A federal indictment yesterday charged that 10 men who allegedly plotted to invade a Caribbean island were promised money and power by a former prime minister they intended to restore to power.

The grand jury's indictment says the men -- eight Americans and two Canadians arrested April 27 -- were supposed to overthrow the government of the tiny island of Dominica.

In return, they were to be given rights to a variety of enterprises, including gambling, agriculture and lumber from government forests, the nine-page indictmen charges.

Six of the 10 men have been active members of the Ku Klux Klan. One is a grand wizard of the Knights of the Ku Klux Klan.

Named in the indictment was Michael E. Perdue, 32, of Houston, the alleged ringleader, who was said to have been promised $150,000 in cash from the government treasury plus a position in the government. The indictment alleges that Perdue entered into a written agreement on the invasion and takeover with the former prime minister of Dominica, Patrick John.

Eugenia Charles defeated John in the most recent election in Dominica, which is 29 miles long and has a population of 70,000. She had him arrested last month after learning of the alleged conspiracy to overthrow her.