Document:

February 1, 2001

Dear Andrew E. Graves:

Pursuant to authorization  of its Board of Directors (the "Board"),  this letter
will set forth certain of the terms and conditions of your continuing employment
by Federal Signal Corporation ("Federal") as an executive officer of Federal. By
your acceptance  hereof you agree that your  employment  shall continue upon the
terms and conditions hereinafter set forth.

1.    Term, Compensation and Services

      1.1 The term of your employment  pursuant to this agreement shall continue
from the date hereof until the December 31 following your 65th birthday, subject
to earlier termination of employment by Federal or you as hereinafter provided.

      1.2 During the term of your  employment,  you will be  compensated  at the
annual  rate as may  from  time to time be  fixed by  resolution  of the  Board,
provided,  however,  that your annual rate of compensation  shall in no event be
less than  $325,000  and provided  further that such minimum  annual rate may be
increased  by  resolution  of the Board  which  resolution  shall be  binding on
Federal for the remaining term of this agreement. Your annual compensation shall
be  payable  monthly  and you  shall be  reimbursed  for  business,  travel  and
entertainment  expenses in accordance with Federal's prevailing policies. In its
discretion, the Board may pay you additional salary or bonuses.

      1.3 You  agree to  devote  your  full  business  time and  efforts  to the
rendition  of  such  services  to  Federal  as may be  designated  by the  chief
executive officer or the Board,  subject,  however,  to customary  vacations and
provided that you shall be excused from performing services during any period of
absence or inability relating to illness or physical or mental  disability.  You
will at all times be  subject  to the  direction  and  supervision  of the chief
executive  officer and the Board. You may devote a reasonable  amount of time to
civic and community  affairs but shall not perform  services  during the term of
your employment for any other business  organization in any capacity without the
prior consent of the Board.

2.    Termination

      2.1 Your employment shall be subject to termination by Federal at any time
for cause if you shall  fail in any  material  respect to  perform  your  duties
hereunder  (other than by reason of illness or  physical or mental  disability),
shall breach any provision  hereof in any material  respect,  or shall engage in
any dishonest or fraudulent acts or conduct in the performance of your duties to
Federal. Termination by Federal pursuant to the preceding sentence shall require
that you receive thirty days prior written  notice of the basis for  termination
and that you fail to cure or correct the basis for the  termination  during such
thirty day period. In addition,  you may, at your option,  voluntarily terminate
your  employment  hereunder  by giving  Federal at least 90 days  prior  written
notice thereof.  Upon any termination  under this paragraph 2.1, all obligations
of Federal  hereunder  shall  immediately  terminate and,  without  limiting the
foregoing,  Federal  shall  have no  obligation  under  this  agreement  to make
payments  to you in  respect  of any  period  subsequent  to  such  termination.
However,   termination   under  this  paragraph   shall  not  affect   Federal's
obligations,  if any, to make  payments as  required  by other  compensation  or
employee benefit plans maintained by Federal.

      2.2 Your employment shall be subject to termination by Federal at any time
without cause by notifying you in writing of such  termination not less than ten
days prior to the effective  date thereof.  Upon any  termination  of employment
pursuant to this paragraph 2.2,  Federal shall be obligated to pay to you, or to
your designated  beneficiary if you shall not be living,  an amount equal to one
year's salary at the minimum annual rate then in effect,  or, if less, an amount
equal to the period from  termination  until the December 31 following your 65th
birthday.  The total amount owing to you or your  designated  beneficiary  under
this  paragraph  2.2  shall  be  paid  in  twelve  equal  monthly  installments.
Installment  payments  shall  commence  as soon  as  practicable  following  the
effective date of termination and shall not bear interest.  For purposes of this
paragraph 2.2 any material breach by Federal of its obligations  hereunder which
are not cured after thirty days written  notice given to Federal by you, may, at
your  option,  be treated by you as a  termination  of your  employment  without
cause.  Amounts  payable to you under this paragraph 2.2 shall be in addition to
other payments, if any, required by other compensation or employee benefit plans
maintained by Federal.

      2.3 (a) In the event that a "change of control" (as  hereinafter  defined)
of Federal  occurs  during the term of this  agreement,  you may at your  option
terminate  this  agreement any time during the one year following such change of
control by giving thirty days prior written  notice of  termination  to Federal.
Upon  such  termination,  Federal  shall  be  obligated  to pay  to you or  your
designated  beneficiary  (if you are  deceased),  immediately in one lump sum an
amount  equal to your  average  annualized  W-2  compensation  for the five most
recent  taxable  years  ending  before  the date on which the  change of control
occurs,  multiplied  by  three  and  then  reduced  by  $1.00.  In the  event of
termination  by you under this  paragraph  2.3,  you shall also be  entitled  to
receive all payments and compensation  under any other  compensation or employee
benefit  plans of Federal.  Furthermore,  to the extent you are not fully vested
under  any such  plan,  amounts  payable  under  any such  other  plan  shall be
supplemented  by Federal to the extent  necessary  so that the  amounts  payable
under such plan are at least equal to the amount you would have received had you
remained  employed  by Federal at the minimum  salary then in effect  until your
65th birthday.

           (b) A  "change  of  control"  shall  mean  (i) the  filing  with  the
Securities  and  Exchange  Commission  by any  person  or  "group"  of a  report
disclosing  beneficial  ownership  by such  person  or group of  shares of stock
entitled  to cast more than 40% of the votes in the  election of  directors,  or
(ii) the  election  of any person or persons as a  director  or  directors  at a
meeting  of  Federal's  stockholders  at which  proxies  solicited  on behalf of
Federal's  Board or  management  were not voted in favor of the election of such
person or  persons,  or (iii) the  occurrence  of any other  event  which  would
require  an  affirmative  response  to Item  6(e) of  Schedule  14A  (the  Proxy
Statement Disclosure Rules) as now in effect, regarding a change of control. The
date of a change of control  specified in clause (iii) shall be the date Federal
is first  advised by its counsel or counsel  specified in the next sentence that
an event of the type  specified in clause (iii) has occurred.  Any dispute as to
whether  an event  specified  in  clause  (iii) of the  preceding  sentence  has
occurred shall be  conclusively  resolved by an opinion of  independent  counsel
selected by the  Chairman of the  Securities  Law  Committee  of the Chicago Bar
Association, which may be requested by you or Federal at any time.

      2.4 In the  event  of  your  death  prior  to the  effective  date  of any
termination of your  employment  pursuant to paragraphs  2.1, 2.2 or 2.3 hereof,
Federal shall be obligated to pay to your  designated  beneficiary,  in not more
than  eighteen  equal  monthly  installments,  an  amount  equal  to one  year's
compensation  at the  minimum  annual  rate in effect  hereunder  at the date of
death.  Installment payments shall commence as soon as practicable following the
date of death and shall not bear interest.

      2.5 In no  event  shall  any  termination  of your  employment  under  any
provision  of  this  agreement  relieve  you  from  complying  fully  with  your
agreements set forth in paragraphs 3.1 and 3.2 hereof.

3.    Non-competition and Trade Secrets Agreements

      3.1  During  the term of your  employment  and for a period of  thirty-six
months  following  termination  of  employment  for  any  reason,  or  following
expiration  of the  term  hereof,  you  agree  that you  will  not  directly  or
indirectly act as an officer,  director,  consultant,  employee or principal for
any entity which is competitive  with Federal.  An entity is deemed  competitive
with Federal if it is engaged in a line of business in which Federal has derived
at least 10% of its  revenues  during  the two  years  prior to  termination  of
employment in the same geographic area in which Federal conducts such business.

      3.2 You further  covenant that at no time  following  such  termination of
employment will you, without prior written consent of Federal, divulge to anyone
any trade secret or confidential  corporation  information concerning Federal or
otherwise use any such information to the detriment of Federal.

      3.3 Paragraph 3.1 shall not prohibit you from  investing in any securities
of any corporation which is competitive with Federal whose securities, or any of
them,  are  listed  on  a  national   securities   exchange  or  traded  in  the
over-the-counter  market if you shall own less than 3% of the outstanding voting
stock of such corporation.

4.    General Provisions

      4.1 In the event you shall inquire, by written notice to Federal,  whether
any proposed action on your part would be considered by Federal to be prohibited
by or in breach of the terms hereof,  Federal shall have  forty-five  days after
the giving of such  notice,  to express  in  writing  to you its  position  with
respect  thereto,  and in the event such writing shall not be given to you, such
proposed  action  (as set  forth  in your  notice  to  Federal)  shall  not be a
violation of or in breach of the terms hereof.

      4.2 The term "designated beneficiary" as used in this agreement shall mean
such person or persons as you  designate  to receive  payments  hereunder in the
latest written notice  received by the Company from you which specifies a person
or persons as a  designated  beneficiary  hereunder  and in the  absence of such
written  notice shall mean your  estate.  Federal may  conclusively  rely on any
written notice specifying or changing a designated beneficiary which it believes
to be authentic.

      4.3  Except as context  otherwise  requires,  reference  herein to Federal
shall  include  its  subsidiaries  and  references  to the Board  shall  include
committees  thereof to the extent that any applicable powers of the Board are or
shall be delegated to any such committees.

      4.4 The terms and conditions  hereof shall constitute the entire agreement
between the parties and shall supersede all prior written or oral understandings
between you and Federal  concerning the subject matter hereof. The agreement may
not be amended or altered  except in writing  signed by the parties and approved
by a  resolution  of the Board.  Neither  party may assign its rights  hereunder
without the written consent of the other.

      4.5 All  notices  required  or  permitted  to be  given  pursuant  to this
agreement shall be given in writing, if to you, then at the address set forth at
the  beginning  hereof or at such other address as you may specify in writing to
Federal;  and,  if to Federal,  then to the  Secretary  of Federal at  Federal's
corporate office.  All notices shall be deemed to have been given when delivered
in person,  or if mailed,  48 hours after  depositing  same in the United States
mail, properly addressed, and postage prepaid.

      4.6 In the event that you or your designated beneficiary shall be required
to commence  litigation to enforce you rights under this  agreement or otherwise
your rights under this agreement shall ever be involved in any  litigation,  the
Company shall indemnify you or your designated beneficiary against all costs and
expenses  (including  attorneys fees)  reasonably  incurred by you in connection
with such litigation  except to the extent that it is determined by the court in
such  litigation that you are not entitled to such  indemnification  because you
breached your obligations hereunder.  The Company shall, prior to the outcome or
settlement  of  such  litigation,  advance  funds  to  you  or  your  designated
beneficiary  as you or your  designated  beneficiary  request for the purpose of
paying your reasonable legal fees and expenses pending the outcome or settlement
of such litigation  provided that, as a condition of such advances,  you or your
designated  beneficiary execute a written undertaking  agreeing to return to the
Company all amounts so advanced  together with 12% per annum interest thereon if
it is determined by the court that you are not entitled to indemnification under
this paragraph 4.6.

                                    Very truly yours,

                                    FEDERAL SIGNAL CORPORATION

                                    By:    /s/   Paul W. Jones

                                          Chairman of the Compensation
                                          and Benefits Committee

Acceptance:

The foregoing terms and
conditions are accepted and
agreed to effective this _____
day of _____________, 2001

/s/ Andrew E. Graves<PAGE>    1

                                                                   Exhibit 10(g)

                            THE LIZ CLAIBORNE 401(K)

                         SAVINGS AND PROFIT SHARING PLAN

                             As Amended and Restated
                          Effective as of April 1, 2000

<PAGE>    2

            The Liz Claiborne 401(k) Savings and Profit Sharing Plan

                            (As Amended and Restated
                         Effective as of April 1, 2000)

                                    Preamble

     Effective January 1, 1985, Liz Claiborne,  Inc. (the "Company") adopted the
Liz Claiborne  Savings Plan (the  "Plan"),  a stock bonus plan that provides for
contributions  pursuant to section 401(k) of the Internal  Revenue Code of 1986,
as amended (the  "Code"),  which plan has been amended and restated from time to
time.

     Effective  January 1, 1983,  the Company  adopted the Liz Claiborne  Profit
Sharing  Retirement Plan (the "Profit Sharing Plan"), a profit sharing plan that
provides for employer  profit  sharing  contributions,  which plan has also been
amended and restated from time to time.

     On June 9,  1999 the  Company  acquired  approximately  85% of the stock of
Lucky Brand Dungarees,  Inc. ("Lucky"),  the sponsor of the Lucky Brand Employee
Retirement  Plan and Trust (the "Lucky  Plan"),  a profit sharing plan providing
for contributions under section 401(k) of the Code.

     On June 11, 1999, the Company  acquired  approximately  85% of the stock of
Segrets,  Inc.  ("Segrets"),  the sponsor of the  Segrets,  Inc.  401(k)  Profit
Sharing  Plan  (the  "Segrets  Plan"),  a  profit  sharing  plan  providing  for
contributions under section 401(k) of the Code.

     On  November  2,  1999 the  Company  acquired  100% of the  stock of Podell
Industries,  Inc.,  the sponsor of the Podell  Industries,  Inc.  401(k)  Profit
Sharing  Plan  (the  "Laundry  Plan"),  a  profit  sharing  plan  providing  for
contributions under section 401(k) of the Code.

     The Company now desires to amend and restate the Plan to reflect the merger
into it of the  Profit  Sharing  Plan,  the Lucky  Plan,  and the  Segrets  Plan
effective as of December 31, 1999 and the Laundry Plan  effective as of April 1,
2000;  and (ii) to further  amend the Plan to comply with the  provisions of the
Small  Business  Job  Protection  Act  of  1996  ("SBJPA"),  the  Uruguay  Round
Agreements  Act (also  referred to as "GATT"),  the Taxpayer  Relief Act of 1997
("TRA 97") and the IRS Restructuring and Reform Act of 1998 (together, the "GUST
provisions"),  as well as  other  amendments  determined  by the  Company  to be
appropriate  to further  the  purposes  of the Plan,  effective  as of the dates
required  by such  provisions  of law or as  expressly  set  forth  herein,  and
otherwise as of the date hereof.

     The Plan as amended and restated  herein is intended to qualify as a profit
sharing  plan  within the  meaning of section  401(a) of the Code with a cash or
deferred arrangement within the meaning of section 401(k) of the Code.

<PAGE>    3

                  :

                                   ARTICLE I

                                     General

1.1 Effective  Date.  The effective  date of this  amendment and  restatement is
April 1, 2000. Except as expressly  provided herein, the rights of a Participant
or an Eligible  Employee who has terminated  employment and who does not have an
Hour of Service on or after the Effective  Date shall be determined by the terms
of the Plan in effect  immediately prior to the Effective Date.  Notwithstanding
the  forgoing,  certain  provisions of this document are intended to comply with
changes to the Code made by the GUST  provisions,  and shall have the  effective
dates of such  changes.  To the extent  applicable,  any  provisions of the Plan
intended to comply with the GUST provisions shall also be considered  amendments
to the prior version of this Plan,  the Profit Sharing Plan, the Lucky Plan, the
Segrets Plan and the Laundry Plan as of the relevant effective dates.

1.2  Definitions.  Terms used frequently with the same meaning are  capitalized;
some terms are  defined  below,  others in the section of the Plan to which they
principally pertain.

     (a) When used in this Plan,  the following  terms shall have the designated
     meanings, unless a different meaning is clearly required by the context:

          (i) "Accounts". A Participant's Profit Sharing Contributions, Matching
     Contributions,     Tax-Saver    Contributions,    Qualified    Non-Elective
     Contributions, Buy-Back and Rollover Accounts.

          (ii) "Affiliate".  A Controlled Group Member or an Affiliated  Service
     Group Member.

          (iii)  "Affiliated  Service  Group  Member".  Any  (A)  member  of  an
     affiliated service group, within the meaning of section 414(m) of the Code,
     that includes the Company or a Controlled Group Member, or (B) organization
     aggregated  with the  Company or a  Controlled  Group  Member  pursuant  to
     section 414(o) of the Code, but only if and to the extent  (including  time
     period) required by such sections.

          (iv) "Appropriate Form". The form prescribed by the Recordkeeper for a
     particular  purpose  specified  in the Plan,  as more  fully  described  in
     Section 14.1.

          (v)  "Beneficiary".  The person or persons  entitled to benefits under
     the Plan following a Participant's death, pursuant to Article X.

          (vi) "Board of Directors".  The Board of Directors of the Company,  or
     any duly authorized committee thereof.

                                      -2-
<PAGE>    4

          (vii)  "Buy-Back  Account".   A  separate  account  maintained  for  a
     Participant  which reflects his share of the Trust Fund attributable to his
     repayment of a prior distribution under Section 7.5.

          (viii) "Code".  The Internal Revenue Code of 1986 as amended from time
     to time.  Reference to a specific  provision of the Code shall include such
     provision,  any valid regulation or ruling  promulgated  thereunder and any
     comparable  provision of future law that amends,  supplements or supersedes
     such provision.

          (ix) "Committee". The administrative/investment committee provided for
     in Article XII.

          (x) "Common Stock". Common stock of the Company.

          (xi) "Company".  Liz Claiborne,  Inc. a Delaware  Corporation,  or any
     successor thereto by merger, consolidation or otherwise

          (xii)  "Company Stock Fund. An Investment  Fund invested  primarily in
     Common Stock.

          (xiii)  "Compensation".  An individual's base salary or base wages and
     commissions  paid by an Employer  for  services  as an  Eligible  Employee,
     excluding bonuses, overtime, and all other forms of extra compensation, but
     determined  before giving effect to any  Contribution  Agreement under this
     Plan, or any salary reduction or similar agreement under any plan described
     in section 401(k) or 125 of the Code.  The total amount of a  Participant's
     Compensation  taken into account under the Plan for any Plan Year shall not
     exceed  the  maximum  amount  permitted  for such Plan Year  under  section
     401(a)(17) of the Code.

          (xiv) "Contribution  Agreement".  An agreement by an Eligible Employee
     to reduce his  Compensation  otherwise  payable in cash in order to receive
     Tax-Saver  Contributions  under the  Plan,  which  agreement  may be either
     express or deemed to have been made as provided in Section 4.2.

          (xv) "Controlled Group Member". Any trade or business,  whether or not
     incorporated, during such period in which it controls, is controlled by, or
     is under  common  control  with the  Company  within the meaning of section
     414(b) or 414(c) of the Code.

          (xvi)  "Disability".  A Participant has incurred a Disability if he is
     determined by the Committee to have become  incapable of performing  all of
     the duties of his  normal  occupation  because of an illness or  accidental
     injury that is expected  to be  permanent  or of  indefinite  duration.  In
     making its determination the Committee may treat as conclusive  evidence of
     Disability a Participant's  qualification for disability benefits under the
     Social Security Act.

          (xvii) "Effective Date". See Section 1.1.

                                      -3-
<PAGE>    5

          (xviii) "Eligible Employee". See Section 3.1.

          (xix)  "Employer".  The Company and any other  Controlled Group Member
     which has adopted the Plan with the approval of the Company and which shall
     not have discontinued its sponsorship pursuant to Section 13.1.

          (xx)  "Entry  Date".  The first day of each  month and any other  date
     established  as an entry date by the  Committee  with  respect to  Eligible
     Employees  generally,  or such specified group of Eligible Employees as the
     Committee may prescribe in its discretion.

          (xxi) "ERISA".  The Employee Retirement Income Security Act of 1974 as
     amended from time to time. Reference to a specific provision of ERISA shall
     include  such  provision,   any  valid  regulation  or  ruling  promulgated
     thereunder  and  any  comparable  provision  of  future  law  that  amends,
     supplements or supersedes such provision.

          (xxii) "Full Time" and "Part Time". See Subparagraph 3.1(f)(i).

          (xxiii) "Highly Compensated Employee".  For any Plan Year, an employee
     who  received   compensation  from  the  Company  and  its  Affiliates  (as
     determined  under section 414(q) of the Code) during the prior Plan Year in
     excess of $80,000 (as adjusted  pursuant to section  414(q) of the Code) or
     who was a five percent (5%) owner (within the meaning of Section  414(q) of
     the Code) of the Company at any time during the current or prior Plan Year.

          (xxiv) "Hour of  Service".  Each hour for which an employee is paid or
     entitled to payment for the performance of duties for the Company,  another
     Employer or an Affiliate, and each hour for which back pay, irrespective of
     mitigation of damages,  is either  awarded or agreed to by the Company,  an
     Employer  or an  Affiliate,  disregarding  payments  made or due solely for
     purposes of complying with workers' compensation, unemployment compensation
     or  disability  insurance  laws and  payments  which  solely  reimburse  an
     employee for medical  expenses and severance  pay. Hours to be credited for
     reasons  other  than the  performance  of duties  shall be  determined  and
     credited  in  accordance   with  the  provisions  of  Department  of  Labor
     Regulation  Section  2530.200b-2(b)  and (c). With respect to employees for
     whom hourly employment  records are not regularly kept, the Committee shall
     establish  such  equivalents  as it deems  appropriate  in accordance  with
     Department of Labor Regulation 2530.200b-3(c).

          (xxv)  "Investment  Fund".  A  portion  of the  Trust  Fund  which  is
     separately invested pursuant to Section 6.5.

          (xxvi)  "Leased  Employee".  An  individual  treated as an employee of
     non-adopting Controlled Group Member pursuant to Section 3.9.

          (xxvii) "Matching  Contributions".  Contributions  made by an Employer
     for a Participant  under Section 4.7, based on the Tax-Saver  Contributions
     made for the Participant.

                                      -4-
<PAGE>    6

          (xxviii)  "Matching   Contributions   Account".   A  separate  account
     maintained for each Participant  which reflects his share of the Trust Fund
     attributable to Matching Contributions.

          (xxix) "Maternity or Paternity  Absence".  An employee's  absence from
     work because of the pregnancy of the employee,  the birth of the employee's
     child or the  adoption of a child by the employee or for purposes of caring
     for the employee's child immediately following such birth or adoption.  The
     Committee  may  require  the  employee to furnish  such  information  as it
     considers  necessary  to  establish  that  such  employee's  absence  was a
     maternity or paternity absence.

          (xxx) "Normal Retirement Date". An employee's 65th birthday.

          (xxxi) "One Year Break in Service":  A continuous  12-month  period of
     absence  commencing on the earlier of the day an employee  quits,  retires,
     dies, or is discharged  or, in the case of an absence for any other reason,
     the first  anniversary  of the first day of such absence if the employee is
     not paid or  entitled  to  payment  for the  performance  of duties for the
     Company or any Affiliate during such 12-month  period.  Solely for purposes
     of  determining  whether  a One Year  Break is  Service  has  occurred,  an
     employee who is absent from  service  beyond the first  anniversary  of the
     date on which his  Maternity or Paternity  Absence began shall be deemed to
     have terminated employment no later than the second anniversary of the date
     on which the Maternity or Paternity Absence began.

          (xxxii)  "Participant".  Any employee who has become a Participant  in
     this Plan in accordance  with Article II, and any other  employee or former
     employee who has an undistributed Account balance under the Plan.

          (xxxiii)  "Plan".  The Liz Claiborne 401(k) Savings and Profit Sharing
     Plan (As Amended and Restated  Effective as of April 1, 2000), as from time
     to time in effect.

          (xxxiv) "Plan Year".  Each  twelve-month  period starting on January 1
     and ending on December 31.

          (xxxv) "Profit Sharing  Contributions".  Contributions  by an Employer
     under Section 4.13.

          (xxxvi) "Profit Sharing  Contributions  Account".  A separate  account
     maintained for each Participant  which reflects his share of the Trust Fund
     attributable to Profit Sharing Contributions.

          (xxxvii)   "Qualified   Non-Elective   Contributions".   Discretionary
     contributions by an Employer for a Participant under Section 4.10.

          (xxxviii) "Recordkeeper".  The entity which the Committee has employed
     to perform recordkeeping and certain other administrative functions for the
     Plan.

                                      -5-
<PAGE>    7

          (xxxix) "Rollover".  A Participant's rollover contribution pursuant to
     Section 4.12.

          (xl)  "Rollover  Account".  A  separate  account  maintained  for each
     Participant  which reflects his share of the Trust Fund attributable to his
     Rollovers.

          (xli) "Tax-Saver Contributions Account". A separate Account maintained
     for  each   Participant   which  reflects  his  share  of  the  Trust  Fund
     attributable to Tax-Saver Contributions.

          (xlii) "Tax-Saver  Contributions".  Contributions  made by an Employer
     for the benefit of a Participant  under Section 4.1, based on the amount by
     which the Participant  elected (or is deemed to have elected) to reduce the
     Compensation  otherwise  payable to him in cash in accordance  with Section
     4.2.

          (xliii)  Termination Date. The date on which an employee's  employment
     with the Company and its Affiliates terminates for any reason.

          (xliv) "Total Earnings".  Total  compensation (as that term is defined
     in  Treas.  Reg  Section  1.415-2(d)(ll)(i))  paid  by  the  Company  or an
     Affiliate to an  individual,  but  determined  before  giving effect to any
     Contribution  Agreement  under  this  Plan (or any other  cash or  deferred
     arrangement  described  in  section  401(k) of the Code) or to any  similar
     reduction  agreement  pursuant to any cafeteria plan (within the meaning of
     section 125 of the Code).  For  purposes of  Sections  5.7 and 5.11,  Total
     Earnings  shall be  limited to such  compensation  paid by an  Employer  or
     Affiliate to an individual for the portion of the Plan Year during which he
     was  eligible  to make  Tax-Saver  Contributions  or  eligible  to  receive
     Matching  Contributions,  as applicable.  Total earnings taken into account
     under  the Plan for any Plan Year  shall  not  exceed  the  maximum  amount
     permitted for such Plan Year under section 401(a)(17) of the Code.

          (xlv)  "Treasury   Regulations".   Any  regulation  published  by  the
     Secretary of the Treasury with respect to any section of the Code,  and any
     revenue ruling,  notice or announcement of general application pertinent to
     any Code section published by the United States Treasury Department.

          (xlvi) "Trust  Agreement".  The trust agreement referred to in Article
     XI.

          (xlvii)  "Trust  Fund".  All the  assets  held  under  the Plan by the
     Trustee as provided for in Article XI.

          (xlviii)  "Trustee".  The  corporation,  individual,  individuals,  or
     combination  thereof  which may at any time be acting as trustee  under the
     Trust Agreement entered into in connection with the Plan.

          (xlix)  "Valuation  Date".  Generally,  each  business  day;  for this
     purpose,  a business day is any day on which the New York Stock Exchange is
     open.  Notwithstanding the foregoing, the Committee, in its discretion, may
     suspend daily  valuations for such period as it considers  appropriate,  or
     may designate a different

                                      -6-
<PAGE>    8

     valuation  cycle  (such as  monthly  or  quarterly),  as long as there is a
     valuation as of the last business day of each Plan Year.

          (l) "Year of Eligibility Service". See Section 2.2

          (li) "Year of Vesting Service". See Section 2.3

     (b) Where the context permits,  words in any gender shall include any other
     gender, words in the singular shall include the plural and the plural shall
     include the singular.

1.3 Plan  Supplements.  The provisions of the Plan as applied to any Employer or
any group of employees of any Employer may be modified or supplemented from time
to time by the  Company  by the  adoption  of one or  more  "Supplements".  Each
Supplement shall form a part of the Plan as of the Supplement's  effective date.
In the event of any  inconsistency  between a Supplement  and the Plan document,
the terms of the Supplement shall govern.

                                      -7-
<PAGE>    9

                                   ARTICLE II

                                     Service

2.1  General.  Service is used under the Plan to  determine  when an employee is
able to participate in the different types of contributions  available under the
Plan  and  when  he  has   earned  a  vested,   nonforfeitable   right  to  such
contributions.  Service is determined  differently for different  purposes under
the Plan.

2.2  Year of  Eligibility  Service.  An  employee  will  have  earned a "Year of
Eligibility Service" at the end of a twelve consecutive month computation period
during which the employee is credited with at least 1,000 Hours of Service; such
computation  period  shall begin on (a) the first day for which the  employee is
paid or entitled to payment for the  performance of duties for the Company or an
Affiliate or (b) any  anniversary  of such first day.  The employee  need not be
employed at the end of such  computation  period to be  credited  with a Year of
Eligibility Service.

2.3 Years of Vesting  Service.  An employee will have "Years of Vesting Service"
equal to the  number  of  years,  computed  to a  fraction  based  upon 365 days
comprising  a year,  elapsed  since the first date for which the employee has an
Hour of Service and ending on the day he last severs employment with the Company
and its Affiliates, subject to the following:

     (a) An  employee  will have  severed  employment  with the  Company and its
     Affiliates  on the  earlier  of (i) the day he quits,  retires,  dies or is
     discharged,  or (ii) the first  anniversary  of the first day of an absence
     for any other reason.

     (b) If an  employee's  employment  with the Company and its  Affiliates  is
     terminated  and he  incurs a One Year  Break in  Service,  he shall  not be
     credited with service for the period between the date he severed employment
     with  the  Company  and  its  affiliates  and  the  date,  if  any,  of his
     reemployment by the Company or an Affiliate.

     (c) Any absence  that is shorter  than  twelve  full months  shall count as
     vesting service.

     (d)  The  period  between  the  first  anniversary  of the  first  day of a
     Maternity  or  Paternity  Absence  and  the  second  anniversary  shall  be
     considered  neither  vesting  service  nor any part of a One Year  Break in
     Service.

     (e) Vesting  service earned by an employee after five (5)  consecutive  One
     Year  Breaks in Service  shall be  disregarded  in  determining  the vested
     percentage  of his benefit  under the Plan derived from Matching and Profit
     Sharing Contributions accrued prior to such break.

     (f) If an employee or Participant  terminates  employment  with the Company
     and its Affiliates  without  having a vested  interest in any portion of an
     Account and such employee or  Participant  incurs six (6)  consecutive  One
     Year Breaks in  Service,  his  employment  prior to the first such One Year
     break in Service shall be disregarded and he shall be treated as a new hire
     for purpose of when he may begin participation in the Plan

                                      -8-
<PAGE>   10

and Section 3.1 after his  reemployment.  The foregoing rule of parity shall not
affect an individual's retention of his Years of Vesting Service earned prior to
his  reemployment by the Company or an Affiliate for purposes of determining his
vested  interest in any Employer  contributions  first  allocated to his Account
after his reemployment.

2.4 Changes in Employment  Status and Application of Different Service Crediting
Rules to the  Determination  of  Eligibility.  In the event  that an  individual
changes  status from a Full Time  employee to a Part Time employee or vice-versa
(whether in  connection  with a termination  of  employment  or  otherwise)  the
following rules shall apply:

     (a) an employee  who moves from Part Time status to Full Time status  shall
     be credited with the greater of (i) the period of elapsed-time service that
     would be credited under Section 2.3 during the entire computation period in
     which the transfer occurs or (ii) the service  creditable under Section 2.2
     as of the date of transfer; and

     (b) An employee who moves from Full Time to Part Time status shall  receive
     credit for Hours of Service in the computation period in which the transfer
     occurs for any elapsed time  service  earned prior to the date of transfer,
     determined  by  multiplying  45 by  the  number  of  weeks  worked  in  any
     fractional part of a year credited under Section 2.3 prior to the transfer.

For purposes of the  foregoing,  the transfer will be deemed to have occurred on
the date the  employee  returns  to work when the  change  in  status  occurs in
connection with an interruption of active employment.

Notwithstanding  the foregoing,  if an individual changes from Full Time to Part
Time status after he has received his initial  enrollment  kit, he will continue
to be treated as a Full Time employee for purposes of subparagraph 3.1(f)(i).

2.5 Service With Acquired Companies or Businesses. Notwithstanding the foregoing
provisions  of this  Article  II, in the event that the  Company or an  Employer
acquires a business not previously included in the Company's  "controlled group"
of  businesses  within the meaning of section 414 of the Code,  the Committee in
its discretion  may decide to recognize  service with such business prior to the
acquisition as though it were service with an Affiliate, to the extent that, and
in accordance with such rules as, the Committee deems appropriate.

                                      -9-
<PAGE>   11

                                  ARTICLE III

                            Participation in the Plan

3.1 Eligibility to Participate in the Plan. An employee who was a Participant in
the Plan (or in the  Profit  Sharing  Plan)  prior to the  Effective  Date  with
respect to eligibility to make Tax-Saver  Contributions,  eligibility to receive
Matching  Contributions or eligibility to share in Profit Sharing  Contributions
shall  continue  as a  Participant  with  respect  to such  right(s)  after  the
Effective  Date if such employee is still  employed in a group to which the Plan
has been  extended on the  Effective  Date.  Each other  employee of an Employer
shall be an "Eligible Employee" with respect to a particular portion of the Plan
as of the Entry  Date  coincident  with or next  following  the date on which he
first satisfies all of the following requirements:

     (a) he is employed in the continental United States in a group to which the
     Plan (or the relevant  portion thereof) has been extended by the Company or
     his  Employer;  for  this  purpose  an  Employer  may,  in its  discretion,
     determine  that  employees  in a specified  division,  subdivision,  plant,
     location  or job  classification  of such  Employer  shall not be  Eligible
     Employees,  provided that any such determination  shall not discriminate in
     favor of officers,  shareholders or highly  compensated  employees so as to
     prevent the Plan from qualifying under section 401(a) of the Code;

     (b) he does not perform  services  for the  Company or an Employer  under a
     contract,  agreement,  arrangement or understanding  that purports to treat
     him as an independent contractor,  a fragrance demonstrator or the employee
     of  a  leasing  organization,  agency  or  other  entity,  even  if  he  is
     subsequently  determined (by judicial  action or otherwise) to have instead
     been a common law employee of such Employer;

     (c) his  employment  with the  Company or his  Employer is not covered by a
     collective bargaining agreement,  unless participation in the Plan has been
     extended to him under the terms of such collective bargaining agreement;

     (d) he has attained age 21;

     (e) he is not a non-resident alien; and

     (f) he has satisfied the applicable service requirement for that portion of
     the Plan, as follows:

          (i) with  respect to Tax-Saver  Contributions,  if he is a "Full Time"
          employee (that is, he is scheduled to work a full work week determined
          by the  customary  practice  of his  location,  business  unit  or job
          description as determined by the Committee in its sole discretion), he
          has completed one half (1/2) of a Year of Vesting Service, or if he is
          a "Part Time" employee (that is, he is not a Full Time  employee),  he
          has completed a Year of Eligibility Service;

          (ii)  with  respect  to  Matching  Contribution,  if he is a Full Time
          employee, he has completed a Year of Vesting Service (or has a Year of
          Eligibility Service for the

                                      -10-
<PAGE>   12

          computation  period ending in the 2000 Plan Year), and if he is a Part
          Time employee, he has completed a Year of Eligibility Service;

          (iii) with respect to Profit Sharing Contributions, he has completed a
          Year of  Eligibility  Service,  whether he is a Full Time or Part Time
          employee; and

          (iv) there is no service  requirement for Rollover  Contributions with
          respect to an otherwise eligible employee.

3.2 Transfer to Eligible  Employment.  If an employee  transfers from a position
with an Employer or Affiliate that is not covered by the Plan to a position with
an Employer that is covered by the Plan,  he shall become a  Participant  on the
later of (a) the first Entry Date  coincident with or next following the date of
such  transfer,  or (b) the first  Entry  Date on which he could  have  become a
Participant  pursuant to Section 3.1 if his prior  employment by the Employer or
Affiliate had been in a position eligible for participation in the Plan.

3.3 Reemployment.  If an employee who has terminated  employment is rehired into
an eligible group, he shall commence or resume  participation  under the Plan on
the later of (a) the date of such rehire,  or (b) the Entry Date coinciding with
or next following that date he satisfies all of the requirements of Section 3.1,
unless such  employee is treated as a new hire for  eligibility  purposes  under
paragraph 2.3(f),  in which case he must again satisfy the service  requirements
of paragraph 3.1(f).

3.4  Inactive  Participation.  If an  individual  ceases  to  meet  all  of  the
eligibility  requirements of Section 3.1, such individual shall be considered an
inactive  Participant  in the Plan for as long as any amount is  credited to his
Account under the Plan, but:

     (a) no contributions shall be made by or for him; and

     (b)  except  as  otherwise  expressly  provided  herein,  he may not make a
     withdrawal  or borrow under  Section X after he ceases to be an employee of
     an Employer or an Affiliate.

3.5 Transfers Between Employers.  If a Participant  transfers from employment as
an Eligible  Employee with one Employer to  employment  as an Eligible  Employee
with another Employer his participation in the Plan shall not be interrupted and
his  Contribution  Agreement (if any) with his prior Employer shall be deemed to
apply to his  second  Employer  in the same  manner as it  applied  to his prior
Employer.

3.6 No Employment  Rights.  The establishment of the Plan shall not be construed
as conferring any rights upon any employee or any person for a  continuation  of
his  employment,  nor shall it be  construed as limiting in any way the right of
any  Employer or  Affiliate  to  discharge  any employee or to treat him without
regard to the effect which such  treatment  might have upon him as a Participant
under the Plan.

3.7 Rollover Participation. An employee who satisfies all of the requirements of
Section 3.1 other than  paragraphs (d) and (f) may make a Rollover  Contribution
pursuant to Section 4.12 and thereby become a Participant as of the date of such
contribution  (if he has not  previously  become  a  Participant)  only  for the
purposes of such Rollover, and shall not be eligible to share in

                                      -11-
<PAGE>   13

Tax-Saver,  Matching or Profit Sharing  Contributions until he has qualified for
such contributions in accordance with the applicable provisions of Section 3.1.

3.8 Participation Voluntary For Certain Purposes.  Participation with respect to
Tax-Saver  and Matching  Contributions  in this Plan shall be voluntary  and any
person  otherwise  eligible may decline to  participate in those portions of the
Plan;  participation  with  respect  to Profit  Sharing  Contributions  shall be
automatic.

3.9 Leased  Employees.  If a person satisfies the requirements of section 414(n)
of the Code and  applicable  Treasury  Regulations  for  treatment  as a "Leased
Employee",  such Leased  Employee  shall not be eligible to  participate in this
Plan but, to the extent  required by section  414(n) of the Code and  applicable
Treasury Regulations,  such person shall be treated as if the services performed
by him in such  capacity  were  performed  by him as an employee of a Controlled
Group Member  which has not adopted the Plan,  provided,  however,  that no such
service  shall be credited for any period  during which not more than 20% of the
non-Highly  Compensated  Employees of the Company and its Affiliates consists of
Leased  Employees and the Leased  Employee is a participant  in a money purchase
pension plan  maintained  by the leasing  organization  which (a) provides for a
non-integrated employer contribution of at least 10 percent of compensation, (b)
provides for full and  immediate  vesting,  and (c) covers all  employees of the
leasing organization (beginning with the date they become employees), other than
those employees excluded under section 414(n)(5) of the Code.

                                      -12-
<PAGE>   14

                                   ARTICLE IV

                                  Contributions

4.1 Tax-Saver  Contributions.  Subject to the terms and  conditions of the Plan,
including  Article V, an Eligible  Employee  may elect to have his  Compensation
reduced and a corresponding amount of Tax-Saver Contributions made on his behalf
for each  payroll  period in an  amount  equal to any  whole  percentage  of his
Compensation  for such payroll  period between 1% and 15%,  inclusive,  provided
that a whole  percentage of his  Compensation  for a payroll period shall not be
required if necessary or appropriate  to comply with any applicable  limitations
on  the  amount  of  Tax-Saver  Contributions  permitted.   Notwithstanding  the
foregoing,  the Committee shall decrease the rate of a  Participant's  Tax-Saver
Contributions   for  any  payroll  period  to  the  extent  the  amount  of  the
corresponding  reduction,  plus the amount of the  Participant's  deductions for
such payroll period for welfare benefits sponsored by the Employer and any other
withholding   from  pay  required  by  law,   would  exceed  the   Participant's
Compensation for such payroll period.

4.2 Contribution Agreement for Tax-Saver Contributions.  Prior to April 1, 2000,
to become a  Participant  for  purposes of Tax-Saver  Contributions  an Eligible
Employee must have completed and returned a Contribution Agreement. On and after
April 1, 2000,  an  Eligible  Employee,  upon first  becoming  eligible  to make
Tax-Saver  Contributions,  shall be  deemed  to have  completed  a  Contribution
Agreement under which he agrees to reduce the Compensation  otherwise payable to
him in cash on each  subsequent  payroll date by 3% (or such other amount as the
Committee  may  specify on a uniform  and  nondiscriminatory  basis);  provided,
however,  that  any  such  individual  may  elect  not to  have  such  automatic
contributions  made on his behalf, or to have  contributions made in a different
amount, by providing such notification as the Committee may specify.

4.3  Time  of  Tax-Saver   Contributions.   Tax-Saver   Contributions  shall  be
contributed  by the  Participant's  Employer as soon as  reasonably  practicable
after the payroll date to which such contributions relate.

4.4 Change in  Contribution  Rate.  Any  Eligible  Employee or  Participant  who
previously has declined to make Tax-Saver  Contributions and any Participant who
has a Contribution  Agreement in effect may  prospectively  increase or decrease
the  percentage of Tax-Saver  Contributions  to be made on his behalf within the
limits  specified in Section  4.1,  effective as of a future  payroll  date,  by
giving notice on the Appropriate Form to the Committee at least thirty (30) days
before such date or within such other period as the Committee may prescribe.

4.5  Voluntary  Suspension  of  Tax-Saver   Contributions.   A  Participant  may
voluntarily suspend his Contribution  Agreement effective as of a future payroll
date by giving notice to the Committee on the  Appropriate  Form at least thirty
(30) days before such date or within such other advance  period as the Committee
may prescribe.  No Tax-Saver  Contributions or Matching  Contributions  shall be
made  for  any  Participant   with  respect  to  any  period  during  which  his
Contribution Agreement has been so suspended. An Eligible Employee may reinstate
his

                                      -13-
<PAGE>   15

Contribution  Agreement  as of the first day of any  payroll  period,  by giving
notice on the Appropriate Form at least thirty (30) days before the first day of
such payroll  period (or within such other  advance  period as the Committee may
prescribe).

4.6 Mandatory Suspension of Tax-Saver Contributions.  The Contribution Agreement
of  a  Participant   who  makes  a  hardship   withdrawal   from  his  Tax-Saver
Contributions  Account  pursuant  to Section  8.3 shall be  suspended  as of the
payroll  period in which the  withdrawal  is made until the next payroll  period
that is at least  12  months  after  the date of such  withdrawal.  An  Eligible
Employee may  reinstate  his  Contribution  Agreement as of the first day of any
payroll  period  following a period of mandatory  suspension  under this Section
4.6, by giving advance notice to the Committee on the  Appropriate  Form so that
it is  received by the  Committee  within  such  period as the  Committee  shall
prescribe.

4.7 Matching Contributions. Matching Contributions shall be made with respect to
Tax-Saver Contributions in accordance with the following:

     (a) For each payroll  period  beginning on or after the Effective  Date the
     Employers  shall  make  Matching   Contributions   to  the  Plan  for  each
     Participant who had a Contribution  Agreement in effect during such payroll
     period,  in  an  amount  equal  to  50%  of  such  Participant's  Tax-Saver
     Contributions  for  such  payroll  period  that  do  not  exceed  6% of his
     Compensation for that payroll period.

     (b) Prior to the Effective Date, at the end of each calendar  quarter,  the
     Employers would determine whether the Matching  Contributions made pursuant
     to  paragraph  (a)  above on a  payroll-by-payroll  basis  equal,  for that
     calendar quarter, 50% of the Participant's Tax-Saver Contributions for that
     quarter that do not exceed 5% of his  Compensation  for that quarter or, if
     shorter,  so much of the quarter during which he was a Participant.  If the
     amount contributed under paragraph (a) did not equal the amount required by
     this paragraph (b), the Employers  would  contribute the additional  amount
     necessary to make the Participant whole. No such true-up contribution shall
     be made with respect to any  calendar  quarter  commencing  on or after the
     Effective Date.

4.8 Payment of Matching Contributions.  Matching Contributions made with respect
to a payroll period under paragraph  4.7(a) shall be paid to the Trustee as soon
as reasonably practicable after the end of such period, and any true-up Matching
Contributions made under paragraph 4.7(b) for a quarter shall be made as soon as
practicable  after  such  quarter,  but in no  event  later  than  the due  date
(including  extensions) of the Employer's  federal income tax return for the tax
year to which such contribution  relates.  Such Matching  Contributions shall be
allocated  to  the  Participant's  Matching  Contributions  Account  as of  such
Valuation Date within the Plan Year as the Committee shall direct.

4.9 Matching  Contributions  Only For Permissible  Tax-Saver  Contributions.  No
Matching  Contributions  shall be made  with  respect  to (i)  Excess  Tax-Saver
Contributions (as defined in Section 5.8) distributable pursuant to Section 5.9,
(ii)  Tax-Saver  Contributions  in excess  of the  elective  deferral  limit (as
defined in Section  5.4),  or (iii) excess  Annual  Additions  that are refunded
under Section 5.3. Any amounts paid into the Trust Fund with the intention  that
they  constitute  Matching  Contributions  with respect to such amounts shall be
retained in the

                                      -14-
<PAGE>   16

Trust  Fund  and  applied  to  meet  the  obligation  of the  Employers  to make
contributions under this Article IV.

4.10 Qualified  Non-Elective  Contributions.  For each Plan Year,  each Employer
shall contribute to the Trust Fund, in cash, such additional amounts (if any) as
the  Committee,  in its sole  discretion,  shall  determine  to be  necessary or
desirable  in order to meet the  requirements  of Sections 5.6 and 5.10 for such
Plan Year. Such additional  contributions shall be made at such time as shall be
required by applicable Treasury  Regulations.  The Committee shall designate any
such amounts as "qualified  non-elective  contributions"  (within the meaning of
section  401(m)(4)(C)  of the Code) and shall  determine  the group of  Eligible
Employees (who shall not be Highly Compensated  Employees)  eligible to share in
such Qualified  Non-Elective  Contributions,  the method of apportionment  under
which  such  Eligible  Employees  shall  share  in  such  contributions  and the
Investment  Funds in which  such  contributions  shall  initially  be  invested.
Anything in this Plan to the contrary notwithstanding,  each Participant, at all
times, shall have a fully vested and nonforfeitable right to 100% of the amounts
in his Accounts attributable to Qualified Non-Elective  Contributions,  and such
contributions  shall be treated  as  Tax-Saver  Contributions  for  purposes  of
determining  when they may be  distributed  under the Plan,  except that no such
amounts may be withdrawn prior to age 59 1/2 or separation from service, even on
account of hardship. At the direction of the Committee,  Qualified  Non-Elective
Contributions may be used to satisfy the Average Deferral  Percentage test under
Section 5.6 or the Contribution Percentage test under Section 5.10 in accordance
with applicable Treasury Regulations.

4.11   Contributions  for  Military  Service.   Effective   December  12,  1994,
notwithstanding  any  provisions  of this  Plan to the  contrary,  contributions
(including Profit Sharing  Contributions) shall be made with respect to a period
in which an  individual  would  have  been a  Participant  but for his  military
service to the extent  required  by Chapter 43 of Title 38 of the United  States
Code (USERRA) and in accordance  with section  414(u) of the Code. The amount of
any such  Tax-Saver  Contributions  and of  Matching  Contributions  in  respect
thereof shall be based upon such individual's election made following his return
to employment with the Employer  following such military service (and within the
time during which he had  reemployment  rights) in  accordance  with  procedures
established by the Committee;  provided that no such Tax-Saver Contributions may
exceed  the  amount  the  individual  would  have  been  permitted  to  elect to
contribute had the  individual  remained  continuously  employed by the Employer
throughout the period of such military service (and Matching Contributions shall
be limited accordingly).  Such contributions (and Profit Sharing  Contributions)
shall be taken into account as Annual  Additions  for purposes of Section 5.2 in
the Plan Year to which they  relate,  and for  purposes of applying the elective
deferral  limit set forth in Section 5.4 in the Plan Year to which they  relate,
rather  than in the Plan  Year in which  made,  and  shall  be  disregarded  for
purposes of applying the limits  described  in Sections  5.6 and 5.10.  Any such
contribution shall be made no later than five years from the date of such return
to  employment  or, if less,  a period  equal to three  times the period of such
military service.

4.12 Rollovers.  The Committee,  in its sole discretion,  may authorize Eligible
Employees  to make  Rollovers  which  qualify as  rollover  contributions  under
applicable  provisions of the Code. The Committee shall exercise such discretion
on a nondiscriminatory basis. All Rollovers shall

                                      -15-
<PAGE>   17

be  received  and  held  in  the  Trust  Fund,  and  shall  be  credited  to the
Participant's Rollover Account as of such date as the Committee shall specify.

4.13  Profit  Sharing  Contributions.  For each  Plan Year the  Employers  shall
contribute to the Trust Fund such amount (if any) as shall have been  determined
by the Company. Such determination may be made at any time prior to the due date
(including extensions) of the Company's Federal income tax return for its fiscal
year ending with or within such Plan Year.

4.14 Eligibility to Share in Profit Sharing  Contributions.  A Participant shall
be eligible to share in Profit Sharing Contributions for a Plan Year only if (a)
he has completed at least 1,000 Hours of Service  during the Plan Year and he is
employed by an Employer or  Affiliate on the December 31 of such year (or on the
latest earlier date during such year which the Committee determines is necessary
or  appropriate  in order for the Plan to satisfy  the  requirements  of Section
410(b) of the Code), or (b) during such Plan Year his employment  ended after he
(i) died,  (ii) reached his Normal  Retirement  Date,  (iii)  reached age 60 and
completed at least 6 Years of Vesting Service,  (iv) completed at least 20 Years
of Vesting Service or (v) incurred a Disability.

4.15 Allocation of Profit Sharing Contributions and Forfeitures.  Profit Sharing
Contributions  for a Plan Year shall be allocated as of the last business day of
such year to the Profit Sharing Accounts of all Participants who are eligible to
share  in  such  contributions,  in  the  ratio  that  each  such  Participant's
Compensation  for the Plan  Year  bears to the  total  Compensation  of all such
Participants for that Plan Year. For this purpose,  Compensation paid before the
day  participation  began for  purposes of Section  4.14 shall not be taken into
account.

4.16  Contributions  May  Not  Exceed  Amount  Deductible.  In  no  event  shall
contributions  under this  Article IV for any  taxable  year  exceed the maximum
amount  (including  amounts  carried  forward)  deductible for that taxable year
under section 404(a)(3) of the Code, and all such  contributions are conditioned
on their deductibility.

4.17 Form of  Payment  to  Trustee.  Profit  Sharing,  Tax-Saver,  Matching  and
Qualified  Non-Elective  Contributions  shall be made in cash; provided that, to
the  extent  Profit  Sharing,  Matching  or  Tax-Saver  Contributions  are to be
invested in the Company  Stock Fund,  the  Employers  may  contribute  shares of
Common  Stock  having  a fair  market  value  (determined  as of the  date  such
contributions  are to be allocated to the  Participants'  Accounts) equal to the
amount of the contributions so required. Shares so contributed may be authorized
but unissued shares, treasury shares, shares purchased for the purpose of making
such  contribution,  or  any  combination  of  the  foregoing.  The  Company  is
authorized to contribute cash or Common Stock to the Plan on behalf of any other
Employer,  and to the extent that the Company makes any such contribution,  such
Employer shall reimburse the Company therefor.

4.18  Time of  Payment  of  Profit  Sharing  Contribution.  All  Profit  Sharing
Contributions  shall be paid or  delivered by the Employer to the Trustee by the
due date (including  extensions) of the Employer's Federal income tax return for
its fiscal year to which such contributions relate.

4.19 Profits Not Required.  Each Employer  shall make all  contributions  to the
Plan without regard to current or accumulated earnings and profits.

                                       -16-
<PAGE>   18

                                   ARTICLE V

                             Limits on Contributions

5.1  Reduction of  Contribution  Rates.  To conform the operation of the Plan to
sections 401(a)(4),  401(k)(3),  401(m)(2), 402(g) and 415(c), the Committee may
establish  limits on  Tax-Saver  Contribution  rates  that may be elected by the
Participant, may unilaterally modify or revoke a Contribution Agreement, and may
reduce the rate of Matching Contributions (even to zero) payable with respect to
a Participant or group of Participants.

5.2 Limitations on Annual Additions. Notwithstanding any other provisions of the
Plan to the contrary,  a Participant's  Annual  Additions (as defined below) for
any Plan Year shall not exceed an amount equal to the lesser of:

     (a) $30,000 (as adjusted for cost-of-living  increased under section 415(d)
     of the Code); or

     (b) 25  percent of the  Participant's  Total  Earnings  for that Plan Year,
     calculated  as if  each  Section  415  Affiliate  (defined  below)  were an
     Affiliate,

reduced by any Annual  Additions for the Participant for the Plan Year under any
other  defined  contribution  plan of an Employer or an Affiliate or Section 415
Affiliate,  provided that, if any other such plan has a similar  provision,  the
reduction shall be pro rata. The term "Annual  Additions" means, with respect to
any Participant for any Plan Year, the sum of all  contributions  allocated to a
Participant's Accounts under the Plan for such year, excluding Rollovers and any
Tax-Saver Contributions that are distributed as excess deferrals,  but including
any  Tax-Saver  or Matching  Contributions  treated as excess  contributions  or
excess  aggregate  contributions  under  Sections  5.8 or 5.11.  The term Annual
Additions shall also include employer contributions allocated for a Plan Year to
any individual  medical  account (as defined in section 415(l) of the Code) of a
Participant and any amount  allocated for a Plan Year to the separate account of
a Participant  for payment of  post-retirement  medical  benefits under a funded
welfare benefit plan (as described in section 419A (d)(2) of the Code), which is
maintained  by the Employer or an Affiliate or Section 415  Affiliate.  "Section
415 Affiliate"  means any entity that would be a Controlled  Group Member if the
ownership  test of section  414 of the Code was "more than 50%"  rather than "at
least 80%".

5.3 Excess Annual Additions. If, as a result of a reasonable error in estimating
a Participant's Total Earnings,  a reasonable error in determining the amount of
Tax-Saver Contributions that may be made with respect to a Participant under the
limits of section 415 of the Code or such other mitigating  circumstances as the
Commissioner of Internal  Revenue shall  prescribe,  the Annual  Additions for a
Participant for a Plan Year exceed the limitations set forth in section 5.2, the
excess  amounts  shall be treated,  as necessary,  in  accordance  with Treasury
Regulations Section  1.415-6(b)(6)(ii),  after any Tax-Saver Contributions,  and
any income, losses, appreciation or depreciation attributable thereto, are first
returned  to the  Participant  to  reduce  the  excess  amount.  To  the  extent
applicable to the foregoing, reference to section 415(e)

                                      -17-
<PAGE>   19

of the Code under prior versions of this Plan or any other plan merged into this
Plan shall be disregarded effective January 1, 2000.

5.4 Limitation on Elective  Deferrals.  Notwithstanding  any other  provision of
this Plan, no Tax-Saver  Contributions  may be made on behalf of any Participant
for a Plan Year in an amount in excess of the elective  deferral  limit for that
Plan Year. A Participant's  Tax-Saver  Contributions  under Section 4.1 shall be
discontinued for the remainder of a Plan Year when, in the aggregate, they equal
the  elective  deferral  limit for such Plan Year.  For purposes of this Section
5.4, the "elective  deferral limit" means the maximum amount  permitted for that
Plan Year under section  402(g)(5) of the Code ($10,500 for the 2000 Plan Year),
reduced by the amount of elective  deferrals (as defined in section 402(g)(3) of
the Code) made by the  Participant  during that calendar year under any plans or
agreements  maintained  by an Employer or by an  Affiliate  other than this Plan
(and,  in the  sole  discretion  of  the  Committee,  any  plans  or  agreements
maintained by any other employer,  if reported to the Committee at such time and
in such manner as the Committee shall  prescribe).  The elective  deferral limit
with respect to a Participant  who has received a hardship  withdrawal  from his
Tax-Saver Contributions Account under this Plan as provided in Section 8.3, or a
hardship  withdrawal with respect to his elective deferrals under any other plan
or agreement of any Employer or  Affiliate,  for his taxable year  following the
taxable year of such withdrawal,  shall be reduced by the amount of the elective
deferrals  made by the  Participant  during the taxable  year of the  withdrawal
under this Plan and all such other plans and agreements. Each such other plan or
agreement  shall  be  deemed  amended  by  reason  of  this  provision  and  the
Participant's  execution of the Appropriate Form to the extent necessary to give
full effect to any reduction required under the preceding sentence.

5.5  Distribution  of Excess  Deferrals.  If the  elective  deferrals  made by a
Participant  during his  taxable  year  under  this Plan and any other  plans or
agreements  maintained by an Employer or Affiliate exceed the elective  deferral
limit,  the  excess  Tax-Saver  Contributions,  adjusted  for any income or loss
attributable to such Tax-Saver Contributions up to the date of distribution,  in
the sole discretion of the Committee,  may be distributed no later than April 15
of the following Plan Year. If the Participant's Tax-Saver Contributions Account
is invested in more than one Investment  Fund, such  distribution  shall be made
pro  rata,  to the  extent  practicable,  from all such  Investment  Funds.  Any
Matching Contributions made with respect to such excess Tax-Saver  Contributions
and allocated to his Matching  Contributions Account shall be forfeited and used
to reduce  Employer  contributions.  A Participant  also may request that excess
Tax-Saver  Contributions be distributed to him, by delivering a written claim to
the  Committee  by March 1 of the Plan Year of  distribution.  Such  claim  must
include (a) a statement that the  Participant's  elective deferral limit will be
exceeded unless the excess  Tax-Saver  Contributions  are distributed and (b) an
acknowledgement that any Matching Contributions made with respect to such excess
Tax-Saver Contributions and allocated to his Matching Contributions Account will
be forfeited.  The amount of excess deferrals to be distributed pursuant to this
Section  5.5 for a  taxable  year  will  be  reduced  by the  amount  of  Excess
Contributions  previously  distributed  with respect to such Participant for the
Plan Year beginning in such taxable year under Section 5.8.

5.6 Section 401(k) Limit on Tax-Saver Contributions. Notwithstanding anything in
this Plan to the contrary,  effective January 1, 1997,  Tax-Saver  Contributions
for any Plan Year for a  Participant  who is a Highly  Compensated  Employee for
such year shall be reduced if and to the extent deemed necessary or advisable by
the Committee in order that the Average Deferral

                                      -18-
<PAGE>   20

Percentage  (as  defined  in  Section  5.7)  for  Participants  who  are  Highly
Compensated  Employees  for that  Plan  Year  shall not  exceed  the  percentage
determined in the following  schedule,  based on the Average Deferral Percentage
for that Plan Year for all  Eligible  Employees  who are not Highly  Compensated
Employees for that Plan Year:

<TABLE>
<CAPTION>
Column 1                                     Column 2

Average Deferral Percentage                  Average Deferral
for Eligible Employees                       Percentage for Eligible
Who are Not Highly Compensated               Employees Who Are
Employees for the                            Highly Compensated
Plan Year                                    Employees for the Plan Year

<S>                                          <C>
(i)  Less than 2%                            (i)  Two (2) times the
                                             percentage in Column 1

(ii)  2% - 8%                                (ii) The percentage in Column
                                             1, plus 2%

(iii)  More than 8%                          (iii)  One and one-quarter
                                             (1-1/4) times the
                                             percentage in Column 1
</TABLE>

5.7 Determination of Average Deferral Percentages.  For purposes of Section 5.6,
the "Average Deferral  Percentage" for any group of individuals who are eligible
to enter into a  Contribution  Agreement  for a portion of a Plan Year means the
average of the  individual  ratios,  for each person in such  group,  of (a) his
Tax-Saver   Contributions   (and  Qualified   Non-Elective   Contributions,   if
applicable)  for the Plan Year to (b) his Total Earnings for such Plan Year. The
individual ratios, and the Average Deferral Percentage for any group of eligible
individuals,  shall be  calculated to the nearest  one-hundredth  of one percent
(0.01%).

5.8 Treatment of Excess  Tax-Saver  Contributions.  For purposes of this Section
5.8,  "Excess  Contributions"  means,  with  respect to any Plan Year,  a dollar
amount  equal  to  the  excess  of  (a)  the   aggregate   amount  of  Tax-Saver
Contributions  actually  paid  into the Plan on  behalf  of  Highly  Compensated
Employees  for  such  Plan  Year,  over  (b) the  maximum  amount  of  Tax-Saver
Contributions  permitted for such Plan Year under the  limitations  set forth in
Section 5.6, determined by reducing the deferral  percentages under the leveling
method  prescribed  in  applicable  Treasury  Regulations  and  calculating  the
aggregate  dollar  amount  of  lost  contributions  from  such  reductions.  The
aggregate amount of such lost  contributions  shall be the Excess  Contributions
for the Plan Year,  which  shall be  distributed  in cash to Highly  Compensated
Employees on the basis of the respective amounts of Tax-Saver Contributions (and
amounts  taken into account as Tax-Saver  Contributions)  made on their  behalf,
reducing the Highly  Compensated  Employee with the largest  amount of Tax-Saver
Contributions  first, and the next highest and so forth, until the entire amount
of such Excess  Contributions is distributed.  Excess  Contributions  for a Plan
Year with respect to any Highly  Compensated  Employee  shall be  distributed in
cash no later than March 15 of the following  Plan Year if possible,  and in any

                                      -19-
<PAGE>   21

event by the close of such  following  Plan Year. If the Accounts of an affected
Participant  are invested in more than one Investment  Fund,  such  distribution
shall be made pro rata,  to the  extent  practicable,  from all such  Investment
Funds.  The amount of Excess  Contributions  distributed to any such Participant
shall  be  adjusted  for  any  income  or  loss   attributable  to  such  Excess
Contributions up to the date of distribution. The amount of Excess Contributions
to be distributed for a Plan Year (determined  before  adjustment for any income
or loss  allocable  thereto)  shall be reduced by the amount of excess  elective
deferrals previously distributed pursuant to Section 5.5 for the same Plan Year.

5.9 Section  401(k)(3)  Testing for Collective  Bargaining Unit  Employees.  The
provisions of Sections 5.6, 5.7 and 5.8 shall be applied separately to employees
in any collective  bargaining  unit  participating  in the Plan. If employees in
more than one bargaining unit are eligible under the Plan, the Committee, in its
discretion,  may apply such  provisions  separately to each separate  collective
bargaining unit, on an aggregate basis with respect to all collective bargaining
units,  or  separately  with  respect  to such  collective  bargaining  units or
combinations of bargaining units as it determines,  provided that such treatment
is determined on a basis that is reasonable and reasonably  consistent from year
to year.

5.10 Section 401(m) Limit on Matching Contributions. Notwithstanding anything in
this Plan to the contrary, effective January 1, 1997, Matching Contributions for
any Plan Year for an  Eligible  Employee  who is a Highly  Compensated  Employee
shall  be  reduced  to the  extent  necessary  in order  that  the  Contribution
Percentage  (defined  in Section  5.11) for  Eligible  Employees  who are Highly
Compensated  Employees  for that  Plan  Year  does  not  exceed  the  percentage
determined in the following schedule,  based on the Contribution  Percentage for
the  Plan  Year  for all  Eligible  Employees  who are  not  Highly  Compensated
Employees:

<TABLE>
<CAPTION>
Column 1                                      Column 2

Contribution Percentage for Eligible          Contribution Percentage for Eligible
Employees Who Are Not Highly                  Employees Who Are Highly
Compensated Employees for the Plan Year       Compensated Employees for the Plan Year

<S>                                           <C>
(i) Less than 2%                              (i)  Two (2) times the percentage in Column 1

(ii)  2% - 8%                                 (ii)  The percentage in Column 1, plus 2%

(iii)  More than 8%                           (iii) One and one-quarter (1-1/4) times
                                              the percentage in Column 1
</TABLE>

The  foregoing  percentages  in Column 2 shall be  adjusted,  as  necessary,  to
satisfy the aggregate limit set forth in Section 5.13.

5.11 Determination and Correction of Excess Matching Contributions. For purposes
of Section 5.10, the Contribution  Percentage for any group of individuals means
the  average  of the  individual  ratios,  for each  person in such group who is
eligible to receive Matching

                                      -20-
<PAGE>   22

Contributions  during  the Plan  Year  and who is not  covered  by a  collective
bargaining  agreement,  of (a) his share of Matching  Contributions for the Plan
Year to (b) his Total  Earnings for the Plan Year.  For purposes of  calculating
part (a) of the Contribution  Percentage,  Qualified Non-Elective  Contributions
and  Tax-Saver  Contributions  may be taken  into  account  in  accordance  with
applicable  Treasury  Regulations to the extent such contributions are not taken
into account for  purposes of the Average  Deferral  Percentage  test of Section
5.6. The individual  ratios,  and the  Contribution  Percentage for any group of
eligible  individuals,  shall be calculated to the nearest  one-hundredth of one
percent  (0.01%).  If the Plan fails to meet the section  401(m) test for a Plan
Year. the total amount of excess Matching Contributions shall be determined, and
allocated to individuals within the Highly Compensated  Employee group using the
same two-part  leveling  methodology  as that  described in Section 5.8.  Excess
Matching  Contributions  shall be eliminated by (a) forfeiting such amounts that
are not vested or with respect to which the related Tax-Saver Contributions have
been  returned  under  Section  5.5 or Section  5.8,  or (b) if vested (and with
respect to which the Plan has retained the related Tax-Saver Contributions),  by
paying such  contributions  to the Participant in cash no later than March 15 of
the following Plan Year, if at all possible, and in any event, no later than the
close of the following  Plan Year. If any Account from which a  distribution  or
forfeiture  is to be made pursuant to this Section 5.11 is invested in more than
one Investment Fund, such  distribution or forfeiture shall be made pro rata, to
the extent  practicable,  from all such Investment  Funds.  The amount of excess
Matching Contributions distributed or forfeited under this Section 5.11 shall be
adjusted  for any  income  or  loss  through  to the  date  of  distribution  or
forfeiture.

5.12  Special  Testing  Rules.  The  following  rules  shall  apply to the tests
described in Sections 5.6 and 5.10.

     (a)  Separate  Testing  for  Early  Eligibles.  Effective  for  Plan  Years
     beginning  on or after  January 1,  1999,  if the  Company  elects to apply
     section  410(b)(4)(B) of the Code in determining whether the Plan meets the
     requirements  of  section  401(k)(3)(A)(i)  of the  Code,  the  Company  in
     determining  whether  the Plan meets the limits of Section 5.6 and 5.10 may
     exclude  from   consideration   Eligible   Employees   (other  than  Highly
     Compensated  Employees)  who have not yet met the  minimum  age and service
     requirements of Code section 410(a)(1)(A).

     (b) Multiple  Arrangements for Highly Compensated  Employees  Combined.  If
     more than one plan  providing  for a cash or deferred  arrangement,  or for
     matching  contributions,  or employee  contributions (within the meaning of
     sections 401(k) and 401(m) of the Code) is maintained by the Employer or an
     Affiliate,  the individual  ratios of any Highly  Compensated  Employee who
     participates in more than one such plan or arrangement  shall, for purposes
     of determining the Average Deferral  Percentage (as defined in Section 5.7)
     and Contribution  Percentage (as defined in Section 5.11), be determined as
     if all such arrangements were a single plan or arrangement.

     (c)  Aggregation  of Plans.  In the event  that  this  Plan  satisfies  the
     requirements  of section 410(b) of the Code only if aggregated  with one or
     more  other  plans,  then  Sections  5.6  and  5.10  shall  be  applied  by
     determining the Average Deferral Percentage and Contribution  Percentage of
     Eligible Participants as if all such plans were a single plan. Plans may be
     aggregated under this paragraph (c) only if they have the same plan year.

                                      -21-
<PAGE>   23

5.13  Aggregate  Limit Under  Section  401(m) of the Code.  For purposes of this
Article V, the Aggregate  Limit for any Plan Year shall mean a percentage  equal
to the greater of the sum described in (a) or (b) below:

     (a) The sum of:

          (i) 125 percent of the greater of (A) the Average Deferral  Percentage
     for the Plan Year for eligible  individuals who are not Highly  Compensated
     Employees for such year or (B) the Contribution Percentage for such year of
     such eligible individuals, and

          (ii) two  percent  plus the lesser of (i) (A) or (i) (B) above;  in no
     event,  however,  shall the amount determined under this clause (ii) exceed
     200 percent of the lesser of (A) or (B) above; or

     (b) The sum of:

          (i) 125 percent of the lesser of (A) the Average  Deferral  Percentage
     for the Applicable Plan Year for Eligible  Participants  who are not Highly
     Compensated Employees for such year or (B) the Contribution  Percentage for
     such year of such Eligible Participants, and

          (ii) two percent  plus the greater of (i) (A) or (i) (B) above;  in no
     event,  however,  shall the amount determined under this clause (ii) exceed
     200 percent of the greater of (i) (A) or (i) (B) above.

The  Aggregate  Limit shall be calculated  to the nearest  one-hundredth  of one
percent  (0.01%).  The  Aggregate  Limit  shall not apply to reduce  allocations
otherwise permissible for a Plan Year unless the Average Deferral Percentage and
the Contribution  Percentage for Eligible  Employees who are Highly  Compensated
Employees for the Plan Year each exceeds 125% of the  corresponding  percentages
determined for Eligible Employees who are not Highly  Compensated  Employees for
the Plan Year. In that event,  Tax-Saver  Contributions for Participants who are
Highly Compensated Employees for the Plan Year shall be further reduced in order
that the sum of the Average Deferral Percentage plus the Contribution Percentage
for Participants who are Highly Compensated Employees for the Plan Year does not
exceed the Aggregate Limit.

                                      -22-
<PAGE>   24

                                   ARTICLE VI

                          Accounts and Investment Funds

6.1  Accounts.  The  Committee  shall  cause  the  following  "Accounts"  to  be
maintained in the name of each Participant:

     (a) a "Profit  Sharing  Contributions  Account," which shall reflect Profit
     Sharing  Contributions,  if any, made on his behalf and the income, losses,
     appreciation,  depreciation  and  depreciation  and  expenses  attributable
     thereto;

     (b) a "Tax-Saver  Contributions  Account,"  which shall  reflect  Tax-Saver
     Contributions,  if  any,  made  on  his  behalf  and  the  income,  losses,
     appreciation, depreciation and expenses attributable thereto;

     (c) a  "Matching  Contributions  Account,"  which  shall  reflect  Matching
     Contributions  made on his behalf  and the  income,  losses,  appreciation,
     depreciation and expenses attributable thereto;

     (d) a "Qualified  Non-Elective  Contributions Account," which shall reflect
     Qualified Non-Elective  Contributions,  if any, made on his behalf, and the
     income,  losses,  appreciation,   depreciation  and  expenses  attributable
     thereto;

     (e) a "Rollover  Account," which shall reflect Rollover  Contributions,  if
     any, made by him and the income,  losses,  appreciation,  depreciation  and
     expenses attributable thereto;

     (f) a "Buy Back  Account",  which shall reflect any  previously-distributed
     amounts  returned by him upon his reemployment to avoid a forfeiture of the
     unvested portion of his Accounts in accordance with Section 7.5.

In  addition,  the  Committee  may  maintain  subaccounts  within the  Tax-Saver
Contributions Account to distinguish  contributions  eligible to be matched from
contributions  above the  matching  limit,  as well as  subaccounts  to  reflect
balances  transferred to this Plan from another  qualified plan that are subject
to special rules. The Accounts and subaccounts  provided for in this Section 6.1
shall be for  accounting  purposes  only,  and there shall be no  segregation of
assets within the Investment Funds among the separate Accounts. Reference to the
"balance" in a Participant's Accounts means the aggregate of the balances in the
subaccounts maintained in the Investment Funds attributable to those Accounts.

6.2  Allocation  of  Contributions.  Subject  to the  provisions  of  Article V,
contributions shall be allocated as follows:

     (a)  Tax-Saver  Contributions,   Matching  Contributions  contributed  with
     respect to payroll periods, Rollover Contributions and amounts paid back to
     avoid a forfeiture under Section 7.5 made on behalf of a Participant  shall
     be allocated to that Participant's

                                      -23-
<PAGE>   25

     appropriate  Accounts as of the Valuation Date coinciding with the paycheck
     or payment date to which such contribution relates.

     (b) Matching Contributions made with respect to a calendar quarter shall be
     allocated  as  of  the  last  day  of  that  quarter  and  Profit   Sharing
     Contributions  and  Qualified  Non-Elective  Contributions  for a Plan Year
     shall be allocated as of the last day of such Plan Year.

Notwithstanding the foregoing, unless the Committee establishes uniform rules to
the contrary, contributions made to the Plan shall share in the gains and losses
of the Investment Funds only when received by the Trustee with verified data.

6.3  Correction  of  Error.  In the  event of an error  in the  adjustment  of a
Participant's Account, the Committee,  in its sole discretion,  may correct such
error by either  crediting  or  charging  the  adjustment  required to make such
correction  to or against  income and expenses of the Trust for the Plan Year in
which the correction is made or the Employer may make an additional contribution
to permit  correction of the error. No Participant  shall have a vested right to
any amounts  erroneously  credited to his  Accounts.  Except as provided in this
Section  6.3 the  Accounts  of other  Participants  shall not be  readjusted  on
account of such error.

6.4 Statement of Plan  Interest.  As soon as  practicable  after the last day of
each Plan Year and at such other  intervals as the Committee may determine,  the
Committee  shall  provide  each  Participant  with a  statement  reflecting  the
balances of his Accounts.  Each  Participant  is  responsible  for reviewing his
statement  and any  Participant  who  discovers  an error  shall bring it to the
attention of the  Committee  within 90 days of receipt of his  statement;  after
such 90 days the  Participant  shall be deemed to have confirmed the accuracy of
the statement unless he has so notified the Committee of an error.

6.5 Investment  Funds.  The Committee  shall  establish and cause the Trustee to
maintain  one or more  "Investment  Funds"  or  "Funds"  for the  investment  of
Participants'  Accounts.  The  Committee in its  discretion  may add  additional
Investment  Funds,  may delete any Investment  Fund or may change the investment
strategy or categories of permitted  investments of any Investment  Plan without
prior notice to  Participants.  One of the Investment  Funds shall be a "Company
Stock  Fund"  invested  in Common  Stock and cash or cash  equivalents  held for
liquidity purposes.

6.6  Investment  Fund  Accounting.  The Committee  shall maintain or cause to be
maintained  separate  subaccounts for each Participant in each of the Investment
Funds to  separately  reflect his  interest in each such Fund and the portion of
such interest that is attributable to each of his Accounts. The Committee, in it
sole  discretion,  may  establish  uniform rules for reporting the value of each
Participant's interest in an Investment Fund that has the effect of blending the
value of the cash or cash  equivalents  that comprise part of that Fund with the
value of the  securities in which the Fund is primarily  invested,  as in "unit"
accounting.

6.7 Allocation of Fund Earnings and Changes in Value. As of each Valuation Date,
interest,  dividends and changes in value and expenses of each  Investment  Fund
since the  preceding  Valuation  Date shall be allocated  to each  Participant's
subaccounts invested in such Investment Fund by adjusting upward or downward the
balance of his subaccounts invested in

                                      -24-
<PAGE>   26

such  Investment  Fund in the ratio which the  subaccounts  of such  Participant
invested in such  Investment  Fund bears to the total of the  subaccounts of all
Participants  invested  in  such  Investment  Fund as of  such  Valuation  Date,
excluding  therefrom,  for  purposes of this  allocation  only,  all  Tax-Saver,
Matching, Profit Sharing,  Qualified Non-Elective and Rollover Contributions and
amounts paid into Buy Back Accounts received since the preceding Valuation Date,
so that the total of the subaccounts of all Participants in each Investment Fund
shall equal the total value of such fund  (exclusive of such  contributions)  as
determined by the Trustee in  accordance  with uniform  procedures  consistently
applied.

     The Plan shall use a daily  valuation  system,  which  generally shall mean
that  Accounts  will be updated each  business day to reflect  activity for that
day, such as new contributions received by the Trustee, changes in Participant's
investment elections, and changes in the value of the Investment Funds under the
Plan.  Such daily  valuation  shall be  dependent  upon the Plan's  Recordkeeper
receiving complete and accurate  information from a variety of different sources
on a timely  basis.  Since events may occur that cause an  interruption  in this
process, affecting a single Participant or a group of Participants,  there shall
be no guarantee by the Plan that any given  transaction will be processed on the
anticipated day. In the event of any such interruption, any affected transaction
shall be processed as soon as administratively  feasible and no attempt shall be
made to reconstruct  events as they would have occurred absent the interruption,
regardless of the cause, unless the Committee in its sole discretion directs the
Plan's Recordkeeper to do so.

6.8  Investment  Fund  Elections.  A Participant  may specify the  percentage of
contributions  subsequently  credited to his Accounts that are to be invested in
each of the Investment Funds in accordance with uniform rules established by the
Committee.  Any such  investment  direction  shall be deemed to be a  continuing
direction until changed by the  Participant.  During any period in which no such
direction has been given in accordance with rules  established by the Committee,
contributions  credited to a  Participant  shall be  invested in the  Investment
Funds as determined by the  Committee.  A Participant  may modify his investment
direction  prospectively  by  making  a new  investment  election  prior  to the
effective time of the change in accordance with uniform rules established by the
Committee, which rules may be modified from time to time without prior notice.

     The Plan is intended to satisfy the requirements of section 404(c) of ERISA
with respect to Participant's  investment elections.  To the extent permitted by
law, neither the Company, any Employer, the Committee, the Trustee nor any other
fiduciary  of  the  Plan  shall  be  liable  for  any  loss   resulting  from  a
Participant's exercise of his right to direct the investment of his Accounts.

6.9 Transfers Between Investment Funds.  Subject to uniform rules established by
the Committee,  each Participant may elect to transfer the value of his Accounts
held in any Investment Fund to any other  Investment Fund then made available to
such Participant.  Any such election shall be made prior to the time it is to be
effective in accordance  with uniform rules  established by the  Committee.  The
Committee  may change any such  investment  election  rules at any time  without
prior notice to Participants.

                                      -25-
<PAGE>   27

6.10 Liquidity.  In order to accommodate  investment changes and other elections
by Participants in a timely manner,  a certain portion of each of the Investment
Funds may be held in cash or cash equivalents.  The percentage of assets held in
each  Investment  Fund in cash or cash  equivalents may differ from Fund to Fund
and from  time to time,  as  considered  appropriate  by the  Committee  (or its
delegate).  The rate of return of each  Investment Fund will be a combination of
the short term  earnings  (or  losses)  on the cash  portion of the Fund and the
earnings (or losses) of the  securities or other  investments in which such Fund
is primarily  invested,  determined in accordance with uniform rules established
by the Committee (or its delegate).

6.11 Voting and Tendering of Common Stock.  Notwithstanding any other provisions
of the Plan:

     (a)  Effective  January 1, 1999,  Common Stock held by the Trustee shall be
     voted as follows:

          (i)  Before  each  meeting  of  the   Company's   shareholders,   each
     Participant  shall be  furnished  with a proxy  statement  for the meeting,
     together  with an  appropriate  form on which the  Participant  may provide
     voting instructions  (including instruction on matters not specified in the
     proxy  statement  which may come before the  meeting)  for the Common Stock
     allocated to the  Participant's  Accounts  under the Plan on the  Valuation
     Date coinciding with or next preceding the record date for such meeting for
     which  the  number  of  such   shares  has  been   provided   to  the  Plan
     administrator.  Upon timely receipt of such instructions, such shares shall
     be voted as instructed.

          (ii) Common Stock for which the Trustee does not receive timely voting
     directions  shall be voted in the same  proportion as all Common Stock held
     under the Plan  (including  shares  held in a  separate  trust  fund)  with
     respect to which directions are received by the Trustee.

     (b) Tender and  exchange  rights with  respect to Common  Stock held by the
     Trustee shall be exercised as follows:

          (i) Each Participant shall be furnished with a notice of any tender or
     exchange offer for, or a request or invitation for tender of, Common Stock,
     together with an appropriate  form on which such  Participant  may instruct
     the  Trustee  with  respect  to the  tender or  exchange  of  Common  Stock
     allocated  to his  Accounts.  Common  Stock as to  which  the  Trustee  has
     received timely  instructions  shall be tendered or exchanged in accordance
     with such instructions.

          (ii)  Common  Stock  allocated  to  Participant's  Accounts  for which
     instructions are not timely received shall not be tendered or exchanged.

     (c) The Committee and the Trustee shall take all reasonable steps necessary
     to  assure  that   Participants'   individual   directions   shall   remain
     confidential. Notwithstanding the foregoing, the Trustee shall provide such
     information  with  respect to the tender or exchange of Common Stock as the
     Recordkeeper  may require for  operation of the Plan,  if the  Recordkeeper
     agrees to keep such information confidential. The Trustee shall

                                      -26-
<PAGE>   28

     execute such ballots,  proxies or other  instruments as may be necessary or
     desirable in order to effectuate the provisions of this Section 6.11.

6.12  Allocation  Shall Not Vest  Title.  The fact that  allocation  is made and
amounts  credited  to the  Accounts  of a  Participant  shall  not  vest in such
Participant any right, title or interest in and to any assets except at the time
or times and upon the terms and conditions expressly set forth in this Plan, nor
shall the Trustee be required to  segregate  physically  the assets of the Trust
Fund by reason thereof.

6.13 Committee  Modifications.  Notwithstanding the preceding provisions of this
Article VI, the  Committee may in its sole  discretion:  (a) limit or restrict a
Participant's  ability  to  change  the  allocation  of his  Accounts  among the
Investment  Funds and/or to designate  the  allocation  of future  contributions
among the Investment  Funds, in order to conform to the practices and provisions
of any  investment  media  held in any such  Investment  Fund;  and (b) vary the
procedure   otherwise   provided   for  in  this  Article  VI  relating  to  the
determination  and  allocation  of the  investment  return  among  Participants'
Accounts,  in order to facilitate the administration of the Plan on an equitable
and practicable basis.

                                      -27-
<PAGE>   29

                                  ARTICLE VII

                                     Vesting

7.1 Matching and Profit  Sharing  Contributions.  A  Participant's  Matching and
Profit  Sharing  Contributions  Accounts  shall  vest  in  accordance  with  the
schedules set forth below.

     (a)  Each  Participant's  Matching  Contributions  Account  shall  vest  in
     accordance with the following:

<TABLE>
<CAPTION>
          Years of Vesting Service                           Vested Percentage

<S>                                                         <C>
          Less than 2                                            0%

          2                                                    20%

          3                                                    40%

          4                                                    60%

          5                                                    80%

          6                                                  100%
</TABLE>

     (b)  Subject to  paragraph  (c) below,  the  Profit  Sharing  Contributions
     Accounts of Participants credited with an Hour of Service before January 1,
     1997 shall vest in accordance with the following:

<TABLE>
<CAPTION>
          Years of Vesting Service                           Vested Percentage

<S>                                                          <C>
          Less than 2                                        0 percent

          2                                                  20 percent
          3                                                  40 percent
          4                                                  60 percent
          5                                                  80 percent
          6                                                  100 percent
</TABLE>

     (c) The Profit  Sharing  Contributions  Accounts for  Participants  who are
     credited  with their first Hour of Service on or after  January 1, 1997, or
     who had an Hour of Service

                                      -28-
<PAGE>   30

     before such date but had ceased earning  vesting service prior to such date
     and had no vested interest under paragraph (b) as of such date,  shall vest
     as follows:

<TABLE>
<CAPTION>
         Years of Vesting Service                            Vested Percentage

<S>                                                          <C>
         Less than 5                                         0 percent

         5                                                   100 percent
</TABLE>

7.2  Tax-Saver,  Qualified  Non-Elective,  Buy Back and  Rollover  Contributions
Accounts. A Participant's interest in his Tax-Saver, Qualified Non-Elective, Buy
Back  and   Rollover   Contributions   Accounts   shall  be  fully   vested  and
nonforfeitable at all times.

7.3  Accelerated  Vesting.  Notwithstanding  the  foregoing  provisions  of this
Article VII, a Participant shall have a fully vested, nonforfeitable interest in
all of his  Accounts if, while  employed by the Company and its  Affiliates,  he
attains his Normal  Retirement  Date, dies or incurs a Disability.  In addition,
the  Accounts  of  all  affected   employees   shall  become  fully  vested  and
nonforfeitable  in the  event of the  Plan's  termination  (in  accordance  with
Section 13.3),  partial  termination  (in accordance  with  applicable  Treasury
Regulations) or the complete  discontinuance  of Employer  contributions  to the
Plan.

7.4  Forfeitures.  If a  Participant's  employment  with  the  Company  and  its
affiliates   terminates   before  he  is  100%  vested  in  his  Profit  Sharing
Contributions  Account and/or  Matching  Contributions  Account,  the non-vested
portions of his Profit  Sharing and  Matching  Contributions  Accounts  shall be
forfeited as of the Valuation Date coincident with or next following the earlier
of the day as of which he receives (or is deemed to receive) the vested  portion
of his  Accounts  or the day he  incurs  five  consecutive  One Year  Breaks  in
Service.  For purposes of the foregoing,  if a Participant's  vested interest in
his  Accounts  has a value of zero,  the  Participant  shall be  deemed  to have
received  a single  sum  distribution  of such  zero  vested  interest  upon his
Termination Date.

7.5 Restoration of Forfeiture and Buy Back Requirement. If a Participant who has
forfeited  the  non-vested   portion  of  his  Profit  Sharing  and/or  Matching
Contributions  Accounts is  reemployed  by the Company or one of its  Affiliates
before he incurs  five  consecutive  One Year  Breaks in  Service,  the  amounts
forfeited  shall be restored to his Profit  Sharing and  Matching  Contributions
Accounts as soon as administratively practicable after his reemployment date, if
the  Participant  repays the full amount of the  distribution to the Plan (other
than the  portion,  if any,  attributable  to his Rollover  Account)  before the
earlier  of (a) five  years  after the first  date on which the  Participant  is
reemployed  or (b) the date the  Participant  incurs five  consecutive  One Year
Breaks in Service following the date of distribution.

     The vested amount repaid by the Participant upon his reemployment  pursuant
to this  Section 7.5 shall be credited  to a Buy Back  Account in his name,  his
interest in which shall always remain 100% vested and nonforfeitable.

     The  restoration of the non-vested  portion of his Accounts shall be funded
by forfeitures,  and to the extent  forfeitures are inadequate for this purpose,
by a special contribution

                                      -29-
<PAGE>   31

which his Employer shall be required to make for this purpose (without regard to
the otherwise applicable limitations of the Plan).

7.6  Subaccount for Restored  Amount.  Any portion of a  Participant's  Matching
Contributions  Account or Profit Sharing Contributions Account which is restored
pursuant to Section 7.5 after being  contingently  forfeited shall be maintained
in a special  subaccount  within his  Matching  Contributions  Account or Profit
Sharing   Contributions   Account,  as  applicable.   In  order  to  prevent  an
acceleration of vesting in such a Participant's  Matching  Contributions Account
or  Profit  Sharing  Contributions  Account,  the  vested  portion  of any  such
subaccount as of any subsequent time shall be expressed by the formula:

                                    P(A+D)-D

where P is the Participant's  vested percentage at such time determined  without
regard to this sentence,  A is the amount in such subaccount at such time, and D
is the amount of any  distribution  or partial  distribution  previously made to
him.

7.7  Application of  Forfeitures.  All  forfeitures  however  occurring shall be
applied  first to restore  previously  forfeited  amounts as provided in Section
7.5, and to the extent not needed for this purpose,  to reduce  future  Employer
contributions to the Plan.

                                      -30-
<PAGE>   32

                                  ARTICLE VIII

                     Withdrawals and Loans During Employment

8.1 Withdrawals At Age 59 1/2. Except as provided in Sections 8.2 and 8.3, there
shall be no withdrawals of amounts  credited to a  Participant's  Accounts under
the Plan while a Participant remains employed by the Company and its Affiliates,
until the  Participant  attains age 59 1/2, at which time he may withdraw all or
any portion of the vested balance of his Accounts for any reason.

8.2 Withdrawal from Rollover Account. A Participant may elect to withdraw all or
a portion of his Rollover  Account at any time, but no more frequently than once
in any Plan Year.

8.3  Hardship  Withdrawals.  Subject to the further  provisions  of this Article
VIII,  if a  Participant  has not  yet  attained  age 59 1/2 and he has  already
received all other amounts available to him as a withdrawal under Section 8.2 or
as a loan  under  Section  8.7,  the  Participant  may elect to make a  hardship
withdrawal  from his remaining  Accounts  (excluding  any loan  balances) in the
following  amounts  and  order of  priority:  (a) all or a part of his  Buy-Back
Account,  (b) if his Buy-Back  Account has been exhausted,  all or a part of the
vested portion of his Matching  Contributions Account; (c) if the vested portion
of his Matching  Contributions Account has been exhausted,  all or a part of the
vested  portion  of his Profit  Sharing  Contributions  Account;  and (d) if the
vested portion of his Profit Sharing  Contributions  Account has been exhausted,
all  or  some  of  his  Tax-Saver   Contributions   and  any  earnings  on  such
contributions  credited to his Accounts  before 1989. No amount  attributable to
Qualified Non-Elective Contributions may be withdrawn under this Section 8.3.

8.4 Hardship Defined. To qualify as a "hardship" withdrawal, the withdrawal must
be necessary to satisfy one or more of the following needs:

     (a)  medical  expenses  previously  incurred  by  the  Participant,  or the
     Participant's  spouse or dependents (as defined in section 152 of the Code)
     or expenses  necessary  in order for such  persons to obtain  medical  care
     described  in  section  213(d) of the Code  (which  expenses  will never be
     covered by insurance);

     (b) tuition  payments,  related  educational  fees (not including books and
     supplies),  and  room  and  board  expenses,  for  the  next 12  months  of
     post-secondary  education of a Participant or a Participant's spouse, child
     or dependent (as defined in section 152 of the Code);

     (c) costs (other than mortgage  payments)  directly related to the purchase
     of the principal residence of a Participant;

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

     (e) such other expense as the Secretary of Treasury indicates  qualifies as
     a hardship in Treasury Regulations.

                                      -31-
<PAGE>   33

In  addition,  a  withdrawal  will not be  considered  to be made on  account of
hardship unless it is necessary to meet the condition of hardship affecting such
Participant.  Before allowing a hardship withdrawal, the Committee shall require
a Participant  to first take all other  amounts  available to him as a loan or a
distribution  other than on account of  hardship as herein  defined,  under this
Plan and all other plans maintained by any Employer or Affiliate.  A Participant
making a hardship  withdrawal  shall be subject to the mandatory  suspension and
limitation adjustment of Sections 4.6 and 5.4. A withdrawal made pursuant to the
foregoing  restrictions  and  penalties  shall  be  deemed  to be  necessary  to
alleviate the Participant's condition of hardship.

8.5 Vesting Adjusted to Reflect Withdrawals. Notwithstanding any other provision
of this  Plan,  in the event  that a  Participant  makes a  withdrawal  from his
Matching Contributions Account or Profit Sharing Contributions Account at a time
when  he is  less  than  100%  vested  in such  Account,  and if his  employment
subsequently  terminates (or he requests another withdrawal  therefrom) prior to
the time his interest in such Account is 100% vested, such Participant's  vested
interest  in  his  Matching   Contributions   Account   and/or  Profit   Sharing
Contributions  Account  shall be adjusted to reflect  such prior  withdrawal  in
accordance with the principles  applicable to restored subaccounts under Section
7.6, in order to avoid an acceleration of vesting in his Matching  Contributions
Account or Profit Sharing Contributions Account.

8.6 Withdrawal  Payment.  A withdrawal  request under Section 8.2 or Section 8.3
shall be made by filing the  Appropriate  Form with the  Committee,  within such
time as the Committee may prescribe. The withdrawal shall be effective as of the
Valuation Date on which the  Recordkeeper  processes the withdrawal and, subject
to obtaining such consents and waivers as the Committee  considers  necessary to
comply with applicable  Treasury  Regulations,  payment of the withdrawn  amount
shall be made on or as soon as administratively practicable after such Valuation
Date.  The  Appropriate  Form with  respect  to a hardship  withdrawal  from his
Tax-Saver   Contributions  Account  shall  include  an  acknowledgement  of  the
mandatory suspension of contributions described in Section 4.6, and to a similar
suspension of "elective deferrals" (as defined in section 402(g)(3) of the Code)
and of  employee  contributions  under  this Plan and each other  qualified  and
nonqualified  plan  of  deferred  compensation   (excluding  mandatory  employee
contributions under any defined benefit plan), or stock option,  stock purchase,
or similar plans,  of any Employer or Affiliate  until the first  anniversary of
the date of such withdrawal,  and to the adjustment  described in Section 5.4 of
the  "elective  deferral  limit" with  respect to the  Participant  for the year
following  the year of the  withdrawal.  Each such  other  plan  shall be deemed
amended  by reason of this  provision  and the  Participant's  execution  of the
Appropriate  Form to the extent necessary to give full effect to such agreement.
A  Participant  may  direct on the  Appropriate  Form,  at such time and in such
manner as the  Committee may  prescribe  and subject to Committee  consent,  the
proportions in which any withdrawal  from his Accounts  pursuant to this Article
VIII shall be allocated  among the Investment  Funds;  failing such direction or
consent, the allocation shall be made pro rata.

8.7 Loans.  A Participant  who is a "party in interest" with respect to the Plan
(within  the  meaning of section  3(14) of  ERISA),  may borrow  from the vested
balance of his Accounts,  subject to such uniform  rules as the Committee  shall
establish  from time to time.  No more than one loan may be  outstanding  at the
same time. The loan request shall be made on the Appropriate  Form and submitted
to the  Recordkeeper  together  with such  application  fee as the Committee may
authorize (if any). The Recordkeeper shall notify the Participant in writing

                                      -32-
<PAGE>   34

within a  reasonable  time of the approval or denial of such loan  request,  and
such  notification by the Recordkeeper  shall be final. The Committee may at any
time  suspend  authorization  for  future  loans  to  Participants,  but no such
suspension shall affect any loan then outstanding under this Section 8.7.

8.8 Loan  Requirements.  A loan  pursuant  to Section 8.7 shall not be made to a
Participant unless such loan meets all of the following requirements:

     (a)  Amount.  Such loan must be in an amount of not less than one  thousand
     dollars  ($1,000),  and shall not exceed  the lowest of (i) fifty  thousand
     dollars  ($50,000),  (ii)  one-half  of the  fully  vested  balance  of the
     Participant's  Accounts, or (iii) such other amount as may be determined by
     the Committee in the event that the Participant's Accounts are invested (in
     whole or in part) in an Investment  Fund that restricts the  liquidation of
     investments to fund Participant  loans or otherwise.  The limitations under
     each of clause  (i) and (ii)  above  shall be  reduced  by the  outstanding
     balance (if any) of all other loans to the  Participant  from any qualified
     plan (within the meaning of Section  401(a) of the Code  maintained  by the
     Company or any Affiliate.  The fifty thousand  dollars  ($50,000) in clause
     (i) above shall be further  reduced by the  excess,  if any, of the highest
     outstanding  loan balance of all loans described in the preceding  sentence
     during  the  twelve  (12)  month  period   preceding  the  loan,  over  the
     outstanding loan balance of all loans described in the preceding  sentence.
     If any  outstanding  balance of a loan from  another plan is required to be
     taken  into  account  under  clause  (i) or (ii)  above,  the  value of the
     Participant's  interest under that plan from which such loan was made shall
     also be taken into account under clause (ii) above.

     (b)  Adequate  Security.  Such  loan  must  be  adequately  secured  by the
     assignment, as collateral security, of the value of the Participant's fully
     vested Accounts. If the Loan Administrator subsequently determines that the
     loan is no longer adequately secured, he may require additional security in
     such form as he deems acceptable.

     (c) Interest. Such loan must bear interest,  payable at quarterly intervals
     (or more frequent  intervals,  if the Recordkeeper shall so require),  at a
     rate  commensurate  with the  interest  rates  charged  by  persons  in the
     business  of lending  money for loans  which  would be made  under  similar
     circumstances.  The  Recordkeeper  shall at regular  intervals (but no less
     frequently than quarterly)  determine such rate on the basis of a review of
     pertinent information.

     (d)  Repayment  Term.  Such  loan  must  provide  for  substantially  level
     amortization  (within the meaning of section  72(p)(2)(C) of the Code) with
     payments  made at least  quarterly  for a period  no  longer  than five (5)
     years.  If a  Participant  terminates  employment  with the  Employers  and
     Affiliates,  his loan  shall  accelerate  and  become  immediately  due and
     payable as of the Participant's Termination Date.

                                      -33-
<PAGE>   35

     Notwithstanding the foregoing, a Participant shall have the right to prepay
     the full outstanding  balance of his loan without penalty, on the first day
     of any calendar  quarter or such other  Valuation Date as the Committee may
     direct.

     (e)  Promissory  Note.  Such loan must be evidenced  by a  promissory  note
     executed  by the  Participant  and, if the  Recordkeeper  shall in his sole
     discretion determine,  also executed by the Participant's spouse. Such note
     shall provide that if the Participant is actively  employed by an Employer,
     the loan is to be repaid  by  regular  deductions  from his pay in each pay
     period in which the loan is  outstanding,  and shall contain such terms and
     provisions as the Recordkeeper in his sole discretion shall determine.

8.9 Valuation for Loan  Processing.  The Recordkeeper  will generally  process a
loan  based on the  Valuation  Date  immediately  preceding  receipt of the loan
request,  provided  that the portion of the  Participant's  Accounts that may be
borrowed  pursuant to paragraph  8.8(a) shall be fixed as of the Valuation  Date
coinciding  with the date the loan  distribution  is actually  processed  by the
Recordkeeper.

8.10 Funding of Participant  Loans. A Participant's  loan shall be funded solely
by reduction of the  Participant's  Account balances as of the effective date of
the  loan.  Such  reduction  shall  affect  the  Participant's  Accounts  in the
following  order:  (a) Rollover Account (if any); (b) Buy Back Account (if any);
(c) Matching Contributions Account; (d) Profit Sharing Contributions Account and
(e) Tax-Saver  Contributions  Account.  The promissory note executed pursuant to
paragraph  8.8(c) by a  Participant  who  receives  a loan  shall be held by the
Trustee as a Trust asset and allocated solely to such Participant's Account. For
all purposes hereunder, the value of such promissory note shall be considered to
be the outstanding  unpaid balance of the note. A loan to a Participant shall be
his individual directed investment.

8.11 Allocation of Loan Among  Investment  Funds. If a Participant's  Account is
invested in more than one  Investment  Fund, the loan proceeds shall be obtained
from each Investment Fund pro rata in accordance with uniform rules  established
by the Committee.

8.12 Loan Repayment.  Payments of principal and interest on a Participant's loan
shall be used to restore the Participant's Accounts from which the loan was made
in the following order: (a) Tax-Saver  Contributions Account; (b) Profit Sharing
Contributions Account (c) Matching  Contributions Account; (d) Buy-Back Account;
and (e) Rollover  Account.  Such payments shall be allocated to such  Investment
Funds as the Participant  shall have designated for future  contributions.  If a
Participant fails to give timely and complete  instructions as to the allocation
among Investment  Funds, the payment of principal and interest shall be invested
in such Investment Fund or Funds as the Committee may direct.

8.13 Loan Expenses.  The Recordkeeper may determine to charge any fees, taxes or
other expenses (including,  without limitation,  any asset liquidation charge or
similar  extraordinary  expense)  incurred  in  connection  with a  loan  to the
Accounts of the  Participant  obtaining such loan. Such charges shall be imposed
on a uniform and nondiscriminatory basis.

8.14 Disposition of Loan Upon Certain Events.  In the event that distribution of
a  Participant's  Accounts  is to be made under the terms of the Plan before the
Participant repays an

                                      -34-
<PAGE>   36

outstanding  loan,  the  Trustee  shall  reduce  the value of the  Participant's
Accounts by the amount of the  Participant's  outstanding  loan before  making a
distribution to the Participant or his Beneficiary.

8.15 Compliance with Applicable Law. The Recordkeeper shall take such actions as
he may deem  appropriate in order to assure full  compliance with all applicable
laws and  regulations  relating  to  Participants  loans  and the  granting  and
repayment thereof.

8.16 Loan Default.  A loan made pursuant to Section 8.7 shall be in default if a
scheduled  payment of principal or interest is not received by the  Recordkeeper
by the end of the calendar  quarter  following  the quarter in which the payment
was due.  Notwithstanding the foregoing, a Participant who terminates employment
with the Company and its  Affiliates  must repay the entire balance of his loans
within 30 days of his  termination of employment to avoid a default,  whether or
not such  Participant is receiving an actual  distribution  of any other part of
his Account in connection with such  termination.  Upon default of the loan, the
entire  outstanding  principal  amount and  accrued  interest  of the loan shall
become  immediately  due and  payable,  and the  Plan may  execute  upon the its
security interest in the Participant's  Accounts to satisfy the debt;  provided,
however,  that the execution  shall occur only when, and to the extent that, the
Participant's  Accounts become distributable to the Participant  consistent with
the requirements for qualification of the Plan under section 401(a) of the Code.
Furthermore,  the  Committee may take any other action it deems  appropriate  to
obtain  payment of the  outstanding  amount of principal  and accrued  interest,
which may include  accepting  payments of principal  and interest  that were not
made on  schedule  and  permitting  the loan to  remain  outstanding  under  its
original  payment  schedule.  Any costs incurred by the Plan in  collecting,  or
attempting  to  collect,  amounts  in  default  shall  be  charged  against  the
Participant's Accounts.

                                      -35-
<PAGE>   37

                                   ARTICLE IX

          Distributions to Participants After Termination of Employment

9.1  Distributions  to  Participants  After  Termination of  Employment.  When a
Participant's  Termination Date occurs (for a reason other than his death),  his
Accounts  shall be distributed  in accordance  with the following  provisions of
this Section 9.1,  unless the  Participant  is  reemployed  by the Company or an
Affiliate before such distribution is processed.

     (a) Effective January 1, 1998, if the value of the  Participant's  Accounts
     does not exceed  $5,000,  his Accounts will be distributed to him in a lump
     sum  payment  as soon as  practicable  after  the  Plan's  Recordkeeper  is
     notified of his  termination  of  employment.  Whether this  paragraph  (a)
     applies  and  the  amount  of the  payment  to be  made  hereunder  will be
     determined as of the Valuation Date coinciding with the date the payment is
     processed.

     (b)  If the  value  of  the  Participant's  Accounts  exceeds  $5,000,  the
     Participant may withdraw his Accounts on the Distribution  Date (as defined
     in  paragraph  (c) below) he elects,  in either of the  following  forms of
     payment he selects: (i) a lump sum or (ii) monthly, quarterly,  semi-annual
     or annual  installments (to be as nearly equal as practicable) for a period
     not to exceed his life  expectancy or the joint life  expectancy of himself
     and his Beneficiary.

     (c) A "Distribution Date" shall mean the date as of which a payment is made
     to the  Participant  pursuant to this  Section 9.1,  without  regard to any
     administrative  delay. A Participant may elect that his  Distribution  Date
     occur as soon as practicable after his Termination Date or on any Valuation
     Date thereafter, but not later than the April 1 following the year in which
     he attains age 70 1/2,  provided that no election of Distribution Date will
     be valid if it is made more than 90 days prior to such date.

Any election under  paragraph (b) or (c) above shall be modified,  as necessary,
to conform to Section 9.11.

9.2 Distribution  Only Upon Separation From Service.  Notwithstanding  any other
provision  of  the  Plan  to  the  contrary,  a  Participant  may  not  commence
distribution  of the  portion of this  Accounts  attributable  to his  Tax-Saver
Contributions  pursuant  to this  Article IX prior to the date he attains age 59
1/2 or becomes  Disabled,  even though his  employment  with the Company and its
Affiliates  has  terminated,  unless  or until he also  has a  "separation  from
service"  within the meaning of section  401(k)(2)(B) of the Code. The foregoing
restriction  shall not  apply,  however,  if the  Participant's  termination  of
employment  occurs in  connection  with either (a) the sale by the Company or an
Employer to an unrelated corporation of at least 85% of the assets of a trade or
business or (b) the  disposition of its interest in a subsidiary to an unrelated
person or  persons,  and the  requirements  for  distribution  under  applicable
Treasury Regulations on account of such sale or disposition are met.

                                      -36-
<PAGE>   38

9.3 Form of Payment.  Distributions from the Company Stock Fund shall be made in
cash unless the  Participant  elects to have all or a portion of his interest in
such fund  distributed in shares of Common Stock.  Distributions  from the other
Investment Funds shall be made in cash, unless the Participant  elects that some
or all of the balances of such funds be  transferred  to the Company  Stock Fund
and  distributed  in shares of Common Stock in  accordance  with  uniform  rules
established by the Committee.

9.4 Direct Rollover Option.  In accordance with uniform rules established by the
Committee,  each  Participant,  surviving  spouse of a Participant  or alternate
payee under a qualified  domestic  relations order within the meaning of section
414(p) of the Code who is due to receive an eligible rollover  distribution from
the  Plan  may  direct  the  Trustee  to  transfer  all  or a  portion  of  such
distribution  directly to another eligible retirement plan. For purposes of this
Section 9.4, the terms "eligible rollover distribution" and "eligible retirement
plan" as applied to any such  individual  shall have the meaning  accorded  such
terms under section 401(a)(31) of the Code (or any successor  provision thereto)
and applicable regulations thereunder.

9.5 Put Option. If Common Stock acquired by the Plan, when  distributed,  is not
readily  tradable on an established  market,  a Participant who is entitled to a
distribution  of such stock  shall have the right to  require  that the  Company
repurchase it under a fair valuation  formula in compliance  with any applicable
regulations. Such put option shall be exercisable for a period of at least sixty
(60) days following the date of  distribution  of such Common Stock,  and if the
put option is not exercised within such sixty (60) day period, for an additional
period of at least  sixty (60) days in the  following  Plan Year as  provided in
applicable  regulations.  The Company  shall make full  payment of the  purchase
price for Common  Stock  which is the  subject of a put option  that is properly
exercised by a Participant  within 30 days after the  Participant  surrenders to
the Company  certificates  representing  such  Common  Stock,  duly  endorsed or
accompanied  by a stock power duly  executed,  in either case with his signature
duly guaranteed, and accompanied by all required stock transfer stamps; provided
that,  in the  event the  shares  put to the  Company  were  distributed  to the
Participant as part of a total distribution,  the Company may elect to make such
payment in  substantially  equal  annual  installments  over a period  beginning
within 30 days after the date the put option is exercised and not exceeding five
years if the Company provides adequate  security and pays a reasonable  interest
rate with respect thereto.

9.6 Facility of Payment. Notwithstanding the provisions of Sections 9.1 or 10.1,
if in the Company's  opinion, a Participant or other person entitled to benefits
under the Plan is under a legal disability or is in any way  incapacitated so as
to be unable to manage  his  financial  affairs,  the  Committee  may direct the
Trustee to make  payment to a relative  or friend of such person for his benefit
until claim is made by a conservator  or other person  legally  charged with the
care of his person or his estate.  Thereafter,  any  benefits  under the Plan to
which  such  Participant  or  other  person  is  entitled  shall be paid to such
conservator or other person  legally  charged with the care of his person or his
estate.

9.7 Interests Not Transferable.  The interests of Participants and other persons
entitled  to  benefits  under the Plan are not  subject  to the  claims of their
creditors and may not be voluntarily  or  involuntarily  assigned,  alienated or
encumbered,  except in the case of a properly  documented  levy of the  Internal
Revenue Service, required tax withholding or qualified domestic relations orders
that relate to the provision of child  support,  alimony or marital  rights of a
spouse, child or

                                      -37-
<PAGE>   39

other  dependent  and which  meet such other  requirements  as may be imposed by
section 414(p) of the Code or applicable Treasury  Regulations.  Notwithstanding
any other  provision  of the Plan to the  contrary,  distribution  of the entire
portion of a Participant's  Accounts  awarded to his alternate payee may be made
in a lump sum  payment,  as soon as  practicable  after  the  Committee  (or its
delegate) determines that such order is qualified, without regard to whether the
Participant would himself be entitled under the terms of the Plan to withdraw or
receive a  distribution  of such lump sum amount at that  time,  but only if the
terms of the order provide for such immediate  distribution  either specifically
or by general reference to any manner of distribution permitted under the Plan.

9.8 Absence of Guaranty.  None of the Company,  the Trustee, or the Employers in
any way guarantee the assets of the Plan from loss or depreciation, or guarantee
any payment to any person.  The  liability of the Trustee to make any payment is
limited to the available assets of the Plan held under the Trust.

9.9 Missing Participants or Beneficiaries.  Each Participant and each designated
Beneficiary  must file with the  Recordkeeper  from time to time in writing  his
post office address and each change of post office address.  Any  communication,
statement or notice addressed to a Participant or designated  Beneficiary at his
last post  office  address  filed  with the  Recordkeeper,  or, in the case of a
Participant, if no address is filed with the Recordkeeper, then at his last post
office  address  as shown on the  Employer's  records,  will be  binding  on the
Participant and his designated Beneficiary for all purposes of the Plan. None of
the  Company,  the  Employers,  or the Trustee will be required to search for or
locate a Participant or designated Beneficiary.

9.10  Doubt as to Right to  Payment.  In the  event  that at any time any  doubt
exists as to the right of any person to any payment  hereunder  or the amount or
time of such payment  (including,  without  limitation,  any case of doubt as to
identity,  or any case in which  any  notice  has been  received  from any other
person claiming any interest in amounts payable hereunder,  or any case in which
a claim from other persons may exist by reason of community  property or similar
laws), the Committee shall be entitled, in its discretion, to direct the Trustee
to hold such sum as a  segregated  amount in trust until such right or amount or
time is  determined or until order of a court of competent  jurisdiction,  or to
pay such sum into court in accordance with appropriate rules of law in such case
then  provided,  or to make  payment  only  upon  receipt  of a bond or  similar
indemnification  (in such  amount  and in such form as is  satisfactory  to such
Committee).

9.11 Limits on  Commencement  and  Duration  of  Payments.  Except as  expressly
provided  below,  the following  provisions  shall be applied in accordance with
sections   401(a)(9)  and  401(a)(14)  of  the  Code  and  applicable   Treasury
Regulations  and shall act as a restriction  on (and not an enlargement of ) any
other distribution provisions set forth herein:

     (a)  Unless  the  Participant  elects  otherwise  (which  election  may  be
     passive),  payment to a Participant  under this Article IX shall be made or
     commenced  not later  than the 60th day after the close of the Plan Year in
     which  occurs the later of his  Termination  Date or his Normal  Retirement
     Date.

     (b)  Distribution  of the  Participant's  Accounts  shall  be made or shall
     commence no later than the April 1  following  the  calendar  year in which
     later of the following occurs:

                                      -38-
<PAGE>   40

     (i) the Participant  attains age 70 1/2 or (ii) the Participant  terminates
     employment with the Company and its Affiliates.

     (c) A  Participant  who  commences  payment  of his  Accounts  pursuant  to
     paragraph (b) may choose his form of payment in accordance  with  paragraph
     9.1(b), subject to the remaining provisions of this Section 9.11.

     (d) Distribution shall be made over the life of the Participant or over the
     lives  of the  Participant  and  his  Beneficiary  (or  over a  period  not
     extending  beyond the life expectancy of such Participant or the point life
     expectancies  of the Participant  and his  Beneficiary).  For this purpose,
     life expectancy will not be recalculated each year.

     (e) If a Participant dies after distribution of his Accounts has begun, the
     remainder of his Accounts shall be distributed to his  Beneficiary at least
     as rapidly as under the payment schedule commenced before his death.

     (f) If a Participant  dies before  distribution  of his Accounts has begun,
     distribution  to his  Beneficiary  shall be completed by December 31 of the
     calendar year containing the fifth anniversary of the Participant's  death,
     provided  that this  five-year  rule  shall  not apply to a natural  person
     designated as a Beneficiary  by the  Participant  or under the terms of the
     Plan, if

          (i) the  Participant's  Accounts will be distributed over the life (or
          life expectancy) of such designated Beneficiary, and

          (ii)  the  distribution  to the  Beneficiary  begins  not  later  than
          December 31 of the calendar  year  following  the calendar year of the
          Participant's  death  or,  if the  Beneficiary  is  the  Participant's
          surviving  spouse,  not  later  than the  December  31  following  the
          calendar year in which the Participant would have attained age 70 1/2.

     (g) If the Participant's surviving spouse is his Beneficiary and the spouse
     dies  before  distribution  to the spouse  begins,  paragraph  (f) shall be
     applied as though the spouse were the Participant.

9.12 Contributions  Subsequent to Distribution.  Any Employer  contribution made
subsequent  to the  complete  distribution  of the  balance  of a  Participant's
Accounts shall be paid to the Participant (or his Beneficiary, if applicable) as
soon as practicable after the date of such contribution.

9.13 Payments to Minors. If at any time a person entitled to receive any payment
hereunder is a minor, such payment, in the sole discretion of the Committee, may
be made for the benefit of such minor to his parent, guardian or the person with
whom he resides,  or to the minor  himself,  and the release of any such parent,
guardian,  person or minor  shall be a valid  and  complete  discharge  for such
payment.

9.14  Identity of Proper  Payee.  The  determination  of the Committee as to the
identity  of the proper  payee of any payment  and the amount  properly  payable
shall be conclusive, and payment

                                      -39-
<PAGE>   41

in accordance with such  determination  shall constitute a complete discharge of
all obligations on account thereof.

9.15 Inability to Locate Payee. Notwithstanding any other provision of the Plan,
in the event that the  Committee  cannot  locate any person to whom a payment is
due under this Plan,  the benefit in respect of which such payment is to be made
shall be forfeited  at such time as the  Committee  shall  determine in its sole
discretion  (but in all events  prior to the time such benefit  would  otherwise
escheat  under  any  applicable  law);  provided  that,  such  benefit  shall be
reinstated (from current  forfeitures (if any), from investment gains within the
Trust  Fund  or from a  special  Employer  contribution,  as  determined  by the
Committee),  if such person  subsequently  makes a valid claim for such  benefit
prior to termination of the Plan.

9.16 Estoppel of Participants and Their Beneficiaries.  The Employers, Committee
and Trustee may rely upon any  certificate,  statement  or other  representation
made to them by any  employee,  Participant,  spouse or other  beneficiary  with
respect to age,  length of  service,  leave of  absence,  date of  cessation  of
employment, marital status, or other fact required to be determined under any of
the  provisions of this Plan,  and shall not be liable on account of the payment
of any  moneys or the doing of any act in  reliance  upon any such  certificate,
statement  or other  representation.  Any such  certificate,  statement or other
representation made by an employee or Participant shall be conclusively  binding
upon such employee or Participant and his spouse or other beneficiary,  and such
employee,  Participant,  spouse or beneficiary  shall  thereafter and forever be
stopped from disputing the truth and correctness of such certificate,  statement
or other representation. Any such certificate, statement or other representation
made by a  Participant's  spouse  or other  beneficiary  shall  be  conclusively
binding upon such spouse or  beneficiary,  and such spouse or beneficiary  shall
thereafter  and forever be stopped from  disputing the truth and  correctness of
such certificate, statement or other representation.

9.17  Community  Property  Laws.  Notwithstanding  any provision to the contrary
contained in this Plan,  the  Committee may require  consent of a  Participant's
spouse to any election (or  revocation of an election)  with respect to the form
of payment of the  Participant's  benefits under the Plan, if the Committee,  in
its sole discretion,  deems such consent  necessary or advisable in light of the
possible application thereto of community property or similar laws.

                                      -40-
<PAGE>   42

                                   ARTICLE X

                     Distribution Upon Death of Participant

10.1  Distribution  to  Beneficiary.  If a  Participant  dies  before his vested
Account  balance has been fully paid to him,  payment of the  remainder  of such
vested  balance  shall  be  paid  to his  Beneficiary  in  accordance  with  the
following:

     (a) If the  Participant  dies  before  payment  to him has  commenced,  his
     Beneficiary  may  elect,  subject to  Section  9.11,  either (i) a lump sum
     payment,  (ii)  monthly,  quarterly,   semi-annual  or  annual  installment
     payments for a period not exceeding the Beneficiary's  life expectancy,  or
     (iii) if the Beneficiary is the Participant's  Surviving Spouse, an annuity
     purchased  for  the  Beneficiary  from  a  commercial   insurance  company,
     commencing as of such Distribution Date the Beneficiary  elects that is not
     later  than  the  date  that  would  have  been  the  Participant's  Normal
     Retirement Date (or as soon as practicable after the Participant's death if
     his death occurs after his Normal  Retirement  Date),  provided that if the
     Participant's  vested  Account  balance  is $5,000 or less,  payment  shall
     automatically  be made  in a lump  sum as soon  as  practicable  after  the
     Participant's  death  is  confirmed,  and  provided  further  that  if  the
     Beneficiary  does not  elect  payment  in one of the  permitted  forms in a
     timely manner so as to comply with this paragraph (a) and Section 9.11, the
     Beneficiary shall be paid in a lump sum..

     (b) If  the  Participant  dies  after  commencing  to  receive  installment
     payments in accordance with the clause  7.1(b)(ii),  payment shall continue
     in the same form to his Beneficiary.

10.2  Designation  of  Beneficiary.  Subject to the further  provisions  of this
Article X, each  Participant  may designate,  at such time and in such manner as
the Committee  shall  prescribe,  a Beneficiary or  Beneficiaries  (who may be a
natural person, executor,  administrator,  trust, foundation or other entity) to
receive the vested balance of his Accounts after his death.  Such designation of
a Beneficiary or Beneficiaries shall not be effective for any purpose unless and
until  it has been  filed  by the  Participant  with  the  Committee,  provided,
however,  that a designation mailed by the Participant to the Committee prior to
death and  received by it after his death  shall take effect upon such  receipt,
but prospectively only and without prejudice to any payor or payee on account of
any  payments  made  before  receipt  by  the  Committee.   Notwithstanding  the
foregoing,  a Participant's  sole Beneficiary  shall be his Surviving Spouse, if
the  Participant has a surviving  spouse,  unless the Participant has designated
another Beneficiary with Spousal Consent.  For purposes of this Section 10.2 the
term "Spouse" or "Surviving  Spouse" shall mean a Participant's  legal spouse as
of the  date  of his  death.  A  former  legal  spouse  will be  treated  as the
Participant's  Spouse to the extent provided in a qualified  domestic  relations
order (as defined in section  414(p) of the Code).  The term  "Spousal  Consent"
shall mean written consent by a Participant's Spouse to an election, Beneficiary
designation or similar  action by the  Participant.  A Spousal  Consent shall be
ineffective  unless it  acknowledges  the effect of such  election,  Beneficiary
designation  or action and is witnessed by a notary  public and, with respect to
Spousal Consent pertaining to a Beneficiary designation, unless such designation

                                      -41-
<PAGE>  43

specifically   identifies  the   Participant's   Beneficiaries   (and  alternate
Beneficiaries) by name or class. If the Committee is satisfied that such Spousal
Consent cannot be obtained because there is no Spouse, because the Spouse cannot
be  located,  or because of other  circumstances  which may be  permitted  under
applicable law,  Spousal Consent shall be deemed to have been given. Any consent
or deemed  consent  with  respect  to a Spouse  which  satisfies  the  foregoing
requirements  shall be  effective  only with respect to the Spouse by whom given
(or deemed to be given),  and may not be revoked by such Spouse with  respect to
the  election,  Beneficiary  designation  or other  action to which such consent
pertains.

10.3 Change of Beneficiary.  A Participant,  from time to time in such manner as
the  Committee  shall  prescribe,  may  change  his  designated  Beneficiary  or
Beneficiaries,  but any such designation which has the effect of naming a person
other than the Surviving  Spouse as sole  Beneficiary  is subject to the Spousal
Consent requirement of Section 10.2.

10.4 Failure to Designate  Beneficiary.  If a Participant has failed to properly
designate  a  Beneficiary  to receive the  Participant's  death  benefits,  or a
Beneficiary  previously  designated  has  predeceased  the  Participant  and  no
alternative designation has become effective, such benefits shall be distributed
to the  Participant's  Surviving  Spouse,  if any, or if no Spouse  survives the
Participant, to the Participant's estate.

10.5 Proof of Death. The Committee,  as a condition  precedent to making payment
to any Beneficiary, may require that a death certificate,  burial certificate or
other  evidence of death,  and/or a court order or other  evidence of the status
and  authority  of  the  Beneficiary  or of  any  legal  representative  of  the
Beneficiary, acceptable to it be furnished.

10.6  Discharge of  Liability.  If  distribution  in respect of a  Participant's
Accounts  is  made to a  person  reasonably  believed  by the  Committee  or its
delegate  (taking into account any document  purporting to be a valid consent of
the Participant's  spouse,  or any  representation by the Participant that he is
not  married) to properly  qualify as the  Participant's  Beneficiary  under the
foregoing provisions of this Article X, the Plan shall have no further liability
with respect to such Accounts (or the portion thereof distributed).

                                      -42-
<PAGE>   44

                                   ARTICLE XI

                                   Trust Fund

11.1 Trust  Agreement.  By adopting the Plan, each Employer shall  automatically
become a party to the Trust Agreement  between the Company and the Trustee under
which the Trustee shall receive the  contributions  made by the Employers  under
the Plan and shall hold, invest and distribute the Trust Fund in accordance with
the terms and provisions of the Trust Agreement.  Any and all rights or benefits
which may accrue to any person  under the Plan shall be subject to all the terms
and provisions of the Trust Agreement.  In the event that the Trustee shall be a
bank or similar  financial  institution  supervised  by the  United  States or a
State, the Committee, in its discretion, may authorize the Trustee to invest all
or a part of the Plan's assets in deposits which bear a reasonable interest rate
in such bank or financial institution.

11.2 No Diversion of Trust Fund. The Trust Fund shall in no event be used for or
diverted to purposes other than for the exclusive  benefit of  Participants  and
their Beneficiaries (including the payment of the expenses of the administration
of the Plan and of the Trust Fund),  except that, at the Committee's  request, a
contribution that is made by an Employer by a mistake of fact may be returned to
such Employer within one year after the payment of the contribution.

11.3  Duration  of  Trust.  The  Trust  shall  continue  for such time as may be
necessary to accomplish the purposes for which it is created.

11.4 Company as Agent. The Company is hereby  authorized to act as agent for all
other Employers in dealings with the Trustee under the Plan.

                                      -43-
<PAGE>   45

                                  ARTICLE XII

                                 Administration

12.1 Committee.  A committee (the  "Committee")  consisting of not less than two
(2) members shall be appointed by the Board of Directors to administer  the Plan
and  oversee the  investment  of its assets.  Each member of the  Committee  may
resign or may be  removed  at any time by the Board of  Directors.  In the event
that a vacancy or vacancies shall occur on the Committee,  the remaining  member
or members  shall act as the Committee  until the Board of Directors  fills such
vacancy or vacancies. A member of the Committee shall serve without compensation
for his  services  as such  member,  and in the event of the  removal,  death or
resignation  of any member,  his  successor  shall be  appointed by the Board of
Directors.  No person shall be ineligible to be a member of a Committee  because
he is, was or may become  entitled to benefits under the Plan or because he is a
director and/or officer of an Employer or Affiliate or a Trustee; provided, that
no member of a Committee shall participate in any determination by the Committee
specifically  relating to the disposition of his own Account. The members of the
Committee  shall serve without bond except to the extent  required by applicable
law.

12.2 Committee Powers and Authority.  Except as otherwise  expressly provided in
the Plan or in the Trust Agreement, or by the Board of Directors:

     (a) The Committee shall be responsible for the  administration  of the Plan
     as set forth herein. Otherwise, the Company shall be the plan administrator
     of the Plan within the  meaning of section  3(16)(A) or ERISA and 414(g) of
     the Code.

     (b) The Committee shall be responsible for making appropriate provision for
     the investment and reinvestment of the Trust Fund.

     (c) The  Committee  shall have all  powers  necessary  or  helpful  for the
     carrying  out of its  responsibilities  hereunder,  and  the  decisions  or
     actions  of the  Committee  in respect  of any  matter  hereunder  shall be
     conclusive and binding upon all parties concerned.

     (d) The  Committee  may  delegate  to one or more  of its  members,  to the
     Recordkeeper  or to any  other  duly  appointed  agent  of  the  Committee,
     including  but not  limited  to any  individual  employed  in the  Benefits
     Department  of the  Company,  the right to act on its  behalf in any one or
     more matters connected with the administration of the Plan.

     (e) Without  limiting the generality of the foregoing,  the Committee shall
     have the power and absolute discretion to:

          (i) make  rules and  regulations  for the  administration  of the Plan
     which are not inconsistent with the terms and provisions of the Plan;

          (ii) construe all terms, provisions, conditions and limitations of the
     Plan, resolve ambiguities, remedy inconsistencies and supply omissions;

                                      -44-
<PAGE>   46

          (iii) make all relevant factual findings; and

          (iv)  conclusively  determine  all  questions  arising  out  of  or in
     connection with the provisions of the Plan or its administration in any and
     all cases in which the  Committee  deems  such a  determination  advisable,
     including  but not limited to the power to  determine  the  eligibility  of
     employees to  participate  in the Plan and the rights of  Participants  and
     other  persons  entitled  to benefits  under the Plan and their  respective
     benefits.

The foregoing list of powers is not intended to be either complete or exclusive,
and the Committee,  in addition,  shall have such other discretionary  powers as
may be necessary for the  performance of its duties under the Plan and the Trust
Agreement.

12.3 Limitation of Liability and  Indemnification.  Except as otherwise provided
by law,  no person  who is a member  of the  Committee,  or who is an  employee,
director or officer of an Employer or any  Affiliate,  shall incur any liability
whatsoever on account of any matter connected with or related to the Plan or the
administration of the Plan, unless such person shall have acted in bad faith, or
have willfully  neglected his duties,  in respect of the Plan. The Company shall
indemnify  and  save  each  such  person  harmless  against  any and  all  loss,
liability,  claim,  damage, cost and expense which may arise by reason of, or be
based  upon,  any  matter   connected  with  or  related  to  the  Plan  or  the
administration of the Plan (including,  but not limited to, any and all expenses
whatsoever reasonably incurred in investigating,  preparing or defending against
any  litigation,  commenced or  threatened,  or in  settlement of any such claim
whatsoever),   to  the  fullest  extent   permitted  under  the  Certificate  of
Incorporation and By-Laws of the Company.

12.4 Committee Action. A majority of the members of the Committee at the time in
office shall constitute a quorum for the transaction of business.  The Committee
shall  select  from among its members a Chairman,  and shall  appoint  (from its
members or  otherwise) a Secretary.  The Committee may act by vote or consent of
the majority of its members then in office and may establish its own procedures.
The  Committee  may authorize any one or more of its members or the Secretary of
the Committee to sign and deliver any instrument,  certificate or other paper or
document on its behalf. Notwithstanding the preceding provisions of this Section
12.4, if the Committee shall consist of only two members,  both members shall be
necessary to establish a quorum for the  transaction  of business and action may
be taken only by unanimous vote, unless the action in question directly concerns
one of the Committee  member's benefits under the Plan, in which event the other
member shall act as the Committee.

12.5  Subcommittees,  Counsel and Agents.  The  Committee  may appoint  from its
members such  subcommittees (of one or more such members),  with such powers, as
the Committee shall determine.  The Committee may employ such counsel (including
legal  counsel,  who may be counsel for an Employer or any Affiliate) and agents
and such  clerical  and other  services as it may  require in  carrying  out the
provisions  of the Plan,  and may charge the fees,  charges and costs  resulting
from such employment as an administrative  expense to the Plan. Unless otherwise
required by law, persons employed by the Committee as counsel,  or as its agents
or otherwise, may include members of the Committee, or of the Board or Boards of

                                      -45-
<PAGE>   47

Directors  of any  Employer  or  Affiliate,  or firms with which  members of the
Committee  or Board or Boards of  Directors  of any  Employer or  Affiliate  are
associated as partners, employees or otherwise. Persons serving on the Committee
or on any  subcommittee  shall be fully  protected in acting or refraining  from
acting in accordance with the advice of legal or other counsel.

12.6 Reliance on Information.  The members of the Committee and any Employer and
Affiliate  and their  respective  officers,  directors and  employees,  shall be
entitled to rely upon all tables, valuations, certificates, opinions and reports
furnished by any  actuary,  accountant,  trustee,  insurance  company,  counsel,
physician or other expert who shall be engaged by the Committee,  an Employer or
any  Affiliate,  and the members of the Committee and any Employer and Affiliate
and their respective officers, directors and employees, shall be fully protected
in respect of any action  taken or  suffered  by them in good faith in  reliance
thereon,  and all  action  so taken or  suffered  shall be  conclusive  upon all
persons affected thereby.

12.7   Instructions  to  Trustee.   The  Committee  shall  provide   appropriate
instructions  in  accordance  with the Trust  Agreement to enable the Trustee to
make the distributions provided for in the Plan.

12.8   Fiduciaries.   The   provisions   of  this   Section   12.8  shall  apply
notwithstanding any contrary provision of the Plan or of the Trust Agreement.

     (a) Named  Fiduciaries.  The named  fiduciaries under the Plan shall be (i)
     the  Company,  (ii) the  Committee  and each of its  members,  and  (Iii) a
     Participant to the extent such  Participant  has directed the investment of
     his Accounts under Article VI.

     (b) Allocation of Fiduciary and Other Responsibilities. The Committee shall
     have the right,  which shall be exercised in accordance with the procedures
     set  forth  in the  Plan  or in  the  Trust  Agreement  for  action  by the
     Committee, to allocate responsibilities  (fiduciary or otherwise) among its
     members,  and it shall have the right to designate  persons  other than the
     Committee to carry out responsibilities  (fiduciary or otherwise) under the
     Plan.

     (c)  Service in  Multiple  Capacities.  Any person or group of persons  may
     serve in more than one fiduciary capacity with respect to the Plan.

     (d) Advisers. The Committee,  and any fiduciary designated by the Committee
     pursuant  to  paragraph  (b) above to whom  such  power is  granted  by the
     Committee,  may employ one or more persons to render  advice with regard to
     any responsibility such fiduciary has under the Plan.

     (e) Investment Manager.  The Committee may appoint an investment manager or
     managers,  as defined in ERISA, to manage  (including the power to acquire,
     invest and dispose of) any assets of the Plan.

     (f)  Limitation of Liability.  Except to the extent  otherwise  provided by
     law, if any duty or  responsibility of a named fiduciary has been allocated
     or delegated to any other person in  accordance  with any provision of this
     Plan or of the Trust  Agreement,  then such  named  fiduciary  shall not be
     liable for any act or omission of such person in carrying  out such duty or
     responsibility.

                                      -46-
<PAGE>   48

12.9 Genuineness of Documents. The Committee, and any Employer and Affiliate and
their respective  officers,  directors and employees,  shall be entitled to rely
upon any notice, request,  consent,  letter, telegram or other paper or document
believed by them or any of them to be  genuine,  and to have been signed or sent
by the  proper  person,  and shall be fully  protected  in respect of any action
taken or suffered by them in good faith in reliance thereon.

12.10 Proper Proof.  In any case in which an Employer or the Committee  shall be
required  under the Plan to take action upon the  occurrence of any event,  they
shall be under no  obligation  to take such action  unless and until  proper and
satisfactory evidence of such occurrence shall have been received by them.

12.11 Claims  Procedure.  The Committee  shall  establish a claims  procedure in
accordance with applicable law and shall afford a reasonable  opportunity to any
Participant or  Beneficiary  whose claim for benefits has been denied for a full
and fair review of the decision denying such claim.

12.12  Recordkeeper.  The Committee may appoint a  Recordkeeper  to perform such
administrative  functions  as the  Committee  may  determine  from time to time,
including  but  not  limited  to  the  processing  of  loans,   withdrawals  and
distributions, and contribution and in accordance with Investment Fund elections
by Participant, in accordance with the terms of the Plan.

12.13  Administrative  Expenses.  Except as otherwise determined by the Company,
the expenses of  administering  the Plan and the fees and  expenses  incurred in
connection  with  the  collection,   administration,   management,   investment,
protection  and  distribution  of the Plan assets  under the Trust shall be paid
directly by the Trust out of Plan  assets or, if paid by one or more  Employers,
reimbursed by the Trust,  to the maximum  extent  permitted by law, and shall be
allocated to Participants'  Accounts in accordance with rules established by the
Committee in its sole discretion.

                                      -47-
<PAGE>   49

                                  ARTICLE XIII

                           Discontinuing Participation
                                       and
                     Right of Company to Amend or Terminate

13.1 Discontinuance of Participation By an Employer. An Employer's participation
in the Plan shall cease in accordance with the following:

     (a) Any Employer may elect, at any time, to discontinue  its  participation
     hereunder  in whole or in part  with  respect  to any of its  divisions  or
     locations, by filing written notice thereof with the Board of Directors and
     the Committee and specifying the group or groups of  Participants  affected
     by such election.

     (b) The Plan shall be discontinued  as to all  Participants of any Employer
     which shall be declared bankrupt or which makes any general  assignment for
     the benefit of creditors.

     (c) The Plan shall be  discontinued  as to  Participants of any Employer in
     the  event  of the  dissolution,  merger,  consolidation,  or sale or other
     disposition  of all of the business  and assets or stock of such  Employer,
     unless provision is made for the continuance of the Plan by a successor.

     (d) The Plan shall be  discontinued as to Participants of any Employer that
     ceases to be a  Controlled  Group  Member,  unless the Board of  Directions
     expressly permits its continued participation in the Plan.

In such  event  the  Committee  shall  either  make  such  current  or  deferred
distribution to the  Participants  affected by such  discontinuance  as it shall
deem  appropriate  and in accordance  with the Plan, or in lieu thereof,  direct
that the portion of the Trust Fund allocable to such Participants be transferred
to a  successor  qualified  plan or funding  medium,  if  provision  is made for
coverage for such Participants under such plan or funding medium. No Participant
shall make any contributions to the Plan, after discontinuance of his Employer's
participation in the Plan with respect to him.

13.2 Amendment. The Company shall have the right to amend the Plan by resolution
of the  Board of  Directors,  by  resolution  of any duly  authorized  committee
thereof or by written action of any duly authorized  officer of the Company,  to
any  extent  that  it  may  deem  advisable,   and  all  Employers,   employees,
Participants,  and Beneficiaries shall be bound thereby.  Where deemed necessary
or  advisable  in order to ensure  compliance  with  applicable  law  (including
administrative  interpretations  thereof),  amendments may be put into effect in
practice and in communications  to Participants  prior to the time that they are
embodied in formal amendments to the Plan document.  No amendment shall reduce a
Participant's  interest  to the Plan to an amount  less  that what his  interest
would  have  been  if his  Termination  Date  had  occurred  on  the  day of the
amendment.

13.3  Termination.  The Plan may be  terminated at any time by resolution of the
Board of  Directors,  provided  that no such action shall permit any part of the
corpus or income of the Trust

                                      -48-
<PAGE>   50

Fund to be used for or diverted to purposes other than for the exclusive benefit
of the Participants and their  Beneficiaries  under the Plan and for the payment
of the  administrative  costs  of the  Plan  prior  to the  satisfaction  of all
liabilities under the Plan.

13.4 Plan Merger. The Company may determine that the Plan should be merged with,
or the  Company  or the  Committee  may  determine  that all or a portion of the
Plan's  assets should be  transferred  to, any other  qualified  plan within the
meaning of section  401(a) of the Code,  and the Committee in its discretion may
permit  the Plan to  accept a  transfer  of all or a  portion  of the  assets of
another  qualified  plan.  In the case of any merger or  consolidation  with, or
transfer of assets or liabilities to or from, any other plan,  each  Participant
in this Plan  shall be  entitled  to a  benefit  immediately  after the  merger,
consolidation,  or transfer (if such other plan then terminated)  which is equal
to or  greater  than  the  benefit  he  would  have  been  entitled  to  receive
immediately before the merger, consolidation,  or transfer (if the Plan had then
been  terminated).  In the  event of a  transfer  or merger  into the Plan,  the
provisions of the other plan that pertain to optional forms of benefit and other
rights that may not be eliminated by amendment shall be  incorporated  herein by
reference to the extent  necessary to comply with Section  411(d)(6) of the Code
and applicable  Treasury  Regulations  until such time as a separate  supplement
setting forth such protected features is added to the Plan.

                                      -49-
<PAGE>   51

                                  ARTICLE XIV

                                  Miscellaneous

14.1 Appropriate Forms and Filing with Committee. For all purposes of this Plan,
the date on which an  Appropriate  Form,  Contribution  Agreement,  or any other
document is returned to or filed with the  Committee  shall be the date on which
such  Appropriate  Form,  Contribution  Agreement or other  document is actually
received  by  the  Committee  or its  designated  agent.  As  and to the  extent
determined by the Committee from time to time, an  appropriate  form may consist
of electronic or voice communication,  provided that a Participant's designation
of a Beneficiary  and any Spousal  Consent  required in connection with any such
designation  shall be in writing.  The Committee  shall prescribe the conditions
for use of the Appropriate  Form. Any submission by a Participant of an election
through an electronic or voice  communication  system shall constitute his valid
signature for purposes of any  transaction  effected  thereby.  An election made
through  any  such  system  shall  be  considered  received  on  the  day  it is
transmitted,  unless such transmission is received after the applicable  cut-off
date and/or time prescribed by the Recordkeeper. The availability of electronic,
internet or interactive  phone access to the Plan's  recordkeeping  system shall
not guaranty access to any Participant at a particular time.

14.2  Governing   Laws.  The  Plan  shall  be  governed  by  and  construed  and
administered  under the laws of the State of [New Jersey],  except to the extent
such laws are preempted by Federal law.

14.3   Separability.   If  any  provision  of  this  Plan  is  held  invalid  or
unenforceable,  its  invalidity or  unenforceability  shall not affect any other
provisions  of the Plan and the Plan shall be construed  and enforced as if such
provisions had not been included therein.

14.4 Captions.  The captions contained herein and the table of contents prefixed
hereto are inserted only as a matter of convenience  and for reference and in no
way define,  limit,  enlarge or describe the scope or intent of this Plan nor in
any way shall affect the Plan or the construction of any provision thereof.

14.5 Limitation of Liability. Except to the extent otherwise provided by law, no
liability shall attach to or be incurred by any stockholder, officer or director
of any Employer or any  Affiliate,  and if an Employer or  Affiliate  shall be a
partnership,  any partner thereof,  under or by reason of the terms,  conditions
and provisions contained in this Plan or in the Trust Agreement, or for the acts
or decisions  taken or made  thereunder  or in  connection  therewith;  and as a
condition  precedent to his participation in the Plan or the receipt of benefits
thereunder, or both, such liability, if any, is expressly waived and released by
each Participant and  Beneficiary,  and by any and all persons claiming under or
through such persons,  such waiver and release to be  conclusively  evidenced by
any act or  participation  in or the  acceptance  of  benefits  or the making of
elections under this Plan.

14.6  Construction.  The Plan is intended to  constitute a qualified  plan under
section  401(a)  of the  Code  (which  includes  a  qualified  cash or  deferred
arrangement within the meaning of section 401(k) of the Code) and to comply with
applicable provisions of ERISA. Accordingly, the Plan

                                      -50-
<PAGE>   52

shall, at all times, be construed and  administered in a manner  consistent with
the  requirements  of said  sections  401(a)  and  401(k)  of the  Code  and the
requirements of ERISA.

14.7  Action by  Employers.  Except as  otherwise  provided  herein,  any action
required or permitted to be taken by the Company or any other  Employer which is
a  corporation  shall  be by  resolution  of its  Board of  Directors  or a duly
authorized  committee thereof or by written action of a duly authorized  officer
of the Company or the Employer.  Any action required or permitted to be taken by
an  Employer  that  is a  partnership  shall  be by a  general  partner  of such
partnership or by a duly authorized officer thereof.

                                      -51-
<PAGE>   53

                                   ARTICLE XV

                             "Top-Heavy" Provisions

15.1 Applicable Plans. For purposes of this Article XV, "Applicable Plans" shall
include (a) each plan of an Employer or an Affiliate in which a Key Employee (as
defined in Section  [15.2] below for this Plan, and as defined in section 416(i)
of the  Code  for each  other  Applicable  Plan)  participates  during  the five
(5)-year  period  ending on such plan's  "Determination  Date" (as  described in
Section  151.4  below) and (b) each other plan of an  Employer  or an  Affiliate
which,  during such period,  enables any plan in clause (a) of this  sentence to
meet the  requirements  of section  401(a)(4)  or 410 of the Code.  Any plan not
required to be included  under the preceding  sentence may also be included,  at
the option of the Company,  provided that the requirements of sections 401(a)(4)
and 410 of the Code continue to be satisfied  for the group of Applicable  Plans
after such inclusion.  Applicable Plans shall include  terminated plans,  frozen
plans and, to the extent that benefits are provided with respect to service with
an Employer or an Affiliate, multiemployer plans (described in section 414(f) of
the Code) and multiple  employer plans (described in section 413(c) of the Code)
to which an Employer or an Affiliate makes contributions.

15.2 Key Employee.  For purposes of this Article XV, "Key Employee" for any Plan
Year  shall  mean an  employee  (including  a  former  employee  whether  or not
deceased)  of an Employer or an  Affiliate  who, at any time during a given Plan
Year  or any of the  four  (4)  preceding  Plan  Years,  is one or  more  of the
following.

     (a) An officer of an Employer or an Affiliate having Top-Heavy Compensation
     of more than  fifty  percent  (50%) of the  dollar  amount in effect  under
     section 415(b)(1)(A) of the Code for any such Plan Year; provided, that the
     number of  employees  treated as officers  shall be no more than fifty (50)
     or, if fewer,  the greater of three (3)  employees or ten percent  (10%) of
     the employees (exclusive of employees described in section 414(q)(5) of the
     Code).

     (b) One of the ten (10) employees (i) having Top-Heavy Compensation of more
     than the  dollar  limit  under  section  415(c)(1)(A)  and (ii)  owning  or
     considered as owning within the meaning of section  416(i) of the Code) the
     largest  percentage  interests  in value of an  Employer  or an  Affiliate,
     provided that such percentage  interest  exceeds  one-half percent (.5%) in
     value.  If two  employees  have the same  interest  in the  Employer  or an
     Affiliate,  the employee  having the greater  Total  Compensation  shall be
     treated as having a larger interest.

     (c) A person owning (or considered as owning, within the meaning of section
     416(i) of the Code) more than five percent (5%) of the outstanding stock of
     an Employer or an  Affiliate,  or stock  possessing  more than five percent
     (5%) of the total combined  voting power of all stock of the Employer or an
     Affiliate  (or having more than five percent (5%) of the capital or profits
     interest  in any  Employer  or an  Affiliate  that  is  not a  corporation,
     determined under similar principles).

                                      -52-
<PAGE>   54

     (d) A  one  percent  (1%)  owner  of an  Employer  or an  Affiliate  having
     Top-Heavy  Compensation  of more than one hundred  fifty  thousand  dollars
     ($150,000).  "One  percent  (1%)  owner"  means  any  person  who  would be
     described in paragraph  (c) of Section  [15.1.2] if "one percent (1%)" were
     substituted  for "five  percent  (5%)" in each  place  where it  appears in
     paragraph (c).

     For  purposes  of  this  Section  [15.2],  "Top-Heavy  Compensation"  means
"compensation" as that term is defined in section 414(q)(4) of the Code.

15.3 Top  Heavy  Condition.  In any Plan  Year for  which  the sum,  for all Key
Employees  (as  defined  in  Section  15.2 above for this Plan and as defined in
section 416(i) of the Code for each other Applicable Plan), of the present value
of the cumulative  accrued benefits under all Applicable Plans which are defined
benefit plans  (determined  based on the actuarial  assumptions set forth in the
"top-heavy"  provisions of such plans) and the aggregate of their accounts under
all Applicable Plans which are defined contribution plans, exceeds sixty percent
(60%) of a similar  sum  determined  for all  participants  in such  plans  (but
excluding  participants who are former Key Employees),  the Plan shall be deemed
"Top-Heavy."

15.4  Determination   Date.  The  determination  as  to  whether  this  Plan  is
"Top-Heavy" for a given Plan Year shall be made on the last day of the preceding
Plan Year (the  "Determination  Date");  and other  plans  shall be  included in
determining  whether this Plan is "Top-Heavy" based on the determination date as
defined in section  416(g)(4)(C)  of the Code for each such plan which occurs in
the same calendar year as such Determination Date for this Plan.

15.5 Valuation.  The value of account  balances and the present value of accrued
benefits for each Applicable Plan will be determined,  subject to section 416 of
the Code and the regulations  thereunder,  as of the most recent  valuation date
that falls  within or ends with the  12-month  period  ending on the  applicable
determination date for such plan.

15.6   Distribution   within  Five  Years.   Subject  to  Section   15.7  below,
distributions  from  the  Plan or any  other  Applicable  Plan  during  the five
(5)-year period ending on the applicable  Determination Date shall be taken into
account in determining whether the Plan is "Top-Heavy."

15.7 No Services  within Five Years.  Benefits  and  distributions  shall not be
taken into  account  with  respect to any  individual  who has not  rendered any
services to any  Employer  or  Affiliate  at any time  during the five  (5)-year
period ending on the applicable Determination Date.

15.8 Compliance with Code Section 416. The calculation of the "top-heavy" ratio,
and the extent to which distributions,  rollovers,  and transfers are taken into
account will be made in  accordance  with Code  section 416 and the  regulations
thereunder.

15.9 Deductible Employee  Contributions.  Deductible employee contributions will
not be taken into account for purposes of computing the "top-heavy" ratio.

15.10  Beneficiaries.  The terms "Key Employee" and "Participant"  include their
Beneficiaries.

15.11  Accrued  Benefit  Under  Defined  Benefit  Plans.  Solely for purposes of
determining  whether this Plan or any other Applicable Plan is "Top-Heavy" for a
given Plan Year, the

                                      -53-
<PAGE>   55

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

15.12 Provisions Applicable in "Top-Heavy" Years. For any Plan Year in which the
Plan is deemed to be "Top-Heavy,"  the following  provisions  shall apply to any
Participant who has not terminated employment before such Plan Year:

     (a)  Required  Allocation.   The  amount  of  Employer   contributions  and
     forfeitures  which shall be allocated to the Account of any Participant who
     (a) is employed by an Employer or an  Affiliate on the last day of the Plan
     Year and (b) is not a Key Employee shall be (i) at least three percent (3%)
     of such member's Total  Compensation  for such Plan Year, or, (ii) if less,
     an  amount  equal to such  Total  Compensation  multiplied  by the  highest
     allocation  rate  for any  Key  Employee.  For  purposes  of the  preceding
     sentence,  the  allocation  rate for each  individual Key Employee shall be
     determined by dividing the Employer contributions and forfeitures allocated
     to such Key Employee's account (including elective contributions) under all
     Applicable Plans considered together by his Total  Compensation;  provided,
     however,  that  clause  (ii) above  shall not apply if this Plan  enables a
     defined benefit plan required to be aggregated with this Plan under Section
     15.1  above to meet the  requirements  of section  401(a)(4)  or 410 of the
     Code. The minimum allocation provisions of this Section 15.12 shall, to the
     extent necessary,  be satisfied by special Employer  contributions  made by
     the Employer for that purpose.  Notwithstanding the foregoing,  the minimum
     allocations  otherwise required by this Section 15.12 shall not be required
     to be made for any Participant  (y) if such  Participant is covered under a
     defined  benefit  plan  maintained  by an  Employer or an  Affiliate  which
     provides the minimum benefit required under section  416(c)(1) of the Code,
     and/or (z) to the extent that the minimum allocation  otherwise required by
     this  Section  15.12  is  made  under  another  defined  contribution  plan
     maintained  by an  Employer  or an  Affiliate.  In  addition,  any  minimum
     allocation  required to be made for a Participant who is not a Key Employee
     shall be deemed  satisfied  to the extent of the  benefits  provided by any
     other  qualified plan  maintained by an Employer or an Affiliate.  For Plan
     Years beginning on or after January 1, 1989,  Tax-Saver  Contributions by a
     non-Key  Employee  shall  be  disregarded  in  determining  the  amount  of
     contributions  required to be allocated  for his benefit under this Section
     15.12.  For Plan Years  beginning  on or after  January  1, 1989,  Matching
     Contributions  for a non-Key  Employee  that are taken into account to meet
     the  minimum  allocation  requirements  of  this  Section  15.12  shall  be
     disregarded  in applying  the  provisions  of Sections  5.6 and 5.10 of the
     Plan.

     (b)  Multiplier.  Except as  otherwise  provided  by law,  "1.00"  shall be
     substituted for the multiplier  "1.25" required by section  415(e)(2)(B)(i)
     and (3)(B)(i) of the Code, to the extent  applicable,  unless the following
     conditions  are met::  (a) the  percentage  described in Section 15.3 above
     does not  exceed  ninety  percent  (90%),  and (b) "four  percent  (4%)" is
     substituted for "three percent (3%)" in paragraph (a) above

                                      -54-
<PAGE>   56

     Notwithstanding  any  other  provision  of  this  Plan,  if the  sum of the
combined  limitation  fractions  described in section  415(e)(2)  and (3) of the
Code,   calculated  by  substituting  "1.00"  for  "1.25"  in  applying  section
415(e)(2)(B)(i)  and  (3)(B)(i)  of the Code,  for any  Participant  exceeds one
hundred  percent  (100%)  for  the  last  Plan  Year  before  the  Plan  becomes
"Top-Heavy,"  such fractions  shall be adjusted,  in accordance  with applicable
regulations, so that their sum does not exceed 100% for such Plan Year.

     (c)  Vesting.  Any  Participant  shall be vested in his Profit  Sharing and
     Matching  Contributions  Account  on a basis at least  as  favorable  as is
     provided under the following schedule:

<TABLE>
<CAPTION>
           Years of Service                            Vested Percentage

<S>                                                   <C>
           Less Than 2 Years                           0%
           2 Years But Less Than 3                     20%
           3 Years But Less Than 4                     40%
           4 Years But Less Than 5                     60%
           5 Years But Less Than 6                     80%
           6 Years or More                             100%
</TABLE>

     In any Plan Year in which the Plan is not  deemed to be "top-  heavy,"  the
vested percentage shall be no less than that which was determined as of the last
day of the last Plan Year in which the Plan was  deemed to be  "top-heavy."  The
minimum  vesting  schedule set out above shall apply to all benefits  within the
meaning  of  Code  section  411(a)(7)  except  those  attributable  to  employee
contributions,  including  benefits  accrued  before the effective  date of this
Article XV and benefits accrued before the Plan became  "top-heavy." Any vesting
schedule change caused by alterations in the Plan's  "top-heavy" status shall be
deemed to result  from a Plan  amendment  giving  rise to the right of  election
required by Code section 411(a)(10)(B)

     (d)  Bargaining  Unit  Employees.  The provisions of paragraphs (a) and (c)
     above  shall  not apply to any  employee  included  in a unit of  employees
     covered by a  collective  bargaining  agreement  if,  within the meaning of
     section 416(i)(4) of the Code, retirement benefits were the subject of good
     faith bargaining.

                                      -55-
<PAGE>   57

     IN WITNESS  WHEREOF,  the Company has caused this instrument to be executed
by its duly authorized officers, the 1st day of April, 2000.

                                                 LIZ CLAIBORNE, INC.

                                        By: /s/ Roberta S. Karp
                                            -------------------
                                                Roberta S. Karp

                                        ATTEST: /s/ Nicholas J. Rubino
                                                ----------------------
                                                    Nicholas J. Rubino

                                      -56-
<PAGE>   58

<TABLE>
<CAPTION>

                                Table of Contents

                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
ARTICLE I             General..................................................................................   2
         1.1          Effective Date...........................................................................   2
         1.2          Definitions..............................................................................   2
         1.3          Plan Supplements.........................................................................   7

ARTICLE II            Service..................................................................................   8
         2.1          General..................................................................................   8
         2.2          Year of Eligibility Service..............................................................   8
         2.3          Years of Vesting Service.................................................................   8
         2.4          Changes in Employment Status and Application of Different Service Crediting Rules to
                      the Determination of Eligibility.........................................................   9
         2.5          Service With Acquired Companies or Businesses............................................   9

ARTICLE III           Participation in the Plan................................................................  10
         3.1          Eligibility to Participate in the Plan...................................................  10
         3.2          Transfer to Eligible Employment..........................................................  11
         3.3          Reemployment.............................................................................  11
         3.4          Inactive Participation...................................................................  11
         3.5          Transfers Between Employers..............................................................  11
         3.6          No Employment Rights.....................................................................  11
         3.7          Rollover Participation...................................................................  11
         3.8          Participation Voluntary For Certain Purposes.............................................  12
         3.9          Leased Employees.........................................................................  12

ARTICLE IV            Contributions............................................................................  13
         4.1          Tax-Saver Contributions..................................................................  13
         4.2          Contribution Agreement for Tax-Saver Contributions.......................................  13
         4.3          Time of Tax-Saver Contributions..........................................................  13
         4.4          Change in Contribution Rate..............................................................  13
         4.5          Voluntary Suspension of Tax-Saver Contributions..........................................  13
         4.6          Mandatory Suspension of Tax-Saver Contributions..........................................  14
         4.7          Matching Contributions...................................................................  14
         4.8          Payment of Matching Contributions........................................................  14
         4.9          Matching Contributions Only For Permissible Tax-Saver Contributions......................  14
         4.10         Qualified Non-Elective Contributions.....................................................  15
         4.11         Contributions for Military Service.......................................................  15
         4.12         Rollovers................................................................................  15
         4.13         Profit Sharing Contributions.............................................................  16
         4.14         Eligibility to Share in Profit Sharing Contributions.....................................  16
</TABLE>

                                      -i-

<PAGE>   59
<TABLE>
<CAPTION>
                               Table of Contents
                                  (continued)

                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
         4.15         Allocation of Profit Sharing Contributions and Forfeitures...............................  16
         4.16         Contributions May Not Exceed Amount Deductible...........................................  16
         4.17         Form of Payment to Trustee...............................................................  16
         4.18         Time of Payment of Profit Sharing Contribution...........................................  16
         4.19         Profits Not Required.....................................................................  16

ARTICLE V             Limits on Contributions..................................................................  17
         5.1          Reduction of Contribution Rates..........................................................  17
         5.2          Limitations on Annual Additions..........................................................  17
         5.3          Excess Annual Additions..................................................................  17
         5.4          Limitation on Elective Deferrals.........................................................  18
         5.5          Distribution of Excess Deferrals.........................................................  18
         5.6          Section 401(k) Limit on Tax-Saver Contributions..........................................  18
         5.7          Determination of Average Deferral Percentages............................................  19
         5.8          Treatment of Excess Tax-Saver Contributions..............................................  19
         5.9          Section 401(k)(3) Testing for Collective Bargaining Unit Employees.......................  20
         5.10         Section 401(m) Limit on Matching Contributions...........................................  20
         5.11         Determination and Correction of Excess Matching Contributions............................  20
         5.12         Special Testing Rules....................................................................  21
         5.13         Aggregate Limit Under Section 401(m) of the Code.........................................  22

ARTICLE VI            Accounts and Investment Funds............................................................  23
         6.1          Accounts.................................................................................  23
         6.2          Allocation of Contributions..............................................................  23
         6.3          Correction of Error......................................................................  24
         6.4          Statement of Plan Interest...............................................................  24
         6.5          Investment Funds.........................................................................  24
         6.6          Investment Fund Accounting...............................................................  24
         6.7          Allocation of Fund Earnings and Changes in Value.........................................  24
         6.8          Investment Fund Elections................................................................  25
         6.9          Transfers Between Investment Funds.......................................................  25
         6.10         Liquidity................................................................................  26
         6.11         Voting and Tendering of Common Stock.....................................................  26
         6.12         Allocation Shall Not Vest Title..........................................................  27
         6.13         Committee Modifications..................................................................  27

ARTICLE VII           Vesting..................................................................................  28
         7.1          Matching and Profit Sharing Contributions................................................  28
         7.2          Tax-Saver, Qualified Non-Elective, Buy Back and Rollover Contributions Accounts..........  29
</TABLE>

                                      -ii-

<PAGE>   60
<TABLE>
<CAPTION>
                               Table of Contents
                                  (continued)

                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
         7.3          Accelerated Vesting......................................................................  29
         7.4          Forfeitures..............................................................................  29
         7.5          Restoration of Forfeiture and Buy Back Requirement.......................................  29
         7.6          Subaccount for Restored Amount...........................................................  30
         7.7          Application of Forfeitures...............................................................  30

ARTICLE VIII          Withdrawals and Loans During Employment..................................................  31
         8.1          Withdrawals At Age 59 1/2................................................................  31
         8.2          Withdrawal from Rollover Account.........................................................  31
         8.3          Hardship Withdrawals.....................................................................  31
         8.4          Hardship Defined.........................................................................  31
         8.5          Vesting Adjusted to Reflect Withdrawals..................................................  32
         8.6          Withdrawal Payment.......................................................................  32
         8.7          Loans....................................................................................  32
         8.8          Loan Requirements........................................................................  33
         8.9          Valuation for Loan Processing............................................................  34
         8.10         Funding of Participant Loans.............................................................  34
         8.11         Allocation of Loan Among Investment Funds................................................  34
         8.12         Loan Repayment...........................................................................  34
         8.13         Loan Expenses............................................................................  34
         8.14         Disposition of Loan Upon Certain Events..................................................  34
         8.15         Compliance with Applicable Law...........................................................  35
         8.16         Loan Default.............................................................................  35

ARTICLE IX            Distributions to Participants After Termination of Employment............................  36
         9.1          Distributions to Participants After Termination of Employment............................  36
         9.2          Distribution Only Upon Separation From Service...........................................  36
         9.3          Form of Payment..........................................................................  37
         9.4          Direct Rollover Option...................................................................  37
         9.5          Put Option...............................................................................  37
         9.6          Facility of Payment......................................................................  37
         9.7          Interests Not Transferable...............................................................  37
         9.8          Absence of Guaranty......................................................................  38
         9.9          Missing Participants or Beneficiaries....................................................  38
         9.10         Doubt as to Right to Payment.............................................................  38
         9.11         Limits on Commencement and Duration of Payments..........................................  38
         9.12         Contributions Subsequent to Distribution.................................................  39
         9.13         Payments to Minors.......................................................................  39
         9.14         Identity of Proper Payee.................................................................  39
         9.15         Inability to Locate Payee................................................................  40
         9.16         Estoppel of Participants and Their Beneficiaries.........................................  40
         9.17         Community Property Laws..................................................................  40
</TABLE>

                                     -iii-

<PAGE>   61
<TABLE>
<CAPTION>
                               Table of Contents
                                  (continued)

                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
ARTICLE X             Distribution Upon Death of Participant...................................................  41
         10.1         Distribution to Beneficiary.............................................................   41
         10.2         Designation of Beneficiary...............................................................  41
         10.3         Change of Beneficiary....................................................................  42
         10.4         Failure to Designate Beneficiary.........................................................  42
         10.5         Proof of Death...........................................................................  42
         10.6         Discharge of Liability...................................................................  42

ARTICLE XI            Trust Fund...............................................................................  43
         11.1         Trust Agreement..........................................................................  43
         11.2         No Diversion of Trust Fund...............................................................  43
         11.3         Duration of Trust........................................................................  43
         11.4         Company as Agent.........................................................................  43

ARTICLE XII           Administration...........................................................................  44
         12.1         Committee................................................................................  44
         12.2         Committee Powers and Authority...........................................................  44
         12.3         Limitation of Liability and Indemnification..............................................  45
         12.4         Committee Action.........................................................................  45
         12.5         Subcommittees, Counsel and Agents........................................................  45
         12.6         Reliance on Information..................................................................  46
         12.7         Instructions to Trustee..................................................................  46
         12.8         Fiduciaries..............................................................................  46
         12.9         Genuineness of Documents.................................................................  47
         12.10        Proper Proof.............................................................................  47
         12.11        Claims Procedure.........................................................................  47
         12.12        Recordkeeper.............................................................................  47
         12.13        Administrative Expenses..................................................................  47

ARTICLE XIII          Discontinuing Participation and Right of Company to Amend or Terminate...................  48
         13.1         Discontinuance of Participation By an Employer...........................................  48
         13.2         Amendment................................................................................  48
         13.3         Termination..............................................................................  48
         13.4         Plan Merger..............................................................................  49

ARTICLE XIV           Miscellaneous............................................................................  50
         14.1         Appropriate Forms and Filing with Committee..............................................  50
         14.2         Governing Laws...........................................................................  50
         14.3         Separability.............................................................................  50
         14.4         Captions.................................................................................  50
         14.5         Limitation of Liability..................................................................  50
         14.6         Construction.............................................................................  50
         14.7         Action by Employers......................................................................  51
</TABLE>

                                      -iv-

<PAGE>   62
<TABLE>
<CAPTION>
                               Table of Contents
                                  (continued)

                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
ARTICLE XV            "Top-Heavy" Provisions...................................................................  52
         15.1         Applicable Plans.........................................................................  52
         15.2         Key Employee.............................................................................  52
         15.3         Top Heavy Condition......................................................................  53
         15.4         Determination Date.......................................................................  53
         15.5         Valuation................................................................................  53
         15.6         Distribution within Five Years...........................................................  53
         15.7         No Services within Five Years............................................................  53
         15.8         Compliance with Code Section 416.........................................................  53
         15.9         Deductible Employee Contributions........................................................  53
         15.10        Beneficiaries............................................................................  53
         15.11        Accrued Benefit Under Defined Benefit Plans..............................................  53
         15.12        Provisions Applicable in "Top-Heavy" Years...............................................  54
</TABLE>

                  Supplement A
Supplement B
Supplement C
Supplement D

                                       -v-
<PAGE>   63

                                  SUPPLEMENT A

                                     TO THE

                           LIZ CLAIBORNE SAVINGS PLAN

                 Special Provisions Applicable to Former Members
               of the Liz Claiborne Profit Sharing Retirement Plan

     This  Supplement A sets forth special  provisions of the Plan that apply to
certain  individuals  who  participated  in the  Liz  Claiborne  Profit  Sharing
Retirement  Plan (the  "Profit-Sharing  Plan"),  the assets of which were merged
into this Plan as of December 31, 1999.

     A-1 Special Definitions. For purposes of this Supplement A:

          (a) "Company" means Liz Claiborne, Inc., a Delaware corporation.

          (b) "Merger"  means the transfer of assets of the Profit  Sharing Plan
     to this Plan effective as of December 31, 1999.

          (c) "Profit Sharing  Participant" means an individual who had a Profit
     Sharing Account as of December 31, 1999.

          (d) "Profit  Sharing Plan" means the Profit Sharing Plan, as in effect
     through December 31, 1999.

          (e) "Transferred  Profit Sharing Account" means the account maintained
     under the Profit  Sharing Plan for a Profit  Sharing Member on December 31,
     1999.

     A-2  Participation in Plan Effective  January 1, 2000.  Profit Sharing Plan
Participants automatically become Members of the Plan effective January 1, 2000.

     A-3 Merger.  Effective as of December  31,  1999,  the assets of the Profit
Sharing  Plan  and  effective  as of  January  1,  2000 the  terms of this  Plan
supersede in all  respects the terms of the Profit  Sharing Plan with respect to
the Profit Sharing Accounts transferred to the Plan.

     A-4 Transfer of Accounts.  Each Profit Sharing  Account  transferred to the
Plan shall be held in a subaccount of the Profit Sharing  Contributions  Account
established for each Participant under the Plan.

     A-5  Investment  of  Transferred  Accounts.   During  a  transition  period
commencing on the Merger date and ending as soon as practicable  thereafter,  as
determined by the Committee in its sole discretion,  Transferred  Profit Sharing
Accounts shall be invested in such manner as the Committee prescribes. After the
transition period, any reallocation of the investment of such accounts,  as well
as the  investment  direction  for any  future  contributions  allocated  to the
Participant's Profit Sharing Contributions  Account, shall be in accordance with
the provisions of the Plan.

     A-6  Pre-Merger  Elections  and  Designations.  Notwithstanding  any  other
provision of this Plan, withdrawals or distributions already in process prior to
the Merger Date on account of deaths,  terminations of employment or participant
requests under the Profit

                                       -i-
<PAGE>   64

Sharing Plan shall continue to be processed  under the applicable  procedures of
the Profit Sharing Plan.

     A-7 Post-Merger  Beneficiary  Designation.  Beneficiary  designations  made
under the Profit  Sharing Plan on or before  December 31, 1999 by Profit Sharing
Participants  shall be of no effect with respect to participation in the Plan on
and after January 1, 2000, as of which date only beneficiary  designations  made
under the Plan shall be given effect.

     A-8 1999  Contribution.  Prior to the filing  deadline for its 1999 federal
income tax return, the Company, in its sole discretion,  may make a contribution
to the Profit Sharing Plan with respect to each Profit Sharing  Participant  who
was  eligible  to share in such a  contribution  under  Article IV of the Profit
Sharing Plan, by paying such  contribution  into the Plan as the continuation of
the Profit  Sharing  Plan by reason of the Merger.  Such  contribution  shall be
allocated  among  such  Profit  Sharing  Participants  in  accordance  with  the
provisions of the Profit Sharing Plan governing  contributions for the 1999 Year
and  accounted  for  under  the  Plan  in  the   Participant's   Profit  Sharing
Contributions Account.

     A-9 Profit Sharing Plan Amended.  The provisions of this Supplement A shall
be treated as an amendment to and part of the Profit Sharing Plan, to the extent
necessary to give full effect to this Supplement.  All provisions of the Plan as
the  continuation  and amendment of the Profit Sharing Plan, shall be treated as
effective  with  respect to the Profit  Sharing  Plan for  periods  prior to the
Merger to the extent  necessary for the Profit  Sharing Plan to meet  applicable
requirements  of all  provisions  of law that  become  effective  since the last
determination  letter with respect to the Profit  Sharing  Plan  effective as of
their  respective  effective dates,  including,  without  limitation,  the Small
Business Job  Protection  Act of 1996  ("SBJPA"),  the Uruguay Round  Agreements
("GATT"),  the Taxpayer Relief Act of 1997, and the IRS Restructuring and Reform
Act of 1998.

                                      -ii-
<PAGE>   65

                                  SUPPLEMENT B

                                     TO THE

                           LIZ CLAIBORNE SAVINGS PLAN

       Special Provisions Applicable to Employees of Lucky Brand Dungarees

     This  Supplement B sets forth special  provisions of the Plan that apply to
(a) certain employees of Lucky Brand Dungarees,  Inc.  ("Lucky") and (b) certain
other  individuals  who had  undistributed  accounts  under  the  Lucky  Plan on
December 31,  1999.  Except as otherwise  defined  below,  the terms used herein
shall have the meanings set forth in the Plan.

     B-1 Special Definitions. For purposes of this Supplement B:

          (a) "Lucky  Accounts" means the account or accounts  maintained  under
     the Lucky Plan for a Lucky Participant on December 31, 1999.

          (b) "Lucky Participant" means an individual who had a Lucky Account on
     December 31, 1999.

          (c) "Lucky Plan" means the Lucky Brand Employee  Retirement  Plan, and
     Trust as in effect through December 31, 1999.

          (d)  "Merger"  means the  transfer of assets of the Lucky Plan to this
     Plan effective December 31, 1999.

     B-2 Merger. Effective as of December 31, 1999, the assets of the Lucky Plan
are merged into this Plan and the trust  thereunder,  and the terms of this Plan
supersede the terms of the Lucky Plan with respect to the Lucky Accounts.

     B-3 Requirement for  Participation  Effective January 1, 2000 for Tax-Saver
and  Matching  Contributions.  The  following  rules  modify the  provisions  of
paragraph 3.1(f) of the Plan with respect to Lucky Participants.

          (a) Any  individual  who was a Lucky  Participant on December 31, 1999
     shall automatically become a Participant on January 1, 2000 with respect to
     the Tax Saver and Matching Contributions portions of the Plan.

          (b) Any  individual  who was not a Lucky  Participant  on December 31,
     1999,  but who was on the Lucky  payroll on that date and was  eligible  to
     join the Lucky  Plan on  January 1, 2000,  shall  instead  be  eligible  to
     participate  in the Tax Saver and  Matching  Contributions  portions of the
     Plan on January 1, 2000.

          (c) Any other  individual who was on the Lucky payroll on December 31,
     1999  shall be  eligible  to  participate  in the Tax  Saver  and  Matching
     Contributions  portions  of the Plan on the first day of the month after he
     reaches age 21 and completes 90 days of service.

The eligibility for Plan  participation  of an individual  whose date of hire by
Lucky is after December 31, 1999 shall be determined  solely in accordance  with
the normal provisions of the Plan.

     B-4 Profit Sharing Participation. A Lucky employee shall participate in the
Profit Sharing  portion of the Plan as of the first day of the month on or after
January 1, 2000 after he has  satisfied the  requirements  of Section 3.1 of the
Plan. For purposes of paragraph

<PAGE>   66

3.1(f) (iii), service with Lucky both before and after the Merger shall be taken
into account in determining whether he has one Year of Eligibility Service. Once
he has become a Participant  with respect to the Profit  Sharing  portion of the
Plan,  such  an  individual  shall  be  eligible  to  share  in  Profit  Sharing
Contributions  only if he meets the requirements  therefor under Section 4.14 of
the Plan.

     B-5 Transfer of Accounts.  Upon transfer to the Plan, a Participant's Lucky
Accounts, if any, shall be allocated as follows: amounts in his Elective Account
under the Lucky Plan shall be transferred to a Tax-Saver  Contributions Account,
amounts  in  his  Participant's   Account   attributable  to  employer  matching
contributions shall be transferred to a Matching  Contributions Account, and any
amounts in a Participant's  Rollover  Account shall be transferred to a Rollover
Account.

     B-6  Investment  of  Transferred  Accounts.   During  a  transition  period
commencing on the Merger date and ending as soon as practicable  thereafter,  as
determined by the Committee in its sole discretion,  Transferred  Lucky Accounts
shall be invested in such manner as the Committee  prescribes.  After the end of
the transition period,  any reallocation of the investment of such accounts,  as
well as the investment direction for any future  contributions  allocated to the
Participant's Accounts,  shall be made in accordance with the rules of the Plan.
No transactions,  including  withdrawals or loans, shall be processed during the
foregoing transition period except as provided in subsection B-11.

     B-7 Vesting in Matching Contributions Account.  Individuals who were on the
Lucky  payroll on December 31, 1999 shall vest in their  Matching  Contributions
Accounts (with regard to contributions made both before and after the Merger) in
accordance with the following vesting schedule:

<TABLE>
<CAPTION>
       Years of Vesting Service                  Vested Percentage
<S>                                              <C>
                   1                                    20%

                   2                                    40%

                   3                                    60%

                   4                                    80%

                   5                                    100%
</TABLE>

     B-8 Vesting in Profit Sharing  Contributions  Account.  With respect to any
individual who was on the Lucky payroll on December 31, 1999, the vested portion
of any Profit  Sharing  Contributions  Account shall be determined in accordance
with the normal rules of the Plan; provided,  however, that in determining which
vesting  schedule  under  paragraph  (b) or (c) of Section 7.1 shall apply,  the
individual's  date of hire  by  Lucky  shall  be  used  in  determining  when an
individual is first credited with an "Hour of Service."

     B-9  Calculation  of Service  for Vesting in  Matching  and Profit  Sharing
Contributions  Accounts.  For any  individual  who was on the Lucky  payroll  on
December 31, 1999,  "Years of Vesting  Service" for purposes of calculating  the
vested  portion  of  his  Profit  Sharing  Contributions  Account  and  Matching
Contributions Account shall be calculated in

                                       -2-
<PAGE>   67

accordance with the Plan; provided,  however,  that employment before the Merger
shall be taken into account in determining Years of Vesting Service as though it
were  employment  with an  Affiliate,  except  that the first  date that a Lucky
Participant  has an "Hour of  Service"  shall be  deemed to be (i) June 1 of the
calendar  year of his actual  date of hire by Lucky if such  actual date of hire
was  August 1 or  later,  or (ii)  June 1 of the  calendar  year  preceding  the
calendar  year of his actual  date of hire by Lucky if such  actual date of hire
was before August 1s.

     B-10 Post-Merger Beneficiary Designation Required. Beneficiary designations
made under the Lucky Plan through December 31, 1999 by Lucky  Participants shall
be of no effect with respect to  participation  in the Plan on and after January
1, 2000,  as of which  date only  beneficiary  designations  made under the Plan
shall be given effect.

     B-11  Pre-Merger  Elections  and  Designations.  Notwithstanding  any other
provision of this Plan,  withdrawals,  distributions or loans already in process
prior to the  Merger  on  account  of  deaths,  terminations  of  employment  or
participant  requests under the Lucky Plan shall continue to be processed  under
the applicable procedures of the Lucky Plan.

     B-12  Contributions.  Prior to the  filing  deadline  for its 1999  federal
income tax, Lucky may, in its sole discretion,  make a contribution to the Lucky
Plan for the 1999 Plan Year  with  respect  to each  Lucky  Participant  who was
eligible to share in such  contribution  under the terms of the Lucky  Plan,  by
paying such  contribution into the Plan as the continuation of the Lucky Plan by
reason of the Merger.  Such  contribution  shall be  allocated  among such Lucky
Participants  in  accordance  with the  provisions  of the Lucky Plan  governing
contributions  for the 1999  Plan Year and  accounted  for under the Plan in the
Participant's Matching Contributions Account.

     B-13 Lucky Plan  Amended.  The  provisions  of this  Supplement  B shall be
treated as an amendment to and part of the Lucky Plan to the extent necessary to
give full effect to this Supplement. All provisions of the Plan, in its capacity
as a continuation and amendment of the Lucky Plan, shall be treated as effective
with  respect  to the Lucky Plan for  periods  prior to the Merger to the extent
necessary for the Lucky Plan to meet applicable  requirements of law that became
effective  since the last  determination  letter with respect to the Lucky Plan,
effective as of their respective effective dates, including, without limitation,
the Small  Business Job  Protection  Act of 1996  ("SBJPA"),  the Uruguay  Round
Agreements  Act  ("GATT"),  the  Taxpayer  Relief  Act  of  1997,  and  the  IRS
Restructuring and Reform Act of 1998.

                                       -3-
<PAGE>   68

                                  SUPPLEMENT C

                                     TO THE

                           LIZ CLAIBORNE SAVINGS PLAN

           Special Provisions Applicable to Employees of Segrets, Inc.

     This  Supplement C sets forth special  provisions of the Plan that apply to
(a) certain employees of Segrets, Inc. ("Segrets") and (b) other individuals who
had  undistributed  accounts under the Segrets Plan on December 31, 1999. Except
as otherwise  defined  below,  the terms used herein shall have the meanings set
forth in the Plan.

     C-1 Special Definitions. For purposes of this Supplement C:

          (a) "Segrets Accounts" means the account or accounts  maintained under
     the Segrets Plan for a Segrets Participant on December 31, 1999.

          (b)  "Segrets  Participant"  means  an  individual  who had a  Segrets
     Account on December 31, 1999.

          (c) "Segrets Plan" means the Segrets,  Inc.  401(k) Plan, as in effect
     through December 31, 1999.

          (d) "Merger"  means the transfer of assets of the Segrets Plan to this
     Plan effective as of December 31, 1999.

     C-2 Merger.  Effective as of December  31, 1999,  the assets of the Segrets
Plan are merged into this Plan and the trust  thereunder,  and the terms of this
Plan  supersede  the terms of the  Segrets  Plan  with  respect  to the  Segrets
Accounts.

     C-3 Segrets  Employees  Eligible to Join the Plan Effective January 1, 2000
for Purposes of Tax-Saver and Matching Contributions. The following rules modify
the  provisions  of  paragraph  3.1(f)  of the  Plan  with  respect  to  Segrets
Participants.

          (a) Any individual who was a Segrets  Participant on December 31, 1999
     shall  automatically  become a  Participant  in the Tax Saver and  Matching
     Contributions portions of the Plan on January 1, 2000.

          (b) Any individual  who was not a Segrets  Participant on December 31,
     1999,  but who was on the Segrets  payroll on that date and was eligible to
     join the  Segrets  Plan on January 1, 2000,  shall  instead be  eligible to
     participate  in the Tax Saver and  Matching  Contributions  portions of the
     Plan on January 1, 2000.

          (c) Any other  individual  who was on the Segrets  payroll on December
     31, 1999 shall be eligible to join the Tax Saver and Matching Contributions
     portions  of the Plan on the first day of the month after he or she reaches
     age 18 and completes one Year of Eligibility Service.

<PAGE>   69

The eligibility for Plan  participation  of an individual  whose date of hire by
Segrets is after December 31, 1999 shall be determined solely in accordance with
the normal provisions of the Plan.

     C-4 Profit Sharing  Participation A Segrets  employee shall  participate in
the  Profit  Sharing  portion of the Plan as of the first day of the month on or
after January 1, 2000 after he has satisfied  the  requirements  of Section 3.1.
For  purposes of  paragraph  3.1(f)(iii),  service  with Segrets both before and
after the Merger shall be taken into account in  determining  whether he has one
Year of  Eligibility  Service.  Once he has become a  Participant  in the Profit
Sharing  portion of the Plan,  such an individual  shall be eligible to share in
the  Profit  Sharing  Contribution  for  a  Plan  Year  only  if  he  meets  the
requirements of Section 4.14 for that Plan Year.

     C-5  Transfer  of  Accounts.  Upon  transfer to the Plan,  a  Participant's
Segrets Accounts, if any, shall be allocated as follows: amounts attributable to
Salary Reduction  Contributions will be transferred to a Tax-Saver Contributions
Account,  amounts  attributable  to  employer  Matching  Contributions  will  be
transferred to a Matching Contributions Account, and any amounts attributable to
a participant Rollover Contribution will be transferred to a Rollover Account.

     C-6  Investment  of  Transferred  Accounts.   During  a  transition  period
commencing on the Merger date and ending as soon as practicable  thereafter,  as
determined by the Committee in its sole discretion, Transferred Segrets Accounts
shall be invested in such manner as the Committee  prescribes.  After the end of
the transition  period any  reallocation of the investment of such accounts,  as
well as the investment direction for any future  contributions  allocated to the
Participant's  accounts,  shall be in accordance  with the rules of the Plan. No
transactions  shall  be  processed  during  the  transition   period,   such  as
withdrawals,  investments  changes or loans,  except as provided  in  subsection
C-10.

     C-7 Vesting in Profit Sharing  Contributions  Account.  With respect to any
individual  who was on the Segrets  payroll on  December  31,  1999,  the vested
portion of any Profit  Sharing  Contributions  Account  shall be  determined  in
accordance  with  the  normal  rules of the  Plan;  provided,  however,  that in
determining  which vesting  schedule  under  paragraph (b) or (c) of Section 7.1
shall  apply,  the  individual's  date  of  hire  by  Segrets  shall  be used in
determining when an individual is first credited with an "Hour of Service."

     C-8  Calculation  of Service  for Vesting in Profit  Sharing  and  Matching
Contributions  Accounts.  With respect to any  individual who was on the Segrets
payroll on  December  31,  1999,  "Years of Vesting  Service"  for  purposes  of
calculating the vested portion of his Profit Sharing and Matching  Contributions
Accounts  shall be calculated in accordance  with the Plan;  provided,  however,
that  employment  with Segrets  before the Merger shall be taken into account in
determining  Years of  Vesting  Service  as  though it were  employment  with an
Affiliate,  except that the first date for which such an individual has an "Hour
of Service"  shall be deemed to be (i) June 1 of the calendar year of his actual
date of hire if such actual  date of hire was August 1 or later,  or (ii) June 1
of the calendar  year  preceding the calendar year of his actual date of hire if
such actual date of hire was before August .

     C-9 Post-Merger Beneficiary Designation Required.  Beneficiary designations
made under the Segrets  Plan through  December 31, 1999 by Segrets  Participants
shall be of no

                                       -2-
<PAGE>   70

effect with respect to the Plan on and after  January 1, 2000,  as of which date
only beneficiary designations made under the Plan shall be given effect.

     C-10  Pre-Merger  Elections  and  Designations.  Notwithstanding  any other
provision of this Plan,  withdrawals,  distributions or loans already in process
prior to the  Merger  on  account  of  deaths,  terminations  of  employment  or
participant  requests  under the Segrets Plan shall  continue to be processed in
accordance with the applicable provisions of the Segrets Plan.

     C-11  Contributions.  Prior to the  filing  deadline  for its 1999  federal
income tax return,  Segrets, in its sole discretion,  may make a contribution to
the Segrets Plan with respect to each  Segrets  Participant  who was eligible to
share in such contribution under section 4.04 of the Segrets Plan by paying such
contribution  into the Plan as the continuation of the Segrets Plan by reason of
the Merger. Such contribution shall be allocated among such Segrets Participants
in accordance  with the provisions of the Segrets Plan  governing  contributions
for the 1999 Plan  Year and  accounted  for under the Plan in the  Participant's
Matching Contributions Account.

     C-12 Segrets Plan Amended.  The  provisions  of this  Supplement C shall be
treated as an amendment to and part of the Segrets Plan to the extent  necessary
to give full  effect to this  Supplement.  All  provisions  of the Plan,  in its
capacity as a continuation  and amendment of the Segrets Plan,  shall be treated
as effective with respect to the Segrets Plan for periods prior to the Merger to
the extent necessary for the Segrets Plan to meet applicable requirements of law
that became  effective since the last  determination  letter with respect to the
Segrets  Plan,  effective as of their  respective  effective  dates,  including,
without limitation, the Small Business Job Protection Act of 1996 ("SBJPA"), the
Uruguay Round Agreements Act ("GATT"),  the Taxpayer Relief Act of 1997, and the
IRS Restructuring and Reform Act of 1998.

                                       -3-
<PAGE>   71

                                  SUPPLEMENT D

                                     TO THE

                           LIZ CLAIBORNE SAVINGS PLAN

              Special Provisions Applicable to Former Participants
            in the Podell Industries, Inc. 401(k) Profit Sharing Plan

     This  Supplement D sets forth special  provisions of the Plan that apply to
individuals  who had account  balances  under the Laundry Plan on April 1, 2000.
Except as otherwise defined below, the terms used herein shall have the meanings
set forth elsewhere in the Plan.

     D-1 Special Definitions. For purposes of this Supplement D:

          (a)  "Laundry"  means  Podell  Industries,  Inc.  and  its  subsidiary
     Laundry, Inc.

          (b) "Laundry Accounts" means the account or accounts  maintained under
     the Laundry Plan for a Laundry Participant on April 1, 2000.

          (c)  "Laundry  Participant"  means  an  individual  who had a  Laundry
     Account on April 1, 2000.

          (d) "Laundry  Plan" means the Podell  Industries,  Inc.  401(k) Profit
     Sharing Plan, as in effect through April 1, 2000.

          (e) "Merger"  means the transfer of assets of the Laundry Plan to this
     Plan effective as of April 1, 2000.

     D-2. Merger.  Effective as of April 1, 2000, the assets of the Laundry Plan
are merged into this Plan and the trust  thereunder and effective as of April 1,
2000 the terms of this Plan  supersede  in all respects the terms of the Laundry
Plan with respect to the Laundry Accounts transferred to the Plan.

     D-3.  Eligibility.  The following  rules modify the provisions of paragraph
3.1(f) of the Plan with respect to Laundry Participants.

          (a) Any  individual  who was a Laundry  Participant  on March 31, 2000
     shall  automatically  become a Participant in the Plan on April 1, 2000 for
     purposes of making Tax Saver Contributions.

          (b) Any  individual  who was not a  Laundry  Participant  on March 31,
     2000, but who was on the Laundry  payroll on that date shall be eligible to
     participate in the Plan for purposes of making Tax Saver  Contributions  on
     the date on or after April 1, 2000 on which he  satisfies  the  eligibility
     requirements  set  forth in the  Laundry  Plan as of March  31,  2000.  For
     purposes of this paragraph (b), service with Laundry or another Employer or
     Affiliate  after the Merger  will be counted in the same  manner as service
     with Laundry prior to the Merger.

          (c) The eligibility for Plan participation of an individual whose date
     of hire by Laundry is after  March 31, 2000 shall be  determined  solely in
     accordance with the regular provisions of the Plan.

<PAGE>   72

          (d)  Participation  in the Plan for  purposes  of  receiving  Matching
     Contributions  and Profit Sharing  Contributions  shall be determined under
     Section 3.1,  except that service with Laundry prior to its  acquisition by
     the Company shall be deemed to be service with an Affiliate.

     D-4  Transfer  of  Accounts.  Upon  transfer to the Plan,  a  Participant's
Laundry Accounts, if any, shall be allocated as follows: amounts in his Deferral
Contributions Account under the Laundry Plan shall be transferred to a Tax-Saver
Contributions  Account,  amounts in his Regular Matching  Contributions  Account
shall be  transferred  to a  Matching  Contributions  Account,  and any  amounts
attributable  to a  rollover  contribution  shall be  transferred  to a Rollover
Account.

     D-5  Investment  of  Transferred   Amounts.   During  a  transition  period
commencing on the Merger date and ending as soon as practicable  thereafter,  as
determined by the Committee in its sole discretion, Transferred Laundry Accounts
shall be invested in such manner as the Committee  prescribes.  After the end of
the transition period,  Participants may elect to have such accounts reallocated
among the Investment Funds in accordance with the normal provisions of the Plan.
No  transactions,  such as withdrawals or loans,  shall be processed  during the
transition period except as provided in subsection D-11.

     D-6 Vesting in Matching Contributions Account.  Individuals who were on the
Laundry payroll on June 30, 2000 shall be vested in their Matching Contributions
Account (with regard to contributions  made both before and after the Merger) in
accordance with the following vesting schedule.

<TABLE>
<CAPTION>
         Years of Service          Vested Percentage

<S>                                <C>
            less than 2                     0%

                  2                       33-1/3%

                  3                       66-2/3%

              4 or more                    100%
</TABLE>

     D-7 Calculation of Service for Vesting in Matching  Contributions  Account.
With respect to any individual who was on the Laundry payroll on March 31, 2000,
"Years of Vesting Service" for purposes of calculating the vested portion of his
Matching  Contributions Account shall be calculated in accordance with the Plan;
provided,  however,  that for this purpose (a) employment  both before and after
the Merger shall be taken into account, and (b) the first date for which such an
individual  has an "Hour of  Service"  shall be  deemed  to be (i) June 1 of the
calendar  year of his actual date of hire if such actual date of hire was August
1 or later,  or (ii) June 1 of the calendar year  preceding the calendar year of
his actual date of hire if such actual date of hire was before August 1.

     D-8 Vesting in Profit Sharing  Contributions  Account.  With respect to any
individual who was on the Laundry  payroll on March 31, 2000, the vested portion
of any Profit  Sharing  Contributions  Account shall be determined in accordance
with the normal rules of the Plan; provided,  however, that in determining which
vesting  schedule  under  paragraph  (b) or (c) of Section 7.1 shall apply,  the
individual's  date of hire by Laundry shall be used in determining  when such an
individual is first credited with an "Hour of Service."

                                       -5-
<PAGE>   73

     D-9  Calculation  of Service  for  Vesting in Profit  Sharing  Contribution
Account.  For any individual  who was on the Laundry  payroll on March 31, 2000,
"Years of Vesting Service" for purposes of calculating the vested portion of his
Profit Sharing  Contributions Account shall be calculated in accordance with the
Plan; provided,  however, that employment with Laundry both before and after the
Merger shall be taken into account in  determining  such  individual's  Years of
Vesting Service.

     D-10 Post-Merger Beneficiary Designation Required. Beneficiary designations
made under the Laundry Plan through March 31, 2000 by Laundry Participants shall
be of no effect with respect to the Plan on and after April 1, 2000, as of which
date only beneficiary designations made under the Plan shall be given effect.

     D-11  Pre-Merger  Elections  and  Designations.  Notwithstanding  any other
provision of this Plan, withdrawals,  distributions or loans in process prior to
the Merger on account of deaths,  or  terminations  of employment or participant
requests occurring or made prior to April 1, 2000 shall continue to be processed
under the applicable procedures of the Laundry Plan.

     D-12 Laundry Plan Amended.  The  provisions  of this  Supplement D shall be
treated as an amendment to and part of the Laundry Plan, to the extent necessary
to give full  effect to this  Supplement.  All  provisions  of the Plan,  in its
capacity as a continuation  and amendment of the Laundry Plan,  shall be treated
as effective with respect to the Laundry Plan for periods prior to the Merger to
the extent necessary for the Laundry Plan to meet applicable requirements of all
provisions of law that become effective since the last determination letter with
respect to the Laundry Plan effective as of their  respective  effective  dates,
including,  without  limitation,  the Small  Business Job Protection Act of 1996
("SBJPA"),  the Uruguay Round  Agreements  ("GATT"),  the Taxpayer Relief Act of
1997, and the IRS Restructuring and Reform Act of 1998.

                                      -6-

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