILING A CLAIM. A Participant or Beneficiary shall have the right
               --------------
to file a claim,  inquire if he has any right to benefits,  or appeal the denial
of a claim. A Participant or Beneficiary (the "claimant") shall make a claim for
the  benefits  provided  under the Plan by filing a written  claim with the Plan
Administrator. If the Plan Administrator is a committee and if any member of the
committee  shall be the claimant,  all actions which are required to be taken by
the Plan  Administrator  pursuant  to this  Article  shall be taken  instead  by
another member of the committee as designated by the Employer.

         12.02 NOTIFICATION TO CLAIMANT. The Plan Administrator shall notify the
               ------------------------
claimant  of its  decisions  with  respect to a claim  within  ninety  (90) days
following the receipt of the claim by the Plan  Administrator or any member of a
committee  serving as Plan  Administrator  (or within ninety (90) days following
the expiration of the initial ninety (90) day period,  in a case where there are
special circumstances  requiring extension of time for processing the claim). If
special  circumstances  require an extension of time for  processing  the claim,
written notice of the extension shall be furnished by the Plan  Administrator to
the claimant prior to the expiration of the initial ninety (90) day period.  The
notice of extension  shall  indicate  the special  circumstances  requiring  the
extension and the date by which the notice of decision with respect to the claim
shall be furnished.  Commencement of benefit payments shall constitute notice of
approval of a claim to the extent of the amount of the approved benefit. If such
claim shall be wholly or partially  denied,  such notice shall be in writing and
worded in a manner  calculated to be  understood by the claimant,  and shall set
forth:

                  (a) The specific reason or reasons for the denial;

                  (b) Specific  reference to the Plan  provisions  that apply in
         the case;

                  (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 Plan's claims review procedure.

                                      117
<PAGE>

If the Plan Administrator fails to notify the claimant of the decision regarding
his claim in accordance with this Article,  the claim shall be deemed denied and
the claimant shall then be permitted to proceed with the claims review procedure
provided in Section 12.03.

         12.03 CLAIMS REVIEW PROCEDURE. Within sixty (60) days following receipt
               -----------------------
by the  claimant  of notice  of the claim  denial,  or  within  sixty  (60) days
following the close of the ninety (90) day period  referred to in Section 12.02,
if the Plan  Administrator  fails to notify the claimant of the decision  within
such  ninety  (90) day period,  the  claimant  may appeal the denial by filing a
written  application  for review  with the Plan  Administrator.  Following  such
request for review,  the Plan  Administrator  shall fully and fairly  review the
decision  denying the claim.  Prior to the  decision  of the Plan  Administrator
pursuant to Section 12.04,  the claimant shall be given an opportunity to review
pertinent documents and to submit issues and comments in writing.

         12.04  DECISION ON REVIEW.  The  decision  on review of a denied  claim
                ------------------
shall be made in the following manner:

                  (a) The Plan  Administrator  shall make its decision regarding
         the merits of the denied  claim  promptly,  and within  sixty (60) days
         following  receipt by the Plan  Administrator of the request for review
         (or within one hundred twenty (120) days after such receipt,  in a case
         where there are special  circumstances  requiring extension of time for
         reviewing  the  appealed  claim),  shall  deliver  the  decision to the
         claimant in writing. If an extension of time for reviewing the appealed
         claim is required because of special  circumstances,  written notice of
         the  extension  shall  be  furnished  to  the  claimant  prior  to  the
         commencement  of  the  extension.  If the  decision  on  review  is not
         furnished  within the prescribed time, the claim shall be deemed denied
         on review.

                  (b) The  decision on review shall set forth  specific  reasons
         for  the  decision,  shall  be  written  in a  manner  designed  to  be
         understood by the claimant,  and shall cite specific  references to the
         pertinent Plan provisions on which the decision is based.

                  (c) The decision of the Plan Administrator  shall be final and
         conclusive.

                                      118
<PAGE>

         12.05  ACTION BY AUTHORIZED REPRESENTATIVE OF CLAIMANT. All actions set
                -----------------------------------------------
forth in this  Article to be taken by the  claimant  may  likewise be taken by a
representative  of the claimant  duly  authorized by him to act in his behalf on
such  matters.  The Plan  Administrator  may  require  such  evidence  as it may
reasonably deem necessary or advisable of any such representative's authority to
act.

                                      119
<PAGE>

                                  ARTICLE XIII
             PROVISIONS RELATING TO INSURANCE AND INSURANCE COMPANY

         13.01  INVESTMENT IN INSURANCE.  The Employer may elect in its Adoption
                -----------------------
Agreement  Section 13.01 whether  insurance  shall be permitted as an investment
under the Plan. If insurance is permitted,  such investment shall be governed by
the provisions of this Article XIII. If, in the  Employer's  Adoption  Agreement
Section 9.09, the Employer permits  Participants to direct all or any portion of
their  respective  Account  Balances  under the Plan,  and the Employer  further
permits,  in its Adoption  Agreement  Section 13.01,  insurance as an investment
option  available under the Plan, each  Participant may direct the Trustee as to
the purchase of insurance  with respect to his Account  Balance.  The  remaining
provisions of this Article XIII apply only if the Employer has elected to permit
the purchase of life insurance under the Plan.

         13.02  INSURANCE BENEFIT.
                -----------------

                  (a)  The  Employer  may  elect  to  provide   incidental  life
         insurance  benefits  for  insurable  Participants  who  consent to life
         insurance  benefits  by  signing  the  appropriate   insurance  company
         application  form.  The Trustee will not purchase any  incidental  life
         insurance  benefit for any  Participant  prior to an  allocation to the
         Participant's  Account. At an insured  Participant's written direction,
         the  Trustee  will  use  all  or  any  portion  of  the   Participant's
         nondeductible  voluntary  contributions,   if  any,  to  pay  insurance
         premiums  covering the  Participant's  life.  This  Section  13.02 also
         authorizes  the  purchase  of life  insurance,  for the  benefit of the
         Participant,  on the life of a Family Member of the  Participant  or on
         any person in whom the Participant has an insurable interest.  However,
         if the  policy is on the joint  lives of the  Participant  and  another
         person,  the Trustee may not maintain  that policy if that other person
         predeceases the Participant.

                  (b) The Employer  will direct the Trustee as to the  insurance
         company and  insurance  agent  through which the Trustee is to purchase
         the insurance contracts,  the amount of the coverage and the applicable
         dividend  plan.  Each  application  for  a  policy,  and  the  policies
         themselves,  must  designate the Trustee as sole owner,  with the right
         reserved to the Trustee to exercise  any right or option  contained  in
         the policies,  subject to the terms and  provisions  of this Plan.  The
         Trustee  must be the named  beneficiary  for the Account of the insured

                                      120
<PAGE>

         Participant.  Proceeds of insurance contracts paid to the Participant's
         Account  under  this  Article  XIII  are  subject  to the  distribution
         requirements  of Article V and of  Article  VI.  The  Trustee  will not
         retain any such proceeds for the benefit of the Trust.

                  (c) The  Trustee  will charge the  premiums on any  incidental
         benefit insurance  contract covering the life of a Participant  against
         the Account of that  Participant.  The Trustee will hold all incidental
         benefit  insurance  contracts  issued  under  the Plan as assets of the
         Trust created under the Plan.

         13.03  INCIDENTAL INSURANCE  BENEFITS.  The aggregate of life insurance
                ------------------------------
premiums paid for the benefit of a Participant, at all times, may not exceed the
following percentages of the aggregate of the Employer's contributions allocated
to any Participant's  Account:  (a) forty-nine (49%) in the case of the purchase
of ordinary life insurance  contracts  (contracts with both nondecreasing  death
benefits and  nonincreasing  premiums);  or (b) twenty-five (25%) in the case of
the purchase of term life insurance or universal  life  insurance  contracts and
all other life insurance  contracts  which are not ordinary life. If the Trustee
purchases a combination  of ordinary life  insurance  contract(s)  and term life
insurance or universal life insurance  contract(s),  then the sum of one-half of
the premiums paid for the ordinary life insurance  contract(s)  and the premiums
paid for the term life insurance or universal life insurance contract(s) may not
exceed  twenty-five  (25%)  of  the  Employer  contributions  allocated  to  any
Participant's  Account.  The incidental  insurance benefits requirement does not
apply  to the Plan if the Plan  purchases  life  insurance  benefits  only  from
Employer contributions accumulated in the Participant's Account for at least two
years (measured from the allocation date).

         13.04  LIMITATION ON LIFE  INSURANCE  PROTECTION.  The Trustee will not
                -----------------------------------------
continue any life insurance  protection for any  Participant  beyond his Annuity
Starting  Date (as defined in Article VI). If the Trustee  holds any  incidental
benefit  insurance  contract(s)  for  the  benefit  of  a  Participant  when  he
terminates  his  employment  (other than by reason of death),  the Trustee  must
proceed as follows:

                  (a) If the entire cash value of the  contract(s)  is vested in
         the terminating  Participant,  or if the contract(s)  will have no cash
         value at the end of the policy year in which  termination of employment
         occurs,  the Trustee will transfer the  contract(s) to the  Participant

                                      121
<PAGE>

         endorsed so as to vest in the transferee all right,  title and interest
         to the contract(s),  free and clear of the Trust;  subject however,  to
         restrictions  as to  surrender  or payment of  benefits  as the issuing
         insurance company may permit and as the Plan Administrator directs;

                  (b) If only  part of the  cash  value  of the  contract(s)  is
         vested in the terminating  Participant,  the Trustee, to the extent the
         Participant's  interest  in the cash  value of the  contract(s)  is not
         vested,  may  adjust  the  Participant's  interest  in the value of his
         Account  attributable  to Trust  assets other than  incidental  benefit
         insurance contracts and proceed as in (a), or the Trustee must effect a
         loan from the  issuing  insurance  company on the sole  security of the
         contract(s)  for an amount  equal to the  difference  between  the cash
         value  of the  contract(s)  at the  end of the  policy  year  in  which
         termination of employment  occurs and the amount of the cash value that
         is vested in the terminating Participant, and the Trustee must transfer
         the  contract(s)  endorsed so as to vest in the  transferee  all right,
         title and  interest  to the  contract(s),  free and clear of the Trust;
         subject  however,  to the  restrictions  as to  surrender or payment of
         benefits  as the  issuing  insurance  company  may  permit and the Plan
         Administrator directs;

                  (c) If no part of the cash value of the  contract(s) is vested
         in  the  terminating  Participant,   the  Trustee  must  surrender  the
         contract(s) for cash proceeds as may be available.

         In accordance with the written direction of the Plan Administrator, the
Trustee will make any transfer of  contract(s)  under this Section  13.04 on the
Participant's Annuity Starting Date (or as soon as administratively  practicable
after that date).  The Trustee may not transfer any contract  under this Section
13.04 which contains a method of payment not specifically  authorized by Article
VI or  which  fails  to  comply  with  the  survivor  annuity  requirements,  if
applicable,  of Article VI. In this regard, the Trustee either must convert such
a contract to cash and  distribute  the cash instead of the contract,  or before
making the  transfer,  require  the issuing  company to delete the  unauthorized
method of payment option from the contract.

         13.05  DEFINITIONS.  For purposes of this Article XIII:
                -----------

                  (a) "Policy"  means an ordinary life  insurance  contract or a
         term life  insurance  contract  issued by an  insurer  on the life of a
         Participant.

                                      122
<PAGE>

                  (b) "Issuing  insurance company" is any life insurance company
         which has issued a policy upon  application  by the  Trustee  under the
         terms of this Plan.

                  (c) "Contract" or "Contracts" means a policy of insurance.  In
         the event of any conflict  between the  provisions of this Plan and the
         terms of any contract or policy of insurance  issued in accordance with
         this Article XIII, the provisions of the Plan control.

                  (d)  "Insurable  Participant"  means a Participant  to whom an
         insurance  company,  upon an application  being submitted in accordance
         with the Plan, will issue insurance coverage, either as a standard risk
         or as a risk in an extra mortality classification.

         13.06  DIVIDEND PLAN. The dividend plan is premium reduction unless the
                -------------
Plan Administrator directs the Trustee to the contrary. The Trustee must use all
dividends for a contract to purchase insurance benefits or additional  insurance
benefits for the Participant on whose life the insurance  company has issued the
contract.  Furthermore,  the  Trustee  must  arrange,  where  possible,  for all
policies  issued  on the lives of  Participants  under the Plan to have the same
premium due date and all ordinary life insurance contracts to contain guaranteed
cash values with as uniform  basic  options as are possible to obtain.  The term
"dividends" includes policy dividends, refunds of premiums and other credits.

         13.07 INSURANCE COMPANY NOT A PARTY TO AGREEMENT. No insurance company,
               ------------------------------------------
solely in its capacity as an issuing insurance company,  is a party to this Plan
nor is the company responsible for its validity.

         13.08  INSURANCE  COMPANY NOT  RESPONSIBLE  FOR TRUSTEE'S  ACTIONS.  No
                -----------------------------------------------------------
insurance company,  solely in its capacity as an issuing insurance company, need
examine the terms of this Plan nor is  responsible  for any action  taken by the
Trustee.

         13.09  INSURANCE  COMPANY  RELIANCE  ON  TRUSTEE'S  SIGNATURE.  For the
                ------------------------------------------------------
purpose of making application to an insurance company and in the exercise of any
right or option contained in any policy, the insurance company may rely upon the
signature of the Trustee and is saved  harmless  and  completely  discharged  in
acting at the direction and authorization of the Trustee.

                                      123
<PAGE>

         13.10  ACQUITTANCE.   An  insurance  company  is  discharged  from  all
                -----------
liability  for any amount  paid to the  Trustee or paid in  accordance  with the
direction  of the  Trustee,  and is not  obliged to see to the  distribution  or
further application of any monies it so pays.

         13.11  DUTIES OF INSURANCE COMPANY.  Each  insurance  company must keep
                ---------------------------
such records,  make such  identification  of contracts,  funds and accounts with
funds,  and  supply  such  information  as  may  be  necessary  for  the  proper
administration of the Plan under which it is carrying insurance benefits.

                                      124
<PAGE>

                                   ARTICLE XIV
                                  MISCELLANEOUS

         14.01 PURPOSE OF PLAN AND TRUST. This Plan is created for the exclusive
               -------------------------
benefit  of  Employees  of the  Employer  and their  Beneficiaries  and shall be
interpreted in a manner consistent with its being an Employees' Trust as defined
in Code section 401(a).  At no time prior to the satisfaction of all liabilities
with respect to Employees and their  Beneficiaries  shall any part of the corpus
or income of this Trust be used for, or diverted to, purposes other than for the
exclusive   benefit  of   Employees  of  the   Employer   hereunder,   or  their
beneficiaries.  This Section  cannot be altered or amended except to accord with
any amendment of Code section 401(a)(2).

         14.02  ALTERNATIVE  ACTS. If it becomes  impossible for the Employer or
                -----------------
the Trustee to perform any act under this Trust,  that act shall be performed in
a manner which in the judgment of the Plan  Administrator will most nearly carry
out the intent and  purpose of this  Trust.  All parties to this Trust or in any
way  interested  herein  shall  be  bound  by  any  acts  performed  under  such
conditions.

         14.03  NECESSARY  ACTS.  All  parties  to this  Trust  and all  persons
                ---------------
claiming any interest whatsoever hereunder agree to perform any and all acts and
execute any and all documents and papers which may be necessary or desirable for
the carrying out of this Trust or any of its provisions.

         14.04  MAXIMUM DURATION.  If the  indefinite  continuance of this Trust
                ----------------
would be in violation of the law, then this Trust shall continue for the maximum
period permitted by law and shall then terminate,  whereupon distribution of its
assets shall be made as provided  under the provisions of this Plan with respect
to the termination of the Trust.

         14.05  BINDING EFFECT.  The  Plan  shall be binding upon the successors
                --------------
and assigns of any and all parties hereto, present and future.

         14.06 EVIDENCE. Anyone required to give evidence under the terms of the
               --------
Plan may do so by certificate,  affidavit,  document or other  information which
the person to act in reliance may consider pertinent,  reliable and genuine, and
to have been signed, made or presented by the proper party or parties.  The Plan

                                      125
<PAGE>

Administrator and the Trustee are fully protected in acting and relying upon any
evidence described under the immediately preceding sentence.

         14.07  NO RESPONSIBILITY  FOR EMPLOYER ACTION.  Neither the Trustee nor
                --------------------------------------
the Plan Administrator has any obligation or responsibility  with respect to any
action  required by the Plan to be taken by the  Employer,  any  Participant  or
eligible Employee, or for failure of any of the above persons to act or make any
payment or contribution,  or to otherwise provide any benefit contemplated under
this  Plan.  Furthermore,  the Plan does not  require  the  Trustee  or the Plan
Administrator  to  collect  any  contribution  required  under the  Plan,  or to
determine the  correctness of the amount of any Employer  contribution.  Neither
the Trustee nor the Plan  Administrator  need inquire into or be responsible for
any action or failure  to act on the part of the  others,  or on the part of any
other person who has any responsibility regarding the management, administration
or  operation  of the Plan,  whether  by the  express  terms of the Plan or by a
separate  agreement  authorized by the Plan or by the  applicable  provisions of
ERISA.  Any action  required  of a  corporate  Employer  must be by its Board of
Directors or its designate.

         14.08 FIDUCIARIES NOT INSURERS. The Trustee, the Plan Administrator and
               ------------------------
the Employer in no way guarantee the Trust Fund from loss or  depreciation.  The
Employer  does not guarantee the payment of any money which may be or become due
to any person from the Trust Fund. The liability of the Plan  Administrator  and
the Trustee to make any payment from the Trust Fund at any time and all times is
limited to the then available assets of the Trust.

         14.09  WAIVER OF NOTICE.  Any person  entitled to notice under the Plan
                ----------------
may waive the notice,  unless the Code or  Treasury  regulations  prescribe  the
notice or ERISA specifically or impliedly prohibits such a waiver.

         14.10  SUCCESSORS.  The Plan is binding  upon all  persons  entitled to
                ----------
benefits under the Plan, their respective heirs and legal representatives,  upon
the  Employer,  its  successors  and  assigns,  and upon the  Trustee,  the Plan
Administrator and their successors.

         14.11  NONALIENATION OF BENEFITS.
                -------------------------

                  (a) Benefits  payable  under this Plan shall not be subject in
         any manner to anticipation,  alienation,  sale,  transfer,  assignment,

                                      126
<PAGE>

         pledge,  encumbrance,  charge,  garnishment,  execution, or levy of any
         kind,  either  voluntary or  involuntary  (unless such liability is for
         alimony or other payments for the support of a spouse or former spouse,
         or for any other relative of the Participant under a qualified domestic
         relations  order),  prior to  actually  being  received  by the  person
         entitled  to the  benefit  under the terms of the Plan.  Any attempt to
         anticipate,  alienate, sell, transfer, assign, pledge, encumber, charge
         or otherwise dispose of any right to benefits payable hereunder,  shall
         be void.  The Trust  Fund  shall not in any  manner be liable  for,  or
         subject to, the debts, contracts, liabilities,  engagements or torts of
         any person entitled to benefits hereunder.

                  (b) In any action or  proceeding  involving the Trust Fund, or
         any property  constituting part or all thereof,  or the  administration
         thereof, the Employer, the Plan Administrator, and the Trustee shall be
         the only necessary parties, and no Employees or former Employees of the
         Employer or their  beneficiaries or any other person having or claiming
         to have an  interest  in the  Trust  Fund or under  the  Plan  shall be
         entitled to any notice or service of procesection

                  (c) Any final  judgment  which is not  appealed or  appealable
         that may be entered in any such action or  proceeding  shall be binding
         and conclusive on the parties hereto,  the Plan  Administrator  and all
         persons  having or claiming  to have any  interest in the Trust Fund or
         under the Plan.

         14.12 RIGHTS TO TRUST ASSETS.  No Participant  shall have any right to,
               ----------------------
or interest in, any assets of the Trust Fund upon  termination  of employment or
otherwise, except as provided for under the terms of this Plan, and then only to
the extent of the benefits payable under the Plan to such Participant out of the
assets of the Trust Fund.  Except as otherwise may be provided under Title IV of
ERISA,  all  payments of  benefits  as  provided  for in this Plan shall be made
solely out of the assets of the Trust Fund and none of the fiduciaries  shall be
liable therefor in any manner.

         14.14  HEADINGS. The headings of Articles and Sections are for the ease
                --------
of  reference  only and  shall in no way be  construed  to limit or  modify  the
detailed provisions hereof.

                                      127
<PAGE>

         14.14  GENDER AND NUMBER. Masculine pronouns shall include the feminine
                -----------------
gender (and vice  versa),  and the singular  shall  include the plural (and vice
versa) unless the context indicates otherwise. The pronouns "it" and "its" shall
refer to a natural person (and vice versa) if the context so requires.

         14.15 STATE LAW. The law of the state of the Employer's principal place
               ---------
of business  (unless  otherwise  designated  in an  addendum  to the  Employer's
Adoption Agreement, numbered Section 14.15) will determine all questions arising
with respect to the  provisions of this Plan except to the extent  superseded by
Federal law.

         14.16 EMPLOYER'S RIGHT TO PARTICIPATE.  If the Employer's Plan fails to
               -------------------------------
qualify or to maintain  qualification  or if the Employer makes any amendment or
modification  to a provision of this Plan (other than a proper  completion of an
elective provision under the Adoption Agreement or the attachment of an addendum
authorized by the Plan or by the Adoption Agreement), the Employer may no longer
participate  under this Volume Submitter Plan.  Furthermore,  if the Employer no
longer is a client of the Volume  Submitter  Sponsor,  subsequent  amendments to
this Volume Submitter Plan by the Volume Submitter Sponsor,  pursuant to Section
15.04, will result in the discontinuance of the Employer's participation in this
Volume Submitter Plan unless it resumes its client  relationship with the Volume
Submitter  Sponsor.  If the Employer is not entitled to  participate  under this
Volume Submitter Plan, the Employer's Plan is an individually-designed  plan and
the  reliance  procedures  specified  in the  Adoption  Agreement no longer will
apply.

         14.17  EMPLOYMENT NOT  GUARANTEED.  Nothing  contained in this Plan, or
                --------------------------
with respect to the establishment of the Trust, or any modification or amendment
to the Plan or Trust,  or in the creation of any Account,  or the payment of any
benefit, gives any Employee,  Employee-Participant  or any Beneficiary any right
to continue  employment,  any legal or equitable right against the Employer,  or
Employee of the Employer, or against the Trustee, or its agents or employees, or
against the Plan  Administrator,  except as expressly  provided by the Plan, the
Trust, ERISA or by a separate agreement.

                                      128

<PAGE>

                                   ARTICLE XV
                    EXCLUSIVE BENEFIT, AMENDMENT, TERMINATION

         15.01  EXCLUSIVE  BENEFIT.  Except as  provided  under  Article IV, the
                ------------------
Employer has no beneficial interest in any asset of the Trust and no part of any
asset in the Trust  may ever  revert  to or be  repaid  to an  Employer,  either
directly or indirectly;  nor, prior to the  satisfaction of all liabilities with
respect to the Participants and their Beneficiaries under the Plan, may any part
of the corpus or income of the Trust Fund, or any asset of the Trust, be (at any
time) used for, or diverted to, purposes other than the exclusive benefit of the
Participants or their  Beneficiaries.  However,  if the Commissioner of Internal
Revenue,  upon  the  Employer's  request  for  initial  approval  of this  Plan,
determines the Trust created under the Plan is not a qualified trust exempt from
Federal  income tax, then (and only then) the Trustee,  upon written notice from
the  Employer,   will  return  the  Employer's   contributions   (and  increment
attributable to the  contributions)  to the Employer.  The Trustee must make the
return of the Employer contribution under this Section 15.01 within one (1) year
of a final  disposition  of the Employer's  request for initial  approval of the
Plan. The Employer's Plan and Trust will terminate upon the Trustee's  return of
the Employer's contributions.

         15.02  AMENDMENT BY EMPLOYER.  The Employer has the  right at  any time
                ---------------------
and from time to time:

                  (a) To amend the elective provisions of the Adoption Agreement
         in any manner it deems  necessary  or advisable in order to qualify (or
         maintain  qualification  of) this Plan and the Trust  created  under it
         under the provisions of Code section 401(a);

                  (b) To amend  the Plan to allow  the Plan to  operate  under a
         waiver of the minimum funding requirement; and

                  (c)  To amend this Agreement in any other manner.

         No amendment  may authorize or permit any of the Trust Fund (other than
the part which is required to pay taxes and administration  expenses) to be used
for or  diverted  to  purposes  other  than  for the  exclusive  benefit  of the
Participants or their Beneficiaries or estates. No amendment may cause or permit
any portion of the Trust Fund to revert to or become a property of the Employer.
The Employer also may not make any amendment which affects the rights, duties or
responsibilities  of the Trustee or the Plan  Administrator  without the written

                                      129
<PAGE>

consent of the affected  Trustee or the Plan  Administrator.  The Employer  must
make all  amendments in writing.  Each amendment must state the date to which it
is either  retroactively or prospectively  effective.  See Section 14.16 for the
effect of certain amendments adopted by the Employer.

         15.03  CODE  SECTION  411(d)(6)   PROTECTED   BENEFITS.   An  amendment
                -----------------------------------------------
(including  the adoption of this Plan as a restatement  of an existing plan) may
not decrease a Participant's  Account  Balance,  except to the extent  permitted
under Code  section  412(c)(8),  and may not reduce or  eliminate  Code  section
411(d)(6) protected benefits  determined  immediately prior to the adoption date
(or, if later,  the effective  date) of the amendment.  An amendment  reduces or
eliminates Code section  411(d)(6)  protected  benefits if the amendment has the
effect of either (a)  eliminating or reducing an early  retirement  benefit or a
retirement-type  subsidy (as defined in Treasury regulations),  or (b) except as
provided by Treasury  regulations,  eliminating an optional form of benefit. The
Plan  Administrator must disregard an amendment to the extent application of the
amendment  would fail to satisfy this Section.  If the Plan  Administrator  must
disregard an amendment  because the amendment would violate clause (a) or clause
(b), the Plan  Administrator  must  maintain a schedule of the early  retirement
option  or other  optional  forms of  benefit  the Plan  must  continue  for the
affected Participants.

         15.04 AMENDMENT BY VOLUME SUBMITTER PLAN SPONSOR.  The Volume Submitter
               ------------------------------------------
Plan Sponsor, without the Employer's consent, may amend the Plan and Trust, from
time to time,  in order to  conform  the Plan and Trust to any  requirement  for
qualification  of the Plan and Trust under the Code.  The Volume  Submitter Plan
Sponsor  may not amend the Plan in any manner  which would  modify any  election
made by the Employer  under the Plan  without the  Employer's  written  consent.
Furthermore,  the Volume  Submitter  Plan  Sponsor may not amend the Plan in any
manner  which would  violate the  proscription  of Sections  15.02 and 15.03.  A
Trustee does not have the power to amend the Plan or Trust.

         15.05  DISCONTINUANCE.  The  Employer  has the right,  at any time,  to
suspend or discontinue its  contributions  under the Plan, and to terminate,  at
any time,  this Plan and the Trust created under this  Agreement.  The Plan will
terminate upon the first to occur of the following:

                  (a)  The date terminated by action of the Employer;

                                      130
<PAGE>

                  (b) The  dissolution  or merger of the  Employer,  unless  the
         successor  makes  provision  to continue  the Plan,  in which event the
         successor must  substitute  itself as the Employer under this Plan. Any
         termination  of the Plan resulting  from this  subparagraph  (b) is not
         effective  until  compliance  with any applicable  notice  requirements
         under ERISA.

         15.06  FULL  VESTING  ON  TERMINATION.  Upon  either  full  or  partial
                ------------------------------
termination  of the Plan,  or, if applicable,  upon complete  discontinuance  of
profit sharing plan contributions to the Plan, an affected  Participant's  right
to  his  Account   Balance  is  one  hundred   percent  (100%)   Nonforfeitable,
irrespective of the Nonforfeitable  percentage which otherwise would apply under
Article V.

         15.07  MERGER/DIRECT TRANSFER.
                ----------------------

                  (a) The  Trustee  may not  consent  to, or be a party to,  any
         merger or  consolidation  with another plan, or to a transfer of assets
         or liabilities to another plan,  unless  immediately  after the merger,
         consolidation or transfer, the surviving Plan provides each Participant
         a benefit equal to or greater than the benefit each  Participant  would
         have received had the Plan terminated  immediately before the merger or
         consolidation or transfer. The Trustee possesses the specific authority
         to enter into merger agreements or direct transfer of assets agreements
         with the trustees of other  retirement  plans described in Code section
         401(a),  including  an  elective  transfer,  and to accept  the  direct
         transfer of plan assets,  or to transfer plan assets, as a party to any
         such agreement.

                  (b) If  this  Plan  is not  subject  to the  survivor  annuity
         requirements  of the Code, and the Trustee accepts a transfer of assets
         from  a  qualified  plan  which  is  subject  to the  survivor  annuity
         requirements of the Code, such assets shall be separately accounted for
         at all times and shall be  administered  and  distributed in accordance
         with the  provisions  of Section  6.06(b),  or Section 6.07 or 6.08, if
         applicable.   If  this  Plan  is  subject  to  the   survivor   annuity
         requirements  of the Code,  the Trustee may accept a transfer of assets
         from a  qualified  plan which is not  subject to the  survivor  annuity
         requirements  of the Code,  provided  such assets  shall be  separately
         accounted for at all times and shall be administered and distributed in
         accordance with the provisions of Section  6.06(a),  or Section 6.07 or
         6.08, if applicable.

                                      131
<PAGE>

                  (c) The Trustee may accept a direct transfer of plan assets on
         behalf of an  Employee  prior to the date the  Employee  satisfies  the
         Plan's  eligibility  conditions.  If the Trustee  accepts such a direct
         transfer of plan assets,  the Plan Administrator and Trustee must treat
         the Employee as a  Participant  for all purposes of the Plan except the
         Employee  is not a  Participant  for  purposes  of sharing in  Employer
         contributions  or  Participant  forfeitures  under  the  Plan  until he
         actually becomes a Participant in the Plan.

                  (d) If the Plan  receives  a direct  transfer  (by  merger  or
         otherwise) of Elective  Contributions  (or amounts  treated as Elective
         Contributions) under a Plan with a Code section 401(k) arrangement, the
         distribution  restrictions  of Code  sectionsection  401(k)(2) and (10)
         continue to apply to those transferred Elective Contributions.

         15.08  ELECTIVE TRANSFERS.  The Trustee,  after August 9, 1988, may not
                ------------------
consent to, or be a party to a merger,  consolidation or transfer of assets with
a defined benefit plan, except with respect to an elective  transfer,  or unless
the transferred benefits are in the form of paid-up individual annuity contracts
guaranteeing  the payment of the  transferred  benefits in  accordance  with the
terms of the transferor  plan and in a manner  consistent with the Code and with
ERISA. The Trustee will hold,  administer and distribute the transferred  assets
as a part of the Trust Fund and the Trustee  must  maintain a separate  Employer
contribution Account for the benefit of the Employee on whose behalf the Trustee
accepted the transfer in order to reflect the value of the  transferred  assets.
Unless a transfer of assets to this Plan is an elective transfer,  the Plan will
preserve all Code section  411(d)(6)  protected  benefits  with respect to those
transferred  assets,  in the manner described in Section 15.03. A transfer is an
elective transfer if:

                  (a) the transfer satisfies the first paragraph of this Section
         15.08;

                  (b) the transfer is voluntary, under a fully informed election
         by the Participant;

                  (c) the Participant  has an alternative  that retains his Code
         section 411(d)(6)  protected benefits (including an option to leave his
         benefit in the transferor plan, if that plan is not terminating);

                  (d) the transfer  satisfies  the  applicable  spousal  consent
         requirements of the Code;

                                      132
<PAGE>

                  (e) the  transferor  plan  satisfies  the joint  and  survivor
         annuity  notice   requirements  of  the  Code,  if  the   Participant's
         transferred benefit is subject to those requirements;

                  (f) the Participant has a right to immediate distribution from
         the transferor plan, in lieu of the elective transfer;

                  (g) the  transferred  benefit  is at least the  greater of the
         single sum  distribution  provided by the transferor plan for which the
         Participant is eligible or the Participant's  accrued benefit under the
         transferor plan payable at that plan's normal retirement age;

                  (h)  the   Participant   has  a  one  hundred  percent  (100%)
         Nonforfeitable interest in the transferred benefit; and

                  (i)  the  transfer  otherwise  satisfies  applicable  Treasury
         regulations.

         An elective transfer may occur between qualified plans of any type. Any
direct  transfer of assets  from a defined  benefit  plan after  August 9, 1988,
which does not satisfy the  requirements  of this Section  15.08 will render the
Employer's Plan individually-designed. See Section 14.16.

         15.09  TERMINATION.
                -----------

                  (a) If the Employer decides it is impossible or inadvisable to
         make  contributions  as herein  provided,  the Employer  shall have the
         power  to  terminate   the  Plan  with  respect  to  its  Employees  by
         appropriate  resolution.   A  certified  copy  of  such  resolution  or
         resolutions shall be delivered to the Trustee,  and as soon as possible
         thereafter, the Plan Administrator shall send or deliver a copy of said
         resolutions to each  Participant,  or otherwise notify each Participant
         whose membership  arises by reason of his employment with the Employer.
         After the date specified in such  resolutions,  the Employer shall make
         no further  contributions  under the Plan.  The Trust,  however,  shall
         remain in existence as well as all other provisions of the Plan, except
         for  provisions for  contributions  by the Employer.  Furthermore,  the
         provisions for forfeitures by  Participants  shall remain in full force
         and effect.  All Account Balances of Participants  shall continue to be

                                      133
<PAGE>

         held,  administered  and  distributed by the Trustee in accordance with
         the provisions of the Plan.

                  (b) If the Employer  shall decide to terminate  completely the
         Plan and the Trust with  respect  to its  Employees,  such  termination
         shall be effective as of a date to be specified in certified  copies of
         its  resolutions to be delivered to its  Participants  and the Trustee,
         conditioned  on  the   satisfaction   of  all   applicable   regulatory
         requirements. Upon termination of the Plan and Trust, and after payment
         of all expenses and proportional adjustment of Accounts of Employees to
         reflect such expenses,  Trust fund profit or losses,  and reallocations
         to the  date of  termination,  each  employed  or  retired  Participant
         entitled to receive  benefits  shall be entitled to receive his Account
         Balance.  The  Trustee  shall  make  payment  of  such  amounts  to the
         Participants  in  accordance  with the  provisions of Article VI above,
         unless  the   Employer   shall   direct  that  payment  be  made  in  a
         Trustee-to-Trustee transfer to another qualified plan.

                  (c) The portion of the  Participant's  Nonforfeitable  Account
         Balance  attributable to Elective  Contributions (or to amounts treated
         under the Code section 401(k) arrangement as Elective Contributions) is
         not distributable on account of Plan termination,  as described in this
         Section 15.09, unless: (a) the Participant  otherwise is entitled under
         the  Plan to a  distribution  of  that  portion  of his  Nonforfeitable
         Account  Balance;  or (b)  the  Plan  termination  occurs  without  the
         establishment of a successor plan. A successor plan under clause (b) is
         a defined  contribution  plan  (other than an ESOP)  maintained  by the
         Employer (or by an Affiliated  Employer) at the time of the termination
         of the Plan or within the period  ending  twelve (12) months  after the
         final distribution of assets. A distribution made after March 31, 1988,
         pursuant to clause (b), must be part of a lump sum  distribution to the
         Participant of his Nonforfeitable Account Balance.

         15.10.  EXERCISE OF AUTHORITY.  To the extent that the Employer has the
                 ---------------------
authority to amend or terminate  the Plan,  including the adoption of amendments
authorized  by Section  15.02 and the  termination  of the Plan as authorized by
Sections 15.05 and 15.09,  such authority shall be exercised as follows:  (i) if
the Employer is a Corporation,  by resolution of its board of directors; (ii) if
the Employer is an unincorporated entity, by appropriate action of its governing
body; or (iii) if the Employer is a sole  proprietor,  by appropriate  action of

                                      134
<PAGE>

such individual.  In addition,  such authority shall be exercised in conformance
with the internal guidelines  established by such board of directors,  governing
body or individual and in a manner  consistent  with the  requirements  of ERISA
Section  402(b)(3),  as determined by the Plan Administrator and communicated to
Participants.

                                       135

<PAGE>

                                   ARTICLE XVI
                             PARTICIPATING EMPLOYERS

         16.01  PARTICIPATING EMPLOYERS.
                -----------------------

                  (a) The term "Employer" shall include any Affiliated  Employer
         for  purposes  of  crediting  Hours of  Service,  determining  Years of
         Service and Breaks in Service under  Articles III and VI,  applying the
         participation  and coverage tests described in Article IV, applying the
         limitations on allocations in Article IV,  applying the top-heavy rules
         and the minimum  allocation  requirements of Articles IV and XVIII, the
         definitions of Employee, Highly Compensated Employee,  Compensation and
         Leased  Employee,  and for any other purpose required by the applicable
         Code Section or by a Plan provision.

                  (b) An Affiliated  Employer may contribute to the Plan only by
         being a signatory to the Execution Page of the Adoption Agreement or to
         a  Participation  Agreement  to the  Employer's  Adoption  Agreement (a
         "Participating  Employer").  If one or more of the Affiliated Employers
         become Participating  Employers by executing a Participation  Agreement
         to the Employer's Adoption Agreement,  the term "Employer" includes the
         Participating  Employer  for  all  purposes  of  the  Plan,  and  "Plan
         Administrator"  means  the  Employer  that  is  the  signatory  to  the
         Execution  Page of the  Adoption  Agreement,  or such  other  person or
         entity  designated  by that  Employer  pursuant to Section 10.01 of the
         Plan.

                  (c) The Employer must specify in Section 16.01 of its Adoption
         Agreement,  whether the employees of Affiliated  Employers that are not
         Participating  Employers are eligible to  participate  in the Plan. The
         Employer may elect to exclude from the definition of "Compensation" for
         allocation  purposes  any  Compensation  received  from  an  Affiliated
         Employer  that has not  executed a  Participation  Agreement  and whose
         employees are not eligible to participate in the Plan.

         16.02  REQUIREMENTS OF PARTICIPATING EMPLOYERS.
                ---------------------------------------

                  (a) Each such Participating  Employer shall be required to use
         the same Trustee as provided in this Plan.

                  (b) The Trustee may, but shall not be required to,  commingle,
         hold  and  invest  as  one  Trust  Fund  all   contributions   made  by

                                      136
<PAGE>

         Participating Employers, as well as all increments thereof.

                  (c) The  transfer  of any  Participant  from or to an Employer
         participating  in this Plan,  whether he be an Employee of the Employer
         or a Participating Employer, shall not affect such Participant's rights
         under the Plan, and all amounts credited to such Participant's  Account
         as  well  as his  accumulated  service  time  with  the  transferor  or
         predecessor,  and  his  length  of  participation  in the  Plan,  shall
         continue to his credit.

                  (d) Any  expenses  of the  Trust  which  are to be paid by the
         Employer or borne by the Trust Fund shall be paid by each Participating
         Employer in the same  proportion  that the total amount standing to the
         credit of all Participants employed by such Employer bears to the total
         standing to the credit of all Participants.

         16.03 DESIGNATION OF AGENT. Each Participating Employer shall be deemed
               --------------------
to be a part of this Plan;  provided,  however,  that with respect to all of its
relations with the Trustee and Plan  Administrator for the purpose of this Plan,
each Participating  Employer shall be deemed to have designated  irrevocably the
Employer as its agent.  Unless the  context of the Plan  clearly  indicates  the
contrary,  the word  "Employer"  shall be deemed to include  each  Participating
Employer as related to its adoption of the Plan.

         16.04  EMPLOYEE  TRANSFERS.  In the event of a transfer  of an Employee
                -------------------
between Affiliated Employers which are Participating  Employers,  whether or not
the  Employer  to which the  Participant  is  transferred  is the  Employer or a
Participating Employer, the Employee transferred shall not be considered to have
terminated  employment  for  purposes of the Plan.  If the Employer to which the
Employee is transferred is not the Employer or a  Participating  Employer,  then
the  Participant's  Account will  continue to be accounted for under the account
for  the  Employer  or   Participating   Employer  from  which  the  Participant
transferred,  and service with all  Affiliated  Employers  shall be credited for
purposes of determining Years of Service for vesting. No Employer  contributions
or  forfeitures  shall  be  allocated  to the  Account  of the  Participant  who
transferred  to  an  Affiliated   Employer  which  is  not  the  Employer  or  a
Participating Employer,  however,  earnings and losses shall be allocated to the
Participant's  Account in the manner provided in Section 10.08.  Distribution of
the  Participant's  Account  shall be made at such time and in such manner as is

                                      137

<PAGE>

otherwise  provided  by the terms  and  provisions  of the Plan as  though  such
Participant's  employment with the Affiliated Employer was considered employment
with the Employer or a Participating Employer.

         If a  Participant  is  transferred  to the Employer or a  Participating
Employer  and, if taking into  account  accumulated  service for all  Affiliated
Employers as provided above, the Participant  would be entitled to an allocation
pursuant to Section 4.04 in the Plan Year of his transfer, the Employer and each
Participating  Employer for which the Participant was employed,  will make a pro
rata allocation on behalf of the Participant  from any Employer or Participating
Employer   contribution.   The  pro  rata  allocation,   as  determined  by  the
Administrator  in a uniform and  nondiscriminatory  manner and  consistent  with
applicable  provisions  of  the  Code,  shall  be  based  on  the  Participant's
Compensation paid from the Employer and each Participating Employer.

         16.05  PARTICIPATING EMPLOYER'S CONTRIBUTION.  Unless elected otherwise
                -------------------------------------
by the Employer in its Adoption  Agreement Section 16.05, all contributions made
by a Participating  Employer,  as provided for in this Plan, shall be determined
separately by each Participating  Employer, and shall be paid to and held by the
Trustee  for the  exclusive  benefit  of the  Employees  of  such  Participating
Employer and the  Beneficiaries of such Employees,  subject to all the terms and
conditions  of this  Plan.  Unless  elected  otherwise  by the  Employer  in its
Adoption   Agreement   Section  16.05,  any  Forfeiture  by  an  Employee  of  a
Participating  Employer  subject to  allocation  during  each Plan Year shall be
allocated  only  for  the  exclusive   benefit  of  the   Participants  of  such
Participating  Employer  in  accordance  with the  provisions  of this Plan,  or
otherwise used to reduce the  contribution of such  Participating  Employer,  as
elected in the Employer's  Adoption  Agreement Section 4.09. On the basis of the
information  furnished by the  Administrator,  the Trustee  shall keep  separate
books  and  records  concerning  the  affairs  of  each  Participating  Employer
hereunder  and  as to  the  accounts  and  credits  of  the  Employees  of  each
Participating  Employer. The Trustee may, but need not, register Contracts so as
to evidence that a particular  Participating Employer is the interested Employer
hereunder,  but in the  event of an  Employee  transfer  from one  Participating
Employer to another, the employing Employer shall immediately notify the Trustee
thereof.

         16.06  AMENDMENT.  Amendment  of this Plan by the  Employer at any time
                ---------
when there  shall be a  Participating  Employer  hereunder  shall only be by the
written action of each and every Participating  Employer and with the consent of

                                      138
<PAGE>

the Trustee where such consent is necessary in accordance with the terms of this
Plan.

         16.07 DISCONTINUANCE OF PARTICIPATION. Any Participating Employer shall
               -------------------------------
be permitted to discontinue or revoke its participation in the Plan. At the time
of any such discontinuance or revocation,  satisfactory  evidence thereof and of
any applicable conditions imposed shall be delivered to the Trustee. The Trustee
shall  thereafter  transfer,  deliver and assign  Contracts and other Trust Fund
assets allocable to the Participants of such Participating  Employer to such new
Trustee as shall have been  designated by such  Participating  Employer,  in the
event that it has established a separate  pension plan for its Employees.  If no
successor is designated,  the Trustee shall retain such assets for the Employees
of said  Participating  Employer  pursuant  to the  provisions  of Article  VIII
hereof.  In no such event shall any part of the corpus or income of the Trust as
it relates to such  Participating  Employer be used for or diverted for purposes
other than for the  exclusive  benefit of the  Employees  of such  Participating
Employer.

         16.08 ADMINISTRATOR'S AUTHORITY. The Administrator shall have authority
               -------------------------
to  make  any  and  all  necessary  rules  or  regulations,   binding  upon  all
Participating Employers and all Participants,  to effectuate the purpose of this
Article.

         16.09  PARTICIPATING  EMPLOYER  CONTRIBUTION  FOR  AFFILIATE.   If  any
                -----------------------------------------------------
Participating  Employer  is  prevented  in  whole  or  in  part  from  making  a
contribution to the Trust Fund which it would otherwise have made under the Plan
by reason of having no current or  accumulated  earnings or profits,  or because
such earnings or profits are less than the contribution which it would otherwise
have  made,  then,  pursuant  to  Code  section  404(a)(3)(B),  so  much  of the
contribution which such Participating  Employer was so prevented from making may
be made, for the benefit of the  participating  employees of such  Participating
Employer,  by the other  Participating  Employers  who are  members  of the same
affiliated  group within the meaning of Code section 1504 to the extent of their
current or accumulated  earnings or profits,  except that such  contribution  by
each such other Participating Employer shall be limited to the proportion of its
total current and accumulated earnings or profits remaining after adjustment for
its contribution to the Plan made without regard to this Section which the total
prevented  contribution  bears to the total current and accumulated  earnings or
profits of all the  Participating  Employers  remaining after adjustment for all
contributions made to the Plan without regard to this Section.

                                      139

<PAGE>

         A Participating Employer on behalf of whose Employees a contribution is
made  under  this  Section  shall  reimburse  the   contributing   Participating
Employers.

                                      140

<PAGE>
                                  ARTICLE XVII
                       QUALIFIED DOMESTIC RELATIONS ORDERS

         17.01  DISTRIBUTIONS UNDER DOMESTIC RELATIONS ORDERS.
                ---------------------------------------------

                  (a)  Nothing contained in this Plan  prevents the Trustee,  in
         accordance with the direction of the Plan Administrator, from complying
         with the provisions of a qualified domestic relations order (as defined
         in Code section 414(o)). This Plan specifically permits distribution to
         an alternate  payee under a qualified  domestic  relations order at any
         time, irrespective of whether the Participant has attained his earliest
         retirement age (as defined under Code section 414(p)) under the Plan. A
         distribution  to  an  alternate   payee  prior  to  the   Participant's
         attainment of earliest  retirement  age is available  only if: (1) such
         distribution shall not otherwise violate the provisions of Code section
         414(p); (2) the order specifies distribution at that time or permits an
         agreement  between the Plan and the  alternate  payee to  authorize  an
         earlier  distribution;  and (3) if the amount of the alternate  payee's
         benefits under the Plan exceeds  $3,500,  and the order  requires,  the
         alternate  payee consents to any  distribution  occurring  prior to the
         Participant's  attainment of earliest retirement age. The Employer,  in
         an addendum to its Adoption  Agreement,  numbered  Section  17.01,  may
         elect  to  limit  distribution  to an  alternate  payee  only  when the
         Participant  has attained his earliest  retirement  age under the Plan.
         Nothing in this Section  17.01 gives a  Participant  a right to receive
         distribution  at a time otherwise not permitted under the Plan nor does
         it  permit  the  alternate  payee  to  receive  a form of  payment  not
         otherwise permitted under the Plan.

                  (b)  The  Plan   Administrator   must   establish   reasonable
         procedures to determine the  qualified  status of a domestic  relations
         order.   Upon   receiving  a  domestic   relations   order,   the  Plan
         Administrator  promptly will notify the  Participant  and any alternate
         payee named in the order,  in writing,  of the receipt of the order and
         the Plan's  procedures  for  determining  the  qualified  status of the
         order.  Within a reasonable period of time after receiving the domestic
         relations  order, the Plan  Administrator  must determine the qualified
         status of the order and must notify the  Participant and each alternate
         payee, in writing,  of its  determination.  The Plan Administrator must
         provide  notice  under this  Section  by  mailing  to the  individual's

                                      141
<PAGE>

         address  specified  in the  domestic  relations  order,  or in a manner
         consistent with Department of Labor regulations.

                  (c) If any portion of the Participant's Nonforfeitable Account
         Balance is payable during the period the Plan  Administrator  is making
         its  determination  of the qualified  status of the domestic  relations
         order, the Plan  Administrator  must make a separate  accounting of the
         amounts payable.  If the Plan  Administrator  determines the order is a
         qualified  domestic  relations order within eighteen (18) months of the
         date amounts first are payable following receipt of the order, the Plan
         Administrator will direct the Trustee to distribute the payable amounts
         in accordance with the order. If the Plan  Administrator  does not make
         its  determination  of the  qualified  status of the order  within  the
         eighteen (18) month  determination  period, the Plan Administrator will
         direct the Trustee to distribute the payable  amounts in the manner the
         Plan  would  distribute  if the order did not exist and will  apply the
         order  prospectively  if the Plan  Administrator  later  determines the
         order is a qualified domestic relations order.

                  (d) To the extent it is not  inconsistent  with the provisions
of the qualified domestic relations order, the Plan Administrator may direct the
Trustee to invest any partitioned amount in a segregated  subaccount or separate
account and to invest the account in Federally insured, interest-bearing savings
account(s)  or time  deposit(s)  (or a combination  of both),  or in other fixed
income investments.  A segregated subaccount remains a part of the Trust, but it
alone  shares in any income it earns,  and it alone bears any expense or loss it
incurs. The Trustee will make any payments or distributions  required under this
Article  by  separate  benefit  checks  or other  separate  distribution  to the
alternate payee(s).

                                      142

<PAGE>

                                  ARTICLE XVIII
                            TOP-HEAVY PLAN PROVISIONS

         18.01  EFFECT OF ARTICLE  XVIII ON PLAN.  Notwithstanding  any contrary
                --------------------------------
provisions  contained in any other  Article of the Plan, if at any time the Plan
shall be a Top-Heavy Plan (as hereinafter defined),  this Article shall control;
and any contrary terms of the Plan shall be deemed replaced by the provisions of
this Article.  However,  this Article shall not be effective for any  subsequent
Plan  Year  in  which  the  Plan  is  determined  not  to be a  Top-Heavy  Plan.
Definitions applicable to this Article XVIII are set out in Section 18.03.

         18.02  DETERMINATION OF TOP-HEAVY STATUS.
                ---------------------------------

                  (a) If this Plan is the only qualified plan  maintained by the
         Employer,  the Plan is top-heavy for a Plan Year if the Top-Heavy Ratio
         as of the  Determination  Date exceeds  sixty percent  (60%).  The Plan
         Administrator  must  include  in the  Top-Heavy  Ratio,  as part of the
         Account  Balances,  any contribution  not made as of the  Determination
         Date but includible under Code section 416 and the applicable  Treasury
         regulations,  and distributions  made within the Determination  Period.
         The  Plan   Administrator   must  calculate  the  Top-Heavy   Ratio  by
         disregarding  the Account  Balance (and  distributions,  if any, of the
         Account  Balance)  of any  Non-Key  Employee  who  was  formerly  a Key
         Employee,   and  by  disregarding   the  Account   Balance   (including
         distributions, if any, of the Account Balance) of an individual who has
         not received  credit for at least one Hour of Service with the Employer
         during the Determination  Period. The Plan Administrator must calculate
         the  Top-Heavy  Ratio,  including the extent to which it must take into
         account distributions, rollovers and transfers, in accordance with Code
         section 416 and the regulations thereunder.

                  (b) If the Employer maintains other qualified plans (including
         a simplified  employee  pension plan), or maintained  another such plan
         which now is  terminated,  this Plan is top-heavy only if it is part of
         the  Required  Aggregation  Group,  and  the  Top-Heavy  Ratio  for the
         Required Aggregation Group and for the Permissive Aggregation Group, if
         any, each exceeds  sixty percent  (60%).  The Plan  Administrator  will
         calculate  the  Top-Heavy  Ratio  in the same  manner  as  required  in
         subparagraph  (a) of this Section 18.02,  taking into account all plans
         within the Aggregation Group. To the extent the Plan Administrator must

                                      143
<PAGE>

         take  into   account   distributions   to  a   Participant,   the  Plan
         Administrator  must include  distributions from a terminated plan which
         would have been part of the  Required  Aggregation  Group if it were in
         existence  on the  Determination  Date.  The  Plan  Administrator  will
         calculate the present value of accrued  benefits under defined  benefit
         plans or simplified employee pension plans included within the group in
         accordance  with the terms of those  plans,  Code  section  416 and the
         regulations thereunder. If a Participant in a defined benefit plan is a
         Non-Key  Employee,  the Plan  Administrator  will determine his accrued
         benefit under the accrual method, if any, which is applicable uniformly
         to all defined benefit plans maintained by the Employer or, if there is
         no  uniform  method,  in  accordance  with  the  slowest  accrual  rate
         permitted  under the fractional  rule accrual method  described in Code
         section 416(b)(1)(C). If the Employer maintains a defined benefit plan,
         the  Employer  must  specify in  Adoption  Agreement  Section  4.30 the
         actuarial   assumptions   (interest  and   mortality   only)  the  Plan
         Administrator  will use to  calculate  the  present  value  of  accrued
         benefits from a defined  benefit  plan. If an aggregated  plan does not
         have a valuation date coinciding with the Determination  Date, the Plan
         Administrator must value the Account Balances in the aggregated plan as
         of the most recent  valuation date falling within the twelve (12) month
         period ending on the Determination Date, except as Code section 416 and
         applicable  Treasury  regulations require for the first and second plan
         year of a defined benefit plan. The Plan  Administrator  will calculate
         the Top-Heavy Ratio with reference to the Determination Dates that fall
         within the same calendar year.

                  (c) The  Account  Balance  of a  Participant  other than a Key
         Employee  shall  be  determined  under  (1) the  method,  if any,  that
         uniformly  applies for accrual purposes under all defined benefit plans
         maintained  by the Employer,  or (2) if there is no such method,  as if
         such benefit  accrued not more  rapidly  than the slowest  accrual rate
         permitted under the fractional rule of Code section 411(b)(1)(C).

         18.03  DEFINITIONS.  For  purposes of applying the  provisions  of this
                -----------
Article XVIII:

                  (a) "Top-Heavy Ratio" is a fraction, the numerator of which is
         the  sum  of  the  Account  Balances  of all  Key  Employees  as of the
         Determination  Date  and the  denominator  of which  is a  similar  sum
         determined for all Employees.

                                      144
<PAGE>

                  (b) "Key Employee"  means, as of any  Determination  Date, any
         Employee or former  Employee (or Beneficiary of such Employee) who, for
         any Plan Year in the  Determination  Period:  (i) has  Compensation  in
         excess of fifty percent  (50%) of the dollar amount  prescribed in Code
         section  416(b)(1)(A)  (relating  to defined  benefit  plans) and is an
         officer of the Employer;  (ii) has Compensation in excess of the dollar
         amount  prescribed  in Code section  415(c)(1)(A)  (relating to defined
         contribution  plans)  and is one of the  Employees  owning the ten (10)
         largest  interests in the  Employer;  (iii) is a more than five percent
         (5%) owner of the  Employer;  or (iv) is a more than one  percent  (1%)
         owner of the Employer and has  Compensation of more than $150,000.  The
         constructive  ownership rules of Code section 318 (or the principles of
         that Section, in the case of an unincorporated  Employer) will apply to
         determine ownership in the Employer.  The number of officers taken into
         account  under  clause (i) will not exceed the  greater of three (3) or
         ten percent  (10%) of the total number (after  application  of the Code
         section 414(q)  exclusions)  of Employees,  but no more than fifty (50)
         officers.  The Plan Administrator will make the determination of who is
         a Key  Employee  in  accordance  with Code  section  416(i)(1)  and the
         regulations thereunder.

                  (c)  "Non-Key  Employee"  is an Employee who does not meet the
         definition of Key Employee.

                  (d)  "Compensation"  means  Compensation  as determined  under
         Section 1.11 for purposes of identifying Highly Compensated Employees.

                  (e) "Required  Aggregation  Group" means:  (i) each  qualified
         plan of the Employer in which at least one Key Employee participates at
         any time during the Determination  Period; and (ii) any other qualified
         plan of the Employer  which  enables a plan  described in clause (i) to
         meet the requirements of Code section 401(a)(4) or 410.

                  (f) "Permissive Aggregation Group" is the Required Aggregation
         Group plus any other  qualified plans  maintained by the Employer,  but
         only if such group would satisfy in the aggregate the  requirements  of
         Code  sectionsection  401(a)(4)  and 410. The Plan  Administrator  will
         determine the Permissive Aggregation Group.

                  (g)  "Employer"  means the Employer  that adopts this Plan and
         any Affiliated Employers described in Section 16.01.

                                      145

<PAGE>

                  (h)  "Determination  Date" for any Plan Year is the Adjustment
         Date of the preceding  Plan Year or, in the case of the first Plan Year
         of the Plan, the Adjustment Date of that Plan Year. The  "Determination
         Period" is the five (5) year period ending on the Determination Date.

         18.04  TOP-HEAVY ALLOCATIONS.
                ---------------------

                  (a)  Top-Heavy Minimum Allocation.  The  Plan must comply with
                       ----------------------------
         the provisions of this Section  18.04,  subject to the elections in the
         Employer's  Adoption  Agreement  Section 4.06.  The  top-heavy  minimum
         allocation requirement applies only in Plan Years for which the Plan is
         top-heavy.  Except as provided in the Employer's Adoption Agreement, if
         the Plan is top-heavy in any Plan Year:

                           (1) Each Non-Key Employee who is a Participant and is
                  employed  on the last  day of the Plan  Year  will  receive  a
                  top-heavy minimum allocation for that Plan Year,  irrespective
                  of whether he satisfies the Hours of Service  condition  under
                  Section 4.06 of the Employer's Adoption Agreement; and

                           (2) The top-heavy minimum allocation is the lesser of
                  three percent (3%) of the Non-Key Employee's  Compensation for
                  the Plan Year or the  highest  contribution  rate for the Plan
                  Year made on behalf of any Key Employee. However, if a defined
                  benefit plan  maintained by the Employer  which benefits a Key
                  Employee depends on this Plan to satisfy the nondiscrimination
                  rules of Code section  401(a)(4) or the coverage rules of Code
                  section 410 (or another  plan  benefiting  the Key Employee so
                  depends on such defined benefit plan),  the top-heavy  minimum
                  allocation  is three  percent  (3%) of the Non-Key  Employee's
                  Compensation  regardless of the contribution  rate for the Key
                  Employees.

                  (b)  Special Definitions.  For purposes of this Section 18.04,
                       -------------------
         the term  "Participant"  includes  any Employee  otherwise  eligible to
         participate  in the Plan but who is not a  Participant  because  of his
         Compensation level or because of his failure to make Elective Deferrals
         under a Code section  401(k)  arrangement  or because of his failure to
         make  Mandatory  Contributions.  For purposes of  subparagraph  (a)(2),
         "Compensation"  means  Compensation as defined in Section 1.11,  except

                                      146
<PAGE>

         Compensation  does not include  Elective  Contributions,  as defined in
         Section  1.11,  irrespective  of whether  the  Employer  has elected to
         include  these amounts in Section 1.11 of its Adoption  Agreement,  any
         exclusion  selected in Section  1.11 of the Adoption  Agreement  (other
         than the exclusion of Elective  Contributions)  does not apply, and any
         modification to the definition of Compensation in Section 4.04 does not
         apply.

                  (c)  Determining  Contribution  Rates.  For  purposes  of this
                       --------------------------------
         Section  18.04,  a  Participant's  contribution  rate is the sum of all
         Employer  contributions (not including Employer contributions to Social
         Security) and forfeitures  allocated to the  Participant's  Account for
         the Plan Year, divided by his Compensation for the entire Plan Year. To
         determine a  Participant's  contribution  rate, the Plan  Administrator
         must treat all top-heavy defined  contribution  plans maintained by the
         Employer or by any Affiliated  Employer described in Section 16.01 as a
         single plan.

                  (d)  No  Allocations.  If,  for a  Plan  Year,  there  are  no
                       ---------------
         allocations  of  Employer  contributions  or  forfeitures  for  any Key
         Employee  (for  purposes  of  Section  18.04(a)(2)),  the Plan does not
         require any top-heavy  minimum  allocation for the Plan Year,  unless a
         top-heavy minimum  allocation applies because of the maintenance by the
         Employer of more than one plan.

                  (e)  Election  of Method.  The  Employer  must  specify in its
                       -------------------
         Adoption  Agreement  Section  4.06 the  manner  in which  the Plan will
         satisfy the top-heavy minimum allocation requirement.

                           (1) If the  Employer  elects  to make  any  necessary
                  additional  contribution  to the Plan, the Plan  Administrator
                  first  will   allocate   the   Employer   contributions   (and
                  Participant  forfeitures,  if applicable) for the Plan Year in
                  accordance with the provisions of Adoption  Agreement  Section
                  4.06. The Employer then will  contribute an additional  amount
                  for the Account of any Participant entitled under this Section
                  18.04 to a top-heavy minimum allocation and whose contribution
                  rate for the Plan  Year,  under  this Plan and any other  plan
                  aggregated under  subparagraph (c), is less than the top-heavy
                  minimum  allocation.  The  additional  amount  is  the  amount
                  necessary to increase the  Participant's  contribution rate to
                  the top-heavy minimum allocation.  The Plan Administrator will
                  allocate  the  additional  contribution  to the Account of the

                                      147
<PAGE>

                  Participant   on  whose   behalf   the   Employer   makes  the
                  contribution.

                           (2) If the Employer elects to guarantee the top-heavy
                  minimum  allocation  under  another  plan,  this Plan does not
                  provide  the  top-heavy   minimum   allocation  and  the  Plan
                  Administrator will allocate the annual Employer  contributions
                  (and Participant  forfeitures,  if applicable)  under the Plan
                  solely in accordance with the allocation method selected under
                  Adoption Agreement Section 4.06.

                  For any Plan Year in which this Plan is top-heavy,  one of the
         minimum  vesting  schedules  as elected  by the  Employer  in  Adoption
         Agreement  Section  5.05  will  automatically  apply to the  Plan.  The
         minimum vesting  schedule applies to all benefits within the meaning of
         Code section  411(a)(7)  except  those  attributable   to   Participant
         contributions,  including benefits accrued before the effective date of
         Code section 416 and benefits accrued before the Plan became top-heavy.
         Further, no decrease in a Participant's  nonforfeitable  percentage may
         occur in the event the Plan's status as top-heavy  changes for any Plan
         Year. However, this Section 18.04 does not apply to the Account Balance
         of any Employee who does not have an Hour of Service after the Plan has
         initially  become  top-heavy,   and  such  Employee's  Account  Balance
         attributable  to  Employer   contributions   and  forfeitures  will  be
         determined without regard to this Section.

                                      148

365\467527

<PAGE>

                                 FIRST AMENDMENT
                                 ---------------
                                     TO THE
                                     ------
                        KRISPY KREME DOUGHNUT CORPORATION
                        ---------------------------------
                             RETIREMENT SAVINGS PLAN
                             -----------------------

         This  First   Amendment  to  the  Krispy  Kreme  Doughnut   Corporation
Retirement Savings Plan (the "Plan"), made this ____ day of _____________, 19__,
effective January 1, 1994, except as otherwise indicated.

                              W I T N E S S E T H:
                               - - - - - - - - - -

         WHEREAS,  Krispy Kreme Doughnut  Corporation  (the  "Corporation")  has
determined  that it is in the best  interest  of Plan  participants  to  exclude
highly compensated  employees at the director level and above from participating
in the allocation of forfeitures under the Plan; and

         WHEREAS, Section 15.02 authorizes the Corporation to amend the Plan.

         NOW,  THEREFORE,  BE IT  RESOLVED,  that the Plan is amended  effective
January 1, 1994 by revising Section 4.09(e) of the Adoption Agreement to read as
follows:

         [X] (e) (SPECIFY) Allocated only among Participants with profit-sharing
                  --------------------------------------------------------------
                  accounts whose employment status is below the director level.
                  --------------------------------------------------------------

                  IN WITNESS  WHEREOF,  the  Corporation  has caused  this First
Amendment to be executed by its authorized representative as of the day and year
first written above.

                                           KRISPY KREME DOUGHNUT CORPORATION

[Corporate Seal]
                                           By:
                                               ---------------------------------
                                                           President
                                               -----------
ATTEST:

---------------------------
            Secretary
----------

<PAGE>

            [SECOND AMENDMENT TO RETIREMENT SAVINGS PLAN GOES HERE]

<PAGE>

                             THIRD AMENDMENT TO THE
                        KRISPY KREME DOUGHNUT CORPORATION
                             RETIREMENT SAVINGS PLAN

         This  Third   Amendment  to  the  Krispy  Kreme  Doughnut   Corporation
Retirement Savings Plan (the "Plan") made this _____ day of ___________________,
2000,  by Krispy Kreme  Doughnut  Corporation,  and  effective  January 1, 2000,
unless otherwise indicated.

                              W I T N E S S E T H:
                              - - - - - - - - - -

         WHEREAS,  Krispy Kreme Doughnut Corporation (the "Company") adopted the
Krispy Kreme Profit-Sharing Stock Ownership Plan (the "KSOP") effective February
1, 1999; and

         WHEREAS,  the  Company  desires  to  amend  the  Plan  to  reflect  the
establishment of the KSOP; and

         WHEREAS,  the Company has completed an initial  public  offering of the
stock of the Company; and

         WHEREAS,  the  Company  believes  it is in the  best  interest  of Plan
participants  for Plan  participants  to be allowed to direct the  investment of
their accounts under the Plan into Krispy Kreme stock; and

         WHEREAS, the Company is authorized to amend the Plan.

         NOW,  THEREFORE,  BE IT  RESOLVED:  That the Plan  shall be  amended as
follows:

         1. Section 4.02(a),  as set forth in the Adoption  Agreement,  shall be
deleted in its entirety and replaced with the  provisions of Section  4.02(a) on
the revised page 13 to the Adoption Agreement, as attached to this Amendment.

         2.  Section  4.03,  as set forth in the  Adoption  Agreement,  shall be
amended to eliminate the obligation to make matching  contributions  by deleting
the existing  section in its  entirety and  replacing it with pages 14-16 to the
Adoption Agreement, as attached to this Amendment.

         3.  Section  8.06 of the Plan shall be amended by adding the  following
provisions concerning the investment of Plan assets in Krispy Kreme stock:

                  (a) Investment in Krispy Kreme Stock.  Effective June 1, 2000,
                      --------------------------------
         the investment  funds  available to  Participants  under the Plan shall
         include an  "Employer  Stock  Fund." The  Employer  Stock Fund shall be
         invested  solely in shares of common stock of Krispy  Kreme  Doughnuts,
         Inc.  ("Common  Stock").  Such  shares  shall  constitute   "qualifying

<PAGE>

         employer securities" within the meaning of Code Section 4975(e)(8). The
         Employer Stock Fund shall operate as an "unitized" investment fund.

                  (b) Voting of Stock Generally. Each Participant shall have the
                      -------------------------
         right and shall be afforded the opportunity to instruct the Trustee how
         to  vote  at  any   meeting  of  the   Employer's   shareholders   that
         proportionate  number of the total number of shares of the Common Stock
         held in the Trust Fund which is the same  proportion  that the value of
         his  interest  bears to the total  value of the Fund.  Instructions  by
         Participants  to the Trustee shall be in such form and pursuant to such
         regulations as the Committee may prescribe. Any such instructions shall
         remain in the strict confidence of the Trustee. Any shares for which no
         such  instructions  are  received by the Trustee  shall be voted by the
         Trustee in the same proportion as the shares for which instructions are
         received.

                  (c)  Participant  Direction  - Tender or Exchange  Offer.  The
                       ---------------------------------------------------
         Trustee's functions and responsibilities  with respect to Company Stock
         held under the Plan with respect to all decisions made in response to a
         tender offer shall be exercised as follows:

                           (i) In the  event a tender  offer is  commenced,  the
                  Committee, promptly after receiving notice of the commencement
                  of any such tender offer, shall transfer certain of the Plan's
                  record-keeping  functions  to  an  independent   record-keeper
                  (which,  if  the  Trustee  consents  in  writing,  may  be the
                  Trustee).   The  functions  so  transferred   shall  be  those
                  necessary to preserve the  confidentiality  of any  directions
                  given by Participants  and  Beneficiaries,  in connection with
                  the tender offer. The record-keeper shall use its best efforts
                  timely to  distribute  or to cause to be  distributed  to each
                  Participant  and  Beneficiary  such  information  as is  being
                  distributed   to  other   stockholders   of  the  Employer  in
                  connection  with any such tender  offer.  The Employer and the
                  Committee  shall  cooperate  with  such  record-keeper  in  an
                  attempt to ensure that Participants and Beneficiaries  receive
                  the requisite  information in a timely manner. The independent
                  record-keeper   shall   solicit   confidentially   from   each
                  Participant and Beneficiary the directions  described below as
                  to the action to be taken with  respect to Company  Stock held
                  under  the  Plan  in  response  to  the  tender   offer.   The
                  independent  record-keeper,  if  different  from the  Trustee,
                  shall instruct the Trustee as to required action, including an
                  identification   of  the  number  of  shares  covered  by  any
                  particular  required action,  in accordance with the following
                  provisions.

<PAGE>

                           (ii) Each Participant and Beneficiary  shall have the
                  right to direct the Trustee not to tender or exchange  Company
                  Stock allocated to his or her Account.  Upon timely receipt of
                  directions  not to tender or exchange,  the Trustee  shall not
                  tender  or  exchange   shares  of  Company  Stock   (including
                  fractional   shares)   allocated  to  such   Participant's  or
                  Beneficiary's  Account.  The Trustee  shall tender or exchange
                  all  other  shares  of  Company  Stock  (including  fractional
                  shares)   allocated  to  any  Participant's  or  Beneficiary's
                  Account,  and the  Trustee  shall have no  discretion  in such
                  matter.   The  instructions   received  by  the  Trustee  from
                  Participants  and  Beneficiaries  shall  not  be  divulged  or
                  released  to  any  person,  including  the  Committee,  or the
                  officers or employees of the Employer.

                  (d)      No Additional Rights Conferred.
                           ------------------------------

                           (i)  Nothing  contained  in this  Section  8.06 shall
                  confer upon Participants,  Beneficiaries or the Trustee of any
                  additional  voting  rights in respect  of  Company  Stock held
                  under  the  Plan  other  than  such  rights  set  forth in the
                  certificate of incorporation  of Krispy Kreme Doughnuts,  Inc.
                  (or of any other Employer, as applicable) and applicable under
                  the General Corporation Law of the State of North Carolina and
                  federal law.

                           (ii)  Nothing  contained  in this  Section 8.06 shall
                  confer  upon  Participants,  Beneficiaries  or the Trustee any
                  additional  rights in  respect  of a tender  offer,  merger or
                  consolidation  relating  to the  Company  Stock held under the
                  Plan other than such  rights set forth in the  certificate  of
                  incorporation  of Krispy Kreme  Doughnuts,  Inc. (or any other
                  Employer,  as  applicable)  and  applicable  under the General
                  Corporation  Law of the State of North  Carolina  and  federal
                  law.

         4.  Section  11.07,  as set forth in the Adoption  Agreement,  shall be
deleted in its entirety and replaced with the provisions of Section 11.07 on the
revised page 38 to the Adoption Agreement, as attached to this Amendment.

         5.  Section  11.15,  as set forth in the Adoption  Agreement,  shall be
deleted in its entirety and replaced with the provisions of Section 11.15 on the
revised page 38 to the Adoption Agreement, as attached to this Amendment.

                                       3
<PAGE>

         IN WITNESS  WHEREOF,  the Company has caused this Third Amendment to be
executed by the proper officers and its corporate seal hereto affixed as the day
and year first written above.

                                   KRISPY KREME DOUGHNUT CORPORATION

                                   By: /s/Scott A. Livengood
                                      ------------------------------------------
                                      President

ATTEST:

/s/ Randy S. Casstevens
----------------------------
Secretary

                                       4

<PAGE>

                                   ARTICLE IV
                     EMPLOYER CONTRIBUTIONS AND FORFEITURES

4.02     CODE SECTION 401(k) ARRANGEMENT.  The  Code section  401(k) arrangement
         -------------------------------   shall be:

         [X]      (a)      Salary Reduction Arrangement. Each Employee may elect
                           to have his compensation reduced by:

                  [ ]      (1)      ________%

                  [ ]      (2)      up to __________%

                  [X]      (3)      from     1     % to    15     %
                                         ----------     ----------

                  [ ]      (4)      up  to  the maximum percentage allowable not
                                    to   exceed  the  limits  of  Code  sections
                                    401(k), 404 and 415.

         [ ]      (b)      Cash or Deferred Arrangement.  Each  Participant  may
                           elect to receive in cash,  up to _____% of Employer's
                           allocable  contribution.  (IF   THIS   OPTION  (B) IS
                           SELECTED, PLEASE SKIP TO SECTION 4.04.)

SALARY REDUCTION  ELECTIONS.  (COMPLETE ONLY IF OPTION (A) ABOVE SELECTED). Each
Participant's Salary Reduction Election shall be effective as of his Entry Date.
Thereafter, modifications may be made:

         [ ]      (a)      As of the first day of each Plan Year.

         [ ]      (b)      Semi-annually.  The  first  day of the Plan  Year and
                           the first day of the seventh  month of the Plan Year.

         [ ]      (c)      Quarterly, based on the Plan Year.

         [ ]      (d)      As of any pay period.

         [X]      (e)     (SPECIFY)  As  of  the  beginning  of  any  month.  In
                           addition to regular Salary  Reduction  Agreement made
                           pursuant  to section 4.02, each Participant may  make
                           special  election  to  defer  up to 100% of  bonus or
                           incentive  pay  designated  by the  Employer as being
                           eligible  for this  special  election.  Such  special
                           election must be made by August 1 of each year.

NOTE:  All elections to modify a Salary Reduction Election must be made prior to
the first day of the pay period for which such modification shall be effective.

BONUSES  PAID.  Shall cash bonuses paid within 2 1/2 months after the end of the
Plan Year be subject to a Participant's  Salary Reduction Election for the prior
Plan Year?

         [X]      (a)      No

         [ ]      (b)      Yes,  subject  to the election of the Employee in his
                           salary reduction agreement

4.03     MATCHING  CONTRIBUTIONS.  Subject to the maximum contribution indicated
         below,  and  further  subject to any  limitations  set forth in Section
         4.06,  the Employer  shall make Matching  Contributions  to the Plan in
         accordance  with the following  formula  (OPTION (B) MAY BE SELECTED IN
         ADDITION TO OPTION (C) OR (D)):

         [ ]      (a)      N/A.  No matching contributions shall be made.

         [ ]      (b)      Matching  Contributions  shall be an  amount equal to
                           _____%  of the  Participant's Mandatory Nondeductible
                           Contribution.

                                       13

<PAGE>

         [X]      (c)      Matching    Contributions    in    a    discretionary
                           percentage,  to  be  determined  by  the Employer, of
                           the Participant's Salary Reduction Contribution.

         [ ]      (d)      Matching  Contributions  shall be an amount equal  to
                           _____%  of   the   Participant's   Salary   Reduction
                           Contribution.

         [ ]      (e)      Matching  Contributions shall  be  an amount equal to
                           the   percentage  determined   under   the  following
                           schedule:

                              Participant's Total           Matching Percentage
                               Years of Service

                                    _____                           _____
                                    _____                           _____
                                    _____                           _____

         [ ]      (f)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

MAXIMUM PERMITTED MATCHING CONTRIBUTION.  The  amount of the Employer's Matching
Contribution shall be limited to:

         [X]      (a)      Only salary reductions up to    6% of a Participant's
                           Compensation will be matched.  ---

         [ ]      (b)      $______________

         [ ]      (c)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

ALLOCATION OF MATCHING CONTRIBUTIONS.  Subject to satisfaction of the allocation
requirements,   Matching Contributions shall be made on behalf of:

         [X]      (a)      All Participants

         [ ]      (b)      Only nonhighly compensated Participants

ALLOCATION REQUIREMENTS FOR MATCHING CONTRIBUTIONS.  To receive an allocation of
Employer Matching  Contributions for the Plan Year, an eligible  Participant who
made Deferral Contributions under the Plan must satisfy the conditions described
in the following elections:

         [X]      (a)      No    conditions   other   than     making   Deferral
                           Contributions.

                                       14
<PAGE>
         [ ]      (b)      SAFE HARBOR.  If  the  Participant is employed by the
                           Employer  on  the  last  day  of  the  Plan  Year  or
                           completes  at least 501 Hours of  Service  during the
                           Plan  Year  prior  to   termination   of  employment.

                           Provided,   however,   Participant  will  receive  an
                           allocation of the  Employer's  Matching  Contribution
                           regardless of Hours of Service and employment  status
                           on the last day of the Plan Year if such  Participant
                           terminates employment during the Plan Year on account
                           of:

                  [ ]      (1)      N/A, no exceptions.

                  [ ]      (2)      Death.

                  [ ]      (3)      Disability.

                  [ ]      (4)      Completion  of Early Retirement requirements
                                    in the  current or a prior Plan Year.

                  [ ]      (5)      Attainment of Normal Retirement  Age  in the
                                    current or a prior Plan Year.

         [ ]      (c)      HOURS OF  SERVICE  CONDITION.  The  Participant  must
                           complete  the  following  minimum  number of Hours of
                           Service for the Plan Year:

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

                  [ ]      (2)      (SPECIFY, BUT MAY NOT EXCEED 1,000) _______.

                  [ ]      (3)      No   Hour  of  Service  requirement  if  the
                                    Participant terminates employment during the
                                    Plan Year on account of (MAY ONLY BE ELECTED
                                    IN ADDITION TO (1) OR (2) ABOVE):

                           [ ]      (i)     N/A, no exceptions.

                           [ ]      (ii)    Death.

                           [ ]      (iii)   Disability.

                           [ ]      (iv)    Completion    of   Early  Retirement
                                            requirements  in  the  current or  a
                                            prior Plan Year.

                           [ ]      (v)     Attainment of Normal Retirement  Age
                                            in  the  current  Plan  Year or in a
                                            prior Plan Year.

         [ ]     (d)       EMPLOYMENT  CONDITION.   The   Participant   must  be
                           employed by the  Employer on the last day of the Plan
                           Year, regardless of whether he satisfies any Hours of
                           Service   condition   under  Option  (c).   Provided,
                           however,  the employment condition shall not apply if
                           the Participant terminates employment on account of:

                  [ ]      (1)      N/A, no exceptions.

                  [ ]      (2)      Death.

                  [ ]      (3)      Disability.

                  [ ]      (4)      Completion of Early Retirement  requirements
                                    in the  current or a prior Plan Year.

                  [ ]      (5)      Attainment  of  Normal Retirement Age in the
                                    current or a prior Plan Year.

         [ ]      (e)      (SPECIFY OTHER CONDITIONS, IF APPLICABLE):___________
                           _____________________________________________________

                                       15
<PAGE>

                           _____________________________________________________

ALLOCATION  DATES FOR  MATCHING  CONTRIBUTIONS.  Subject to  satisfaction of the
allocation  requirements,  Matching  Contributions  shall  be  made on behalf of
Participants as of:

         [X]      (a)      The last day of the Plan Year

         [ ]      (b)      The last day of each quarter of the Plan Year

         [ ]      (c)      Semi-annually, as of the last day of  the sixth month
                           of the Plan Year

         [ ]      (d)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

TREATMENT OF MATCHING  CONTRIBUTIONS.  All Matching Contributions under the Plan
shall be allocated by the Plan Administrator to the Participant's:

         [ ]      (a)      Qualified Matching Contribution Account. The Matching
                           Contribution  will be used to  satisfy  the  deferral
                           percentage test of Plan Section 4.12.

         [X]      (b)      Regular Matching Contribution Account.  The  Matching
                           Contribution   will   be  tested  pursuant  to   Plan
                           Section 4.18.

VESTING OF MATCHING CONTRIBUTIONS.  Matching Contributions:

         [X]      (a)      Are  100%  vested  and  nonforfeitable  at  all times
                           (MUST  BE  SELECTED  IF  MATCHING  CONTRIBUTIONS  ARE
                           ALLOCATED  TO  THE  QUALIFIED  MATCHING  CONTRIBUTION
                           ACCOUNT).

         [ ]      (b)      Shall  vest in  accordance with the vesting  schedule
                           elected in  Adoption  Agreement Section 5.05.

4.04     DISCRETIONARY NONELECTIVE CONTRIBUTIONS.    Discretionary   Nonelective
         ---------------------------------------     Contributions:

         [ ]      (a)      Shall not be made.

         [X]      (b)      Are made out of the Employer's current or accumulated
                           Net Profit.

         [ ]      (c)      Are   not   limited  to  the  Employer's  current  or
                           accumulated Net Profit.

ALLOCATION OF DISCRETIONARY NONELECTIVE CONTRIBUTION. Subject to any restoration
allocation  required  under  Sections  5.08 and 5.09 or 10.15,  to the top-heavy
minimum  allocation  provisions of Section 18.04(a),  and to any limitations set
forth in Section  4.06,  the Plan  Administrator  will  allocate and credit each
annual Employer  contribution to the Account of each Participant who is entitled
to receive an  allocation,  in accordance  with the allocation  method  selected
under this Section 4.04 (CHOOSE AN ALLOCATION METHOD UNDER (A), (B), (C), (D) OR
(E); (F) IS MANDATORY IF THE EMPLOYER ELECTS (C), (D) OR (E)).

         [ ]      (a)      NONINTEGRATED ALLOCATION  FORMULA.  In the ratio that
                           each  Participant's  Compensation  for  the Plan Year
                           bears to the total  Compensation  of all Participants
                           entitled  to receive an allocation for the Plan Year.

                                       16
<PAGE>

                                    ARTICLE X
                              PLAN ADMINISTRATOR -
                  DUTIES WITH RESPECT TO PARTICIPANTS' ACCOUNTS

10.08    ALLOCATION  AND  DISTRIBUTION  OF NET INCOME GAIN OR LOSS. The Employer
         may elect to  allocate  Trust  Fund  earnings  and  losses  on  amounts
         contributed  to  the  Plan  after  the  previous  Adjustment  Date,  or
         Valuation  Date, in a manner other than the manner  provided in Section
         10.08, which uses the "beginning balance," as follows:

         [X]      (a)      No modification to Section 10.08.

         [ ]      (b)      by using a weighted average

         [ ]      (c)      by treating  one-half  of all such  contributions  as
                           being  a  part  of  the  Participant's  nonsegregated
                           Account Balance as of the previous Adjustment Date.

         [  ]     (d)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

                                       38

<PAGE>

                                                                          031694

                               ADOPTION AGREEMENT
                      NONSTANDARDIZED 401(K) PLAN AND TRUST

The undersigned,  KRISPY KREME DOUGHNUT CORPORATION  ("Employer"),  by executing
this Adoption Agreement, elects to become a participating Employer in the PETREE
STOCKTON,  L.L.P.  401(k)  VOLUME  SUBMITTER  PLAN  AND  TRUST by  adopting  the
accompanying  Plan and Trust in full as if the Employer were a signatory to that
Agreement.  The  Employer  makes  the  following  elections  granted  under  the
provisions of the Volume Submitter Plan document.
<TABLE>
<CAPTION>

                                PLAN INFORMATION
<C>                        <S>
PLAN NAME
(SECTION 1.39):            Krispy Kreme Doughnut Corporation Retirement Savings Plan
                           ----------------------------------------------------------------------------------------

                                                                                 PLAN NUMBER:   001
                           -----------------------------------------------------             ------

EMPLOYER:                  Krispy Kreme Doughnut Corporation
                           ----------------------------------------------------------------------------------------

ADDRESS:                   1814 Ivy Avenue
                           ----------------------------------------------------------------------------------------

                           Winston-Salem, North Carolina  27105
                           ----------------------------------------------------------------------------------------

CONTACT:                   Anne T. Nissen
                           ----------------------------------------------------------------------------------------

                                                              EMPLOYER
TELEPHONE:                 (  910   ) 725-2981                IDENTIFICATION NUMBER:   56-1318322
                            -------- ----------------                               -------------------------------

DATE BUSINESS                                                 BUSINESS CODE
COMMENCED:                 January 11, 1982                   NUMBER (FROM FORM 1120):
                           --------------------------                                 -----------------------------

TYPE OF ENTITY:            Corporation
                           (corporation,  "S"  corporation,   limited  liability  corporation,   partnership,  sole
                           proprietorship, or other unincorporated business)

LOCATION OF PRINCIPAL
OFFICE OF EMPLOYER:        1814 Ivy Avenue, Winston-Salem, North Carolina  27105
                           ----------------------------------------------------------------------------------------

IS THE EMPLOYER
A MEMBER OF A(N):          CONTROLLED GROUP              X     (Yes)             (No)
                                                     ---------         ---------
                           AFFILIATED SERVICE GROUP            (Yes)      X      (No)
                                                     ---------         ---------

PARTICIPATING
EMPLOYERS:
(COMMONLY
CONTROLLED)                Krispy Kreme Doughnuts Company
                           ----------------------------------------------------------------------------------------

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

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

AGENT FOR
SERVICE OF
PROCESS:                   John L. Barber
                           ----------------------------------------------------------------------------------------

                           c/o Krispy Kreme Doughnut Corporation
                           ----------------------------------------------------------------------------------------

ADDRESS:                   101 S. Stratford, Suite 450
                           ----------------------------------------------------------------------------------------
<PAGE>

                           Winston-Salem, North Carolina  27104
                           ----------------------------------------------------------------------------------------

TRUSTEE(S)
(SECTION 1.50):            Southern National Bank of North Carolina
                           ----------------------------------------------------------------------------------------

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

                           ----------------------------------------------------------------------------------------
TRUSTEE
ADDRESS:                   200 West Second Street
                           ----------------------------------------------------------------------------------------

                           P.O. Box 1270
                           ----------------------------------------------------------------------------------------

                           Winston-Salem, North Carolina 27102-1270 TELEPHONE: ( 910  )  773-7300
                           ----------------------------------------             ------ ----------------------------

PLAN
ADMINISTRATOR
(SECTION 1.40):            Krispy Kreme Doughnut Corporation
                           ----------------------------------------------------------------------------------------

ADDRESS:                   1814 Ivy Avenue
                           ----------------------------------------------------------------------------------------

                           Winston-Salem, North Carolina  27105
                           ----------------------------------------------------------------------------------------

                                                              IDENTIFICATION
TELEPHONE:                 ( 910    )  725-2981               NUMBER:         56-1318322
                            -------- ----------------                ----------------------------------------------

</TABLE>

                                       2

<PAGE>

                                    ARTICLE I
                                   DEFINITIONS

1.11     COMPENSATION.
         ------------

DEFINITION  OF  COMPENSATION.  In lieu  of the  Code  Section  415  safe  harbor
definition of Compensation  included in Plan Section 1.11, the Plan shall define
Compensation as:

         [  ]     (a)      N/A.  Compensation shall be defined  pursuant  to the
                           Code  Section  415  safe-harbor included in the Plan.

         [X]      (b)      Earnings reportable as W-2 wages  for  Federal income
                           tax   withholding  purposes,  subject  to  any  other
                           election under this Adoption Agreement Section 1.11.

         [ ]      (c)

                           Wages  within  the meaning of Section  3401(a) of the
                           Code for the purposes of income tax withholding a the
                           source  but  determined  without  regard to any rules
                           that limit the  remuneration  included in wages based
                           on the nature or  location of the  employment  or the
                           services   performed   (such  as  the  exception  for
                           agricultural  labor  in  Section  3401(a)92)  of  the
                           Code).

MODIFICATIONS TO COMPENSATION DEFINITION.  [NOTE: Special limitations apply with
respect  to  the  definition  of   Compensation   for  various  Plan  purposes.]
Compensation  shall be defined as selected in (a), (b) or (c) above,  subject to
the following exclusions:

         [  ]     (a)      Include  salary  deferral  contributions made to this
                           Plan.  (THIS  IS  NOT  A  SAFE-HARBOR  DEFINITION  OF
                           COMPENSATION.)

         [X]      (b)      Include Elective Contributions (as defined in Section
                           1.11  of  the  Plan)  to  plans  maintained  by   the
                           Employer,  as well as salary  deferral  contributions
                           under this Plan.

         [ ]     (c)       Exclude Compensation in excess of $                 .
                                                              -----------------

         [ ]     (d)       Exclude bonuses.

         [ ]     (e)       Exclude overtime.

         [ ]     (f)       Exclude commissions.

         [X]     (g)       (SPECIFY)   Exclude  auto  allowance  and   insurance
                           -----------------------------------------------------
                           allowance provided to Highly Compensated Employees.
                           -----------------------------------------------------

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

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

METHOD FOR DETERMINING COMPENSATION.  Compensation shall mean remuneration:

         [X]      (a)      Actually paid.

         [  ]     (b)      Accrued  [NOTE:  Unavailable for Plan Years beginning
                           after December 31, 1991.]

NOTE: A written resolution must be adopted by the governing body of the Employer
if accrued  compensation is elected for Plan Years beginning prior to January 1,
1992.

PERIOD ON WHICH COMPENSATION BASED.  Compensation shall be based on:

                                       3
<PAGE>

         [X]      (a)      The Plan Year.

         [ ]      (b)      The fiscal year coinciding  with or ending within the
                           Plan Year.

         [ ]      (c)      The  calendar  year  coinciding with or ending within
                           the Plan Year:

1.15     EARLY RETIREMENT.
         ----------------

EARLY RETIREMENT AGE.  Early Retirement Age under the Plan is:

         [ ]      (a)      None provided.

         [ ]      (b)      ___________[STATE AGE; NO SERVICE REQUIREMENT].

         [X]      (c)      Attainment of age    55    and completion of at least
                                             --------
                              10    Years of Service.
                           --------

EARLY RETIREMENT DATE.  Early Retirement Date under the Plan is:

         [ ]     (a)      The date the Participant attains Early Retirement Age.

         [ ]     (b)      The   first  day  of  the  month  coinciding  with  or
                          following attainment of Early Retirement Age.

         [ ]     (c)      The  Adjustment  Date  of  any  Plan  Year  coinciding
                          with or  following  attainment of Early Retirement Age
                          and prior to Normal Retirement Age.

         [ ]     (d)      (SPECIFY)
                           -----------------------------------------------------

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

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

1.17     EFFECTIVE DATE.
         --------------

         [ ]      (a)      NEW PLAN.  The  "Effective  Date"  of  the  Plan   is
                           ____________________, 19__.

         [X]      (b)      RESTATED PLAN.  The  "Restated  Effective   Date"  is
                           January 1,  1989.  This  Plan  is  an  amendment  and
                           restatement of an existing retirement plan(s) with an
                           original "Effective Date" of February 1, 1982. [NOTE:
                           See the Effective Date Addendum.]  The Plan  was last
                           amended and restated effective January 1, 1985. Prior
                           to  this  amendment and  restatement, the name of the
                           Plan was Krispy Kreme Doughnut Corporation Retirement
                                    --------------------------------------------
                           Savings Plan.
                           ------------

401(K)  ARRANGEMENT.  The 401(k)  arrangement  selected  in  Adoption  Agreement
Section 4.02 is effective  as of January 1, 1989 (INSERT  EITHER THE  "EFFECTIVE
                                 ---------------
DATE OF THE PLAN" IF THIS IS A NEW PLAN, OR THE APPLICABLE EFFECTIVE DATE).

1.19     EMPLOYEE.   The  following Employees are not eligible to participate in
         --------    the Plan:

         [X]      (a)      No exclusions.

         [ ]      (b)      Any Employee compensated on a commission basis.

         [ ]      (c)      Any Employee compensated on a salaried basis.

         [ ]      (d)      Any Employee compensated on an hourly basis.

                                       4
<PAGE>

         [ ]      (e)      Any  part-time  Employee  (an  Employee  who  has   a
                           regularly  scheduled  workweek of fewer than ________
                           hours).

         [ ]      (f)      (SPECIFY)
                           -----------------------------------------------------

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

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

NOTE: Participating Employers are subject to the same eligibility exclusions, if
any, of this Adoption  Agreement  Section  1.19,  unless  specifically  provided
otherwise in an addendum.

1.23     ENTRY DATE.  Entry Date means one or more of the following:
         ----------

         [ ]     (a)       Effective Date (FOR ALL EMPLOYEES IN THE INITIAL YEAR
                           OF  PLAN  ADOPTION,  REGARDLESS  OF  ANY  ELIGIBILITY
                           REQUIREMENTS, THEREAFTER:)

         [ ]     (b)       Semi-annual Entry  Dates.  The  first day of the Plan
                           Year and the  first  day of the seventh  month of the
                           Plan Year coinciding  with  or  following  completion
                           of the eligibility requirements.

         [ ]     (c)       The  first   day  of  the  Plan  Year  in  which  the
                           eligibility requirements are completed.

         [ ]     (d)       The  first  day  of  the  Plan  Year  next  following
                           completion    of   the    eligibility    requirements
                           (ELIGIBILITY  REQUIREMENTS MAY NOT EXCEED 6 MONTHS OF
                           SERVICE  (1-1/2  YEARS  IF  100%  VESTING  PROVIDED),
                           AND/OR AGE 20-1/2).

         [X]     (e)       The  first  day  of  the  month  coinciding  with  or
                           following completion of the eligibility requirements.

         [ ]     (f)       The  first   day   of   the  Plan   Year,   if    the
                           eligibility requirements are completed in the first 6
                           months of the Plan Year, or the first day of the next
                           succeeding Plan Year if the eligibility  requirements
                           are completed in the last 6 months of the Plan Year.

         [ ]     (g)      (SPECIFY ENTRY DATES)
                           -----------------------------------------------------

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

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

[THE EMPLOYEE MUST BECOME A PARTICIPANT  BY THE EARLIER OF: (1) THE FIRST DAY OF
THE PLAN  YEAR  BEGINNING  AFTER  THE DATE THE  EMPLOYEE  COMPLETES  THE AGE AND
SERVICE  REQUIREMENTS  OF CODE SS.  410(A);  OR (2) 6 MONTHS  AFTER THE DATE THE
EMPLOYEE COMPLETES THOSE REQUIREMENTS.]

1.26     HOUR OF SERVICE.  The crediting method for Hours of Service is:
         ---------------

         [X]     (a)       The actual method.

         [ ]     (b)       The __________________ (DAILY,  WEEKLY,  SEMI-MONTHLY
                           PAYROLL  PERIODS,  OR  MONTHLY)  equivalency  method,
                           except:

                 [ ]       (1)      No exceptions.

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

                           [ ]      (i)     Participation under Article III.

                           [ ]      (ii)    Vesting under Article VI.

                           [ ]      (iii)   Allocation  of  contributions  under
                                            Article IV.

                                       5
<PAGE>

1.27     LEASED EMPLOYEES.  Any  Leased  Employee  treated  as an Employee under
         ----------------   Section 1.27 of the Plan is:

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

         [ ]      (b)      Eligible to participate in the Plan,  unless excluded
                           by  reason  of an  exclusion  classification  elected
                           under Adoption Agreement Section 1.19.

1.28     LIMITATION YEAR.  The Limitation Year is:
         ---------------

         [X]      (a)      The Plan Year.

         [ ]      (b)      The fiscal year of the Employer

         [ ]      (c)      The 12 consecutive month period ending every _______.

1.37     NORMAL RETIREMENT.
         -----------------

NORMAL RETIREMENT AGE.  Normal Retirement Age under the Plan is:

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

         [ ]      (b)      The later of the date the Participant attains _______
                           years of age or the anniversary  of the first  day of
                           the  Plan  Year in which  the  Participant  commenced
                           participation in the Plan. [THE AGE SELECTED MAY  NOT
                           EXCEED AGE 65 AND THE  ANNIVERSARY  SELECTED  MAY NOT
                           EXCEED THE 5TH. IF THE ANNIVERSARY  EVER EXCEEDED THE
                           5TH, COMPLETE THE FOLLOWING.]

                  [ ]      (1)    N/A - Original  Plan   Effective   Date  after
                                  12/31/88  OR  pre-1988  Normal  Retirement Age
                                  provided five or fewer years of participation.
                  [ ]      (2)    No transition  desired.  The selection made in
                                  (b) above  shall apply  to  all  Participants,
                                  regardless  of    the   commencement  date  of
                                  participation in the Plan.

                  [ ]      (3)    The pre-1988 participation requirement was ___
                                  years of participation.  The Normal Retirement
                                  Date   for   any   Participant   who commenced
                                  participation prior to  the first day  of  the
                                  Plan  Year  beginning  in  1988, shall  not be
                                  earlier than  the earlier of (i)  the required
                                  years of participation in effect at such time,
                                  or  (ii)  the 5th anniversary of the first day
                                  of the Plan Year beginning in 1988.

NORMAL RETIREMENT DATE.  Normal Retirement Date under the Plan is:

         [X]      (a)      The  date  the  Participant attains Normal Retirement
                           Age.

         [ ]      (b)      The  first  day  of  the  month  coinciding  with  or
                           following  attainment  of  Normal Retirement Age.

         [ ]      (c)      The Adjustment Date of the Plan Year  coinciding with
                           or following  attainment of Normal Retirement Age.

         [ ]      (d)      The  Adjustment  Date  of  the  Plan Year nearest the
                           Participant's Normal Retirement Age.

                                       6
<PAGE>

         [  ]     (e)      (SPECIFY)
                                    --------------------------------------------

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

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

1.41     PLAN YEAR.  Plan Year means:
         ---------

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

         [ ]      (b)      (SPECIFY)
                                    --------------------------------------------

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

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

CHANGE IN PLAN YEAR.

         [X]      (a)      No change in Plan Year.

         [ ]      (b)      Short Plan Year commenced ____________________, 19___
                           and ended ___________________, 19__.

SHORT INITIAL YEAR.

         [X]      (a)      No short initial year.

         [ ]      (b)      Short initial year commenced _______________________,
                           19__ and ended _______________, 19__.

1.47     TAXABLE YEAR.  The Employer's Taxable Year is:
         ------------

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

         [ ]      (b)      (SPECIFY)

SHORT INITIAL TAXABLE YEAR.

         [X]      (a)      No short year.

         [ ]      (b)      Short taxable year commenced __________________, 19__
                           and ended _________________, 19__.

1.51     VALUATION DATE.  In addition to each Adjustment Date, allocations shall
         ---------------
         be  made  and  Accounts  shall be  valued as of the following valuation
         date(s) during the Plan Year:

         [ ]      (a)      No other mandatory valuation dates.

         [ ]      (b)      Semi-annual valuation dates (the  Adjustment Date and
                           the  date  which  is  the  end  of  the  sixth  month
                           thereafter).

         [ ]      (c)      Quarterly valuation dates.

         [ ]      (d)      Monthly valuation dates.

         [X]      (e)      Daily valuation.

         [ ]      (f)      (SPECIFY)
                                    --------------------------------------------

                                       7
<PAGE>

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

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

1.52     YEAR OF SERVICE.  After the initial  computation  period measured from
         ---------------
         the Employment  Commencement  Date, the Plan measures a Year of Service
         on the basis of the following 12 consecutive month period:

         [X]      (a)      Plan Year.

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

NOTE:  The  Employer is required  to credit each  Participant  with two Years of
Service for vesting  purposes if the Plan  experienced a short Plan Year because
of a change in Plan Years,  provided the Participant completes a Year of Service
for the twelve month period beginning with the first day of the short Plan Year,
and further completes a Year of Service for the twelve month period beginning on
the first day of the new Plan Year.

HOURS OF  SERVICE.  The  minimum  number of Hours of  Service an  Employee  must
complete during a computation period to receive credit for a Year of Service is:

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

         [ ]      (b)      ____________ Hours of Service (MAY NOT EXCEED 1,000).

                                       8

<PAGE>

                                   ARTICLE II
                          ELIGIBILITY AND PARTICIPATION

2.01     ELIGIBILITY.
         -----------

ELIGIBILITY CONDITIONS.  An  Employee  must  satisfy the following conditions to
become a Participant in the Plan:

         [ ]      (a)      No  age  or  service required - immediate eligibility
                           upon Employment Commencement Date.

         AGE AND/OR SERVICE:  (IF (A) NOT SELECTED, CHOOSE (B) AND/OR (C))

         [X]      (b)      AGE.   Attainment  of  age   18   (SPECIFY  AGE,  NOT
                           EXCEEDING 21).            ------

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

                  [X]      (1)      One Year of Service.

                  [ ]      (2)      Two Years of Service, without an intervening
                                    Break in Service. See Section 2.03(a) of the
                                    Plan.  (IF THIS OPTION IS SELECTED, THE PLAN
                                    MUST  PROVIDE FOR 100% VESTING)

                  [ ]      (3)      ________ months (NOT EXCEEDING 24) following
                                    the Employee's Employment Commencement Date.
                                    (IF  NUMBER  OF  MONTHS EXCEEDS 12, THE PLAN
                                    MUST PROVIDE FOR 100% VESTING)

DUAL  ELIGIBILITY.  If  this  is an  amended  and  restated  Plan  with  amended
eligibility  conditions,  then such  amended  conditions  shall apply  solely to
Employees employed by the Employer after________________________________________
_______________________________________________________________________________.

2.02     YEAR OF SERVICE - PARTICIPATION.
         -------------------------------

ELIGIBILITY COMPUTATION PERIOD. After the initial eligibility computation period
described in Section 2.02 of the Plan (WHICH IS THE 12 CONSECUTIVE  MONTH PERIOD
MEASURED  FROM  THE  EMPLOYMENT   COMMENCEMENT  DATE),  the  Plan  measures  the
eligibility computation period as:

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

         [ ]      (b)      The 12 consecutive  month period  beginning with each
                           anniversary of the Employee's Employment Commencement
                           Date.

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

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

         [  ]     (b)      Applies to the Plan.

                                       9
<PAGE>

2.09     ELECTION NOT TO PARTICIPATE.  The Plan:
         ---------------------------

         [ ]      (a)      Does not permit eligible Employees or Participants to
                           elect not to participate.

         [X]      (b)      Permits eligible Employees  or Participants  to elect
                           not to participate in accordance with Section 2.09 of
                           the Plan.

2.10     SERVICE  FOR  PREDECESSOR  EMPLOYER.  In  addition  to the  predecessor
         -----------------------------------
         service, the Plan must credit by reason  of  Section  2.10 of the Plan,
         the Plan credits Service with the following predecessor employer(s):

         Predecessor Employer:    Period  for  which  Service  Credited  (INSERT
         --------------------     -------------------------------------
                                         EITHER:  ACTUAL DATES, "PERIOD PLAN WAS
                                         MAINTAINED," OR "PERIOD OF EMPLOYMENT")

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

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

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

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

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

         Service with the designated predecessor employer(s) applies:

         [ ]      (a)      For purposes of participation under Article III.

         [ ]      (b)      For purposes of vesting under Article VI.

                                       10
<PAGE>

                                   ARTICLE III
                            PARTICIPANT CONTRIBUTIONS

3.01     PARTICIPANT NONDEDUCTIBLE CONTRIBUTIONS.  The Plan:
         ---------------------------------------

         [ ]      (a)      Does     not     permit    voluntary    nondeductible
                           contributions.

         [ ]      (b)      (FOR RESTATED PLANS ONLY)  Does  not permit voluntary
                           nondeductible contributions,  but  maintains accounts
                           for such contributions made prior to January 1, 1987.

         [ ]      (c)      (FOR  RESTATED PLANS ONLY) Does not permit  voluntary
                           nondeductible  contributions,  but maintains accounts
                           for such contributions made prior to _______________,
                           19___ (INSERT DATE).

         [X]      (d)      Permits voluntary nondeductible contributions. [NOTE:
                           Voluntary nondeductible contributions  are subject to
                           strict nondiscrimination requirements.]

         [ ]      (e)      (SPECIFY)____________________________________________

                           _____________________________________________________

                           _____________________________________________________

3.02     PARTICIPANT MANDATORY  CONTRIBUTIONS.   In  order  to  be  eligible  to
         ------------------------------------
         share in Employer  Matching Contributions, each Participant is required
         to contribute:

         [X]      (a)      N/A.  No mandatory contributions required.

         [ ]      (b)      ________% of his Compensation.

         [ ]      (c)      From ___________% to __________% of his Compensation.

WITHDRAWAL RESTRICTIONS OF MANDATORY CONTRIBUTIONS.  Mandatory contributions:

         [ ]      (a)      May  not  be  withdrawn by a Participant prior to his
                           termination of employment.

         [ ]      (b)      May  be  withdrawn  only  if  Mandatory Contributions
                           are suspended and further restrictions are imposed as
                           though  the  Mandatory  Contributions  were  Elective
                           Contributions and the Participant received a hardship
                           distribution  subject  to  the safe-harbor provisions
                           of Plan Section 7.03.

3.03     QUALIFIED VOLUNTARY EMPLOYEE CONTRIBUTIONS (FOR RESTATED PLANS ONLY).
         ------------------------------------------
         The Plan:

         [X]      (a)      Never   permitted   Qualified   Voluntary    Employee
                           Contributions.

         [ ]      (b)      Permitted  Qualified Voluntary Employee Contributions
                           prior to January 1, 1987.

3.04     ROLLOVER CONTRIBUTIONS.  The Plan:
         ----------------------

         [ ]      (a)      Does not permit rollovers.

         [X]      (b)      Permits rollovers:

                  [ ]      (1)      By Participants only.

                  [X]      (2)      By Employees and Participants

3.05     TRUSTEE-TO-TRUSTEE TRANSFERS TO THE PLAN.  The Plan:
         ----------------------------------------

                                       11
<PAGE>

         [ ]      (a)      Does not accept trustee-to-trustee transfers.

         [X]      (b)      Accepts trustee-to-trustee transfers:

                  [X]      (1)      only  from  a  plan  which is not  otherwise
                                    subject to the survivor annuity requirements
                                    of the Code.

                  [ ]      (2)      from any plan.

                                       12
<PAGE>

                                   ARTICLE IV
                     EMPLOYER CONTRIBUTIONS AND FORFEITURES

4.02     CODE SECTION 401(k) ARRANGEMENT.  The  Code section  401(k) arrangement
         -------------------------------   shall be:

         [X]      (a)      Salary Reduction Arrangement. Each Employee may elect
                           to have his compensation reduced by:

                  [ ]      (1)      ________%

                  [ ]      (2)      up to __________%

                  [X]      (3)      from     1     % to    15     %
                                         ----------     ----------

                  [ ]      (4)      up  to  the maximum percentage allowable not
                                    to exceed the limits of Code section 401(k),
                                    404 and 415.

         [ ]      (b)      Cash or Deferred Arrangement.  Each  Participant  may
                           elect to receive in cash,  up to _____% of Employer's
                           allocable  contribution.  (IF   THIS   OPTION  (B) IS
                           SELECTED, PLEASE SKIP TO SECTION 4.04.)

SALARY REDUCTION  ELECTIONS.  (COMPLETE ONLY IF OPTION (A) ABOVE SELECTED). Each
Participant's Salary Reduction Election shall be effective as of his Entry Date.
Thereafter, modifications may be made:

         [ ]      (a)      As of the first day of each Plan Year.

         [ ]      (b)      Semi-annually.  The  first  day of the Plan  Year and
                           the first day of the seventh  month of the Plan Year.

         [ ]      (c)      Quarterly, based on the Plan Year.

         [ ]      (d)      As of any pay period.

         [X]      (e)     (SPECIFY)  As  of  the  beginning  of  any  month.  In
                           addition to regular Salary  Reduction  Agreement made
                           pursuant  to ss.  4.02,  each  Participant  may  make
                           special  election  to  defer  up to 100% of  bonus or
                           incentive  pay  designated  by the  Employer as being
                           eligible  for this  special  election.  Such  special
                           election must be made by August 1 of each year.

NOTE:  All elections to modify a Salary Reduction Election must be made prior to
the first day of the pay period for which such modification shall be effective.

BONUSES  PAID.  Shall cash bonuses paid within 2 1/2 months after the end of the
Plan Year be subject to a Participant's  Salary Reduction Election for the prior
Plan Year?

         [X]      (a)      No

         [ ]      (b)      Yes,  subject  to the election of the Employee in his
                           salary reduction agreement

                                       13

<PAGE>

4.03     MATCHING  CONTRIBUTIONS.  Subject to the maximum contribution indicated
         below,  and  further  subject to any  limitations  set forth in Section
         4.06,  the Employer  shall make Matching  Contributions  to the Plan in
         accordance  with the following  formula  (OPTION (B) MAY BE SELECTED IN
         ADDITION TO OPTION (C) OR (D)):

         [ ]      (a)      N/A.  No matching contributions shall be made.

         [ ]      (b)      Matching Contributions shall be an amount equal to
                           _____%  of the  Participant's Mandatory Nondeductible
                           Contribution.

         [X]      (c)      Matching    Contributions    in    a    discretionary
                           percentage,  to  be  determined  by  the Employer, of
                           the Participant's Salary Reduction Contribution.

         [ ]      (d)      Matching  Contributions  shall be an amount equal  to
                           _____%  of   the   Participant's   Salary   Reduction
                           Contribution.

         [ ]      (e)      Matching  Contributions shall  be  an amount equal to
                           the   percentage  determined   under   the  following
                           schedule:

                              Participant's Total           Matching Percentage
                               Years of Service

                                    _____                           _____
                                    _____                           _____
                                    _____                           _____

         [ ]      (f)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

MAXIMUM PERMITTED MATCHING CONTRIBUTION.  The  amount of the Employer's Matching
Contribution shall be limited to:

         [X]      (a)      Only salary reductions up to    6% of a Participant's
                           Compensation will be matched.  ---

         [ ]      (b)      $______________

         [ ]      (c)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

ALLOCATION OF MATCHING CONTRIBUTIONS.  Subject to satisfaction of the allocation
requirements,   Matching Contributions shall be made on behalf of:

         [X]      (a)      All Participants

         [ ]      (b)      Only nonhighly compensated Participants

ALLOCATION REQUIREMENTS FOR MATCHING CONTRIBUTIONS.  To receive an allocation of
Employer Matching  Contributions for the Plan Year, an eligible  Participant who
made Deferral Contributions under the Plan must satisfy the conditions described
in the following elections:

         [X]      (a)      No    conditions   other   than     making   Deferral
                           Contributions.

         [ ]      (b)      SAFE HARBOR.  If  the  Participant is employed by the
                           Employer  on  the  last  day  of  the  Plan  Year  or
                           completes  at least 501 Hours of  Service  during the
                           Plan  Year  prior  to   termination   of  employment.

                                       14
<PAGE>

                           Provided,   however,   Participant  will  receive  an
                           allocation of the  Employer's  Matching  Contribution
                           regardless of Hours of Service and employment  status
                           on the last day of the Plan Year if such  Participant
                           terminates employment during the Plan Year on account
                           of:

                  [ ]      (1)      N/A, no exceptions.

                  [ ]      (2)      Death.

                  [ ]      (3)      Disability.

                  [ ]      (4)      Completion  of Early Retirement requirements
                                    in the  current or a prior Plan Year.

                  [ ]      (5)      Attainment of Normal Retirement  Age  in the
                                    current or a prior Plan Year.

         [ ]      (c)      HOURS OF  SERVICE  CONDITION.  The  Participant  must
                           complete  the  following  minimum  number of Hours of
                           Service for the Plan Year:

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

                  [ ]      (2)      (SPECIFY, BUT MAY NOT EXCEED 1,000) _______.

                  [ ]      (3)      No   Hour  of  Service  requirement  if  the
                                    Participant terminates employment during the
                                    Plan Year on account of (MAY ONLY BE ELECTED
                                    IN ADDITION TO (1) OR (2) ABOVE):

                           [ ]      (i)     N/A, no exceptions.

                           [ ]      (ii)    Death.

                           [ ]      (iii)   Disability.

                           [ ]      (iv)    Completion    of   Early  Retirement
                                            requirements  in  the  current or  a
                                            prior Plan Year.

                           [ ]      (v)     Attainment of Normal Retirement  Age
                                            in  the  current  Plan  Year or in a
                                            prior Plan Year.

         [ ]     (d)       EMPLOYMENT  CONDITION.   The   Participant   must  be
                           employed by the  Employer on the last day of the Plan
                           Year, regardless of whether he satisfies any Hours of
                           Service   condition   under  Option  (c).   Provided,
                           however,  the employment condition shall not apply if
                           the Participant terminates employment on account of:

                  [ ]      (1)      N/A, no exceptions.

                  [ ]      (2)      Death.

                  [ ]      (3)      Disability.

                  [ ]      (4)      Completion of Early Retirement  requirements
                                    in the  current or a prior Plan Year.

                  [ ]      (5)      Attainment  of  Normal Retirement Age in the
                                    current or a prior Plan Year.

         [ ]      (e)      (SPECIFY OTHER CONDITIONS, IF APPLICABLE):___________

                                       15
<PAGE>

                           _____________________________________________________
                           _____________________________________________________

ALLOCATION  DATES FOR  MATCHING  CONTRIBUTIONS.  Subject to  satisfaction of the
allocation  requirements,  Matching  Contributions  shall  be  made on behalf of
Participants as of:

         [X]      (a)      The last day of the Plan Year

         [ ]      (b)      The last day of each quarter of the Plan Year

         [ ]      (c)      Semi-annually, as of the last day of  the sixth month
                           of the Plan Year

         [ ]      (d)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

TREATMENT OF MATCHING  CONTRIBUTIONS.  All Matching Contributions under the Plan
shall be allocated by the Plan Administrator to the Participant's:

         [ ]      (a)      Qualified Matching Contribution Account. The Matching
                           Contribution  will be used to  satisfy  the  deferral
                           percentage test of Plan Section 4.12.

         [X]      (b)      Regular Matching Contribution Account.  The  Matching
                           Contribution   will   be  tested  pursuant  to   Plan
                           Section 4.18.

VESTING OF MATCHING CONTRIBUTIONS.  Matching Contributions:

         [X]      (a)      Are  100%  vested  and  nonforfeitable  at  all times
                           (MUST  BE  SELECTED  IF  MATCHING  CONTRIBUTIONS  ARE
                           ALLOCATED  TO  THE  QUALIFIED  MATCHING  CONTRIBUTION
                           ACCOUNT).

         [ ]      (b)      Shall  vest in  accordance with the vesting  schedule
                           elected in  Adoption  Agreement Section 5.05.

4.04     DISCRETIONARY NONELECTIVE CONTRIBUTIONS.    Discretionary   Nonelective
         ---------------------------------------     Contributions:

         [ ]      (a)      Shall not be made.

         [X]      (b)      Are made out of the Employer's current or accumulated
                           Net Profit.

         [ ]      (c)      Are   not   limited  to  the  Employer's  current  or
                           accumulated Net Profit.

ALLOCATION OF DISCRETIONARY NONELECTIVE CONTRIBUTION. Subject to any restoration
allocation  required  under  Sections  5.08 and 5.09 or 10.15,  to the top-heavy
minimum  allocation  provisions of Section 18.04(a),  and to any limitations set
forth in Section  4.06,  the Plan  Administrator  will  allocate and credit each
annual Employer  contribution to the Account of each Participant who is entitled
to receive an  allocation,  in accordance  with the allocation  method  selected
under this Section 4.04 (CHOOSE AN ALLOCATION METHOD UNDER (A), (B), (C), (D) OR
(E); (F) IS MANDATORY IF THE EMPLOYER ELECTS (C), (D) OR (E)).

         [ ]      (a)      NONINTEGRATED ALLOCATION  FORMULA.  In the ratio that
                           each  Participant's  Compensation  for  the Plan Year
                           bears to the total  Compensation  of all Participants
                           entitled  to receive an allocation for the Plan Year.

         [ ]      (b)      POINT  SYSTEM.  In the ratio that each  Participant's
                           Points for the Plan Year bears to the total Points of
                           all  Participants  entitled to receive an  allocation
                           for the Plan Year. (CHOOSE (1) AND/OR (2))

                                       16

<PAGE>

                  [ ]      (1)      ______ Points for each Plan Year of Service.

                  [ ]      (2)      ______ Points  for  each $____________    of
                                    Compensation.

         [X]      (c)      TWO-TIERED  INTEGRATED ALLOCATION FORMULA  -  MAXIMUM
                           DISPARITY.    First,   in   the   ratio   that   each
                           Participant's  Compensation plus Excess  Compensation
                           (ELECTED IN (F) BELOW) for the Plan Year bears to the
                           total  Compensation  plus Excess  Compensation of all
                           Participants  entitled to receive an  allocation  for
                           the Plan Year,  not to exceed the  maximum  disparity
                           rate,  subject to the  provisions of Section 18.04 of
                           the Plan.

                           Second,  any remaining  amount in the ratio that each
                           Participant's Compensation for the Plan Year bears to
                           the total  Compensation of all Participants  entitled
                           to receive an allocation for the Plan Year.

         [ ]      (d)      THREE-TIERED INTEGRATED ALLOCATION FORMULA. First, in
                           the ratio  that  each  Participant's Compensation for
                           the Plan Year bears to the  total Compensation of all
                           Participants  entitled to receive  an  allocation for
                           the   Plan  Year,  but   not  exceeding  3%  of  each
                           Participant's Compensation.

                           Second, in the ratio that each  Participant's  Excess
                           Compensation (ELECTED IN (F) below) for the Plan Year
                           bears  to  the  total  Excess   Compensation  of  all
                           Participants  entitled to receive an  allocation  for
                           the Plan Year,  not to exceed the  maximum  disparity
                           rate,  subject to the  provisions of Section 18.04 of
                           the Plan.

                           Finally,  any remaining amount in the ratio that each
                           Participant's Compensation for the Plan Year bears to
                           the total  Compensation of all Participants  entitled
                           to receive an allocation for the Plan Year.

         [ ]      (e)      FOUR-TIERED INTEGRATED ALLOCATION  FORMULA. First, in
                           the  ratio   that   each   Participant's Compensation
                           for the Plan  Year bears to the total Compensation of
                           all Participants  entitled to receive  an  allocation
                           for  the  Plan  Year,  but  not  exceeding 3% of each
                           Participant's Compensation.

                           Second, in the ratio that each  Participant's  Excess
                           Compensation (ELECTED IN (F) below) for the Plan Year
                           bears  to  the  total  Excess   Compensation  of  all
                           Participants  entitled to receive an  allocation  for
                           the  Plan  Year,   but  not   exceeding  3%  of  each
                           Participant's Excess Compensation.

                           Third,   in  the  ratio   that   each   Participant's
                           Compensation  plus Excess  Compensation  for the Plan
                           Year  bears to the  total  Compensation  plus  Excess
                           Compensation of all Participants  entitled to receive
                           an  allocation  for the Plan Year,  not to exceed the
                           maximum disparity rate,  subject to the provisions of
                           Section 18.04 of the Plan.

                           Fourth,  any remaining  amount in the ratio that each
                           Participant's Compensation for the Plan Year bears to
                           the total  Compensation of all Participants  entitled
                           to receive an allocation for the Plan Year.

         [ ]      (f)      EXCESS   COMPENSATION/INTEGRATION    LEVEL.   "Excess
                           Compensation"  means  Compensation  in  excess of the
                           following Integration Level: (CHOOSE (1) OR (2))

                  [ ]      (1)      100%  of the taxable  wage base in effect on
                                    the   first  day   of   the  Plan  Year,  as
                                    determined  under  Section 230 of the Social
                                    Security Act

                  [ ]      (2)      The greater of $10,000 or 20% of the taxable
                                    wage base.

                                       17
<PAGE>

                  [X]      (3)        50  % (NOT TO EXCEED 100%)  of the taxable
                                    ------  wage base (SEE NOTE BELOW)

                  [ ]      (4)      $_________ [NOTE:  Not exceeding the taxable
                                    wage base for the Plan Year in which this
                                    Adoption Agreement first is effective.] (SEE
                                    NOTE BELOW)

         NOTE:    The  excess  percentage in Option (f) above may not exceed the
         LESSER  of  the  following  limits  and  shall be adjusted each year as
         appropriate:

                  A.       The base contribution percentage.
                  B.       4.3% if Option  (3) or (4) above is more than 20% and
                           less than or equal to 80% of the taxable wage base.
                  C.       5.4% if Option (3) or (4) above is less than 100% and
                           more than 80% of the taxable wage base.

ADDITIONAL ALLOCATION REQUIREMENTS FOR DISCRETIONARY NONELECTIVE  CONTRIBUTIONS.
Subject to the suspension of contribution requirements of Section 4.06(d) of the
Plan,   to  receive  an  allocation   of  Employer   Discretionary   Nonelective
Contributions and Participant forfeitures,  if applicable,  for the Plan Year, a
Participant must satisfy the conditions described in the following elections:

         [X]      (a)      SAFE HARBOR RULE.  If  the  Participant  is  employed
                           by the  Employer  on the last day of the Plan Year or
                           completes  at least 501 Hours of  Service  during the
                           Plan  Year  prior  to   termination   of  employment.
                           Provided,   however,   Participant  will  receive  an
                           allocation    of   the    Employer's    Discretionary
                           Nonelective   Contribution  regardless  of  Hours  of
                           Service and employment  status on the last day of the
                           Plan Year if such Participant  terminates  employment
                           during the Plan Year on account of:

                  [ ]      (1)      N/A, no exceptions.

                  [X]      (2)      Death.

                  [X]      (3)      Disability.

                  [X]      (4)      Completion  of Early Retirement requirements
                                    in the current or a prior Plan Year.

                  [X]      (5)      Attainment of  Normal  Retirement Age in the
                                    current or a prior Plan Year.

         [ ]      (b)      HOURS OF  SERVICE  CONDITION.  The  Participant  must
                           complete  the  following  minimum  number of Hours of
                           Service for the Plan Year:

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

                  [ ]      (2)      (SPECIFY, BUT MAY NOT EXCEED 1,000)________.

                  [ ]      (3)      No  Hour  of  Service  requirement  if   the
                                    Participant terminates employment during the
                                    Plan Year on account of (MAY ONLY BE ELECTED
                                    IN ADDITION TO (1) OR (2) ABOVE):

                           [ ]      (i)    N/A, no exceptions.

                           [ ]      (ii)   Death.

                           [ ]      (iii)  Disability.

                           [ ]      (iv)   Completion   of    Early   Retirement
                                           requirements  in  the  current  or  a
                                           prior Plan Year.

                                       18

<PAGE>

                           [ ]      (v)    Attainment of  Normal  Retirement Age
                                           in  the  current  Plan  Year or  in a
                                           prior Plan Year.

         [ ]      (c)      EMPLOYMENT  CONDITION.   The  Participant   must   be
                           employed by the  Employer on the last day of the Plan
                           Year, regardless of whether he satisfies any Hours of
                           Service   condition   under  Option  (b).   Provided,
                           however,  the employment condition shall not apply if
                           the Participant terminates employment because of:

                  [ ]      (1)      N/A, no exceptions.

                  [ ]      (2)      Death.

                  [ ]      (3)      Disability.

                  [ ]      (4)      Completion of Early  Retirement requirements
                                    in the  current or a prior Plan Year.

                  [ ]      (5)      Attainment  of  Normal Retirement Age in the
                                    current or a prior Plan Year.

         [X]      (d)      (SPECIFY OTHER CONDITIONS, IF APPLICABLE):
                           Discretionary   Nonelective   Contributions  may   be
                           -----------------------------------------------------
                           allocated     to     specified      nondiscriminatory
                           -----------------------------------------------------
                           classifications of employees.  Special  Discretionary
                           -----------------------------------------------------
                           Nonelective  Contributions  of $20 per week  shall be
                           -----------------------------------------------------
                           made on  behalf of eligible  Participants who decline
                           -----------------------------------------------------
                           coverage  under the Flexible  Benefits Plan.  Special
                           -----------------------------------------------------
                           Discretionary  Nonelective Contributions of up to $25
                           -----------------------------------------------------
                           per  week  shall  be  made  on   behalf  of  eligible
                           -----------------------------------------------------
                           Participants   who  are  route  sales  persons,  shop
                           -----------------------------------------------------
                           managers,  assistant  shop  managers,  or  key  staff
                           -----------------------------------------------------
                           employees,  to  the  extent  that  such  Participants
                           -----------------------------------------------------
                           decline full  coverage  under  the  Flexible Benefits
                           -----------------------------------------------------
                           Plan.
                           ----

4.05     QUALIFIED NONELECTIVE CONTRIBUTIONS.
         -----------------------------------

         [ ]      (a)      N/A, no Qualified Non-Elective Contributions shall be
                           made to the Plan.

         [ ]      (b)      The  Employer  shall  make  a  Qualified Non-Elective
                           Contribution  equal   to ___________%   of  the total
                           Compensation of all Participants eligible to share in
                           the allocations.

         [X]      (c)      The  Employer  may  make  a  Qualified   Non-Elective
                           Contribution  in an  amount to be  determined  by the
                           Employer in its discretion.

ALLOCATIONS  TO  TERMINATED   PARTICIPANTS.   Any   Participant  who  terminated
employment  during the Plan Year for any  reason  other  than  death,  Total and
Permanent  Disability or retirement  (either on account of  satisfaction  of the
Early Retirement  requirements or attainment of Normal  Retirement age) shall be
entitled to an allocation of the Employer's Qualified Non-Elective Contribution,
subject to the following elections:

         [ ]      (a)      N/A, Plan does not provide for such contributions.

         [ ]      (b)      Terminated  Participants who  completed more than 500
                           Hours of Service.

         [ ]      (c)      Terminated  Participants  who  completed  a  Year  of
                           Service.

         [ ]      (d)      Terminated  Participants  shall  not  share  in  such
                           allocations, regardless of Hours of Service.

NOTE:    If (c) or (d) is selected, the Plan could violate minimum participation
         and coverage requirements under Code Sections 401(a)(26) and 410.

                                       19
<PAGE>

4.06     ACCRUAL OF BENEFIT.

COMPENSATION TAKEN INTO ACCOUNT. For the initial Plan Year in which the Employee
becomes a  Participant,  the  Participant's  compensation  for  purposes  of the
Employer's Nonelective Contributions will be based on:

         [X]      (a)      The entire Plan Year.

         [ ]      (b)      The  period from such Participant's Entry Date to the
                           end of the Plan Year.

ALLOCATION OFFSET (OPTIONAL). The Plan Administrator will reduce a Participant's
allocation   otherwise  made  under  this  Section  4.06  by  the  Participant's
allocation under the following qualified plan(s) maintained by the Employer:

TOP-HEAVY  MINIMUM  ALLOCATION  -  METHOD  OF  COMPLIANCE.  If  a  Participant's
allocation under this Section 4.06 is less than the top-heavy minimum allocation
to which he is entitled under Section 18.04(a):

         [X]      (a)      The  Employer  will  make  any  necessary  additional
                           contribution  to  the   Participant's   Account,   as
                           described in Sections 18.04(e) of the Plan.

         [ ]      (b)      The  Employer  will  satisfy  the  top-heavy  minimum
                           allocation  under  the  following plan(s): __________
                           _____________________________________________________

SUSPENSION OF  CONTRIBUTIONS  TO SATISFY COVERAGE OR PARTICIPATION REQUIREMENTS.
The suspension of contribution requirements of Section 4.06(d) of the Plan:

         [ ]      (a)      Applies to the Plan.

         [X]      (b)      Does not apply to the Plan.

         [ ]      (c)      Applies in modified form to the Plan, as described in
                           an  addendum  to  this  Adoption  Agreement, numbered
                           Section 4.06(d).

4.09     FORFEITURE ALLOCATION.  All Participant forfeitures shall be subject to
         ----------------------  any  restoration  required under Sections 5.08,
         5.09 or 10.15.

FORFEITURES OF DISCRETIONARY NONELECTIVE  CONTRIBUTIONS.  The Plan Administrator
will apply Participant forfeitures from Discretionary  Nonelective Contributions
((A) OR (B) MUST BE ELECTED):

         [ ]      (a)      N/A,  Discretionary Nonelective  Contributions always
                           100% vested.

         [X]      (b)      As   a  Discretionary  Nonelective  Contribution  for
                           the Plan Year in which the forfeiture  occurs,  as if
                           the   Participant   forfeiture   were  an  additional
                           Discretionary  Nonelective Contribution for that Plan
                           Year.

         [ ]      (c)      To reduce the Discretionary Nonelective  Contribution
                           for the Plan Year in which the forfeiture occurs, and
                           if necessary, in the succeeding Plan Year.

         [ ]      (d)      First to reduce the Plan's  ordinary   and  necessary
                           administrative  expenses  for the Plan Year, with the
                           balance  to  be  allocated  pursuant to Option (b) or
                           Option (c), whichever was elected.

         [X]      (e)      (SPECIFY)  Allocated  only  among  Participants  with
                                      ------------------------------------------
                           Profit-Sharing Accounts.
                           -----------------------

                                       20
<PAGE>

FORFEITURES  OF  MATCHING  CONTRIBUTIONS.  The  Plan  Administrator  will  apply
Participant  forfeitures of Matching  Contributions,  including forfeited excess
aggregate  contributions  pursuant to Plan Section 4.21 (OPTION (A), (B), (C) OR
(D) MUST BE ELECTED, (E) MAY BE ELECTED IN ADDITION TO ANY OTHER OPTION):

         [X]      (a)      N/A.  Matching Contribution always 100% vested.

         [ ]      (b)      To reduce the Employer  Matching Contribution for the
                           Plan  Year  in  which  the  forfeiture occurs, and if
                           necessary, in the succeeding Plan Year.

         [ ]      (c)      Added to  the Employer's   Discretionary  Nonelective
                           Contribution    (or   treated   as   a  Discretionary
                           Nonelective  Contribution   if  none  is  made)   and
                           reallocated to all Participants eligible to share  in
                           the  Employer's contribution,  based on Compensation.

         [ ]      (d)      Added to  the Employer's   Discretionary  Nonelective
                           Contribution    (or   treated   as   a  Discretionary
                           Nonelective   Contribution  if  none  is   made)  and
                           reallocated    to    all    non-highly    compensated
                           Participants  eligible  to  share  in the  Employer's
                           contribution, based on Compensation.

         [ ]      (e)      First to reduce  the  Plan's  ordinary  and necessary
                           administrative  expenses  for the Plan Year, with the
                           balance to be  allocated  pursuant to Option (b), (c)
                           or (d), whichever was elected.

         [ ]      (f)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

4.11     ALLOCABLE  INCOME  ATTRIBUTABLE  TO  EXCESS  DEFERRALS.  In lieu of the
         manner  of  determining   allocable   income  with  respect  to  Excess
         Deferrals,  as set  forth in  Section  4.11 of the Plan,  the  Employer
         elects to use the following  reasonable method of computing income (THE
         SELECTED   METHOD  MUST  BE  USED   CONSISTENTLY   FOR  ALL  CORRECTIVE
         DISTRIBUTIONS UNDER THE PLAN AND MUST BE THE MANNER USED BY THE PLAN IN
         ALLOCATING INCOME TO PARTICIPANT'S ACCOUNTS):

         [X]      (a)      N/A   The  Employer  elects  to  use  the  manner  of
                           determining  allocable income as set forth in Section
                           4.11 of the Plan.

         [  ]     (b)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

GAP PERIOD  INCOME ON EXCESS  DEFERRALS.  With respect to the "gap  period," the
Employer elects the following manner of allocating income on Excess Deferrals:

         [X]      (a)      No income will be allocated for the gap period.

         [ ]      (b)      Income  will  be  allocated for the gap period in the
                           manner provided in Section 4.11.

         [ ]      (c)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

4.16     DISTRIBUTION  OF  EXCESS  CONTRIBUTIONS.  In  lieu  of  the  manner  of
         ---------------------------------------
         determining allocable income with respect to Excess  Contributions,  as
         set forth in Section 4.16 of the Plan,  the Employer  elects to use the
         following  reasonable  method of computing  income (THE SELECTED METHOD

                                       21
<PAGE>

         MUST BE USED  CONSISTENTLY FOR ALL CORRECTIVE  DISTRIBUTIONS  UNDER THE
         PLAN AND MUST BE THE MANNER  USED BY THE PLAN IN  ALLOCATING  INCOME TO
         PARTICIPANT'S ACCOUNTS):

         [X]      (a)      N/A.  The  Employer  elects  to  use the   manner  of
                           determining allocable  income as set forth in Section
                           4.16 of the Plan.

         [ ]      (b)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

GAP PERIOD INCOME ON EXCESS CONTRIBUTIONS. With respect to the "gap period," the
Employer   elects  the  following   manner  of   allocating   income  on  Excess
Contributions:

         [X]      (a)      No income will be allocated for the gap period.

         [ ]      (b)      Income  will  be  allocated for the gap period in the
                           manner provided in Section 4.11.

         [ ]      (c)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

4.20     DISTRIBUTION OF EXCESS AGGREGATE  CONTRIBUTIONS.  In lieu of the manner
         -----------------------------------------------
         of  determining  allocable  income  with  respect  to Excess  Aggregate
         Contributions,  as set forth in Section 4.20 of the Plan,  the Employer
         elects to use the following  reasonable method of computing income (THE
         SELECTED   METHOD  MUST  BE  USED   CONSISTENTLY   FOR  ALL  CORRECTIVE
         DISTRIBUTIONS UNDER THE PLAN AND MUST BE THE MANNER USED BY THE PLAN IN
         ALLOCATING INCOME TO PARTICIPANT'S ACCOUNTS):

         [X]      (a)      N/A.  The  Employer  elects  to  use  the  manner  of
                           determining  allocable income as set forth in Section
                           4.20 of the Plan.

         [ ]      (b)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

GAP PERIOD INCOME ON EXCESS  AGGREGATE  CONTRIBUTIONS.  With respect to the "gap
period," the Employer elects the following manner of allocating income on Excess
Contributions:

         [X]      (a)      No income will be allocated for the gap period.

         [ ]      (b)      Income  will  be  allocated for the gap period in the
                           manner provided in Section 4.11.

         [ ]      (c)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

4.28     ELIMINATION  OF  EXCESS  AMOUNT.  If the  provisions  of  Plan  Section
         -------------------------------
           4.28  apply,  the  Excess  Amount attributed to this Plan equals:

         [ ]      (a)      The product of (i) the total Excess  Amount allocated
                           as of such date (including any amount which  the Plan
                           Administrator  would  have  allocated  but  for   the
                           limitations of Code ss. 415),  multiplied by (ii) the
                           ratio   of  (1)   the   amount   allocated   to   the
                           Participant as of such date under this Plan,  divided
                           by (2) the  total  amount  allocated  as of such date
                           under  all  qualified  defined   contribution   plans
                           (determined without regard to the limitations of Code
                           Section 415).

         [X]      (b)      The total Excess Amount.

                                       22
<PAGE>

         [ ]      (c)      None of the Excess Amount.

4.30     DEFINED BENEFIT PLAN LIMITATION.
         -------------------------------

APPLICATION OF LIMITATION. The limitation under Section 4.30 of the Plan:

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

         [ ]      (b)      Applies  to  the  Plan.  To  the extent  necessary to
                           satisfy   the  limitation  under  Section  4.30,  the
                           Employer will reduce:

                  [ ]      (1)      The Participant's  projected  annual benefit
                                    under the defined  benefit plan, as provided
                                    pursuant  to   the   terms  of  the  defined
                                    benefit plan.

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

[NOTE: IF THE EMPLOYER  SELECTED OPTION (A) ABOVE, THE REMAINING OPTIONS IN THIS
SECTION 4.30 DO NOT APPLY TO THE EMPLOYER'S PLAN.  PLEASE SKIP TO ARTICLE V.]

COORDINATION  WITH TOP-HEAVY MINIMUM  ALLOCATION.  The Plan  Administrator  will
apply the top-heavy minimum  allocation  provisions of Section 18.04 of the Plan
with the following modifications:

         [ ]      (a)      No modifications.

         [ ]      (b)      For Non-Key Employees  participating   only  in  this
                           Plan, the top-heavy minimum allocation is the minimum
                           allocation  described  in Section  18.04 of  the Plan
                           determined by substituting ______% (NOT LESS THAN 4%)
                           for "3%," except:  (CHOOSE (1) OR (2))

                  [ ]      (1)      No exceptions.

                  [ ]      (2)      Plan  Years  in  which  the  Top-Heavy Ratio
                                    exceeds 90%.

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

                  [ ]      (1)      5%  of  Compensation  (AS  DETERMINED  UNDER
                                    SECTION  18.04 OF THE  PLAN) irrespective of
                                    the  contribution  rate of any Key Employee,
                                    except: (CHOOSE (i) OR (ii))

                           [ ]      (i)     No exceptions.

                           [ ]      (ii)    Substituting  "7-1/2%"  for  "5%" if
                                            the Top-Heavy  Ratio does not exceed
                                            90%.

                  [ ]      (2)      0%. [NOTE:  The Employer may not select this
                                    Option (2) unless  the  defined benefit plan
                                    satisfies  the  top-heavy  minimum   benefit
                                    requirements  of Code Section 416 for  these
                                    Non-Key Employees.]

ACTUARIAL  ASSUMPTIONS  FOR  TOP-HEAVY  CALCULATION.  To determine the Top-Heavy
Ratio, the Plan Administrator will use the following interest rate and mortality
assumptions to value accrued benefits under a defined benefit plan: ___________.

                                       23
<PAGE>

________________________________________________________________________________

If the  elections  under this  Section 4.30 are not  appropriate  to satisfy the
limitations  of Section 4.30 of the Plan,  or the top-heavy  requirements  under
Code ss. 416,  the  Employer  must  provide  the  appropriate  provisions  in an
addendum to this Adoption Agreement.

                                       24
<PAGE>

                                    ARTICLE V
                  TERMINATION OF SERVICE - PARTICIPANT VESTING

5.03     DISABILITY.  The 100% vesting rule under Section 5.03 of the Plan:
         ----------

         [ ]      (a)      Does not apply to disability.

         [X]      (b)      Applies to disability.

5.04     DEATH.  The 100% vesting rule under Section 5.04 of the Plan:
         -----

         [ ]      (a)      Does not apply to death.

         [X]      (b)      Applies to death.

5.05     VESTING SCHEDULE.  The Employer elects the following vesting schedule:
         ----------------

         [ ]      (a)      IMMEDIATE VESTING.  100% Nonforfeitable at all times.
                           [NOTE: This option must be elected if the eligibility
                           conditions  under Adoption  Agreement Section 2.01(c)
                           require 2  Years of Service or more than 12 months of
                           employment.]

         [X]      (b)      GRADUATED VESTING SCHEDULE.  *

                  [X]      (1)   0-2 years       0%   [ ]  (2)    0-1 year    0%
                                 3 years  20%              2 years           20%
                                 4 years  40%              3 years           40%
                                 5 years  60%              4 years           60%
                                 6 years  80%              5 years           80%
                                 7 years 100%              6 years          100%

         * DOES NOT APPLY TO  CONTRIBUTIONS  MADE  PURSUANT TO LAST  SENTENCE OF
         SECTION 4.04(D).

                  [ ]      (3)      1 year   20%  [ ] (4)  1 year            25%
                                    2 years  40%           2 years           50%
                                    3 years  60%           3 years           75%
                                    4 years  80%           4 years          100%
                                    5 years 100%

         [ ]      (c)      CLIFF VESTING SCHEDULE.

                  [ ]      (1)      0-4 years      0% [ ]   (2)   0-2 years   0%
                                    5 years 100%                  3 years 100%

         [ ]      (d)      OTHER.  (MUST BE NO LESS FAVORABLE THAN (b)(1) OR
                           (c)(1) ABOVE).

                           Years of Service          Percent Vested

                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________

                                       25
<PAGE>

FOR AMENDED AND RESTATED  PLANS.  If the vesting  schedule has been amended to a
less favorable schedule, enter the pre-amended schedule below:

         [ ]               Years of Service          Percent Vested

                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________

TOP-HEAVY VESTING.  If this Plan becomes a Top-Heavy Plan, the following vesting
schedule shall apply and shall be treated as a Plan  amendment  pursuant to this
Plan.

         [ ]      (a)      Not applicable  (THE VESTING SCHEDULE  SELECTED ABOVE
                           SATISFIES THE TOP-HEAVY  VESTING REQUIREMENTS).

         [X]      (b)      0-1 year           0%
                           2 years           20%
                           3 years           40%
                           4 years           60%
                           5 years           80%
                           6 years          100%

         [  ]     (c)      0-2 years          0%
                           3 years          100%

         [  ]     (d)      Years of Service          Percent Vested

                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________
                           ________________          ______________

NOTE:  The  top-heavy  provisions  of this  Section do not apply to the  Account
Balances of any  Participant  who does not perform an Hour of Service  after the
Plan first becomes Top-Heavy. Such Participant's Account Balance attributable to
Employer  contributions  (and  forfeitures,  if  applicable)  will be determined
without regard to this Section.

         [X]      (c)      The  Top-Heavy  Schedule  elected  under  Option  (b)
                           applies:

                  [ ]      (1)      For all Plan Years.

                  [X]      (2)      Only  in  a Plan Year  for which the Plan is
                                    top-heavy.

                  [ ]      (3)      In  the  Plan Year for which the Plan  first
                                    becomes top-heavy and then in all subsequent
                                    Plan  Years.  [NOTE:  The  Employer  may not
                                    elect  Option  (h)  or  (i)  unless  it  has
                                    completed a Non Top-Heavy Schedule.]

                                       26
<PAGE>

5.06  INCLUDED YEARS OF SERVICE - VESTING.
      -----------------------------------

YEARS OF SERVICE EXCLUDED.  The  Employer  specifically excludes  the  following
Years of Service:

         [X]      (a)      None  other  than as specified  in Section 5.06(a) of
                           the Plan.

         [ ]      (b)      Any Year of Service before the  Participant  attained
                           the age of _____ (MAY NOT EXCEED AGE 18).

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

         [ ]      (d)      In the case of a Participant who is 0% vested in  his
                           Account  Balance   at  the time he  has  a  Break  in
                           Service,  any  Year of  Service  before  a  Break  in
                           Service  if  the  number  of  consecutive  Breaks  in
                           Service  equals or  exceeds  the  greater of 5 or the
                           aggregate number of the Years of Service prior to the
                           Break.

         [ ]      (e)      Any  Year of  Service  after  the  Participant incurs
                           5  consecutive  Breaks in Service shall not  be taken
                           into  account for purposes of determining  the vested
                           percentage  of  his  Account  Balance  derived   from
                           Employer contributions  allocated prior to such Break
                           in Service.

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

5.09     ZERO PERCENT VESTED PARTICIPANT.  The deemed cash-out rule described in
         -------------------------------
          Section 5.09 of the Plan:

         [ ]      (a)      Does not apply.

         [X]      (b)      Applies to determine the timing of forfeitures for 0%
                           vested Participants.

                                       27
<PAGE>

                                   ARTICLE VI
                     TIME AND METHOD OF PAYMENTS OF BENEFITS

NOTE: The Plan allows the Trustee an administratively  reasonable period of time
to make the actual distribution relating to a particular distribution date.

6.02   SEPARATION FROM SERVICE FOR REASON OTHER THAN EARLY OR NORMAL RETIREMENT,
       -------------------------------------------------------------------------
       DISABILITY OR DEATH
       --------------------

VESTED ACCOUNT BALANCE OF $3,500 OR LESS.  Subject to the limitations of Section
6.02, the  distribution  date for  distribution  of a vested Account  Balance of
$3,500 or less upon a Participant's termination of employment is:

         [ ]      (a)      The Adjustment Date  coinciding  with  or immediately
                           following  the  Participant's termination of Service.

         [ ]      (b)      As soon  as  administratively possible  following the
                           Participant's  termination  of Service,  valued as of
                           the  preceding  Adjustment  Date  or Valuation  Date,
                           whichever  is  earlier.  [NOTE:  Participant  may  be
                           entitled to  subsequent  distribution  if entitled to
                           allocation for the year of termination of Service.]

         [ ]      (c)      The Adjustment Date coinciding with or following the
                           date the Participant ____ incurs Break(s) in Service.

         [ ]      (d)      The Valuation  Date  coinciding  with or  immediately
                           following  the  Participant's termination of Service.

         [ ]      (e)      No cash  outs  for vested  Account Balances of $3,500
                           or less.  Account  Balance  will  be  distributed  in
                           accordance  with   the   provisions  below  for   the
                           distribution  of vested  Account  Balances  exceeding
                           $3,500.

         [X]      (f)      (SPECIFY)   As  soon  as   administratively  possible
                                    --------------------------------------------
                           following the later of a Participant's termination of
                           -----------------------------------------------------
                           Service or request for a  distribution,  valued as of
                           -----------------------------------------------------
                           the current Valuation Date.
                           ---------------------------

VESTED ACCOUNT BALANCE EXCEEDING  $3,500.  Subject to the limitations of Section
6.02, the  distribution  date for  distribution  of a vested Account  Balance in
excess of $3,500 upon a Participant's termination of employment is:

         [ ]      (a)      The Adjustment Date coinciding  with or following the
                           Participant's termination of Service.

         [ ]      (b)      As soon as  administratively  possible  following the
                           Participant's  termination  of Service,  valued as of
                           the  preceding  Adjustment  Date  or Valuation  Date,
                           whichever  is  earlier.  [NOTE:  Participant  may  be
                           entitled to  subsequent  distribution  if entitled to
                           allocation for the year of termination of Service.]

         [ ]      (c)      The Adjustment Date coinciding with or following  the
                           date the Participant incurs ____ Break(s) in Service.

         [ ]      (d)      The Valuation Date  coinciding  with or following the
                           Participant's termination of service.

         [ ]      (e)      The Adjustment Date  coinciding with or following the
                           Participant's   satisfaction   of  Early   Retirement
                           requirements.

                                       28
<PAGE>

         [ ]      (f)      The Adjustment Date coinciding  with or following the
                           Participant's  attainment  of Normal Retirement Age.

         [X]       (g)     (SPECIFY)   As  soon  as   administratively  possible
                                    --------------------------------------------
                           following the Participant's request for distribution,
                           -----------------------------------------------------
                           valued as of the current Valuation Date.
                           ---------------------------------------

REVOCABILITY  OF ELECTION.  A Participant  with an Account  Balance in excess of
$3,500  who  elects to delay  distribution  until the  earliest  date on which a
distribution is required:

         [ ]     (a)       has made an irrevocable election until such date

         [X]     (b)       may  revoke  such  election  at any time and elect to
                           receive a distribution as of any subsequent Valuation
                           Date or Adjustment Date in accordance with procedures
                           adopted by the Plan Administrator.

6.03     EARLY OR NORMAL  RETIREMENT  AGE.  Upon a Participant's Early or Normal
         --------------------------------
         Retirement  Date,  his  Account Balance shall be distributed:

         [X]      (a)      As   of   the  Adjustment   Date  or  Valuation  Date
                           coinciding   with  or   immediately   following   the
                           Participant's  termination  of  Service on account of
                           Early or Normal Retirement.

         [ ]      (b)      As  soon   as  administratively   possible  following
                           the  Participant's  termination of Service on account
                           of  Early  or  Normal  Retirement,  valued  as of the
                           preceding   Adjustment   Date  or   Valuation   Date,
                           whichever  is  earlier.  [NOTE:  Participant  may  be
                           entitled to  subsequent  distribution  if entitled to
                           allocation  for the year of termination of Service on
                           account  of  Early  or  Normal  Retirement.  A waiver
                           should be obtained from the Participant  with respect
                           to potential adverse tax consequences.]

6.04     DISABILITY.  Upon disability, a Participant's Account Balance shall  be
         ----------
         distributed:

         [ ]      (a)      As  soon  as administratively  possible following the
                           Participant's  termination of  employment  on account
                           of  disability, valued as of the preceding Adjustment
                           Date or Valuation Date, whichever is earlier.

         [ ]      (b)      As   of   the  Adjustment  Date  or   Valuation  Date
                           coinciding   with   or   immediately  following   the
                           Participant's  termination  of Service on  account of
                           disability.

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

         [ ]      (d)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

6.05     DEATH.    Upon  death,  a  Participant's  Account  Balance  shall   be
         -----     distributed:

         [ ]      (a)      As  soon  as  administratively  possible  after   the
                           Participant's  death,  valued  as  of  the  preceding
                           Adjustment  Date  or  Valuation  Date,  whichever  is
                           earlier.

         [ ]      (b)      As   of  the   Adjustment  Date   or  Valuation  Date
                           coinciding   with   or   immediately  following   the
                           Participant's death.

                                       29
<PAGE>

         [X]      (c)      (SPECIFY)     As  soon as  administratively  possible
                                    --------------------------------------------
                           following the Beneficiary's request for distribution,
                           -----------------------------------------------------
                           valued as of the current Valuation Date.
                           -----------------------------------------------------

6.06     METHOD OF PAYMENT OF ACCOUNT BALANCE.
         ------------------------------------

         [X]      (a)      If  this  option  is  selected,  the   provisions  of
                           Plan   Sections   6.06(a)   and   6.07(a),   allowing
                           non-annuity    forms    of    distribution,    govern
                           distribution   of   benefits  to   Participants   and
                           beneficiaries.

         [ ]      (b)      If  this   option  is  selected,   the  provisions of
                           Plan  Sections  6.06(b) and 6.07(b) which provide for
                           payment  in  the  form  of an  annuity  shall  govern
                           distribution   of   benefits  to   Participants   and
                           beneficiaries.

ONE-YEAR MARRIAGE REQUIREMENT. (CHOOSE ONE ONLY OF (a) OR (b) BELOW, IF SURVIVOR
                                           ----
ANNUITIES ARE ELECTED UNDER SECTION 6.06(b) ABOVE.)

         [ ]      (a)      A   qualified  joint   and  survivor  annuity  or   a
                           qualified  preretirement survivor annuity,  whichever
                           is  applicable,  will be provided if the  Participant
                           was married on the date of death.

         [ ]      (b)      A  qualified  joint   and    survivor  annuity  or  a
                           qualified  preretirement  survivor  annuity  will  be
                           provided only if the Participant has been married for
                           the  one-year  period  ending on the  earlier  of the
                           Participant's annuity starting date or date of death.

MODIFICATIONS  TO  DISTRIBUTION.  The Plan Administrator will apply Section 6.06
of the Plan with the  following modifications:

         [ ]      (a)      No modifications.

         [X]      (b)      An installment distribution: (CHOOSE (1), OR AT LEAST
                           ONE OF (2), (3) (4) (5) AND (6))

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

                  [ ]      (2)      May not exceed the lesser of ______ years or
                                    the maximum period permitted  under  Section
                                    6.06.

                  [ ]      (3)      May be  made  as  follows  (IF  THE EMPLOYER
                                    SELECTS  MULTIPLE  OPTIONS,  THE PARTICIPANT
                                    MAY CHOOSE FROM THOSE SELECTED):

                           [ ]      (i)    Monthly
                           [ ]      (ii)   Quarterly
                           [ ]      (iii)  Semi-Annually
                           [ ]      (iv)   Annually
                           [ ]      (v)    As elected by the Participant.

                  [ ]      (4)      Periodic payment  must be in an amount equal
                                    to at least $____________.

                  [ ]      (5)      The Participant or Beneficiary  may elect to
                                    accelerate  the   payment of   all,  or  any
                                    portion of the unpaid nonforfeitable Account
                                    Balance   as   of  any  Adjustment  Date, or
                                    Valuation Date,  if earlier,  subject to the
                                    requirements  of  Sections  6.15 and 6.16 of
                                    the Plan.

                  [ ]      (6)      (SPECIFY)___________________________________
                                    ____________________________________________

                                       30
<PAGE>

                                    ____________________________________________

         [ ]      (c)      The   Plan   contains  Transfer  Accounts  which  are
                           the only  Accounts  subject to the  survivor  annuity
                           requirements,  as described  in Section  15.07 of the
                           Plan.

         [ ]      (d)      The  Plan   contains  Transfer  Accounts  which   are
                           the only Accounts not subject to the survivor annuity
                           requirements,  as described  in Section  15.07 of the
                           Plan.

NOTE: The Employer may specify additional annuity options in an addendum to this
Adoption Agreement, numbered 6.06.

6.07     DISTRIBUTIONS UPON DEATH - PRIOR TO ANNUITY STARTING DATE.
         ----------------------------------------------------------

         [ ]      If  distributions are  payable in the form of an annuity,  the
                  Qualified  Preretirement Survivor Annuity shall be actuarially
                  equivalent  to % (NOT  LESS  THAN  50%)  of the  Participant's
                  Nonforfeitable account balance as of the date of death.

6.14     ADVANCE PAYMENT OF BENEFITS.
         ---------------------------

         [X]      (a)      Are not permitted.

         [ ]      (b)      Shall be permitted.

                                       31
<PAGE>

                                   ARTICLE VII
                              WITHDRAWALS AND LOANS

7.01     EMPLOYEE  CONTRIBUTIONS  -  WITHDRAWAL/DISTRIBUTION.  Participants,  by
         ---------------------------------------------------
         making  a  prior  election  in  the  manner   prescribed  by  the  Plan
         Administrator,  may  withdraw  all or any portion of their  Participant
         Voluntary  Nondeductible  Contributions  and earnings thereon under the
         Plan as follows:

         [ ]      (a)      As of any Adjustment Date.

         [ ]      (b)      As of any Valuation Date.

         [X]      (c)      At any time during the Plan Year.

         [ ]      (d)      (SPECIFY)____________________________________________
                           _____________________________________________________

7.02     HARDSHIP DISTRIBUTIONS.
         ----------------------

         [ ]      (a)      The Plan does not permit hardship distributions.

         [X]      (b)      The Plan permits hardship distributions to be made:

                  [X]      (1)      By Participants who are actively employed by
                                    the Employer.

                  [ ]      (2)      By  terminated  Participants   not currently
                                    eligible to receive a distribution under the
                                    Plan.

         [X]      (c)      Hardship  distributions  under  the  Plan  shall   be
                           made  (OPTION  (2) MAY BE  SELECTED  IN  ADDITION  TO
                           OPTION  (1)  ONLY  IF THE  PLAN  ADMINISTRATOR  SHALL
                           SEPARATELY   DETERMINE  HARDSHIP   DISTRIBUTIONS  FOR
                           DISCRETIONARY    NONELECTIVE   CONTRIBUTIONS   AND/OR
                           REGULAR MATCHING CONTRIBUTIONS):

                  [ ]      (1)      Pursuant  to  the  safe harbor provisions of
                                    Section 7.03 of the Plan.

                  [X]               (2) As  provided  in the  addendum  to  this
                                    Adoption  Agreement,  numbered  Section 7.02
                                    (APPLIES SOLELY TO DISCRETIONARY NONELECTIVE
                                    CONTRIBUTIONS    AND/OR   REGULAR   MATCHING
                                    CONTRIBUTIONS).

ACCOUNTS  SUBJECT TO HARDSHIP  DISTRIBUTIONS.  Hardship  distributions  shall be
permitted from (OPTION (a) MAY BE SELECTED IN ADDITION TO OPTION (b) OR (c)):

         [ ]      (a)      The Participant's  Deferral  Contributions, excluding
                           Qualified   Matching   Contributions  and   Qualified
                           Nonelective Contributions.

         [ ]      (b)      The Participant's  Nonelective  Contributions,  which
                           include  Discretionary Nonelective Contributions  and
                           regular  Matching   Contributions,   provided    such
                           Participant   is  100%   vested  in  the   respective
                           accounts.

         [ ]      (c)      The vested portion  of the  Participant's Nonelective
                           Contributions,    which     include     Discretionary
                           Nonelective  Contributions  and/or  regular  Matching
                           Contributions.

         [X]      (d)      (SPECIFY) Deferral Contributions, plus earnings prior
                                    --------------------------------------------
                           to  12/31/88;  Matching  Contributions  Account as of
                           -----------------------------------------------------
                           12/31/88;   Voluntary   Nondeductible  Contributions,
                           -----------------------------------------------------
                           plus    earnings;    Rollover    Account;    Deferral
                           -----------------------------------------------------
                           Contributions since 1/01/89.
                           ----------------------------

DISTRIBUTION DATE.  Hardship Distributions shall be made as follows:

                                       32
<PAGE>

         [ ]      (a)      As    of   any   Adjustment  Date or  Valuation Date,
                           whichever is earlier.

         [X]      (b)      At any time during the Plan Year.

         [ ]      (c)      (SPECIFY)

7.04     IN-SERVICE  DISTRIBUTIONS.  Subject to the restrictions of Section 3.02
         -------------------------
         and Article  VI, the  following distribution options apply prior  to  a
         Participant's separation from Service.

NONELECTIVE  CONTRIBUTIONS.  In-service distributions of a Participant's regular
Matching  Contributions  Account  and  Discretionary  Nonelective  Contributions
Account shall be permitted upon:

NOTE:  If an  integrated  allocation  formula is selected in Adoption  Agreement
Section 4.06, distributions of discretionary  Nonelective  Contributions are not
allowed prior to Separation from Service.

         [ ]      (a)      N/A.  Distribution  not permitted prior to Separation
                           from Service.

         [X]      (b)      Attainment  of   Specified  Age.   Until  retirement,
                           the Participant has a continuing  election to receive
                           all or any  portion  of his  vested  Account  Balance
                           after the attainment of:

                  [ ]      (1)      Satisfaction    of     Early      Retirement
                                    requirements.

                  [X]      (2)      Normal Retirement Age.

                  [ ]      (3)      ________ years of age

                  [ ]      (4)      ________ years   of    age,  provided    the
                                    Participant  is  100% vested in  his Account
                                    Balance.

         [ ]      (c)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

ELECTIVE  CONTRIBUTIONS.  In-service  distributions of a Participant's  Deferral
Contributions  Account,  Qualified Matching  Contributions Account and Qualified
Nonelective Contributions Account shall be permitted upon:

         [ ]     (a)       N/A.  Distribution  shall  not  be permitted prior to
                           Separation from Service.

         [X]      (b)      Attainment of Specified  Age.  Until  retirement, the
                           Participant has a continuing  election to receive all
                           or any portion  of his  vested  Account Balance after
                           the attainment of:

                  [ ]      (1)      Satisfaction     of     Early     Retirement
                                    requirements  (PROVIDED EARLY RETIREMENT AGE
                                    IS NOT LESS THAN AGE 59-1/2).

                  [ ]      (2)      Normal   Retirement   Age  (PROVIDED  NORMAL
                                    RETIREMENT  AGE IS NOT LESS THAN AGE 59-1/2)

                  [X]      (3)      59 1/2 years  of  age (MUST  BE AT LEAST AGE
                                    -------
                                    59-1/2).

         [ ]      (c)      (SPECIFY)  In-service   distributions   of   Rollover
                                    --------------------------------------------
                           Account, Voluntary Nondeductible Account and Matching
                           -----------------------------------------------------
                           Contributions Account as of 12/31/88 are permitted.
                           -----------------------------------------------------

                                       33
<PAGE>
                           _____________________________________________________

DISTRIBUTION DATE.  In-service Distributions shall be made as follows:

         [ ]      (a)      As   of  any  Adjustment  Date  or  Valuation   Date,
                           whichever is earlier.

         [X]      (b)      At any time during the Plan Year.

         [ ]      (c)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

7.05     PARTICIPANT LOANS.  Loans from a Participant's Account Balance:
         -----------------

         [ ]      (a)      Are not permitted.

         [X]      (b)      Are permitted:

                  [X]      (1)      By Participants who are actively employed by
                                    the Employer.

                  [ ]      (2)      By    terminated    Participants    with   a
                                    nonforfeitable  account  balance  under  the
                                    Plan.

                  [ ]      (3)      By  beneficiaries  of  deceased Participants
                                    entitled to receive benefits under the Plan.

                  [ ]      (4)      By Parties-in-Interest.

LOANS AS INVESTMENTS.  For investment purposes, loans:

         [X]      (a)      Are   treated  as  directed  investments  (REGARDLESS
                           OF ANY ELECTION UNDER THIS ADOPTION AGREEMENT SECTION
                           9.09).

         [ ]      (b)      Are treated as general investments of the Trust.

7.07     COLLATERAL FOR LOANS.  Collateral  in  addition  to a percentage of the
         --------------------
         Participant's  Account Balance under the Plan:

         [X]      (a)      Shall not be accepted.

         [ ]      (b)      Is permitted:

                  [ ]      (1)      Only in the form of a deed of trust.

                  [ ]      (2)      In  the  form  of  a  deed  of trust, or any
                                    other  form  which  the  Plan  Administrator
                                    deems acceptable,  pursuant to a uniform and
                                    nondiscriminatory policy.

<PAGE>

                                       34
<PAGE>

                                  ARTICLE VIII
                       EMPLOYER ADMINISTRATIVE PROVISIONS

8.06     INVESTMENT  FUNDS.   Selected   investment  funds   under   which  each
         -----------------
         Participant  shall  direct  the Plan Administrator as to the investment
         of his Account Balance:

         [ ]      (a)      Shall not be offered under the Plan.

         [X]      (b)      Shall   be   provided   pursuant  to  a  uniform  and
                           nondiscriminatory  policy  established  by  the  Plan
                           Administrator.

                                       35
<PAGE>

                                   ARTICLE IX
                      PARTICIPANT ADMINISTRATIVE PROVISIONS

9.09     PARTICIPANT DIRECTION OF INVESTMENT.  The Employer:
         -----------------------------------

         [ ]      (a)      Does not permit Participants to direct the investment
                           of their  respective  Accounts under the Plan.

         [ ]      (b)      Permits each Participant to direct the  investment of
                           all  or  any  portion  of  t he vested portion of his
                           Account.

         [ ]      (c)      Permits each Participant  to direct the investment of
                           all  or  any  portion  of  his  vested and non-vested
                           Account.

         [X]      (d)      (SPECIFY)    Permits  each  Participant to direct the
                                    --------------------------------------------
                           investment of the vested  portion of his Account only
                           -----------------------------------------------------
                           with respect to loans in accordance with Section 7.06
                           -----------------------------------------------------
                           of the Plan.
                           ------------

                                       36
<PAGE>

                                    ARTICLE X
                              PLAN ADMINISTRATOR -
                  DUTIES WITH RESPECT TO PARTICIPANTS' ACCOUNTS

10.08    ALLOCATION  AND  DISTRIBUTION  OF NET INCOME GAIN OR LOSS. The Employer
         ---------------------------------------------------------
         may elect to  allocate  Trust  Fund  earnings  and  losses  on  amounts
         contributed  to  the  Plan  after  the  previous  Adjustment  Date,  or
         Valuation  Date, in a manner other than the manner  provided in Section
         10.08, which uses the "beginning balance," as follows:

         [X]      (a)      No modification to Section 10.08.

         [ ]      (b)      by using a weighted average

         [ ]      (c)      by treating  one-half  of all such  contributions  as
                           being  a  part of   the  Participant's  nonsegregated
                           Account Balance as of the previous Adjustment Date.

         [ ]      (d)      (SPECIFY)____________________________________________
                           _____________________________________________________
                           _____________________________________________________

                                       37

<PAGE>

                                   ARTICLE XI
                            TRUSTEE POWERS AND DUTIES

11.07    INVESTMENT POWERS. Pursuant to Section 11.07 of the Plan, the aggregate
         ------------------
         investments  in  qualifying  Employer  securities   and  in  qualifying
         Employer real property:

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

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

11.15    DISTRIBUTION OF CASH OR PROPERTY.  Distributions  of  a   Participant's
         --------------------------------
         Account Balance may be made in:

         [ ]      (a)      Cash  only (excluding insurance or annuity contracts,
                           if applicable).

         [X]      (b)      Cash or property  (right to receive  property applies
                           only to  distribution  of Company Stock).

                                       38
<PAGE>

                                  ARTICLE XIII
                        PROVISIONS RELATING TO INSURANCE

13.01    INVESTMENT IN INSURANCE.
         -----------------------

         [X]      (a)      Life Insurance may not be purchased.

         [ ]      (b)      Life insurance may be purchased.

VESTING OF INSURANCE CONTRACTS.  The Participant's Account Balance  attributable
to insurance contracts purchased on his behalf under Article XI is:

         [ ]      (a)      Subject  to  the vesting schedule election under this
                           Adoption Agreement Section 5.05.

         [ ]      (b)      100% Nonforfeitable at all times.

                                       39

<PAGE>

                                   ARTICLE XVI
                             PARTICIPATING EMPLOYERS

16.05    PARTICIPATING  EMPLOYERS.  If  two or  more  Affiliated  Employers  (as
         ------------------------
         defined  in Section  1.05 of the Plan)  contribute  to this  Plan,  all
         Employer  contributions  shall  be  allocated  in  accordance  with the
         elections in Adoption Agreement Article IV:

         [X]      (a)      Without  regard  to  which contributing Participating
                           Employer employs the Participant.

         [ ]      (b)      Only  to   the  Participants  directly   employed  by
                           the contributing   Participating   Employer.   If  a
                           Participant receives  Compensation from more than one
                           contributing Employer during the Limitation Year, the
                           Plan  Administrator  will  determine the  allocations
                           under  this  Adoption   Agreement  Section  16.01  by
                           prorating  among  the  participating   Employers  the
                           Participant's  Compensation  and, if applicable,  the
                           Integration   Level  under  Option  (f)  of  Adoption
                           Agreement Section 4.04.

FORFEITURES.  Any forfeiture by a Participant of a Participating Employer, which
is  subject  to  re-allocation  during  the  Plan  Year  shall be  allocated  in
accordance with the elections in Adoption Agreement Section 4.04, as follows:

         [X]      (a)      Without  regard to which  contributing  Participating
                           Employer employs such Participant.

         [ ]      (b)      Only   to   the   remaining    Participants  of  such
                           Participating Employer which employs the Participant.

                                       40
<PAGE>

                             EFFECTIVE DATE ADDENDUM
                              (RESTATED PLANS ONLY)

The Employer must complete  this  addendum only if the Restated  Effective  Date
specified in Adoption  Agreement  Section  1.17 is  different  than the Restated
Effective  Date for at least one of the provisions  listed in this addendum.  In
lieu of the Restated  Effective  Date in Adoption  Agreement  Section 1.17,  the
following special effective dates apply: (CHOOSE WHICHEVER ELECTIONS APPLY)

[ ]      (a)      COMPENSATION   DEFINITION.   The  Compensation  definition  of
                  Section 1.11 (other than the $200,000 limitation) is effective
                  for  Plan  Years  beginning  after  , 19 .  [NOTE:  May not be
                  effective  later  than the first  day of the  first  Plan Year
                  beginning after the Employer executes this Adoption  Agreement
                  to  restate  the  Plan  for the Tax  Reform  Act of  1986,  if
                  applicable.]

[ ]      (b)      ELIGIBILITY CONDITIONS.  The eligibility conditions  specified
                  in  Adoption  Agreement  Section  2.01  are effective for Plan
                  Years  beginning  after  _________________, 19___.  The  prior
                  eligibility requirements were _______________________________.

[ ]      (c)      SUSPENSION  OF  YEARS OF SERVICE.  The  suspension of Years of
                  Service rule elected under  Adoption Agreement Section 2.03 is
                  effective for Plan Years beginning after ____________________,
                  19___.

[ ]      (d)      CONTRIBUTION/ALLOCATION   FORMULA.  The  contribution  formula
                  elected under Adoption  Agreement (SELECT ONE OR MORE) Section
                  4.03___   Section 4.04___  Section 4.05  and  the  method   of
                  allocation  elected under  Adoption  Agreement  (SELECT ONE OR
                  MORE)  Section 4.03 Section 4.04 Section 4.05 is effective for
                  Plan Years beginning after ________________, 19___.  The prior
                  method  of allocation was __________________________________ .

[ ]      (e)      ACCRUAL REQUIREMENTS. The accrual requirements of Section 4.06
                  are effective for Plan Years beginning after ________________,
                  19___.

[ ]      (f)      EMPLOYMENT CONDITION.  The employment condition of (SELECT ONE
                  OR MORE) ____ Section 4.04 ____ Section 4.05 ____ Section 4.06
                  is effective for Plan Years beginning after ___________, 19__.

[ ]      (g)      ELIMINATION OF NET PROFITS.  The requirement for the  Employer
                  not  to  have  net  profits  to contribute  to  this  Plan  is
                  effective for Plan Years beginning after ____________,  19___.
                  [NOTE: The date specified may not be earlier than December 31,
                  1985.]

[ ]      (h)      VESTING SCHEDULE.  The vesting schedule elected under Adoption
                  Agreement  Section  5.05 is effective for Plan Years beginning
                  after _________________, 19___.

[ ]      (i)      (SPECIFY)_____________________________________________________
                  ______________________________________________________________
                  ______________________________________________________________

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

                                       41

<PAGE>

                                 EXECUTION PAGE

          The Employer  hereby executes this Adoption  Agreement,  and agrees to
the  provisions  of the Plan and Trust.  The Trustee  accepts its  position  and
agrees to all the  obligations,  responsibilities  and duties  imposed  upon the
Trustee under the Plan and Trust.

         IN WITNESS  WHEREOF,  the parties hereby execute this Agreement this 30
day of December, 1994.

                                 CORPORATE EMPLOYER:
                                 ------------------
[Corporate Seal]

                                 KRISPY KREME DOUGHNUT CORPORATION
                                 -----------------------------------------------
ATTEST:                                     (Name of Employer)

/s/ JOHN BARBER                  By: /s/ BARBARA L. THORNTON
---------------                      -------------------------------------------
    Secretary                        Vice President, Human Resources

                                 CORPORATE TRUSTEE:
                                 -----------------

[Corporate Seal]
                                 SOUTHERN NATIONAL BANK
                                 -----------------------------------------------
ATTEST:                                   (Name of Trustee)

/s/ JULIE J. CARTER              By /s/
-------------------                 --------------------------------------------
Assistant Secretary                       Vice President & Trust Officer

USE OF ADOPTION  AGREEMENT.  Failure to properly  complete the elections in this
Adoption Agreement may result in disqualification of the Employer's Plan.

RELIANCE ON ADVISORY LETTER.  Petree  Stockton,  L.L.P. has obtained an Advisory
Letter from the Internal Revenue Service on a Volume  Submitter  Specimen 401(k)
Plan, and execution of this Adoption  Agreement  entitles the Employer to obtain
its  determination  letter  on such a basis.  You may not  rely on the  Advisory
Letter for qualification.

                                       42

<PAGE>

                             PARTICIPATION ADDENDUM
                    FOR PARTICIPATION BY AFFILIATED EMPLOYERS

The undersigned  Employer, by executing this Participation  Addendum,  elects to
become a  Participating  Employer in the Plan as if the  Participating  Employer
were a signatory to that Agreement.  The  Participating  Employer  accepts,  and
agrees to be bound by, all of the elections  granted under the provisions of the
Volume  Submitter  401(k) Plan as adopted by KRISPY KREME DOUGHNUT  CORPORATION,
the Signatory Employer to the Signature Page of the Adoption Agreement.

         1.       The Effective Date of the undersigned Employer's participation
                  in the  designated  Plan is:  October 1, 1994

         2.       The undersigned Employer's adoption of this Plan constitutes:

                  [ ]      (a)      The  adoption  of   a   new   plan   by  the
                                    Participating Employer.

                  [X]      (b)      The  adoption    of    an    amendment   and
                                    restatement of a plan  currently  maintained
                                    by the Employer,  identified as Krispy Kreme
                                    Doughnut Corporation Retirement Savings Plan
                                    and  having an  original  effective  date of
                                    January 1, 1984 .

Dated this 30 day of December, 1994.

                                             PARTICIPATING EMPLOYER:
                                             ----------------------

[Corporate Seal]
                                             KRISPY KREME DOUGHNUTS COMPANY
                                             -----------------------------------
ATTEST:                                              (Name of Employer)

/s/ MAURA A. HALKIATIS                       By /s/ RANDY CASSTEVENS
----------------------                          --------------------
      Secretary                                       President

Participating Employer's EIN: 56-1889750

ACCEPTANCE  BY THE  SIGNATORY  EMPLOYER TO THE  SIGNATURE  PAGE OF THE  ADOPTION
AGREEMENT.

                                             SIGNATORY EMPLOYER:
                                             ------------------

[Corporate Seal]
                                             KRISPY KREME DOUGHNUT CORPORATION
                                             -----------------------------------
ATTEST:                                                 (Name of Employer)

/s/ JOHN BARBER                              By: /s/ BARBARA L. THORNTON
---------------------------                      -----------------------
    Secretary                                         President

                                       43

<PAGE>

            KRISPY KREME DOUGHNUT CORPORATION RETIREMENT SAVINGS PLAN

                 ADDENDUM TO SECTION 7.02 OF ADOPTION AGREEMENT

A hardship distribution may be made for one of the following reasons:

          1.   Medical expenses incurred by the employee,  his or her spouse, or
               dependents.

          2.   To purchase a principal  residence  for the  employee  (excluding
               mortgage payments).

          3.   To prevent  eviction from, or  foreclosure  on the mortgage,  the
               employee's principal residence.

          4.   Death of a participant, his or her spouse, or dependents.

          5.   Divorce of a participant.

          6.   Illness, injury,  disability, or layoff of a participant,  or his
               or her spouse.

          7.   Post-secondary  educational  expenses  incurred  on behalf of the
               employee, his or her spouse, or dependents.

                                       44<PAGE>

                                                                     EXHIBIT 4.1

                               ANGEION CORPORATION
                         1994 NON-EMPLOYEE DIRECTOR PLAN

1.       PURPOSE OF PLAN.

         The purpose of the Angeion Corporation 1994 Non-Employee Director Plan
(the "Plan") is to advance the interests of Angeion Corporation (the "Company")
and its shareholders by enabling the Company to attract and retain the services
of experienced and knowledgeable non-employee directors and to increase the
proprietary interests of such non-employee directors in the Company's long-term
success and progress and their identification with the interests of the
Company's shareholders.

2.       DEFINITIONS.

         The following terms will have the meanings set forth below, unless the
context clearly otherwise requires:

         2.1 "Adjustment Ratio" means a fraction, (i) the numerator of which is
the number of days between the date of grant of the Pro-Rata Option and Pro-Rata
Stock Award and the beginning of the fiscal year of the Company that first
follows such date of grant, and (ii) the denominator of which is 365.

         2.2 "Board" means the Board of Directors of the Company.

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

         2.4 "Committee" means the group of individuals administering the Plan,
as provided in Section 3 of the Plan.

         2.5 "Common Stock" means the common stock of the Company, par value
$0.01 per share, or the number and kind of shares of stock or other securities
into which such Common Stock may be changed in accordance with Section 4.3 of
the Plan.

         2.6 "Disability" means the disability of an Eligible Director such as
would entitle the Eligible Director to receive disability income benefits
pursuant to the long-term disability plan of the Company then covering the
Eligible Director or, if no such plan exists or is applicable to the Eligible
Director, the permanent and total disability of the Eligible Director within the
meaning of Section 22(e)(3) of the Code.

<PAGE>

         2.7 "Eligible Directors" means all directors of the Company who are not
employees of the Company or any subsidiary of the Company.

         2.8 "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

         2.9 "Fair Market Value" means, with respect to the Common Stock, as of
any date, the average of the reported high and low sales prices of the Common
Stock as reported by the Nasdaq National Market. for the twenty trading days
prior to the date in question.

         2.10 "Full Option" means a right to purchase 3,000 shares of Common
Stock (subject to adjustment as provided in Section 4.3 of the Plan) that is
granted to an Eligible Director pursuant to Section 5 of the Plan, which option
will not qualify as an "incentive stock option" within the meaning of Section
422 of the Code.

         2.11 "Full Stock Award" means shares of Common Stock granted to an
Eligible Director pursuant to Section 5 of the Plan in an amount (rounded to the
nearest whole share) equal to $24,000 divided by the Fair Market Value of one
share of Common Stock on the date of grant.

         2.12 "Incentive Awards" means Options and Stock Awards.

         2.13 "Options" means Full Options and Pro-Rata Options.

         2.14 "Pro-Rata Option" means a right to purchase the number of shares
of Common Stock (rounded to the nearest whole share) determined by multiplying
the number of shares subject to a Full Option by the Adjustment Ratio, which
option will not qualify as an "incentive stock option" within the meaning of
Section 422 of the Code.

         2.15 "Pro-Rata Stock Award" means shares of Common Stock granted to an
Eligible Director in an amount (rounded to the nearest whole share) equal to the
number of shares subject to a Full Stock Award multiplied by the Adjustment
Ratio.

         2.16 "Retirement" means termination of employment or service pursuant
to and in accordance with the regular (or, if approved by the Board for purposes
of the Plan, early) retirement/pension plan or practice of the Company or any
subsidiary of the Company then covering the Participant.

         2.17 "Securities Act" means the Securities Act of 1933, as amended.

         2.18 "Stock Awards" means Full Stock Awards and Pro-Rata Stock Awards.

3.       PLAN ADMINISTRATION.

         The Plan will be administered by a committee (the "Committee")
consisting solely of two or more members of the Board. All questions of
interpretation of the Plan will be determined by

                                        2

<PAGE>

the Committee, each determination, interpretation or other action made or taken
by the Committee pursuant to the provisions of the Plan will be conclusive and
binding for all purposes and on all persons, and no member of the Committee will
be liable for any action or determination made in good faith with respect to the
Plan or any Incentive Award granted under the Plan. The Committee, however, will
have no power to determine the eligibility for participation in the Plan, the
number of shares of Common Stock to be subject to Incentive Awards, or the
timing, pricing or other terms and conditions of Incentive Awards.

4.       SHARES AVAILABLE FOR ISSUANCE.

         4.1 MAXIMUM NUMBER OF SHARES AVAILABLE. Subject to adjustment as
provided in Section 4.3 of the Plan, the maximum number of shares of Common
Stock that will be available for issuance under the Plan will be 250,000 shares.
The shares available for issuance under the Plan shall be authorized but
unissued shares.

         4.2 ACCOUNTING FOR INCENTIVE AWARDS. Shares of Common Stock that are
issued under the Plan or that are subject to outstanding Incentive Awards will
be applied to reduce the maximum number of shares of Common Stock remaining
available for issuance under the Plan. Any shares of Common Stock that are
subject to an Option that lapses, expires, or for any reason is terminated
unexercised will automatically again become available for issuance under the
Plan.

         4.3 ADJUSTMENTS TO SHARES AND INCENTIVE AWARDS. In the event of any
reorganization, merger, consolidation, recapitalization, liquidation,
reclassification, stock dividend, stock split, combination of shares, rights
offering, divestiture or extraordinary dividend (including a spin-off) or any
other change in the corporate structure or shares of the Company, the Committee
(or, if the Company is not the surviving corporation in any such transaction,
the board of directors of the surviving corporation) will make appropriate
adjustment (which determination will be conclusive) as to the number and kind of
securities available for issuance under the Plan and, in order to prevent
dilution or enlargement of the rights of Eligible Directors, the number, kind
and, where applicable, exercise price of securities subject to outstanding
Incentive Awards.

5.       INCENTIVE AWARDS.

         5.1 GRANT. Each Eligible Director who is elected or re-elected at an
annual meeting of shareholders of the Company, and each Eligible Director, if
any, whose class is not up for re-election at such annual meeting of
shareholders and who therefore continues to serve as an Eligible Director
following such annual meeting of shareholders, will be granted, effective as of
the date of each such annual meeting of shareholders of the Company, a Full
Option and a Full Stock Award; provided, however, in the event that by May 31 of
any year, the annual shareholders meeting has not been scheduled, then the Full
Option and the Full Stock Award shall be granted to the directors as of May 31
of such year. In the event that Eligible Directors are elected or appointed to
the Board of Directors to fill new directorships or to fill vacancies during the
period following an annual meeting of shareholders but prior to the beginning of
the

                                        3

<PAGE>

next succeeding fiscal year, such Eligible Directors will be granted, effective
as of the date of such election or appointment, a Pro-Rata Option and a Pro-Rata
Stock Award.

         5.2 EXERCISE PRICE OF OPTIONS. The per share price to be paid by an
Eligible Director upon exercise of an Option will be 100% of the Fair Market
Value of one share of Common Stock on the date of grant. The total purchase
price of the shares to be purchased upon exercise of an Option will be paid
entirely in cash (including check, bank draft or money order).

         5.3 EXERCISABILITY AND DURATION OF OPTIONS. Each Option will become
exercisable in full six months following its date of grant and will expire and
will no longer be exercisable 10 years from its date of grant.

         5.4 MANNER OF EXERCISE OF OPTIONS. An Option may be exercised by an
Eligible Director in whole or in part from time to time, subject to the
conditions contained in the Plan and in the agreement evidencing such Option, by
delivery in person, by facsimile or electronic transmission or through the mail
of written notice of exercise to the Company at its principal executive office
in Plymouth, Minnesota and by paying in full the total exercise price for the
shares of Common Stock to be purchased in accordance with Section 5.2 of the
Plan.

6.       EFFECT OF TERMINATION OF SERVICE AS DIRECTOR.

         6.1 TERMINATION DUE TO DEATH, DISABILITY OR RETIREMENT. In the event an
Eligible Director's service as a director of the Company is terminated by reason
of death, Disability or Retirement, all outstanding Options then held by the
Eligible Director will become immediately exercisable in full and will remain
exercisable for a period of one year after such death, Disability or Retirement
(but in no event after the expiration date of any such Options).

         6.2 TERMINATION FOR REASONS OTHER THAN DEATH, DISABILITY OR RETIREMENT.
In the event an Eligible Director's service as a director of the Company is
terminated for any reason other than death, Disability or Retirement, all
outstanding Options then held by the Eligible Director will remain exercisable
to the extent exercisable as of such termination for a period of three months
after such termination (but in no event after the expiration date of any such
Options).

         6.3 DATE OF TERMINATION. An Eligible Director's service as a director
of the Company will, for purposes of the Plan, be deemed to have terminated on
the date recorded on the personnel or other records of the Company, as
determined by the Committee based upon such records.

7.       RIGHTS OF ELIGIBLE DIRECTORS; TRANSFERABILITY OF INTERESTS.

         7.1 SERVICE AS A DIRECTOR. Nothing in the Plan will interfere with or
limit in any way the right of the Company to terminate any Eligible Director at
any time, and neither the Plan, nor the granting of an Incentive Award nor any
other action taken pursuant to the Plan, will constitute or

                                        4

<PAGE>

be evidence of any agreement or understanding, express or implied, that the
Company will retain an Eligible Director for any period of time or at any
particular rate of compensation.

         7.2 RIGHTS AS A SHAREHOLDER. An Eligible Director will have no rights
as a shareholder unless and until a Stock Award is issued or an Option is
exercised and the Eligible Director becomes the holder of record of such shares.
Except as otherwise provided in the Plan, no adjustment will be made for
dividends or distributions with respect to Incentive Awards as to which there is
a record date preceding the date the Eligible Director becomes the holder of
record of such shares.

         7.3 RESTRICTIONS ON TRANSFER OF INTERESTS. Except pursuant to
testamentary will or the laws of descent and distribution or as otherwise
expressly permitted by the Plan, no right or interest of any Eligible Director
in an Option prior to the exercise of such Option will be assignable or
transferable, or subjected to any lien, during the lifetime of the Eligible
Director, either voluntarily or involuntarily, directly or indirectly, by
operation of law or otherwise. An Eligible Director will, however, be entitled
to designate a beneficiary to receive an Option upon such Eligible Director's
death, and in the event of an Eligible Director's death, payment of any amounts
due under the Plan will be made to, and exercise of any Options (to the extent
permitted pursuant to Section 6 of the Plan) may be made by, the Eligible
Director's legal representatives, heirs and legatees.

         7.4 NON-EXCLUSIVITY OF THE PLAN. Nothing contained in the Plan is
intended to modify or rescind any previously approved compensation plans or
programs of the Company or create any limitations on the power or authority of
the Board to adopt such additional or other compensation arrangements as the
Board may deem necessary or desirable.

8.       SECURITIES LAW AND OTHER RESTRICTIONS.

         Notwithstanding any other provision of the Plan or any agreements
entered into pursuant to the Plan, the Company will not be required to issue any
shares of Common Stock under this Plan, and an Eligible Director may not sell,
assign, transfer or otherwise dispose of shares of Common Stock issued in
connection with an Incentive Award granted under the Plan, unless (a) there is
in effect with respect to such shares a registration statement under the
Securities Act and any applicable state securities laws or an exemption from
such registration under the Securities Act and applicable state securities laws,
and (b) there has been obtained any other consent, approval or permit from any
other regulatory body which the Committee, in its sole discretion, deems
necessary or advisable. The Company may condition such issuance, sale or
transfer upon the receipt of any representations or agreements from the parties
involved, and the placement of any legends on certificates representing shares
of Common Stock, as may be deemed necessary or advisable by the Company in order
to comply with such securities law or other restrictions.

9.       PLAN AMENDMENT, MODIFICATION AND TERMINATION.

                                        5

<PAGE>

         The Board may suspend or terminate the Plan or any portion thereof at
any time, and may amend the Plan from time to time in such respects as the Board
may deem advisable in order that Incentive Awards granted under the Plan will
conform to any change in applicable laws or regulations or in any other respect
the Board may deem to be in the best interests of the Company; provided,
however, that (a) no amendments to the Plan will be effective without approval
of the shareholders of the Company if shareholder approval of the amendment is
then required pursuant to Rule 16b-3 under the Exchange Act or the rules of the
National Association of Securities Dealers, Inc., and (b) to the extent
prohibited by Rule 16b-3 of the Exchange Act, the Plan may not be amended more
than once every six months. No termination, suspension or amendment of the Plan
may adversely affect any outstanding Incentive Award without the consent of the
affected Eligible Director; provided, however, that this sentence will not
impair the right of the Committee to take whatever action it deems appropriate
under Section 4.3 of the Plan.

10.      EFFECTIVE DATE AND DURATION OF THE PLAN.

         The Plan, as amended, is effective as of October 1, 1999, the date it
was adopted by the Board. The Plan will terminate at midnight on October 7,
2004, but may be terminated prior thereto by Board action. No Incentive Awards
may be granted after such termination, but Options outstanding upon termination
of the Plan may continue to be exercised in accordance with their terms.

11.      MISCELLANEOUS.

         11.1 GOVERNING LAW. The validity, construction, interpretation,
administration and effect of the Plan and any rules, regulations and actions
relating to the Plan will be governed by and construed exclusively in accordance
with the laws of the State of Minnesota, notwithstanding any conflicts of law
principles.

         11.2 SUCCESSORS AND ASSIGNS. The Plan will be binding upon and inure to
the benefit of the successors and permitted assigns of the Company and the
Eligible Directors.

                                        6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}]]