Document:

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                                  EXHIBIT 4.4

                        TELECOMMUNICATION SYSTEMS, INC.
                          EMPLOYEE STOCK PURCHASE PLAN

                            EFFECTIVE APRIL 11, 2000

         The Plan provides eligible employees of TeleCommunication Systems,
Inc. (the "CORPORATION") and certain of its subsidiaries with opportunities to
purchase shares of the Corporation's Class A Common Stock, $0.01 par value per
share (the "COMMON STOCK"). The Plan is intended to benefit the Corporation by
increasing the employees' interest in the Corporation's growth and success and
encouraging employees to remain in the employ of the Corporation or its
participating subsidiaries. The Plan is intended to constitute an "employee
stock purchase plan" within the meaning of section 423 of the Internal Revenue
Code of 1986, as amended (the "CODE"), and shall be so applied and interpreted.

         1.       Shares Subject to the Plan. Subject to adjustment as provided
herein, the aggregate number of shares of Common Stock that may be made
available for purchase under the Plan is 684,932 shares. The shares purchased
under the Plan may, in the discretion of the Board of Directors of the
Corporation (the "BOARD"), be authorized but unissued shares of Common Stock,
shares purchased on the open market, or shares from any other proper source.

         2.       Administration. The Plan will be administered by the Board or
by a committee appointed by the Board (the "ADMINISTRATOR"). The Administrator
has authority to interpret the Plan, to make, amend and rescind all rules and
regulations for the administration and operation of the Plan, and to make all
other determinations necessary or desirable in administering and operating the
Plan, all of which will be final and conclusive. No member of the Administrator
shall be liable for any action or determination made in good faith with respect
to the Plan.

         3.       Eligibility. All employees of the Corporation, including
directors who are employees, and all employees of any subsidiary of the
Corporation (as defined in Code section 424(f)), now or hereafter existing,
that is designated by the Administrator from time to time as a participating
employer under the Plan (a "DESIGNATED SUBSIDIARY"), are eligible to
participate in the Plan, subject to such further eligibility requirements as
may be specified by the Administrator consistent with Code section 423.

         4.       Options to Purchase Common Stock.

         (a)      Options ("OPTIONS") will be granted pursuant to the Plan to
each eligible employee on the first day on which the National Association of
Securities Dealers Automated Quotation ("NASDAQ") system is open for trading
("TRADING DAY") on or after January 1 of each year commencing on or after the
Effective Date (as defined in Section 18), or such other date specified by the
Administrator. Each Option will terminate on the last Trading Day of a period
specified by the Administrator (each such period referred to herein as an
"OPTION PERIOD"). No Option Period shall be longer than 27 months in duration.
Unless the Administrator determines otherwise, subsequent Option Periods of
equal duration will follow consecutively thereafter, each commencing on the
first Trading Day immediately after the expiration of the preceding Option
Period.

         (b)      An individual must be employed as an eligible employee by the
Corporation or a Designated Subsidiary on the first Trading Day of an Option
Period in order to be granted an Option for that Option Period. However, the
Administrator may designate any subsequent Trading Day(s) (each such designated
Trading Day referred to herein as an "INTERIM TRADING DAY") in an Option Period
upon

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which Options will be granted to eligible employees who first commence
employment with, or first become eligible employees of, the Corporation or a
Designated Subsidiary after the first Trading Day of the Option Period. In such
event, the Interim Trading Day shall constitute the first Trading Day of the
Option Period for all Options granted on such day for all purposes under the
Plan.

         (c)      Each Option represents a right to purchase on the last
Trading Day of the Option Period or on one or more Trading Days within the
Option Period designated by the Administrator (each such designated Trading Day
and the last Trading Day of the Option Period, a "PURCHASE DATE"), at the
Purchase Price hereinafter provided for, whole shares of Common Stock up to
such maximum number of shares specified by the Administrator on or before the
first day of the Option Period. All eligible employees granted Options under
the Plan for an Option Period shall have the same rights and privileges with
respect to such Options. The purchase price of each share of Common Stock (the
"PURCHASE PRICE") subject to an Option will be determined by the Administrator,
in its discretion, on or before the beginning of the Option Period; provided,
however, that the Purchase Price for an Option with respect to any Option
Period shall never be less than the lesser of 85 percent of the Fair Market
Value of the Common Stock on (i) the first Trading Day of the Option Period or
(ii) the Purchase Date, and shall never be less than the par value of the
Common Stock.

         (d)      For purposes of the Plan, "FAIR MARKET VALUE" on a Trading
Day means the average of the high and low sale prices per share of Common Stock
as reflected on the principal consolidated transaction reporting system for
securities listed on any national securities exchange or other market quotation
system on which the Common Stock may be principally listed or quoted or, if
there are no transactions on a Trading Day, then such average for the preceding
Trading Day upon which transactions occurred. However, for the Trading Day that
occurs on the date of the initial public offering of the Common Stock, "Fair
Market Value" shall mean the initial offering price of the Common Stock to the
public as indicated in the Corporation's final prospectus in connection with
such offering and as such price is negotiated between the Corporation and the
managing underwriters.

         (e)      Notwithstanding any provision in this Plan to the contrary,
no employee shall be granted an Option under this Plan if such employee,
immediately after the Option would otherwise be granted, would own 5% or more
of the total combined voting power or value of the stock of the Corporation or
any subsidiary. For purposes of the preceding sentence, the attribution rules
of Code section 424(d) will apply in determining the stock ownership of an
employee, and all stock which the employee has a contractual right to purchase
will be treated as stock owned by the employee.

         (f)      Notwithstanding any provision in this Plan to the contrary,
no employee may be granted an Option which permits his rights to purchase
Common Stock under this Plan and all other stock purchase plans of the
Corporation and its subsidiaries to accrue at a rate which exceeds $25,000 of
the fair market value of such Common Stock (determined at the time such Option
is granted) for each calendar year in which the Option is outstanding at any
time, as required by Code section 423.

         5.       Payroll Deductions and Cash Contributions.

         To facilitate payment of the Purchase Price of Options, the
Administrator, in its discretion, may permit eligible employees to authorize
payroll deductions to be made on each payday during the Option Period, and/or
to contribute cash or cash-equivalents to the Corporation, up to a maximum
amount determined by the Administrator. The Corporation will maintain
bookkeeping accounts for all employees who authorize payroll deduction or make
cash contributions. Interest will not be paid on any employee accounts, unless
the Administrator determines otherwise. The Administrator shall establish rules
and procedures, in its discretion, from time to time regarding elections to
authorize payroll deductions, changes in such elections, timing and manner of
cash contributions, and withdrawals from employee

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accounts. Amounts credited to employee accounts on the Purchase Date will be
applied to the payment of the Purchase Price of outstanding Options pursuant to
Section 6 below.

         6.       Exercise of Options; Purchase of Common Stock. Options shall
be exercised at the close of business on the Purchase Date. In accordance with
rules established by the Administrator, the Purchase Price of Common Stock
subject to an option shall be paid (i) from funds credited to an eligible
employee's account, (ii) by a broker-assisted cashless exercise in accordance
with Regulation T of the Board of Governors of the Federal Reserve System, or
(iii) by such other method as the Administrator shall determine from time to
time. Options shall be exercised only to the extent the purchase price is paid
with respect to whole shares of Common Stock. Any balance remaining in an
employee's account on a Purchase Date after such purchase of Common Stock will
be carried forward automatically into the employee's account for the next
Purchase Date or Option Period, as applicable, unless the employee is not an
eligible employee with respect to the next Purchase Date or Option Period, as
applicable, in which case such amount will be promptly refunded.

         7.       Issuance of Certificates. As soon as practicable following
each Purchase Date, certificates representing shares of Common Stock purchased
under the Plan will be issued only in the name of the employee, in the name of
the employee and another person of legal age as joint tenants with rights of
survivorship, or (in the Administrator's sole discretion) in the street name of
a brokerage firm, bank or other nominee holder designated by the employee or
the Administrator.

         8.       Rights on Retirement, Death, Termination of Employment, or
Termination of Status as Eligible Employee. In the event of an employee's
termination of employment or termination of status as an eligible employee
prior to a Purchase Date (whether as a result of the employee's voluntary or
involuntary termination, retirement, death or otherwise), any outstanding
Option granted to him will immediately terminate, no further payroll deduction
will be taken from any pay due and owing to the employee and the balance in the
employee's account will be paid to the employee or, in the event of the
employee's death, (a) to the executor or administrator of the employee's estate
or (b) if no such executor or administrator has been appointed to the knowledge
of the Administrator, to such other person(s) as the Administrator may, in its
discretion, designate. If, prior to a Purchase Date, the Designated Subsidiary
by which an employee is employed will cease to be a subsidiary of the
Corporation, or if the employee is transferred to a subsidiary of the
Corporation that is not a Designated Subsidiary, the employee will be deemed to
have terminated employment for the purposes of this Plan.

         9.       Optionees Not Stockholders. Neither the granting of an Option
to an employee nor the deductions from his pay will constitute such employee a
stockholder of the shares of Common Stock covered by an Option under this Plan
until such shares have been purchased by and issued to him.

         10.      Options Not Transferable.  Options under this Plan are not
transferable by a participating employee other than by will or the laws of
descent and distribution, and are exercisable during the employee's lifetime
only by the employee.

         11.      Withholding of Taxes. To the extent that a participating
employee realizes ordinary income in connection with the purchase, sale or
other transfer of any shares of Common Stock purchased under the Plan or the
crediting of interest to the employee's account, the Corporation may withhold
amounts needed to cover such taxes from any payments otherwise due and owing to
the participating employee or from shares that would otherwise be issued to the
participating employee hereunder. Any participating employee who sells or
otherwise transfers shares purchased under the Plan must, within 30 days of
such sale or transfer, notify the Corporation in writing of the sale or
transfer.

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         12.      Application of Funds. All funds received or held by the
Corporation under the Plan may be used for any corporate purpose until applied
to the purchase of Common Stock and/or refunded to participating employees and
can be commingled with other general corporate funds. Participating employees'
accounts will not be segregated.

         13.      Effect of Changes in Capitalization.

         (a)      Changes in Stock. If the number of outstanding shares of
Common Stock is increased or decreased or the shares of Common Stock are
changed into or exchanged for a different number or kind of shares or other
securities of the Corporation by reason of any recapitalization,
reclassification, stock split, reverse split, combination of shares, exchange
of shares, stock dividend, or other distribution payable in capital stock, or
other increase or decrease in such shares effected without receipt of
consideration by the Corporation occurring after the effective date of the
Plan, the number and kind of shares that may be purchased under the Plan shall
be adjusted proportionately and accordingly by the Corporation. In addition,
the number and kind of shares for which Options are outstanding shall be
similarly adjusted so that the proportionate interest, if any, of a
participating employee immediately following such event shall, to the extent
practicable, be the same as immediately prior to such event. Any such
adjustment in outstanding Options shall not change the aggregate Purchase Price
payable by a participating employee with respect to shares subject to such
Options, but shall include a corresponding proportionate adjustment in the
Purchase Price per share.

         (b)      Reorganization in Which the Corporation Is the Surviving
Corporation. Subject to Subsection (c) of this Section 13, if the Corporation
shall be the surviving corporation in any reorganization, merger or
consolidation of the Corporation with one or more other corporations, all
outstanding Options under the Plan shall pertain to and apply to the securities
to which a holder of the number of shares of Common Stock subject to such
Options would have been entitled immediately following such reorganization,
merger or consolidation, with a corresponding proportionate adjustment of the
Purchase Price per share so that the aggregate Purchase Price thereafter shall
be the same as the aggregate Purchase Price of the shares subject to such
Options immediately prior to such reorganization, merger or consolidation.

         (c)      Reorganization in Which the Corporation Is Not the Surviving
Corporation or Sale of Assets or Stock. Upon any dissolution or liquidation of
the Corporation, or upon a merger, consolidation or reorganization of the
Corporation with one or more other corporations in which the Corporation is not
the surviving corporation, or upon a sale of all or substantially all of the
assets of the Corporation to another corporation, or upon any transaction
(including, without limitation, a merger or reorganization in which the
Corporation is the surviving corporation) approved by the Board that results in
any person or entity owning more than 50 percent of the combined voting power
of all classes of stock of the Corporation, the Plan and all Options
outstanding hereunder shall terminate, except to the extent provision is made
in writing in connection with such transaction for the continuation of the Plan
and/or the assumption of the Options theretofore granted, or for the
substitution for such Options of new Options covering the stock of a successor
corporation, or a parent or subsidiary thereof, with appropriate adjustments as
to the number and kinds of shares and exercise prices, in which event the Plan
and Options theretofore granted shall continue in the manner and under the
terms so provided. In the event of any such termination of the Plan, the Option
Period shall be deemed to have ended on the last Trading Day prior to such
termination, and, unless the Administrator determines otherwise in its
discretion, each participating employee shall have the ability to choose either
to (i) have all monies then credited to such employee's account (including
interest, to the extent any has accrued) returned to such participating
employee or (ii) exercise his Options in accordance with Section 6 on such last
Trading Day; provided, however, that if a participating employee does not
exercise his right of choice, his Options shall be deemed to have been
automatically exercised in accordance with Section 6 on such last Trading Day.
The

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Administrator shall send written notice of an event that will result in such a
termination to all participating employees not later than the time at which the
Corporation gives notice thereof to its stockholders.

         (d)      Adjustments. Adjustments under this Section 13 related to
stock or securities of the Corporation shall be made by the Committee, whose
determination in that respect shall be final, binding, and conclusive.

         (e)      No Limitations on Corporation. The grant of an Option
pursuant to the Plan shall not affect or limit in any way the right or power of
the Corporation to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure or to merge, consolidate, dissolve
or liquidate, or to sell or transfer all or any part of its business or assets.

         14.      Amendment of the Plan. The Board may at any time, and from
time to time, amend this Plan in any respect, except that (a) if the approval
of any such amendment by the stockholders of the Corporation is required by
Code section 423, such amendment will not be effected without such approval,
and (b) in no event may any amendment be made which would cause the Plan to
fail to comply with Code section 423 unless expressly so provided by the Board.

         15.      Insufficient Shares. In the event that the total number of
shares of Common Stock specified in elections to be purchased under any Option
plus the number of shares purchased under all Options previously granted under
this Plan exceeds the maximum number of shares issuable under this Plan, the
Administrator will allot the shares then available on a pro rata basis. Any
funds then remaining in a participating employee's account after purchase of
the employee's pro-rata number of shares will be refunded.

         16.      Termination of the Plan. This Plan may be terminated at any
time by the Board. Except as otherwise provided in Section 13(c) hereof, upon
termination of this Plan all outstanding Options shall immediately terminate
and amounts in the employees' accounts will be promptly refunded.

         17.      Governmental Regulations.

         (a)      The Corporation's obligation to sell and deliver Common Stock
under this Plan is subject to listing on a national stock exchange or quotation
on Nasdaq and the approval of all governmental authorities required in
connection with the authorization, issuance or sale of such stock.

         (b)      The Plan will be governed by the laws of the State of
Maryland, without regard to the conflict of laws principles thereof, except to
the extent that such law is preempted by federal law.

         18.      Effective Date.  The Plan is effective as of the date on
which it was approved by the Board of Directors of the Corporation (the
"EFFECTIVE DATE"), subject to the approval of the stockholders of the
Corporation within 12 months of the effective date.<PAGE>   1

                                                                     EXHIBIT 4.3

                               LANCER CORPORATION

                          EMPLOYEE PROFIT SHARING PLAN

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                                TABLE OF CONTENTS

<TABLE>
<S>                          <C>    <C>
INTRODUCTION

ARTICLE I                           FORMAT AND DEFINITIONS

         Section 1.01        --     Format
         Section 1.02        --     Definitions

ARTICLE II                          PARTICIPATION

         Section 2.01        --     Active Participant
         Section 2.02        --     Inactive Participant
         Section 2.03        --     Cessation Of Participation
         Section 2.04        --     Adopting Employers - Single Plan

ARTICLE III                         CONTRIBUTIONS

         Section 3.01        --     Employer Contributions
         Section 3.01a       --     Rollover Contributions
         Section 3.02        --     Forfeitures
         Section 3.03        --     Allocation
         Section 3.04        --     Contribution Limitation
         Section 3.05        --     Excess Amounts

ARTICLE IV                          INVESTMENT OF CONTRIBUTIONS

         Section 4.01        --     Investment Of Contributions
         Section 4.01a       --     Nvestment In Qualifying Employer Securities

ARTICLE V                           BENEFITS

         Section 5.01        --     Retirement Benefits
         Section 5.02        --     Death Benefits
         Section 5.03        --     Vested Benefits
         Section 5.04        --     When Benefits Start
         Section 5.05        --     Withdrawal Privileges
         Section 5.06        --     Loans To Participants
</TABLE>

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<TABLE>
<S>                          <C>    <C>
ARTICLE VI                          DISTRIBUTION OF BENEFITS

         Section 6.01        --     Automatic Forms Of Distribution
         Section 6.02        --     Optional Forms Of Distribution And Distribution
         Section 6.03        --     Election Procedures
         Section 6.04        --     Notice Requirements

ARTICLE VII                         TERMINATION OF PLAN

ARTICLE VIII                        ADMINISTRATION OF PLAN

         Section 8.01        --     Administration
         Section 8.02        --     Records
         Section 8.03        --     Information Available
         Section 8.04        --     Claim And Appeal Procedures
         Section 8.05        --     Unclaimed Vested Account Procedure
         Section 8.06        --     Delegation Of Authority
         Section 8.07        --     Voting And Tender Of Qualifying Employer Securities

ARTICLE IX                          GENERAL PROVISIONS

         Section 9.01        --     Amendments
         Section 9.02        --     Direct Rollovers
         Section 9.03        --     Mergers And Direct Transfers
         Section 9.04        --     Provisions Relating To The Insurer And Other Parties
         Section 9.05        --     Employment Status
         Section 9.06        --     Rights To Plan Assets
         Section 9.07        --     Beneficiary
         Section 9.08        --     Nonalienation Of Benefits
         Section 9.09        --     Construction
         Section 9.10        --     Legal Actions
         Section 9.11        --     Small Amounts
         Section 9.12        --     Word Usage
         Section 9.13        --     Transfers Between Plans

ARTICLE X                           TOP-HEAVY PLAN REQUIREMENTS

         Section 10.01       --     Application
         Section 10.02       --     Definitions
         Section 10.03       --     Modification Of Vesting Requirements
         Section 10.04       --     Modification Of Contributions
         Section 10.05       --     Modification Of Contribution Limitation

PLAN EXECUTION
</TABLE>

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                                  INTRODUCTION

         The Primary Employer previously established a profit sharing plan on
January 1, 1985.

         The Primary Employer is of the opinion that the plan should be changed.
It believes that the best means to accomplish these changes is to completely
restate the plan's terms, provisions and conditions. The restatement, effective
January 1, 2000, is set forth in this document and is substituted in lieu of the
prior document.

         The restated plan continues to be for the exclusive benefit of
employees of the Employer. All persons covered under the plan on December 31,
1999, shall continue to be covered under the restated plan with no loss of
benefits.

         It is intended that the plan, as restated, shall qualify as a profit
sharing plan under the Internal Revenue Code of 1986, including any later
amendments to the Code.

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<PAGE>   5

                                    ARTICLE I

                             FORMAT AND DEFINITIONS

SECTION 1.01--FORMAT.

         Words and phrases defined in the DEFINITIONS SECTION of Article I shall
have that defined meaning when used in this Plan, unless the context clearly
indicates otherwise.

         These words and phrases have an initial capital letter to aid in
identifying them as defined terms.

SECTION 1.02--DEFINITIONS.

         ACCOUNT means, for a Participant, his share of the Investment Fund.
         Separate accounting records are kept for those parts of his Account
         that result from:

         (a)  Elective Deferral Contributions

         (b)  Matching Contributions

         (c)  Other Employer Contributions

         (d)  Rollover Contributions

         If the Participant's Vesting Percentage is less than 100% as to any of
         the Employer Contributions, a separate accounting record will be kept
         for any part of his Account resulting from such Employer Contributions
         and, if there has been a prior Forfeiture Date, from such Contributions
         made before a prior Forfeiture Date.

         A Participant's Account shall be reduced by any distribution of his
         Vested Account and by any Forfeitures. A Participant's Account will
         participate in the earnings credited, expenses charged and any
         appreciation or depreciation of the Investment Fund. His Account is
         subject to any minimum guarantees applicable under the Group Contract
         or other investment arrangement.

         ACCRUAL COMPUTATION PERIOD means a 12-consecutive month period ending
         on the last day of each Plan Year, including corresponding
         12-consecutive month periods before January 1, 1985.

         ACTIVE PARTICIPANT means an Eligible Employee who is actively
         participating in the Plan according to the provisions in the ACTIVE
         PARTICIPANT SECTION of Article II.

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<PAGE>   6

         ADOPTING EMPLOYER means an employer controlled by or affiliated with
         the Employer and listed in the ADOPTING EMPLOYERS - SINGLE PLAN SECTION
         of Article II.

         AFFILIATED SERVICE GROUP means any group of corporations, partnerships
         or other organizations of which the Employer is a part and which is
         affiliated within the meaning of Code Section 414(m) and regulations
         thereunder. Such a group includes at least two organizations one of
         which is either a service organization (that is, an organization the
         principal business of which is performing services), or an organization
         the principal business of which is performing management functions on a
         regular and continuing basis. Such service is of a type historically
         performed by employees. In the case of a management organization, the
         Affiliated Service Group shall include organizations related, within
         the meaning of Code Section 144(a)(3), to either the management
         organization or the organization for which it performs management
         functions. The term Controlled Group, as it is used in this Plan, shall
         include the term Affiliated Service Group.

         ANNUAL COMPENSATION means, on any given date, the Employee's
         Compensation for the latest Compensation Year ending on or before the
         given date.

         ANNUITY STARTING DATE means, for a Participant, the first day of the
         first period for which an amount is payable as an annuity or any other
         form.

         BENEFICIARY means the person or persons named by a Participant to
         receive any benefits under this Plan upon the Participant's death. See
         the BENEFICIARY SECTION of Article IX.

         CLAIMANT means any person who has made a claim for benefits under this
         Plan. See the CLAIM AND APPEAL PROCEDURES SECTION of Article VIII.

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

         COMPENSATION means, except as modified in this definition, the total
         earnings paid or made available to an Employee by the Employer during
         any specified period.

         "Earnings" in this definition means Compensation as defined in the
         CONTRIBUTION LIMITATION SECTION of Article III.

         Compensation shall also include elective contributions. Elective
         contributions are amounts excludable from the Employee's gross income
         under Code Sections 125, 402(e)(3), 402(h) or 403(b), and contributed
         by the Employer, at the Employee's election, to a Code Section 401(k)
         arrangement, a simplified employee pension, cafeteria plan or
         tax-sheltered annuity. Elective contributions also include Compensation
         deferred under a Code Section 457 plan maintained by the Employer

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<PAGE>   7

         and Employee contributions "picked up" by a governmental entity and,
         pursuant to Code Section 414(h)(2), treated as Employer contributions.

         For purposes of the EXCESS AMOUNTS SECTION of Article III, the Employer
         may elect to use an alternative nondiscriminatory definition of
         Compensation in accordance with the regulations under Code Section
         414(s).

         For purposes of determining the amount of Elective Deferral
         Contributions, Compensation shall exclude reimbursements or other
         expense allowances, fringe benefits (cash and noncash), moving
         expenses, deferred compensation and welfare benefits.

         For an Employee whose Entry Date occurs after July 1, 1993,
         Compensation shall exclude earnings paid before the Employee's Entry
         Date.

         For Plan Years beginning after December 31, 1988, and before January 1,
         1994, the annual Compensation of each Participant taken into account
         for determining all benefits provided under the Plan for any year shall
         not exceed $200,000. For Plan Years beginning on or after January 1,
         1994, the annual Compensation of each Participant taken into account
         for determining all benefits provided under the Plan for any year shall
         not exceed $150,000.

         The $200,000 limit shall be adjusted by the Secretary at the same time
         and in the same manner as under Code Section 415(d). The $150,000 limit
         shall be adjusted by the Commissioner for increases in the cost of
         living in accordance with Code Section 401(a)(17)(B). The cost of
         living adjustment in effect for a calendar year applies to any period,
         not exceeding 12 months, over which pay is determined (determination
         period) beginning in such calendar year. If a determination period
         consists of fewer than 12 months, the annual compensation limit will be
         multiplied by a fraction; the numerator of which is the number of
         months in the determination period, and the denominator of which is 12.

         In determining the Compensation of a Participant for purposes of the
         annual compensation limit, the rules of Code Section 414(q)(6) shall
         apply, except that in applying such rules, the term "family" shall
         include only the spouse of the Participant and any lineal descendants
         of the Participant who have not attained age 19 before the close of the
         year. If, as a result of the application of such rules the adjusted
         annual compensation limit is exceeded, then (except for purposes of
         determining the portion of Compensation up to the integration level if
         this Plan provides for permitted disparity) the limitation shall be
         prorated among the affected individuals in proportion to each such
         individual's Compensation as determined under this definition prior to
         the application of this limitation.

                                       6
<PAGE>   8

         If Compensation for any prior determination period is taken into
         account in determining a Participant's benefits accruing in the current
         Plan Year, the Compensation for that prior determination period is
         subject to the annual compensation limit in effect for that prior
         determination period. For this purpose, for determination periods
         beginning before the first day of the first Plan Year beginning on or
         after January 1, 1989, which are used to determine benefits in Plan
         Years beginning after December 31, 1988 and before January 1, 1994, the
         annual compensation limit is $200,000. For this purpose, for
         determination periods beginning before the first day of the first Plan
         Year beginning on or after January 1, 1994, which are used to determine
         benefits in Plan Years beginning on or after January 1, 1994, the
         annual compensation limit is $150,000.

         COMPENSATION YEAR means each one-year period ending on the last day of
         the Plan Year, including corresponding periods before January 1, 1985.

         CONTINGENT ANNUITANT means an individual named by the Participant to
         receive a lifetime benefit after the Participant's death in accordance
         with a survivorship life annuity.

         CONTRIBUTIONS means

             Elective Deferral Contributions
             Matching Contributions
             Discretionary Contributions
             Rollover Contributions

         as set out in Article III, unless the context clearly indicates
         otherwise.

         CONTROLLED GROUP means any group of corporations, trades or businesses
         of which the Employer is a part that are under common control. A
         Controlled Group includes any group of corporations, trades or
         businesses, whether or not incorporated, which is either a
         parent-subsidiary group, a brother-sister group, or a combined group
         within the meaning of Code Section 414(b), Code Section 414(c) and
         regulations thereunder and, for purposes of determining contribution
         limitations under the CONTRIBUTION LIMITATION SECTION of Article III,
         as modified by Code Section 415(h) and, for the purpose of identifying
         Leased Employees, as modified by Code Section 144(a)(3). The term
         Controlled Group, as it is used in this Plan, shall include the term
         Affiliated Service Group and any other employer required to be
         aggregated with the Employer under Code Section 414(o) and the
         regulations thereunder.

         DIRECT ROLLOVER means a payment by the Plan to the Eligible Retirement
         Plan specified by the Distributee.

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<PAGE>   9

         DISCRETIONARY CONTRIBUTIONS means discretionary contributions made by
         the Employer to fund this Plan. See the EMPLOYER CONTRIBUTIONS SECTION
         of Article III.

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

         ELECTIVE DEFERRAL CONTRIBUTIONS means Contributions made by the
         Employer to fund this Plan in accordance with a qualified cash or
         deferred arrangement as described in Code Section 401(k). See the
         EMPLOYER CONTRIBUTIONS SECTION of Article III.

         ELIGIBILITY BREAK IN SERVICE means an Eligibility Computation Period in
         which an Employee is credited with 500 or fewer Hours-of-Service. An
         Employee incurs an Eligibility Break in Service on the last day of an
         Eligibility Computation Period in which he has an Eligibility Break in
         Service.

         ELIGIBILITY COMPUTATION PERIOD means a 12-consecutive month period. The
         first Eligibility Computation Period begins on an Employee's Employment
         Commencement Date. Later Eligibility Computation Periods shall be
         12-consecutive month periods ending on the last day of each Plan Year
         that begins after his Employment Commencement Date.

         To determine an Eligibility Computation Period after an Eligibility
         Break in Service, the Plan shall use the 12-consecutive month period
         beginning on an Employee's Reemployment Commencement Date as if his
         Reemployment Commencement Date were his Employment Commencement Date.

         ELIGIBILITY SERVICE means one year of service for each Eligibility
         Computation Period that has ended and in which an Employee is credited
         with at least 1,000 Hours-of-Service.

         However, Eligibility Service is modified as follows:

         Period of Military Duty included:

                  A Period of Military Duty shall be included as service with
                  the Employer to the extent it has not already been credited.
                  For purposes of crediting Hours-of-Service during the Period
                  of Military Duty, an Hour-of-Service shall be credited
                  (without regard to the 501 Hour-of-Service limitation) for
                  each hour an

                                       8
<PAGE>   10

                  Employee would normally have been scheduled to work for the
                  Employer during such period.

         Controlled Group service included:

                  An Employee's service with a member firm of a Controlled Group
                  while both that firm and the Employer were members of the
                  Controlled Group shall be included as service with the
                  Employer.

         Other service included:

                  An Employee's service with Lancer FBD Partnership, Ltd. shall
                  be included as service with the Employer.

         ELIGIBLE EMPLOYEE means any Employee of the Employer who meets the
         following requirements. He is not employed as a nonresident alien who
         does not receive any earned income (as defined in Code 911(d)(2)) from
         the Employer which constitutes United States income (as defined in Code
         861(a)(3)). His employment classification with the Employer is the
         following:

                  Nonbargaining class (not represented for collective bargaining
                  purposes by a bargaining unit which has bargained in good
                  faith with the Employer on the subject of retirement
                  benefits).

         In any event, an Employee of Lancer, Ltd. shall also be considered an
         Employee of the Employer.

         ELIGIBLE RETIREMENT PLAN means an individual retirement account
         described in Code Section 408(a), an individual retirement annuity
         described in Code Section 408(b), an annuity plan described in Code
         Section 403(a) or a qualified trust described in Code Section 401(a),
         that accepts the Distributee's Eligible Rollover Distribution.

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

         ELIGIBLE ROLLOVER DISTRIBUTI0N means any distribution of all or any
         portion of the balance to the credit of the Distributee, except that an
         Eligible Rollover Distribution does not include:

         (a)      Any distribution that is one of a series of substantially
                  equal periodic payments (not less frequently than annually)
                  made for the life (or life expectancy) of the Distributee or
                  the joint lives (or joint life expectancies) of the
                  Distributee and the

                                       9
<PAGE>   11

                  Distributee's designated Beneficiary, or for a specified
                  period of ten years or more.

         (b)      Any distribution to the extent such distribution is required
                  under Code Section 401(a)(9).

         (c)      The portion of any distribution that is not includible in
                  gross income (determined without regard to the exclusion for
                  net unrealized appreciation with respect to employer
                  securities).

         EMPLOYEE means an individual who is employed by the Employer or any
         other employer required to be aggregated with the Employer under Code
         Sections 414(b), (c), (m) or (o). A Controlled Group member is required
         to be aggregated with the Employer.

         The term Employee shall also include any Leased Employee deemed to be
         an employee of any employer described in the preceding paragraph as
         provided in Code Sections 414(n) or 414(o).

         EMPLOYER means the Primary Employer. This will also include any
         successor corporation or firm of the Employer which shall, by written
         agreement, assume the obligations of this Plan or any predecessor
         corporation or firm of the Employer (absorbed by the Employer, or of
         which the Employer was once a part) which became a predecessor because
         of a change of name, merger, purchase of stock or purchase of assets
         and which maintained this Plan.

         EMPLOYER CONTRIBUTIONS means

                  Elective Deferral Contributions
                  Matching Contributions
                  Discretionary Contributions

         as set out in Article III, unless the context clearly indicates
         otherwise.

         EMPLOYMENT COMMENCEMENT DATE means the date an Employee first performs
         an Hour-of-Service.

         ENTRY DATE means the date an Employee first enters the Plan as an
         Active Participant. See the ACTIVE PARTICIPANT SECTION of Article II.

         FISCAL YEAR means the Primary Employer's taxable year. The last day of
         the Fiscal Year is December 31.

         FORFEITURE means the part, if any, of a Participant's Account that is
         forfeited. See the FORFEITURES SECTION of Article III.

                                       10
<PAGE>   12

         FORFEITURE DATE means, as to a Participant, the date the Participant
         incurs five consecutive Vesting Breaks in Service. A Participant incurs
         a Vesting Break in Service on the last day of the period used to
         determine the Vesting Break in Service.

         This is the date on which the Participant's Nonvested Account will be
         forfeited unless an earlier forfeiture occurs as provided in the
         FORFEITURES SECTION of Article III.

         GROUP CONTRACT means the group annuity contract or contracts into which
         the Primary Employer enters with the Insurer for the investment of
         Contributions and the payment of benefits under this Plan. The term
         Group Contract as it is used in this Plan is deemed to include the
         plural unless the context clearly indicates otherwise.

         HIGHLY COMPENSATED EMPLOYEE means a highly compensated active Employee
         or a highly compensated former Employee.

         A highly compensated active Employee means any Employee who performs
         service for the Employer during the determination year and who, during
         the look-back year is:

         (a)      An Employee who is a 5% owner, as defined in Section
                  416(i)(1)(B)(i), at any time during the determination year or
                  the look-back year.

         (b)      An Employee who receives compensation in excess of $75,000
                  (indexed in accordance with Section 415(d) during the
                  look-back year.

         (c)      An Employee who receives compensation in excess of $50,000
                  (indexed in accordance with Section 415(d) during the
                  look-back year and is a member of the top-paid group for the
                  look-back year.

         (d)      An Employee who is an officer, within the meaning of Section
                  416(i), during the look-back year and who receives
                  compensation in the look-back year greater than 50% of the
                  dollar limitation in effect under Section 415(b)(1)(A) for the
                  calendar year in which the look-back year begins. The number
                  of officers is limited to 50 (or, if lesser, the greater of 3
                  employees or 10% of employees) excluding those employees who
                  may be excluded in determining the top-paid group.

         (e)      An Employee who is both described in paragraph b, c or d above
                  when these paragraphs are modified to substitute the
                  determination year for the look-back year and one of the 100
                  Employees who receive the most compensation from the Employer
                  during the determination year.

         If no officer has satisfied the compensation requirement of (c) above
         during either a determination year or look-back year, the highest paid
         officer for such year shall be treated as a Highly Compensated
         Employee.

                                       11
<PAGE>   13

         For this purpose, the determination year shall be the Plan Year. The
         look-back year shall be the twelve-month period immediately preceding
         the determination year.

         A highly compensated former Employee means any Employee who separated
         from service (or was deemed to have separated) prior to the
         determination year, performs no service for the Employer during the
         determination year, and was a highly compensated active Employee for
         either the separation year or any determination year ending on or after
         the Employee's 55th birthday.

         If an Employee is, during a determination year or look-back year, a
         family member of either a 5 percent owner who is an active or former
         Employee or a Highly Compensated Employee who is one of the 10 most
         highly compensated Employees ranked on the basis of compensation paid
         by the Employer during such year, then the family member and the 5
         percent owner or top-ten highly compensated Employee shall be
         aggregated. In such case, the family member and 5 percent owner or
         top-ten highly compensated Employee shall be treated as a single
         Employee receiving compensation and Plan contributions or benefits
         equal to the sum of such compensation and contributions or benefits of
         the family member and 5 percent owner or top-ten highly compensated
         Employee. For purposes of this definition, family member includes the
         spouse, lineal ascendants and descendants of the Employee or former
         Employee and the spouses of such lineal ascendants and descendants.

         Compensation is compensation within the meaning of Code Section
         415(c)(3), including elective or salary reduction contributions to a
         cafeteria plan, cash or deferred arrangement or tax-sheltered annuity.
         The top-paid group consists of the top 20% of employees ranked on the
         basis of compensation received during the year.

         Employers aggregated under Section 414(b), (c), (m) or (o) are treated
         as a single Employer.

         HOUR-OF-SERVICE means the following:

         (a)      Each hour for which an Employee is paid, or entitled to
                  payment, for performing duties for the Employer during the
                  applicable computation period.

         (b)      Each hour for which an Employee is paid, or entitled to
                  payment, by the Employer because of a period of time in which
                  no duties are performed (irrespective of whether the
                  employment relationship has terminated) due to vacation,
                  holiday, illness, incapacity (including disability), layoff,
                  jury duty, military duty or leave of absence. Notwithstanding
                  the preceding provisions of this subparagraph (b), no credit
                  will be given to the Employee

                                       12
<PAGE>   14

                  (1)      for more than 501 Hours-of-Service under this
                           subparagraph (b) because of any single continuous
                           period in which the Employee performs no duties
                           (whether or not such period occurs in a single
                           computation period); or

                  (2)      for an Hour-of-Service for which the Employee is
                           directly or indirectly paid, or entitled to payment,
                           because of a period in which no duties are performed
                           if such payment is made or due under a plan
                           maintained solely for the purpose of complying with
                           applicable worker's or workmen's compensation, or
                           unemployment compensation or disability insurance
                           laws; or

                  (3)      for an Hour-of-Service for a payment which solely
                           reimburses the Employee for medical or medically
                           related expenses incurred by him.

                  For purposes of this subparagraph (b), a payment shall be
                  deemed to be made by, or due from the Employer, regardless of
                  whether such payment is made by, or due from the Employer,
                  directly or indirectly through, among others, a trust fund or
                  insurer, to which the Employer contributes or pays premiums
                  and regardless of whether contributions made or due to the
                  trust fund, insurer or other entity are for the benefit of
                  particular employees or are on behalf of a group of employees
                  in the aggregate.

         (c)      Each hour for which back pay, irrespective of mitigation of
                  damages, is either awarded or agreed to by the Employer. The
                  same Hours-of-Service shall not be credited both under
                  subparagraph (a) or subparagraph (b) above (as the case may
                  be) and under this subparagraph (c). Crediting of
                  Hours-of-Service for back pay awarded or agreed to with
                  respect to periods described in subparagraph (b) above will be
                  subject to the limitations set forth in that subparagraph.

         The crediting of Hours-of-Service above shall be applied under the
         rules of paragraphs (b) and (c) of the Department of Labor Regulation
         2530.200b-2 (including any interpretations or opinions implementing
         said rules); which rules, by this reference, are specifically
         incorporated in full within this Plan. The reference to paragraph (b)
         applies to the special rule for determining hours of service for
         reasons other than the performance of duties such as payments
         calculated (or not calculated) on the basis of units of time and the
         rule against double credit. The reference to paragraph (c) applies to
         the crediting of hours of service to computation periods.

         Hours-of-Service shall be credited for employment with any other
         employer required to be aggregated with the Employer under Code
         Sections 414(b), (c), (m) or (o) and the regulations thereunder for
         purposes of eligibility and vesting. Hours-of-Service shall also be
         credited for any individual who is considered an employee for purposes
         of this

                                       13
<PAGE>   15

         Plan pursuant to Code Section 414(n) or Code Section 414(o) and the
         regulations thereunder.

         Solely for purposes of determining whether a one-year break in service
         has occurred for eligibility or vesting purposes, during a Parental
         Absence an Employee shall be credited with the Hours-of-Service which
         otherwise would normally have been credited to the Employee but for
         such absence, or in any case in which such hours cannot be determined,
         eight Hours-of-Service per day of such absence. The Hours-of-Service
         credited under this paragraph shall be credited in the computation
         period in which the absence begins if the crediting is necessary to
         prevent a break in service in that period; or in all other cases, in
         the following computation period.

         INACTIVE PARTICIPANT means a former Active Participant who has an
         Account. See the INACTIVE PARTICIPANT SECTION of Article II.

         INSURER means Principal Life Insurance Company and any other insurance
         company or companies named by the Trustee or Primary Employer.

         INVESTMENT FUND means the total assets held for the purpose of
         providing benefits for Participants. These funds result from
         Contributions made under the Plan.

         INVESTMENT MANAGER means any fiduciary (other than a trustee or Named
         Fiduciary)

         (a)      who has the power to manage, acquire, or dispose of any assets
                  of the Plan; and

         (b)      who (1) is registered as an investment adviser under the
                  Investment Advisers Act of 1940, or (2) is a bank, as defined
                  in the Investment Advisers Act of 1940, or (3) is an insurance
                  company qualified to perform services described in
                  subparagraph (a) above under the laws of more than one state;
                  and

         (c)      who has acknowledged in writing being a fiduciary with respect
                  to the Plan.

         LATE RETIREMENT DATE means the first day of any month which is after a
         Participant's Normal Retirement Date and on which retirement benefits
         begin. If a Participant continues to work for the Employer after his
         Normal Retirement Date, his Late Retirement Date shall be the earliest
         first day of the month on or after he ceases to be an Employee. An
         earlier or a later Retirement Date may apply if the Participant so
         elects. An earlier Retirement Date may apply if the Participant is age
         70 1/2. See the WHEN BENEFITS START SECTION of Article V.

         LOAN ADMINISTRATOR means the person or positions authorized to
         administer the Participant loan program.

                                       14
<PAGE>   16

         The Loan Administrators are Stephanie Sheffield and Irene Garza.

         MATCHING CONTRIBUTIONS means matching contributions made by the
         Employer to fund this Plan. See the EMPLOYER CONTRIBUTIONS SECTION of
         Article III.

         MONTHLY DATE means each Yearly Date and the same day of each following
         month during the Plan Year beginning on such Yearly Date.

         NAMED FIDUCIARY means the person or persons who have authority to
         control and manage the operation and administration of the Plan.

         The Named Fiduciary is the Employer.

         NONHIGHLY COMPENSATED EMPLOYEE means an Employee of the Employer who is
         neither a Highly Compensated Employee nor a family member.

         NONVESTED ACCOUNT means the part, if any, of a Participant's Account
         that is in excess of his Vested Account.

         NORMAL FORM means a single life annuity with installment refund.

         NORMAL RETIREMENT AGE means the age at which the Participant's normal
         retirement benefit becomes nonforfeitable. A Participant's Normal
         Retirement Age is 65.

         NORMAL RETIREMENT DATE means the date the Participant reaches his
         Normal Retirement Age. Unless otherwise provided in this Plan, a
         Participant's retirement benefits shall begin on a Participant's Normal
         Retirement Date if he has ceased to be an Employee on such date and has
         a Vested Account. Even if the Participant is an Employee on his Normal
         Retirement Date, he may choose to have his retirement benefit begin on
         such date. See the WHEN BENEFITS START SECTION of Article V.

         PARENTAL ABSENCE means an Employee's absence from work which begins on
         or after the first Yearly Date after December 31, 1984,

         (a)      by reason of pregnancy of the Employee,

         (b)      by reason of birth of a child of the Employee,

         (c)      by reason of the placement of a child with the Employee in
                  connection with adoption of such child by such Employee, or

         (d)      for purposes of caring for such child for a period beginning
                  immediately following such birth or placement.

                                       15
<PAGE>   17

         PARTICIPANT means either an Active Participant or an Inactive
         Participant.

         PERIOD OF MILITARY DUTY means, for an Employee

         (a)      who served as a member of the armed forces of the United
                  States, and

         (b)      who was reemployed by the Employer at a time when the Employee
                  had a right to reemployment in accordance with seniority
                  rights as protected under Section 2021 through 2026 of Title
                  38 of the U.S. Code,

         the period of time from the date the Employee was first absent from
         active work for the Employer because of such military duty to the date
         the Employee was reemployed.

         PLAN means the profit sharing plan of the Employer set forth in this
         document, including any later amendments to it.

         PLAN ADMINISTRATOR means the person or persons who administer the Plan.

         The Plan Administrator is the Employer.

         PLAN YEAR means a period beginning on a Yearly Date and ending on the
         day before the next Yearly Date.

         PRIMARY EMPLOYER means LANCER CORPORATION.

         QUALIFIED JOINT AND SURVIVOR FORM means, for a Participant who has a
         spouse, an immediate survivorship life annuity with installment refund,
         where the survivorship percentage is 50% and the Contingent Annuitant
         is the Participant's spouse. A former spouse will be treated as the
         spouse to the extent provided under a qualified domestic relations
         order as described in Code Section 414(p). If a Participant does not
         have a spouse, the Qualified Joint and Survivor Form means the Normal
         Form.

         The amount of benefit payable under the Qualified Joint and Survivor
         Form shall be the amount of benefit which may be provided by the
         Participant's Vested Account.

         QUALIFIED PRERETIREMENT SURVIVOR ANNUITY means a single life annuity
         with installment refund payable to the surviving spouse of a
         Participant who dies before his Annuity Starting Date. A former spouse
         will be treated as the surviving spouse to the extent provided under a
         qualified domestic relations order as described in Code Section 414(p).

         QUALIFYING EMPLOYER SECURITIES means any security which is issued by
         the Employer or any Controlled Group member and which meets the
         requirements of Code

                                       16
<PAGE>   18

         Section 409(l) and ERISA Section 407(d)(5). This shall also include any
         securities that satisfied the requirements of the definition when these
         securities were assigned to the Plan.

         QUALIFYING EMPLOYER SECURITIES FUND means that part of the assets of
         the Trust Fund that are designated to be held primarily or exclusively
         in Qualifying Employer Securities for the purpose of providing benefits
         for Participants.

         REEMPLOYMENT COMMENCEMENT DATE means the date an Employee first
         performs an Hour-of-Service following an Eligibility Break in Service.

         REENTRY DATE means the date a former Active Participant reenters the
         Plan. See the ACTIVE PARTICIPANT SECTION of Article II.

         RETIREMENT DATE means the date a retirement benefit will begin and is a
         Participant's Normal or Late Retirement Date, as the case may be.

         ROLLOVER CONTRIBUTIONS means the Rollover Contributions which are made
         by or for a Participant according to the provisions of the ROLLOVER
         CONTRIBUTIONS SECTION of Article III.

         SEMI-YEARLY DATE means each Yearly Date and the sixth Monthly Date
         after each Yearly Date which is within the same Plan Year.

         TEFRA means the Tax Equity and Fiscal Responsibility Act of 1982.

         TEFRA COMPLIANCE DATE means the date a plan is to comply with the
         provisions of TEFRA. The TEFRA Compliance Date as used in this Plan is,

         (a)      for purposes of contribution limitations, Code Section 415,

                  (1)      if the plan was in effect on July 1, 1982, the first
                           day of the first limitation year which begins after
                           December 31, 1982, or

                  (2)      if the plan was not in effect on July 1, 1982, the
                           first day of the first limitation year which ends
                           after July 1, 1982.

         (b)      for all other purposes, the first Yearly Date after December
                  31, 1983.

         TOTALLY AND PERMANENTLY DISABLED means that a Participant is disabled,
         as a result of sickness, injury, or mental disability, to the extent
         that he is completely prevented from performing any work, engaging in
         any occupation for wage or profit and has been continuously disabled
         for an indefinite period which the Plan Administrator considers will be
         of long continued duration. A Participant is also disabled if he incurs

                                       17
<PAGE>   19

         the permanent loss or loss of use of a member or function of the body,
         or is permanently disfigured and ceases to be an Employee.

         A Participant is considered Totally and Permanently Disabled on the
         date the Plan Administrator determines the Participant satisfies the
         definition of Totally and Permanently Disabled. Initial written proof
         that the disability exists may be required. The Plan Administrator will
         apply such definition in a nondiscriminatory, consistent and uniform
         manner.

         TRUST means an agreement of trust between the Primary Employer and
         Trustee established for the purpose of holding and distributing the
         Trust Fund under the provisions of the Plan. The Trust may provide for
         the investment of all or any portion of the Trust Fund in the Group
         Contract.

         TRUST FUND means the total funds held under the Trust for the purpose
         of providing benefits for Participants. These funds result from
         Contributions made under the Plan which are forwarded to the Trustee to
         be deposited in the Trust Fund.

         TRUSTEE means the trustee or trustees under the Trust. The term Trustee
         as it is used in this Plan is deemed to include the plural unless the
         context clearly indicates otherwise.

         VALUATION DATE means the date on which the value of the assets of the
         Investment Fund is determined. The value of each Account which is
         maintained under this Plan shall be determined on the Valuation Date.
         In each Plan Year, the Valuation Date shall be the last day of the Plan
         Year. At the discretion of the Plan Administrator, Trustee, or Insurer
         (whichever applies), assets of the Investment Fund may be valued more
         frequently. These dates shall also be Valuation Date.

         VESTED ACCOUNT means the vested part of a Participant's Account. The
         Participant's Vested Account is determined as follows.

         If the Participant's Vesting Percentage is 100%, his Vested Account
         equals his Account.

         If the Participant's Vesting Percentage is less than 100%, his Vested
         Account equals the sum of (a) and (b) below:

         (a)      The part of the Participant's Account that results from
                  Employer Contributions made before a prior Forfeiture Date and
                  all other Contributions which were 100% vested when made.

         (b)      The balance of the Participant's Account in excess of the
                  amount in (a) above multiplied by his Vesting Percentage.

                                       18
<PAGE>   20

         If the Participant has withdrawn any part of his Account resulting from
         Employer Contributions, other than the vested Employer Contributions
         included in (a) above, the amount determined under this subparagraph
         (b) shall be equal to P(AB + D) - D as defined below:

         P        The Participant's Vesting Percentage.

         AB       The balance of the Participant's Account in excess of the
                  amount in (a) above.

         D        The amount of withdrawal resulting from Employer
                  Contributions, other than the vested Employer Contributions
                  included in (a) above.

         The Participant's Vested Account is nonforfeitable.

         VESTING BREAK IN SERVICE means a Vesting Computation Period in which an
         Employee is credited with 500 or fewer Hours-of-Service. An Employee
         incurs a Vesting Break in Service on the last day of a Vesting
         Computation Period in which he has a Vesting Break in Service.

         VESTING COMPUTATION PERIOD means a 12-consecutive month period ending
         on the last day of each Plan Year, including corresponding
         12-consecutive month periods before January 1, 1985.

         VESTING PERCENTAGE means the percentage used to determine the
         nonforfeitable portion of a Participant's Account attributable to
         Employer Contributions which were not 100% vested when made.

         A Participant's Vesting Percentage is shown in the following schedule
         opposite the number of whole years of his Vesting Service.

<TABLE>
<CAPTION>
                      VESTING SERVICE                             VESTING
                       (whole years)                            PERCENTAGE
<S>                   <C>                                       <C>
                        Less than 2                                   0
                             2                                       20
                             3                                       40
                             4                                       60
                             5                                       80
                         6 or more                                  100
</TABLE>

         However, the Vesting Percentage for a Participant who is an Employee on
         or after the earliest of (i) the date he reaches his Normal Retirement
         Age, (ii) the date of his death, or (iii) the date he becomes Totally
         and Permanently Disabled, shall be 100% on such date.

                                       19
<PAGE>   21

         If the schedule used to determine a Participant's Vesting Percentage is
         changed, the new schedule shall not apply to a Participant unless he is
         credited with an Hour-of-Service on or after the date of the change and
         the Participant's nonforfeitable percentage on the day before the date
         of the change is not reduced under this Plan. The amendment provisions
         of the AMENDMENT SECTION of Article IX regarding changes in the
         computation of the Vesting Percentage shall apply.

         VESTING SERVICE means the sum of (a) and (b) below:

         (a)      The total of an Employee's service with the Employer before
                  July 1, 1993, shall be determined according to the provisions
                  of the Plan in effect on June 30, 1993. Service prior to the
                  date the Plan became subject to the Employee Retirement Income
                  Security Act of 1974 may be disregarded if such service would
                  have been disregarded in accordance with the break in service
                  rules of the Plan as in effect on the day before such date.

         (b)      One year of service for each Vesting Computation Period ending
                  on or after July 1, 1993, in which an Employee is credited
                  with at least 1,000 Hours-of-Service.

         However, Vesting Service is modified as follows:

         Other service excluded:

                  Service before an Employee attained age 18 is excluded.
                  However, service accrued based on Hours-of-Service within a
                  Vesting Computation Period shall only be excluded if he did
                  not attain age 18 in such period.

         Period of Military Duty included:

                  A Period of Military Duty shall be included as service with
                  the Employer to the extent it has not already been credited.
                  For purposes of crediting Hours-of-Service during the Period
                  of Military Duty, an Hour-of-Service shall be credited
                  (without regard to the 501 Hour-of-Service limitation) for
                  each hour an Employee would normally have been scheduled to
                  work for the Employer during such period.

         Controlled Group service included:

                  An Employee's service with a member firm of a Controlled Group
                  while both that firm and the Employer were members of the
                  Controlled Group shall be included as service with the
                  Employer.

                                       20
<PAGE>   22

         Other service included:

                  An Employee's service with Lancer FBD Partnership, Ltd. shall
                  be included as service with the Employer.

         YEARLY DATE means January 1, 1985, and the same day of each following
         year.

         YEARS OF SERVICE means an Employee's Vesting Service disregarding any
         modifications which exclude service.

                                       21
<PAGE>   23

                                   ARTICLE II

                                  PARTICIPATION

SECTION 2.01--ACTIVE PARTICIPANT.

         (a)      An Employee shall first become an Active Participant (begin
                  active participation in the Plan) on the earliest Semi-yearly
                  Date on or after January 1, 2000, on which he is an Eligible
                  Employee and has met both of the eligibility requirements set
                  forth below. This date is his Entry Date.

                  (1)      He has competed one year of Eligibility Service
                           before his Entry Date.

                  (2)      He is age 21 or older.

                  Each Employee who was an Active Participant under the Plan on
                  December 31, 1999, shall continue to be an Active Participant
                  if he is still an Eligible Employee on January 1, 2000, and
                  his Entry Date shall not change.

                  If a person has been an Eligible Employee who has met all the
                  eligibility requirements above, but is not an Eligible
                  Employee on the date which would have been his Entry Date, he
                  shall become an Active Participant on the date he again
                  becomes an Eligible Employee. This date is his Entry Date.

         (b)      An Inactive Participant shall again become an Active
                  Participant (resume active participation in the Plan) on the
                  date he again performs an Hour-of-Service as an Eligible
                  Employee. This date is his Reentry Date.

                  Upon again becoming an Active Participant, he shall cease to
                  be an Inactive Participant.

         (c)      A former Participant shall again become an Active Participant
                  (resume active participation in the Plan) on the date he again
                  performs an Hour-of-Service as an Eligible Employee. This date
                  is his Reentry Date.

         There shall be no duplication of benefits for a Participant under this
Plan because of more than one period as an Active Participant.

SECTION 2.02--INACTIVE PARTICIPANT.

         An Active Participant shall become an Inactive Participant (stop
accruing benefits under the Plan) on the earlier of the following:

                                       22
<PAGE>   24

         (a)      The date on which he ceases to be an Eligible Employee (on his
                  Retirement Date if the date he ceases to be an Eligible
                  Employee occurs within one month of his Retirement Date).

         (b)      The effective date of complete termination of the Plan.

         An Employee or former Employee who was an Inactive Participant under
the Plan on December 31, 1999, shall continue to be an Inactive Participant on
January 1, 2000. Eligibility for any benefits payable to him or on his behalf
and the amount of the benefits shall be determined according to the provisions
of the prior document, unless otherwise stated in this document.

SECTION 2.03--CESSATION OF PARTICIPATION.

         A Participant shall cease to be a Participant on the date he is no
longer an Eligible Employee and his Account is zero.

SECTION 2.04--ADOPTING EMPLOYERS - SINGLE PLAN.

         Each of the employers controlled by or affiliated with the Employer and
listed below is an Adopting Employer. Each Adopting Employer listed below
participates with the Employer in this Plan. An Adopting Employer's agreement to
participate in this Plan shall be in writing.

         If the Adopting Employer did not maintain its plan before its date of
adoption specified below, its date of adoption shall be the Entry Date for any
of its employees who have met the requirements in the ACTIVE PARTICIPANT SECTION
of Article II as of that date. Service with and earnings from an Adopting
Employer shall be included as service with and earnings from the Employer.
Transfer of employment, without interruption, between an Adopting Employer and
another Adopting Employer or the Employer shall not be considered an
interruption of service.

         Contributions made by an Adopting Employer shall be treated as
Contributions made by the Employer. Forfeitures arising from those Contributions
shall be used for the benefit of all Participants.

         An employer shall not be an Adopting Employer if it ceases to be
controlled by or affiliated with the Employer. Such an employer may continue a
retirement plan for its employees in the form of a separate document. This Plan
shall be amended to delete a former Adopting Employer from the list below.

         If an employer ceases to be an Adopting Employer and does not continue
a retirement plan for the benefit of its employees, partial termination may
result and the provisions of Article VII apply.

                                       23
<PAGE>   25

                               ADOPTING EMPLOYERS

<TABLE>
<CAPTION>
NAME                             FISCAL YEAR END          DATE OF ADOPTION
<S>                              <C>                      <C>
LANCER PARTNERSHIP, LTD.         December 31              May 1, 1996

ADVANCED BEVERAGE SOLUTIONS      December 31              March 23, 2000
</TABLE>

                                       24
<PAGE>   26

                                   ARTICLE III

                                  CONTRIBUTIONS

SECTION 3.01--EMPLOYER CONTRIBUTIONS.

         Employer Contributions for Plan Years which end on or after January 1,
2000, may be made without regard to current or accumulated net income, earnings,
or profits of the Employer. Notwithstanding the foregoing, the Plan shall
continue to be designed to qualify as a profit sharing plan for purposes of Code
Sections 401(a), 402, 412, and 417. Such Contributions will be equal to the
Employer Contributions as described below:

         (a)      The amount of each Elective Deferral Contribution for a
                  Participant shall be equal to any whole percentage (not more
                  than 15%) of his Compensation for the month as elected in his
                  elective deferral agreement. An Employee who is eligible to
                  participate in the Plan may file an elective deferral
                  agreement with the Employer. The elective deferral agreement
                  to start Elective Deferral Contributions may be effective on a
                  Participant's Entry Date (Reentry Date, if applicable) or any
                  following Monthly Date. The Participant shall make any change
                  or terminate the elective deferral agreement by filing a new
                  elective deferral agreement. A Participant's elective deferral
                  agreement making a change may be effective on any date an
                  elective deferral agreement to start Elective Deferral
                  Contributions could be effective. A Participant's elective
                  deferral agreement to stop Elective Deferral Contributions may
                  be effective on any date. The elective deferral agreement must
                  be in writing and completed before the beginning of the pay
                  period in which Elective Deferral Contributions are to start,
                  change or stop.

                  Elective Deferral Contributions are fully (100%) vested and
                  nonforfeitable.

         (b)      The amount of each Matching Contribution for a Participant
                  shall be equal to a percentage (not more than 100%) as
                  determined by the Employer, of the Elective Deferral
                  Contributions made for him for the month, disregarding any
                  Elective Deferral Contributions in excess of a percentage as
                  determined by the Employer, of his Compensation for the month.

                  Matching Contributions are subject to the Vesting Percentage.

         (c)      The amount of each Discretionary Contribution shall be
                  determined by the Employer.

                  Discretionary Contributions are subject to the Vesting
                  Percentage.

                                       25
<PAGE>   27

         No Participant shall be permitted to have Elective Deferral
Contributions, as defined in the EXCESS AMOUNTS SECTION of Article III, made
under this Plan, or any other qualified plan maintained by the Employer, during
any taxable year, in excess of the dollar limitation contained in Code Section
402(g) in effect at the beginning of such taxable year.

         In any Plan Year, the Employer may make all or a part of the following
Contributions for such Plan Year in advance of the last day of the Plan Year:

                  Discretionary Contributions

Such Contributions shall be allocated when made in a manner which approximates
the allocation which would otherwise have been made as of the last day of the
Plan Year. Succeeding allocations shall take into account amounts previously
allocated for the Plan Year. The percentage of the Employer Contribution
allocated to the Participant for the Plan Year shall be the same percentage
which would have been allocated to him if the entire allocation had been made as
of the last day of the Plan Year. Excess allocations shall be forfeited and
reallocated as necessary to provide the percentage applicable to each
Participant.

         The Employer shall pay to the Trustee its Contributions used to
determine the Actual Deferral Percentage, as defined in the EXCESS AMOUNTS
SECTION of Article III, to the Plan for each Plan Year not later than the end of
the twelve-month period immediately following the Plan Year for which they are
deemed to be paid. Any such Contributions accumulated through payroll deductions
shall be paid within 90 days of the date withheld or the date it is first
reasonably practical for the Employer to do so, if earlier.

         A portion of the Plan assets resulting from Employer Contributions (but
not more than the original amount of those Contributions and reduced
proportionately for losses, if applicable) may be returned if the Employer
Contributions are made because of a mistake of fact or are more than the amount
deductible under Code Section 404 (excluding any amount which is not deductible
because the Plan is disqualified). The amount involved must be returned to the
Employer within one year after the date the Employer Contributions are made by
mistake of fact or the date the deduction is disallowed, whichever applies.
Except as provided under this paragraph and Article VII, the assets of the Plan
shall never be used for the benefit of the Employer and are held for the
exclusive purpose of providing benefits to Participants and their Beneficiaries
and for defraying reasonable expenses of administering the Plan.

SECTION 3.01 A--ROLLOVER CONTRIBUTIONS.

         A Rollover Contribution may be made by or for an Eligible Employee if
the following conditions are met:

         (a)      The Contribution is a rollover contribution which the Code
                  permits to be transferred to a plan that meets the
                  requirements of Code Section 401(a).

                                       26
<PAGE>   28

         (b)      If the Contribution is made by the Eligible Employee, it is
                  made within sixty days after he receives the distribution.

         (c)      The Eligible Employee furnishes evidence satisfactory to the
                  Plan Administrator that the proposed transfer is in fact a
                  rollover contribution that meets conditions (a) and (b) above.

         The Rollover Contribution may be made by the Eligible Employee or the
Eligible Employee may direct the trustee or named fiduciary of another plan to
transfer the funds which would otherwise be a Rollover Contribution directly to
this Plan. Such transferred funds shall be called a Rollover Contribution. The
Contribution shall be made according to procedures set up by the Plan
Administrator.

         If the Eligible Employee is not an Active Participant at the time the
Rollover Contribution is made, he shall be deemed to be a Participant only for
the purposes of investment and distribution of the Rollover Contribution. He
shall not share in the allocation of Employer Contributions or Forfeitures until
the time he meets all the requirements to become an Active Participant.

         Rollover Contributions made by or for an Eligible Employee shall be
credited to his Account. The part of the Participant's Account resulting from
Rollover Contributions is fully (100%) vested and nonforfeitable at all times. A
separate accounting record shall be maintained for that part of his Rollover
Contribution which consists of voluntary contributions that were deducted from
the Participant's gross income for Federal income tax purposes.

SECTION 3.02--FORFEITURES.

         The Nonvested Account of a Participant shall be forfeited as of the
earlier of the following: the date of the Participant's death, if prior to such
date he had ceased to be an Employee; or his Forfeiture Date. All or a part of a
Participant's Nonvested Account will be forfeited if, after he ceases to be an
Employee, he receives a distribution of his entire Vested Account or a
distribution of his Vested Account derived from Employer Contributions which
were not 100% vested when made according to the provisions of the VESTED
BENEFITS SECTION of Article V or the SMALL AMOUNTS SECTION of Article IX. If a
Participant's Vested Account is zero on the date he ceases to be an Employee, he
shall be deemed to have received a distribution of his entire Vested Account on
such date. The forfeiture will occur as of the date he receives the distribution
or on the date such provision became effective, if later. If he receives a
distribution of his entire Vested Account, his entire Nonvested Account will be
forfeited. If he receives a distribution of his Vested Account from Employer
Contributions which were not 100 % vested when made, but less than his entire
Vested Account, the amount to be forfeited will be determined by multiplying his
Nonvested Account by a fraction. The numerator of the fraction is the amount of
the distribution derived from Employer Contributions

                                       27
<PAGE>   29

which were not 100% vested when made and the denominator of the fraction is his
entire Vested Account derived from such Employer Contributions on the date of
distribution.

         A Forfeiture shall also occur as described in the EXCESS AMOUNTS
SECTION of Article III.

         Forfeitures may first be applied to pay administrative expenses under
the Plan which would otherwise be paid by the Employer.

         Forfeitures not used to pay administrative expenses shall be allocated
as described in the ALLOCATION SECTION of Article III as of the last day of the
Plan Year in which they arise. Upon such allocation, Forfeitures shall be deemed
to be Discretionary Contributions.

         Forfeitures of Matching Contributions which relate to excess amounts
shall be applied as provided in the EXCESS AMOUNTS SECTION of Article III.

         If a Participant again becomes an Eligible Employee after receiving a
distribution which caused his Nonvested Account to be forfeited, he shall have
the right to repay to the Plan the entire amount of the distribution he received
(excluding any amount of such distribution resulting from Contributions which
were 100% vested when made). The repayment must be made before the earlier of
the date five years after the date he again becomes an Eligible Employee or the
end of the first period of five consecutive Vesting Breaks in Service which
begin after the date of the distribution.

         If the Participant makes the repayment provided above, the Plan
Administrator shall restore to his Account an amount equal to his Nonvested
Account which was forfeited on the date of distribution, unadjusted for any
investment gains or losses. If the amount of the repayment is zero dollars
because the Participant was deemed to have received a distribution or the plan
did not have repayment provisions in effect on the date the distribution was
made and he again performs an Hour-of-Service as an Eligible Employee within the
repayment period, the Plan Administrator shall restore the Participant's Account
as if he had made a required repayment on the date he performed such
Hour-of-Service. Restoration of the Participant's Account shall include
restoration of all Code Section 411(d)(6) protected benefits with respect to
that restored Account, according to applicable Treasury regulations. Provided,
however, the Plan Administrator shall not restore the Nonvested Account if a
Forfeiture Date has occurred after the date of the distribution and on or before
the date of repayment and that Forfeiture Date would result in a complete
forfeiture of the amount the Plan Administrator would otherwise restore.

         The Plan Administrator shall restore the Participant's Account by the
close of the Plan Year following the Plan Year in which repayment is made.
Permissible sources for restoration are Forfeitures or Employer Contributions.
The Employer shall contribute, without regard to any requirement or condition of
the EMPLOYER CONTRIBUTIONS SECTION of Article III,

                                       28
<PAGE>   30

such additional amount needed to make the required restoration. The repaid and
restored amounts are not included in the Participant's Annual Addition, as
defined in the CONTRIBUTION LIMITATION SECTION of Article III.

SECTION 3.03--ALLOCATION.

         The following Contributions for the Plan Year, plus any Forfeitures
released for allocation for the Plan Year, shall be allocated among all eligible
persons:

         Discretionary Contributions

         The eligible persons are all Participants who had 1,000 or more
Hours-of-Service in the Accrual Computation Period that ends in the Plan Year
and who are Active Participants on the last day of the Plan Year. The amount
allocated to such a person shall be determined below and under Article X.

         The following Contributions for each Plan Year shall be allocated to
each Participant for whom such Contributions were made under the EMPLOYER
CONTRIBUTIONS SECTION of Article III:

         Elective Deferral Contributions
         Matching Contributions

         These Contributions shall be allocated when made and credited to the
Participant's Account.

         Discretionary Contributions plus any Forfeitures are allocated as of
the last day of each Plan Year. The amount allocated to each eligible person for
the Plan Year shall be equal to the Discretionary Contributions plus any
Forfeitures for the Plan Year, multiplied by the ratio of (a) his Annual
Compensation as of the last day of the Plan Year to (b) the total of such
compensation for all eligible persons. This amount is credited to his Account.

SECTION 3.04--CONTRIBUTION LIMITATION.

         (a)      For the purpose of determining the contribution limitation set
                  forth in this section, the following terms are defined:

                  Aggregate Annual Addition means, for a Participant with
                  respect to any Limitation Year, the sum of his Annual
                  Additions under all defined contribution plans of the
                  Employer, as defined in this section, for such Limitation
                  Year. The nondeductible participant contributions which the
                  Participant makes to a defined benefit plan shall be treated
                  as Annual Additions to a defined contribution plan. The
                  Contributions the Employer, as defined in this section, made
                  for the Participant for a Plan Year beginning on or after
                  March 31, 1984, to an individual medical

                                       29
<PAGE>   31

                  benefit account, as defined in Code Section 415(l)(2), under a
                  pension or annuity plan of the Employer, as defined in this
                  section, shall be treated as Annual Additions to a defined
                  contribution plan. Also, amounts derived from contributions
                  paid or accrued after December 31, 1985, in Fiscal Years
                  ending after such date, which are attributable to
                  post-retirement medical benefits allocated to the separate
                  account of a key employee, as defined in Code Section
                  419A(d)(3), under a welfare benefit fund, as defined in Code
                  Section 419(e), maintained by the Employer, as defined in this
                  section, are treated as Annual Additions to a defined
                  contribution plan. The 25% of Compensation limit under Maximum
                  Permissible Amount does not apply to. Annual Additions
                  resulting from contributions made to an individual medical
                  account, as defined in Code Section 415(1)(2), or to Annual
                  Additions resulting from contributions for medical benefits,
                  within the meaning of Code Section 419A, after separation from
                  service. '

                  Annual Addition means the amount added to a Participant's
                  account for any Limitation Year which may not exceed the
                  Maximum Permissible Amount. The Annual Addition under any plan
                  for a Participant with respect to any Limitation Year, shall
                  be equal to the sum of (1) and (2) below:

                  (1)      Employer contributions and forfeitures credited to
                           his account for the Limitation Year.

                  (2)      Participant contributions made by him for the
                           Limitation Year.

                  Before the first Limitation Year beginning after December 31,
                  1986, the amount under (2) above is the lesser of (i) 1 1/2 of
                  his nondeductible participant contributions made for the
                  Limitation Year, or (ii) the amount, if any, of his
                  nondeductible participant contributions made for the
                  Limitation Year which is in excess of six percent of his
                  Compensation, as defined in this section, for such Limitation
                  Year.

                  Compensation means all wages for Federal income tax
                  withholding purposes, as defined under Code Section 3401(a)
                  (for purposes of income tax withholding at the source),
                  disregarding any rules limiting the remuneration included as
                  wages based on the nature or location of the employment or the
                  services performed.

                  For any self-employed individual Compensation will mean earned
                  income.

                  For purposes of applying the limitations of this section,
                  Compensation for a Limitation Year is the Compensation
                  actually paid or made available during such Limitation Year.

                                       30
<PAGE>   32

                  Defined Benefit Plan Fraction means, with respect to a
                  Limitation Year for a Participant who is or has been a
                  participant in a defined benefit plan ever maintained by the
                  Employer, as defined in this section, the quotient, expressed
                  as a decimal, of

                  (1)      the Participant's Projected Annual Benefit under all
                           such plans as of the close of such Limitation Year,
                           divided by

                  (2)      on and after the TEFRA Compliance Date, the lesser of
                           (i) or (ii) below:

                           (i)      1.25 multiplied by the maximum dollar
                                    limitation which applies to defined benefit
                                    plans determined for the Limitation Year
                                    under Code Sections 415(b) or (d) or

                           (ii)     1.4 multiplied by the Participant's highest
                                    average compensation as defined in the
                                    defined benefit plan(s),

                           including any adjustments under Code Section 415(b).

                           Before the TEFRA Compliance Date, this denominator is
                           the Participant's Projected Annual Benefit as of the
                           close of the Limitation Year if the plans) provided
                           the maximum benefit allowable.

                  The Defined Benefit Plan Fraction shall be modified as
                  follows:

                  If the Participant was a participant as of the first day of
                  the first Limitation Year beginning after December 31, 1986,
                  in one or more defined benefit plans maintained by the
                  Employer, as defined in this section, which were in existence
                  on May 6, 1986, the denominator of this fraction will not be
                  less than 125 percent of the sum of the annual benefits under
                  such plans which the Participant had accrued as of the close
                  of the last Limitation Year beginning before January 1, 1987,
                  disregarding any changes in the terms and conditions of the
                  plan after May 5, 1986. The preceding sentence applies only if
                  the defined benefit plans individually and in the aggregate
                  satisfied the requirements of Code Section 415 for all
                  Limitation Years beginning before January 1, 1987.

                  Defined Contribution Plan Fraction means, for a Participant
                  with respect to a Limitation Year, the quotient, expressed as
                  a decimal, of

                  (1)      the Participant's Aggregate Annual Additions for such
                           Limitation Year and all prior Limitation Years, under
                           all defined contribution plans (including the
                           Aggregate Annual Additions attributable to
                           nondeductible accounts under defined benefit plans
                           and attributable to all welfare benefit funds, as
                           defined in Code Section 419(e) and attributable to
                           individual medical

                                       31
<PAGE>   33

                           accounts, as defined in Code Section 415(l)(2) ever
                           maintained by the Employer, as defined in this
                           section, divided by

                  (2)      on and after the TEFRA Compliance Date, the sum of
                           the amount determined for the Limitation Year under
                           (i) or (ii) below, whichever is less, and the amounts
                           determined in the same manner for all prior
                           Limitation Years during which he has been an Employee
                           or an employee of a predecessor employer:

                           (i)      1.25 multiplied by the maximum permissible
                                    dollar amount for each such Limitation Year,
                                    or

                           (ii)     1.4 multiplied by the maximum permissible
                                    percentage of the Participant's
                                    Compensation, as defined in this section,
                                    for each such Limitation Year.

                           Before the TEFRA Compliance Date, this denominator is
                           the sum of the maximum allowable amount of Annual
                           Addition to his account(s) under all the plan(s) of
                           the Employer, as defined in this section, for each
                           such Limitation Year.

                  The Defined Contribution Plan Fraction shall be modified as
                  follows:

                  If the Participant was a participant as of the first day of
                  the first Limitation Year beginning after December 31, 1986,
                  in one or more defined contribution plans maintained by the
                  Employer, as defined in this section, which were in existence
                  on May 6, 1986, the numerator of this fraction shall be
                  adjusted if the sum of the Defined Contribution Plan Fraction
                  and Defined Benefit Plan Fraction would otherwise exceed 1.0
                  under the terms of this Plan. Under the adjustment, the dollar
                  amount determined below shall be permanently subtracted from
                  the numerator of this fraction. The dollar amount is equal to
                  the excess of the sum of the two fractions, before adjustment,
                  over 1.0 multiplied by the denominator of his Defined
                  Contribution Plan Fraction. The adjustment is calculated using
                  his Defined Contribution Plan Fraction and Defined Benefit
                  Plan Fraction as they would be computed as of the end of the
                  last Limitation Year beginning before January 1, 1987, and
                  disregarding any changes in the terms and conditions of the
                  plan made after May 5, 1986, but using the Code Section 415
                  limitations applicable to the first Limitation Year beginning
                  on or after January 1, 1987.

                  The Annual Addition for any Limitation Year beginning before
                  January 1, 1987, shall not be recomputed to treat all employee
                  contributions as Annual Additions.

                  For a plan that was in existence on July 1, 1982, for purposes
                  of determining the Defined Contribution Plan Fraction for any
                  Limitation Year ending after

                                       32
<PAGE>   34

                  December 31, 1982, the Plan Administrator may elect, in
                  accordance with the provisions of Code Section 415, that the
                  denominator for each Participant for all Limitation Years
                  ending before January 1, 1983, will be equal to

                  (1)      the Defined Contribution Plan Fraction denominator
                           which would apply for the last Limitation Year ending
                           in 1982 if an election under this paragraph were not
                           made, multiplied by.

                  (2)      a fraction, equal to (i) over (ii) below:

                           (i)      the lesser of (A) $51,875, or (B) 1.4,
                                    multiplied by 25% of the Participant's
                                    Compensation, as defined in this section,
                                    for the Limitation Year ending in 1981;

                           (ii)     the lesser of (A) $41,500, or (B) 25% of the
                                    Participant's Compensation, as defined in
                                    this section, for the Limitation Year ending
                                    in 1981.

                  The election described above is applicable only if the plan
                  administrators under all defined contribution plans of the
                  Employer, as defined in this section, also elect to use the
                  modified fraction.

                  Employer means any employer that adopts this Plan and all
                  Controlled Group members and any other entity required to be
                  aggregated with the employer pursuant to regulations under
                  Code Section 414(o).

                  Limitation Year means the 12-consecutive month period within
                  which it is determined whether or not the limitations of Code
                  Section 415 are exceeded. Limitation Year means each
                  12-consecutive month period ending on the last day of each
                  Plan Year, including corresponding 12-consecutive month
                  periods before January 1, 1985. If the Limitation Year is
                  other than the calendar year, execution of this Plan (or any
                  amendment to this Plan changing the Limitation Year)
                  constitutes the Employer's adoption of a written resolution
                  electing the Limitation Year. If the Limitation Year is
                  changed, the new Limitation Year shall begin within the
                  current Limitation Year, creating a short Limitation Year.

                  Maximum Permissible Amount means, for a Participant with
                  respect to any Limitation Year, the lesser of (1) or (2)
                  below:

                  (1)      The greater of $30,000 or one-fourth of the maximum
                           dollar limitation which applies to defined benefit
                           plans set forth in Code Section 415(b)(1)(A) as in
                           effect for the Limitation Year. (Before the TEFRA
                           Compliance Date, $25,000 multiplied by the cost of
                           living adjustment factor permitted by Federal
                           regulations.)

                                       33
<PAGE>   35

                  (2)      25% of his Compensation, as defined in this section,
                           for such Limitation Year.

                  The compensation limitation referred to in (2) shall not apply
                  to any contribution for medical benefits (within the meaning
                  of Code Section 401(h) or Code Section 419A(f)(2)) which is
                  otherwise treated as an annual addition under Code Section
                  415(l)(1) or Code Section 419A(d)(2).

                  If there is a short Limitation Year because of a change in
                  Limitation Year, the Maximum Permissible Amount will not
                  exceed the maximum dollar limitation which would otherwise
                  apply multiplied by the following fraction:

<TABLE>
<CAPTION>
                           Number of months in the short Limitation Year
                           ---------------------------------------------
<S>                        <C>
                                                12
</TABLE>

                  Projected Annual Benefit means a Participant's expected annual
                  benefit under all defined benefit plan(s) ever maintained by
                  the Employer, as defined in this section. The Projected Annual
                  Benefit shall be determined assuming that the Participant will
                  continue employment until the later of current age or normal
                  retirement age under such plan(s), and that the Participant's
                  compensation for the current Limitation Year and all other
                  relevant factors used to determine benefits under such plans)
                  will remain constant for all future Limitation Years. Such
                  expected annual benefit shall be adjusted to the actuarial
                  equivalent of a straight life annuity if expressed in a form
                  other than a straight life or qualified joint and survivor
                  annuity.

         (b)      The Annual Addition under this Plan for a Participant during a
                  Limitation Year shall not be more than the Maximum Permissible
                  Amount.

         (c)      Contributions and Forfeitures which would otherwise be
                  credited to the Participant's Account shall be limited or
                  reallocated to the extent necessary to meet the restrictions
                  of subparagraph (b) above for any Limitation Year in the
                  following order. Forfeitures shall be reallocated in the same
                  manner as described in the ALLOCATION SECTION of Article III
                  to the remaining Participants to whom the limitations do not
                  apply for the Limitation Year. Discretionary Contributions
                  shall be reallocated in the same manner as described in the
                  ALLOCATION SECTION of Article III to the remaining
                  Participants to whom the limitations do not apply for the
                  Limitation Year. The Discretionary Contributions shall be
                  limited if there are no such remaining Participants. Elective
                  Deferral Contributions that are not the basis for Matching
                  Contributions shall be limited. Matching Contributions shall
                  be limited to the extent necessary to limit the Participant's
                  Annual Addition under this Plan to his maximum amount. If
                  Matching Contributions are limited because of this limit,
                  Elective Deferral

                                       34
<PAGE>   36

                  Contributions that are the basis for Matching Contributions
                  shall be reduced in proportion.

                  If, due to (i) an error in estimating a Participant's
                  Compensation as defined in this section, (ii) because
                  Forfeitures cannot be reallocated to remaining Participants
                  due to the limits of this section, (iii) as a result of a
                  reasonable error in determining the amount of elective
                  deferrals (within the meaning of Code Section 402(g)(3)) that
                  may be made with respect to any individual under the limits of
                  Code Section 415, or (iv) other limited facts and
                  circumstances, a Participant's Annual Addition is greater than
                  the amount permitted in (b) above, such excess amount shall be
                  applied as follows. Elective Deferral Contributions which are
                  not the basis for Matching Contributions will be returned to
                  the Participant. If an excess still exists, Elective Deferral
                  Contributions that are the basis for Matching Contributions
                  will be returned to the Participant. Matching Contributions
                  based on Elective Deferral Contributions which are returned
                  shall be forfeited. If after the return of Elective Deferral
                  Contributions, an excess amount still exists, and the
                  Participant is an Active Participant as of the end of the
                  Limitation Year, the excess amount shall be used to offset
                  Employer Contributions for him in the next Limitation Year. If
                  after the return of Elective Deferral Contributions, an excess
                  amount still exists, and the Participant is not an Active
                  Participant as of the end of the Limitation Year, the excess
                  amount will be held in a suspense account which will be used
                  to offset Employer Contributions for all Participants in the
                  next Limitation Year. No Employer Contributions that would be
                  included in the next Limitation Year's Annual Addition may be
                  made before the total suspense account has been used.

         (d)      A Participant's Aggregate Annual Addition for a Limitation
                  Year shall not exceed the Maximum Permissible Amount.

                  If, for the Limitation Year, the Participant has an Annual
                  Addition under more than one defined contribution plan or a
                  welfare benefit fund, as defined in Code Section 419(e), or an
                  individual medical account, as defined in Code Section
                  415(l)(2), maintained by the Employer, as defined in this
                  section, and such plans and welfare benefit funds and
                  individual medical accounts do not otherwise limit the
                  Aggregate Annual Addition to the Maximum Permissible Amount,
                  any reduction necessary shall be made first to the profit
                  sharing plans, then to all other such plans and welfare
                  benefit funds and individual medical accounts and, if
                  necessary, by reducing first those that were most recently
                  allocated. Welfare benefit funds and individual medical
                  accounts shall be deemed to be allocated first. However,
                  elective deferral contributions shall be the last
                  contributions reduced before the welfare benefit fund or
                  individual medical account is reduced.

                                       35
<PAGE>   37

                  If some of the Employer's defined contribution plans were not
                  in existence on July 1, 1982, and some were in existence on
                  that date, the Maximum Permissible Amount which is based on a
                  dollar amount may differ for a Limitation Year. The Aggregate
                  Annual Addition for the Limitation Year in which the dollar
                  limit differs shall not exceed the lesser of (1) 25% of
                  Compensation as defined in this section, (2) $45,475, or (3)
                  the greater of $30,000 or the sum of the Annual Additions for
                  such Limitation Year under all the plan(s) to which the
                  $45,475 amount applies:

         (e)      If a Participant is or has been a participant in both defined
                  benefit and defined contribution plans (including a welfare
                  benefit fund or individual medical account) ever maintained by
                  the Employer, as defined in this section, the sum of the
                  Defined Benefit Plan Fraction and the Defined Contribution
                  Plan Fraction for any Limitation Year shall not exceed 1.0
                  (1.4 before the TEFRA Compliance Date).

                  After all other limitations set out in the plans and funds
                  have been applied, the following limitations shall apply so
                  that the sum of the Participant's Defined Benefit Plan
                  Fraction and Defined Contribution Plan Fraction shall not
                  exceed 1.0 (1.4 before the TEFRA Compliance Date). The
                  Projected Annual Benefit shall be limited first. If the
                  Participant's annual benefit(s) equal his Projected Annual
                  Benefit, as limited, then Annual Additions to the defined
                  contribution plan(s) shall be limited to the extent needed to
                  reduce the sum to 1.0 (1.4). First, the voluntary
                  contributions the Participant may make for the Limitation Year
                  shall be limited. Next, in the case of a profit sharing plan,
                  any forfeitures allocated to the Participant shall be
                  reallocated to remaining participants to the extent necessary
                  to reduce the decimal to 1.0 (1.4). Last, to the extent
                  necessary, employer contributions for the Limitation Year
                  shall be reallocated or limited, and any required and optional
                  employee contributions to which such employer contributions
                  were geared shall be reduced in proportion.

                  If, for the Limitation Year, the Participant has an Annual
                  Addition under more than one defined contribution plan or
                  welfare benefit fund or individual medical account maintained
                  by the Employer, as defined in this section, any reduction
                  above shall be made first to the profit sharing plans, then to
                  all other such plans and welfare benefit plans and individual
                  medical accounts and, if necessary, by reducing first those
                  that were most recently allocated. However, elective deferral
                  contributions shall be the last contributions reduced before
                  the welfare benefit fund or individual medical account is
                  reduced. The annual addition to the welfare benefit fund and
                  individual medical account shall be limited last.

                                       36
<PAGE>   38

SECTION 3.05--EXCESS AMOUNTS.

         (a)      For the purposes of this section, the following terms are
                  defined:

                  Actual Deferral Percentage means the ratio (expressed as a
                  percentage) of Elective Deferral Contributions under this Plan
                  on behalf of the Eligible Participant for the Plan Year to the
                  Eligible Participant's Compensation for the Plan Year. In
                  modification of the foregoing, Compensation shall be limited
                  to the Compensation received while an Active Participant. The
                  Elective Deferral Contributions used to determine the Actual
                  Deferral Percentage shall include Excess Elective Deferrals
                  (other than Excess Elective Deferrals of Nonhighly Compensated
                  Employees that arise solely from Elective Deferral
                  Contributions made under this Plan or any other plans of the
                  Employer or a Controlled Group member), but shall exclude
                  Elective Deferral Contributions that are used in computing the
                  Contribution Percentage (provided the Average Actual Deferral
                  Percentage test is satisfied both with and without exclusion
                  of these Elective Deferral Contributions. Under such rules as
                  the Secretary of the Treasury shall prescribe in Code Section
                  401(k)(3)(D), the Employer may elect to include Qualified
                  Nonelective Contributions and Qualified Matching Contributions
                  under this Plan in computing the Actual Deferral Percentage.
                  For an Eligible Participant for whom such Contributions on his
                  behalf for the Plan Year are zero, the percentage is zero.

                  Aggregate Limit means the greater of (1) or (2) below:

                  (1)      The sum of

                           (i)      125 percent of the greater of the Average
                                    Actual Deferral Percentage of the Nonhighly
                                    Compensated Employees for the Plan Year or
                                    the Average Contribution Percentage of
                                    Nonhighly Compensated Employees under the
                                    Plan subject to Code Section 401(m) for the
                                    Plan Year beginning with or within the Plan
                                    Year of the cash or deferred arrangement and

                           (ii)     the lesser of 200% or two plus the lesser of
                                    such Average Actual Deferral Percentage or
                                    Average Contribution Percentage.

                  (2)      The sum of

                           (i)      125 percent of the lesser of the Average
                                    Actual Deferral Percentage of the Nonhighly
                                    Compensated Employees for the Plan Year or
                                    the Average Contribution Percentage of
                                    Nonhighly Compensated Employees under the
                                    Plan subject to Code Section 401(m) for the
                                    Plan Year beginning with or within the Plan
                                    Year of the cash or deferred arrangement and

                                       37
<PAGE>   39

                           (ii)     the lesser of 200% or two plus the greater
                                    of such Average Actual Deferral Percentage
                                    or Average Contribution Percentage.

                  Average Actual Deferral Percentage means the average
                  (expressed as a percentage) of the Actual Deferral Percentages
                  of the Eligible Participants in a group.

                  Average Contribution Percentage means the average (expressed
                  as a percentage) of the Contribution Percentages of the
                  Eligible Participants in a group.

                  Contribution Percentage means the ratio (expressed as a
                  percentage) of the Eligible Participant's Contribution
                  Percentage Amounts to the Eligible Participant's Compensation
                  for the Plan Year. In modification of the foregoing,
                  Compensation shall be limited to the Compensation received
                  while an Active Participant. For an Eligible Participant for
                  whom such Contribution Percentage Amounts for the Plan Year
                  are zero, the percentage is zero.

                  Contribution Percentage Amounts means the sum of the
                  Participant Contributions and Matching Contributions (that are
                  not Qualified Matching Contributions) under this Plan on
                  behalf of the Eligible Participant for the Plan Year. Such
                  Contribution Percentage Amounts shall not include Matching
                  Contributions that are forfeited either to correct Excess
                  Aggregate Contributions or because the Contributions to which
                  they relate are Excess Elective Deferrals, Excess
                  Contributions or Excess Aggregate Contributions. Under such
                  rules as the Secretary of the Treasury shall prescribe in Code
                  Section 401(k)(3)(D), the Employer may elect to include
                  Qualified Nonelective Contributions and Qualified Matching
                  Contributions under this Plan which were not used in computing
                  the Actual Deferral Percentage in computing the Contribution
                  Percentage. The Employer may also elect to use Elective
                  Deferral Contributions in computing the Contribution
                  Percentage so long as the Average Actual Deferral Percentage
                  test is met before the Elective Deferral Contributions are
                  used in the Average Contribution Percentage test and continues
                  to be met following the exclusion of those Elective Deferral
                  Contributions that are used to meet the Average Contribution
                  Percentage test.

                  Elective Deferral Contributions means employer contributions
                  made on behalf of a participant pursuant to an election to
                  defer under any qualified cash or deferred arrangement as
                  described in Code Section 401(k), any simplified employee
                  pension cash or deferred arrangement as described in Code
                  Section 402(h)(1)(B), any eligible deferred compensation plan
                  under Code Section 457, any plan as described under Code
                  Section 501(c)(18), and any employer contributions made on
                  behalf of a participant for the purchase of an annuity

                                       38
<PAGE>   40

                  contract under Code Section 403(b) pursuant to a salary
                  reduction agreement. Elective Deferral Contributions shall not
                  include any deferrals properly distributed as excess Annual
                  Additions.

                  Eligible Participant means, for purposes of the Actual
                  Deferral Percentage, any Employee who is eligible to make an
                  Elective Deferral Contribution, and shall include the
                  following: any Employee who would be a plan participant if he
                  chose to make required contributions; any Employee who can
                  make Elective Deferral Contributions but who has changed the
                  amount of his Elective Deferral Contribution to 0%, or whose
                  eligibility to make an Elective Deferral Contribution is
                  suspended because of a loan, distribution or hardship
                  withdrawal; and, any Employee who is not able to make an
                  Elective Deferral Contribution because of Code Section
                  415(c)(1) - Annual Additions limits. The Actual Deferral
                  Percentage for any such included Employee is zero.

                  Eligible Participant means, for purposes of the Average
                  Contribution Percentage, any Employee who is eligible to make
                  a Participant Contribution or to receive a Matching
                  Contribution, and shall include the following: any Employee
                  who would be a plan participant if he chose to make required
                  contributions; any Employee who can make a Participant
                  Contribution or receive a matching contribution but who has
                  made an election not to participate in the Plan; and any
                  Employee who is not able to make a Participant Contribution or
                  receive a matching contribution because of Code Section
                  415(c)(1) or 415(e) limits. The Average Contribution
                  Percentage for any such included Employee is zero.

                  Excess Aggregate Contributions means, with respect to any Plan
                  Year, the excess of:

                  (1)      The aggregate Contributions taken into account in
                           computing the numerator of the Contribution
                           Percentage actually made on behalf of Highly
                           Compensated Employees for such Plan Year, over

                  (2)      The maximum amount of such Contributions permitted by
                           the Average Contribution Percentage test (determined
                           by reducing Contributions made on behalf of Highly
                           Compensated Employees in order of their Contribution
                           Percentages beginning with the highest of such
                           percentages).

                  Such determination shall be made after first determining
                  Excess Elective Deferrals and then determining Excess
                  Contributions.

                                       39
<PAGE>   41

                  Excess Contributions means, with respect to any Plan Year, the
                  excess of:

                  (1)      The aggregate amount of Contributions actually taken
                           into account in computing the Actual Deferral
                           Percentage of Highly Compensated Employees for such
                           Plan Year, over

                  (2)      The maximum amount of such Contributions permitted by
                           the Actual Deferral Percentage test (determined by
                           reducing Contributions made on behalf of Highly
                           Compensated Employees in order of the Actual Deferral
                           Percentages, beginning with the highest of such
                           percentages).

                  A Participant's Excess Contributions for a Plan Year will be
                  reduced by the amount of Excess Elective Deferrals, if any,
                  previously distributed to the Participant for the taxable year
                  ending in that Plan Year.

                  Excess Elective Deferrals means those Elective Deferral
                  Contributions that are includible in a Participant's gross
                  income under Code Section 402(g) to the extent such
                  Participant's Elective Deferral Contributions for a taxable
                  year exceed the dollar limitation under such Code section.
                  Excess Elective Deferrals shall be treated as Annual
                  Additions, as defined in the CONTRIBUTION LIMITATION SECTION
                  of Article III, under the Plan, unless such amounts are
                  distributed no later than the first April 15 following the
                  close of the Participant's taxable year.

                  Family Member means an Employee, or former employee; the
                  spouse of the Employee or former employee, and the lineal
                  ascendants or descendants and the spouses of such lineal
                  ascendants or descendants of any such Employee or former
                  employee. In determining if an individual is a family member
                  as to an Employee or former employee, legal adoptions are
                  taken into account.

                  Matching Contributions means employer contributions made to
                  this or any other defined contribution plan, or to a contract
                  described in Code Section 403(b), on behalf of a participant
                  on account of a Participant Contribution made by such
                  participant, or on account of a participant's Elective
                  Deferral Contributions, under a plan maintained by the
                  employer.

                  Participant Contributions means contributions made to any plan
                  by or on behalf of a participant that are included in the
                  participant's gross income in the year in which made and that
                  are maintained under a separate account to which earnings and
                  losses are allocated.

                  Qualified Matching Contributions means Matching Contributions
                  which are subject to the distribution and nonforfeitability
                  requirements under Code Section 401(k) when made.

                                       40
<PAGE>   42

                  Qualified Nonelective Contributions means any employer
                  contributions (other than Matching Contributions) which an
                  employee may not elect to have paid to him in cash instead of
                  being contributed to the plan and which are subject to the
                  distribution and nonforfeitability requirements under Code
                  Section 401(k) when made.

         (b)      A Participant may assign to this Plan any Excess Elective
                  Deferrals made during a taxable year by notifying the Plan
                  Administrator in writing on or before the first following
                  March 1 of the amount of the Excess Elective Deferrals to be
                  assigned to the Plan. A Participant is deemed to notify the
                  Plan Administrator of any Excess Elective Deferrals that arise
                  by taking into account only those Elective Deferral
                  Contributions made to this Plan and any other plans of the
                  Employer or a Controlled Group member and reducing such Excess
                  Elective Deferrals by the amount of Excess Contributions, if
                  any, previously distributed for the Plan Year beginning in
                  that taxable year. The Participant's claim for Excess Elective
                  Deferrals shall be accompanied by the Participant's written
                  statement that if such amounts are not distributed, such
                  Excess Elective Deferrals, when added to amounts deferred
                  under other plans or arrangements described in Code Sections
                  401(k), 408(k) or 403(b), will exceed the limit imposed on the
                  Participant by Code Section 402(g) for the year in which the
                  deferral occurred. The Excess Elective Deferrals assigned to
                  this Plan can not exceed the Elective Deferral Contributions
                  allocated under this Plan for such taxable year.

                  Notwithstanding any other provisions of the Plan, Elective
                  Deferral Contributions in an amount equal to the Excess
                  Elective Deferrals assigned to this Plan, plus any income and
                  minus any loss allocable thereto, shall be distributed no
                  later than April 15 to any Participant to whose Account Excess
                  Elective Deferrals were assigned for the preceding year and
                  who claims Excess Elective Deferrals for such taxable year.

                  The income or loss allocable to such Excess Elective Deferrals
                  shall be equal to the income or loss allocable to the
                  Participant's Elective Deferral Contributions for the taxable
                  year in which the excess occurred multiplied by a fraction.
                  The numerator of the fraction is the Excess Elective
                  Deferrals. The denominator of the fraction is the closing
                  balance without regard to any income or loss occurring during
                  such taxable year (as of the end of such taxable year) of the
                  Participant's Account resulting from Elective Deferral
                  Contributions.

                  Any Matching Contributions which were based on the Elective
                  Deferral Contributions which are distributed as Excess
                  Elective Deferrals, plus any income and minus any loss
                  allocable thereto, shall be forfeited. These Forfeitures shall
                  be used to offset the earliest Employer Contribution due after
                  the Forfeiture arises.

                                       41
<PAGE>   43

         (c)      As of the end of each Plan Year after Excess Elective
                  Deferrals have been determined, one of the following tests
                  must be met:

                  (1)      The Average Actual Deferral Percentage for Eligible
                           Participants who are Highly Compensated Employees for
                           the Plan Year is not more than the Average Actual
                           Deferral Percentage for Eligible Participants who are
                           Nonhighly Compensated Employees for the Plan Year
                           multiplied by 1.25.

                  (2)      The Average Actual Deferral Percentage for Eligible
                           Participants who are Highly Compensated Employees for
                           the Plan Year is not more than the Average Actual
                           Deferral Percentage for Eligible Participants who are
                           Nonhighly Compensated Employees for the Plan Year
                           multiplied by 2 and the difference between the
                           Average Actual Deferral Percentages is not more than
                           2.

                  The Actual Deferral Percentage for any Eligible Participant
                  who is a Highly Compensated Employee for the Plan Year and who
                  is eligible to have Elective Deferral Contributions (and
                  Qualified Nonelective Contributions or Qualified Matching
                  Contributions, or both, if used in computing the Actual
                  Deferral Percentage) allocated to his account under two or
                  more plans or arrangements described in Code Section 401(k)
                  that are maintained by the Employer or a Controlled Group
                  member shall be determined as if all such Elective Deferral
                  Contributions (and, if applicable, such Qualified Nonelective
                  Contributions or Qualified Matching Contributions, or both)
                  were made under a single arrangement. If a Highly Compensated
                  Employee participates in two or more cash or deferred
                  arrangements that have different Plan Years, all cash or
                  deferred arrangements ending with or within the same calendar
                  year shall be treated as a single arrangement. Notwithstanding
                  the foregoing, certain plans shall be treated as separate if
                  mandatorily disaggregated under the regulations under Code
                  Section 401(k) or permissibly disaggregated as provided.

                  In the event that this Plan satisfies the requirements of Code
                  Sections 401(k), 401(a)(4), or 410(b) only if aggregated with
                  one or more other plans, or if one or more other plans satisfy
                  the requirements of such Code sections only if aggregated with
                  this Plan, then this section shall be applied by determining
                  the Actual Deferral Percentage of employees as if all such
                  plans were a single plan. Plans may be aggregated in order to
                  satisfy Code Section 401(k) only if they have the same Plan
                  Year.

                  For purposes of determining the Actual Deferral Percentage of
                  an Eligible Participant who is a five-percent owner or one of
                  the ten most highly-paid Highly Compensated Employees, the
                  Elective Deferral Contributions (and Qualified Nonelective
                  Contributions or Qualified Matching Contributions, or both, if
                  used in

                                       42
<PAGE>   44

                  computing the Actual Deferral Percentage) and Compensation of
                  such Eligible Participant include the Elective Deferral
                  Contributions (and, if applicable, Qualified Nonelective
                  Contributions or Qualified Matching Contributions, or both)
                  and Compensation for the Plan Year of Family Members. Family
                  Members, with respect to such Highly Compensated Employees,
                  shall be disregarded as separate employees in determining the
                  Actual Deferral Percentage both for Participants who are
                  Nonhighly Compensated Employees and for Participants who are
                  Highly Compensated Employees.

                  For purposes of determining the Actual Deferral Percentage,
                  Elective Deferral Contributions, Qualified Nonelective
                  Contributions and Qualified Matching Contributions must be
                  made before the last day of the 12-month period immediately
                  following the Plan Year to which contributions relate.

                  The Employer shall maintain records sufficient to demonstrate
                  satisfaction of the Average Actual Deferral Percentage test
                  and the amount of Qualified Nonelective Contributions or
                  Qualified Matching Contributions, or both, used in such test.

                  The determination and treatment of the Contributions used in
                  computing the Actual Deferral Percentage shall satisfy such
                  other requirements as may be prescribed by the Secretary of
                  the Treasury.

                  If the Plan Administrator should determine during the Plan
                  Year that neither of the above tests is being met, the Plan
                  Administrator may adjust the amount of future Elective
                  Deferral Contributions of the Highly Compensated Employees.

                  Notwithstanding any other provisions of this Plan, Excess
                  Contributions, plus any income and minus any loss allocable
                  thereto, shall be distributed no later than the last day of
                  each Plan Year to Participants to whose Accounts such Excess
                  Contributions were allocated for the preceding Plan Year. If
                  such excess amounts are distributed more than 2 1/2 months
                  after the last day of the Plan Year in which such excess
                  amounts arose, a ten (10) percent excise tax will be imposed
                  on the employer maintaining the plan with respect to such
                  amounts. Such distributions shall be made beginning with the
                  Highly Compensated Employee(s) who has the greatest Actual
                  Deferral Percentage, reducing his Actual Deferral Percentage
                  to the next highest Actual Deferral Percentage level. Then, if
                  necessary, reducing the Actual Deferral Percentage of the
                  Highly Compensated Employees at the next highest level, and
                  continuing in this manner until the average Actual Deferral
                  Percentage of the Highly Compensated Group satisfies the
                  Actual Deferral Percentage test. Excess Contributions of
                  Participants who are subject to the family member aggregation
                  rules shall be allocated among the Family Members in
                  proportion to the Elective

                                       43
<PAGE>   45

                  Deferral Contributions (and amounts treated as Elective
                  Deferral Contributions) of each Family Member that is combined
                  to determine the combined Actual Deferral Percentage.

                  Excess Contributions shall be treated as Annual Additions, as
                  defined in the CONTRIBUTION LIMITATION SECTION of Article III,
                  under the Plan.

                  The Excess Contributions shall be adjusted for income or loss.
                  The income or loss allocable to such Excess Contributions
                  shall be equal to the income or loss allocable to the
                  Participant's Elective Deferral Contributions (and, if
                  applicable, Qualified Nonelective Contributions or Qualified
                  Matching Contributions, or both) for the Plan Year in which
                  the excess occurred multiplied by a fraction. The numerator of
                  the fraction is the Excess Contributions. The denominator of
                  the fraction is the closing balance without regard to any
                  income or loss occurring during such Plan Year (as of the end
                  of such Plan Year) of the Participant's Account resulting from
                  Elective Deferral Contributions (and Qualified Nonelective
                  Contributions or Qualified Matching Contributions, or both, if
                  used in computing the Actual Deferral Percentage).

                  Excess Contributions shall be distributed from the
                  Participant's Account resulting first from Elective Deferral
                  Contributions not the basis for Matching Contributions, then
                  if necessary, from Elective Deferral Contributions which are
                  the basis for Matching Contributions. If such Excess
                  Contributions exceed the balance in the Participant's Account
                  resulting from Elective Deferral Contributions, the balance
                  shall be distributed from the Participant's Account resulting
                  from Qualified Matching Contributions (if applicable) and
                  Qualified Nonelective Contributions, respectively.

                  Any Matching Contributions which were based on the Elective
                  Deferral Contributions which are distributed as Excess
                  Contributions, plus any income and minus any loss allocable
                  thereto, shall be forfeited. These Forfeitures shall be used
                  to offset the earliest Employer Contribution due after the
                  Forfeiture arises.

         (d)      As of the end of each Plan Year, one of the following tests
                  must be met:

                  (1)      The Average Contribution Percentage for Eligible
                           Participants who are Highly Compensated Employees for
                           the Plan Year is not more than the Average
                           Contribution Percentage for Eligible Participants who
                           are Nonhighly Compensated Employees for the Plan Year
                           multiplied by 1.25.

                  (2)      The Average Contribution Percentage for Eligible
                           Participants who are Highly Compensated Employees for
                           the Plan Year is not more than the

                                       44
<PAGE>   46

                           Average Contribution Percentage for Eligible
                           Participants who are Nonhighly Compensated Employees
                           for the Plan Year multiplied by 2 and the difference
                           between the Average Contribution Percentages is not
                           more than 2.

                  If one or more Highly Compensated Employees participate in
                  both a cash or deferred arrangement and a plan subject to the
                  Average Contribution Percentage test maintained by the
                  Employer or a Controlled Group member and the sum of the
                  Average Actual Deferral Percentage and Average Contribution
                  Percentage of those Highly Compensated Employees subject to
                  either or both tests exceeds the Aggregate Limit, then the
                  Contribution Percentage of those Highly Compensated Employees
                  who also participate in a cash or deferred arrangement will be
                  reduced (beginning with such Highly Compensated Employees
                  whose Contribution Percentage is the highest) so that the
                  limit is not exceeded. The amount by which each Highly
                  Compensated Employee's Contribution Percentage is reduced
                  shall be treated as an Excess Aggregate Contribution. The
                  Average Actual Deferral Percentage and Average Contribution
                  Percentage of the Highly Compensated Employees are determined
                  after any corrections required to meet the Average Actual
                  Deferral Percentage and Average Contribution Percentage tests.
                  Multiple use does not occur if either the Average Actual
                  Deferral Percentage or Average Contribution Percentage of the
                  Highly Compensated Employees does not exceed 1.25 multiplied
                  by the Average Actual Deferral Percentage and Average
                  Contribution Percentage of the Nonhighly Compensated
                  Employees.

                  The Contribution Percentage for any Eligible Participant who
                  is a Highly Compensated Employee for the Plan Year and who is
                  eligible to have Contribution Percentage Amounts allocated to
                  his account under two or more plans described in Code Section
                  401(a) or arrangements described in Code Section 401(k) that
                  are maintained by the Employer or a Controlled Group member
                  shall be determined as if the total of such Contribution
                  Percentage Amounts was made under each plan. If a Highly
                  Compensated Employee participates in two or more cash or
                  deferred arrangements that have different Plan Years, all cash
                  or deferred arrangements ending with or within the same
                  calendar year shall be treated as a single arrangement.
                  Notwithstanding the foregoing, certain plans shall be treated
                  as separate if mandatorily disaggregated under the regulations
                  under Code Section 401(m) or permissibly disaggregated as
                  provided.

                  In the event that this Plan satisfies the requirements of Code
                  Sections 401(m), 401(a)(4), or 410(b) only if aggregated with
                  one or more other plans, or if one or more other plans satisfy
                  the requirements of Code sections only if aggregated with this
                  Plan, then this section shall be applied by determining the
                  Contribution

                                       45
<PAGE>   47

                  Percentages of Eligible Participants as if all such plans were
                  a single plan. Plans may be aggregated in order to satisfy
                  Code Section 401(m) only if they have the same Plan Year.

                  For purposes of determining the Contribution Percentage of an
                  Eligible Participant who is a five-percent owner or one of the
                  ten most highly-paid Highly Compensated Employees, the
                  Contribution Percentage Amounts and Compensation of such
                  Participant shall include Contribution Percentage Amounts and
                  Compensation for the Plan Year of Family Members. Family
                  Members, with respect to Highly Compensated Employees, shall
                  be disregarded as separate employees in determining the
                  Contribution Percentage both for employees who are Nonhighly
                  Compensated Employees and for employees who are Highly
                  Compensated Employees.

                  For purposes of determining the Contribution Percentage,
                  Participant Contributions are considered to have been made in
                  the Plan Year in which contributed to the Plan. Matching
                  Contributions and Qualified Nonelective Contributions will be
                  considered made for a Plan Year if made no later than the end
                  of the 12-month period beginning on the day after the close of
                  the Plan Year.

                  The Employer shall maintain records sufficient to demonstrate
                  satisfaction of the Average Contribution Percentage test and
                  the amount of Qualified Nonelective Contributions or Qualified
                  Matching Contributions, or both, used in such test.

                  The determination and treatment of the Contribution Percentage
                  of any Participant shall satisfy such other requirements as
                  may be prescribed by the Secretary of the Treasury.

                  Notwithstanding any other provisions of this Plan, Excess
                  Aggregate Contributions, plus any income and minus any loss
                  allocable thereto, shall be forfeited, if not vested, or
                  distributed, if vested, no later than the last day of each
                  Plan Year to Participants to whose Accounts such Excess
                  Aggregate Contributions were allocated for the preceding Plan
                  Year. If such Excess Aggregate Contributions are distributed
                  more than 2 1/2 months after the last day of the Plan Year in
                  which such excess amounts arose, a ten (10) percent excise tax
                  will be imposed on the employer maintaining the plan with
                  respect to those amounts. Excess Aggregate Contributions will
                  be distributed beginning with the Highly Compensated
                  Employee(s) who has the greatest Contribution Percentage,
                  reducing his contribution percentage to the next highest
                  level. Then, if necessary, reducing the Contribution
                  Percentage of the Highly Compensated Employee at the next
                  highest level, and continuing in this manner until the Actual
                  Contribution Percentage of the Highly Compensated Group
                  satisfies the Actual Contribution Percentage Test. Excess
                  Aggregate Contributions of Participants

                                       46
<PAGE>   48

                  who are subject to the family member aggregation rules shall
                  be allocated among the Family Members in proportion to the
                  Employee and Matching Contributions (or amounts treated as
                  Matching Contributions) of each Family Member that is combined
                  to determine the combined Contribution Percentage. Excess
                  Aggregate Contributions shall be treated as Annual Additions,
                  as defined in the CONTRIBUTION LIMITATION SECTION of Article
                  III, under the Plan.

                  The Excess Aggregate Contributions shall be adjusted for
                  income or loss. The income or loss allocable to such Excess
                  Aggregate Contributions shall be equal to the income or loss
                  allocable to the Participant's Contribution Percentage Amounts
                  for the Plan Year in which the excess occurred multiplied by a
                  fraction. The numerator of the fraction is the Excess
                  Aggregate Contributions. The denominator of the fraction is
                  the closing balance without regard to any income or loss
                  occurring during such Plan Year (as of the end of such Plan
                  Year) of the Participant's Account resulting from Contribution
                  Percentage Amounts.

                  Excess Aggregate Contributions shall be distributed from the
                  Participant's Account resulting from participant Contributions
                  that are not required as a condition of employment or
                  participation or for obtaining additional benefits from
                  Employer Contributions. If such Excess Aggregate Contributions
                  exceed the balance in the Participant's Account resulting from
                  such Participant Contributions, the balance shall be
                  forfeited, if not vested, or distributed, if vested, on a
                  pro-rata basis from the Participant's Account resulting from
                  Contribution Percentage Amounts. These Forfeitures shall be
                  used to offset the earliest Employer Contribution due after
                  the Forfeiture arises.

                                       47
<PAGE>   49

                                   ARTICLE IV

                           INVESTMENT OF CONTRIBUTIONS

SECTION 4.01--INVESTMENT OF CONTRIBUTIONS.

         All Contributions are forwarded by the Employer to the Insurer to be
deposited under the Group Contract or forwarded to the Trustee to be deposited
in the Trust Fund.

         Investment of Contributions is governed by the provisions of the Trust,
the Group Contract and any other funding arrangement in which the Trust Fund is
or may be invested. To the extent permitted by the Trust, Group Contract or
other funding arrangement, the parties named below shall direct the
Contributions to any of the accounts available under the Trust or Group Contract
and may request the transfer of assets resulting from those Contributions
between such accounts. A Participant may not direct the Trustee to invest the
Participant's Account in collectibles. Collectibles means any work of art, rug
or antique, metal or gem, stamp or coin, alcoholic beverage or other tangible
personal property specified by the Secretary of Treasury. To the extent that a
Participant does not direct the investment of his Account, such Account shall be
invested ratably in the accounts available under the Trust or Group Contract in
the same manner as the undirected Accounts of all other Participants. The Vested
Accounts of all Inactive Participants may be segregated and invested separately
from the Accounts of all other Participants.

         The Trust Fund shall be valued at current fair market value as of the
last day of the last calendar month ending in the Plan Year and, at the
discretion of the Trustee, may be valued more frequently. The valuation shall
take into consideration investment earnings credited, expenses charged, payments
made and changes in the value of the assets held in the Trust Fund. The Account
of a Participant shall be credited with its share of the gains and losses of the
Trust Fund. That part of a Participant's Account invested in a funding
arrangement which establishes an account or accounts for such Participant
thereunder shall be credited with the gain or loss from such account or
accounts. That part of a Participant's Account which is invested in other
funding arrangements shall be credited with a proportionate share of the gain or
loss of such investments. The share shall be determined by multiplying the gain
or loss of the investment by the ratio of the part of the Participant's Account
invested in such funding arrangement to the total of the Trust Fund invested in
such funding arrangement.

         At least annually, the Named Fiduciary shall review all pertinent
Employee information and Plan data in order to establish the funding policy of
the Plan and to determine appropriate methods of carrying out the Plan's
objectives. The Named Fiduciary shall inform the Trustee and any Investment
Manager of the Plan's short-term and long-term financial needs so the investment
policy can be coordinated with the Plan's financial requirements.

                                       48
<PAGE>   50

         (a)      Employer Contributions other than Elective Deferral
                  Contributions: The Participant shall direct the investment of
                  such Employer Contributions and transfer of assets resulting
                  from those Contributions.

         (b)      Elective Deferral Contributions: The Participant shall direct
                  the investment of Elective Deferral Contributions and transfer
                  of assets resulting from those Contributions.

         (c)      Rollover Contributions: The Participant shall direct the
                  investment of Rollover Contributions and transfer of assets
                  resulting from those Contributions.

         However, the Named Fiduciary may delegate to the Investment Manager
investment discretion for Contributions and Plan assets which are not subject to
Participant direction.

SECTION 4.01 A--INVESTMENT IN QUALIFYING EMPLOYER SECURITIES.

         All or some portion of the Participant's Account may be invested in
Qualifying Employer Securities. Once an investment in the Qualifying Employer
Securities Fund is made available to Participants, it shall continue to be
available unless the Plan is amended to disallow such available investment. In
the absence of an election to invest in Qualifying Employer Securities,
Participants shall be deemed to have elected to have their Accounts invested
wholly in other investment options of the Investment Fund. Once an election is
made, it shall be considered to continue until a new election is made.

         For purposes of determining the annual valuation of the Plan, and for
reporting to Participants and regulatory authorities, the assets of the Plan
shall be valued at least annually on the Valuation Date which corresponds to the
last day of the Plan Year. The fair market value of Qualifying Employer
Securities shall be determined on such Valuation Date. The prices of Qualifying
Employer Securities as of the date of the transaction shall apply for purposes
of valuing transactions of the Plan, including purchases of Qualifying Employer
Securities. In the case of Qualifying Employer Securities for which there is a
generally recognized market, the price shall be the price prevailing on a
national securities exchange which is registered under section 6 of the
Securities Exchange Act of 1934, or, if the Qualifying Employer Securities are
not traded on such a national securities exchange, the price shall be not less
favorable to the Plan than the offering price for the Qualifying Employer
Securities as established by the current bid and asked prices quoted by persons
independent of the issuer and independent of any party in interest. If the
Qualifying Employer Securities do not trade on the relevant date, or if the
market is very thin on such date, then the Plan Administrator may use for the
valuation the next preceding trading day on which the trading prices are
representative of the fair market value of such securities in the opinion of the
Plan Administrator.

                                       49
<PAGE>   51

         In the case of Qualifying Employer Securities for which, in the opinion
of the Plan Administrator, there is no generally recognized market at the time
of the transaction, the price shall be the fair market value of the Qualifying
Employer Securities as determined in good faith by the Plan Administrator and in
accordance with regulations, if any, promulgated by the Secretary of Labor. The
value of a Participant's Account held in the Qualifying Employer Securities Fund
may be expressed in units.

         If the Qualifying Employer Securities are not publicly traded, or if,
in the opinion of the Plan Administrator, an extremely thin market exists for
such securities so that a reasonable valuation may not be obtained from the
marketplace, then such securities must be valued at least annually by an
independent appraiser who is not associated with the Employer, the Plan
Administrator, the Trustee, or any person related to any fiduciary under the
Plan, or any party (other than the Plan) participating in the transaction. The
independent appraiser may be associated with a person who is merely a contract
administrator with respect to the Plan, but who exercises no discretionary
authority and is not a plan fiduciary, if such contract administrator is not
otherwise disqualified under this provision.

         Cash dividends payable on the Qualifying Employer Securities shall be
reinvested in additional shares of such securities. In the event of any cash or
stock dividend or any stock split, such dividend or split shall be credited to
the Accounts based on the number of shares of Qualifying Employer Securities
credited to each Account as of the record date of such dividend or split.

         With respect to any cash dividend or any stock dividend on Qualifying
Employer Securities, the Participant shall be entitled to a trailer distribution
of such dividend if distribution of his Account occurs between the record date
and the payable date of such dividend.

         The Plan Administrator may direct the Trustee to sell, resell, or
otherwise dispose of Qualifying Employer Securities to any person, including the
Employer, provided that any such sales to any disqualified person or
party-in-interest, including the Employer, will be made at not less than the
fair market value and no commission will be charged. Any such sale shall be made
in conformance with ERISA Section 408(e).

         The Employer is responsible for compliance with any applicable Federal
or state securities law with respect to all aspects of the Plan. If the
Qualifying Employer Securities or the interests in this Plan are required to be
registered in order to permit investment in the Qualifying Employer Securities
Fund as provided in this section, then any such investment will not be effective
until the later of the effective date of this section of the Plan or the date
such registration or qualification is effective. The Employer, at its own
expense, will take or cause to be taken any and all such actions as may be
necessary or appropriate to effect such registration or qualification. Further,
if the Trustee is directed to dispose of any Qualifying Employer Securities held
under the Plan under circumstances which require registration or qualification
of the securities under applicable Federal or state securities laws, then the

                                       50
<PAGE>   52

Employer will, at its own expense, take or cause to be taken any and all such
action as may be necessary or appropriate to effect such registration or
qualification. The Employer is responsible for all compliance requirements under
Section 16 of the Securities Act.

                                       51
<PAGE>   53

                                    ARTICLE V

                                    BENEFITS

SECTION 5.01--RETIREMENT BENEFITS.

         On a Participant's Retirement Date, his Vested Account shall be
distributed to him according to the distribution of benefits provisions of
Article VI and the provisions of the SMALL AMOUNTS SECTION of Article IX.

SECTION 5.02--DEATH BENEFITS.

         If a Participant dies before his Annuity Starting Date, his Vested
Account shall be distributed according to the distribution of benefits
provisions of Article VI and the provisions of the SMALL AMOUNTS SECTION of
Article IX.

SECTION 5.03--VESTED BENEFITS.

         A Participant may receive a distribution of his Vested Account at any
time after he ceases to be an Employee, provided he has not again become an
Employee. If such amount is not payable under the provisions of the SMALL
AMOUNTS SECTION of Article IX, it will be distributed only if the Participant so
elects. The Participant's election shall be subject to the requirements in the
ELECTION PROCEDURES SECTION of Article VI for a qualified election of a
retirement benefit.

         If a Participant does not receive an earlier distribution according to
the provisions of this section or the SMALL AMOUNTS SECTION of Article IX, upon
his Retirement Date or death, his Vested Account shall be applied according to
the provisions of the RETIREMENT BENEFITS SECTION or the DEATH BENEFITS SECTION
of Article V.

         The Nonvested Account of a Participant who has ceased to be an Employee
shall remain a part of his Account until it becomes a Forfeiture; provided,
however, if the Participant again becomes an Employee so that his Vesting
Percentage can increase, the Nonvested Account may become a part of his Vested
Account.

SECTION 5.04--WHEN BENEFITS START.

         Benefits under the Plan begin when a Participant retires, dies or
ceases to be an Employee, whichever applies, as provided in the preceding
sections of this article. Benefits which begin before Normal Retirement Date for
a Participant who became Totally and Permanently Disabled when he was an
Employee shall be deemed to begin because he is Totally and Permanently
Disabled. The start of benefits is subject to the qualified election procedures
of Article VI.

                                       52
<PAGE>   54

         Unless otherwise elected, benefits shall begin before the sixtieth day
following the close of the Plan Year in which the latest date below occurs:

         (a)   The date the Participant attains age 65 (Normal Retirement Age,
               if earlier).

         (b)   The tenth anniversary of the Participant's Entry Date.

         (c)   The date the Participant ceases to be an Employee.

         Notwithstanding the foregoing, the failure of a Participant and spouse
to consent to a distribution while a benefit is immediately distributable,
within the meaning of the ELECTION PROCEDURES SECTION of Article VI, shall be
deemed to be an election to defer commencement of payment of any benefit
sufficient to satisfy this section.

         The Participant may elect to have his benefits begin after the latest
date for beginning benefits described above, subject to the provisions of this
section. The Participant shall make the election in writing and deliver the
signed statement of election to the Plan Administrator before Normal Retirement
Date or the date he ceases to be an Employee, if later. The election must
describe the form of distribution and the date the benefits will begin. The
Participant shall not elect a date for beginning benefits or a form of
distribution that would result in a benefit payable when he dies which would be
more than incidental within the meaning of governmental regulations.

         Benefits shall begin by the Participant's Required Beginning Date, as
defined in the OPTIONAL FORMS OF DISTRIBUTION AND DISTRIBUTION REQUIREMENTS
SECTION of Article VI.

         Contributions which are used to compute the Actual Deferral Percentage,
as defined in the EXCESS AMOUNTS SECTION of Article III, may be distributed upon
disposition by the Employer of substantially all of the assets (within the
meaning of Code Section 409(d)(2)) used by the Employer in a trade or business
or disposition by the Employer of the Employer's interest in a subsidiary
(within the meaning of Code Section 409(d)(3)) if the transferee corporation is
not a Controlled Group member, the Employee continues employment with the
transferee corporation and the transferor corporation continues to maintain the
Plan. Such distributions made after March 31, 1988, must be made in a single
sum.

                                       53
<PAGE>   55

SECTION 5.05--WITHDRAWAL PRIVILEGES.

         A Participant may withdraw all or any portion of his Vested Account
which results from the following Contributions

         Elective Deferral Contributions
         Matching Contributions
         Discretionary Contributions
         Rollover Contributions

in the event of hardship due to an immediate and heavy financial need.
Withdrawals from the Participant's Account resulting from Elective Deferral
Contributions shall be limited to the amount of the Participant's Elective
Deferral Contributions plus income allocable thereto credited to his Account as
of December 31, 1988. Immediate and heavy financial need shall be limited to:
(i) expenses incurred or necessary for medical care, described in Code Section
213(d), of the Participant, the Participant's spouse, or any dependents of the
Participant (as defined in Code Section 152); (ii) purchase (excluding mortgage
payments) of a principal residence for the Participant; (iii) payment of tuition
and related educational fees and the payment of room and board expenses for the
next 12 months of post-secondary education for the Participant, his spouse,
children or dependents; (iv) the need to prevent the eviction of the Participant
from his principal residence or foreclosure on the mortgage of the Participant's
principal residence; or (v) any other distribution which is deemed by the
Commissioner of Internal Revenue to be made on account of immediate and heavy
financial need as provided in Treasury regulations. The Participant's request
for a withdrawal shall include his written statement that an immediate and heavy
financial need exists and explain its nature.

         No withdrawal shall be allowed which is not necessary to satisfy such
immediate and heavy financial need. Such withdrawal shall be deemed necessary
only if all of the following requirements are met: (i) the distribution is not
in excess of the amount of the immediate and heavy financial need of the
Participant (including amounts necessary to pay any Federal, state or local
income taxes or penalties reasonably anticipated to result from the
distribution); (ii) the Participant has obtained all distributions, other than
hardship distributions, and all nontaxable loans currently available under all
plans maintained by the Employer; (iii) the Plan, and all other plans maintained
by the Employer, provide that the Participant's elective contributions and
employee contributions will be suspended, for at least 12 months after receipt
of the hardship distribution; and (iv) the Plan, and all other plans maintained
by the Employer, provide that the Participant may not make elective
contributions for the Participant's taxable year immediately following the
taxable year of the hardship distribution in excess of the applicable limit
under Code Section 402(g) for such next taxable year less the amount of such
Participant's elective contributions for the taxable year of the hardship
distribution. The Plan will suspend elective contributions and employee
contributions for 12 months and limit elective deferrals as provided in the
preceding sentence. A Participant shall not cease to be an Eligible Participant,
as defined in the EXCESS AMOUNTS SECTION of Article III, merely because his
elective contributions or employee contributions are suspended.

         The portion of the Participant's Account held in the Qualifying
Employer Securities Fund may not be redeemed for purposes of a withdrawal.

         A request for withdrawal shall be in writing on a form furnished for
that purpose and delivered to the Plan Administrator before the withdrawal is to
occur. The Participant's request

                                       54
<PAGE>   56

shall be subject to the requirements in the ELECTION PROCEDURES SECTION of
Article VI for a qualified election of a retirement benefit payable in a form
other than a Qualified Joint and Survivor Form.

         A forfeiture shall not occur solely as a result of a withdrawal.

SECTION 5.06--LOANS TO PARTICIPANTS.

         Loans shall be made available to all Participants on a reasonably
equivalent basis. For purposes of this section, Participant means any
Participant or Beneficiary who is a party-in-interest, within the meaning of
Section 3(14) of the Employee Retirement Income Security Act of 1974 (ERISA).
Loans shall not be made to highly compensated employees, as defined in Code
Section 414(q), in an amount greater than the amount made available to other
Participants.

         No loans will be made to any shareholder-employee or owner-employee.
For purposes of this requirement, a shareholder-employee means an employee or
officer of an electing small business (Subchapter S) corporation who owns (or is
considered as owning within the meaning of Code Section 318(a)(1)), on any day
during the taxable year of such corporation, more than 5% of the outstanding
stock of the corporation.

         A loan to a Participant shall be a Participant-directed investment of
his Account. The portion of the Participant's Account held in the Qualifying
Employer Securities Fund may not be redeemed for purposes of a loan. No Account
other than the borrowing Participant's Account shall share in the interest paid
on the loan or bear any expense or loss incurred because of the loan.

         The number of outstanding loans shall be limited to one. No more than
two loans will be approved for any Participant in any 12-month period. The
minimum amount of any loan shall be $1,000.

         Loans must be adequately secured and bear a reasonable rate of
interest.

         The amount of the loan shall not exceed the maximum amount that may be
treated as a loan under Code Section 72(p) (rather than a distribution) to the
Participant and shall be equal to the lesser of (a) or (b) below:

         (a)      $50,000 reduced by the highest outstanding loan balance of
                  loans during the one-year period ending on the day before the
                  new loan is made.

         (b)      The greater of (1) or (2), reduced by (3) below:

                  (1)      One-half of the Participant's Vested Account.

                                       55
<PAGE>   57

                  (2)      $10,000.

                  (3)      Any outstanding loan balance on the date the new loan
                           is made.

         For purposes of this maximum, a Participant's Vested Account does not
include any accumulated deductible employee contributions, as defined in Code
Section 72(o)(5)(B), and all qualified employer plans, as defined in Code
Section 72(p)(4), of the Employer and any Controlled Group member shall be
treated as one plan.

         The foregoing notwithstanding, the amount of such loan shall not exceed
50% of the amount of the Participant's Vested Account. For purposes of this
maximum, a Participant's Vested Account does not include any accumulated
deductible employee contributions, as defined in Code Section 72(o)(5)(B). No
collateral other than a portion of the Participant's Vested Account (as limited
above) shall be accepted. The Loan Administrator shall determine if the
collateral is adequate for the amount of the loan requested.

         A Participant must obtain the consent of the Participant's spouse, if
any, to the use of the Vested Account as security for the loan. Spousal consent
shall be obtained no earlier than the beginning of the 90-day period that ends
on the date on which the loan to be so secured is made. The consent must be in
writing, must acknowledge the effect of the loan, and must be witnessed by a
plan representative or a notary public. Such consent shall thereafter be binding
with respect to the consenting spouse or any subsequent spouse with respect to
that loan. A new consent shall be required if the Vested Account is used for
collateral upon renegotiation, extension, renewal, or other revision of the
loan.

         If a valid spousal consent has been obtained in accordance with the
above, then, notwithstanding any other provision of this Plan, the portion of
the Participant's Vested Account used as a security interest held by the Plan by
reason of a loan outstanding to the Participant shall be taken into account for
purposes of determining the amount of the Vested Account payable at the time of
death or distribution, but only if the reduction is used as repayment of the
loan. If less than 100% of the Participant's Vested Account (determined without
regard to the preceding sentence) is payable to the surviving spouse, then the
Vested Account shall be adjusted by first reducing the Vested Account by the
amount of the security used as repayment of the loan, and then determining the
benefit payable to the surviving spouse.

         Each loan shall bear a reasonable fixed rate of interest to be
determined by the Loan Administrator. In determining the interest rate, the Loan
Administrator shall take into consideration fixed interest rates currently being
charged by commercial lenders for loans of comparable risk on similar terms and
for similar durations, so that the interest will provide for a return
commensurate with rates currently charged by commercial lenders for loans made
under similar circumstances. The Loan Administrator shall not discriminate among
Participants in the matter of interest rates; but loans granted at different
times may bear different interest rates in accordance with the current
appropriate standards.

                                       56
<PAGE>   58

         The loan shall by its terms require that repayment (principal and
interest) be amortized in level payments, not less frequently than quarterly,
over a period not extending beyond five years from the date of the loan. The
period of repayment for any loan shall be arrived at by mutual agreement between
the Loan Administrator and the Participant.

         The Participant shall make a written application for a loan from the
Plan on forms provided by the Loan Administrator. The application must specify
the amount and duration requested. No loan will be approved unless the
Participant is creditworthy. The Participant must grant authority to the Loan
Administrator to investigate the Participant's creditworthiness so that the loan
application may be properly considered.

         Information contained in the application for the loan concerning the
income, liabilities, and assets of the Participant will be evaluated to
determine whether there is a reasonable expectation that the Participant will be
able to satisfy payments on the loan as due. Additionally, the Loan
Administrator will pursue any appropriate further investigations concerning the
creditworthiness and/or credit history of the Participant to determine whether a
loan should be approved.

         Each loan shall be fully documented in the form of a promissory note
signed by the Participant for the face amount of the loan, together with
interest determined as specified above.

         There will be an assignment of collateral to the Plan executed at the
time the loan is made.

         In those cases where repayment through payroll deduction by the
Employer is available, installments are so payable, and a payroll deduction
agreement will be executed by the Participant at the time of making the loan.

         Where payroll deduction is not available, payments are to be timely
made.

         Any payment that is not by payroll deduction shall be made payable to
the Employer or Trustee, as specified in the promissory note, and delivered to
the Loan Administrator, including prepayments, service fees and penalties; if
any, and other amounts due under the note.

         The promissory note may provide for reasonable late payment penalties
and/or service fees. Any penalties or service fees shall be applied to all
Participants in a nondiscriminatory manner. If the promissory note so provides,
such amounts may be assessed and collected from the Account of the Participant
as part of the loan balance.

         Each loan may be paid prior to maturity, in part or in full, without
penalty or service fee, except as may be set out in the promissory note.

                                       57
<PAGE>   59

         If any amount remains unpaid for more than 31 days after due, a default
is deemed to occur.

         Upon default, the Plan has the right to pursue any remedy available by
law to satisfy the amount due, along with accrued interest, including the right
to enforce its claim against the security pledged and execute upon the
collateral as allowed by law.

         If any payment of principal or interest or any other amount due under
the promissory note, or any portion thereof, is not made for a period of 90 days
after due, the entire principal balance whether or not otherwise then due, shall
become immediately due and payable without demand or notice, and subject to
collection or satisfaction by any lawful means, including specifically but not
limited to the right to enforce the claim against the security pledged and to
execute upon the collateral as allowed by law.

         In the event of default, foreclosure on the note and attachment of
security or use of amounts pledged to satisfy the amount then due, will not
occur until a distributable event occurs in accordance with the Plan, and will
not occur to an extent greater than the amount then available upon any
distributable event which has occurred under the Plan.

         All reasonable costs and expenses, including but not limited to
attorney's fees, incurred by the Plan in connection with any default or in any
proceeding to enforce any provision of a promissory note or instrument by which
a promissory note for a Participant loan is secured, shall be assessed and
collected from the Account of the Participant as part of the loan balance.

         If payroll deduction is being utilized, in the event that a
Participant's available payroll deduction amounts in any given month are
insufficient to satisfy the total amount due, there will be an increase in the
amount taken subsequently, sufficient to make up the amount that is then due. If
the subsequent deduction is also insufficient to satisfy the amount due within
31 days, a default is deemed to occur as above. If any amount remains past due
more than 90 days, the entire principal amount, whether or not otherwise then
due, along with interest then accrued and any other amount then due under the
promissory note, shall become due and payable, as above.

         If the Participant ceases to be a party-in-interest (as defined in this
section) the balance of the outstanding loan becomes due and payable, and the
Participant's Vested Account will be used as available for distribution(s) to
pay the outstanding loan. The Participant's Vested Account will not be used to
pay any amount due under the outstanding loan before the date which is 31 days
after the date he ceased to be an Employee, and the Participant may elect to
repay the outstanding loan with interest on the day of repayment. If no
distributable event has occurred under the Plan at the time that the
Participant's Vested Account would otherwise be used under this provision to pay
any amount due under the outstanding loan, this will not occur until the time,
or in excess of the extent to which, a distributable event occurs under the
Plan.

                                       58
<PAGE>   60

                                   ARTICLE VI

                            DISTRIBUTION OF BENEFITS

SECTION 6.01--AUTOMATIC FORMS OF DISTRIBUTION.

         Unless a qualified election of an optional form of benefit has been
made within the election period (see the ELECTION PROCEDURES SECTION of Article
VI), the automatic form of benefit payable to or on behalf of a Participant is
determined as follows:

         (a)      The automatic form of retirement benefit for a Participant who
                  does not die before his Annuity Starting Date shall be the
                  Qualified Joint and Survivor Form.

         (b)      The automatic form of death benefit for a Participant who dies
                  before his Annuity Starting Date shall be:

                  (1)      A Qualified Preretirement Survivor Annuity for a
                           Participant who has a spouse to whom he has been
                           continuously married throughout the one-year period
                           ending on the date of his death. The spouse may elect
                           to start receiving the death benefit on any first day
                           of the month on or after the Participant dies and
                           before the date the Participant would have been age
                           70 1/2. If the spouse dies before benefits start, the
                           Participant's Vested Account, determined as of the
                           date of the spouse's death, shall be paid to the
                           spouse's Beneficiary.

                  (2)      A single-sum payment to the Participant's Beneficiary
                           for a Participant who does not have a spouse who is
                           entitled to a Qualified Preretirement Survivor
                           Annuity.

                  Before a death benefit will be paid on account of the death of
                  a Participant who does not have a spouse who is entitled to a
                  Qualified Preretirement Survivor Annuity, it must be
                  established to the satisfaction of a plan representative that
                  the Participant does not have such a spouse.

SECTION 6.02--OPTIONAL FORMS OF DISTRIBUTION AND DISTRIBUTION REQUIREMENTS.

         (a)      For purposes of this section, the following terms are defined:

                  Applicable Life Expectancy means Life Expectancy (or Joint and
                  Last Survivor Expectancy) calculated using the attained age of
                  the Participant (or Designated Beneficiary) as of the
                  Participant's (or Designated Beneficiary's) birthday in the
                  applicable calendar year reduced by one for each calendar year
                  which has

                                       59
<PAGE>   61

                  elapsed since the date Life Expectancy was first calculated.
                  If Life Expectancy is being recalculated, the Applicable Life
                  Expectancy shall be the Life Expectancy so recalculated. The
                  applicable calendar year shall be the first Distribution
                  Calendar Year, and if Life Expectancy is being recalculated
                  such succeeding calendar year.

                  Designated Beneficiary means the individual who is designated
                  as the beneficiary under the Plan in accordance with Code
                  Section 401(a)(9) and the regulations thereunder.

                  Distribution Calendar Year means a calendar year for which a
                  minimum distribution is required. For distributions beginning
                  before the Participant's death, the first Distribution
                  Calendar Year is the calendar year immediately preceding the
                  calendar year which contains the Participant's Required
                  Beginning Date. For distributions beginning after the
                  Participant's death, the first Distribution Calendar Year is
                  the calendar year in which distributions are required to begin
                  pursuant to (e) below.

                  Joint and Last Survivor Expectancy means joint and last
                  survivor expectancy computed by use of the expected return
                  multiples in Table VI of section 1.72-9 of the Income Tax
                  Regulations.

                  Unless otherwise elected by the Participant (or spouse, in the
                  case of distributions described in (e)(2)(ii) below) by the
                  time distributions are required to begin, life expectancies
                  shall be recalculated annually. Such election shall be
                  irrevocable as to the Participant (or spouse) and shall apply
                  to all subsequent years. The life expectancy of a nonspouse
                  Beneficiary may not be recalculated.

                  Life Expectancy means life expectancy computed by use of the
                  expected return multiples in Table V of section 1.72-9 of the
                  Income Tax Regulations.

                  Unless otherwise elected by the Participant (or spouse, in the
                  case of distributions described in (e)(2)(ii) below) by the
                  time distributions are required to begin, life expectancies
                  shall be recalculated annually. Such election shall be
                  irrevocable as to the Participant (or spouse) and shall apply
                  to all subsequent years. The life expectancy of a nonspouse
                  Beneficiary may not be recalculated.

                  Participant's Benefit means

                  (1)      The Account balance as of the last valuation date in
                           the calendar year immediately preceding the
                           Distribution Calendar Year (valuation calendar year)
                           increased by the amount of any contributions or
                           forfeitures allocated to the Account balance as of
                           the dates in the valuation calendar year after

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<PAGE>   62

                           the valuation date and decreased by distributions
                           made in the valuation calendar year after the
                           valuation date.

                  (2)      For purposes of (1) above, if any portion of the
                           minimum distribution for the first Distribution
                           Calendar Year is made in the second Distribution
                           Calendar Year on or before the Required Beginning
                           Date, the amount of the minimum distribution made in
                           the second Distribution Calendar Year shall be
                           treated as if it had been made in the immediately
                           preceding Distribution Calendar Year.

                  Required Beginning Date means, for a Participant, the first
                  day of April of the calendar year following the calendar year
                  in which the Participant attains age 70 1/2, unless otherwise
                  provided in (1), (2) or (3) below:

                  (1)      The Required Beginning Date for a Participant who
                           attains age 70 1/2 before January 1, 1988, and who is
                           not a 5-percent owner is the first day of April of
                           the calendar year following the calendar year in
                           which the later of retirement or attainment of age
                           70 1/2 occurs.

                  (2)      The Required Beginning Date for a Participant who
                           attains age 70 1/2 before January 1, 1988, and who is
                           a 5-percent owner is the first day of April of the
                           calendar year following the later of

                           (i)      the calendar year in which the Participant
                                    attains age 70 1/2, or

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

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

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

                  Once distributions have begun to a 5-percent owner under this
                  section, they must continue to be distributed, even if the
                  Participant ceases to be a 5-percent owner in a subsequent
                  year.

                                       61
<PAGE>   63

         (b)      The optional forms of retirement benefit shall be the
                  following: a straight life annuity; single life annuities with
                  certain periods of five, ten or fifteen years; a single life
                  annuity with installment refund; survivorship life annuities
                  with installment refund and survivorship percentages of 50,
                  66 2/3 or 100; fixed period annuities for any period of whole
                  months which is not less than 60 and does not exceed the Life
                  Expectancy of the Participant and the named Beneficiary as
                  provided in (d) below where the Life Expectancy is not
                  recalculated; and a series of installments chosen by the
                  Participant with a minimum payment each year beginning with
                  the year the Participant turns age 70 1/2. The payment for the
                  first year in which a minimum payment is required will be made
                  by April 1 of the following calendar year. The payment for the
                  second year and each successive year will be made by December
                  31 of that year. The minimum payment will be based on a period
                  equal to the Joint and Last Survivor Expectancy of the
                  Participant and the Participant's spouse, if any, as provided
                  in (d) below where the Joint and Last Survivor Expectancy is
                  recalculated. The balance of the Participant's Vested Account,
                  if any, will be payable on the Participant's death to his
                  Beneficiary in a single sum. The Participant may also elect to
                  receive his Vested Account in a single-sum payment.
                  Furthermore, to the extent that a Participant's Account is
                  invested in Qualifying Employer Securities immediately before
                  the Participant elects to receive a single-sum payment, the
                  Participant may elect to receive a distribution in the form of
                  whole (but not fractional) shares of Qualifying Employer
                  Securities.

                  Election of an optional form is subject to the qualified
                  election provisions of Article VI.

                  Any annuity contract distributed shall be nontransferable. The
                  terms of any annuity contract purchased and distributed by the
                  Plan to a Participant or spouse shall comply with the
                  requirements of this Plan.

         (c)      The optional forms of death benefit are a single-sum payment
                  and any annuity that is an optional form of retirement
                  benefit. However, a series of installments shall not be
                  available if the Beneficiary is not the spouse of the deceased
                  Participant. Furthermore, to the extent that a Participant's
                  Account is invested in Qualifying Employer Securities
                  immediately before the Beneficiary elects to receive a
                  single-sum payment, the Beneficiary may elect to receive a
                  distribution in the form of whole (but not fractional) shares
                  of Qualifying Employer Securities.

         (d)      Subject to the AUTOMATIC FORMS OF DISTRIBUTION SECTION of
                  Article VI, joint and survivor annuity requirements, the
                  requirements of this section shall apply to any distribution
                  of a Participant's interest and will take precedence over any
                  inconsistent provisions of this Plan. Unless otherwise
                  specified, the

                                       62
<PAGE>   64

                  provisions of this section apply to calendar years beginning
                  after December 31, 1984.

                  All distributions required under this section shall be
                  determined and made in accordance with the proposed
                  regulations under Code Section 401(a)(9), including the
                  minimum distribution incidental benefit requirement of section
                  1.401(a)(9)-2 of the proposed regulations.

                  The entire interest of a Participant must be distributed or
                  begin to be distributed no later than the Participant's
                  Required Beginning Date.

                  As of the first Distribution Calendar Year, distributions, if
                  not made in a single sum, may only be made over one of the
                  following periods (or combination thereof):

                  (1)      the life of the Participant,

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

                  (3)      a period certain not extending beyond the Life
                           Expectancy of the Participant, or

                  (4)      a period certain not extending beyond the Joint and
                           Last Survivor Expectancy of the Participant and a
                           Designated Beneficiary.

                  If the Participant's interest is to be distributed in other
                  than a single sum, the following minimum distribution rules
                  shall apply on or after the Required Beginning Date:

                  (5)      Individual account:

                           (i)   If a Participant's Benefit is to be distributed
                                 over

                                 (a)  a period not extending beyond the Life
                                      Expectancy of the Participant or the Joint
                                      Life and Last Survivor Expectancy of the
                                      Participant and the Participant's
                                      Designated Beneficiary or

                                 (b)  a period not extending beyond the Life
                                      Expectancy of the Designated Beneficiary,

                                 the amount required to be distributed for each
                                 calendar year beginning with the distributions
                                 for the first Distribution Calendar

                                       63
<PAGE>   65

                                    Year, must be at least equal to the quotient
                                    obtained by dividing the Participant's
                                    Benefit by the Applicable Life Expectancy.

                           (ii)     For calendar years beginning before January
                                    1, 1989, if the Participant's spouse is not
                                    the Designated Beneficiary, the method of
                                    distribution selected must assure that at
                                    least 50% of the present value of the amount
                                    available for distribution is paid within
                                    the Life Expectancy of the Participant.

                           (iii)    For calendar years beginning after December
                                    31, 1988, the amount to be distributed each
                                    year, beginning with distributions for the
                                    first Distribution Calendar Year shall not
                                    be less than the quotient obtained by
                                    dividing the Participant's Benefit by the
                                    lesser of

                                    (a)      the Applicable Life Expectancy or

                                    (b)      if the Participant's spouse is not
                                             the Designated Beneficiary, the
                                             applicable divisor determined from
                                             the table set forth in Q&A-4 of
                                             section 1.401(a)(9)-2 of the
                                             proposed regulations.

                                    Distributions after the death of the
                                    Participant shall be distributed using the
                                    Applicable Life Expectancy in (5)(i) above
                                    as the relevant divisor without regard to
                                    Proposed Regulations section 1.401(a)(9)-2.

                           (iv)     The minimum distribution required for the
                                    Participant's first Distribution Calendar
                                    Year must be made on or before the
                                    Participant's Required Beginning Date. The
                                    minimum distribution for the Distribution
                                    Calendar Year for other calendar years,
                                    including the minimum distribution for the
                                    Distribution Calendar Year in which the
                                    Participant's Required Beginning Date
                                    occurs, must be made on or before December
                                    31 of that Distribution Calendar Year.

                  (6)      Other forms:

                           (i)      If the Participant's Benefit is distributed
                                    in the form of an annuity purchased from an
                                    insurance company, distributions thereunder
                                    shall be made in accordance with the
                                    requirements of Code Section 401(a)(9) and
                                    the proposed regulations thereunder.

                                       64
<PAGE>   66

         (e)   Death distribution provisions:

                  (1)      Distribution beginning before death. If the
                           Participant dies after distribution of his interest
                           has begun, the remaining portion of such interest
                           will continue to be distributed at least as rapidly
                           as under the method of distribution being used prior
                           to the Participant's death.

                  (2)      Distribution beginning after death. If the
                           Participant dies before distribution of his interest
                           begins, distribution of the Participant's entire
                           interest shall be completed by December 31 of the
                           calendar year containing the fifth anniversary of the
                           Participant's death except to the extent that an
                           election is made to receive distributions in
                           accordance with (i) or (ii) below:

                           (i)      if any portion of the Participant's interest
                                    is payable to a Designated Beneficiary,
                                    distributions may be made over the life or
                                    over a period certain not greater than the
                                    Life Expectancy of the Designated
                                    Beneficiary commencing on or before December
                                    31 of the calendar year immediately
                                    following the calendar year in which the
                                    Participant died;

                           (ii)     if the Designated Beneficiary is the
                                    Participant's surviving spouse, the date
                                    distributions are required to begin in
                                    accordance with (i) above shall not be
                                    earlier than the later of

                                    (a)      December 31 of the calendar year
                                             immediately following the calendar
                                             year in which the Participant died
                                             and

                                    (b)      December 31 of the calendar year in
                                             which the Participant would have
                                             attained age 70 1/2.

                  If the Participant has not made an election pursuant to this
                  (e)(2) by the time of his death, the Participant's Designated
                  Beneficiary must elect the method of distribution no later
                  than the earlier of

                           (iii)    December 31 of the calendar year in which
                                    distributions would be required to begin
                                    under this subparagraph, or

                           (iv)     December 31 of the calendar year which
                                    contains the fifth anniversary of the date
                                    of death of the Participant.

                  If the Participant has no Designated Beneficiary, or if the
                  Designated Beneficiary does not elect a method of
                  distribution, distribution of the Participant's entire
                  interest must be completed by December 31 of the calendar year
                  containing the fifth anniversary of the Participant's death.

                                       65
<PAGE>   67

                  (3)      For purposes of (e)(2) above, if the surviving spouse
                           dies after the Participant, but before payments to
                           such spouse begin, the provisions of (e)(2) above,
                           with the exception of (e)(2)(ii) therein, shall be
                           applied as if the surviving spouse were the
                           Participant.

                  (4)      For purposes of this (e), any amount paid to a child
                           of the Participant will be treated as if it had been
                           paid to the surviving spouse if the amount becomes
                           payable to the surviving spouse when the child
                           reaches the age of majority.

                  (5)      For purposes of this (e), distribution of a
                           Participant's interest is considered to begin on the
                           Participant's Required Beginning Date (or if (e)(3)
                           above is applicable, the date distribution is
                           required to begin to the surviving spouse pursuant to
                           (e)(2) above). If distribution in the form of an
                           annuity irrevocably commences to the Participant
                           before the Required Beginning Date, the date
                           distribution is considered to begin is the date
                           distribution actually commences.

SECTION 6.03--ELECTION PROCEDURES.

         The Participant, Beneficiary, or spouse shall make any election under
this section in writing. The Plan Administrator may require such individual to
complete and sign any necessary documents as to the provisions to be made. Any
election permitted under (a) and (b) below shall be subject to the qualified
election provisions of (c) below.

         (a)      Retirement Benefits. A Participant may elect his Beneficiary
                  or Contingent Annuitant and may elect to have retirement
                  benefits distributed under any of the optional forms of
                  retirement benefit described in the OPTIONAL FORMS OF
                  DISTRIBUTION AND DISTRIBUTION REQUIREMENTS SECTION of Article
                  VI.

         (b)      Death Benefits. A Participant may elect his Beneficiary and
                  may elect to have death benefits distributed under any of the
                  optional forms of death benefit described in the OPTIONAL
                  FORMS OF DISTRIBUTION AND DISTRIBUTION REQUIREMENTS SECTION of
                  Article VI.

                  If the Participant has not elected an optional form of
                  distribution for the death benefit payable to his Beneficiary,
                  the Beneficiary may, for his own benefit, elect the form of
                  distribution, in like manner as a Participant.

                  The Participant may waive the Qualified Preretirement Survivor
                  Annuity by naming someone other than his spouse as
                  Beneficiary.

                  In lieu of the Qualified Preretirement Survivor Annuity
                  described in the AUTOMATIC FORMS OF DISTRIBUTION SECTION of
                  Article VI, the spouse

                                       66
<PAGE>   68

                  may, for his own benefit, waive the Qualified Preretirement
                  Survivor Annuity by electing to have the benefit distributed
                  under any of the optional forms of death benefit described in
                  the OPTIONAL FORMS OF DISTRIBUTION AND DISTRIBUTION
                  REQUIREMENTS SECTION of Article VI.

         (c)      Qualified Election. The Participant, Beneficiary or spouse may
                  make an election at any time during the election period. The
                  Participant, Beneficiary, or spouse may revoke the election
                  made (or make a new election) at any time and any number of
                  times during the election period. An election is effective
                  only if it meets the consent requirements below.

                  The election period as to retirement benefits is the 90-day
                  period ending on the Annuity Starting Date. An election to
                  waive the Qualified Joint and Survivor Form may not be made
                  before the date he is provided with the notice of the ability
                  to waive the Qualified Joint and Survivor Form. If the
                  Participant elects the series of installments, he may elect on
                  any later date to have the balance of his Vested Account paid
                  under any of the optional forms of retirement benefit
                  available under the Plan. His election period for this
                  election is the 90-day period ending on the Annuity Starting
                  Date for the optional form of retirement benefit elected.

                  A Participant may make an election as to death benefits at any
                  time before he dies. The spouse's election period begins on
                  the date the Participant dies and ends on the date benefits
                  begin. The Beneficiary's election period begins on the date
                  the Participant dies and ends on the date benefits begin. An
                  election to waive the Qualified Preretirement Survivor Annuity
                  may not be made by the Participant before the date he is
                  provided with the notice of the ability to waive the Qualified
                  Preretirement Survivor Annuity. A Participant's election to
                  waive the Qualified Preretirement Survivor Annuity which is
                  made before the first day of the Plan Year in which he reaches
                  age 35 shall become invalid on such date. An election made by
                  a Participant after he ceases to be an Employee will not
                  become invalid on the first day of the Plan Year in which he
                  reaches age 35 with respect to death benefits from that part
                  of his Account resulting from Contributions made before he
                  ceased to be an Employee.

                  If the Participant's Vested Account has at any time exceeded
                  $5,000, any benefit which is (1) immediately distributable or
                  (2) payable in a form other than a Qualified Joint and
                  Survivor Form or a Qualified Preretirement Survivor Annuity
                  requires the consent of the Participant and the Participant's
                  spouse (or where either the Participant or the spouse has
                  died, the survivor). The consent of the Participant or spouse
                  to a benefit which is immediately distributable must not be
                  made before the date the Participant or spouse is provided
                  with the notice of the ability to defer the distribution. Such
                  consent shall be made in writing. The consent shall not be
                  made more than 90 days before the Annuity Starting Date.

                                       67
<PAGE>   69

                  Spousal consent is not required for a benefit which is
                  immediately distributable in a Qualified Joint and Survivor
                  Form. Furthermore, if spousal consent is not required because
                  the Participant is electing an optional form of retirement
                  benefit that is not a life annuity pursuant to (d) below, only
                  the Participant need consent to the distribution of a benefit
                  payable in a form that is not a life annuity and which is
                  immediately distributable. Neither the consent of the
                  Participant nor the Participant's spouse shall be required to
                  the extent that a distribution is required to satisfy Code
                  Section 401(a)(9) or Code Section 415. In addition, upon
                  termination of this Plan if the Plan does not offer an annuity
                  option (purchased from a commercial provider), the
                  Participant's Account balance may, without the Participant's
                  consent, be distributed to the Participant or transferred to
                  another defined contribution plan (other than an employee
                  stock ownership plan as defined in Code Section 4975(e)(7))
                  within the same Controlled Group. A benefit is immediately
                  distributable if any part of the benefit could be distributed
                  to the Participant (or surviving spouse) before the
                  Participant attains (or would have attained if not deceased)
                  the older of Normal Retirement Age or age 62. If the Qualified
                  Joint and Survivor Form is waived, the spouse has the right to
                  limit consent only to a specific Beneficiary or a specific
                  form of benefit. The spouse can relinquish one or both such
                  rights. Such consent shall be made in writing. The consent
                  shall not be made more than 90 days before the Annuity
                  Starting Date. If the Qualified Preretirement Survivor Annuity
                  is waived, the spouse has the right to limit consent only to a
                  specific Beneficiary. Such consent shall be in writing. The
                  spouse's consent shall be witnessed by a plan representative
                  or notary public. The spouse's consent must acknowledge the
                  effect of the election, including that the spouse had the
                  right to limit consent only to a specific Beneficiary or a
                  specific form of benefit, if applicable, and that the
                  relinquishment of one or both such rights was voluntary.
                  Unless the consent of the spouse expressly permits
                  designations by the Participant without a requirement of
                  further consent by the spouse, the spouse's consent must be
                  limited to the form of benefit, if applicable, and the
                  Beneficiary (including any Contingent Annuitant), class of
                  Beneficiaries, or contingent Beneficiary named in the
                  election. Spousal consent is not required, however, if the
                  Participant establishes to the satisfaction of the plan
                  representative that the consent of the spouse cannot be
                  obtained because there is no spouse or the spouse cannot be
                  located. A spouse's consent under this paragraph shall not be
                  valid with respect to any other spouse. A Participant may
                  revoke a prior election without the consent of the spouse. Any
                  new election will require a new spousal consent, unless the
                  consent of the spouse expressly permits such election by the
                  Participant without further consent by the spouse. A spouse's
                  consent may be revoked at any time within the Participant's
                  election period.

         (d)      Special Rule for Profit Sharing Plan. As provided in the
                  preceding provisions of the Plan, if a Participant has a
                  spouse to whom he has been continuously

                                       68
<PAGE>   70

                  married throughout the one-year period ending on the date of
                  his death, the Participant's Vested Account shall be paid to
                  such spouse. However, if there is no such spouse or if the
                  surviving spouse has already consented in a manner conforming
                  to the qualified election requirements in (c) above, the
                  Vested Account shall be payable to the Participant's
                  Beneficiary in the event of the Participant's death.

                  The Participant may waive the spousal death benefit described
                  above at any time provided that no such waiver shall be
                  effective unless it satisfies the conditions of (c) above
                  (other than the notification requirement referred to therein)
                  that would apply to the Participant's waiver of the Qualified
                  Preretirement Survivor Annuity.

                  Because this is a profit sharing plan which pays death
                  benefits as described above, this subsection (d) applies if
                  the following condition is met: with respect to the
                  Participant, this Plan is not a direct or indirect transferee
                  after December 31, 1984, of a defined benefit plan, money
                  purchase plan (including a target plan), stock bonus plan or
                  profit sharing plan which is subject to the survivor annuity
                  requirements of Code Section 401(a)(11) and Code Section 417.
                  If the above condition is met, spousal consent is not required
                  for electing a benefit payable in a form that is not a life
                  annuity. If the above condition is not met, the consent
                  requirements of this article shall be operative.

SECTION 6.04--NOTICE REQUIREMENTS.

         (a)      Optional forms of retirement benefit. The Plan Administrator
                  shall furnish to the Participant and the Participant's spouse
                  a written explanation of the optional forms of retirement
                  benefit in the OPTIONAL FORMS OF DISTRIBUTION AND DISTRIBUTION
                  REQUIREMENTS SECTION of Article VI, including the material
                  features and relative values of these options, in a manner
                  that would satisfy the notice requirements of Code Section
                  417(a)(3) and the right of the Participant and the
                  Participant's spouse to defer distribution until the benefit
                  is no longer immediately distributable. The Plan Administrator
                  shall furnish the written explanation by a method reasonably
                  calculated to reach the attention of the Participant and the
                  Participant's spouse no less than 30 days and no more than 90
                  days before the Annuity Starting Date.

         (b)      Qualified Joint and Survivor Form. The Plan Administrator
                  shall furnish to the Participant a written explanation of the
                  following: the terms and conditions of the Qualified Joint and
                  Survivor Form; the Participant's right to make, and the effect
                  of, an election to waive the Qualified Joint and Survivor
                  Form; the rights of the Participant's spouse; and the right to
                  revoke an election and the effect of such a revocation. The
                  Plan Administrator shall furnish the written explanation by a

                                       69
<PAGE>   71

                  method reasonably calculated to reach the attention of the
                  Participant no less than 30 days and no more than 90 days
                  before the Annuity Starting Date.

                  After the written explanation is given, a Participant or
                  spouse may make written request for additional information.
                  The written explanation must be personally delivered or mailed
                  (first class mail, postage prepaid) to the Participant or
                  spouse within 30 days from the date of the written request.
                  The Plan Administrator does not need to comply with more than
                  one such request by a Participant or spouse.

                  The Plan Administrator's explanation shall be written in
                  nontechnical language and will explain the terms and
                  conditions of the Qualified Joint and Survivor Form and the
                  financial effect upon the Participant's benefit (in terms of
                  dollars per benefit payment) of electing not to have benefits
                  distributed in accordance with the Qualified Joint and
                  Survivor Form.

         (c)      Qualified Preretirement Survivor Annuity. As required by the
                  Code and Federal regulation, the Plan Administrator shall
                  furnish to the Participant a written explanation of the
                  following: the terms and conditions of the Qualified
                  Preretirement Survivor Annuity; the Participant's right to
                  make, and the effect of, an election to waive the Qualified
                  Preretirement Survivor Annuity; the rights of the
                  Participant's spouse; and the right to revoke an election and
                  the effect of such a revocation. The Plan Administrator shall
                  furnish the written explanation by a method reasonably
                  calculated to reach the attention of the Participant within
                  the applicable period. The applicable period for a Participant
                  is whichever of the following periods ends last:

                  (1)      the period beginning one year before the date the
                           individual becomes a Participant and ending one year
                           after such date; or

                  (2)      the period beginning one year before the date the
                           Participant's spouse is first entitled to a Qualified
                           Preretirement Survivor Annuity and ending one year
                           after such date.

                  If such notice is given before the period beginning with the
                  first day of the Plan Year in which the Participant attains
                  age 32 and ending with the close of the Plan Year preceding
                  the Plan Year in which the Participant attains age 35, an
                  additional notice shall be given within such period. If a
                  Participant ceases to be an Employee before attaining age 35,
                  an additional notice shall be given within the period
                  beginning one year before the date he ceases to be an Employee
                  and ending one year after such date.

                  After the written explanation is given, a Participant or
                  spouse may make written request for additional information.
                  The written explanation must be personally

                                       70
<PAGE>   72

                  delivered or mailed (first class mail, postage prepaid) to the
                  Participant or spouse within 30 days from the date of the
                  written request. The Plan Administrator does not need to
                  comply with more than one such request by a Participant or
                  spouse.

                  The Plan Administrator's explanation shall be written in
                  nontechnical language and will explain the terms and
                  conditions of the Qualified Preretirement Survivor Annuity and
                  the financial effect upon the spouse's benefit (in terms of
                  dollars per benefit payment) of electing got to have benefits
                  distributed in accordance with the Qualified Preretirement
                  Survivor Annuity.

                                       71
<PAGE>   73

                                   ARTICLE VII

                               TERMINATION OF PLAN

         The Employee expects to continue the Plan indefinitely but, reserves
the right to terminate the Plan in whole or in part at any time upon giving
written notice to all parties concerned. Complete discontinuance of
Contributions under the Plan constitutes complete termination of Plan.

         The Account of each Participant shall be fully (100%) vested and
nonforfeitable as of the effective date of complete termination of Plan. The
Account of each Participant who is included in the group of Participants deemed
to be affected by the partial termination of the Plan shall be fully (100%)
vested and nonforfeitable as of the effective date of the partial Plan
termination. The Participant's Account shall continue to participate in the
earnings credited, expenses charged and any appreciation or depreciation of the
Investment Fund until the Vested Account is distributed. A distribution under
this article will be a retirement benefit and shall be distributed to the
Participant according to the provisions of Article VI.

         A Participant's Account which does not result from Contributions which
are used to compute the Actual Deferral Percentage, as defined in the EXCESS
AMOUNTS SECTION of Article III, may be distributed to the Participant after the
effective date of the complete or partial Plan termination. A Participant's
Account resulting from Contributions which are used to compute such percentage
may be distributed upon termination of the Plan without the establishment or
maintenance of another defined contribution plan, other than an employee stock
ownership plan (as defined in Code Section 4975(e) or Code Section 409) or a
simplified employee pension plan (as defined in Code Section 408(k)). Such a
distribution made after March 31, 1988, must be in a single sum.

         Upon complete termination of Plan, no more Employees shall become
Participants and no more Contributions shall be made.

         The assets of this Plan shall not be paid to the Employer at any time,
except that, after the satisfaction of all liabilities under the Plan, any
assets remaining may be paid to the Employer. The payment may not be made if it
would contravene any provision of law.

                                       72
<PAGE>   74

                                  ARTICLE VIII

                             ADMINISTRATION OF PLAN

SECTION 8.01--ADMINISTRATION.

         Subject to the provisions of this article, the Plan Administrator has
complete control of the administration of the Plan. The Plan Administrator has
all the powers necessary for it to properly carry out its administrative duties.
Not in limitation, but in amplification of the foregoing, the Plan Administrator
has the power to construe the Plan, including ambiguous provisions, and to
determine all questions that may arise under the Plan, including all questions
relating to the eligibility of Employees to participate in the Plan and the
amount of benefit to which any Participant, Beneficiary, spouse or Contingent
Annuitant may become entitled. The Plan Administrator's decisions upon all
matters within the scope of its authority shall be final.

         Unless otherwise set out in the Plan or Group Contract, the Plan
Administrator may delegate recordkeeping and other duties which are necessary
for the administration of the Plan to any person or firm which agrees to accept
such duties. The Plan Administrator shall be entitled to rely upon all tables,
valuations, certificates and reports furnished by the consultant or actuary
appointed by the Plan Administrator and upon all opinions given by any counsel
selected or approved by the Plan Administrator.

         The Plan Administrator shall receive all claims for benefits by
Participants, former Participants, Beneficiaries, spouses, and Contingent
Annuitants. The Plan Administrator shall determine all facts necessary to
establish the right of any Claimant to benefits and the amount of those benefits
under the provisions of the Plan. The Plan Administrator may establish rules and
procedures to be followed by Claimants in filing claims for benefits, in
furnishing and verifying proofs necessary to determine age, and in any other
matters required to administer the Plan.

SECTION 8.02--RECORDS.

         All acts and determinations of the Plan Administrator shall be duly
recorded. All these records, together with other documents necessary for the
administration of the Plan, shall be preserved in the Plan Administrator's
custody.

         Writing (handwriting, typing, printing), photostating, photographing,
microfilming, magnetic impulse, mechanical or electrical recording or other
forms of data compilation shall be acceptable means of keeping records.

                                       73
<PAGE>   75

SECTION 8.03--INFORMATION AVAILABLE.

         Any Participant in the Plan or any Beneficiary may examine copies of
the Plan description, latest annual report, any bargaining agreement, this Plan,
the Group Contract or any other instrument under which the Plan was established
or is operated. The Plan Administrator shall maintain all of the items listed in
this section in its office, or in such other place or places as it may designate
in order to comply with governmental regulations. These items may be examined
during reasonable business hours. Upon the written request of a Participant or
Beneficiary receiving benefits under the Plan, the Plan Administrator will
furnish him with a copy of any of these items. The Plan Administrator may make a
reasonable charge to the requesting person for the copy.

SECTION 8.04--CLAIM AND APPEAL PROCEDURES.

         A Claimant must submit any required forms and pertinent information
when making a claim for benefits under the Plan.

         If a claim for benefits under the Plan is denied, the Plan
Administrator shall provide adequate written notice to the Claimant whose claim
for benefits under the Plan has been denied. The notice must be furnished within
90 days of the date that the claim is received by the Plan Administrator. The
Claimant shall be notified in writing within this initial 90-day period if
special circumstances require an extension of time needed to process the claim
and the date by which the Plan Administrator's decision is expected to be
rendered. The written notice shall be furnished no later than 180 days after the
date the claim was received by the Plan Administrator.

         The Plan Administrator's notice to the Claimant shall specify the
reason for the denial; specify references to pertinent Plan provisions on which
denial is based; describe any additional material and information needed for the
Claimant to perfect his claim for benefits; explain why the material and
information is needed; inform the Claimant that any appeal he wishes to make
must be in writing to the Plan Administrator within 60 days after receipt of the
Plan Administrator's notice of denial of benefits and that failure to make the
written appeal within such 60-day period shall render the Plan Administrator's
determination of such denial final, binding and conclusive.

         If the Claimant appeals to the Plan Administrator, the Claimant, or his
authorized representative, may submit in writing whatever issues and comments
the Claimant, or his representative, feels are pertinent. The Claimant, or his
authorized representative may review pertinent Plan documents. The Plan
Administrator shall reexamine all facts related to the appeal and make a final
determination as to whether the denial of benefits is justified under the
circumstances. The Plan Administrator shall advise the Claimant of its decision
within 60 days of his written request for review, unless special circumstances
(such as a hearing) would make rendering a decision within the 60-day limit
unfeasible. The Claimant must be notified within

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<PAGE>   76

the 60-day limit if an extension is necessary. The Plan Administrator shall
render a decision on a claim for benefits no later than 120 days after the
request for review is received.

SECTION 8.05--UNCLAIMED VESTED ACCOUNT PROCEDURE.

         At the time the Participant's Vested Account is distributable to the
Participant, spouse or Beneficiary without his consent according to the
provisions of Article VI or Article IX, the Plan Administrator, by certified or
registered mail addressed to his last known address and in accordance with the
notice requirements of Article VI, will notify him of his entitlement to a
benefit. If the Participant, spouse or Beneficiary fails to claim the Vested
Account or make his whereabouts known in writing within six months from the date
of mailing the notice, the Plan Administrator may treat such unclaimed Vested
Account as a forfeiture and apply it according to the forfeiture provisions of
Article III. If Article III contains no forfeiture provisions, such amount will
be applied to reduce the earliest Employer Contributions due after the
forfeiture arises.

         If a Participant's Vested Account is forfeited according to the
provisions of the above paragraph and the Participant, his spouse or his
Beneficiary at any time make a claim for benefits, the forfeited Vested Account
shall be reinstated, unadjusted for any gains or losses occurring after the date
it was forfeited. The reinstated Vested Account shall then be distributed to the
Participant, spouse or Beneficiary according to the preceding provisions of the
Plan.

SECTION 8.06--DELEGATION OF AUTHORITY.

         All or any part of the administrative duties and responsibilities under
this article may be delegated by the Plan Administrator to a retirement
committee. The duties and responsibilities of the retirement committee shall be
set out in a separate written agreement.

SECTION 8.07--VOTING AND TENDER OF QUALIFYING EMPLOYER SECURITIES.

         Voting rights with respect to Qualifying Employer Securities will be
passed through to Participants. Participants will be allowed to direct the
voting rights of Qualifying Employer Securities for any matter put to the vote
of shareholders generally. Before each meeting of shareholders, the Employer
shall cause to be sent to each person with power to control such voting rights a
copy of any notice and any other information provided to shareholders and, if
applicable, a form for instructing the Trustee how to vote at such meeting (or
any adjournment thereof) the number of full and fractional shares subject to
such person's voting control. The Trustee' may establish a deadline in advance
of the meeting by which such forms must be received in order to be effective.

         Each Participant shall be entitled to one vote for each share credited
to his Account.

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<PAGE>   77

         If some or all of the Participants have not directed or have not timely
directed the Trustee on how to vote, then the Trustee shall vote such Qualifying
Employer Securities in the same proportion as those shares of Qualifying
Employer Securities for which the Trustee has received proper direction for such
matter.

         Tender rights or exchange offers for Qualifying Employer Securities
will be passed through to Participants. As soon as practicable after the
commencement of a tender of exchange offer for Qualifying Employer Securities,
the Employer shall cause each person with power to control the response to such
tender or exchange offer to be advised in writing as to the terms of the offer
and, if applicable, to be provided with a form for instructing the Trustee, or
for revoking such instruction, to tender or exchange shares of Qualifying
Employer Securities, to the extent permitted under the terms of such offer. In
advising such persons of the terms of the offer, the Employer may include
statements from the board of directors setting forth its position with respect
to the offer.

         If some or all of the Participants have not directed or have not timely
directed the Trustee on how to tender, then the Trustee shall tender such
Qualifying Employer Securities in the same proportion as those shares of
Qualifying Employer Securities for which the Trustee has received proper
direction for such matter.

         If the tender or exchange offer is limited so that all of the shares
that the Trustee has been directed to tender or exchange cannot be sold or
exchanged, the shares that each Participant directed to be tendered or exchanged
shall be deemed to have been sold or exchanged in the same ratio that the number
of shares actually sold or exchanged bears to the total number of shares that
the Trustee was directed to tender or exchange.

         The Trustee shall hold the Participant's individual directions with
respect to voting rights or tender decisions in confidence and, except as
required by law, shall not divulge or release such individual directions to
anyone associated with the Employer. The Employer may require verification of
the Trustee's compliance with the directions received from Participants by any
independent auditor selected by the Employer, provided that such auditor agrees
to maintain the confidentiality of such individual directions.

         The Employer may develop procedures to facilitate the exercise of votes
or tender rights, such as the use of facsimile transmissions for the
Participants located in physically remote areas.

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<PAGE>   78

                                   ARTICLE IX

                               GENERAL PROVISIONS

SECTION 9.01--AMENDMENTS.

         The Employer may amend this Plan at any time, including any remedial
retroactive changes (within the specified period of time as may be determined by
Internal Revenue Service regulations) to comply with the requirements of any law
or regulation issued by any governmental agency to which the Employer is
subject. An amendment may not diminish or adversely affect any accrued interest
or benefit of Participants or their Beneficiaries or eliminate an optional form
of distribution with respect to benefits attributable to service before the
amendment nor allow reversion or diversion of Plan assets to the Employer at any
time, except as may be necessary to comply with the requirements of any law or
regulation issued by any governmental agency to which the Employer is subject.
No amendment to this Plan shall be effective to the extent that it has the
effect of decreasing a Participant's accrued benefit. However, a Participant's
Account may be reduced to the extent permitted under Code Section 412(c)(8). For
purposes of this paragraph, a Plan amendment which has the effect of decreasing
a Participant's Account or eliminating an optional form of benefit, with respect
to benefits attributable to service before the amendment shall be treated as
reducing an accrued benefit. Furthermore, if the vesting schedule of the Plan is
amended, in the case of an Employee who is a Participant as of the later of the
date such amendment is adopted or the date it becomes effective, the
nonforfeitable percentage (determined as of such date) of such Employee's
employer-derived accrued benefit will not be less than his percentage computed
under the Plan without regard to such amendment.

         An amendment shall not decrease a Participant's vested interest in the
Plan. If an amendment to the Plan, or a deemed amendment in the case of a change
in top-heavy status of the Plan as provided in the MODIFICATION OF VESTING
REQUIREMENTS SECTION of Article X, changes the computation of the percentage
used to determine that portion of a Participant's Account attributable to
Employer Contributions which is nonforfeitable (whether directly or indirectly),
each Participant or former Participant

         (a)      who has completed at least three Years of Service on the date
                  the election period described below ends (five Years of
                  Service if the Participant does not have at least one
                  Hour-of-Service in a Plan Year beginning after December 31,
                  1988) and

         (b)      whose nonforfeitable percentage will be determined on any date
                  after the date of the change

may elect, during the election period, to have the nonforfeitable percentage of
his Account that results from Employer Contributions determined without regard
to the amendment. This

                                       77
<PAGE>   79

election may not be revoked. An election does not need to be provided for any
Participant or former Participant whose nonforfeitable percentage, determined
according to the Plan provisions as changed, cannot at any time be less than the
percentage determined without regard to such change. The election period shall
begin no later than the date the Plan amendment is adopted, or deemed adopted in
the case of a change in the top-heavy status of the Plan, and end no earlier
than the sixtieth day after the latest of the date the amendment is adopted
(deemed adopted) or becomes effective, or the date the Participant is issued
written notice of the amendment (deemed amendment) by the Employer or the Plan
Administrator.

SECTION 9.02--DIRECT ROLLOVERS.

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

SECTION 9.03--MERGERS AND DIRECT TRANSFERS.

         The Plan may not be merged or consolidated with, nor have its assets or
liabilities transferred to, any other retirement plan, unless each Participant
in the plan would (if the plan then terminated) receive a benefit immediately
after the merger, consolidation or transfer which is equal to or greater than
the benefit the Participant would have been entitled to receive immediately
before the merger, consolidation or transfer (if this Plan had then terminated).
The Employer may enter into merger agreements or direct transfer of assets
agreements with the employers under other retirement plans which are qualifiable
under Code Section 401(a), including an elective transfer, and may accept the
direct transfer of plan assets, or may transfer plan assets, as a party to any
such agreement. The Employer shall not consent to, or be a party to a merger,
consolidation or transfer of assets with a defined benefit plan if such action
would result in a defined benefit feature being maintained under this Plan.

         The Plan may accept a direct transfer of plan assets on behalf of an
Eligible Employee. If the Eligible Employee is not an Active Participant when
the transfer is made, the Eligible Employee shall be deemed to be an Active
Participant only for the purpose of investment and distribution of the
transferred assets. Employer Contributions shall not be made for or allocated to
the Eligible Employee, until the time he meets all of the requirements to become
an Active Participant.

         The Plan shall hold, administer and distribute the transferred assets
as a part of the Plan. The Plan shall maintain a separate account for the
benefit of the Employee on whose behalf the Plan accepted the transfer in order
to reflect the value of the transferred assets. Unless a transfer of assets to
the Plan is an elective transfer, the Plan shall apply the optional forms of
benefit protections described in the AMENDMENTS SECTION of Article IX to all

                                       78
<PAGE>   80

transferred assets. A transfer is elective if: (1) the transfer is voluntary,
under a fully informed election by the Participant; (2) the Participant has an
alternative that retains his Code Section 411(d)(6) protected benefits
(including an option to leave his benefit in the transferor plan, if that plan
is not terminating); (3) if the transferor plan is subject to Code Sections
401(a)(11) and 417, the transfer satisfies the applicable spousal consent
requirements of the Code; (4) the notice requirements under Code Section 417,
requiring a written explanation with respect to an election not to receive
benefits in the form of a qualified joint and survivor annuity, are met with
respect to the Participant and spousal transfer election; (5) the Participant
has a right to immediate distribution from the transferor plan under provisions
in the plan not inconsistent with Code Section 401(a); (6) the transferred
benefit is equal to the Participant's entire nonforfeitable accrued benefit
under the transferor plan, calculated to be at least the greater of the single
sum distribution provided by the transferor plan (if any) or the present value
of the Participant's accrued benefit under the transferor plan payable at the
plan's normal retirement age and calculated using an interest rate subject to
the restrictions of Code Section 417(e) and subject to the overall limitations
of Code Section 415; (7) the Participant has a 100% nonforfeitable interest in
the transferred benefit; and (8) the transfer otherwise satisfies applicable
Treasury regulations.

SECTION 9.04--PROVISIONS RELATING TO THE INSURER AND OTHER PARTIES.

         The obligations of an Insurer shall be governed solely by the
provisions of the Group Contract. The Insurer shall not be required to perform
any act not provided in or contrary to the provisions of the Group Contract. See
the CONSTRUCTION SECTION of this article.

         Any issuer or distributor of investment contracts or securities is
governed solely by the terms of its policies, written investment contract,
prospectuses, security instruments, and any other written agreements entered
into with the Trustee.

         Such Insurer, issuer or distributor is not a party to the Plan, nor
bound in any way by the Plan provisions. Such parties shall not be required to
look to the terms of this Plan, nor to determine whether the Employer, the Plan
Administrator, the Trustee, or the Named Fiduciary have the authority to act in
any particular manner or to make any contract or agreement.

         Until notice of any amendment or termination of this Plan or a change
in Trustee has been received by the Insurer at its home office or an issuer or
distributor at their principal address, they are and shall be fully protected in
assuming that the Plan has not been amended or terminated and in dealing with
any party acting as Trustee according to the latest information which they have
received at their home office or principal address.

SECTION 9.05--EMPLOYMENT STATUS.

         Nothing contained in this Plan gives an Employee the right to be
retained in the Employer's employ or to interfere with the Employer's right to
discharge any Employee.

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<PAGE>   81

SECTION 9.06--RIGHTS TO PLAN ASSETS.

         No Employee shall have any right to or interest in any assets of the
Plan upon termination of his employment or otherwise except as specifically
provided under this Plan, and then only to the extent of the benefits payable to
such Employee in accordance with Plan provisions.

         Any final payment or distribution to a Participant or his legal
representative or to any Beneficiaries, spouse or Contingent Annuitant of such
Participant under the Plan provisions shall be in full satisfaction of all
claims against the Plan, the Named Fiduciary, the Plan Administrator, the
Trustee, the Insurer, and the Employer arising under or by virtue of the Plan.

SECTION 9.07--BENEFICIARY.

         Each Participant may name a Beneficiary to receive any death benefit
(other than any income payable to a Contingent Annuitant) that may arise out of
his participation in the Plan. The Participant may change his Beneficiary from
time to time. Unless a qualified election has been made, for purposes of
distributing any death benefits before Retirement Date, the Beneficiary of a
Participant who has a spouse who is entitled to a Qualified Preretirement
Survivor Annuity shall be the Participant's spouse. The Participant's
Beneficiary designation and any change of Beneficiary shall be subject to the
provisions of the ELECTION PROCEDURES SECTION of Article VI. It is the
responsibility of the Participant to give written notice to the Insurer of the
name of the Beneficiary on a form furnished for that purpose.

         With the Employer's consent, the Plan Administrator may maintain
records of Beneficiary designations for Participants before their Retirement
Dates. In that event, the written designations made by Participants shall be
filed with the Plan Administrator. If a Participant dies before his Retirement
Date, the Plan Administrator shall certify to the Insurer the Beneficiary
designation on its records for the Participant.

         If, at the death of a Participant, there is no Beneficiary named or
surviving, any death benefit under the Group Contract shall be paid under the
applicable provisions of the Group Contract.

SECTION 9.08--NONALIENATION OF BENEFITS.

         Benefits payable under the Plan are not subject to the claims of any
creditor of any Participant, Beneficiary, spouse or Contingent Annuitant. A
Participant, Beneficiary, spouse or Contingent Annuitant does not have any
rights to alienate, anticipate, commute, pledge, encumber or assign any of such
benefits, except in the case of a loan as provided in the LOANS TO PARTICIPANTS
SECTION of Article V. The preceding sentences shall also apply to the creation,
assignment, or recognition of a right to any benefit payable with respect to a
Participant according to a domestic relations order, unless such order is
determined by the

                                       80
<PAGE>   82

Plan Administrator to be a qualified domestic relations order, as defined in
Code Section 414(p), or any domestic relations order entered before January 1,
1985.

SECTION 9.09--CONSTRUCTION.

         The validity of the Plan or any of its provisions is determined under
and construed according to Federal law and, to the extent permissible, according
to the laws of the state in which the Employer has its principal office. In case
any provision of this Plan is held illegal or invalid for any reason, such
determination shall not affect the remaining provisions of this Plan, and the
Plan shall be construed and enforced as if the illegal or invalid provision had
never been included.

         In the event of any conflict between the provisions of the Plan and the
terms of any contract or policy issued hereunder, the provisions of the Plan
control the operation and administration of the Plan.

SECTION 9.10--LEGAL ACTIONS.

         The Plan, the Plan Administrator, the Trustee and the Named Fiduciary
are the necessary parties to any action or proceeding involving the assets held
with respect to the Plan or administration of the Plan or Trust. No person
employed by the Employer, no Participant, former Participant or their
Beneficiaries or any other person having or claiming to have an interest in the
Plan is entitled to any notice of process. A final judgment entered in any such
action or proceeding shall be binding and conclusive on all persons having or
claiming to have an interest in the Plan.

SECTION 9.11--SMALL AMOUNTS.

         If the Vested Account of a Participant has never exceeded $5,000, the
entire Vested Account shall be payable in a single sum as of the earliest of his
Retirement Date, the date he dies, or the date he ceases to be an Employee for
any other reason. This is a small amounts payment. If a small amount is payable
as of the date the Participant dies, the small amounts payment shall be made to
the Participant's Beneficiary (spouse if the death benefit is payable to the
spouse). If a small amount is payable while the Participant is living, the small
amounts payment shall be made to the Participant. The small amounts payment is
in full settlement of all benefits otherwise payable.

         No other small amounts payments shall be made.

SECTION 9.12--WORD USAGE.

         The masculine gender, where used in this Plan, shall include the
feminine gender and the singular words as used in this Plan may include the
plural, unless the context indicates otherwise.

                                       81
<PAGE>   83

SECTION 9.13--TRANSFERS BETWEEN PLANS.

         If an Employee previously participated in another plan of the Employer
which credited service under the elapsed time method for any purpose which under
this Plan is determined using the hours method, then the Employee's service
shall be equal to the sum of (a), (b) and (c) below:

         (a)      The number of whole years of service credited to him under the
                  other plan as of the date he became an Eligible Employee under
                  this Plan.

         (b)      One year or a part of a year of service for the applicable
                  service period in which he became an Eligible Employee if he
                  is credited with the required number of Hours-of-Service. If
                  the Employer does not have sufficient records to determine the
                  Employee's actual Hours-of-Service in that part of the service
                  period before the date he became an Eligible Employee, the
                  Hours-of-Service shall be determined using an equivalency. For
                  any month in which he would be required to be credited with
                  one Hour-of-Service, the Employee shall be deemed for purposes
                  of this section to be credited with 190 Hours-of-Service.

         (c)      The Employee's service determined under this Plan using the
                  hours method after the end of the applicable service period in
                  which he became an Eligible Employee.

         If an Employee previously participated in another plan of the Employer
which credited service under the hours method for any purpose which under this
Plan is determined using the elapsed time method, then the Employee's service
shall be equal to the sum of (d), (e) and (f) below:

         (d)      The number of whole years of service credited to him under the
                  other plan as of the beginning of the applicable service
                  period under that plan in which he became an Eligible Employee
                  under this Plan.

         (e)      The greater of (1) the service that would be credited to him
                  for that entire service period using the elapsed time method
                  or (2) the service credited to him under the other plan as of
                  the date he became an Eligible Employee under this Plan.

         (f)      The Employee's service determined under this Plan using the
                  elapsed time method after the end of the applicable service
                  period under the other plan in which he became an Eligible
                  Employee.

         Any modification of service contained in this Plan shall be applicable
to the service determined pursuant to this section.

                                       82
<PAGE>   84

         If the Employee previously participated in the plan of a Controlled
Group member which credited service under a different method than is used in
this Plan, for purposes of determining eligibility and vesting the provisions
above shall apply as though the plan of the Controlled Group member were a plan
of the Employer.

                                       83
<PAGE>   85

                                    ARTICLE X

                           TOP-HEAVY PLAN REQUIREMENTS

SECTION 10.01--APPLICATION.

         The provisions of this article shall supersede all other provisions in
the Plan to the contrary.

         For the purpose of applying the Top-heavy Plan requirements of this
article, all members of the Controlled Group shall be treated as one Employer.
The term Employer as used in this article shall be deemed to include all members
of the Controlled Group unless the term as used clearly indicates only the
Employer is meant.

         The accrued benefit or account of a participant which results from
deductible voluntary contributions shall not be included for any purpose under
this article.

         The minimum vesting and contribution provisions of the MODIFICATION OF
VESTING REQUIREMENTS and MODIFICATION OF CONTRIBUTIONS SECTIONS of Article X
shall not apply to any Employee who is included in a group of Employees covered
by a collective bargaining agreement which the Secretary of Labor finds to be a
collective bargaining agreement between employee representatives and one or more
employers, including the Employer, if there is evidence that retirement benefits
were the subject of good faith bargaining between such representatives. For this
purpose, the term "employee representatives" does not include any organization
more than half of whose members are employees who are owners, officers, or
executives.

SECTION 10.02--DEFINITIONS.

         The following terms are defined for purposes of this article.

         Aggregation Group means

         (a)      each of the Employer's retirement plans in which a Key
                  Employee is a participant during the Year containing the
                  Determination Date or one of the four preceding Years,

         (b)      each of the Employer's other retirement plans which allows the
                  plans) described in (a) above to meet the nondiscrimination
                  requirement of Code Section 401(a)(4) or the minimum coverage
                  requirement of Code Section 410, and

         (c)      any of the Employer's other retirement plans not included in
                  (a) or (b) above which the Employer desires to include as part
                  of the Aggregation Group. Such a

                                       84
<PAGE>   86

                  retirement plan shall be included only if the Aggregation
                  Group would continue to satisfy the requirements of Code
                  Section 401(a)(4) and Code Section 410.

         The plans in (a) and (b) above constitute the "required" Aggregation
         Group. The plans in (a), (b) and (c) above constitute the "permissive"
         Aggregation Group.

         Compensation means, as to an Employee for any period, compensation as
         defined in the CONTRIBUTION LIMITATION SECTION of Article III. For
         purposes of determining who is a Key Employee, Compensation shall
         include, in addition to compensation as defined in the CONTRIBUTION
         LIMITATION SECTION of Article III, elective contributions. Elective
         contributions are amounts excludable from the Employee's gross income
         under Code Sections 125, 402(e)(3), 402(h) or 403(b), and contributed
         by the Employer, at the Employee's election, to a Code Section 401(k)
         arrangement, a simplified employee pension, cafeteria plan or
         tax-sheltered annuity.

         For purposes of Compensation as defined in this section, Compensation
         shall be limited to the maximum dollar amount, as adjusted, in the same
         manner and in the same time as the Compensation defined in the
         DEFINITION SECTION of Article I.

         Determination Date means as to this Plan for any Year, the last day of
         the preceding Year. However, if there is no preceding Year, the
         Determination Date is the last day of such Year.

         Key Employee means any Employee or former Employee (including
         Beneficiaries of deceased Employees) who at any time during the
         determination period was

         (a)      one of the Employer's officers (subject to the maximum below)
                  whose Compensation (as defined in this section) for the Year
                  exceeds 50 percent of the dollar limitation under Code Section
                  415(b)(1)(A),

         (b)      one of the ten Employees who owns (or is considered to own,
                  under Code Section 318) more than a half percent ownership
                  interest and one of the largest interests in the Employer
                  during any Year of the determination period if such person's
                  Compensation (as defined in this section) for the Year exceeds
                  the dollar limitation under Code Section 415(c)(1)(A),

         (c)      a five-percent owner of the Employer, or

         (d)      a one-percent owner of the Employer whose Compensation (as
                  defined in this section) for the Year is more than $ 150,000.

         Each member of the Controlled Group shall be treated as a separate
         employer for purposes of determining ownership in the Employer.

                                       85
<PAGE>   87

         The determination period is the Year containing the Determination Date
         and the four preceding Years. If the Employer has fewer than 30
         Employees, no more than three Employees shall be treated as Key
         Employees because they are officers. If the Employer has between 30 and
         500 Employees, no more than ten percent of the Employer's Employees (if
         not an integer, increased to the next integer) shall be treated as Key
         Employees because they are officers. In no event will more than 50
         Employees be treated as Key Employees because they are officers if the
         Employer has 500 or more Employees. The number of Employees for any
         Plan Year is the greatest number of Employees during the determination
         period. Officers who are employees described in Code Section 414(q)(8)
         shall be excluded. If the Employer has more than the maximum number of
         officers to be treated as Key Employees, the officers shall be ranked
         by amount of annual Compensation (as defined in this section), and
         those with the greater amount of annual Compensation during the
         determination period shall be treated as Key Employees. To determine
         the ten Employees owning the largest interests in the Employer, if more
         than one Employee has the same ownership interest, the Employee(s)
         having the greater annual Compensation shall be treated as owning the
         larger interest(s). The determination of who is a Key Employee shall be
         made according to Code Section 416(i)(1) and the regulations
         thereunder.

         Non-key Employee means a person who is a non-key employee within the
         meaning of Code Section 416 and regulations thereunder.

         Present Value means the present value of a participant's accrued
         benefit under a defined benefit plan as of his normal retirement age
         (attained age if later) or, if the plan provides non-proportional
         subsidies, the age at which the benefit is most valuable. The accrued
         benefit of any Employee (other than a Key Employee) shall be determined
         under the method which is used for accrual purposes for all plans of
         the Employer or if there is no one method which is used for accrual
         purposes for all plans of the Employer, as if such benefit accrued not
         more rapidly than the slowest accrual rate permitted under Code Section
         411(b)(1)(C). For purposes of establishing Present Value, any benefit
         shall be discounted only for 7.5% interest and mortality according to
         the 1971 Group Annuity Table (Male) without the 7% margin but with
         projection by Scale E from 1971 to the later of (a) 1974, or (b) the
         year determined by adding the age to 1920, and wherein for females the
         male age six years younger is used. If the Present Value of accrued
         benefits is determined for a participant under more than one defined
         benefit plan included in the Aggregation Group, all such plans shall
         use the same actuarial assumptions to determine the Present Value.

         Top-heavy Plan means a plan which is a top-heavy plan for any plan year
         beginning after December 31, 1983. This Plan shall be a Top-heavy Plan
         if

         (a)      the Top-heavy Ratio for this Plan alone exceeds 60 percent and
                  this Plan is not part of any required Aggregation Group or
                  permissive Aggregation Group.

                                       86
<PAGE>   88

         (b)      this Plan is a part of a required Aggregation Group, but not
                  part of a permissive Aggregation Group, and the Top-heavy
                  Ratio for the required Aggregation Group exceeds 60 percent.

         (c)      this Plan is a part of a required Aggregation Group and part
                  of a permissive Aggregation Group and the Top-heavy Ratio for
                  the permissive Aggregation Group exceeds 60 percent.

         Top-heavy Ratio means the ratio calculated below for this Plan or for
         the Aggregation Group.

         (a)      If the Employer maintains one or more defined contribution
                  plans (including any simplified employee pension plan) and the
                  Employer has not maintained any defined benefit plan which
                  during the five-year period ending on the determination date
                  has or has had accrued benefits, the Top-heavy Ratio for this
                  Plan alone or for the required or permissive Aggregation Group
                  as appropriate is a fraction, the numerator of which is the
                  sum of the account balances of all Key Employees as of the
                  determination date and the denominator of which is the sum of
                  all account balances of all employees as of the determination
                  date. Both the numerator and denominator of the Top-heavy
                  Ratio are adjusted for any distribution of an account balance
                  (including those made from terminated plan(s) of the Employer
                  which would have been part of the required Aggregation Group
                  had such plan(s) not been terminated) made in the five-year
                  period ending on the determination date. Both the numerator
                  and denominator of the Top-heavy Ratio are increased to
                  reflect any contribution not actually made as of the
                  Determination Date, but which is required to be taken into
                  account on that date under Code Section 416 and the
                  regulations thereunder.

         (b)      If the Employer maintains one or more defined contribution
                  plans (including any simplified employee pension plan) and the
                  Employer maintains or has maintained one or more defined
                  benefit plans which during the five-year period ending on the
                  determination date has or has had accrued benefits, the
                  Top-heavy Ratio for any required or permissive Aggregation
                  Group as appropriate is a fraction, the numerator of which is
                  the sum of the account balances under the defined contribution
                  plan(s) of all Key Employees and the Present Value of accrued
                  benefits under the defined benefit plan(s) for all Key
                  Employees, and the denominator of which is the sum of the
                  account balances under the defined contribution plan(s) for
                  all employees and the Present Value of accrued benefits under
                  the defined benefit plans for all employees. Both the
                  numerator and denominator of the Top-heavy Ratio are adjusted
                  for any distribution of an account balance or an accrued
                  benefit (including those made from terminated plan(s) of the
                  Employer which would have been part of the required
                  Aggregation

                                       87
<PAGE>   89

                  Group had such plan(s) not been terminated) made in the
                  five-year period ending on the determination date.

         (c)      For purposes of (a) and (b) above, the value of account
                  balances and the Present Value of accrued benefits will be
                  determined as of the most recent valuation date that falls
                  within or ends with the 12-month period ending on the
                  determination date, except as provided in Code Section 416 and
                  the regulations thereunder for the first and second plan years
                  of a defined benefit plan. The account balances and accrued
                  benefits of an employee who is not a Key Employee but who was
                  a Key Employee in a prior year will be disregarded. The
                  calculation of the Top-heavy Ratio and the extent to which
                  distributions, rollovers and transfers during the five-year
                  period ending on the determination date are to be taken into
                  account, shall be determined according to the provisions of
                  Code Section 416 and regulations thereunder. The account
                  balances and accrued benefits of an individual who has
                  performed no service for the Employer during the five-year
                  period ending on the determination date shall be excluded from
                  the Top-heavy Ratio until the time the individual again
                  performs service for the Employer. Deductible employee
                  contributions will not be taken into account for purposes of
                  computing the Top-heavy Ratio. When aggregating plans, the
                  value of account balances and accrued benefits will be
                  calculated with reference to the determination dates that fall
                  within the same calendar year.

         Account, as used in this definition, means the value of an employee's
         account under one of the Employer's retirement plans on the latest
         valuation date. In the case of a money purchase plan or target benefit
         plan, such value shall be adjusted to include any contributions made
         for or by the employee after the valuation date and on or before such
         determination date or due to be made as of such determination date but
         not yet forwarded to the insurer or trustee. In the case of a profit
         sharing plan, such value shall be adjusted to include any contributions
         made for or by the employee after the valuation date and on or before
         such determination date. During the first Year of any profit sharing
         plan such adjustment in value shall include contributions made after
         such determination date that are allocated as of a date in such Year.
         The nondeductible employee contributions which an employee makes under
         a defined benefit plan of the Employer shall be treated as if they were
         contributions under a separate defined contribution plan.

         Valuation Date means, as to this Plan, the last day of the last
         calendar month ending in a Year.

         Year means the Plan Year unless another year is specified by the
         Employer in a separate written resolution in accordance with
         regulations issued by the Secretary of the Treasury or his delegate.

                                       88
<PAGE>   90

SECTION 10.03--MODIFICATION OF VESTING REQUIREMENTS.

         If a Participant's Vesting Percentage determined under Article I is not
at least as great as his Vesting Percentage would be if it were determined under
a schedule permitted in Code Section 416, the following shall apply. During any
Year in which the Plan is a Top-heavy Plan, the Participant's Vesting Percentage
shall be the greater of the Vesting Percentage determined under Article I or the
schedule below.

<TABLE>
<CAPTION>
                  VESTING SERVICE                         NONFORFEITABLE
                   (whole years)                            PERCENTAGE
<S>                                                       <C>
                    Less than 2                                  0
                         2                                      20
                         3                                      40
                         4                                      60
                         5                                      80
                     6 or more                                 100
</TABLE>

         The schedule above shall not apply to Participants who are not credited
with an Hour-of-Service after the Plan first becomes a Top-heavy Plan. The
Vesting Percentage determined above applies to all of the Participant's Account
resulting from Employer Contributions, including Contributions the Employer
makes before the TEFRA Compliance Date or when the Plan is not a Top-heavy Plan.

         If, in a later Year, this Plan is not a Top-heavy Plan, a Participant's
Vesting Percentage shall be determined under Article I. A Participant's Vesting
Percentage determined under either Article I or the schedule above shall never
be reduced and the election procedures of the AMENDMENTS SECTION of Article IX
shall apply when changing to or from the schedule as though the automatic change
were the result of an amendment.

         The part of the Participant's Vested Account resulting from the minimum
contributions required pursuant to the MODIFICATION OF CONTRIBUTIONS SECTION of
Article X shall not be forfeited because of a period of reemployment after
benefit payments have begun.

SECTION 10.04--MODIFICATION OF CONTRIBUTIONS.

         During any Year, the Employer shall make a minimum contribution or
allocation on the last day of the Year for each person who is a Non-key Employee
on that day and who either was or could have been an Active Participant during
the Year. A Non-key Employee is not required to have a minimum number of
hours-of-service or minimum amount of Compensation, or to have had any Elective
Deferral Contributions made for him in order to be entitled to this minimum. The
minimum contribution or allocation for such person shall be equal to the lesser
of (a) or (b) below:

                                       89
<PAGE>   91

         (a)      Three percent of such person's Compensation (as defined in
                  this article).

         (b)      The "highest percentage" of Compensation (as defined in this
                  article) for such Year at which the Employer's contributions
                  are made for or allocated to any Key Employee. The highest
                  percentage shall be determined by dividing the Employer
                  Contributions made for or allocated to each Key Employee
                  during such Year by the amount of his Compensation (as defined
                  in this article), which is not more than the maximum set out
                  above, and selecting the greatest quotient (expressed as a
                  percentage). To determine the highest percentage, all of the
                  Employer's defined contribution plans within the Aggregation
                  Group shall be treated as one plan. The provisions of this
                  paragraph shall not apply if this Plan and a defined benefit
                  plan of the Employer are required to be included in the
                  Aggregation Group and this Plan enables the defined benefit
                  plan to meet the requirements of Code Section 401(a)(4) or
                  Code Section 410.

         If the Employer's contributions and allocations otherwise required
under the defined contribution plan(s) are at least equal to the minimum above,
no additional contribution or reallocation shall be required. If the Employer's
contributions and allocations are less than the minimum above and Employer
Contributions under this Plan are allocated to Participants, any Employer
Contributions (other than those which are allocated on the basis of the amount
made for such person) shall be reallocated to provide the minimum. The remaining
Contributions shall be allocated as provided in the preceding articles of this
Plan taking into account any amount which was reallocated to provide the
minimum. If the Employer's total contributions and allocations are less than the
minimum above after any reallocation provided above, the Employer shall
contribute the difference for the Year.

         The minimum contribution or allocation applies to all of the Employer's
defined contribution plans in the aggregate which are Top-heavy Plans. If an
additional contribution or allocation is required to meet the minimum above, it
shall be provided in this Plan.

         A minimum allocation under a profit sharing plan shall be made without
regard to whether or not the Employer has profits.

         If a person who is otherwise entitled to a minimum contribution or
allocation above is also covered under a defined benefit plan of the Employer's
which is a Top-heavy Plan during that same Year, the minimum benefits for him
shall not be duplicated. The defined benefit plan shall provide an annual
benefit for him on, or adjusted to, a straight life basis of the lesser of (c)
two percent of his average pay multiplied by his years of service or (d) twenty
percent of his average pay. Average pay and years of service shall have the
meaning set forth in such defined benefit plan for this purpose.

         For purposes of this section, any employer contribution made according
to a salary reduction or similar arrangement shall not apply before the first
Yearly Date in 1985. On and

                                       90
<PAGE>   92

after the first Yearly Date in 1989, any such employer contributions and
employer contributions which are matching contributions, as defined in Code
Section 401(m), shall not apply in determining if the minimum contribution
requirement has been met, but shall apply in determining the minimum
contribution required. Forfeitures credited to a Participant's Account are
treated as employer contributions.

         The requirements of this section shall be met without regard to
contributions under Chapter 2 of the Code (relating to tax on self-employment),
Chapter 21 of the Code (relating to Federal Insurance Contributions Act), Title
II of the Social Security Act or any other Federal or state law.

SECTION 10.05--MODIFICATION OF CONTRIBUTION LIMITATION.

         If the provisions of subsection (e) of the CONTRIBUTION LIMITATION
SECTION of Article III are applicable for any Limitation Year during which this
Plan is a Top-heavy Plan, the benefit limitations shall be modified. The
definitions of Defined Benefit Plan Fraction and Defined Contribution Plan
Fraction in the CONTRIBUTION LIMITATION SECTION of Article III shall be modified
by substituting "1.0" in lieu of "1.25." The optional denominator for
determining the Defined Contribution Plan Fraction shall be modified by
substituting "$41,500" in lieu of "$51,875." In addition, an adjustment shall be
made to the numerator of the Defined Contribution Plan Fraction. The adjustment
is a reduction of that numerator similar to the modification of the Defined
Contribution Plan Fraction described in the CONTRIBUTION LIMITATION SECTION of
Article III, and shall be made with respect to the last Plan Year beginning
before January 1, 1984.

         The modifications in the paragraph above shall not apply with respect
to a Participant so long as employer contributions, forfeitures or nondeductible
employee contributions are not credited to his account under this or any of the
Employer's other defined contribution plans and benefits do not accrue for such
Participant under the Employer's defined benefit plan(s), until the sum of his
Defined Contribution and Defined Benefit Plan Fractions is less than 1.0.

                                       91
<PAGE>   93

         By executing this Plan, the Primary Employer acknowledges having
counseled to the extent necessary with selected legal and tax advisors regarding
the Plan's legal and tax implications.

         Executed this 26th day of September, 2000.

                                      LANCER CORPORATION

                                      By:  /s/ STONEWALL J. FISHER, III
                                           -------------------------------------
                                           Stonewall J. Fisher, III

                                           Vice President-Legal Affairs and
                                                  Chief Legal Officer
                                           -------------------------------------
                                                        Title

                                                   Defined Contribution Plan 7.7

                                       92

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