exv4w1






Exhibit 4.1




CMI

TAX DEFERRED SAVINGS PLAN FOR THE NORTH RIVER MINE




 









 





TABLE OF CONTENTS




	 	 	 	 	 
	ARTICLE I 
DEFINITIONS

	 
	 	 	 	 
	ARTICLE II 
ADMINISTRATION

	 
	 	 	 	 
	2.1 POWERS AND RESPONSIBILITIES OF THE EMPLOYER
	 	 	12	 
	2.2 DESIGNATION OF ADMINISTRATIVE AUTHORITY
	 	 	13	 
	2.3 ALLOCATION AND DELEGATION OF RESPONSIBILITIES
	 	 	13	 
	2.4 POWERS AND DUTIES OF THE ADMINISTRATOR
	 	 	13	 
	2.5 RECORDS AND REPORTS
	 	 	14	 
	2.6 APPOINTMENT OF ADVISERS
	 	 	14	 
	2.7 PAYMENT OF EXPENSES
	 	 	14	 
	2.8 CLAIMS PROCEDURE
	 	 	14	 
	2.9 CLAIMS REVIEW PROCEDURE
	 	 	14	 
	 
	 	 	 	 
	ARTICLE III 
ELIGIBILITY

	 
	 	 	 	 
	3.1 CONDITIONS OF ELIGIBILITY
	 	 	15	 
	3.2 EFFECTIVE DATE OF PARTICIPATION
	 	 	15	 
	3.3 DETERMINATION OF ELIGIBILITY
	 	 	15	 
	3.4 TERMINATION OF ELIGIBILITY 
	 	 	15	 
	3.5 REHIRED EMPLOYEES AND BREAKS IN SERVICE
	 	 	15	 
	3.6 ELECTION NOT TO PARTICIPATE
	 	 	16	 
	3.7 OWNER-EMPLOYEE LIMITATION
	 	 	16	 
	3.8 OMISSION OF ELIGIBLE EMPLOYEE; INCLUSION OF INELIGIBLE EMPLOYEE
	 	 	16	 
	 
	 	 	 	 
	ARTICLE IV 
CONTRIBUTION AND ALLOCATION

	 
	 	 	 	 
	4.1 FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION
	 	 	17	 
	4.2 PARTICIPANT’S SALARY REDUCTION ELECTION
	 	 	17	 
	4.3 TIME OF PAYMENT OF EMPLOYER CONTRIBUTION
	 	 	19	 
	4.4 ALLOCATION OF CONTRIBUTION AND USAGE OF FORFEITURES AND EARNINGS
	 	 	19	 
	4.5 ACTUAL DEFERRAL PERCENTAGE TEST
	 	 	21	 
	4.6 ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE TEST
	 	 	22	 
	4.7 ACTUAL CONTRIBUTION PERCENTAGE TEST
	 	 	24	 
	4.8 ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE TEST
	 	 	26	 
	4.9 MAXIMUM ANNUAL ADDITIONS
	 	 	28	 
	4.10 ADJUSTMENT FOR EXCESS ANNUAL ADDITIONS
	 	 	29	 
	4.11 PLAN-TO-PLAN TRANSFERS (OTHER THAN ROLLOVERS) FROM QUALIFIED PLANS
	 	 	29	 
	4.12 PARTICIPANT DIRECTED INVESTMENTS
	 	 	30	 
	4.13 QUALIFIED MILITARY SERVICE
	 	 	31	 






 









 






	 	 	 	 	 
	ARTICLE V 
VALUATIONS

	 
	 	 	 	 
	5.1 VALUATION OF THE TRUST FUND
	 	 	31	 
	5.2 METHOD OF VALUATION
	 	 	32	 
	 
	 	 	 	 
	ARTICLE VI 
DETERMINATION AND DISTRIBUTION OF BENEFITS

	 
	 	 	 	 
	6.1 DETERMINATION OF BENEFITS UPON RETIREMENT
	 	 	32	 
	6.2 DETERMINATION OF BENEFITS UPON DEATH
	 	 	32	 
	6.3 DISABILITY RETIREMENT BENEFITS
	 	 	33	 
	6.4 DETERMINATION OF BENEFITS UPON TERMINATION
	 	 	33	 
	6.5 DISTRIBUTION OF BENEFITS
	 	 	34	 
	6.6 DISTRIBUTION OF BENEFITS UPON DEATH
	 	 	34	 
	6.7 TIME OF DISTRIBUTION
	 	 	35	 
	6.8 REQUIRED MINIMUM DISTRIBUTIONS
	 	 	35	 
	6.9 DISTRIBUTION FOR MINOR OR INCOMPETENT INDIVIDUAL
	 	 	38	 
	6.10 LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN
	 	 	38	 
	6.11 PRE-RETIREMENT DISTRIBUTION OF EMPLOYER CONTRIBUTIONS
	 	 	38	 
	6.12 ADVANCE DISTRIBUTION FOR HARDSHIP
	 	 	39	 
	6.13 QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION
	 	 	40	 
	6.14 DIRECT ROLLOVER
	 	 	40	 
	6.15 TRANSFER OF ASSETS FROM A MONEY PURCHASE PLAN
	 	 	40	 
	6.16 CORRECTIVE DISTRIBUTIONS
	 	 	41	 
	 
	 	 	 	 
	ARTICLE VII 
TRUSTEE

	 
	 	 	 	 
	7.1 BASIC RESPONSIBILITIES OF THE TRUSTEE
	 	 	41	 
	7.2 INVESTMENT POWERS AND DUTIES OF THE TRUSTEE
	 	 	42	 
	7.3 OTHER POWERS OF THE TRUSTEE
	 	 	42	 
	7.4 POWERS OF THE CUSTODIAN
	 	 	43	 
	7.5 ALLOCATION AND DELEGATION OF RESPONSIBILITIES
	 	 	43	 
	7.6 MAJORITY ACTION
	 	 	43	 
	7.7 TRUSTEE’S COMPENSATION AND EXPENSES AND TAXES
	 	 	43	 
	7.8 ANNUAL REPORT OF THE TRUSTEE
	 	 	43	 
	7.9 AUDIT
	 	 	44	 
	7.10
RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE
	 	 	44	 
	7.11 TRANSFER OF INTEREST
	 	 	45	 
	7.12 TRUSTEE INDEMNIFICATION
	 	 	45	 
	 
	 	 	 	 
	ARTICLE VIII 
AMENDMENT, TERMINATION AND MERGERS

	 
	 	 	 	 
	8.1 AMENDMENT
	 	 	45	 
	8.2 TERMINATION
	 	 	46	 
	8.3 MERGER, CONSOLIDATION OR TRANSFER OF ASSETS
	 	 	46	 






 









 






	 	 	 	 	 
	ARTICLE IX 
TOP-HEAVY

	 
	 	 	 	 
	9.1 TOP-HEAVY PLAN REQUIREMENTS
	 	 	46	 
	9.2 DETERMINATION OF TOP-HEAVY STATUS
	 	 	46	 
	 
	 	 	 	 
	ARTICLE X 
MISCELLANEOUS

	 
	 	 	 	 
	10.1 PARTICIPANT’S RIGHTS
	 	 	47	 
	10.2 ALIENATION OF BENEFITS
	 	 	47	 
	10.3 CONSTRUCTION AND INTERPRETATION OF PLAN
	 	 	48	 
	10.4 GENDER AND NUMBER
	 	 	48	 
	10.5 LEGAL ACTION 
	 	 	48	 
	10.6 PROHIBITION AGAINST DIVERSION OF FUNDS
	 	 	48	 
	10.7 EMPLOYER’S AND TRUSTEE’S PROTECTIVE CLAUSE
	 	 	48	 
	10.8 INSURER’S PROTECTIVE CLAUSE
	 	 	48	 
	10.9 RECEIPT AND RELEASE FOR PAYMENTS
	 	 	49	 
	10.10 ACTION BY THE EMPLOYER
	 	 	49	 
	10.11 NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY
	 	 	49	 
	10.12 HEADINGS
	 	 	49	 
	10.13 APPROVAL BY INTERNAL REVENUE SERVICE
	 	 	49	 
	10.14 ELECTRONIC MEDIA
	 	 	49	 
	10.15 PLAN CORRECTION
	 	 	49	 
	10.16 UNIFORMITY
	 	 	50	 
	 
	 	 	 	 
	ARTICLE XI 
PARTICIPATING EMPLOYERS

	 
	 	 	 	 
	11.1 ADOPTION BY OTHER EMPLOYERS
	 	 	50	 
	11.2 REQUIREMENTS OF PARTICIPATING EMPLOYERS
	 	 	50	 
	11.3 DESIGNATION OF AGENT
	 	 	50	 
	11.4 EMPLOYEE TRANSFERS
	 	 	50	 
	11.5 PARTICIPATING EMPLOYER CONTRIBUTION AND FORFEITURES
	 	 	50	 
	11.6 AMENDMENT
	 	 	50	 
	11.7 DISCONTINUANCE OF PARTICIPATION
	 	 	51	 
	11.8 ADMINISTRATOR’S AUTHORITY
	 	 	51	 
	11.9 PROVISIONS APPLIED SEPARATELY (OR JOINTLY) FOR PARTICIPATING NON-AFFILIATED
EMPLOYERS
	 	 	51	 
	11.10 TOP-HEAVY APPLIED SEPARATELY FOR PARTICIPATING NON- AFFILIATED EMPLOYERS
	 	 	51	 
	11.11 HIGHLY COMPENSATED EMPLOYEE STATUS
	 	 	52	 
	11.12 SERVICE
	 	 	52	 
	11.13 REQUIRED MINIMUM DISTRIBUTIONS
	 	 	52	 







 









 








CMI 

TAX DEFERRED SAVINGS PLAN  FOR THE NORTH RIVER MINE




     THIS AGREEMENT, hereby made and entered into this
1st  day of
January, 2009 by and
between Chevron Mining, Inc. (herein referred to as the “Employer”) and Merrill Lynch Trust of New
Jersey (herein referred to as the “Trustee”).



W I T N E S S E T H:




     WHEREAS, the Employer heretofore established a Profit Sharing Plan and Trust effective
January 1, 1999, (hereinafter called the “Effective Date”) known as CMI Tax Deferred Savings Plan
for the North River Mine (herein referred to as the “Plan”) in recognition of the contribution made to its successful
operation by its Employees and for the exclusive benefit of its Eligible Employees; and



     WHEREAS, under the terms of the Plan, the Employer has the ability to amend the Plan,
provided the Trustee joins in such amendment if the provisions of the Plan affecting the Trustee
are amended;



     NOW, THEREFORE, effective January 1, 2009, except as otherwise provided herein, the Employer
and the Trustee in accordance with the provisions of the Plan pertaining to amendments thereof,
hereby amend the Plan in its entirety and restate the Plan to provide as follows:



ARTICLE I 
DEFINITIONS



1.1 “Account” means any separate notational account established and maintained by the
Administrator for each Participant under the
Plan. The term “Participant’s Account” or “Participant’s Account Balance” generally means the sum
of all Accounts being maintained for
the Participant, which represents the Participant’s total interest in the Plan. Section 6.8
contains a definition of “Participant’s Account
Balance” for purposes of that Section. To the extent applicable, a Participant may have any (or
all) of the following notational Accounts:





	 	(a)	 	the Elective Deferral Account
	 
	 	(b)	 	the Matching Contribution Account
	 
	 	(c)	 	the Qualified Matching Contribution Account
	 
	 	(d)	 	the Qualified Nonelective Contribution Account
	 
	 	(e)	 	the Transfer Account
	 
	 	(f)	 	any other account, including an overlapping account or sub-account, necessary for the
administration of the Plan




1.2 “ACP” means the actual contribution percentage that is equal to, for a specific group of
Participants (either Highly Compensated
Employees or Nonhighly Compensated Employees) for a Plan Year, the average of the ACRs (calculated
separately for each Participant in
such group). The ACP for each group shall be calculated to the nearest one-hundredth of one
percent.




     For purposes of computing an ACP, a Participant is an Eligible Employee who is eligible to
have Matching Contributions or Qualified Matching Contributions made pursuant to Section 4.1(b)
(whether or not a deferral election was made or suspended pursuant to Section 4.2(e)) allocated to
such Participant’s Matching Contribution Account or Qualified Matching Contribution Account for a
“specific Plan Year”. In addition, if an Employee contribution is required as a condition of
participation in the Plan, any Employee who would be a Participant in the Plan if such Employee
made such a contribution shall be treated (for purposes of the ACP test) as an eligible
Participant on behalf of whom no Employee contributions are made. However, if a Participant has no
414(s) Compensation for the Plan Year, then such Participant shall be disregarded for purposes of
calculating the ACP of a group.



     For purposes of the above paragraph, the term “specific Plan Year” means, for Participants
who are Highly Compensated Employees, the Plan Year being tested. If the current year testing
method is being used, then the term “specific Plan Year” means, for Participants who are
Nonhighly Compensated Employees, the Plan Year being tested. If the prior year testing method is
being used, then the term “specific Plan Year” means, for Participants who are Nonhighly
Compensated Employees, the Plan Year prior to the Plan Year being tested.


1.3 “ACP Test” means the actual contribution percentage test determined pursuant to Section 4.7.



1.4 “ACR” means the actual contribution ratio of each Participant, that is a ratio (expressed as a
percentage) equal to (1) the
Contribution Percentage Amounts of such Participant for such Plan Year, to (2) such Participant’s
414(s) Compensation for such Plan Year.




     Matching Contributions, Qualified Matching Contributions and Qualified Nonelective
Contributions will be considered made for a Plan Year if made no later than the end of the twelve
(12) month period beginning on the date after the close of the Plan Year.



     The ACR for each Participant shall be calculated to the nearest one-hundredth of one percent.




1









 







1.5 “Act” means the Employee Retirement Income Security Act of 1974, as it may be amended from time
to time.



1.6 “Administrator” means the Employer unless another person or entity has been designated by the
Employer pursuant to Section 2.2
to administer the Plan on behalf of the Employer, “Administrator” also includes any Qualified
Termination Administrator (QTA) that has
assumed the responsibilities of the Administrator in accordance with guidelines set forth by the
Department of Labor.



1.7 “ADP” means the actual deferral percentage that is equal to, for a specific group of
Participants (either Highly Compensated
Employees or Nonhighly Compensated Employees) for a Plan Year, the average of the ADRs (calculated
separately for each Participant in
such group). The ADP for each group shall be calculated to the nearest one-hundredth of one
percent.




     For purposes of computing an ADP, a Participant is an Eligible Employee who is eligible to
make Elective Deferrals pursuant to Section 4.2 (whether or not a deferral election was made or
suspended pursuant to Section 4.2(e)) allocated to the Participant’s Elective Deferral Account for
a “specific Plan Year.” However, if a Participant has no 414(s) Compensation for the Plan Year,
then such Participant shall be disregarded for purposes of calculating the ADP of a group.



     For purposes of the above paragraph, the term “specific Plan Year” means, for Participants
who are Highly Compensated Employees, the Plan Year being tested. If the current year testing
method is being used, then the term “specific Plan Year” means, for Participants who are Nonhighly
Compensated Employees, the Plan Year being tested. If the prior year testing method is being used,
then the term “specific Plan Year” means, for Participants who are Nonhighly Compensated
Employees, the Plan Year prior to the Plan Year being tested.


1.8 “ADP Test” means the actual deferral percentage test determined pursuant to Section 4.5.



1.9 “ADR” means the actual deferral ratio of each Participant, that is a ratio (expressed as a
percentage) equal to (1) the amount of
Employer contributions actually paid over to the Plan on behalf of such Participant for such Plan
Year, to (2) such Participant’s 414(s)
Compensation for such Plan Year.




     For purposes of this definition of ADR, Employer contributions actually paid over to the Plan
on behalf of any Participant shall include: (a) any Elective Deferrals (other than Catch-Up
Contributions) made pursuant to the Participant’s deferral election (including Excess Deferrals of
any Highly Compensated Employee), but excluding (1) Excess Deferrals of any Nonhighly Compensated
Employee that arise solely from Elective Deferrals made under this Plan or any other plans
maintained by the Employer, and (2) Elective Deferrals that are
taken into account in the ACP Test
set forth in Section 4.7 (provided that the ADP Test is satisfied both with and without the
exclusion of these Elective Deferrals); and (b) at the election of the Employer, Qualified
Nonelective Contributions and Qualified Matching Contributions to the extent such contributions
are not used to satisfy the ACP Test, as well as any contributions authorized by (and to the
extent prescribed by) Section 4.6(c).



     For purposes of computing a Participant’s ADR, an Eligible Employee who would be a
Participant but for the failure to make Elective Deferrals shall be treated as a Participant on
whose behalf no Elective Deferrals are made.



     The ADR for each Participant shall be calculated to the nearest one-hundredth of one percent.


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



1.11 “Anniversary Date” means the last day of the Plan Year.



1.12
“Annual Additions” means, for purposes of applying the limitations of Code Section 415, the sum credited to a Participant’s
Accounts for any Limitation Year of (1) Employer contributions, (2) Employee contributions, (3)
forfeitures, (4) amounts allocated to an
individual medical account, as defined in Code Section 415(1)(2) which is part of a pension or
annuity plan maintained by the Employer,
(5) amounts derived from contributions paid or accrued 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 plan (as
defined in Code Section 419(e))
maintained by the Employer and (6) allocations under a simplified employee pension plan.




     Annual Additions do not include the transfers of funds from one plan to another. In addition,
the following are not Annual Additions for the purposes of this definition: (1) rollover
contributions as defined in Code Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3) and 457(e)(16);
(2) repayments of loans made to a Participant from the Plan; (3) repayment of distributions
received by an Employee pursuant to Code Section 411(a)(7)(B) (cash-outs); (4) repayment of
distributions received by an Employee pursuant to Code Section 411(a)(3)(D) (mandatory
contributions); (5) Catch-Up Contributions and (6) employee contributions to a simplified employee
pension excludable from gross income under Code Section 408(k)(6).


1.13 “Beneficiary” means the person (or entity) to whom the share of a deceased Participant’s
interest in the Plan is payable. Section 6.8
contains a definition of “designated Beneficiary” for purposes of that Section.




2









 




1.14 “Catch-Up Contribution” means, effective January 1, 2002, Elective Deferrals made to the Plan
by a Catch-Up Eligible
Participant during any taxable year of such Participant that are in excess of:





(a) a statutory dollar limit on Elective Deferrals or Annual Additions as provided in Code
Sections 401(a)(30), 402(h), 403(b), 408,
415(c), or 457(b)(2) (without regard to Code Section 457(b)(3)), as applicable;




(b) a Plan limit on Elective Deferrals which is not a limit provided in (a) above; or




(c) the limit imposed by the ADP Test under Code Section 401(k)(3), in which Excess
Contributions would otherwise be distributed
pursuant to Section 4.6(b) to a Highly Compensated Employee who is a Catch-Up Eligible
Participant.



     Catch-Up Contributions for a Participant for a Participant’s taxable year may not exceed the
dollar limit on Catch-Up Contributions under Code Section 414(v)(2)(B)(i) for the Participant’s
taxable year. The dollar limit on Catch-Up Contributions under 414(v)(2)(B)(i) is $1,000 for
taxable years beginning in 2002, increasing by $1,000 for each year thereafter up to $5,000 for
taxable years beginning in 2006 and later years. After 2006, the $5,000 limit will be adjusted by
the Secretary of the Treasury for cost-of-living increases under Code Section 414(v)(2)(C). Any
such adjustments will be in multiples of $500.


1.15 “Catch-Up Eligible Participant” means, effective January 1, 2002, a Participant who:





(a) is eligible to defer Compensation pursuant to Section 4.2; and




(b) will attain age 50 or over by the end of the Participant’s taxable year.


1.16 “Code” means the Internal Revenue Code of 1986, as amended or replaced from time to time.



1.17 “Compensation” means, with respect to any Participant and except as otherwise provided
herein, such Participant’s wages,
salaries, fees for professional services and other amounts received (without regard to whether or
not an amount is paid in cash) for personal
services actually rendered in the course of employment with the Employer maintaining the Plan to
the extent that the amounts are
includible in gross income (including, but not limited to, commissions paid salesmen, compensation
for services on the basis of a
percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and
reimbursements or other expense allowances
under a nonaccountable plan as described in Regulation 1.62-2(c)) for a Plan Year (the
“determination period”). Compensation for any
Self-Employed Individual shall be equal to such individual’s Earned Income.




     Compensation
shall exclude (a)(1) contributions made by the Employer to a plan of deferred
compensation to the extent that the contributions are not includible in the gross income of the
Participant for the taxable year in which contributed, (2) Employer contributions made on behalf
of an Employee to a simplified employee pension plan described in Code Section 408(k) to the
extent such contributions are excludable from the Employee’s gross income, (3) any distributions
from a plan of deferred compensation; (b) amounts realized from the exercise of a non-qualified
stock option, or when restricted stock (or property) held by an Employee either becomes freely
transferable or is no longer subject to a substantial risk of forfeiture; (c) amounts realized
from the sale, exchange or other disposition of stock acquired under a qualified stock option;
and (d) other amounts which receive special tax benefits, or contributions made by the Employer
(whether or not under a salary reduction agreement) towards the purchase of any annuity contract
described in Code Section 403(b) (whether or not the contributions are actually excludable from
the gross income of the Employee).



     For purposes of this Section, the determination of Compensation shall be made by:




(a) including amounts which are contributed by the Employer pursuant to a salary reduction
agreement and which are not includible
in the gross income of the Participant under Code Sections 125, 132(f)(4), 402(e)(3),
402(h)(1)(B), 403(b) or 457(b), and employee
contributions described in Code Section 414(h)(2) that are treated as Employer contributions.
For this purpose, effective January 1,
1998, amounts not includible in gross income under Code Section 125 shall be deemed to include
any amounts not available to a
Participant in cash in lieu of group health coverage because the Participant is unable to
certify that the Participant has other health
coverage, provided the Employer does not request or collect information regarding the
Participant’s other health coverage as part of
the enrollment process for the health plan.




(b) excluding pre-participation Compensation paid during the Plan Year while not a Participant
in the component of the Plan for
which Compensation is being used.




(c) effective for Plan Years beginning in and after 2006 including Post-Severance Compensation.



     For Plan Years beginning on or after January 1, 2002, Compensation in excess of $200,000 (or such
other amount provided in the
Code) shall be disregarded for all purposes other than for purposes of salary deferral elections
pursuant to Section 4.2. Such amount shall
be adjusted for increases in the cost-of-living in accordance with Code Section 401(a)(17)(B),
except that the dollar increase in effect on
January 1 of any calendar year shall be effective for the Plan Year beginning with or within such
calendar year. For any “determination
period” of less than twelve (12) months, the Compensation limit shall be an amount equal to the
Compensation limit for the calendar year
in which the “determination period” begins multiplied by the ratio obtained by dividing the number
of full months in the short
“determination period” by twelve (12). A “determination period” is not less than twelve (12)
months solely because a Participant’s
Compensation does not include Compensation paid during a “determination period” while the
Participant was not a Participant in the Plan
(or a component of the Plan).



3









 





     If any Employees are excluded from the Plan (or from any component of the Plan), then
Compensation for any such Employees who become eligible or cease to be eligible to participate in
the Plan (or in the component of the Plan) during a Plan Year shall only include Compensation
while such Employees are Eligible Employees of the Plan (or of such component of the Plan).



     For purposes of this Section, if the Plan is a plan described in Code Section 413(c) or
414(f) (a plan maintained by more than one Employer), the limitation applies separately with
respect to the Compensation of any Participant from each Employer maintaining the Plan.



     If, in connection with the adoption of any amendment, the definition of Compensation has
been modified, then, except as otherwise provided herein, for Plan Years prior to the Plan Year
which includes the adoption date of such amendment, Compensation means compensation determined
pursuant to the terms of the Plan then in effect.



     1.18 “Contract” or “Policy” means any life insurance policy, retirement income policy or annuity
contract (group or individual) issued
pursuant to the terms of the Plan. In the event of any conflict between the terms of this Plan and
the terms of any contract purchased
hereunder, the Plan provisions shall control.



     1.19 “Contribution Percentage Amounts” means the sum of any Matching Contributions which are made
pursuant to Section 4.1(b);
Qualified Matching Contributions (to the extent such Qualified Matching Contributions are not used
to satisfy the ADP Test) and Qualified
Nonelective Contributions (to the extent not used to satisfy the ADP Test), as well as any
contributions authorized by (and to the extent
prescribed by) Section 4.8(g). In addition, Contribution Percentage Amounts may include Elective
Deferrals, provided the ADP Test is met
before the Elective Deferrals are used in the ACP Test and continues to be met following the
exclusion of those Elective Deferrals that are
used to meet the ACP Test. However, Contribution Percentage Amounts shall not include Matching
Contributions that are forfeited either
to correct Excess Aggregate Contributions or due to Code Section 401(a)(4) and the Regulations
thereunder because the contributions to
which they relate are Excess Deferrals, Excess Contributions, or Excess Aggregate Contributions.



     1.20 “Custodian” means a person or entity that has custody of all or any portion of the Plan assets.



     1.21 “Designated Investment Alternative” means a specific investment identified by name by the
Employer (or such other Fiduciary
who has been given the authority to select investment options) as an available investment under
the Plan to which Plan assets may be
invested by the Trustee pursuant to the investment direction of a Participant.



     1.22 “Directed Account” means that portion of a Participant’s interest in the Plan with respect to
which the Participant has directed the
investment in accordance with the Participant Direction Procedures.



     1.23 “Directed Investment Option” means a Designated Investment Alternative and any other
investment permitted by the Plan and
the Participant Direction Procedures to which Plan assets may be invested by the Trustee pursuant
to the investment direction of a
Participant.



     1.24 “Disability” means a physical or mental condition of a Participant resulting from bodily
injury, disease, or mental disorder which
renders such Participant incapable of continuing usual and customary employment with the Employer.
The disability of a Participant shall
be determined by a licensed physician. The determination shall be applied uniformly to all Participants.



     1.25 “Early Retirement Date.” This Plan does not provide for a retirement date prior to Normal Retirement Date.



     1.26 “Earned Income” means with respect to a Self-Employed Individual, the net earnings from self-employment in the trade or
business with respect to which the Plan is established, for which the personal services of the
individual are a material income-producing
factor. Net earnings will be determined without regard to items not included in gross income and
the deductions allocable to such items.
Net earnings are reduced by contributions by the Self-Employed Individual to a qualified Plan to
the extent deductible under Code
Section 404. In addition, net earnings shall be determined with regard to the deduction allowed to
the Self-Employed Individual by Code
Section 164(f).



     If any combination of bonuses, commissions, tips, overtime, moving expenses, fringe
benefits, or any other element of compensation is excluded from Compensation for the purpose of
determining any contribution, then for the purpose of determining the amount of such contribution
on behalf of any Self-Employed Individual, such person’s Earned Income will be reduced in the
same proportion that the “includible compensation” of “common law participants” bears to the
“total compensation” of all “common law participants.”



     For purposes of the preceding paragraph, “common law participant” means a Participant who is
neither a Highly Compensated Employee nor a Self-Employed Individual, “includible compensation”
means the amount of Compensation taken into account in determining the amount of such contribution
for “common law participants,” and “total compensation” means the amount of Compensation that
would have been taken into account in determining such contribution for “common law participants”
if (1) no element of Compensation had been excluded in determining such contribution, and (2) all
of the following are included in Compensation: any amount which is contributed by the Employer at
the election of the Participant pursuant to a salary reduction agreement and which is not
includible in the gross income of the Participant by reason of Code Sections 125, 132(f)(4),
402(e)(3), 402(h)(1)(B), 403(b) or 457(b), and employee contributions described in Code Section
414(h)(2) that are treated as Employer contributions.



     However, to the extent that the amount of “includible compensation” for “common law
participants” includes any amount which is contributed by the Employer at the election of the
Participant pursuant to a salary reduction agreement and which is not includible in the



4









 




gross income of the Participant by reason of Code Sections 125, 132(f)(4), 402(e)(3),
402(h)(l)(B), 403(b) or 457(b), and employee contributions described in Code Section 414(h)(2)
that are treated as Employer contributions, then those amounts shall be added back to Earned
Income after making the adjustment described in the preceding
paragraph.



1.27 “Elective Deferral” means any Employer contributions made to the Plan at the election of the
Participant in lieu of cash
Compensation pursuant to Section 4.2. With respect to any taxable year, a Participant’s Elective
Deferrals is the sum of all employer
contributions made on behalf of such Participant pursuant to an election to defer under any
qualified cash or deferred arrangement
(“CODA”) described in Code Section 401(k), any salary reduction simplified employee pension
described in Code Section 408(k)(6), any
SIMPLE IRA plan described in Code Section 408(p) and any plan described under Code Section
501(c)(18), and any employer
contributions made on the behalf of a Participant for the purchase of an annuity contract under
Code Section 403(b) pursuant to a salary
reduction agreement. Elective Deferrals shall not include any deferrals properly distributed as
excess Annual Additions pursuant to
Section 4.10(a).



1.28 “Elective Deferral Account” means the separate account established and maintained by the Administrator for each Participant
with respect to the Participant’s total interest in the Plan resulting from Elective Deferrals.
Amounts in the Elective Deferral Account are
nonforfeitable when made and are subject to the distribution restrictions of Section 4.2(d).



1.29 “Eligible Employee” means any Employee, except as provided below, and except as provided in
any other particular provision for
the limited purposes of that provision (e.g., ADP test). The following Employees shall not be
eligible to participate in this Plan:





(a) Employees of Affiliated Employers, unless such Affiliated Employers have specifically
adopted this Plan in writing.




(b) An individual shall not be an Eligible Employee if such individual is not reported on the
payroll records of the Employer as a
common law employee. In particular, it is expressly intended that individuals not treated as
common law employees by the Employer
on its payroll records and out-sourced workers, are neither Employees nor Eligible Employees,
and are excluded from Plan
participation even if a court or administrative agency determines that such individuals are
common law employees and not
independent contractors. However, this paragraph shall not apply to partners or other
Self-Employed Individuals unless the Employer
treats them as independent contractors.




(c) Unless or until otherwise provided, Employees who became Employees as the result of a
“Code Section 410(b)(6)(C)
transaction” will not be Eligible Employees until the expiration of the transition period
beginning on the date of the transaction and
ending on the last day of the first Plan Year beginning after the date of the transaction. A
Code Section 410(b)(6)(C) transaction is an
asset or stock acquisition, merger, or similar transaction involving a change in the Employer
of the Employees of a trade or business
that is subject to the special rules set forth in Code Section 410(b)(6)(C).


1.30 “Employee” means any common law employee, Self-Employed Individual, Leased Employee or other
person to the extent that the
Code treats such an individual as an employee of the Employer for purposes of the Plan, such as
(for certain purposes) any person who is
employed by an Affiliated Employer.



1.31 “Employer” means Chevron Mining, Inc. and any successor which shall maintain this Plan; and any predecessor which has
maintained this Plan. The Employer is a corporation, with principal offices in the State of
Colorado. In addition, where appropriate, the
term Employer shall include any Participating Employer.



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





(a) The aggregate Contribution Percentage Amounts actually made on behalf of Participants who
are Highly Compensated
Employees for such Plan Year and taken into account in computing the numerator of the ACR,
over




(b) The maximum Contribution Percentage Amounts permitted by the ACP Test of Section 4.7(a)
(determined by hypothetically
reducing contributions made on behalf of Participants who are Highly Compensated Employees in
order of their ACRs beginning with
the highest of such ACRs).



     Such determination shall be made after first taking into account corrections of any Excess
Deferrals pursuant to Section 4.2 and then taking into account any adjustments of any Excess
Contributions pursuant to Section 4.6.


1.33 “Excess Contributions” means, with respect to a Plan Year, the excess of Elective Deferrals
made on behalf of Participants who
are Highly Compensated Employees for the Plan Year over the maximum amount of such contributions
permitted under Section 4.5(a)
(determined by hypothetically reducing contributions made on behalf of Participants who are
Highly Compensated Employees in order of
the ADRs beginning with the highest of such ADRs). Excess Contributions shall be treated as an
Annual Addition pursuant to Section 1.12.



1.34 “Excess Deferrals” shall mean those Elective Deferrals of a Participant that either (1) are
made during the Participant’s taxable
year and which exceed the dollar limitation under Code Section 402(g) (including, if applicable,
the dollar limitation on Catch-Up
Contributions defined in Code Section 414(v)) for such year; or (2) are made during a calendar
year and exceed the dollar limitation under
Code Section 402(g) (including, if applicable, the dollar limitation on Catch-Up Contributions
defined in Code Section 414(v)) for the
 Participant’s taxable year beginning in such calendar year, counting only Elective Deferrals
made under this Plan and any other plan, contract or arrangement maintained by the Employer.




5









 








     1.35 “Fiduciary” means any person who (a) exercises any discretionary authority or discretionary
control respecting management of the
Plan or exercises any authority or control respecting management or disposition of its assets, (b)
renders investment advice for a fee or
other compensation, direct or indirect, with respect to any monies or other property of the Plan
or has any authority or responsibility to do
so, or (c) has any discretionary authority or discretionary responsibility in the administration of the Plan.



     1.36 “Fiscal Year” means the Employer’s accounting year of 12 months commencing on January 1st of each year and ending the
following December 31st.



     1.37 “Forfeiture” means that portion of a Participant’s Account that is not Vested, and which
becomes a Forfeiture at the time described below:



     The earlier of:




(a) the distribution of the entire Vested portion of the Participant’s Account of a Participant
who has severed employment with the
Employer. For purposes of this provision, if the Participant has a Vested benefit of zero
(determined without regard to the Participant’s
Qualified Voluntary Employee Contribution Account or Rollover Account), then such Participant
shall be deemed to have received a
distribution of such Vested benefit as of the date on which the severance of employment occurs,
or




(b) the last day of the Plan Year in which a Participant who has severed employment with the
Employer incurs five (5) consecutive
1-Year Breaks in Service.




In addition, the term “Forfeiture” shall also include amounts deemed to be Forfeitures pursuant
to any other provisions of this Plan.




     Regardless of the preceding provisions, if a Participant is eligible to share in the
allocation of Forfeitures in the year in which the Forfeiture would otherwise occur, then the
Forfeiture will not occur until the end of the subsequent Plan Year.




For purposes of this Plan, any Forfeiture will be disposed of in the Plan Year in which the Forfeiture arises.


1.38 “Former Employee” means an Employee who had a severance from employment with the Employer or an Affiliated Employer.



1.39 “415 Compensation” with respect to any Participant means such Participant’s wages, salaries,
fees for professional services and
other amounts received (without regard to whether or not an amount is paid in cash) for personal
services actually rendered in the course of
employment with the Employer maintaining the Plan to the extent that the amounts are includible in
gross income (including, but not
limited to, commissions paid salesmen, compensation for services on the basis of a percentage of
profits, commissions on insurance
premiums, tips, bonuses, fringe benefits, and reimbursements or other expense allowances under a
nonaccountable plan as described in
Regulation 1.62-2(c)) for a Plan Year. 415 Compensation for any Self-Employed Individual shall be
equal to such individual’s Earned
Income.




     415 Compensation shall exclude (a)(l) contributions made by the Employer to a plan of
deferred compensation to the extent that, the contributions are not includible in the gross
income of the Participant for the taxable year in which contributed, (2) Employer contributions
made on behalf of an Employee to a simplified employee pension plan described in Code Section
408(k) to the extent such contributions are excludable from the Employee’s gross income, (3) any
distributions from a plan of deferred compensation; (b) amounts realized from the exercise of a
non-qualified stock option, or when restricted stock (or property) held by an Employee either
becomes freely transferable or is no longer subject to a substantial risk of forfeiture; (c)
amounts realized from the sale, exchange or other disposition of stock acquired under a qualified
stock option; and (d) other amounts which receive special tax benefits, or contributions made by
the Employer (whether or not under a salary reduction agreement) towards the purchase of any
annuity contract described in Code Section 403(b) (whether or not the contributions are actually
excludable from the gross income of the Employee).



     Notwithstanding the above, the determination of 415 Compensation shall be made by:




(a) including any Elective Deferrals, and any amount which is contributed by the Employer at
the election of the Participant pursuant
to a salary reduction agreement and which is not includible in the gross income of the
Participant by reason of Code Sections 125,
132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b) or 457(b), and employee contributions described in
Code Section 414(h)(2) that are treated
as Employer contributions. For this purpose, effective January 1, 1998, amounts not includible
in gross income under Code
Section 125 shall be deemed to include any amounts not available to a Participant in cash in
lieu of group health coverage because the
Participant is unable to certify that the Participant has other health coverage, provided the
Employer does not request or collect
information regarding the Participant’s other health coverage as part of the enrollment process
for the health plan.




(b) effective for Limitation Years and Plan Years beginning in and after 2006, including
Post-Severance Compensation.


1.40 “414(s) Compensation” means 415 Compensation or any other definition of compensation that
satisfies the nondiscrimination
requirements of Code Section 414(s) and the Regulations thereunder. The period for determining
414(s) Compensation must be either the
Plan Year or the calendar year ending with or within the Plan Year. An Employer may further limit
the period taken into account to that
part of the Plan Year or calendar year in which an Employee was a Participant in the component of
the Plan being tested. The period used
to determine 414(s) Compensation must be applied uniformly to all Participants for the Plan
Year.




6









 




1.41
“Highly Compensated Employee” means an Employee described in Code Section 414(q) and the
Regulations thereunder, and
generally means any Employee who:





(a) was a “five percent owner” as defined in Section 1.46(b) at any time during the
“determination year” or the “look-back year”; or




(b) for the “look-back year” had 415 Compensation from the Employer in excess of $80,000 and was
in the Top-Paid Group for the
“look-back year.” The $80,000 amount is adjusted at the same time and in the same manner as
under Code Section 415(d), except that
the base period is the calendar quarter ending September 30, 1996.



     The “determination year” means the Plan Year for which testing is being performed, and the
“look-back year” means the immediately preceding twelve (12) month period.



     In determining who is a Highly Compensated Employee, Employees who are nonresident aliens and
who received no earned income (within the meaning of Code Section 911(d)(2)) from the Employer
constituting United States source income within the meaning of Code Section 861(a)(3) shall not be
treated as Employees. If an Employee who is a nonresident alien has U.S. source income, that
Employee is treated as satisfying this definition if all of such Employee’s U.S. source income
from the Employer is exempt from U.S. income tax under an applicable income tax treaty.
Additionally, all Affiliated Employers shall be taken into account as a single employer and Leased
Employees within the meaning of Code Sections 414(n)(2) and 414(o)(2) shall be considered
Employees unless such Leased Employees are covered by a plan described in Code Section 414(n)(5)
and are not covered in any qualified plan maintained by the Employer. The exclusion of Leased
Employees for this purpose shall be applied on a uniform and consistent basis for all of the
Employer’s retirement plans. Highly Compensated Former Employees shall be treated as Highly
Compensated Employees without regard to whether they performed services during the “determination
year.”


1.42 “Highly Compensated Participant” means, for a particular Plan Year, a Participant who meets
the definition of a Highly
Compensated Employee in effect for that Plan Year.



1.43 “Hour of Service” means (1) each hour for which an Employee is directly or indirectly
compensated or entitled to Compensation
by the Employer for the performance of duties (these hours will be credited to the Employee for the
computation period in which the duties
are performed); (2) each hour for which an Employee is directly or indirectly compensated or
entitled to compensation by the Employer
(irrespective of whether the employment relationship has terminated) for reasons other than
performance of duties (such as vacation,
holidays, sickness, jury duty, disability, lay-off, military duty or leave of absence) during the
applicable computation period (these hours
will be calculated and credited pursuant to Department of Labor regulation 2530.200b-2, which is
incorporated herein by reference);
(3) each hour for which back pay is awarded or agreed to by the Employer without regard to
mitigation of damages (these hours will be
credited to the Employee for the computation period or periods to which the award or agreement
pertains rather than the computation
period in which the award, agreement or payment is made). The same Hours of Service shall not be
credited both under (1) or (2), as the
case may be, and under (3).




     Notwithstanding (2) above, (i) no more than 501 Hours of Service are required to be credited
to an Employee on account of any single continuous period during which the Employee performs no
duties (whether or not such period occurs in a single computation period); (ii) an hour for which
an Employee is directly or indirectly paid, or entitled to payment, on account of a period during
which no duties are performed is not required to be credited to the Employee if such payment is
made or due under a plan maintained solely for the purpose of complying with applicable worker’s
compensation, or unemployment compensation or disability insurance laws; and (iii) Hours of Service
are not required to be credited for a payment which solely reimburses an Employee for medical or
medically related expenses incurred by the Employee.



     For purposes of (2) above, 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.



     Each Employee shall be credited with such Employee’s actual Hours of Service.



     For purposes of this Section, Hours of Service will be credited for employment with any
Affiliated Employers. The provisions of Department of Labor regulations 2530.200b-2(b) and (c) are
incorporated herein by reference.


1.44 “Income” means the gains or losses for the “applicable computation period” allocable to an
“excess amount”, which amount shall
be determined and allocated, at the discretion of the Administrator, using any of the methods set
forth below:





(a) Method
of allocating Income. The Administrator may use any reasonable method for computing
the Income allocable to an “excess amount” for the “applicable computation period,” provided
that the method is used consistently for all Participants and for all corrective distributions
under the Plan for the “applicable computation period,” and is used by the Plan for allocating
earnings to a Participant’s “specific account(s).”



7









 






(b) Alternative method of allocating Income. The Administrator may allocate Income to an
“excess amount” for the “applicable
computation period” by multiplying the earnings for the “applicable computation period”
allocable to the “Employer contributions”
taken into account under the test or limitation giving rise to such “excess amount” by a
fraction, the numerator of which is the “excess
amount” for the Employee for the “applicable computation period,” and the denominator of which
is the sum of:




(1) The “specific account(s)” balance(s) taken into account under the test or limitation
giving rise to such “excess amount” as of
the beginning of the “applicable computation period,” and




(2) Any additional amount of such “Employer contributions” made for the “applicable
computation period” to the “specific
account(s).”




(c) For purposes of calculating the Income attributable to Excess Deferrals of Section
4.2(g), the terms “applicable computation
period”, “Employer contributions”, “excess amount”, and “specific account(s)” will have the
following substitutions:




(1) The taxable year of the Participant shall be substituted for the “applicable
computation period”;




(2) Elective Deferrals shall be substituted for “Employer contributions”;




(3) Excess Deferrals shall be substituted for “excess amount”; and




(4) The
Elective Deferral Account shall be substituted for the “specific account(s).”




(d) For purposes of calculating the Income attributable to Excess Contributions of Section
4.6(b), the terms “applicable computation
period”, “Employer contributions”, “excess amount”, and “specific account(s)” will have the
following substitutions:




(1) The Plan Year shall be substituted for the “applicable computation period”;




(2) Elective Deferrals, and other contributions included in determining the ADR under
Section 1.9, shall be substituted for
“Employer contributions”;




(3) Excess Contributions shall be substituted for “excess amount”;




(4) The Elective Deferral Account, and, if included in the determination of the ADR under
Section 1.9, the Qualified Matching
Contribution and/or the Qualified Nonelective Contribution Account(s), shall be
substituted for the “specific account(s).”




(e) For purposes of calculating the Income attributable to Excess Aggregate Contributions of
Section 4.8(b), the terms “applicable
computation period”, “Employer contributions”, “excess amount”, and “specific account(s)” will
have the following substitutions:




(1) The Plan Year shall be substituted for the “applicable computation period”;




(2) Any Matching Contributions which are made pursuant to Section 4.1(b); Qualified
Matching Contributions (to the extent
such Qualified Matching Contributions are not used to satisfy the ADP Test) and Qualified
Nonelective Contributions (to the
extent not used to satisfy the ADP Test) shall be substituted for “Employer contributions.”
Elective Deferrals may be included in
the substitution listed above, provided the ADP Test is met before the Elective Deferrals
are used in the ACP Test and continues
to be met following the exclusion of those Elective Deferrals that are used to meet the ACP
Test. However, Matching
Contributions that are forfeited either to correct Excess Aggregate Contributions or due to
Code Section 401(a)(4) and the
Regulations thereunder because the contributions to which they relate are Excess Deferrals,
Excess Contributions, or Excess
Aggregate Contributions shall not be included in the substitution listed above.




(3) Excess Aggregate Contributions shall be substituted for “excess amount”;




(4) The Matching Contribution Account, Qualified Matching Contribution Account and
Qualified Nonelective Contribution
Account shall be substituted for the “specific account(s).”




(f) With respect to Excess Contributions and Excess Aggregate Contributions, effective
beginning with the first Plan Year beginning
in 2006, Income for the period between the end of the Plan Year and the date of the
distribution (the “gap period”) is required to be
distributed. A Plan will not fail to use a reasonable method for computing the Income that is
allocable to Excess Contributions and
Excess Aggregate Contributions merely because the Income allocable to Excess Contributions and
Excess Aggregate Contributions is
determined on a date that is no more than 7 days before the distribution. Income for the “gap
period” shall be calculated by using any
of the methods set forth below:




(1) Safe harbor method of allocating “gap period” income. The Administrator may use the safe
harbor method in this paragraph
to determine the Income on Excess Contributions and Excess Aggregate Contributions for the “gap
period.” Under this safe
harbor method, Income on Excess Contributions and Excess Aggregate Contributions for the “gap
period” is equal to 10% of the
Income allocable to Excess Contributions and Excess Aggregate Contributions for the Plan Year that
would be determined under
paragraph (b) above (with the appropriate substitutions of paragraph (d) and paragraph (e)),
multiplied by the number of calendar
months that have elapsed since the end of the Plan Year. For purposes of calculating the
number of calendar months that have



8









 






elapsed under this safe harbor method, a corrective distribution that is made on or before
the fifteenth day of a month is treated as made on the last day of the preceding month and
a distribution made after the fifteenth day of a month is treated as made on the last day
of the month.




(2) Alternative method for allocating Plan Year and “gap period” income. The Administrator
may determine the allocable Income for the aggregate of the Plan Year and the “gap period”
by applying the alternative method provided by paragraph (b) above with respect to the
entire period represented by the Plan Year and the “gap period”, rather than just the Plan
Year.


1.45 “Investment Manager” means any Fiduciary described in Act Section 3(38).



1.46 “Key Employee” means, for Plan Years beginning after December 31, 2001, an Employee as
defined in Code Section 416(i) and
the Regulations thereunder. Generally, any Employee or Former Employee (as well as each of the
Employee’s or Former Employee’s
Beneficiaries) is considered a Key Employee if the Employee or Former Employee, at any time during
the Plan Year that contains the
“determination date” is described in one of the following categories:





(a) an officer of the Employer (as that term is defined within the meaning of the Regulations
under Code Section 416) having annual
415 Compensation greater than $130,000 (as adjusted under Code Section 416(i)(1) for Plan Years
beginning after December 31,
2002).




(b) a “five percent owner” of the Employer. “Five percent owner” means any person who owns (or
is considered as owning within
the meaning of Code Section 318) more than five percent (5%) of the outstanding stock of the
Employer or stock possessing more
than five percent (5%) of the total combined voting power of all stock of the Employer or, in
the case of an unincorporated business,
any person who owns more than five percent (5%) of the capital or profits interest in the
Employer. In determining percentage
ownership hereunder, employers that would otherwise be aggregated under Code Sections 414(b),
(c), (m) and (o) shall be treated as
separate employers.




(c) a “one percent owner” of the Employer having an annual 415 Compensation from the Employer
of more than $150,000. “One
percent owner” means any person who owns (or is considered as owning within the meaning of Code
Section 318) more than one
percent (1%) of the outstanding stock of the Employer or stock possessing more than one percent
(1%) of the total combined voting
power of all stock of the Employer or, in the case of an unincorporated business, any person
who owns more than one percent (1%) of
the capital or profits interest in the Employer. In determining percentage ownership hereunder,
employers that would otherwise be
aggregated under Code Sections 414(b), (c), (m) and (o) shall be treated as separate employers.
However, in determining whether an
individual has 415 Compensation of more than $150,000, 415 Compensation from each employer
required to be aggregated under
Code Sections 414(b), (c), (m) and (o) shall be taken into account.



     In determining percentage ownership hereunder, employers that would otherwise be aggregated
under Code Sections 414(b), (c), (m) and (o) shall be treated as separate employers. In
determining whether an individual has 415 Compensation of more than $150,000, 415 Compensation
from each employer required to be aggregated under Code Sections 414(b), (c), (m) and (o) shall
be taken into account.


1.47 “Late Retirement Date” means the first day of the month coinciding with or next following a
Participant’s actual Retirement Date
after having reached Normal Retirement Date.



1.48 “Leased Employee” means any person (other than an Employee of the recipient Employer) who, pursuant to an agreement
between the recipient Employer and any other person or entity (“leasing organization”), has
performed services for the recipient (or for the
recipient and related persons determined in accordance with Code Section 414(n)(6)) on a
substantially full time basis for a period of at
least one year, and such services are performed under primary direction or control by the
recipient Employer. Contributions or benefits
provided a Leased Employee by the leasing organization which are attributable to services
performed for the recipient Employer shall be
treated as provided by the recipient Employer. Furthermore, Compensation for a Leased Employee
shall only include Compensation from
the leasing organization that is attributable to services performed for the recipient Employer.




     A Leased Employee shall not be considered an employee of the recipient Employer if: (a) such
employee is covered by a money purchase pension plan providing: (1) a non-integrated employer
contribution rate of at least ten percent (10%) of compensation, as defined in Code Section
415(c)(3), (2) immediate participation, and (3) full and immediate vesting; and (b) leased
employees do not constitute more than twenty percent (20%) of the recipient Employer’s nonhighly
compensated work force.


1.49 “Limitation Year” means the Plan Year. However, the Employer may elect a different Limitation
Year by amending the Plan. All
qualified plans maintained by the Employer must use the same Limitation Year. Furthermore, unless
there is a change to a new Limitation
Year, the Limitation Year will be a twelve (12) consecutive month period. In the case of an
initial Limitation Year, the Limitation Year will
be the twelve (12) consecutive month period ending on the last day of the initial Plan Year. If
the Limitation Year is amended to a different
twelve (12) consecutive month period, the new Limitation Year must begin on a date within the
Limitation Year in which the amendment is
made.



1.50 “Matching Contribution” means any Employer contribution (including a contribution made at the Employer’s discretion) to the
Plan on account of a Participant’s Elective Deferrals.



1.51 “Matching Contribution Account” means the separate account established and
maintained by the Administrator for each
Participant with respect to the Participant’s total interest in the Plan resulting from Matching
Contributions. However, if Matching




9









 




Contributions are Qualified Matching Contributions, then such Qualified Matching Contributions
shall be allocated to the Qualified  Matching Contribution Account.



1.52 “Nonhighly Compensated Employee/Participant” means any Employee who is not a Highly
Compensated Employee. However,
for purposes of Section 4.5(a) and Section 4.7(a), if the prior year testing method is used, a
Nonhighly Compensated Employee shall be
determined using the definition of Highly Compensated Employee in effect for the preceding Plan
Year. A Nonhighly Compensated
Participant is a Participant who is not a Highly Compensated Employee.




     A Participant is a Nonhighly Compensated Participant for a particular Plan Year if such
Participant does not meet the definition of a Highly Compensated Employee in effect for that
Plan Year.


1.53 “Non-Key Employee” means any Employee or Former Employee (and such Employee’s or Former
Employee’s Beneficiaries) who
is not a Key Employee.



1.54 “Normal Retirement Age” means the Participant’s 62nd birthday. A Participant shall become fully Vested in the Participant’s
Account upon attaining Normal Retirement Age (if the Participant is still employed by the Employer
on or after that date).



1.55 “Normal Retirement Date” means the first day of the month coinciding with or next following
the Participant’s Normal
Retirement Age.



1.56 “1-Year Break in Service” means the applicable computation period during which an Employee
has not completed more than 500
Hours of Service with the Employer. Further, solely for the purpose of determining whether a
Participant has incurred a 1-Year Break in
Service, Hours of Service shall be recognized for “authorized leaves of absence” and “maternity
and paternity leaves of absence.” Years of
Service and 1-Year Breaks in Service shall be measured on the same
computation period.




     For purposes of this definition, “authorized leave of absence” means an unpaid, temporary
cessation from active employment with the Employer pursuant to an established nondiscriminatory
policy, whether occasioned by illness, military service, or any other reason.



     Furthermore, for purposes of this definition, “maternity and paternity leave of absence”
means an absence from work for any period by reason of the Employee’s pregnancy, birth of the
Employee’s child, placement of a child with the Employee in connection with the adoption of such
child, or any absence for the purpose of caring for such child for a period immediately
following such birth or placement. For this purpose, Hours of Service shall be credited for the
computation period in which the absence from work begins, only if credit therefore is necessary
to prevent the Employee from incurring a 1-Year Break in Service, or, in any other case, in the
immediately following computation period. The Hours of Service credited for “maternity and
paternity leaves of absence” shall be those which would normally have been credited but for such
absence, or, in any case in which the Administrator is unable to determine such hours normally
credited, eight (8) Hours of Service per day. The total Hours of Service required to be credited
for “maternity and paternity leaves of absence” shall not exceed the number of Hours of Service
needed to prevent the Employee from incurring a 1-Year Break in Service.


1.57
“Owner-Employee” means a sole proprietor who owns the entire interest in the Employer or a
partner (or member in the case of a
limited liability company treated as a partnership or sole proprietorship for federal income tax
purposes) who owns more than 10% of
either the capital interest or the profits interest in the Employer and who receives income for
personal services from the Employer.



1.58 “Participant” means any Employee or Former Employee who has satisfied the requirements of
Sections 3.1 and 3.2 and entered
the Plan and is eligible to accrue benefits under the Plan. In addition, the term “Participant”
also includes any individual who was a
Participant (as defined in the preceding sentence) and who must continue to be taken into account
under a particular provision of the Plan
(e.g., because the Participant has an Account Balance in the Plan).



1.59 “Participant Direction Procedures” means such instructions, guidelines or policies, the terms of which are incorporated herein, as
shall be established pursuant to Section 4.12 and observed by the Administrator and applied and
provided to Participants who have
Participant Directed Accounts.



1.60 “Participating Employer” means an Employer who adopts the Plan pursuant to Section 11.1.



1.61 “Plan” means this instrument, including all amendments thereto.



1.62 “Plan Year” means the Plan’s accounting year of twelve (12) months commencing on January 1st of each year and ending the
following December 31st.



1.63 “Post-Severance Compensation” means payments made within 2 1/2 months after severance from employment (within the
meaning of Code Section 401(k)(2)(B)(i)(I)) if they are payments that, absent a severance from
employment, would have been paid to the
Employee while the Employee continued in employment with the Employer and are regular compensation
for services during the
Employee’s regular working hours, compensation for services outside the Employee’s regular working
hours (such as overtime or shift
differential), commissions, bonuses, or other similar compensation, and payments for accrued bona
fide sick, vacation or other leave, but
only if the Employee would have been able to use the leave if employment had continued. Any
payments not described above are not considered compensation if paid after severance from
employment, even if they are paid within 2 1/2 months following severance from employment,
except for payments to an individual who does not currently perform services for the Employer by
reason of qualified




10









 







military service (within the meaning of Code Section 414(u)(1)) to the extent these payments do
not exceed the amounts the individual would have received if the individual had continued to
perform services for the Employer rather than entering qualified military service.



1.64 “Qualified Matching Contribution” means any Employer contribution (including a contribution
made at the Employer’s
discretion) to the Plan on account of a Participant’s Elective Deferrals that are designated as
such pursuant to Sections 4.6 and 4.8.



1.65 “Qualified Matching Contribution Account” means the separate account established and
maintained by the Administrator for
each Participant with respect to the Participant’s total interest in the Plan resulting from
Qualified Matching Contributions. Amounts in the
Qualified Matching Contribution Account are nonforfeitable when made and are subject to the
distribution restrictions of Section 4.2(d).



1.66 “Qualified Nonelective Contribution” means any Employer contributions to the Plan that are
designated as such pursuant to
Sections 4.1(c), 4.6 and 4.8 or any other provision of the Plan. Qualified Nonelective
Contributions may be used to satisfy the ADP Test or
the ACP Test. All such contributions shall be allocated to the Qualified Nonelective Contribution
Account, and shall be fully vested and
subject to the restrictions on distributions from that Account.



1.67 “Qualified Nonelective Contribution Account” means the separate account established and
maintained by the Administrator for
each Participant with respect to the Participant’s total interest in the Plan resulting from
Qualified Nonelective Contributions. Amounts in
the Qualified Nonelective Contribution Account are nonforfeitable when made and are subject to
the distribution restrictions of
Section 4.2(d).



1.68 “Regulation” means the Income Tax Regulations as promulgated by the Secretary of the
Treasury or a delegate of the Secretary of
the Treasury, and as amended from time to time.



1.69 “Retirement Date” means the date as of which a Participant retires for reasons other than Disability, whether such retirement
occurs on a Participant’s Normal Retirement Date or Late Retirement Date.



1.70 “Self-Employed Individual” means an individual, other than an independent contractor, who
has Earned Income for the taxable
year from the trade or business for which the Plan is established, and, also, an individual who
would have had Earned Income but for the
fact that the trade or business had no net profits for the taxable year. A Self-Employed
Individual shall be treated as an Employee.



1.71 “Shareholder-Employee” means a Participant who owns more than five percent (5%) of the
Employer’s outstanding capital stock
during any year in which the Employer elected to be taxed as a Small Business Corporation under
the applicable Code Section.



1.72 “Terminated Participant” means a person who has been a Participant, but whose employment has
been terminated other than by
death, Disability or retirement.



1.73 “Top-Heavy Plan” means a plan described in Section 9.1(a).



1.74 “Top-Heavy Plan Year” means a Plan Year during which the Plan is a Top-Heavy Plan.



1.75 “Top-Paid Group” means the top-paid group as determined pursuant to Code Section 414(q) and
the Regulations thereunder and
generally means the top twenty percent (20%) of Employees who performed services for the Employer
during the applicable year, ranked
according to the amount of 415 Compensation received from the Employer during such year. All
Affiliated Employers shall be taken into
account as a single employer, and Leased Employees shall be treated as Employees if required
pursuant to Code Section 414(n) or (o).
Employees who are nonresident aliens who received no earned income (within the meaning of Code
Section 911(d)(2)) from the Employer
constituting United States source income within the meaning of Code Section 861(a)(3) shall not
be treated as Employees. Furthermore, for
the purpose of determining the number of Employees in any year, the following additional
Employees may also be excluded, however,
such Employees shall still be considered for the purpose of identifying the particular Employees
in the Top-Paid Group:





	 	(a)	 	Employees with less than six (6) months of service;
	 
	 	(b)	 	Employees who normally work less than 17 1/2 hours per week;
	 
	 	(c)	 	Employees who normally work less than six (6) months during a year; and
	 
	 	(d)	 	Employees who have not yet attained age twenty-one (21).





     In addition, if ninety percent (90%) or more of the Employees of the Employer are covered
under agreements the Secretary of Labor finds to be collective bargaining agreements between
Employee representatives and the Employer, and the Plan covers only Employees who are not
covered under such agreements, then Employees covered by such agreements shall be excluded from
both the total number of active Employees as well as from the identification of particular
Employees in the Top-Paid Group.



     The foregoing exclusions set forth in this Section shall be applied on a uniform and
consistent basis for all purposes for which the Code Section 414(q) definition is applicable.
Furthermore, in applying such exclusions, the Employer may substitute any lesser service,  hours
or age.



11









 




1.76 “Total Vested Benefit” means the total Participant’s Vested Account balances derived from
Employer and Employee
contributions, including rollover contributions, whether Vested before or upon death,



1.77 “Transfer Account” means the separate account established and maintained by the
Administrator for each Participant with respect
to the Participant’s total interest in the Plan resulting from amounts transferred to this Plan
from a direct plan-to-plan transfer in accordance
with Section 4.11. To the extent that the Plan is a direct or indirect transferee of a defined
benefit or defined contribution pension plan, then
the funds transferred to this Plan from such other plan shall be treated as funds that are
subject to a life annuity form of payment as well as
the survivor annuity requirements of Code Sections 401(a)(11) and 417 (and are part of the
Participant’s Pre-Retirement Survivor Annuity
Account). The preceding sentence does not apply to amounts rolled over into a Participant’s
Rollover Account, even if from a pension plan.



1.78 “Trustee” means the person or entity named as trustee herein or in any separate trust
forming a part of this Plan, and any
successors, effective upon the written acceptance of such person or entity to serve as Trustee.



1.79 “Trust Fund” means the assets of the Plan and Trust as the same shall exist from time to time.



1.80 “Valuation Date” means the Anniversary Date and may include any other date or dates deemed necessary or appropriate by the
Administrator for the valuation of the Participants’ Accounts during the Plan Year, which may
include any day that the Trustee, any transfer
agent appointed by the Trustee or the Employer or any stock exchange used by such agent, is open
for business. Nothing in this Plan
requires or implies a uniform Valuation Date for all Accounts; thus certain valuation provisions
that apply to an Account that is not valued
on each business day will have no application, in operation, to an Account that is valued on each business day.



1.81 “Vested” means the nonforfeitable portion of any account maintained on behalf of a Participant.



1.82 “Year of Service” means the computation period of twelve (12) consecutive months, herein set
forth, during which an Employee
has at least 1,000 Hours of Service.




     For vesting purposes, the computation periods shall be the Plan Year, including periods
prior to the Effective Date of the Plan. 

     The computation period shall be the Plan Year if
not otherwise set forth herein.



     Notwithstanding the foregoing, for any short Plan Year, the determination of whether an
Employee has completed a Year of Service shall be made in accordance with Department of Labor
regulation 2530.203-2(c).



     Years of Service with any Affiliated Employer shall be recognized.



     In the event the method of crediting service is amended from the elapsed-time method to the
hour-of-service method, an Employee will receive credit for Years of Service equal to:




(a) The number of Years of Service equal to the number of 1 -year Periods of Service credited
to the Employee as of the date of the
amendment; and




(b) In the computation period which includes the date of the amendment, a number of Hours of
Service (using the Hours of Service
equivalency method elected in the Plan) to any fractional part of a year credited to the
Employee under this Section as of the date of
the amendment.



ARTICLE II

ADMINISTRATION



2.1 POWERS AND RESPONSIBILITIES OF THE EMPLOYER





(a) Appointment of Trustee and Administrator. In addition to the general powers and
responsibilities otherwise provided for in
this Plan, the Employer shall be empowered to appoint and remove the Trustee and the
Administrator from time to time as it deems
necessary for the proper administration of the Plan to ensure that the Plan is being operated
for the exclusive benefit of the Participants
and their Beneficiaries in accordance with the terms of the Act, the Plan and the Code. The
Employer may appoint counsel, specialists,
advisers, agents (including any nonfiduciary agent) and other persons as the Employer deems
necessary or desirable in connection
with the exercise of its fiduciary duties under this Plan. The Employer may compensate such
agents or advisers from the assets of the
Plan as fiduciary expenses (but not including any business (settlor) expenses of the
Employer), to the extent not paid by the Employer.




(b) Appointment
of Investment Manager. The Employer may appoint, at its option, an Investment
Manager (qualified under the
Investment Company Act of 1940 as amended), investment adviser, or other agent to provide
investment direction to the Trustee with
respect to any or all of the Plan assets. Such appointment shall be given by the Employer in
writing in a form acceptable to the Trustee
and shall specifically identify the Plan assets with respect to which the Investment Manager
or other agent shall have authority to
direct the investment.




(c) Funding policy and method. The Employer shall establish a funding policy and method,
i.e., it shall determine whether the Plan
has a short run need for liquidity (e.g., to pay benefits) or whether liquidity is a long run
goal and investment growth (and stability of
same) is a more current need, or shall appoint a qualified person to do so. The Employer or its
delegate shall communicate such needs



12









 






and goals to the Trustee, who shall coordinate such Plan needs with its investment policy.
The communication of such a funding policy and method shall not, however, constitute a
directive to the Trustee as to the investment of the Trust Funds. Such funding policy and
method shall be consistent with the objectives of this Plan and with the requirements of
Title I of the Act.




(d) Review of fiduciary performance. The Employer shall periodically review the
performance of any Fiduciary or other person to whom duties have been delegated or
allocated by it under the provisions of this Plan or pursuant to procedures established
hereunder. This requirement may be satisfied by formal periodic review by the Employer or
by a qualified person specifically designated by the Employer, through day-to-day conduct
and evaluation, or through other appropriate ways.


2.2 DESIGNATION OF ADMINISTRATIVE AUTHORITY




     The Employer shall be the Administrator. The Employer may appoint any person, including,
but not limited to, the Employees of the Employer, to perform the duties of the Administrator.
Any person so appointed shall signify acceptance by filing written acceptance with the
Employer. Upon the resignation or removal of any individual performing the duties of the
Administrator, the Employer may designate a successor.


2.3 ALLOCATION AND DELEGATION OF RESPONSIBILITIES




     If more than one person is serving as Administrator, the responsibilities of each
Administrator may be specified by the Employer and accepted in writing by each Administrator.
In the event that no such delegation is made by the Employer, the Administrators may allocate
the responsibilities among themselves, in which event the Administrators shall notify the
Employer and the Trustee in writing of such action and specify the responsibilities of each
Administrator. The Trustee thereafter shall accept and rely upon any documents executed by the
appropriate Administrator until such time as the Employer or the Administrators file with the
Trustee a written revocation of such designation.


2.4 POWERS AND DUTIES OF THE ADMINISTRATOR




     The primary responsibility of the Administrator is to administer the Plan for the
exclusive benefit of the Participants and their Beneficiaries, subject to the specific terms of
the Plan. The Administrator shall administer the Plan in accordance with its terms and shall
have the power and discretion to construe the terms of the Plan and to determine all questions
arising in connection with the administration, interpretation, and
application of the Plan.
Benefits under this Plan will be paid only if the Administrator decides in its discretion that
the applicant is entitled to them. Any such determination by the Administrator shall be
conclusive and binding upon all persons. The Administrator may establish procedures, correct
any defect, supply any information, or reconcile any inconsistency in such manner and to such
extent as shall be deemed necessary or advisable to carry out the purpose of the Plan;
provided, however, that any procedure, discretionary act, interpretation or construction shall
be done in a nondiscriminatory manner based upon uniform principles consistently applied and
shall be consistent with the intent that the Plan shall continue to be deemed a qualified plan
under the terms of Code Section 401(a), and shall comply with the terms of the Act and all
regulations issued pursuant thereto. The Administrator shall have all powers necessary or
appropriate to accomplish the Administrator’s duties under the Plan.



     The Administrator shall be charged with the duties of the general administration of the
Plan as set forth under the terms of the Plan, including, but not limited to, the following:




(a) the discretion to determine all questions relating to the eligibility of Employees to
participate or remain a Participant hereunder
and to receive benefits under the Plan;




(b) the authority to review and settle all claims against the Plan, including claims where
the settlement amount cannot be calculated
or is not calculated in accordance with the Plan’s benefit formula. This authority
specifically permits the Administrator to settle
disputed claims for benefits and any other disputed claims made against the Plan;




(c) to compute, certify, and direct the Trustee with respect to the amount and the kind of
benefits to which any Participant shall be
entitled hereunder;




(d) to authorize and direct the Trustee with respect to all discretionary or otherwise
directed disbursements from the Trust;




(e) to maintain all necessary records for the administration of the Plan;




(f) to interpret the provisions of the Plan and to make and publish such rules for
regulation of the Plan as are consistent with the
terms hereof;




(g) to determine the size and type of any Contract to be purchased from any insurer, and to
designate the insurer from which such
Contract shall be purchased;




(h) to compute and certify to the Employer and to the Trustee from time to time the sums of
money necessary or desirable to be
contributed to the Plan;



13









 






(i) to consult with the Employer and the Trustee regarding the short and long-term liquidity
needs of the Plan in order that the Trustee can exercise any investment discretion (if the
Trustee has such discretion) in a manner designed to accomplish specific objectives;




(j) to prepare and implement a procedure to notify Eligible Employees that they may elect to
have a portion of their Compensation deferred or paid to them in cash;




(k) to act as the named Fiduciary responsible for communications with Participants as needed
to maintain Plan compliance with Act Section 404(c), including, but not limited to, the
receipt and transmitting of Participant’s directions as to the investment of their account(s)
under the Plan and the formulation of policies, rules, and procedures pursuant to which
Participants may give investment instructions with respect to the investment of their
accounts;




(l) to determine the validity of, and take appropriate action with respect to, any qualified
domestic relations order received by it; and




(m) to assist any Participant regarding the
Participant’s rights, benefits, or elections available under the
Plan.


2.5 RECORDS AND REPORTS




     The Administrator shall keep a record of all actions taken and shall keep all other books of
account, records, policies, and other data that may be necessary for proper administration of the
Plan and shall be responsible for supplying all information and reports to the Internal Revenue
Service, Department of Labor, Participants, Beneficiaries and others as required by law.


2.6 APPOINTMENT OF ADVISERS




     The Administrator, or the Trustee with the consent of the Administrator, may appoint
counsel, specialists, advisers, agents (including nonfiduciary agents) and other persons as the
Administrator or the Trustee deems necessary or desirable in connection with the administration
of this Plan, including but not limited to agents and advisers to assist with the administration
and management of the Plan, and thereby to provide, among such other duties as the Administrator
may appoint, assistance with maintaining Plan records and the providing of investment information
to the Plan’s investment fiduciaries and to Plan Participants.


2.7 PAYMENT OF EXPENSES




     All reasonable expenses of administration may be paid out of the Plan assets unless paid by
the Employer. Such expenses shall include any expenses incident to the functioning of the
Administrator, or any person or persons retained or appointed by any named Fiduciary incident to
the exercise of their duties under the Plan, including, but not limited to, fees of accountants,
counsel, Investment Managers, agents (including nonfiduciary agents) appointed for the purpose of
assisting the Administrator or the Trustee in carrying out the instructions of Participants as to
the directed investment of their accounts (if permitted) and other specialists and their agents,
the costs of any bonds required pursuant to Act Section 412, and other costs of administering the
Plan. Until paid, the expenses shall constitute a liability of the Trust Fund. In addition, unless
specifically prohibited under statute, regulation or other guidance of general applicability, the
Administrator may charge to the Account of an individual Participant a reasonable charge to offset
the cost of making a distribution to the Participant, Beneficiary, or alternate payee under a
qualified domestic relation order, as defined in Code Section 414(p). If liquid assets of the Plan
are insufficient to cover the fees of the Trustee or the Plan Administrator, then Plan assets
shall be liquidated to the extent necessary for such fees. In the event any part of the Plan
assets becomes subject to tax, all taxes incurred will be paid from the Plan assets. Until paid,
the expenses shall constitute a liability of the Trust Fund.


2.8 CLAIMS PROCEDURE




     Claims for benefits under the Plan may be filed in writing with the Administrator. Written
notice of the disposition of a claim shall be furnished to the claimant within ninety (90) days
(45 days if the claim involves disability benefits) after the application is filed, or such
period as is required by applicable law or Department of Labor regulation. In the event the claim
is denied, the reasons for the denial shall be specifically set forth in the notice in language
calculated to be understood by the claimant, pertinent provisions of the Plan shall be cited,
and, where appropriate, an explanation as to how the claimant can perfect the claim will be
provided. In addition, the claimant shall be furnished with an explanation of the Plan’s claims
review procedure.


2.9 CLAIMS REVIEW PROCEDURE



Any Employee, Former Employee, or Beneficiary of either, who has been denied a benefit by a
decision of the Administrator pursuant
to Section 2.8 shall be entitled to request the Administrator to give further consideration to a
claim by filing with the Administrator a
written request for a hearing. Such request, together with a written statement of the reasons why
the claimant believes the claim should be
allowed, shall be filed with the Administrator no later than sixty (60) days (45 days if the claim
involves disability benefits) after receipt of
the written notification provided for in Section 2.8. The Administrator shall then conduct a
hearing within the next 60 days (45 days if the
claim involves disability benefits), at which the claimant may be represented by an attorney or
any other representative of such claimant’s
choosing and expense and at which the claimant shall have an opportunity to submit written and
oral evidence and arguments in support of
the claim. At the hearing the claimant or the claimant’s representative shall have an
opportunity to review all documents in the possession
of the Administrator which are pertinent to the claim at issue and its disallowance. A final
decision as to the allowance of the claim shall be made by the Administrator within sixty (60)
days (45 days if the claim involves disability benefits) of receipt of the appeal (unless there has
been an extension of sixty (60) days (45 days if the claim involves disability benefits) due to
special circumstances, provided the delay and




14









 







the special circumstances occasioning it are communicated to the claimant within the 60-day period
(45 days if the claim involves disability benefits)). Such communication shall be written in a
manner calculated to be understood by the claimant and shall include specific reasons for the
decision and specific references to the pertinent Plan provisions on which the decision is based.
Notwithstanding the preceding, to the extent any of the time periods specified in this Section are
amended by law or Department of Labor regulation, then the time frames specified herein shall
automatically be changed in accordance with such law or regulation.




     If the Administrator, pursuant to the claims review procedure, makes a final written
determination denying a Participant’s or Beneficiary’s benefit claim, then in order to preserve
the claim, the Participant or Beneficiary must file an action with respect to the denied claim
not later than one hundred eighty (180) days following the date of the Administrator’s final
determination.



ARTICLE III

ELIGIBILITY



3.1 CONDITIONS OF ELIGIBILITY





(a) Eligibility. Any Eligible Employee shall be eligible to participate hereunder on the date
of such Employee’s employment with the Employer. However, any Employee who was a Participant
in the Plan prior to the effective date of this amendment and restatement shall continue to
participate in the Plan.


3.2 EFFECTIVE DATE OF PARTICIPATION





(a) Effective date of participation. An Eligible Employee shall become a Participant effective
as of the first day of the month
coinciding with or next following the date on which such Employee met the eligibility
requirements of Section 3.1 (or if sooner, the
first day of the following Plan Year), provided said Employee was still employed as of such
date (or if not employed on such date, as
of the date of rehire if a 1-Year Break in Service has not occurred or, if later, the date
that the Employee would have otherwise entered
the Plan had the Employee not terminated employment).




(b) Ineligible to eligible classification. If an Employee, who has satisfied the Plan’s
eligibility requirements and would otherwise
have become a Participant in the Plan, shall go from a classification of an ineligible
Employee to an Eligible Employee, such
Employee shall become a Participant in the Plan on the date such Employee becomes an Eligible
Employee or, if later, the date that the
Employee would have otherwise entered the Plan had the Employee always been an Eligible
Employee.




(c) Eligible to ineligible classification. If an Employee, who has satisfied the Plan’s
eligibility requirements and would otherwise
become a Participant in the Plan, shall go from a classification of an Eligible Employee to an
ineligible class of Employees, such
Employee shall become a Participant in the Plan on the date such Employee again becomes an
Eligible Employee, or, if later, the date
that the Employee would have otherwise entered the Plan had the Employee always been an
Eligible Employee. However, if such
Employee incurs five (5) consecutive 1-Year Breaks in Service, eligibility will be determined
under the Break in Service rules set
forth in Section 3.5.


3.3 DETERMINATION OF ELIGIBILITY




     The Administrator shall determine the eligibility of each Employee for participation in the
Plan based upon information furnished by the Employer. Such determination shall be conclusive and
binding upon all persons, as long as the same is made pursuant to the Plan and the Act. Such
determination shall be subject to review pursuant to Section 2.9.


3.4 TERMINATION OF ELIGIBILITY




     In the event a Participant shall go from a classification of an Eligible Employee to an
ineligible Employee with respect to the Plan, then such Participant shall continue to Vest in the
Plan for each Year of Service completed while an ineligible Employee, until such time as the
Participant’s Account is forfeited or distributed pursuant to the terms of the Plan.
Additionally, the Participant’s interest in the Plan shall continue to share in the earnings of
the Trust Fund.


3.5 REHIRED EMPLOYEES AND BREAKS IN SERVICE





(a) Reemployed before five (5) consecutive 1-Year Breaks in Service. If any Employee becomes a
Former Employee due to
severance from employment with the Employer and is reemployed by the Employer before five (5)
consecutive 1-Year Breaks in
Service occur, then the Former Employee’s prior service shall count in the same manner as if
severance from employment with the
Employer had not occurred. If any Participant ceases to be a Participant due to severance from
employment with the Employer and is
reemployed by the Employer before five (5) consecutive 1-Year Breaks in Service occur, then
the Participant shall resume
participation (in the same manner as if severance from employment with the Employer had not
occurred) as of the reemployment date.




(b) Reemployed after five (5) consecutive 1-Year Breaks in Service (“rule of parity”
provisions). If any Employee becomes a
Former Employee due to severance from employment with the Employer and is reemployed after a
5-Year Break in Service has
occurred, Years of Service shall include Years of Service prior to the 5-year break in service
subject to the following rules:




(1) Rule of parity. In the case of a Participant who under the Plan does not have a
nonforfeitable right to any interest in the Plan
resulting from Employer contributions, Years of Service before a period of consecutive
1-Year Breaks in Service will not be taken



15









 






into account if the number of consecutive 1-Year Breaks in Service equal or exceed the
greater of (A) five (5) or (B) the aggregate number of
pre-break Years of Service. Such
aggregate number of Years of Service will not include any Years of Service disregarded under
the preceding sentence by reason of prior period of five (5) consecutive 1-Year Breaks in
Service.




(2) Participation in Plan. A Former Employee shall participate in the Plan as of the date
of reemployment, or if later, as of the date that the Former Employee would otherwise enter
the Plan pursuant to Sections 3.1 and 3.2 taking into account all service not disregarded
in this subsection.




(c) Vesting after five (5) consecutive 1-Year Breaks in Service. After a Participant who has
severed employment with the
Employer incurs five (5) consecutive 1-Year Breaks in Service, the Vested portion of said
Participant’s Account attributable to
pre-break service shall not be increased as a result of post-break service. In such case,
separate accounts will be maintained as follows:




(1) one account for nonforfeitable benefits attributable to pre-break service; and




(2) one account representing the Participant’s Employer derived account balance in the Plan
attributable to post-break service.




(d) Buyback provisions. If any Participant severs employment with the Employer and is reemployed
by the Employer before
five (5) consecutive 1-Year Breaks in Service, and such Participant had received a distribution
of the entire Vested interest prior to
reemployment, then the forfeited account shall be reinstated only if the Participant repays the
full amount which had been distributed.
Such repayment must be made before the earlier of five (5) years after the first date on which
the Participant is subsequently
reemployed by the Employer or the close of the first period of five (5) consecutive 1-Year
Breaks in Service commencing after the
distribution. If a distribution occurs for any reason other than a severance of employment, the
time for repayment may not end earlier
than five (5) years after the date of distribution. In the event the Participant does repay the
full amount distributed, the undistributed
forfeited portion of the Participant’s Account must be restored in full, unadjusted by any gains
or losses occurring subsequent to the
Valuation Date preceding the distribution. The source for such reinstatement may be Forfeitures
occurring during the Plan Year. If
such source is insufficient, then the Employer will contribute an amount which is sufficient to
restore any such forfeited Accounts.



     If a non-Vested Participant was deemed to have received a distribution and such
Participant is reemployed by the Employer before five (5) consecutive 1-Year Breaks in Service,
then such Participant will be deemed to have repaid the deemed distribution as of the date of
reemployment.


3.6 ELECTION NOT TO PARTICIPATE





(a) Irrevocable election not to participate. An Employee may, subject to the approval of the
Employer, elect voluntarily not to
participate in every Qualified Plan maintained by the Employer. Such election must be made prior
to the time the Employee first
becomes eligible to participate under any Qualified Plan maintained by the Employer. The
election not to participate must be
irrevocable and communicated to the Employer, in writing, within a reasonable period of time
before the date the Employee would
have otherwise entered any Qualified Plan. “Qualified Plan” means, for purposes of this Section,
a plan intended to be tax-qualified
under Code Section 401(a).




(b) Prior Plan document provision. Notwithstanding anything in this Section to the contrary, if
any prior Plan document of this Plan
contained a provision permitting an Employee to make a revocable election not to participate and
an Employee made such revocable
election not to participate while that prior Plan document was in effect, then such Employee may
irrevocably revoke such election at any
time and participate in the Plan.




(c) Effect on coverage, ADP and ACP Tests. An Employee who elected not to participate under the
Plan is treated as a
nonbenefiting Employee for purposes of the minimum coverage requirements under Code Section
410(b). Furthermore, such
Employee is not a Participant for purposes of the ADP Test or the ACP Test.


3.7 OWNER-EMPLOYEE LIMITATION




     If this Plan provides contributions or benefits for one or more Owner-Employees, the
contributions on behalf of any Owner-Employee shall be made only with respect to the Earned Income
for such Owner-Employee which is derived from the trade or business with respect to which such
Plan is established.


3.8 OMISSION OF ELIGIBLE EMPLOYEE; INCLUSION OF INELIGIBLE EMPLOYEE




     If, in any Plan Year, any Employee who should be included as a Participant in the Plan is
erroneously omitted and discovery of such omission is not made until after a contribution by the
Employer for the year has been made and allocated, or any person who should not have been included
as a Participant in the Plan is erroneously included, then the Employer shall apply the principles
described by, and take corrective actions consistent with, the IRS Employee Plans Compliance
Resolution System.




16









 








ARTICLE IV

CONTRIBUTION AND ALLOCATION



4.1 FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION





For each Plan Year, the Employer shall contribute to the Plan:




(a) Salary reductions. The amount that all Participants’ Compensation was reduced pursuant to
Section 4.2(a), which amount shall
be Elective Deferrals.




(b) Matching Contributions. On behalf of each Participant who is eligible to share in Matching
Contributions for the Plan Year, a
Matching Contribution equal to 50% of each such Participant’s Elective Deferrals.




     Except, however, in applying the matching percentage specified above, only salary
reductions up to 4% of Compensation may be considered.




     Matching Contributions shall be determined and any Compensation or dollar limitation used
in determining such Matching Contributions shall be based on the Plan Year.




     Catch-Up Contributions shall not be subject to the Matching Contribution.




(c) Qualified Nonelective Contribution. On behalf of each Participant who is eligible to share
in the Qualified Nonelective
Contribution for the Plan Year, a discretionary Qualified Nonelective Contribution equal to a
uniform percentage of each eligible
individual’s Compensation or 415 Compensation. Such Qualified Nonelective Contribution shall be
allocated to the Qualified
Nonelective Contribution Account.




(d) Top-Heavy contribution. Additionally, to the extent necessary, the Employer shall contribute
to the Plan the amount necessary
to provide the top-heavy minimum contribution, even if it exceeds the amount that would be
deductible under Code Section 404.




(e) Form of contribution. All contributions by the Employer shall be made in cash or in such
property as is acceptable to the
Trustee.


4.2 PARTICIPANT’S SALARY REDUCTION ELECTION





(a) Deferral elections. Each Participant may elect to defer a portion of Compensation which
would have been received in the Plan
Year (except for the deferral election) by up to the maximum amount which will not cause the
Plan to violate the provisions of
Sections 4.5(a) and 4.9. A deferral election (or modification of an earlier election) may not be
made with respect to Compensation
which is currently available on or before the date the Participant executed such election. For
purposes of this Section, Compensation
shall be determined prior to any reductions made pursuant to Code Sections 125, 132(f)(4),
402(e)(3), 402(h)(1)(B), 403(b) or 457(b),
and employee contributions described in Code Section 414(h)(2) that are treated as Employer
contributions.




     Notwithstanding anything in this Plan to the contrary, the Employer may impose a minimum
elective deferral percentage of 1% as an administrative procedure applied on a uniform and
consistent basis to all Participants.




     For purposes of this Section, the annual dollar limitation of Code Section 401(a)(17)
($200,000 as adjusted) shall not apply except that the Administrator may elect to apply such
limit as part of the deferral election procedures established hereunder.




     The amount that is deferred by a Participant shall be subject to the limitations of this
Section, shall be an Elective Deferral, and shall be held for such Participant in the Elective
Deferral Account.




(b) Catch-Up Contributions. Notwithstanding anything in the Plan to the contrary, effective
January 1, 2002, each Catch-Up
Eligible Participant shall be eligible to make Catch-Up Contributions during the Participant’s
taxable year in accordance with, and
subject to the limitations of, Code Section 414(v). Such Catch-Up Contributions are not subject
to the limits on Annual Additions
under Code Section 415(c), are not counted in the ADP Test of Section 4.5(a), are not counted in
determining the minimum allocation
required in a Top-Heavy Plan during a Top-Heavy Plan Year under Code Section 416 (but Catch-Up
Contributions made in prior
years are counted in determining whether the Plan is a Top-Heavy Plan), and are not taken into
account under the limit on Elective
Deferrals under Code Section 402(g). Catch-Up Contributions may be a dollar amount or a
percentage of Compensation for each
payroll period not to exceed the applicable dollar limit under Code Section 414(v), pursuant to
procedures established by the
Administrator. The Plan shall not be treated as failing to satisfy the provisions of the Plan
implementing the requirements of Code
Section 401(k)(3), 416 or 410(b), as applicable, by reason of the making of such Catch-Up
Contributions.




(c) Full vesting. Each Participant’s Elective Deferral Account shall be fully Vested at all
times and shall not be subject to Forfeiture
for any reason.



17









 






(d) Distribution restrictions. Notwithstanding anything in the Plan to the contrary, effective with
respect to distributions and
transactions made after December 31, 2001, amounts held in the Participant’s Elective Deferral
Account may not be distributed except
as authorized by other provisions of this Plan, but in no event may such amounts be distributed
earlier than:




(1) a Participant’s death, disability or other severance of employment;




(2) a Participant’s attainment of age 59 1/2;




(3) effective beginning with the first Plan Year beginning in 2006, the termination of the Plan
without the existence at the time
of Plan termination of an alternative defined contribution plan or the establishment of an
alternative defined contribution plan by
the Employer or an Affiliated Employer within the period ending twelve months after distribution
of all assets from the Plan
maintained by the Employer. For this purpose, a defined contribution plan is not treated as an
alternative defined contribution
plan if the plan is an employee stock ownership plan (as defined in Code Section 4975(e)(7) or
409(a)), a simplified employee
pension plan (as defined in Code Section 408(k)), a SIMPLE IRA plan (as defined in Code Section
408(p)), a plan or contract
that satisfies the requirements of Code Section 403(b), or a plan that is described in Code
Sections 457(b) or 457(f). Furthermore,
if at all times during the 24-month period beginning 12 months before the date of the Plan’s
termination, fewer than 2% of the
Participants in the Plan as of the date of Plan termination are eligible under the other defined
contribution plan, then the other
defined contribution plan is not an alternative defined contribution plan. Distributions from
the terminating Plan may only be
made in lump sum distributions, pursuant to and defined in
Regulation 1.401(k)-1(d)(4)(ii);




(4) the proven financial hardship of a Participant, subject to the limitations of Section 6.12.




(e) Suspension due to hardship. In the event a Participant has received a hardship distribution, on
or after December 31, 2001
pursuant to Regulation 1.401(k)-1(d)(3)(iv)(E)(2) from this Plan or any other plan maintained by
the Employer, then such Participant
shall not be permitted to elect to have Elective Deferrals contributed to the Plan for a period of
six months following the receipt of the
distribution.




(f) Deferrals
limited to Code Section 402(g) dollar limit. A Participant’s “elective deferrals” made
under this Plan and all other
plans, contracts or arrangements of the Employer maintaining this Plan during any calendar year
shall not exceed the dollar limitation.
For this purpose, “elective deferrals” means, with respect to a calendar year, the sum of all
Employer contributions made on behalf of
such Participant pursuant to an election to defer under any qualified cash or deferred arrangement
as described in Code Section
401(k), any salary reduction simplified employee pension (as defined in Code Section 408(k)(6)),
any SIMPLE IRA plan described in
Code Section 408(p), any eligible deferred compensation plan under Code Section 457, any plans
described under Code Section
501(c)(18), and any Employer contributions made on the behalf of a Participant for the purchase of
an annuity contract under Code
Section 403(b) pursuant to a salary reduction agreement. “Elective deferrals” shall not include any
deferrals properly distributed as
excess “Annual Additions” pursuant to Section 4.9. “Dollar limitation” shall mean the dollar
limitation contained in Code Section
402(g) in effect for the Participant’s taxable year beginning in such calendar year. In the case of
a participant aged 50 and over by the
end of the taxable year, the “dollar limitation” described in the preceding sentence shall be
adjusted to include the amount of Elective
Deferrals that may be treated as Catch-Up Contributions. The “dollar limitation” contained in Code
Section 402(g) is $10,500 for
taxable years beginning in 2000 and 2001, increasing to $11,000 for taxable years beginning in 2002
and increasing by $1,000 for
each year thereafter up to $15,000 for taxable years beginning in 2006 and later years. After 2006
the $15,000 limit will be adjusted by
the Secretary of the Treasury for cost-of-living increases under Code Section 402(g)(4). Any such
adjustments will be in multiples of
$500.




(g) Assigning Excess Deferrals to this Plan. If a Participant’s Elective Deferrals under this Plan
together with any elective deferrals
(as defined in Regulation 1.402(g)-1(b)) under another qualified cash or deferred arrangement (as
described in Code Section 401(k)), a
simplified employee pension (as described in Code Section 408(k)(6)), a simple individual
retirement account plan (as described in
Code Section 408(p)), a salary reduction arrangement (within the meaning of Code Section
3121(a)(5)(D)), or a trust described in
Code Section 501(c)(18) cumulatively exceed the “dollar limitation” described in the subsection
4.2(f) of this Section, for such
Participant’s taxable year, then the Participant may assign to this Plan any Excess Deferrals made
during a taxable year of the
Participant by notifying the Administrator in writing on or before March 1 following the close of
the Participant’s taxable year, of the
amount of the Excess Deferrals to be assigned to the Plan. A Participant shall be deemed to notify
the Administrator of any Excess
Deferrals that arise by taking into account only those Elective Deferrals made to this Plan and any
other plan, contract, or arrangement
of the Employer.




     Notwithstanding any other provision of the Plan to the contrary, the Administrator may direct
the Trustee to distribute such Excess Deferrals, plus any Income allocable to such Excess
Deferrals, to the Participant not later than the first April 15th following the close of the
Participant’s taxable year. Such a distribution may be made to a Participant to whose account
Excess Deferrals were assigned for the preceding year or/and who claims Excess Deferrals for such
taxable year or calendar year. Any distribution of less than the entire amount of Excess Deferrals
and Income shall be treated as a pro rata distribution of Excess Deferrals and Income. The amount
of the distribution shall not exceed the Participant’s Elective Deferrals under the Plan for the
taxable year (and any Income allocable to such Excess Deferrals). If a distribution of Excess
Deferrals is to be made on or before the last day of the Participant’s taxable year, then each of
the following conditions must be satisfied:




(1) the distribution must be made after the date on which the Plan received the Excess
Deferrals;



18









 






(2) the Participant shall designate the distribution as Excess Deferrals; and




(3) the Plan must designate the distribution as a distribution of Excess Deferrals.




     Any distribution made pursuant to this Section shall be made first from unmatched Elective
Deferrals and, thereafter, from Elective Deferrals which are matched.




     Matching
Contributions that relate to Excess Deferrals which are distributed pursuant to
this Section 4.2(g) shall be treated as a Forfeiture.




(h) Coordination with ADP Test. Notwithstanding Section 4.2(g) above, a Participant’s Excess
Deferrals shall be reduced, but not below zero, by any distribution of Excess Contributions
pursuant to Section 4.6 for the Plan Year beginning with or within the taxable year of the
Participant.




(i) Segregation. Elective Deferrals made pursuant to this Section may be segregated into a
separate account for each Participant in a federally insured savings account, certificate of
deposit in a bank or savings and loan association, money market certificate, or other
short-term debt security acceptable to the Trustee until such time as the allocations pursuant
to Section 4.4 have been made.




(j) No conditions to receive Elective Deferrals. Notwithstanding anything herein to the
contrary, Participants who terminated employment for any reason during the Plan Year shall share
in the Elective Deferrals made by the Employer for the year of termination without regard to the
Hours of Service credited.




(k) Procedures to implement deferral elections. The Employer and the Administrator may adopt a
procedure to implement the salary reduction elections provided for herein. If such procedure is
adopted, then the procedure shall include (and shall not be limited to) the following:




(1) A Participant must make an initial salary deferral election, or an election to receive
cash in lieu of a salary deferral election,
unless the Employer has implemented an automatic deferral election feature. If the
Participant fails to make an initial salary
deferral election, or an election to receive cash in lieu of a salary deferral election, if
the automatic deferral election applies, then
such Participant may thereafter make an election in accordance with the rules governing
modifications. The Participant shall
make such an election by entering into a salary reduction agreement with the Employer and
filing such agreement with the
Administrator. Such election shall initially be effective beginning with the pay period
following the acceptance of the salary
reduction agreement by the Administrator (or as soon thereafter as practical), shall not
have retroactive effect and shall remain in
force until revoked.




(2) A Participant may modify a prior salary deferral election during the Plan Year and
concurrently make a new election by
filing a notice with the Administrator (in accordance with procedures established by the
Administrator) within a reasonable time
before the pay period for which such modification is to be effective. However, modifications
to a salary deferral election shall
only be permitted quarterly, during election periods established by the Administrator prior
to the first day of each Plan Year
quarter. Any modification shall be implemented as soon as practical after being accepted by
the Administrator, shall not have
retroactive effect and shall remain in force until revoked.




(3) A Participant may elect to prospectively revoke the Participant’s salary reduction
agreement in its entirety at any time during
the Plan Year by providing the Administrator with thirty (30) days written notice of such
revocation (or upon such shorter notice
period as may be acceptable to the Administrator). Such revocation shall become effective as
of the beginning of the first pay
period coincident with or next following the expiration of the notice period (or as soon
thereafter as practical).




(4) Any notices or required actions under this subsection may be provided or made in
accordance with Section 10.14.


4.3 TIME OF PAYMENT OF EMPLOYER CONTRIBUTION




     Unless otherwise provided by contract or law, the Employer may make its contribution to the
Plan for a particular Plan Year at such time as the Employer, in its sole discretion, determines.
If the Employer makes a contribution for a particular Plan Year after the close of that Plan Year,
then the Employer will designate to the Administrator the Plan Year for which the Employer is
making its contribution.


4.4 ALLOCATION OF CONTRIBUTION AND USAGE OF FORFEITURES AND EARNINGS





(a) Separate accounting. The Administrator shall establish and maintain an account in the name
of each Participant to which the
Administrator shall credit as of each Anniversary Date, or other Valuation Date, all amounts
allocated to a particular Account of each
such Participant as set forth herein.




(b) Allocation of contributions. The Employer shall provide the Administrator with all
information required by the Administrator to
make a proper allocation of the Employer contributions for each Plan Year. Within a reasonable
period of time after the date of receipt
by the Administrator of such information, the Administrator shall allocate such contribution as
follows:




(1) Elective Deferrals. With respect to the Elective Deferrals made pursuant to Section
4.1(a), to each Participant’s Elective Deferral Account.



19









 






(2) Matching Contributions. With respect to the Matching Contribution made pursuant to
Section 4.1(b), to each Participant’s
Matching Contribution Account in accordance with Section 4.1(b).




     Any Participant employed during the Plan Year shall be eligible to share in the Matching
Contribution for the Plan Year.




(3) Qualified Nonelective Contributions. With respect to the Qualified Nonelective
Contribution made pursuant to
Section 4.1(c), to each Participant’s Qualified Nonelective Contribution Account in
accordance with Section 4.1(c).




     The Employer may limit such Qualified Nonelective Contributions only to Participants
who are Nonhighly Compensated Employees and/or Non-Key Employees. In addition, the
Employer may condition such Qualified Nonelective Contributions only to Participants who
have completed a Year of Service (or portion thereof) during the Plan Year and/or who are
employed on the last day of the Plan Year. Notwithstanding anything in this subsection to
the contrary, if this Plan becomes a Top-Heavy Plan, then any top-heavy minimum required
allocation that is required pursuant to Section 4.4(g) and that is not satisfied with
Matching Contributions shall be made to each Non-Key Employee’s Qualified Nonelective
Contribution Account.




(c) Usage of Forfeitures. On or before each Anniversary Date, any Forfeitures may be made
available to reinstate previously
forfeited Account balances of Participants, if any, in accordance with Section 3.5(d), and any
remaining Forfeitures may be used to
satisfy any contribution that may be required pursuant to Section 3.8 or 6.10, or be used to
pay any administrative expenses of the
Plan. The remaining Forfeitures, if any, shall be allocated in the following manner:




(1) Forfeitures attributable to Matching Contributions made pursuant to Section 4.1(b)
shall be used to reduce the Employer’s Matching Contributions for the Plan Year.




(d) Minimum required allocation to those not otherwise eligible to share. For any Top-Heavy
Plan Year, Non-Key Employees
not otherwise eligible to share in the allocation of contributions as provided above, shall
receive the minimum required allocation of
Section 4.4(g) if eligible pursuant to the provisions of Section 4.4(j).




(e) Allocation of earnings. As of each Valuation Date, before the current valuation period
allocation of Employer contributions, any
earnings or losses (net appreciation or net depreciation) of the Trust Fund shall be allocated
in the same proportion that each
Participant’s nonsegregated accounts bear to the total of all Participants’ nonsegregated
accounts as of such date. Earnings or losses
with respect to a Participant’s Directed Account shall be allocated in accordance with Section
4.12.




(f) Incoming transfers. Participants’ transfers from other qualified plans deposited in the
general Trust Fund shall share in any
earnings and losses (net appreciation or net depreciation) of the Trust Fund in the same
manner provided above. Each segregated
account maintained on behalf of a Participant shall be credited or charged with its separate
earnings and losses.




(g) Minimum required allocation for Top-Heavy Plan Years. Notwithstanding the foregoing, for
any Top-Heavy Plan Year, the
sum of the Employer contributions allocated to the Account of each Non-Key Employee shall be
equal to at least three percent (3%) of
such Non-Key Employee’s 415 Compensation (reduced by contributions and forfeitures, if any,
allocated to each Non-Key Employee
in any defined contribution plan included with this Plan in a required aggregation group).
However, if (1) the sum of the Employer
contributions allocated to the Participant’s Account of each Key Employee for such Top-Heavy
Plan Year is less than three percent
(3%) of each Key Employee’s 415 Compensation and (2) this Plan is not required to be included
in an aggregation group to enable a
defined benefit plan to meet the requirements of Code Section 401(a)(4) or 410, then the sum of
the Employer contributions allocated
to the Participant’s Account of each Non-Key Employee shall be equal to the largest percentage
allocated to the Account of any Key
Employee. However, in determining whether a Non-Key Employee has received the minimum required
allocation, such Non-Key
Employee’s Elective Deferrals shall not be taken into account. The minimum allocation required
(to the extent required to be
nonforfeitable under Code Section 416(b)) may not be forfeited
under Code Section 411(a)(3)(B)
or 411(a)(3)(D).




     However, no minimum required allocation shall be required in this Plan for any Non-Key
Employee who participates in another defined contribution plan subject to Code Section 412
included with this Plan in a required aggregation group, if the other defined contribution
plan subject to Code Section 412 satisfies the minimum required allocation.




(h) Top-Heavy contribution allocation. For purposes of the minimum required allocation set
forth above, the percentage allocated to the Account of any Key Employee who is a Participant
shall be equal to the ratio of the sum of the Employer contributions (excluding any Catch-Up
Contributions) allocated on behalf of such Key Employee for the Plan Year divided by the 415
Compensation for such Key Employee for the Plan Year.




(i) Matching contributions used to satisfy top-heavy contribution. Effective with respect to
Plan Years beginning after December 31, 2001, Matching Contributions shall be taken into
account for purposes of satisfying the minimum required allocation of Code Section 416(c)(2)
and the Plan. The preceding sentence shall apply with respect to Matching Contributions under
the Plan or, if the Plan provides that the minimum required allocation shall be met in another
plan, such other plan. Matching Contributions that are used to satisfy the minimum required
allocation shall be treated as Matching Contributions for purposes of the ACP Test and other
requirements of Code Section 401 (in).




(j) Participants eligible for top-heavy allocation. For any Top-Heavy Plan Year, the
minimum required allocation set forth above
shall be allocated to the Qualified Nonelective Contribution Account of all Non-Key Employees
who are Participants and who are



20









 






employed by the Employer on the last day of the Plan Year regardless of the Non-Key Employee’s
level of Compensation, including Non-Key Employees who have (1) failed to complete a Year of
Service; and (2) declined to make mandatory contributions (if
required) or, in the case of a
cash or deferred arrangement, Elective Deferrals to the Plan.




(k) 415 Compensation for top-heavy purposes. For the purposes of this Section, 415
Compensation will be limited to the same dollar limitations set forth in Section 1.17,
adjusted in such manner as permitted under Code Section 415(d).




(1) Delay in processing transactions. Notwithstanding anything in this Section to the
contrary, all information necessary to properly reflect a given transaction may not be
available until after the date specified herein for processing such transaction, in which case
the transaction will be reflected when such information is received and processed. Subject to
express limits that may be imposed under the Code, the processing of any contribution,
distribution or other transaction may be delayed for any legitimate business reason or force
majeure (including, but not limited to, failure of systems or computer programs, failure of
the means of the transmission of data, the failure of a service provider to timely receive
values or prices, and the correction for errors or omissions or the errors or omissions of any
service provider). The processing date of a transaction will be binding for all purposes of
the Plan.


4.5 ACTUAL DEFERRAL PERCENTAGE TEST





(a) ADP Test. The ADP for Highly Compensated Employees who are Participants for each Plan Year
and the ADP for Nonhighly
Compensated Employees who are Participants for each Plan Year (or for the preceding Plan Year
if the prior year testing method is
used) shall satisfy one of the following tests:




(1) The
ADP for the group of Highly Compensated Employees who are Participants shall not
exceed the ADP for the group of
Nonhighly Compensated Employees who are Participants (for the preceding Plan Year if the
prior year testing method is used to
calculate the ADP for the group of Nonhighly Compensated Employees who are Participants)
multiplied by 1.25, or




(2) The ADP for the group of Highly Compensated Employees who are Participants shall not
exceed the ADP for the group of
Nonhighly Compensated Employees who are Participants (for the preceding Plan Year, if the
prior year testing method is used to
calculate the ADP for the group of Nonhighly Compensated Employees who are Participants) by
more than two percentage
points. Furthermore, the ADP for the group of Highly Compensated Employees who are
Participants shall not exceed the ADP
for the group of Nonhighly Compensated Employees who are Participants (for the preceding
Plan Year, if the prior year testing
method is used to calculate the ADP for the group of Nonhighly Compensated Employees who
are Participants) multiplied by 2.




(b) Prior Year test upon amendment. Notwithstanding the above, if the prior year test method is
used to calculate the ADP for the
group of Nonhighly Compensated Employees who are Participants for the first Plan Year of this
amendment and restatement, then the
ADP for the group of Nonhighly Compensated Employees who are Participants for the preceding
Plan Year shall be calculated
pursuant to the provisions of the Plan then in effect.




(c) Participant regardless of deferral election. For the purposes of Sections 4.5(a) and 4.6, a
Participant shall be any Employee
eligible to make a deferral election pursuant to Section 4.2 at any point during the Plan Year,
whether or not such deferral election was
made or suspended pursuant to Section 4.2.




(d) Aggregation with other plans. In the event this Plan satisfies the requirements of Code
Sections 401(a)(4), 401(k), 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 ADP of
Employees as if all such plans were a single
plan. If more than ten percent (10%) of the Employer’s Nonhighly Compensated Employees are
involved in a plan coverage change as
defined in Regulation Section 1.401(k)-2(c)(4), then any adjustments to the Nonhighly
Compensated Employees’ ADP for the prior
year will be made in accordance with such Regulations, unless the Employer has elected to use
the current year testing method. Plans
may be aggregated in order to satisfy Code Section 401(k) only if they have the same Plan Year
and use the same ADP Testing
method.




(e) ADP of Highly Compensated Employee in multiple plans. For the purposes of this Section, the
ADP for any Participant who is
a Highly Compensated Employee for the Plan Year and who is eligible to have Elective Deferrals
(and Qualified Nonelective
Contributions and/or Qualified Matching Contributions, if treated as Elective Deferrals for
purposes of the ADP Test) allocated to the
Participant’s accounts under two or more cash or deferred arrangements described in Code
Section 401(k) of the Employer or an
Affiliated Employer, shall be determined as if such Elective Deferrals (and, if applicable,
such Qualified Nonelective Contributions
and/or Qualified Matching Contributions) were made under a single cash or deferred arrangement.
If a Highly Compensated
Employee participates in two or more cash or deferred arrangements of the Employer or an
Affiliated Employer that have different
plan years, then all Elective Deferrals made during the Plan Year under all such arrangements
shall be aggregated. However, for Plan
Years beginning before 2006, if the cash or deferred arrangements have different plan years,
then all such 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
of Code Sections 401(k) or 410(b).




(f) Testing method. For the purpose of this Section, when calculating the ADP for the group of
Nonhighly Compensated Employees
who are Participants, the current year testing method shall be used. Once the current year
testing method has been elected, then the
Employer may elect to use the prior year testing method for a Plan Year only if the Plan has
used the current year testing method for
each of the preceding 5 Plan Years (or if lesser, the number of Plan Years that the Plan has
been in existence) or if, as a result of a
merger or acquisition described in Code Section 410(b)(6)(C)(i), the Employer maintains both a
plan using prior year testing method




21











 






and a plan using current year testing method and the change is made within the transition
period described in Code Section 410(b)(6)(C)(ii).




(g) Otherwise excludable Employee and early participation rules. Notwithstanding anything in
this Section to the contrary, the provisions of this Section and Section 4.6 may be applied
separately (or will be applied separately to the extent required by Regulations) to each
“plan” within the meaning of Regulation Section 1.401(k)-1(b)(4)(iv). For purposes of applying
this provision, the Administrator may use any effective date of participation that is
permitted under Code Section 410(b) provided such date is applied on a consistent and uniform
basis to all Participants. Alternatively, the provisions of Code Section 401(k)(3)(F) may be
used to exclude from consideration all Nonhighly Compensated Employees who have not satisfied
the greatest minimum age and service requirements of Code Section 410(a)(1)(A).




(h) Timing of allocations. For purposes of determining the ADP Test, only Elective Deferrals,
Qualified Nonelective Contributions and Qualified Matching Contributions that are contributed
to the Plan prior to the end of the twelve (12) month period immediately following the Plan
Year to which the contributions relate shall be considered.




(i) Targeted Qualified Nonelective Contributions. Notwithstanding the preceding, for Plan
Years beginning in and after 2006, Qualified Nonelective Contributions cannot be taken into
account in determining the ADR for a Plan Year for a Nonhighly Compensated Employee to the
extent such contributions exceed the product of that Nonhighly Compensated Employee’s 414(s)
Compensation and the greater of five percent (5%) or two (2) times the Plan’s “representative
contribution rate.” Any Qualified Nonelective Contribution taken into account under an ACP
Test under Regulation Section 1.401(m)-2(a)(6) (including the determination of the
representative contribution rate for purposes of Regulation Section 1.401(m)-2(a)(6)(v)(B)),
is not permitted to be taken into account for purposes of this paragraph (including the
determination of the representative contribution rate under this Section). For purposes of
this subsection:




(1) The Plan’s “representative contribution rate” is the lowest applicable contribution
rate of any eligible Nonhighly Compensated Employee among a group of eligible Nonhighly
Compensated Employees that consists of half of all eligible Nonhighly Compensated Employees
for the Plan Year (or, if greater, the lowest “applicable contribution rate” of any
eligible Nonhighly Compensated Employee in the group of all eligible Nonhighly Compensated
Employees for the Plan Year and who is employed by the Employer on the last day of the Plan
Year), and




(2) The “applicable contribution rate” for an eligible Nonhighly Compensated Employee is
the sum of the Qualified Matching Contributions taken into account for the eligible
Nonhighly Compensated Employee for the Plan Year and the Qualified Contributions made for
the eligible Nonhighly Compensated Employee for the Plan Year, divided by the eligible
Nonhighly Compensated Employee’s 414(s) Compensation for the same period.




     Restriction on Qualified Matching Contributions. Qualified Matching Contributions may
only be used to calculate the ADP to the extent that such Qualified Matching Contributions are
Matching Contributions that are not precluded from being taken into account for ACP Test
purposes under the rules of Regulation Section 1.401(m)-2(a)(5)(ii).




     Restrictions of Qualified Nonelective Contributions and Qualified Matching Contributions.
Qualified Nonelective Contributions and Qualified Matching Contributions cannot be taken into
account to determine the ADP to the extent such contributions are taken into account for
purposes of satisfying any other ADP Test, any ACP Test, or the requirements of Regulation
Sections 1.401(k)-3, 1.401(m)-3 or 1.401(k)-4. Thus, for example, Matching Contributions that
are made pursuant to Regulation Section 1.401(k)-3(c) cannot be taken into account under the
ADP Test. Similarly, if a plan switches from the current year testing method to the prior year
testing method pursuant to Regulation Section 1.401(k)-2(c), then Qualified Nonelective
Contributions that are taken into account under the current year testing method for a year may
not be taken into account under the prior year testing method for the next year.




(j) ADP when no Nonhighly Compensated Employees. If, for the applicable year for determining
the ADP of the Nonhighly Compensated Employees for a Plan Year, there are no eligible Nonhighly
Compensated Employees, then the Plan is deemed to satisfy the ADP Test for the Plan Year.




(k) Repeal of multiple use test. The multiple use test described in Code Section 401(m) in
effect prior to the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001
shall not apply for Plan Years beginning after December 31, 2001.



4.6 ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE TEST





(a) Authority to correct. In the event that the initial allocations of the Elective Deferrals
made pursuant to Section 4.2 do not satisfy the ADP Test set forth in Section 4.5(a), the
Administrator shall implement some or all of the provisions of this Section in order to correct
such failure.




(b) Corrective action. The Participant who is the Highly Compensated Employee having the largest
dollar amount of Elective Deferrals shall have a portion of such Participant’s Elective
Deferrals first treated as Catch-Up Contributions and then distributed until the amount of
such Participant’s remaining Elective Deferrals equals the Elective Deferrals (less Catch-Up
Contributions) of the Participant who is the Highly Compensated Employee having the second
largest dollar amount of Elective Deferrals (less Catch-Up Contributions). This process shall
continue until the total amount of Excess Contributions has been eliminated. In determining
the amount of Excess Contributions to be treated as Catch-Up Contributions and/or distributed
with respect to an affected Participant who



22









 






is a Highly Compensated Employee as determined herein, such amount shall be reduced pursuant
to Section 4.2(g) by any Excess Deferrals previously distributed to such affected Participant
who is a Highly Compensated Employee for such Participant’s taxable year ending with or
within such Plan Year.




(1) Corrective distribution. With respect to the distribution of Excess Contributions
pursuant to (a) above, such distribution:




(i) may be postponed but not later than the last day of the twelve-month period
following the Plan Year to which they are allocable;




(ii) shall be made first from unmatched Elective Deferrals and, thereafter,
proportionately from Elective Deferrals which are matched and the related Matching
Contributions that are used in the ADP Test pursuant to Section 4.5;




(iii) shall be adjusted for Income; and




(iv) shall be designated by the Employer as a distribution of Excess Contributions (and
Income).




     Matching contributions which relate to Excess Contributions that are distributed
pursuant to this subsection shall be treated as a Forfeiture to the extent required
pursuant to Code Section 401(a)(4) and the Regulations thereunder, unless the related
Matching Contribution is distributed as an Excess Contribution or as an Excess
Aggregate Contribution.




(2) Income and principal. Any distribution of less than the entire amount of Excess
Contributions shall be treated as a pro rata distribution of Excess Contributions and
Income.




(3) Related Matching Contributions. Matching Contributions which relate to Excess
Contributions shall be forfeited unless the related Matching Contribution is distributed as
an Excess Aggregate Contribution pursuant to Section 4.8.




(c) Corrective contributions. Notwithstanding the above, if the current year testing method is
used, within twelve (12) months after the end of the Plan Year, the Employer may make a
Qualified Nonelective Contribution or Qualified Matching Contribution in accordance with one
of the following provisions which contribution shall be allocated either to the Qualified
Nonelective Contribution Account or Qualified Matching Contribution Account of each
Participant who is a Nonhighly Compensated Employee eligible to share in the allocation in
accordance with such provision. If the prior year testing method is used, then a Qualified
Nonelective Contribution may not be made to correct a failed ADP test. The Employer shall
provide the Administrator with written notification of the amount of the contribution being
made and for which provision it is being made pursuant to:




(1) A Qualified Nonelective Contribution may be made on behalf of Nonhighly Compensated
Participants in an amount sufficient to satisfy one of the tests set forth in Section
4.5(a). Such contribution shall be allocated in the same proportion that each Nonhighly
Compensated Employee’s 414(s) Compensation for the year bears to the total 414(s)
Compensation of all Nonhighly Compensated Employees for such year.




(2) A Qualified Nonelective Contribution may be made on behalf of Nonhighly Compensated
Employees in an amount sufficient to satisfy one of the tests set forth in Section 4.5(a).
Such contribution shall be allocated in the same proportion that each Nonhighly Compensated
Employee’s 414(s) Compensation for the year bears to the total 414(s) Compensation of all
Nonhighly Compensated Employees for such year. However, for purposes of this contribution,
Nonhighly Compensated Employees who are not employed at the end of the Plan Year shall not
be eligible to share in the allocation and shall be disregarded.




(3) A Qualified Nonelective Contribution may be made on behalf of Nonhighly Compensated
Employees in an amount sufficient to satisfy one of the tests set forth in Section 4.5(a).
Such contribution shall be allocated in equal amounts (per capita).




(4) A Qualified Nonelective Contribution may be made on behalf of Nonhighly Compensated
Employees in an amount sufficient to satisfy one of the tests set forth in Section 4.5(a).
Such contribution shall be allocated in equal amounts (per capita). However, for purposes
of this contribution, Nonhighly Compensated Employees who are not employed at the end of
the Plan Year shall not be eligible to share in the allocation and shall be disregarded.




(5) A Qualified Nonelective Contribution may be made on behalf of Nonhighly Compensated
Employees in an amount sufficient to satisfy one of the tests set forth in Section 4.5(a).
Such contribution shall be allocated to the Qualified Nonelective Contribution Account of
the Nonhighly Compensated Employee having the lowest 414(s) Compensation, until one of the
tests set forth in Section 4.5(a) is satisfied, or until such Nonhighly Compensated
Employee has received the maximum permissible amount pursuant to Section 4.9 or the maximum
that may be taken into account in the ADP Test pursuant to Section 4.5(i) (Targeted
Qualified Nonelective Contributions). This process shall continue until one of the tests
set forth in Section 4.5(a) is satisfied.




(6) A Qualified Nonelective Contribution may be made on behalf of Nonhighly Compensated
Employees in an amount sufficient to satisfy one of the tests set forth in Section 4.5(a).
Such contribution shall be allocated to the Qualified Nonelective Contribution Account of
the Nonhighly Compensated Employee having the lowest 414(s) Compensation, until one of the
tests set forth in Section 4.5(a) is satisfied, or until such Nonhighly Compensated
Employee has received the maximum permissible amount pursuant to Section 4.9 or the maximum
that may be taken into account in the ADP Test pursuant to Section 4.5(i)



23









 






(Targeted Qualified Nonelective Contributions). This process shall continue until one of
the tests set forth in Section 4.5(a) is satisfied. However, for purposes of this
contribution, Nonhighly Compensated Employees who are not employed at the end of the Plan
Year shall not be eligible to share in the allocation and shall be disregarded.




(7) A Qualified Matching Contribution may be made on behalf of Nonhighly Compensated
Employees in an amount sufficient to satisfy one of the tests set forth in Section 4.5(a).
Such contribution shall be allocated to the Qualified Matching Contribution Account of each
Nonhighly Compensated Employee in the same proportion that each Nonhighly Compensated
Employee’s Elective Deferrals for the year bears to the total Elective Deferrals of all
Nonhighly Compensated Employees.




(8) A Qualified Matching Contribution may be made on behalf of Nonhighly Compensated
Employees in an amount sufficient to satisfy one of the tests set forth in Section 4.5(a).
Such contribution shall be allocated to the Qualified Matching Contribution Account of each
Nonhighly Compensated Employee in the same proportion that each Nonhighly Compensated
Employee’s Elective Deferrals for the year bears to the total Elective Deferrals of all
Nonhighly Compensated Employees. However, for purposes of this contribution, Nonhighly
Compensated Employees who are not employed at the end of the Plan Year shall not be eligible
to share in the allocation and shall be disregarded.




(9) A Qualified Matching Contribution may be made on behalf of Nonhighly Compensated
Employees in an amount sufficient to satisfy one of the tests set forth in Section 4.5(a).
Such contribution shall be allocated to the Qualified Matching Contribution Account of the
Nonhighly Compensated Employee having the lowest Elective Deferrals until one of the tests
set forth in Section 4.5(a) is satisfied, or until such Nonhighly Compensated Employee has
received the maximum permissible amount pursuant to Section 4.9, subject to the
restriction on Qualified Matching Contributions imposed by the provisions of Section
4.7(g). This process shall continue until one of the tests set forth in Section 4.5(a) is
satisfied.




(10) A Qualified Matching Contribution may be made on behalf of Nonhighly Compensated
Employees in an amount sufficient to satisfy one of the tests set forth in Section 4.5(a).
Such contribution shall be allocated to the Qualified Matching Contribution Account of the
Nonhighly Compensated Employee having the lowest Elective Deferrals until one of the tests
set forth in Section 4.5(a) is satisfied, or until such Nonhighly Compensated Employee has
received the maximum permissible amount pursuant to Section 4.9, subject to the restriction
on Qualified Matching Contributions imposed by the provisions of Section 4.7(g). This
process shall continue until one of the tests set forth in Section 4.5(a) is satisfied).
However, for purposes of this contribution, Nonhighly Compensated Employees who are not
employed at the end of the Plan Year shall not be eligible to share in the allocation and
shall be disregarded.




     Notwithstanding the above, if the testing method changes from the current year testing
method to the prior year testing method, then for purposes of preventing the double counting of
Qualified Nonelective Contributions for the first testing year for which the change is
effective, any special Qualified Nonelective Contribution on behalf of Nonhighly Compensated
Participants used to satisfy the ADP Test or the ACP Test under the current year testing method
for the prior year testing year shall be disregarded.




(d) Administrator may prevent projected failure. If during a Plan Year, it is projected that the
aggregate amount of Elective Deferrals to be allocated to all Highly Compensated Participants
under this Plan would cause the Plan to fail the tests set forth in Section 4.5(a), then the
Administrator may automatically reduce the deferral amount of affected Highly Compensated
Participants, beginning with the Highly Compensated Participant who has the highest ADR until it
is anticipated the Plan will pass the tests or until such Participant’s ADR equals the ADR of
the Highly Compensated Participant having the next highest ADR. This process may continue until
it is anticipated that the Plan will satisfy one of the tests set forth in Section 4.5(a).
Alternatively, the Employer may specify a maximum percentage of Compensation that may be
deferred.




(e) Excise tax after 2 1/2 months. Any Excess Contributions (and Income) which are distributed
on or after 2 1/2 months after the end of the Plan Year shall be subject to the ten percent
(10%) Employer excise tax imposed by Code Section 4979.



4.7 ACTUAL CONTRIBUTION PERCENTAGE TEST





(a) ACP Test. The ACP for Highly Compensated Employees who are Participants for each Plan Year
and the ACP for Nonhighly Compensated Employees who are Participants for each Plan Year (or for
the preceding Plan Year if the prior year testing method is used) shall satisfy one of the
following tests:




(1) The ACP for the group of Highly Compensated Employees who are Participants shall not
exceed the ACP for the group of Nonhighly Compensated Employees who are Participants (for
the preceding Plan Year if the prior year testing method is used to calculate the ACP for
the group of Nonhighly Compensated Employees who are Participants) multiplied by 1.25; or




(2) The ACP for the group of Highly Compensated Employees who are Participants shall not
exceed the ACP for the group of Nonhighly Compensated Employees who are Participants (for
the preceding Plan Year, if the prior year testing method is used to calculate the ACP for
the group of Nonhighly Compensated Employees who are Participants) by more than two
percentage points. Furthermore, the ACP for the group of Highly Compensated Employees who
are Participants shall not exceed the ACP for the group of Nonhighly Compensated Employees
who are Participants (for the preceding Plan Year, if the prior year testing method is used
to calculate the ACP for the group of Nonhighly Compensated Employees who are Participants)
multiplied by 2.




(b) Prior-year test upon amendment. Notwithstanding the above, if the prior year test method is
used to calculate the ACP for the group of Nonhighly Compensated Employees who are Participants
for the first Plan Year of this amendment and restatement, then the



24









 






ACP for the group of Nonhighly Compensated Employees who are Participants for the preceding Plan
Year shall be calculated pursuant to the provisions of the Plan then in effect.




(c) Aggregation with other plans. In the event that this Plan satisfies the requirements of Code
Sections 401(a)(4), 401(m), or 410(b) only if aggregated with one or more other plans, or if one
or more other plans satisfy the requirements of such sections of the Code only if aggregated with
this Plan (other than the average benefits test under Code Section 410(b)(2)(A)(ii)), then this
Section shall be applied by determining the ACP of Employees as if all such plans were a single
plan. If more than ten percent (10%) of the Employer’s Nonhighly Compensated Employees are involved
in a plan coverage change as defined in Regulation Section 1.401(m)-2(c)(4), then any adjustments
to the Nonhighly Compensated Employees ACP for the prior year will be made in accordance with such
Regulations, unless the Employer has elected to use the current year testing method. Plans may be
aggregated in order to satisfy Code Section 401(m) only if they have the same Plan Year and use the
same ACP testing method.




(d) ACP of Highly Compensated Employee in multiple plans. For the purposes of this Section, if a
Highly Compensated Employee is a Participant under two (2) or more plans which are maintained by
the Employer or an Affiliated Employer to which Matching Contributions, nondeductible Employee
contributions, or both, are made, then all such contributions on behalf of such Highly Compensated
Employee shall be aggregated for purposes of determining such Highly Compensated Employee’s ACR. If
the plans have different plan years, then all such contributions made during the Plan Year under
all such arrangements shall be aggregated. However, for Plan Years beginning before 2006 this
paragraph shall be applied by treating all plans ending with or within the same calendar year as a
single plan. Notwithstanding the foregoing, certain plans shall be treated as separate if
mandatorily disaggregated under Regulations under Code Section 401(m).




(e) Current year testing method. For the purpose of this Section, when calculating the ACP for the
group of Nonhighly Compensated Employees who are Participants, the current year testing method
shall be used. Once the current year testing method has been elected, then the Employer may elect
to use the prior year testing method for a Plan Year only if the Plan has used the current year
testing method for each of the preceding 5 Plan Years (or if lesser, the number of Plan Years that
the Plan has been in existence) or if, as a result of a merger or acquisition described in Code
Section 410(b)(6)(C)(i), the Employer maintains both a plan using prior year testing method and a
plan using current year testing method and the change is made within the transition period
described in Code Section 410(b)(6)(C)(ii).




(f) Otherwise excludable Employee and early participation rules. Notwithstanding anything in this
Section to the contrary, the provisions of this Section and Section 4.8 may be applied separately
(or will be applied separately to the extent required by Regulations) to each plan within the
meaning of Regulation Section 1.401(m)-1(b)(4). For purposes of applying this provision, the
Administrator may use any effective date of participation that is permitted under Code Section
410(b) provided such date is applied on a consistent and uniform basis to all Participants.
Alternatively, the provisions of Code Section 401(m)(5)(C) may be used to exclude from
consideration all Nonhighly Compensated Employees who have not satisfied the greatest minimum age
and service requirements of Code Section 410(a)(1)(A).




(g) Targeted Matching Contributions. Notwithstanding the preceding, for Plan Years beginning in and
after 2006, a Matching Contribution (and a Qualified Matching Contribution not used in the ADP
Test) with respect to an Elective Deferral for a year is not taken into account in determining the
ACP for Nonhighly Compensated Employees to the extent it exceeds the greatest of:




(1) five percent (5%) of the Participant’s 414(s) Compensation for the year;




(2) the Employee’s Elective Deferrals for the year; and




(3) the product of two (2) times the Plan’s “representative matching rate” and the Participant’s
Elective Deferrals for the year.




     For purposes of this subsection, the Plan’s “representative matching rate” is the lowest
“matching rate” for any eligible Nonhighly Compensated Employee among a group of Nonhighly
Compensated Employees that consists of half of all eligible Nonhighly Compensated Employees in the
Plan for the Plan Year who make Elective Deferrals for the Plan Year (or, if greater, the lowest
“matching rate” for all eligible Nonhighly Compensated Employees in the Plan who are employed by
the Employer on the last day of the Plan Year and who make Elective Deferrals for the Plan Year).




     For purposes of this subsection, the “matching rate” for an Employee generally is the
Matching Contributions (and Qualified Matching Contributions not used in the ADP Test) made for
such Employee divided by the Employee’s Elective Deferrals for the year. If the matching rate is
not the same for all levels of Elective Deferrals for an Employee, then the Employee’s “matching
rate” is determined assuming that an Employee’s Elective Deferrals are equal to six percent (6%)
of 414(s) Compensation.



25









 






(h) Targeted Qualified Nonelective Contributions. Notwithstanding the preceding, for Plan
Years beginning in and after 2006, Qualified Nonelective Contributions cannot be taken into
account in determining the ACR for a Plan Year for a Nonhighly Compensated Employee to the
extent such contributions exceed the product of that Nonhighly Compensated Employee’s 414(s)
Compensation and the greater of five percent (5%) or two times the Plan’s “representative
contribution rate.” Any Qualified Nonelective Contribution taken into account in the ADP test
under Regulation Section 1.401(k)-2(a)(6) (including determination of the representative
contribution rate for purposes of Regulation Section 1.401(k)-2(a)(6)(iv)(B)), is not
permitted to be taken into account for purposes of this paragraph (including the determination
of the representative contribution rate under this Section). For purposes of this subsection:




(1) The Plan’s “representative contribution rate” is the lowest applicable contribution
rate of any eligible Nonhighly Compensated Employee among a group of eligible Nonhighly
Compensated Employees that consists of half of all eligible Nonhighly Compensated Employees
for the Plan Year (or, if greater, the lowest “applicable contribution rate” of any
eligible Nonhighly Compensated Employee in the group of all eligible Nonhighly Compensated
Employees for the Plan Year and who is employed by the Employer on the last day of the Plan
Year), and




(2) The “applicable contribution rate” for an eligible Nonhighly Compensated Employee is
the sum of the Matching Contributions taken into account under this Section for the
eligible Nonhighly Compensated Employee for the Plan Year and the Qualified Nonelective
Contributions taken into account under this Section made for the eligible Nonhighly
Compensated Employee for the Plan Year, divided by the eligible Nonhighly Compensated
Employee’s 414(s) Compensation for the same period.




     Restrictions of Qualified Nonelective Contributions and Qualified Matching
Contributions. Qualified Nonelective Contributions and Qualified Matching Contributions
cannot be taken into account to determine the ACP to the extent such contributions are taken
into account for purposes of satisfying any other ACP Test, any ADP Test, or the requirements
of Regulation Sections 1.401(k)-3, 1.401(m)-3 or 1.401(k)-4. Thus, for example, Qualified
Nonelective Contributions that are made pursuant to Regulation Section 1.401(k)-3(b) cannot
be taken into account under the ACP Test. Similarly, if a plan switches from the current year
testing method to the prior year testing method pursuant to Regulation Section
1.401(m)-2(c)(1), then Qualified Nonelective Contributions that are taken into account under
the current year testing method for a year may not be taken into account under the prior year
testing method for the next year.




(i) ACP when no Nonhighly Compensated Employees. If, for the applicable year for determining
the ACP of the Nonhighly Compensated Employees for a Plan Year, there are no eligible
Nonhighly Compensated Employees, then the Plan is deemed to satisfy the ACP Test for the Plan
Year.




(j) Repeal of multiple use test. The multiple use test described in Code Section 401(m) in
effect prior to the enactment of the Economic Growth and Tax Relief Reconciliation Act of
2001 shall not apply for Plan Years beginning after December 31, 2001.



4.8 ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE TEST





(a) Authority to correct. In the event that the ACP Test set forth in Section 4.7(a) is not
satisfied, the Administrator shall implement some or all of the provisions of this Section in
order to correct such failure.




(b) Corrective distribution or Forfeiture. On or before the close of the following Plan Year,
the Participant who is the Highly Compensated Employee having the largest dollar amount of
Contribution Percentage Amounts shall have a portion of such Contribution Percentage Amounts
(and Income allocable to such amounts) distributed or, if non-Vested, treated as a Forfeiture
(including Income allocable to such Forfeitures) until the total amount of Excess Aggregate
Contributions has been distributed, or until the amount of the Participant’s Contribution
Percentage Amounts equals the Contribution Percentage Amounts of the Participant who is a
Highly Compensated Employee having the next largest amount of Contribution Percentage Amounts.
This process shall continue until the total amount of Excess Aggregate Contributions has been
distributed or forfeited. Any distribution and/or Forfeiture of Contribution Percentage
Amounts shall be made in the following order:




(1) Matching Contributions distributed and/or forfeited pursuant to Section 4.6(b);




(2) Any remaining Matching Contributions.




     If the distribution of Excess Aggregate Contributions attributable to Matching
Contributions is not in proportion to the Vested and non-Vested portion of such Matching
Contributions, then the Vested portion of the Participant’s Matching Contribution Account
after the distribution shall be subject to Section 6.5(e).




(c) Source of corrective distribution or Forfeiture. Any distribution and/or Forfeiture of
less than the entire amount of Excess Aggregate Contributions (and Income) shall be treated as
a pro rata distribution and/or Forfeiture of Excess Aggregate Contributions (and Income).
Distribution of Excess Aggregate Contributions shall be designated by the Employer as a
distribution of Excess Aggregate Contributions (and Income). Forfeitures of Excess Aggregate
Contributions shall be treated in accordance with Section 4.4. However, no such Forfeiture may
be allocated to a Highly Compensated Participant whose Excess Aggregate Contributions are
reduced pursuant to this Section.



26









 






(d) Treatment of Excess Aggregate Contributions. Excess Aggregate Contributions, including Matching
Contributions that are treated as Forfeitures, shall be treated as Employer contributions for
purposes of Code Sections 404 and 415 even if distributed from the Plan.




(e) Ordering of tests. The determination of the amount of Excess Aggregate Contributions with
respect to any Plan Year shall be made after first determining the Excess Contributions, if any, to
be treated as After-Tax Voluntary Contributions due to recharacterization for the Plan Year of any
other qualified cash or deferred arrangement (as defined in Code Section 401 (k)) maintained by the
Employer that ends with or within the Plan Year.




(f) Administrator may prevent projected failure. If during a Plan Year the projected aggregate
Contribution Percentage Amounts to be allocated to all Participants who are Highly Compensated
Employees under this Plan would, by virtue of the ACP Test of Section 4.7(a), cause the Plan to
fail the ACP Test, then the Administrator may automatically reduce proportionately or in the order
provided in Section 4.8(b) the projected share each affected Participant who is a Highly
Compensated Employee of such contributions by an amount necessary to satisfy the ACP Test of
Section 4.7(a).




(g) Corrective contributions. Notwithstanding the above, if the current year testing method is
used, within twelve (12) months after the end of the Plan Year, the Employer may make a Qualified
Nonelective Contribution or Matching Contribution in accordance with one of the following
provisions, which contribution shall be allocated to the Qualified Nonelective Contribution
Account, Qualified Matching Contribution Account, or Matching Account of each Participant who is a
Nonhighly Compensated Employee eligible to share in the allocation in accordance with such
provision. If the prior year testing method is used, then a Qualified Nonelective Contribution may
not be made to correct a failed ACP test. The Employer shall provide the Administrator with written
notification of the amount of the contribution being made and for which provision it is being made
pursuant to:




(1) A Qualified Nonelective Contribution may be made on behalf of Nonhighly Compensated
Participants in an amount sufficient to satisfy one of the tests set forth in Section 4.7(a).
Such contribution shall be allocated in the same proportion that each Nonhighly Compensated
Employee’s 414(s) Compensation for the year bears to the total 414(s) Compensation of all
Nonhighly Compensated Employees for such year.




(2) A Qualified Nonelective Contribution may be made on behalf of Nonhighly Compensated
Employees in an amount sufficient to satisfy one of the tests set forth in Section 4.7(a). Such
contribution shall be allocated in the same proportion that each Nonhighly Compensated
Employee’s 414(s) Compensation for the year bears to the total 414(s) Compensation of all
Nonhighly Compensated Employees for such year. However, for purposes of this contribution,
Nonhighly Compensated Employees who are not employed at the end of the Plan Year shall not be
eligible to share in the allocation and shall be disregarded.




(3) A Qualified Nonelective Contribution may be made on behalf of Nonhighly Compensated
Employees in an amount sufficient to satisfy one of the tests set forth in Section 4.7(a). Such
contribution shall be allocated in equal amounts (per capita).




(4) A Qualified Nonelective Contribution may be made on behalf of Nonhighly Compensated
Employees in an amount sufficient to satisfy one of the tests set forth in Section 4.7(a). Such
contribution shall be allocated in equal amounts (per capita). However, for purposes of this
contribution, Nonhighly Compensated Employees who are not employed at the end of the Plan Year
shall not be eligible to share in the allocation and shall be disregarded.




(5) A Qualified Nonelective Contribution may be made on behalf of Nonhighly Compensated
Employees in an amount sufficient to satisfy one of the tests set forth in Section 4.7(a). Such
contribution shall be allocated to the Qualified Nonelective Contribution Account of the
Nonhighly Compensated Employee having the lowest 414(s) Compensation, until one of the tests set
forth in Section 4.7(a) is satisfied, or until such Nonhighly Compensated Employee has received
the maximum permissible amount pursuant to Section 4.9, or the maximum that may be taken into
account in the ACP Test pursuant to Section 4.7(h) (Targeted Qualified Nonelective
Contributions). This process shall continue until one of the tests set forth in Section 4.7(a)
is satisfied.




(6) A Qualified Nonelective Contribution may be made on behalf of Nonhighly Compensated
Employees in an amount sufficient to satisfy one of the tests set forth in Section 4.7(a). Such
contribution shall be allocated to the Qualified Nonelective Contribution Account of the
Nonhighly Compensated Employee having the lowest 414(s) Compensation, until one of the tests set
forth in Section 4.7(a) is satisfied, or until such Nonhighly Compensated Employee has received
the maximum permissible amount pursuant to Section 4.9, or the maximum that may be taken into
account in the ACP Test pursuant to Section 4.7(h) (Targeted Qualified Nonelective
Contributions). This process shall continue until one of the tests set forth in Section 4.7(a)
is satisfied. However, for purposes of this contribution, Nonhighly Compensated Employees who
are not employed at the end of the Plan Year shall not be eligible to share in the allocation
and shall be disregarded.




(7) A Matching Contribution or Qualified Matching Contribution may be made on behalf of
Nonhighly Compensated Employees in an amount sufficient to satisfy one of the tests set forth in
Section 4.7(a). Such contribution shall be allocated to the Qualified Matching Contribution
Account of each Nonhighly Compensated Employee in the same proportion that each Nonhighly
Compensated Employee’s Elective Deferrals for the year bears to the total Elective Deferrals of
all Nonhighly Compensated Employees.



27









 






(8) A Matching Contribution or Qualified Matching Contribution may be made on behalf of
Nonhighly Compensated Employees in an amount sufficient to satisfy one of the tests set
forth in Section 4.7(a). Such contribution shall be allocated to the Qualified Matching
Contribution Account of each Nonhighly Compensated Employee in the same proportion that each
Nonhighly Compensated Employee’s Elective Deferrals for the year bears to the total Elective
Deferrals of all Nonhighly Compensated Employees. However, for purposes of this
contribution, Nonhighly Compensated Employees who are not employed at the end of the Plan
Year shall not be eligible to share in the allocation and shall be disregarded.




(9) A Matching Contribution or Qualified Matching Contribution may be made on behalf of
Nonhighly Compensated Employees in an amount sufficient to satisfy one of the tests set
forth in Section 4.7(a). Such contribution shall be allocated to the Qualified Matching
Contribution Account of the Nonhighly Compensated Employee having the lowest Elective
Deferrals until one of the tests set forth in Section 4.7(a) is satisfied, or until such
Nonhighly Compensated Employee has received the maximum permissible amount pursuant to
Section 4.9, subject to the restriction on Targeted Matching Contributions imposed by the
provisions of Section 4.7(g). This process shall continue until one of the tests set forth
in Section 4.7(a) is satisfied.




(10) A Matching Contribution or Qualified Matching Contribution may be made on behalf of
Nonhighly Compensated Employees in an amount sufficient to satisfy one of the tests set
forth in Section 4.7(a). Such contribution shall be allocated to the Qualified Matching
Contribution Account of the Nonhighly Compensated Employee having the lowest Elective
Deferrals until one of the tests set forth in Section 4.7(a) is satisfied, or until such
Nonhighly Compensated Employee has received the maximum permissible amount pursuant to
Section 4.9, subject to the restriction on Targeted Matching Contributions imposed by the
provisions of Section 4.7(g). This process shall continue until one of the tests set forth
in Section 4.7(a) is satisfied. However, for purposes of this contribution, Nonhighly
Compensated Employees who are not employed at the end of the Plan Year shall not be eligible
to share in the allocation and shall be disregarded.




(h) Excise tax. Any Excess Aggregate Contributions (and Income) which are distributed on or
after 2 1/2 months after the end of the Plan Year shall be subject to the ten percent (10%)
Employer excise tax imposed by Code Section 4979.



4.9 MAXIMUM ANNUAL ADDITIONS





(a) Maximum permissible amount. Notwithstanding the foregoing, for Limitation Years beginning
after December 31, 2001, the maximum Annual Additions credited to a Participant’s Accounts for
any Limitation Year shall equal the lesser of:




(1) $40,000 adjusted annually as provided in Code Section 415(d) pursuant to the
Regulations, or




(2) one-hundred percent (100%) of the Participant’s 415 Compensation for such Limitation
Year.




     The percentage limitation in paragraph (2) above shall not apply to: (1) any contribution
for medical benefits (within the meaning of Code Section 419A(f)(2)) after separation from
service which is otherwise treated as an annual addition, or (2) any amount otherwise treated as
an annual addition under Code Section 415(1)(1).




     For any short Limitation Year, the dollar limitation in paragraph (1) above shall be
reduced by a fraction, the numerator of which is the number of full months in the short
Limitation Year and the denominator of which is twelve (12).




(b) Reasonable estimate permissible. Prior to determining the Participant’s actual 415
Compensation for the Limitation Year, the Employer may determine the maximum permissible amount
for a Participant on the basis of a reasonable estimation of the Participant’s 415 Compensation
for the Limitation Year, uniformly determined for all Participants similarly situated. As soon
as is administratively feasible after the end of the Limitation Year, the maximum permissible
amount for the Limitation Year will be determined on the basis of the Participant’s actual 415
Compensation for the Limitation Year.




(c) Excess Annual Additions defined. For purposes of this Article, the term “Excess Annual
Additions” for any Participant for a Limitation Year means a Participant’s Annual Additions
under this Plan and such other plans of the Employer or Affiliated Employer that are in excess
of the maximum permissible amount of Section 4.9 for a Limitation Year. The Excess Annual
Additions will be deemed to consist of the Annual Additions last allocated, except that Annual
Additions attributable to a simplified employee pension will be deemed to have been allocated
first, followed by Annual Additions to a welfare benefit fund or individual medical account, and
then by Annual Additions to a plan subject to Code Section 412, regardless of the actual
allocation date.




(d) Annual Additions can cease when maximum permissible amount reached. If the Employer
contribution that would otherwise be contributed or allocated to the Participant’s Accounts
would cause the Annual Additions for the Limitation Year to exceed the maximum permissible
amount, then the amount that would otherwise be contributed or allocated will be reduced so that
the Annual Additions for the Limitation Year will equal the maximum permissible amount, and any
such amounts which would have been allocated to such Participant may be allocated to other
Participants.




(e) All DC plans treated as one plan. For the purpose of this Section, all qualified defined
contribution plans (regardless of whether such plan has terminated) maintained by the Employer
during a Limitation Year shall be treated as one defined contribution plan.




(f) All Employees of Related Employers treated as employed by one Employer. For the purpose of
this Section, if the Employer is a member of a controlled group of corporations, trades or
businesses under common control (as defined by Code Section 1563(a) or Code Section 414(b) and
(c) as modified by Code Section 415(h)), is a member of an affiliated service group (as defined
by Code



28









 






Section 414(m)), or is a member of a group of entities required to be aggregated pursuant to
Regulations under Code Section 414(o), then all Employees of such Employers shall be
considered to be employed by a single Employer.




(g) 413(c) Plan. If this is a plan described in Code Section 413(c) (other than a plan
described in Code Section 414(f)), then all of the benefits or contributions attributable to
a Participant from all of the Employers maintaining this Plan shall be taken into account in
applying the limits of this Section with respect to such Participant, Furthermore, in
applying the limitations of this Section with respect to such a Participant, the total 415
Compensation received by the Participant from all of the Employers maintaining the Plan shall
be taken into account.




(h)(1) DC Plans with same/different Anniversary Dates. If a Participant participates in more
than one defined contribution plan maintained by the Employer that have different Anniversary
Dates, then the maximum permissible amount under this Plan shall equal the maximum
permissible amount for the Limitation Year minus any Annual Additions previously credited to
such Participant’s Accounts during the Limitation Year.




(2) If a Participant participates in both a defined contribution plan subject to Code
Section 412 and a defined contribution plan not subject to Code Section 412 maintained by
the Employer which have the same Anniversary Date, then Annual Additions will be credited
to the Participant’s Accounts under the defined contribution plan subject to Code Section
412 prior to crediting Annual Additions to the Participant’s Accounts under the defined
contribution plan not subject to Code Section 412.




(3) If a Participant participates in more than one defined contribution plan not subject to
Code Section 412 maintained by the Employer which have the same Anniversary Date, then the
maximum permissible amount under this Plan shall equal the product of (A) the maximum
permissible amount for the Limitation Year minus any Annual Additions previously credited
under subparagraphs (1) or (2) above, multiplied by (B) a fraction (i) the numerator of
which is the Annual Additions which would be credited to such Participant’s Accounts under
this Plan without regard to the limitations of Code Section 415 and (ii) the denominator of
which is such Annual Additions for all plans described in this subparagraph.



4.10 ADJUSTMENT FOR EXCESS ANNUAL ADDITIONS





(a) Disposal of Excess Annual Additions. Allocation of Annual Additions to a Participant’s
Account for a Limitation Year generally will cease in accordance with Section 4.9(d) once the
maximum permissible amount of Section 4.9 has been reached for such Limitation Year. However,
if, as a result of a reasonable error in estimating a Participant’s Compensation, 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 Participant with respect to the maximum
permissible amount of Section 4.9 or other facts and circumstances to which
Regulation 1.415-6(b)(6) shall be applicable, the Annual Additions under this Plan would cause
Excess Annual Additions for any Participant, then the Excess Annual Additions will be disposed
of in one of the following ways, as uniformly determined by the Administrator for all
Participants similarly situated.




(1) Any unmatched Elective Deferrals and, thereafter, proportionately from Elective
Deferrals which are matched and Matching Contributions which relate to such Elective
Deferrals, will be reduced to the extent they would reduce the Excess Annual Additions. The
Elective Deferrals (and any gains attributable to such Elective Deferrals) shall be
distributed to the Participant and the Matching Contributions (and any gains attributable
to such Matching Contributions) will be used to reduce the Employer contribution in the
next Limitation Year;




(2) If the Participant is covered by the Plan at the end of the Limitation Year, then the
Excess Annual Additions will be used to reduce the Employer contribution for such
Participant in the next Limitation Year, and each succeeding Limitation Year if necessary;




(3) If the Participant is not covered by the Plan at the end of the Limitation Year, then
the Excess Annual Additions will be held unallocated in a “Section 415 suspense account.”
The “Section 415 suspense account” will be applied to reduce future Employer contributions
for all remaining Participants in the next Limitation Year, and each succeeding Limitation
Year if necessary;




(4) If a “Section 415 suspense account” is in existence at any time during the Limitation
Year pursuant to this Section, then the “Section 415 suspense account” will not participate
in the allocation of investment gains and losses of the Trust Fund. If a “Section 415
suspense account” is in existence at any time during a particular Limitation Year, then all
amounts in the “Section 415 suspense account” must be allocated and reallocated to
Participants’ Accounts before any Employer contributions or any Employee contributions may
be made to the Plan for that Limitation Year. Except as provided above, Excess Annual
Additions may not be distributed to Participants.




(b) Section 415 suspense account defined. For purposes of this Section, the term “Section 415
suspense account” means an unallocated account equal to the sum of Excess Annual Additions for
all Participants in the Plan during the Limitation Year.



4.11 PLAN-TO-PLAN TRANSFERS (OTHER THAN ROLLOVERS) FROM QUALIFIED PLANS





(a) Transfers into this Plan. With the consent of the Administrator (such consent must be
exercised in a nondiscriminatory manner and applied uniformly to all Participants), amounts may
be transferred (within the meaning of Code Section 414(1)) to this Plan from other tax qualified
plans under Code Section 401(a), provided that the plan from which such funds are transferred
permits the transfer to be made, the funds are not subject to the notice and consent requirements of Code Section
417 (i.e., qualified joint and survivor



29









 






annuity requirements), and the transfer will not jeopardize the tax exempt status of the Plan
or Trust or create adverse tax consequences for the Employer. Prior to accepting any transfers
to which this Section applies, the Administrator may require satisfactory evidence that the
amounts to be transferred meet the requirements of this Section. The transferred amounts shall
be allocated to the Transfer Account of the Participant.




     At the time of the transfer, the nonforfeitable percentage of the funds under the
transferor plan shall apply, but thereafter shall increase (if applicable) for each Year of
Service that the Participant completes after such transfer in accordance with the Vesting
provisions of this Plan applicable to the type of Account represented by the transferred funds
(e.g., transferred nonelective funds will be subject to the vesting schedule applicable to
Nonelective Contributions under this Plan). If the vesting schedule applicable to a Transferred
Account changes as a result of this paragraph, such change will be treated as an amendment to
the vesting schedule for each affected Participant.




(b) Accounting of transfers. The Transfer Account of a Participant shall be held by the Trustee
pursuant to the provisions of this Plan and may not be withdrawn by, or distributed to the
Participant, in whole or in part, except as provided in paragraph (d) of this Section. The
Trustee shall have no duty or responsibility to inquire as to the propriety of the amount, value
or type of assets transferred, nor to conduct any due diligence with respect to such assets;
provided, however, that such assets are otherwise eligible to be held by the Trustee under the
terms of this Plan.




(c) Restrictions on elective deferrals. Except as permitted by Regulations (including Regulation
Section 1.411(d)-4), amounts attributable to elective deferrals (as defined in Regulation
Section 1.401(k)-6), including amounts treated as elective deferrals, which are transferred from
another qualified plan in a plan-to-plan transfer (other than a direct rollover) shall be
subject to the distribution limitations provided for in Code Section 401(k)(2) and the
Regulations.




(d) Distribution of Transfer Account. At Normal Retirement Date, or such other date when the
Participant or the Participant’s Beneficiary shall be entitled to receive benefits, the Transfer
Account of a Participant shall be used to provide additional benefits to the Participant or the
Participant’s Beneficiary. Any distributions of amounts held in the Transfer Account shall be
made in a manner which is consistent with and satisfies the provisions of Sections 6.5 and 6.6,
including, but not limited to, all notice and consent requirements of Code Section 411(a)(11)
and the Regulations thereunder. Furthermore, the Transfer Account shall be considered as part of
a Participant’s benefit in determining whether an involuntary cash-out of benefits may be made
without Participant consent.




(e) Segregation. The Administrator may direct that Employee transfers made after a Valuation
Date be segregated into a separate account for each Participant until such time as the
allocations pursuant to this Plan have been made, at which time they may remain segregated or be
invested as part of the general Trust Fund or be directed by the Participant pursuant to Section
4.12.




(f) Protected benefits. Notwithstanding anything herein to the contrary, a transfer directly to
this Plan from another qualified plan (or a transaction having the effect of such a transfer)
shall only be permitted if it will not result in the elimination or reduction of any “Section 411(d)(6) protected benefit” as described in Section 8.1(e).




(g) Separate Accounts. With respect to each Participant’s Transfer Account, separate
sub-accounts shall be maintained to the extent necessary to carry out the provisions of this
Plan.



4.12 PARTICIPANT DIRECTED INVESTMENTS





(a) Directed Investments allowed. Participants may, subject to a procedure established by the
Administrator (the Participant Direction Procedures) and applied in a uniform nondiscriminatory
manner, direct the Trustee, in writing (or in such other form which is acceptable to the
Trustee), to invest their entire Accounts in specific assets, specific funds or other
investments permitted under the Plan and the Participant Direction Procedures. That portion of
the interest of any Participant so directing will thereupon be considered a Participant’s
Directed Account.




(b) Establishment of Participant Direction Procedures. The Administrator will establish
Participant Direction Procedures, to be applied in a uniform and nondiscriminatory manner,
setting forth the permissible investment options under this Section, how often changes between
investments may be made, and any other limitations and provisions that the Administrator may
impose on a Participant’s right to direct investments.




(c) Administrative discretion. The Administrator may, in its discretion, include or exclude by
amendment or other action from the Participant Direction Procedures such instructions,
guidelines or policies as it deems necessary or appropriate to ensure proper administration of
the Plan, and may interpret the same accordingly.




(d) Allocation of earnings. As of each Valuation Date, all Participant Directed Accounts shall
be charged or credited with the net earnings, gains, losses and expenses as well as any
appreciation or depreciation in the market value using publicly listed fair market values when
available or appropriate as follows:




(1) to the extent that the assets in a Participant’s Directed Account are accounted for as
pooled assets or investments, the allocation of earnings, gains and losses of each
Participant’s Directed Account shall be based upon the total amount of funds so invested in
a manner proportionate to the Participant’s share of such pooled investment; and



30









 






(2) to the extent that the assets in the Participant’s Directed Account are accounted for
as segregated assets, the allocation of earnings, gains and losses from such assets shall be
made on a separate and distinct basis.




(e) Plan will follow investment directions. Investment directions will be processed as soon as
administratively practicable after proper investment directions are received from the
Participant. No guarantee is made by the Plan, Employer, Administrator or Trustee that
investment directions will be processed on a daily basis, and no guarantee is made in any
respect regarding the processing time of an investment direction. Notwithstanding any other
provision of the Plan, the Employer, Administrator or Trustee reserves the right to not value an
investment option on any given Valuation Date for any reason deemed appropriate by the Employer,
Administrator or Trustee. Furthermore, the processing of any investment transaction may be
delayed for any legitimate business reason or force majeure (including, but not limited to,
failure of systems or computer programs, failure of the means of the transmission of data, the
failure of a service provider to timely receive values or prices, and correction for errors or
omissions or the errors or omissions of any service provider). The processing date of a
transaction will be binding for all purposes of the Plan and considered the applicable Valuation
Date for an investment transaction.




(f) Section 404(c) provisions. The Participant Direction Procedures shall provide an explanation
of the circumstances under which Participants and their Beneficiaries may give investment
instructions, including, but not limited to, the following to the extent required under the
Department of Labor regulations or guidance:




(1) the conveyance of instructions by the Participants and their Beneficiaries to invest
Participant Directed Accounts in Directed Investment Options;




(2) the name, address and phone number of the Fiduciary (and, if applicable, the person or
persons designated by the Fiduciary to act on its behalf) responsible for providing
information to the Participant or a Beneficiary upon request relating to the Directed
Investment Options;




(3) applicable restrictions on transfers to and from any Designated Investment Alternative;




(4) any restrictions on the exercise of voting, tender and similar rights related to a
Directed Investment Option by the Participants or their Beneficiaries;




(5) a description of any transaction fees and expenses which affect the balances in
Participant Directed Accounts in connection with the purchase or sale of Directed Investment
Options; and




(6) general procedures for the dissemination of investment and other information relating to
the Designated Investment Alternatives as deemed necessary or appropriate, including but not
limited to a description of the following:




(i) the investment vehicles available under the Plan, including specific information
regarding any Designated Investment Alternative;




(ii) any designated Investment Managers; and




(iii) a description of the additional information which may be obtained upon request from
the Fiduciary designated to provide such information.




(g) Other documents. Any information regarding investments available under the Plan, to the
extent not required to be described in the Participant Direction Procedures, may be provided to
the Participant in one or more written documents (or in any other form including, but not
limited to, electronic media) which are separate from the Participant Direction Procedures and
are not thereby incorporated by reference into this Plan.




(h) Instructions, guidelines or policies. The Administrator may, in its discretion, include or
exclude by amendment or other action from the Participant Direction Procedures such
instructions, guidelines or policies as it deems necessary or appropriate to ensure proper
administration of the Plan, and may interpret the same accordingly.



4.13 QUALIFIED MILITARY SERVICE




     Notwithstanding any provision of this Plan to the contrary, contributions, benefits and
service will be provided in accordance with Code Section 414(u).



ARTICLE V

VALUATIONS




5.1 VALUATION OF THE TRUST FUND




     The Administrator shall direct the Trustee, as of each Valuation Date, to determine the net
worth of the assets comprising the Trust Fund as it exists on the Valuation Date. In determining
such net worth, the Trustee shall value the assets comprising the Trust Fund at their fair market
value as of the Valuation Date and shall deduct all expenses for which the Trustee has not yet
obtained reimbursement from the



31









 




Employer or the Trust Fund. The Trustee may update the value of any shares held in the
Participant Directed Account by reference to the number of shares held by that Participant,
priced at the market value as of the Valuation Date.




5.2 METHOD OF VALUATION




     In determining the fair market value of securities held in the Trust Fund which are listed
on a registered stock exchange, the Administrator shall direct the Trustee to value the same at
the prices they were last traded on such exchange preceding the close of business on the
Valuation Date. If such securities were not traded on the Valuation Date, or if the exchange on
which they are traded was not open for business on the Valuation Date, then the securities shall
be valued at the prices at which they were last traded prior to the Valuation Date. Any unlisted
security held in the Trust Fund shall be valued at its bid price next preceding the close of
business on the Valuation Date, which bid price shall be obtained from a registered broker or an
investment banker. In determining the fair market value of assets other than securities for which
trading or bid prices can be obtained, the Trustee may appraise such assets itself, or in its
discretion, employ one or more appraisers for that purpose and rely on the values established by
such appraiser or appraisers.



ARTICLE VI

DETERMINATION AND DISTRIBUTION OF BENEFITS




6.1 DETERMINATION OF BENEFITS UPON RETIREMENT




     Every Participant may terminate employment with the Employer and retire for the purposes
hereof on the Participant’s Normal Retirement Date. However, a Participant may postpone the
termination of employment with the Employer to a later date, in which event the participation of
such Participant in the Plan, including the right to receive allocations pursuant to Section 4.4,
shall continue until such Participant’s Late Retirement Date. Upon a Participant’s Retirement
Date or attainment of Normal Retirement Date without termination of employment with the Employer
(subject to the provisions of Section 4.2(d)), or as soon thereafter as is practicable, the
Administrator shall direct the distribution, at the election of the Participant, of the
Participant’s entire Vested interest in the Plan (or any portion thereof), in accordance with
Section 6.5.



6.2 DETERMINATION OF BENEFITS UPON DEATH





(a) 100% Vesting on death. Upon the death of a Participant before the Participant’s Retirement
Date or other termination of employment, all amounts credited to such Participant’s Account
shall become fully Vested.




(b) Distribution upon death. Upon the death of a Participant, the Administrator shall direct,
in accordance with the provisions of Sections 6.6 and 6.7, the distribution of any remaining
amounts credited to the accounts of the deceased Participant to such Participant’s Beneficiary.




(c) Determination of death benefit by Administrator. The Administrator may require such proper
proof of death and such evidence of the right of any person to receive payment of the value of
the account of a deceased Participant as the Administrator may deem desirable. The
Administrator’s determination of death and of the right of any person to receive payment shall
be conclusive.




(d) Beneficiary designation. The Beneficiary of the death benefit payable pursuant to this
Section shall be the Participant’s surviving spouse. Except, however, the Participant may
designate a Beneficiary other than the spouse if:




(1) the spouse has waived the right to be the Participant’s Beneficiary, or




(2) the Participant is legally separated or has been abandoned (within the meaning of local
law) and the Participant has a court order to such effect (and there is no qualified
domestic relations order as defined in Code Section 414(p) which provides otherwise), or




(3) the Participant has no spouse, or




(4) the spouse cannot be located.




     In such event, the designation of a Beneficiary shall be made on a form satisfactory to
the Administrator. A Participant may at any time revoke a designation of a Beneficiary or
change a Beneficiary by filing written notice (or in such other form as permitted by the
Internal Revenue Service) of such revocation or change with the Administrator. However, the
Participant’s spouse must again consent in writing (or in such other form as permitted by the
Internal Revenue Service) to any change in Beneficiary unless the original consent
acknowledged that the spouse had the right to limit consent only to a specific Beneficiary and
that the spouse voluntarily elected to relinquish such right.




(e) Beneficiary if no beneficiary elected by Participant. In the event no valid designation of
Beneficiary exists with respect to all or a portion of the death benefit, or if the Beneficiary
of such death benefit is not alive at the time of the Participant’s death and no contingent
Beneficiary has been designated, then such death benefit will be paid in the following order of
priority to:




(1) the Participant’s surviving spouse;




(2) the Participant’s children, including adopted children, per stirpes;



32









 






(3) the Participant’s surviving parents, in equal shares; or




(4) the Participant’s estate.




     If the Beneficiary does not predecease the Participant, but dies prior to distribution
of the death benefit, the death benefit will be paid to the Beneficiary’s designated
Beneficiary (or there is no designated Beneficiary, to the Beneficiary’s estate).




(f) Divorce revokes spousal beneficiary designation. Notwithstanding anything in this Section
to the contrary, if a Participant has designated the spouse as a Beneficiary, then a divorce
decree or a legal separation that relates to such spouse shall revoke the Participant’s
designation of the spouse as a Beneficiary unless the decree or a qualified domestic relations
order (within the meaning of Code Section 414(p)) provides otherwise or a subsequent
beneficiary designation is made.




(g) Spousal consent. Any consent by the Participant’s spouse to waive any rights to the death
benefit must be in writing (or in such other form as permitted by the Internal Revenue
Service), must acknowledge the effect of such waiver, and be witnessed by a Plan
representative or a notary public. Further, the spouse’s consent must be irrevocable and must
acknowledge the specific nonspouse Beneficiary.



6.3 DISABILITY RETIREMENT BENEFITS




     In the event of a Participant’s Disability prior to the Participant’s Retirement Date or
other termination of employment, all amounts credited to such Participant’s Account shall become
fully Vested. In the event of a Participant’s Disability, the Administrator, in accordance with
the provisions of Sections 6.5 and 6.7, shall direct the distribution to such Participant of all
Vested amounts credited to such Participant’s Account.



6.4 DETERMINATION OF BENEFITS UPON TERMINATION





(a) Payment on termination of employment. If a Participant’s employment with the Employer is
terminated for any reason other than death, Disability or retirement, then such Participant
shall be entitled to such benefits as are provided hereinafter pursuant to this Section 6.4.




     Distribution of the funds due to a Terminated Participant shall be made on the
occurrence of an event which would result in a distributable event had the Terminated
Participant remained in the employ of the Employer (upon the Participant’s death, Disability
or Normal Retirement). However, at the election of the Participant, the Administrator shall
direct the distribution of the entire Vested portion of the Terminated Participant’s Account
be payable to such Terminated Participant as soon as administratively feasible after
termination of employment. Any distribution under this paragraph shall be made in a manner
which is consistent with and satisfies the provisions of Section 6.5, including, but not
limited to, all notice and consent requirements of Code Section 411(a)(11) and the
Regulations thereunder.




     For purposes of this Section 6.4, if the value of a Terminated Participant’s Vested
benefit is zero, the Terminated Participant shall be deemed to have received a distribution
of such Vested benefit.




(b) Vesting schedule. The Vested portion of the Account of any Participant attributable to
Employer contributions shall be a percentage of the total amount credited to the Participant’s
Accounts determined on the basis of the Participant’s number of Years of Service according to
the following schedule(s):




(1) The Elective Deferral Account, the Qualified Matching Contribution Account and the
Qualified Nonelective Contribution Account shall be 100% Vested regardless of a
Participant’s number of Years of Service.




(2) Effective for Plan Years beginning after December 31, 2001, the Vested portion of the
Matching Contribution Account attributable to matching contributions made for Plan Years
that began after December 31, 2001 shall be determined in accordance with the following
vesting schedule:



          Vesting Schedule

Years of Service                
                         Percentage





(c) No reduction in Vested percentage due to change in vesting schedule. Notwithstanding the
vesting schedule above, the Vested percentage of a Participant’s Account shall not be less
than the Vested percentage attained as of the later of the effective date or adoption date of
this amendment and restatement.




(d) Time of application of vesting schedule liberalization. In the absence of any provision to
the contrary, any direct or indirect increase to a Participant’s Vested percentage (at any
point on a vesting schedule) will not apply to a Participant unless and until such Participant
completes an Hour of Service after the effective date of such amendment.




(e) 100% Vesting on partial or full Plan termination. Notwithstanding the vesting schedule
above, upon the complete discontinuance of the Employer contributions to the Plan or upon any full or partial
termination of the Plan, all amounts then credited to the account of any affected
Participant shall become 100% Vested and shall not thereafter be subject to Forfeiture.



33









 






(f) Continuation of old schedule if 3 years of service. The computation of a Participant’s
nonforfeitable percentage of such Participant’s interest in the Plan shall not be reduced as the
result of any direct or indirect amendment to this Plan. In the event that the Plan is amended
to change or modify any vesting schedule, or if the Plan is amended in any way that directly or
indirectly affects the computation of the Participant’s nonforfeitable percentage, or if the
Plan is deemed amended by an automatic change to or from a top-heavy vesting schedule, then each
Participant with an Hour of Service after such change and who has at least three (3) Years of
Service as of the expiration date of the election period may elect to have such Participant’s
nonforfeitable percentage computed under the Plan without regard to such amendment or change. If
such a Participant fails to make such election, then such Participant shall be subject to the
new vesting schedule. The Participant’s election period shall commence on the date the amendment
is adopted or deemed to be made and shall end sixty (60) days after the latest of:




(1) the adoption date of the amendment,




(2) the effective date of the amendment, or




(3) the date the Participant receives written notice of the amendment from the Employer or
Administrator.



6.5 DISTRIBUTION OF BENEFITS





(a) The Administrator, pursuant to the election of the Participant, shall direct the Trustee to
distribute to a Participant or such Participant’s Beneficiary the amount (if any) to which the
Participant (or Beneficiary) has become entitled under the Plan in one lump- sum payment in cash
or in property allocated to the Participant’s Account.




(b) Any distribution to a Participant who has a Total Vested Benefit which exceeds $5,000 shall
require such Participant’s written consent (or in such other form as permitted by the Internal
Revenue Service) if such distribution occurs prior to the time the benefit is “immediately
distributable.” 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 later of the Participant’s Normal Retirement Age or age 62.




     Any such distribution may be made less than thirty (30) days after the notice required
under Regulation 1.411(a)-11(c) is given, provided that: (1) the Administrator clearly
informs the Participant that the Participant has a right to a period of at least thirty (30)
days after receiving the notice to consider the decision of whether or not to elect a
distribution (and, if applicable, a particular distribution option), and (2) the Participant,
after receiving the notice, affirmatively elects a distribution.




(c) If a mandatory distribution greater than $1,000 is made in accordance with the provisions
of the Plan providing for an automatic distribution to a Participant without the Participant’s
consent, and the Participant does not elect to have such distribution paid directly to an
eligible retirement plan specified by the Participant in a direct rollover (in accordance with
the direct rollover provisions of the Plan) or to receive the distribution directly, then the
Administrator shall direct that the distribution be made in a direct rollover to an Individual
Retirement Account described in Code Section 408(a) or an Individual Retirement Annuity
described in Code Section 408(b), as designated by the Administrator. The Administrator may
operationally implement this provision with respect to distributions that are $1,000 or less.




(d) All annuity Contracts under this Plan shall be non-transferable when distributed.
Furthermore, the terms of any annuity Contract purchased and distributed to a Participant or
spouse shall comply with all of the requirements of the Plan.




(e) If a distribution is made to a Participant who has not severed employment and who is not
fully Vested in the Participant’s Account and the Participant may increase the Vested percentage
in such account, then, at any relevant time the Participant’s Vested portion of the account will
be equal to an amount (“X”) determined by the formula:



X equals P(AB plus D) – D





     For purposes of applying the formula: P is the Vested percentage at the relevant time, AB
is the account balance at the relevant time, and D is the amount of distribution, and the
relevant time is the time at which, under the Plan, the Vested percentage in the account cannot
increase.




(f) Required minimum distributions (Code Section 401(a)(9)). Notwithstanding any provision in
the Plan to the contrary, the distribution of a Participant’s benefits shall be made in
accordance with the requirements of Section 6.8.



6.6 DISTRIBUTION OF BENEFITS UPON DEATH





(a) The death benefit payable pursuant to Section 6.2 shall be paid to the Participant’s
Beneficiary in one lump-sum payment in cash or in property allocated to the Participant’s
Account subject to the rules of Section 6.8.




(b) Notwithstanding any provision in the Plan to the contrary, distributions upon the death of a
Participant shall comply with the requirements of Section 6.8.



34









 





6.7 TIME OF DISTRIBUTION




     Except as limited by Section 6.8, whenever a distribution is to be made, or a series of
payments are to commence, the distribution or series of payments may be made or begun as soon as
practicable. However, unless a Participant elects in writing to defer the receipt of benefits
(such election may not result in a death benefit that is more than incidental), the payment of
benefits shall begin not later than the sixtieth (60th) day after the close of the Plan Year in
which the latest of the following events occurs: (a) the date on which the Participant attains the
earlier of age 65 or the Normal Retirement Age specified herein; (b) the tenth (10th) anniversary
of the year in which the Participant commenced participation in the Plan; or (c) the date the
Participant terminates service with the Employer.



     Notwithstanding the foregoing, the failure of a Participant and, if applicable, the
Participant’s spouse, to consent to a distribution that is immediately distributable (within the
meaning of Section 6.5), shall be deemed to be an election to defer the commencement of payment of
any benefit sufficient to satisfy this Section.



6.8 REQUIRED MINIMUM DISTRIBUTIONS





(a) General Rules




(1) Effective Date. Unless otherwise specified, the provisions of this Section will apply
for purposes of determining required minimum distributions for calendar years beginning with
the 2002 calendar year.




(2) Precedence. The requirements of this Section shall apply to any distribution of a
Participant’s interest in the Plan and take precedence over any inconsistent provisions of
the Plan.




(3) Requirements of Treasury Regulations Incorporated. All distributions required under this
Section will be determined and made in accordance with the Regulations under Code Section
401(a)(9) and the minimum distribution incidental benefit requirement of Code Section
401(a)(9)(G).




(b) Time and manner of distribution




(1) Required beginning date. The Participant’s entire interest will be distributed, or begin
to be distributed, to the Participant no later than the Participant’s required beginning
date.




(2) Death of Participant before distributions begin. If the Participant dies before
distributions begin, the Participant’s entire death benefit will be distributed, or begin to
be distributed, as follows:




(i) Distributions of the required minimum distributions will begin by December 31 of the
calendar year immediately following the calendar year in which the Participant died, or,
if the Participant’s surviving spouse is the Participant’s designated beneficiary, by
December 31 of the calendar year in which the Participant would have attained age 70
1/2, if later.




(ii) If there is no beneficiary as of September 30 of the year following the year of the
Participant’s death, the distribution of the Participant’s death benefit will be
completed by December 31 of the calendar year containing the fifth anniversary of the
Participant’s death.




(iii) If the Participant’s surviving spouse is the Participant’s sole designated
beneficiary and the surviving spouse dies after the Participant but before distributions
to the surviving spouse begin, this Section 6.8(b), other than this paragraph, will
apply as if the surviving spouse were the Participant. Thus, in all such cases, the time
at which distributions must commence (or be completed by) shall be determined solely by
reference to the year that the Participant died, and not the year in which the
Participant would have attained age 70 1/2.




     For purposes of this Section 6.8(b), unless a surviving spouse is electing to commence
benefits based upon the date that the Participant would have attained age 70 1/2,
distributions are considered to begin on the Participant’s required beginning date. If the
surviving-spouse election applies, distributions are considered to begin on the date
distributions are required to begin to the surviving spouse under Section 6.8(b).




(3) Forms of distribution. Unless the Participant’s interest is distributed in a single sum
on or before the required beginning date, as of the first distribution calendar year
distributions will be made in accordance with Sections 6.8(c) and 6.8(d). All distributions
under this Section shall be made in a manner which is consistent with and satisfies the
provisions of Section 6.5, including, but not limited to, all notice and consent
requirements of Code Section 411(a)(11) and the Regulations thereunder.




35









 








(c) Required minimum distributions during Participant’s lifetime





(1) Amount of required minimum distribution for each distribution calendar year. During the
Participant’s lifetime, the minimum amount that will be distributed for each distribution
calendar year is the lesser of:




(i) the quotient obtained by dividing the Participant’s Account balance by the distribution
period in the Uniform Lifetime Table set forth in Regulation Section 1.401(a)(9)-9, using
the Participant’s age as of the Participant’s birthday in the distribution calendar year;
or




(ii) if the Participant’s sole designated beneficiary for the distribution calendar year is
the Participant’s spouse and the spouse is more than 10 years younger than the Participant,
the quotient obtained by dividing the Participant’s Account balance by the number in the
Joint and Last Survivor Table set forth in Regulation Section 1.401(a)(9)-9, using the
Participant’s and spouse’s attained ages as of the Participant’s and spouse’s birthdays in
the distribution calendar year.




(2) Lifetime required minimum distributions continue through year of Participant’s
death. Required minimum distributions will be determined under this Section 6.8(c) beginning
with the first distribution calendar year and up to and including the distribution calendar year
that includes the Participant’s date of death.



(d) Required minimum distributions after Participant’s death





(1) Death on or after date distributions begin.




(i) Participant survived by designated beneficiary. If the Participant dies on or after the
date distributions begin and there is a designated beneficiary, the minimum amount that
will be distributed for each distribution calendar year after the year of the Participant’s
death is the quotient obtained by dividing the Participant’s Account balance by the longer
of the remaining life expectancy of the Participant or the remaining life expectancy of the
Participant’s designated beneficiary, determined as follows:




(A) The Participant’s remaining life expectancy is calculated using the age of the
Participant in the year of death, reduced by one for each subsequent year.




(B) If the Participant’s surviving spouse is the Participant’s sole designated
beneficiary, the remaining life expectancy of the surviving spouse is calculated for each
distribution calendar year after the year of the Participant’s death using the surviving
spouse’s age as of the spouse’s birthday in that year. For distribution calendar years
after the year of the surviving spouse’s death, the remaining life expectancy of the
surviving spouse is calculated using the age of the surviving spouse as of the spouse’s
birthday in the calendar year of the spouse’s death, reduced by one for each subsequent
calendar year.




(C) If the Participant’s surviving spouse is not the Participant’s sole designated
beneficiary, the designated beneficiary’s remaining life expectancy is calculated using
the age of the beneficiary in the year following the year of the Participant’s death,
reduced by one for each subsequent year.




(ii) No designated beneficiary. If the Participant dies on or after the date distributions
begin and there is no designated beneficiary as of September 30 of the year after the year
of the Participant’s death, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the quotient
obtained by dividing the Participant’s Account balance by the Participant’s remaining life
expectancy calculated using the age of the Participant in the year of death, reduced by one
for each subsequent year.




(2) Death before date distributions begin.




(i) Participant survived by designated beneficiary. Except as provided in Section
6.8(b)(3), if the Participant dies before the date distributions begin and there is a
designated beneficiary, the minimum amount that will be distributed for each distribution
calendar year after the year of the Participant’s death is the quotient obtained by
dividing the Participant’s Account balance by the remaining life expectancy of the
Participant’s designated beneficiary, determined as provided in Section 6.8(d)(1).




(ii) No designated beneficiary. If the Participant dies before the date distributions begin
and there is no designated beneficiary as of September 30 of the year following the year of
the Participant’s death, distribution of the Participant’s entire interest will be
completed by December 31 of the calendar year containing the fifth anniversary of the
Participant’s death.




(iii) Death of surviving spouse before distributions to surviving spouse are required to
begin. If the Participant dies before the date distributions begin, the Participant’s
surviving spouse is the Participant’s sole designated beneficiary, and the surviving spouse
dies before distributions are required to begin to the surviving spouse under Section
6.8(b), this Section 6.8(d)(2) will apply as if the surviving spouse were the Participant.




36












 






	(e)	 	Definitions. For purposes of this Section, the following definitions apply:






(1) “Designated beneficiary” means the individual who is designated as the Beneficiary under the
Plan and is the designated beneficiary under Code Section 401(a)(9) and Regulation Section
1.401(a)(9)-4, Q&A-4.




(2) “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 under Section 6.8(b). The required minimum distribution for the Participant’s
first distribution calendar year will be made on or before the Participant’s “required beginning
date.” The required minimum distribution for other distribution calendar years, including the
required minimum distribution for the distribution calendar year in which the Participant’s
“required beginning date” occurs, will be made on or before December 31 of that distribution
calendar year.




(3) “Life expectancy” means the life expectancy as computed by use of the Single Life Table in
Regulation Section 1.401(a)(9)-9, Q&A-1.




(4) “Participant’s account balance” means the “Participant’s 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 made and allocated or
Forfeitures allocated to the account balance as of dates in the valuation calendar year after
the Valuation Date and decreased by distributions made in the valuation calendar year after the
Valuation Date. For this purpose, the Administrator may exclude contributions that are allocated
to the account balance as of dates in the valuation calendar year after the Valuation Date, but
that are not actually made during the valuation calendar year. The account balance for the
valuation calendar year includes any amounts rolled over or transferred to the Plan either in
the valuation calendar year or in the Distribution calendar year if distributed or transferred
in the valuation calendar year.




(5) “Required beginning date” means, with respect to any Participant, April 1 of the calendar
year following the later of the calendar year in which the Participant attains age 70 1/2 or the
calendar year in which the Participant retires, except that benefit distributions to a 5-percent
owner must commence by April 1 of the calendar year following the calendar year in which the
Participant attains age 70 1/2.




(6) “5-percent owner” means a Participant who is a 5-percent owner as defined in Code Section
416 at any time during the Plan Year ending with or within the calendar year in which such owner
attains age 70 1/2. 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.




	(f)	 	Transition rules






(1) Rules for plans in existence before 1997. Any required minimum distribution rights conferred
on participants in order to comply with (or as a means of complying with) the changes to Code
Section 401(a)(9) made by the Small Business Jobs Protection Act of 1996 that were still in
effect immediately prior to this restatement shall be preserved.




(2) Applicable regulations. Notwithstanding any Plan provision to the contrary, required minimum
distributions before 2003 were made as follows:




(i) 2001. Required minimum distributions for calendar year 2001 were made pursuant to the
proposed Regulations under Code Section 401(a)(9) published in the Federal Register on
January 17, 2001 (the “2001 Proposed Regulations”). If distributions were made in 2001 under
the 1987 Proposed Regulations prior to the date in 2001 the plan began operating under the
2001 Proposed Regulations, the special transition rule in Announcement 2001-82, 2001-2 C.B.
123, applied.




(ii) 2002. Required minimum distributions for calendar year 2002 were made pursuant to the
Final and Temporary Regulations under Code Section 401(a)(9) published in the Federal
Register on April 17, 2002, (the “2002 Final and Temporary Regulations”) which are
described in Sections (b) through (f) of this Section. If distributions were made in 2002
under either the 1987 Proposed Regulations or the 2001 Proposed Regulations prior to the
date in 2002 the Plan began operating under the 2002 Final and Temporary Regulations, the
special transition rule in Section 1.2 of the model amendment in Revenue Procedure 2002-29,
2002-1 C.B. 1176, applied.




	(g)	 	Statutory (TEFRA) Transition Rules






(1) Notwithstanding the other provisions of this Section, other than the spouse’s right of
consent afforded under the Plan, distributions may be made on behalf of any Participant,
including a five percent (5%) owner, who has made a designation in accordance with Section
242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and in accordance with all of
the following requirements (regardless of when such distribution commences):




(i) The distribution by the Plan is one which would not have disqualified such plan under
Code Section 401(a)(9) as in effect prior to amendment by the Deficit Reduction Act of
1984.



37









 






(ii) The distribution is in accordance with a method of distribution designated by the
Participant whose interest in the plan is being distributed or, if the Participant is
deceased, by a Beneficiary of such Participant.




(iii) Such designation was in writing, was signed by the Participant or the Beneficiary,
and was made before January 1, 1984.




(iv) The Participant had accrued a benefit under the Plan as of December 31, 1983.




(v) The method of distribution designated by the Participant or the Beneficiary
specifies the time at which distribution will commence, the period over which
distributions will be made, and in the case of any distribution upon the Participant’s
death, the Beneficiaries of the Participant listed in order of priority.




(2) A distribution upon death will not be covered by the transitional rule of this
subsection unless the information in the designation contains the required information
described above with respect to the distributions to be made upon the death of the
Participant.




(3) For any distribution which commences before January 1, 1984, but continues after
December 31, 1983, the Participant, or the Beneficiary, to whom such distribution is being
made, will be presumed to have designated the method of distribution under which the
distribution is being made if the method of distribution was specified in writing and the
distribution satisfies the requirements in (1)(i) and
(1)(v) of this subsection.




(4) If a designation is revoked, any subsequent distribution must satisfy the requirements
of Code Section 401(a)(9) and the Regulations thereunder. If a designation is revoked
subsequent to the date distributions are required to begin, the Plan must distribute by the
end of the calendar year following the calendar year in which the revocation occurs the
total amount not yet distributed which would have been required to have been distributed to
satisfy Code Section 401(a)(9) and the Regulations thereunder, but for the Section 242(b)(2)
election. For calendar years beginning after December 31, 1988, such distributions must meet
the minimum distribution incidental benefit requirements. Any changes in the designation
will be considered to be a revocation of the designation. However, the mere substitution or
addition of another Beneficiary (one not named in the designation) under the designation
will not be considered to be a revocation of the designation, so long as such substitution
or addition docs not alter the period over which distributions are to be made under the
designation, directly or indirectly (for example, by altering the relevant measuring life).




(5) In the case in which an amount is transferred or rolled over from one plan to another
plan, the rules in Regulation Section 1.401(a)(9)-8, Q&A-14 and Q&A-15, shall apply.




	6.9	 	DISTRIBUTION FOR MINOR OR INCOMPETENT INDIVIDUAL





     In the event a distribution is to be made to a minor or incompetent individual, then the
Administrator may direct that such distribution be paid to the court-appointed legal guardian or
any other person authorized under state law to receive such distribution, or if none, then in the
case of a minor Beneficiary, to a parent of such Beneficiary, or to the custodian for such
Beneficiary under the Uniform Gift to Minors Act or Gift to Minors Act, if such is permitted by
the laws of the state in which said Beneficiary resides. Such a payment to the guardian, custodian
or parent of a minor or incompetent individual shall fully discharge the Trustee, Employer, and
Plan from further liability on account thereof.




	6.10	 	LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN





     In the event that all, or any portion, of the distribution payable to a Participant or
Beneficiary hereunder shall, at the later of the Participant’s attainment of age 62 or Normal
Retirement Age, remain unpaid solely by reason of the inability of the Administrator, after sending
a registered letter, return receipt requested, to the last known address, and after further
diligent effort, to ascertain the whereabouts of such Participant or Beneficiary, the amount so
distributable shall be treated as a Forfeiture pursuant to the Plan. Notwithstanding the foregoing,
effective with respect to distributions made after March 28, 2005, if the Plan provides for
mandatory distributions and the amount to be distributed to a Participant or Beneficiary does not
exceed $1,000, then the amount distributable may, in the sole discretion of the Administrator,
either be treated as a Forfeiture, or be paid directly to an individual retirement account
described in Code Section 408(a) or an individual retirement annuity described in Code Section
408(b) at the time it is determined that the whereabouts of the Participant or the Participant’s
Beneficiary cannot be ascertained. In the event a Participant or Beneficiary is located subsequent
to the Forfeiture, such benefit shall be restored, first from Forfeitures, if any, and then from an
additional Employer contribution if necessary. Upon Plan termination, the portion of the
distributable amount that is an eligible rollover distribution as defined in Plan Section 6.14 may
be paid directly to an individual retirement account described in Code Section 408(a) or an
individual retirement annuity described in Code Section 408(b). However, regardless of the
preceding, a benefit that is lost by reason of escheat under applicable state law is not treated as
a Forfeiture for purposes of this Section nor as an impermissible forfeiture under the Code.




	6.11	 	PRE-RETIREMENT DISTRIBUTION OF EMPLOYER CONTRIBUTIONS





     At such time as a Participant shall have attained Normal Retirement Age, the Administrator,
at the election of the Participant who has not severed employment with the Employer, shall direct
the Trustee to distribute all or a portion of the amount then credited to all accounts maintained
on behalf of the Participant.



38









 





     In the event that the Administrator makes such a distribution, the Participant shall continue
to be eligible to participate in the Plan on the same basis as any other Employee. Any
distribution made pursuant to this Section shall be made in a manner consistent with Section 6.5,
including, but not limited to, all notice and consent requirements of
Code Section 411(a)(11)
and the Regulations thereunder.



     For purposes of this Section, a Participant shall also mean an Employee or Former Employee with
an Account Balance under the Plan.



     Notwithstanding anything in this Section to the contrary, pre-retirement distributions from a
Participant’s Elective Deferral Account, Qualified Nonelective Account, or Qualified Matching
Account shall not be permitted prior to the Participant attaining age 59 1/2 or one of the other
events described in Section 4.2(d).




	6.12	 	ADVANCE DISTRIBUTION FOR HARDSHIP






(a) The Administrator, at the election of the Participant whether or not currently employed as
an Employee, shall direct the Trustee to distribute to any Participant from the Vested portion
of the Participant’s Account the amount necessary to satisfy the immediate and heavy financial
need of the Participant, subject to the limitations of this Section. Any distribution made
pursuant to this Section shall be deemed to be made as of the first day of the Plan Year or, if
later, the Valuation Date immediately preceding the date of distribution. Effective with respect
to Plan Years beginning in 2006, any withdrawal made pursuant to this Section shall be deemed to
be on account of an immediate and heavy financial need of the Participant if the withdrawal is
for:




(1) Expenses for (or necessary to obtain) medical care (for the Participant or the spouse or
dependent of the Participant) that would be deductible by the Participant under Code Section
213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross
income);




(2) Costs directly related to the purchase (excluding mortgage payments) of a principal
residence for the Participant;




(3) Payments for burial or funeral expenses for the Participant’s deceased parent, spouse,
children or dependents (as defined in Code Section 152, and, for taxable years beginning on
or after January 1, 2005, without regard to Code
Section 152(d)(1)(B));




(4) Payment of tuition, related educational fees, and room and board expenses, for up to the
next twelve (12) months of post-secondary education for the Participant, the Participant’s
spouse, children, or dependents (as defined in Code Section 152, and, for taxable years
beginning on or after January 1, 2005, without regard to Code
Sections 152(b)(1), (b)(2),
and (d)(1)(B));




(5) Payments necessary to prevent the eviction of the Participant from the Participant’s
principal residence or foreclosure on the mortgage on that residence; or




(6) For Plan Years beginning on or after January 1, 2006, expenses for the repair of damage
to the Participant’s principal residence that would qualify for the casualty deduction under
Code Section 165 (determined without regard to whether the loss exceeds 10% of adjusted
gross income).




(b) No distribution shall be made pursuant to this Section unless the Administrator, based upon
the Participant’s representation and such other facts as are known to the Administrator,
determines that all of the following conditions are satisfied:




(1) The distribution is not in excess of the amount of the immediate and heavy financial
need of the Participant. The amount of the immediate and heavy financial need may include
any amounts necessary to pay any federal, state, or local income taxes or penalties
reasonably anticipated to result from the distribution;




(2) The Participant has obtained all distributions, other than hardship distributions, and
all nontaxable (at the time of the loan) loans currently available under all plans
maintained by the Employer;




(3) On or after December 31, 2001, the Plan, and all other plans maintained by the Employer,
provide that the Participant’s Elective Deferrals and After-Tax Voluntary Contributions will
be suspended for at least six (6) months after receipt of the hardship distribution or, the
Participant, pursuant to a legally enforceable agreement, will suspend Elective Deferrals
and After-Tax Voluntary Contributions to the Plan and all other plans maintained by the
Employer for at least six (6) months after receipt of the hardship distribution; and




(4) For hardship distributions made prior to 2002, the Plan, and all other plans maintained
by the Employer, provide that the Participant may not make Elective Deferrals 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 Deferrals for the taxable year
of the hardship distribution.




(c) Notwithstanding the above, distributions from the Participant’s “elective account” pursuant
to this Section shall be limited in amount, as of the date of distribution, to the Participant’s
“elective account” as of the end of the last Plan Year ending before July 1, 1989, plus the sum
of the Participant’s Elective Deferrals after such date, reduced by the amount of any previous
distributions from this Account pursuant to this Section and Section 6.11. A Participant’s
“elective account” shall be the amount attributable to Elective Deferrals, Qualified Matching
Contributions, and Qualified Nonelective Contributions as of the end of the last Plan Year
ending before July 1, 1989.




39









 






(d) Any distribution made pursuant to this Section shall be made in a manner which is consistent
with and satisfies the provisions of Section 6.5, including, but not limited to, all notice and
consent requirements of Code Section 411(a)(11) and the Regulations thereunder.




(e) The following limitations apply to hardship distributions:




(1) No such distribution shall be made from an Account until such Account has become fully
Vested.




(f) Hardship distributions may be made from only
the following accounts:




(i) Elective Deferral
Account, subject to the limitations noted above




	6.13	 	QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION





     All rights and benefits, including elections, provided to a Participant in this Plan shall be
subject to the rights afforded to any alternate payee under a qualified domestic relations order.
Furthermore, a distribution to an alternate payee shall be permitted if such distribution is
authorized by a qualified domestic relations order, even if the affected Participant has not
separated from service and has not reached the earliest retirement age. For the purposes of this
Section, the terms “alternate payee,” “qualified domestic relations order” and “earliest
retirement age” shall have the meaning set forth under Code Section 414(p).




	6.14	 	DIRECT ROLLOVER






(a) Right to direct partial rollover. Notwithstanding any provision of the Plan to the contrary
that would otherwise limit a distributee’s election under this Section, effective for Plan Years
beginning on or after January 1, 2002, a distributee may elect, at the time and in the manner
prescribed by the Administrator, to have only a portion of an eligible rollover distribution
paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
However, the minimum partial rollover must equal at least $500.




(b) For purposes of this Section the following definitions shall apply:




(1) An “eligible rollover distribution” means any distribution described in Code Section
402(c)(4) and generally includes any distribution of all or any portion of the balance to
the credit of the distributee, except that an eligible rollover distribution does not
include: any distribution that is one of a series of substantially equal periodic payments
(not less frequently than annually) made for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee and the
distributee’s Designated Beneficiary, or for a specified period of ten (10) years or more;
any distribution to the extent such distribution is required under Code Section 401(a)(9);
the portion of any other distribution(s) that is not includible in gross income (determined
without regard to the exclusion for net unrealized appreciation with respect to employer
securities); and any other distribution reasonably expected to total less than $200 during a
year. Any amount that is distributed on account of hardship shall not be an eligible
rollover distribution and the distributee may not elect to have any portion of such a
distribution paid directly to an eligible retirement plan.




(2) An “eligible retirement plan” is an individual retirement account described in Code
Section 408(a), an individual retirement annuity described in Code Section 408(b), (other
than an endowment contract), a qualified trust (an employees’ trust) described in Code
Section 401(a) which is exempt from tax under Code Section 501(a) and which agrees to
separately account for amounts transferred into such plan from this Plan, an annuity plan
described in Code Section 403(a), an eligible deferred compensation plan described in Code
Section 457(b) which is maintained by a state, political subdivision of a state, or any
agency or instrumentality thereof which agrees to separately account for amounts transferred
into such plan from this Plan, and an annuity contract described in Code Section 403(b) that
accepts the distributee’s eligible rollover distribution. The definition of eligible
retirement plan shall also apply in the case of a distribution to a surviving spouse, or to
a spouse or former spouse who is the alternate payee under a qualified domestic relation
order, as defined in Code Section 414(p).




(3) A “distributee” includes an Employee or Former Employee. In addition, the Employee’s or
Former Employee’s surviving spouse and the Employee’s or Former Employee’s spouse or former
spouse who is the alternate payee under a qualified domestic relations order, as defined in
Code Section 414(p), are distributees with regard to the interest of the spouse or former
spouse.




(4) A “direct rollover” is a payment by the Plan to the “eligible retirement plan” specified
by the distributee.




(c) Participant Notice. A Participant entitled to an eligible rollover distribution must receive
a written explanation of his/her right to a direct rollover, the tax consequences of not making
a direct rollover, and, if applicable, any available special income tax elections. The notice
must be provided within the same 30-to-90 day timeframe applicable to the Participant consent
notice. The direct rollover notice must be provided to all Participants, unless the total amount
the Participant will receive as a distribution during the calendar year is expected to be less
than $200.




	6.15	 	TRANSFER OF ASSETS FROM A MONEY PURCHASE PLAN





     Notwithstanding any provision of this Plan to the contrary, to the extent that any optional
form of benefit under this Plan permits a distribution prior to the Employee’s attainment of
Normal Retirement Age, death, disability, or severance from employment, and prior to



40









 




Plan termination, the optional form of benefit is not available with respect to benefits
attributable to assets (including the post-transfer earnings thereon) and liabilities that are
transferred, within the meaning of Code Section 414(1), to this Plan from a money purchase pension
plan qualified under Code Section 401(a) (other than any portion of those assets and liabilities
attributable to after-tax voluntary employee contributions or to a direct or indirect rollover
contribution).



	6.16	 	CORRECTIVE DISTRIBUTIONS




     Nothing in this Article shall preclude the Administrator from making a distribution to a
Participant, to the extent such distribution is made to correct a qualification defect in
accordance with the corrective procedures under any voluntary compliance program.


ARTICLE VII

TRUSTEE




	7.1	 	BASIC RESPONSIBILITIES OF THE TRUSTEE





(a) The Trustee shall have the following categories of responsibilities:



(1) To invest, manage, and control the Plan assets subject, however, to the direction of a
Participant with respect to Participant Directed Accounts, the Employer, an Investment
Manager or other agent appointed by the Employer;



(2) At the direction of the Administrator, to pay benefits required under the Plan to be
paid to Participants, or, in the event of their death, to their Beneficiaries; and



(3) To maintain records of receipts and disbursements and furnish to the Employer and/or
Administrator for each Plan Year a written annual report pursuant to Section 7.8.



(b) In the event that the Trustee shall be directed by a Participant (pursuant to the
Participant Direction Procedures), the Employer, an Investment Manager or other agent appointed
by the Employer with respect to the investment of any or all Plan assets, the Trustee shall have
no liability with respect to the investment of such assets, but shall be responsible only to
execute such investment instructions as so directed.



(1) The Trustee shall be entitled to rely fully on the written (or other form acceptable to
the Administrator and the Trustee, including, but not limited to, voice recorded)
instructions of a Participant (pursuant to the Participant Direction Procedures), the
Employer, or any Fiduciary or nonfiduciary agent of the Employer, in the discharge of such
duties, and shall not be liable for any loss or other liability, resulting from such
direction (or lack of direction) of the investment of any part of the Plan assets.



(2) The Trustee may delegate the duty of executing such instructions to any nonfiduciary
agent, which may be an affiliate of the Trustee or any Plan representative.



(3) The Trustee may refuse to comply with any direction from the Participant in the event
the Trustee, in its sole and absolute discretion, deems such directions improper by virtue
of applicable law. The Trustee shall not be responsible or liable for any loss or expense
which may result from the Trustee’s refusal or failure to comply with any directions from
the Participant.



(4) Any costs and expenses related to compliance with the Participant’s directions shall be
borne by the Participant’s Directed Account, unless paid by the Employer.



(c) The Trustee is accountable to the Employer for the funds contributed to the Plan by the
Employer, but the Trustee does not have any duty to see that the contributions received comply
with the provisions of the Plan. The Trustee is not obligated to collect any contributions from
the Employer, nor is it under a duty to see that funds deposited with it are deposited in
accordance with the provisions of the Plan.



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



(e) The Trustee may employ a bank or trust company pursuant to the terms of its usual and
customary bank agency agreement, under which the duties of such bank or trust company shall be
of a custodial, clerical and record-keeping nature.


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


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	7.2	 	INVESTMENT POWERS AND DUTIES OF THE TRUSTEE




(a) The Trustee shall invest and reinvest the Trust Fund to keep the Trust Fund invested
without distinction between principal and income and in such securities or property, real or
personal, wherever situated, as the Trustee shall deem advisable, including, but not limited
to, stocks, common or preferred, open-end or closed-end mutual funds, bonds and other evidences
of indebtedness or ownership, and real estate or any interest therein. The Trustee shall at all
times in making investments of the Trust Fund consider, among other factors, the short and
long-term financial needs of the Plan on the basis of information furnished by the Employer. In
making such investments, the Trustee shall not be restricted to securities or other property of
the character expressly authorized by the applicable law for trust investments; however, the
Trustee shall give due regard to any limitations imposed by the Code or the Act so that at all
times the Plan may qualify as a qualified plan pursuant to Code Section 401(a). The Trustee
shall discharge its duties with respect to the Plan solely in the
interest of the Participants
and Beneficiaries and with the care, skill, prudence, and diligence under the circumstances
then prevailing that a prudent person acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of a like character and with like aims.



	7.3	 	OTHER POWERS OF THE TRUSTEE




     The Trustee, in addition to all powers and authorities under common law, statutory authority,
including the Act, and other provisions of the Plan, shall have the following powers and
authorities, to be exercised in the Trustee’s sole discretion:



(a) To purchase, or subscribe for, any securities or other property and to retain the same. In
conjunction with the purchase of securities, margin accounts may be opened and maintained;



(b) To sell, exchange, convey, transfer, grant options to purchase, or otherwise dispose of any
securities or other property held by the Trustee, by private contract or at public auction. No
person dealing with the Trustee shall be bound to see to the application of the purchase money
or to inquire into the validity, expediency, or propriety of any such sale or other disposition,
with or without advertisement;



(c) To vote upon any stocks, bonds, or other securities; to give general or special proxies or
powers of attorney with or without power of substitution; to exercise any conversion
privileges, subscription rights or other options, and to make any payments incidental thereto;
to oppose, or to consent to, or otherwise participate in, corporate reorganizations or other
changes affecting corporate securities, and to delegate discretionary powers, and to pay any
assessments or charges in connection therewith; and generally to exercise any of the powers of
an owner with respect to stocks, bonds, securities, or other property. However, the Trustee
shall not vote proxies relating to securities for which it has not been assigned full
investment management responsibilities. In those cases where another party has such investment
authority or discretion, the Trustee will deliver all proxies to said party, who will then have
full responsibility for voting those proxies;



(d) To cause any securities or other property to be registered in the name of the Trust, and the
books and records of the Trustee shall at all times show that all such investments are part of
the Trust Fund, or to cause any securities or other property to be registered in the Trustee’s
own name or in the name of a nominee or in a street name, provided such securities or other
property are held on behalf of the Plan by (i) a bank or trust company, (ii) a broker or dealer
registered under the Securities Exchange Act of 1934, or a nominee of such broker or dealer, or
(iii) a clearing agency as defined in Section 3(a)(23) of the Securities Exchange Act of 1934;



(e) To borrow or raise money for the purposes of the Plan in such amount, and upon such terms
and conditions, as the Trustee shall deem advisable; and for any sum so borrowed, to issue a
promissory note as Trustee, and to secure the repayment thereof by pledging all, or any part, of
the Trust Fund; and no person lending money to the Trustee shall be bound to see to the
application of the money lent or to inquire into the validity, expediency, or propriety of any
borrowing;



(f) To keep such portion of the Trust Fund in cash or cash balances as the Trustee may, from
time to time, deem to be in the best interests of the Plan, without liability for interest
thereon;


(g) To accept and retain for such time as the Trustee may deem advisable any securities or other
property received or acquired as Trustee hereunder, whether or not such securities or other
property would normally be purchased as investments hereunder;


(h) To make, execute, acknowledge, and deliver any and all documents of transfer and conveyance
and any and all other instruments that may be necessary or appropriate to carry out the powers
herein granted;


(i) To settle, compromise, or submit to arbitration any claims, debts, or damages due or owing
to or from the Plan (provided such arbitration does not apply to Participants or
Beneficiaries), to commence or defend suits or legal or administrative proceedings, and to
represent the Plan in all suits and legal and administrative proceedings;


(j) To employ suitable agents and counsel and to pay their reasonable expenses and
compensation, and such agent or counsel may also be agent or counsel for the Employer;


(k) To apply for and procure from responsible insurance companies, to be selected by the
Administrator, as an investment of the Trust Fund such annuity, or other Contracts (on the life
of any Participant, or on the life of any person in whom a Participant has an insurable
interest, or on the joint lives of a Participant and any person in whom the Participant has an
insurable interest) as the Administrator shall deem proper; to exercise, at the direction of
the person with the authority to do so, whatever rights and privileges


42







 




may be granted under such annuity or other Contracts; to collect, receive, and settle for the
proceeds of all such annuity or other Contracts as and when entitled to do so under the
provisions thereof;


(l) To invest funds of the Trust in time deposits or savings accounts bearing a reasonable rate
of interest or in cash or cash balances without liability for interest thereon, including the
specific authority to invest in any type of deposit of the Trustee (or of a financial
institution related to a Trustee);


(m) To invest in Treasury Bills and other forms of United States government obligations;


(n) To invest in shares of investment companies registered under the Investment Company Act of
1940, including any money market fund advised by or offered through any corporate trustee or
affiliate thereof;


(o) To sell, purchase and acquire put or call options if the options are traded on and
purchased through a national securities exchange registered under the Securities Exchange Act
of 1934, as amended, or, if the options are not traded on a national securities exchange, are
guaranteed by a member firm of the New York Stock Exchange regardless of whether such options
are covered;


(p) To deposit monies in federally insured savings accounts or certificates of deposit in banks
or savings and loan associations including the specific authority to make deposit into any
savings accounts or certificates of deposit of any corporate trustee or affiliate thereof;


(q) To pool all or any of the Trust Fund, from time to time, with assets belonging to any other
qualified employee pension benefit trust created by the Employer or any Affiliated Employer,
and to commingle such assets and make joint or common investments and carry joint accounts on
behalf of this Plan and Trust and such other trust or trusts, allocating undivided shares or
interests in such investments or accounts or any pooled assets of the two or more trusts in
accordance with their respective interests; and


(r) To do all such acts and exercise all such rights and privileges, although not specifically
mentioned herein, as the Trustee may deem necessary to carry out the purposes of the Plan,



	7.4	 	POWERS OF THE CUSTODIAN




     The
Employer may appoint a custodian of the Plan assets. A custodian has the same powers,
rights and duties as a nondiscretionary Trustee. Any reference in the Plan to a Trustee also is a
reference to a custodian unless the context of the Plan indicates otherwise. A limitation of the
Trustee’s liability by Plan provision also acts as a limitation of the custodian’s liability. The
Custodian will be protected from any liability with respect to actions taken pursuant to the
direction of the Trustee, Plan Administrator, the Employer, an Investment Manager, a Named
Fiduciary or other third party with authority to provide direction to the Custodian. The
resignation or removal of the custodian shall be made in accordance with Section 7.10 as though the
custodian were a Trustee.



	7.5	 	ALLOCATION AND DELEGATION OF RESPONSIBILITIES




     If more than one person is appointed as Trustee, the responsibilities of each Trustee may be
specified by the Employer and accepted in writing by each Trustee. In the event that no such
delegation is made by the Employer, the Trustees may allocate the responsibilities among themselves
in a written document signed by all Trustees, in which event the Trustees shall notify the Employer
and the Administrator in writing of such action and specify the responsibilities of each Trustee.
The Administrator thereafter shall accept and rely upon any documents executed by the appropriate
Trustee until such time as the Employer or the Trustees file with the Administrator a written
revocation of such designation.



	7.6	 	MAJORITY ACTION




     Except where there has been an allocation and delegation of powers, if there shall be more
than one Trustee, they shall act by a majority of their number, but may authorize one or more of
them to sign papers on their behalf.



	7.7	 	TRUSTEE’S COMPENSATION AND EXPENSES AND TAXES




     The Trustee shall be paid such reasonable compensation as set forth in the Trustee’s fee
schedule (if the Trustee has such a schedule) or as agreed upon in writing by the Employer and the
Trustee. However, an individual serving as Trustee who already receives full-time pay from the
Employer shall not receive compensation from the Plan. In addition, the Trustee shall be reimbursed
for any reasonable expenses, including reasonable counsel fees incurred by it as Trustee. Such
compensation and expenses shall be paid from the Trust Fund unless paid or advanced by the
Employer. All taxes of any kind whatsoever that may be levied or assessed under existing or future
laws upon, or in respect of, the Trust Fund or the income thereof, shall be paid from the Trust
Fund.



	7.8	 	ANNUAL REPORT OF THE TRUSTEE




(a) Annual report. Within a reasonable period of time after the later of the Anniversary Date
or receipt of the Employer contribution for each Plan Year, the Trustee, or its agent, shall
furnish to the Employer and Administrator a written statement of account with respect to the
Plan Year for which such contribution was made setting forth:


(1) the net income, or loss, of the Trust Fund;


43







 




(2) the gains, or losses, realized by the Trust Fund upon sales or other disposition of the
assets;


(3) the increase, or decrease, in the value of the Trust Fund;


(4) all payments and distributions made from the Trust Fund; and


(5) such
further information as the Trustee and/or Administrator deems appropriate.


(b) Employer approval of report. The Employer, promptly upon its receipt of each such statement
of account, shall acknowledge receipt thereof in writing and advise the Trustee and/or
Administrator of its approval or disapproval thereof. Failure by the Employer to disapprove any
such statement of account within thirty (30) days after its receipt thereof shall be deemed an
approval thereof. The approval by the Employer of any statement of account shall be binding on
the Employer and the Trustee as to all matters contained in the statement to the same extent as
if the account of the Trustee had been settled by judgment or decree in an action for a
judicial settlement of its account in a court of competent jurisdiction in which the Trustee,
the Employer and all persons having or claiming an interest in the Plan were parties. However,
nothing contained in this Section shall deprive the Trustee of its right to have its accounts
judicially settled if the Trustee so desires.



	7.9	 	AUDIT





(a) Duty to engage accountant. If an audit of the Plan’s records shall be required by the Act
and the regulations thereunder for any Plan Year, the Administrator shall engage on behalf of
all Participants an independent qualified public accountant for that purpose. Such accountant
shall, after an audit of the books and records of the Plan in accordance with generally accepted
auditing standards, within a reasonable period after the close of the Plan Year, furnish to the
Administrator and the Trustee a report of the audit setting forth the accountant’s opinion as to
whether any statements, schedules or lists that are required by Act Section 103 or the Secretary
of Labor to be filed with the Plan’s annual report, are presented fairly in conformity with
generally accepted accounting principles applied consistently.



(b) Payment of fees. All auditing and accounting fees shall be an expense of and may, at the
election of the Employer, be paid from the Trust Fund.



(c) Information to be provided to Administrator. If some or all of the information necessary to
enable the Administrator to comply with Act Section 103 is maintained by a bank, insurance
company, or similar institution, regulated, supervised, and subject to periodic examination by a
state or federal agency, then it shall transmit and certify the accuracy of that information to
the Administrator as provided in Act Section 103(b) within one hundred twenty (120) days after
the end of the Plan Year or such other date as may be prescribed under regulations of the
Secretary of Labor.



	7.10	 	RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE





(a) Trustee resignation. Unless otherwise agreed to by both the Trustee and the Employer, a
Trustee may resign at any time by delivering to the Employer, at least thirty (30) days before
its effective date, a written notice of resignation.



(b) Trustee removal. Unless otherwise agreed to by both the Trustee and the Employer, the
Employer may remove a Trustee at any time by delivering to the Trustee, at least thirty (30)
days before its effective date, a written notice of such Trustee’s removal.



(c) Appointment of successor. Upon the death, resignation, incapacity, or removal of any
Trustee, a successor may be appointed by the Employer; and such successor, upon accepting such
appointment in writing and delivering same to the Employer, shall, without further act, become
vested with all the powers and responsibilities of the predecessor as if such successor had been
originally named as a Trustee herein. Until such a successor is appointed, the remaining Trustee
or Trustees shall have full authority to act under the terms of the
Plan.



(d) Appointment of successor prior to removal of predecessor. The Employer may designate one or
more successors prior to the death, resignation, incapacity, or removal of a Trustee. In the
event a successor is so designated by the Employer and accepts such designation, the successor
shall, without further act, become vested with all the powers and responsibilities of the
predecessor as if such successor had been originally named as Trustee herein immediately upon
the death, resignation, incapacity, or removal of the predecessor.



(e) Trustee’s statement upon cessation of being Trustee. Whenever any Trustee hereunder ceases
to serve as such, the Trustee shall furnish to the Employer and Administrator a written
statement of account with respect to the portion of the Plan Year during which the individual or
entity served as Trustee. This statement shall be either (i) included as part of the annual
statement of account for the Plan Year required under Section 7.8 or (ii) set forth in a special
statement. Any such special statement of account should be rendered to the Employer no later
than the due date of the annual statement of account for the Plan Year. The procedures set forth
in Section 7.8 for the approval by the Employer of annual statements of account shall apply to
any special statement of account rendered hereunder and approval by the Employer of any such
special statement in the manner provided in Section 7.8 shall have the same effect upon the
statement as the Employer’s approval of an annual statement of account. No successor to the
Trustee shall have any duty or responsibility to investigate the acts or transactions of any
predecessor who has rendered all statements of account required by Section 7.8 and this
subparagraph.


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	7.11	 	TRANSFER OF INTEREST




     Notwithstanding any other provision contained in this Plan, the Trustee at the direction of
the Administrator shall transfer the Vested interest, if any, of a Participant to another trust
forming part of a pension, profit sharing or stock bonus plan maintained by such Participant’s new
employer and represented by said employer in writing as meeting the requirements of Code Section
401(a), provided that the trust to which such transfers are made permits the transfer to be made.



	7.12	 	TRUSTEE INDEMNIFICATION




     The Employer agrees to indemnify and hold harmless the Trustee against any and all claims,
losses, damages, expenses and liabilities the Trustee may incur in the exercise and performance of
the Trustee’s power and duties hereunder, unless the same are determined to be due to gross
negligence or willful misconduct.


ARTICLE VIII

AMENDMENT, TERMINATION AND MERGERS




	8.1	 	AMENDMENT





(a) General rule on Employer amendment. The Employer shall have the right at any time to amend
this Plan, subject to the limitations of this Section. However, any amendment which affects the
rights, duties or responsibilities of the Trustee or Administrator may only be made with the
Trustee’s or Administrator’s written consent. Any such amendment shall become effective as
provided therein upon its execution. The Trustee shall not be required to execute any such
amendment unless the amendment affects the duties of the Trustee hereunder.



(b) Permissible amendments without affecting reliance. The Employer may make the modifications
described below without affecting reliance on the terms of the Plan. An Employer that amends the
Plan for any other reason may not rely on the advisory letter that the terms of the Plan meet
the qualification requirements of the Code. Permitted changes include: adding options permitted
by the Plan; adding or deleting provisions that are optional under the volume submitter specimen
plan; changing effective dates within the parameters of the volume submitter specimen plan;
correcting obvious and unambiguous typographical errors; correcting cross-references
that do not in any way change the original intended meaning of the provisions; adding a list of
benefits that must be preserved as protected benefits within the meaning of Code Section
411(d)(6) and the regulations thereunder; amending provisions dealing with the administration of
the Trust; a change to the name of the Plan, Employer, Trustee, custodian, Plan Administrator or
any other fiduciary, the Plan Year; and any sample or model amendment published by the IRS (or
other required good-faith amendments) which specifically provide that their adoption will not
cause the plan to be treated as an individually designed plan.



(c) Sponsoring practitioner amendments. Effective March 31, 2008, the Employer (and every
Participating Employer) expressly delegates authority to the sponsoring organization of this
Volume Submitter Plan the right to amend the Plan by submitting a copy of the amendment to each
Employer (and Participating Employer) who has adopted this Volume Submitter Plan, after first
having received a ruling or favorable determination from the Internal Revenue Service that the
Volume Submitter Plan as amended qualifies under Code Section 401(a) (unless a ruling or
determination is not required by the IRS). However, the volume submitter practitioner shall
cease to have the authority to amend on behalf of an Employer that adopts an impermissible plan
type or impermissible plan provision (as described in IRS Announcement 2005-37 and any
subsequent guidance). The volume submitter practitioner will maintain a record of the Employers
that have adopted the Plan, and the practitioner will make reasonable and diligent efforts to
ensure that adopting Employers adopt new documents when necessary. This subsection supersedes
other provisions of the Plan to the extent those other provisions are inconsistent with this
subsection.



(d) Impermissible amendments. No amendment to the Plan shall be effective if it authorizes or
permits any part of the Trust Fund (other than such part as is required to pay taxes and
administration expenses) to be used for or diverted to any purpose other than for the exclusive
benefit of the Participants or their Beneficiaries or estates, or causes any reduction in the
amount credited to the account of any Participant, or causes or permits any portion of the Trust
Fund to revert to or become property of the Employer.



(e) Anti-cutback restrictions. Except as permitted by Regulations (including Regulation 1.411(d)-4) or other IRS guidance, no Plan amendment or transaction having the effect of a Plan
amendment (such as a merger, plan transfer or similar transaction) shall be effective if it
eliminates or reduces any Section 411(d)(6) protected benefit or adds or modifies
conditions relating to Section 411(d)(6) protected benefits which results in a further
restriction on such benefits unless such “Section 411(d)(6) protected benefits” are preserved
with respect to benefits accrued as of the later of the adoption date or effective date of the
amendment. The term “Section 411(d)(6) protected benefits” means benefits described in Code
Section 411(d)(6)(A), early retirement benefits and retirement-type subsidies, and optional
forms of benefit. An amendment which has the effect of decreasing a Participant’s Account
balance with respect to benefits attributable to service before the amendment shall be treated
as reducing an accrued benefit. The preceding shall not apply to a Plan amendment that
eliminates or restricts the ability of a Participant to receive payment of his or her Account
under a particular optional form of benefit if the amendment provides a single-sum distribution
form that is otherwise identical to the optional form of benefit being eliminated or restricted.
For this purpose, a single-sum distribution form is otherwise identical only if the single-sum
distribution form is identical in all respects to the eliminated or restricted optional form of
benefit (or would be identical except that it provides greater rights to the Participant) except
with respect to the timing of payments after commencement.


45








 






	8.2	 	TERMINATION






(a) Termination of Plan. The Employer shall have the right at any time to terminate the Plan by
delivering to the Trustee and Administrator written notice of such termination. Upon any full or
partial termination, all amounts credited to the affected Participants’ Accounts shall become
100% Vested as provided in Section 6.4 and shall not thereafter be subject to forfeiture.




(b) Distribution of assets. Upon the full termination of the Plan, the Employer shall direct the
distribution of the assets of the Plan to Participants in a manner which is consistent with the
provisions of Section 6.5 except that no Participant or spousal consent is required.
Distributions to a Participant shall be made in cash or in property allocated to the
Participant’s Account or through the purchase of irrevocable nontransferable deferred
commitments from an insurer. Except as permitted by Regulations, the termination of the Plan
shall not result in the reduction of Section 411(d)(6) protected benefits in accordance with
Section 8.1(e).




(c) Abandoned plan. If the Employer, in accordance with DOL guidance, abandons the Plan, then
the Trustee (or Insurer) or other party permitted to take action as a qualified terminal
administrator (QTA), may terminate the Plan in accordance with applicable Department of Labor
and IRS regulations and other guidance.




	8.3	 	MERGER, CONSOLIDATION OR TRANSFER OF ASSETS





     This Plan may be merged or consolidated with, or its assets and/or liabilities may be
transferred to any other plan and trust, only if the benefits which would be received by a
Participant of this Plan, in the event of a termination of the Plan immediately after such
transfer, merger or consolidation, are at least equal to the benefits the Participant would have
received if the Plan had terminated immediately before the transfer, merger or consolidation, and
such transfer, merger or consolidation does not otherwise result in the elimination or reduction of
any Section 411(d)(6) protected benefits in accordance with Section 8.1(e).



ARTICLE IX

TOP-HEAVY





	9.1	 	TOP-HEAVY PLAN REQUIREMENTS






     (a) Top-Heavy requirements. For any Top-Heavy Plan Year, the Plan shall provide the special
vesting requirements of Code Section 416(b) pursuant to Section 6.4 of the Plan and the minimum
required allocation of Code Section 416(c) pursuant to Section 4.4 of the Plan.



9.2   DETERMINATION OF TOP-HEAVY STATUS





(a) Definition of Top-Heavy Plan. This Plan shall be a Top-Heavy Plan if any of the following
conditions exists:




(1) if the “top-heavy ratio” for this Plan exceeds, sixty percent (60%) and this Plan is not
part of any “required aggregation group” or “permissive aggregation group”;




(2) if 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 group of plans exceeds sixty percent
(60%); or




(3) if 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
sixty percent (60%).




(b) Top-heavy ratio. “Top-heavy ratio” means, with respect to a “determination date”:




(1) If the Employer maintains one or more defined contribution plans (including any
simplified employee pension plan (as defined in Code Section 408(k)) and the Employer has
not maintained any defined benefit plan which during the 5-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 aggregation group” 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” (including any part of any account balance
distributed in the 1-year period ending on the “determination date”) (5-year period ending
on the “determination date” in the case of a distribution made for a reason other than
severance from employment, death or disability and in determining whether the Plan is
top-heavy for Plan Years beginning before January 1, 2002), and the denominator of which is
the sum of all account balances (including any part of any account balance distributed in
the 1-year period ending on the “determination date”) (5-year period ending on the
“determination date” in the case of a distribution made for a reason other than severance
from employment, death or disability and in determining whether the Plan is top-heavy for
Plan Years beginning before January 1, 2002), both computed in accordance with Code Section
416 and the Regulations thereunder.




     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.




(2) 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 5-year period ending on the



46









 






“determination date” has or has had any accrued benefits, the top-heavy ratio for any
“required aggregation group” or “permissive aggregation group” as appropriate is a fraction,
the numerator of which is the sum of account balances under the aggregated defined
contribution plan or plans for all Key Employees, determined in accordance with (1) above,
and the present value of accrued benefits under the aggregated defined benefit plan or plans
for all Key Employees as of the “determination date,” and the denominator of which is the
sum of the account balances under the aggregated defined contribution plan or plans for all
participants, determined in accordance with (1) above, and the present value of accrued
benefits under the defined benefit plan or plans for all participants as of the
“determination date,” all determined in accordance with Code Section 416 and the Regulations
thereunder. The accrued benefits under a defined benefit plan in both the numerator and
denominator of the top-heavy ratio are increased for any distribution of an accrued benefit
made in the 1-year period ending on the “determination date” (5-year period ending on the
“determination date” in the case of a distribution made for a reason other than severance
from employment, death or disability and in determining whether the Plan is top-heavy for
Plan Years beginning before January 1, 2002).




(3) For purposes of (1) and (2) 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 a participant
(i) who is not a Key Employee but who was a Key Employee in a prior year, or (ii) who has
not been credited with at least one Hour of Service with any Employer maintaining the plan
at any time during the 1-year period (5-year period in determining whether the Plan is
top-heavy for Plan Years beginning before January 1, 2002) ending on the “determination
date” will be disregarded. The calculation of the top-heavy ratio, and the extent to which
distributions, rollovers, and transfers are taken into account will be made in accordance
with Code Section 416 and the Regulations thereunder. 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.




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




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




(c) Determination date. “Determination date” means, for any Plan Year subsequent to the first
Plan Year, the last day of the preceding Plan Year. For the first Plan Year of the Plan,
“determination date” means the last day of that Plan Year.




(d) Permissive aggregation group. “Permissive aggregation group” means the “required aggregation
group” of plans plus any other plan or plans of the Employer or any Affiliated Employer which,
when considered as a group with the required aggregation group, would continue to satisfy the
requirements of Code Sections 401(a)(4) and 410.




(e) Required aggregation group. “Required aggregation group” means: (1) each qualified plan of
the Employer or any Affiliated Employer in which at least one Key Employee participates or
participated at any time during the Plan Year containing the determination date or any of the
four preceding plan years (regardless of whether the plan has terminated), and (2) any other
qualified plan of the Employer or any Affiliated Employer which enables a plan described in (1)
to meet the requirements of Code Sections 401(a)(4) or 410.




(f) Valuation Date. “Valuation date” means the date elected by the Employer as of which account
balances or accrued benefits are valued for purposes of calculating the “top-heavy ratio.”



ARTICLE X

MISCELLANEOUS





	10.1	 	PARTICIPANT’S RIGHTS





     This Plan shall not be deemed to constitute a contract between the Employer and any
Participant or to be a consideration or an inducement for the employment of any Participant or
Employee. Nothing contained in this Plan shall be deemed to give any Participant or Employee the
right to be retained in the service of the Employer or to interfere with the right of the Employer
to discharge any Participant or Employee at any time regardless of the effect which such discharge
shall have upon the Employee as a Participant of this Plan.




	10.2	 	ALIENATION OF BENEFITS






(a) General rule. Subject to the exceptions provided below, and as otherwise permitted by the
Code and the Act, no benefit which shall be payable to any person (including a Participant or
the Participant’s Beneficiary) shall be subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to anticipate,
alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be void; and no
such benefit shall in any manner be liable for, or subject to, the debts, contracts,
liabilities, engagements, or torts of any such person, nor shall it be subject to attachment or
legal process for or against such person, and the same shall not be recognized, except to such
extent as may be required by law.



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(b) Exception for QDRO. Subsection (a) shall not apply to a qualified domestic relations order
defined in Code Section 414(p), and those other domestic relations orders permitted to be so
treated by the Administrator under the provisions of the Retirement Equity Act of 1984. The
Administrator shall establish a written procedure to determine the qualified status of domestic
relations orders and to administer distributions under such qualified orders. Further, to the
extent provided under a qualified domestic relations order, a former spouse of a Participant
shall be treated as the spouse or surviving spouse for all purposes under the Plan.




(c) Exception for certain debts to Plan. Subsection (a) shall not apply to an offset to a
Participant’s accrued benefit against an amount that the Participant is ordered or required to
pay the Plan with respect to a judgment, order, or decree issued, or a settlement entered into
in accordance with Code Sections 401(a)(13)(C) and (D).




	10.3	 	CONSTRUCTION AND INTERPRETATION OF PLAN






(a) Applicable state laws. This Plan and Trust shall be construed and enforced according to the
Code, the Act and the laws of the State of Colorado, other than its laws respecting choice of
law, to the extent not pre-empted by Federal law.




(b) Single subsections. This Plan and Trust may contain single subsections. The existence of
such single subsections shall not constitute scrivener’s errors.




(c) Separate Accounts. Unless otherwise specified by a particular provision, the term “separate
account” does not require a separate fund, only a notational entry in a recordkeeping system.




	10.4	 	GENDER AND NUMBER






(a) Masculine and feminine. Wherever any words are used herein in the masculine, feminine or
neuter gender, they shall be construed as though they were also used in another gender in all
cases where they would so apply.




(b) Singular and plural. Whenever any words are used herein in the singular or plural form, they
shall be construed as though they were also used in the other form in all cases where they would
so apply.




	10.5	 	LEGAL ACTION





     In the event any claim, suit, or proceeding is brought regarding the Trust and/or Plan
established hereunder to which the Trustee, the Employer or the Administrator may be a party, and
such claim, suit, or proceeding is resolved in favor of the Trustee, the Employer or the
Administrator, they shall be entitled to be reimbursed from the Trust Fund for any and all costs,
attorney’s fees, and other expenses pertaining thereto incurred by them for which they shall have
become liable.




	10.6	 	PROHIBITION AGAINST DIVERSION OF FUNDS






(a) General rule. Except as provided below and otherwise specifically permitted by law, it shall
be impossible by operation of the Plan or of the Trust, by termination of either, by power of
revocation or amendment, by the happening of any contingency, by collateral arrangement or by
any other means, for any part of the corpus or income of any Trust Fund maintained pursuant to
the Plan or any funds contributed thereto to be used for, or diverted to, purposes other than
the exclusive benefit of Participants or their Beneficiaries.




(b) Mistake of fact. In the event the Employer shall make an excessive contribution under a
mistake of fact pursuant to Act Section 403(c)(2)(A), the Employer may demand repayment of such
excessive contribution at any time within one (1) year following the time of payment and the
Trustees shall return such amount to the Employer within the one (1) year period. Earnings of
the Plan attributable to the contributions may not be returned to the Employer but any losses
attributable thereto must reduce the amount so returned.




(c) Contribution conditioned on deductibility. Except as otherwise provided by a particular Plan
provision, any contribution made by the Employer to the Plan is conditioned upon the
deductibility of the contribution by the Employer under the Code and, to the extent any such
deduction is disallowed, the Employer may, within one (1) year following the final determination
of the disallowance, whether by agreement with the Internal Revenue Service or by final decision
of a competent jurisdiction, demand repayment of such disallowed contribution and the Trustee
shall return such contribution within one (1) year following the disallowance. Earnings of the
Plan attributable to the contribution may not be returned to the Employer, but any losses
attributable thereto must reduce the amount so returned.




	10.7	 	EMPLOYER’S AND TRUSTEE’S PROTECTIVE CLAUSE





     The Employer, Administrator and Trustee, and their successors, shall not be responsible for
the validity of any Contract issued hereunder or for the failure on the part of the insurer to
make payments provided by any such Contract, or for the action of any person which may delay
payment or render a Contract null and void or unenforceable in whole or in part.




	10.8	 	INSURER’S PROTECTIVE CLAUSE





     Except as otherwise agreed upon in writing between the Employer and the insurer, an insurer
which issues any Contracts hereunder shall not have any responsibility for the validity of this
Plan or for the tax or legal aspects of this Plan. The insurer shall be protected and



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held harmless in acting in accordance with any written direction of the Trustee, and shall have no
duty to see to the application of any funds paid to the Trustee, nor be required to question any
actions directed by the Trustee. Regardless of any provision of this Plan, the insurer shall not
be required to take or permit any action or allow any benefit or privilege contrary to the terms
of any Contract which it issues hereunder, or the rules of the insurer.





	10.9	 	RECEIPT AND RELEASE FOR PAYMENTS





     Any payment to any Participant, the Participant’s legal representative, Beneficiary, or to
any guardian or committee appointed for such Participant or Beneficiary in accordance with the
provisions of the Plan, shall, to the extent thereof, be in full satisfaction of all claims
hereunder against the Trustee and the Employer.




	10.10	 	ACTION BY THE EMPLOYER





     Whenever the Employer under the terms of the Plan is permitted or required to do or perform
any act or matter or thing, it shall be done and performed by a person duly authorized by its
legally constituted authority.




	10.11	 	NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY





     The named Fiduciaries of this Plan are (l) the Employer, (2) the Administrator, (3) the
Trustee and (4) any Investment Manager appointed hereunder. The named Fiduciaries shall have only
those specific powers, duties, responsibilities, and obligations as are specifically given them
under the Plan including, but not limited to, any agreement allocating or delegating their
responsibilities, the terms of which are incorporated herein by reference. In general, the
Employer shall have the sole responsibility for making the contributions provided for under
Section 4.1; and shall have the authority to appoint and remove the Trustee and the Administrator;
to formulate the Plan’s funding policy and method; and to amend or terminate, in whole or in part,
the Plan. The Administrator shall have the sole responsibility for the administration of the Plan,
including, but not limited to, the items specified in Article II of the Plan, as the same may be
allocated or delegated thereunder. The Administrator shall act as the named Fiduciary responsible
for communicating with the Participant according to the Participant Direction Procedures. The
Trustee shall have the sole responsibility of management of the assets held under the Trust,
except to the extent directed pursuant to Article II or with respect to those assets, the
management of which has been assigned to an Investment Manager, who shall be solely responsible
for the management of the assets assigned to it, all as specifically provided in the Plan. Each
named Fiduciary warrants that any directions given, information furnished, or action taken by it
shall be in accordance with the provisions of the Plan, authorizing or providing for such
direction, information or action. Furthermore, each named Fiduciary may rely upon any such
direction, information or action of another named Fiduciary as being proper under the Plan, and is
not required under the Plan to inquire into the propriety of any such direction, information or
action. It is intended under the Plan that each named Fiduciary shall be responsible for the
proper exercise of its own powers, duties, responsibilities and obligations under the Plan as
specified or allocated herein. No named Fiduciary shall guarantee the Trust Fund in any manner
against investment loss or depreciation in asset value. Any person or group may serve in more than
one Fiduciary capacity.




	10.12	 	HEADINGS





     The headings and subheadings of this Plan have been inserted for convenience of reference and
are to be ignored in any construction of the provisions hereof.




	10.13	 	APPROVAL BY INTERNAL REVENUE SERVICE





     Notwithstanding anything herein to the contrary, if, pursuant to an application for
qualification filed by or on behalf of the Plan by the time prescribed by law for filing the
Employer’s return for the taxable year in which the Plan is adopted, or such later date that the
Secretary of the Treasury may prescribe, the Commissioner of Internal Revenue Service or the
Commissioner’s delegate should determine that the Plan does not initially qualify as a tax-exempt
plan under Code Sections 401 and 501, and such determination is not contested, or if contested, is
finally upheld, then if the Plan is a new plan, it shall be void ab initio and all amounts
contributed to the Plan by the Employer, less expenses paid, shall be returned within one (1) year
after the date the initial qualification is denied, and the Plan shall terminate, and the Trustee
shall be discharged from all further obligations. If the disqualification relates to an amended
plan, then the Plan shall operate as if it had not been amended.




	10.14	 	ELECTRONIC MEDIA





     The Administrator may use telephonic or electronic media to satisfy any notice requirements
required by this Plan, to the extent permissible under regulations (or other generally applicable
guidance). In addition, a Participant’s consent to an immediate distribution may be provided
through telephonic or electronic means, to the extent permissible under regulations (or other
generally applicable guidance). The Administrator also may use telephonic or electronic media to
conduct plan transactions such as enrolling Participants, making (and changing) deferral
elections, electing (and changing) investment allocations, applying for Plan loans, and other
transactions, to the extent permissible under regulations (or other generally applicable
guidance).




	10.15	 	PLAN CORRECTION





     The Administrator in conjunction with the Employer may undertake such correction of Plan
errors as the Administrator deems necessary, including correction to preserve tax qualification of
the Plan under Code Section 401(a) or to correct a fiduciary breach under the Act. Without
limiting the Administrator’s authority under the prior sentence, the Administrator, as it
determines to be reasonable and



49









 




appropriate, may undertake correction of Plan document, operational, demographic and employer
eligibility failures under a method described in the Plan or under the IRS Employee Plans
Compliance Resolution System (“EPCRS”) or any successor program to EPCRS. The Administrator, as it
determines to be reasonable and appropriate, also may undertake or assist the appropriate
Fiduciary or Plan official in undertaking correction of a fiduciary breach, including correction
under the DOL Voluntary Fiduciary Correction Program (“VFC”) or any successor program to VFC. For
example, to correct an operational error, the Administrator may require the Trustee to distribute
Elective Deferrals or Vested Matching Contributions, including earnings, from the Plan where such
amounts result from an operational error other than a failure of Code Section 415, Code Section
402(g), or a failure of the ADP Test or the ACP Test.





	10.16	 	UNIFORMITY





     All provisions of this Plan shall be interpreted and applied in a uniform, nondiscriminatory
manner. In the event of any conflict between the terms of this Plan and any Contract purchased
hereunder, the Plan provisions shall control.



ARTICLE XI

PARTICIPATING EMPLOYERS





	11.1	 	ADOPTION BY OTHER EMPLOYERS





     Notwithstanding anything herein to the contrary, with the consent of the Employer and
Trustee, any other corporation or entity, whether an Affiliated Employer or not, may adopt this
Plan and all of the provisions hereof, and participate herein and be known as a Participating
Employer, by a properly executed document evidencing said intent and will of such Participating
Employer.




	11.2	 	REQUIREMENTS OF PARTICIPATING EMPLOYERS






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




(b) Holding and investing assets. The Trustee may, but shall not be required to, commingle, hold
and invest as one Trust Fund all contributions made by Participating Employers, as well as all
increments thereof.




(c) Payment of expenses. Unless the Employer otherwise directs, any expenses of the Plan which
are to be paid by the Employer or borne by the Trust Fund shall be paid by each Participating
Employer in the same proportion that the total amount standing to the credit of all Participants
employed by such Employer bears to the total standing to the credit of all Participants.




	11.3	 	DESIGNATION OF AGENT





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




	11.4	 	EMPLOYEE TRANSFERS





     In the event an Employee is transferred between Participating Employers, accumulated service
and eligibility shall be carried with the Employee involved. No such transfer shall effect a
termination of employment hereunder, and the Participating Employer to which the Employee is
transferred shall thereupon become obligated hereunder with respect to such Employee in the same
manner as was the Participating Employer from whom the Employee was transferred.




	11.5	 	PARTICIPATING EMPLOYER CONTRIBUTION AND FORFEITURES





     Any contribution or Forfeiture subject to allocation during each Plan Year shall be
determined and allocated separately by each Participating Employer, and shall be allocated only
among the Participants eligible to share of the Employer or Participating Employer making the
contribution or by which the forfeiting Participant was employed. On the basis of the information
furnished by the Administrator, the Trustee shall keep separate books and records concerning the
affairs of each Participating Employer hereunder and as to the accounts and credits of the
Employees of each Participating Employer. The Trustee may, but need not, register Contracts so as
to evidence that a particular Participating Employer is the interested Employer hereunder, but in
the event of an Employee transfer from one Participating Employer to another, the employing
Employer shall immediately notify the Trustee thereof.




	11.6	 	AMENDMENT





     Any Participating Employer that is an Affiliated Employer hereby authorizes the Employer to
make amendments on its behalf, unless otherwise agreed among all affected parties. If a
Participating Employer is not an Affiliated Employer, then amendment of this Plan by the Employer
at any time when there shall be a Participating Employer shall, unless otherwise agreed to by the
affected parties, only be by the written action of each and every Participating Employer and with
the consent of the Trustee where such consent is necessary in accordance with the terms of this
Plan.



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	11.7	 	DISCONTINUANCE OF PARTICIPATION





     Any Participating Employer shall be permitted to discontinue or revoke its participation in
the Plan at any time. At the time of any such discontinuance or revocation, satisfactory evidence
thereof and of any applicable conditions imposed shall be delivered to the Trustee. The Employer
shall have the right to discontinue or revoke the participation in the Plan of any Participating
Employer by providing 45 days notice to such Participating Employer. The Trustee shall thereafter
transfer, deliver and assign Contracts and other Trust Fund assets allocable to the Participants
of such Participating Employer to such new Trustee as shall have been designated by such
Participating Employer, in the event that it has established a separate qualified retirement plan
for its employees provided, however, that no such transfer shall be made if the result is the
elimination or reduction of any Section 411(d)(6) protected benefits as described in Section
8.1(e). If a separate plan has not been established, at the time of such continuance or revocation
for whatever reason, the assets and liabilities, Contracts and other Trust Fund assets allocable
to such Participating Employer’s participation in this Plan shall be spun off pursuant to Code
Section 414(1) and such spun off assets shall constitute a retirement plan of the Participating
Employer with such Participating Employer becoming sponsor and the individual who has signed the
Supplemental Participation Agreement on behalf of the Participating Employer becoming Trustee for
this purpose. Such individual shall agree to this appointment by virtue of signing the
Supplemental Participation Agreement. If such individual is no longer an Employee of the
Participating Employer, then the Participating Employer shall appoint a Trustee. If no successor
is designated, the Trustee shall retain such assets for the Employees of said Participating
Employer pursuant to the provisions of Article VII hereof. In no such event shall any part of the
corpus or income of the Trust Fund as it relates to such Participating Employer be used for or
diverted for purposes other than for the exclusive benefit of the Employees of such Participating
Employer.




	11.8	 	ADMINISTRATOR’S AUTHORITY





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




	11.9	 	PROVISIONS APPLIED SEPARATELY (OR JOINTLY) FOR PARTICIPATING NON-AFFILIATED EMPLOYERS






(a) Separate status. The Plan Administrator will apply the definition of Compensation and
perform the tests listed in this Section, separately for each Participating Employer other than
an Affiliated Employer of such Participating Employer. For this purpose, the Employees of each
Participating Employer (and its Affiliated Employers), and their allocations and accounts, shall
be treated as though they were in separate plan. Any correction action, such as additional
contributions or corrective distributions, shall only affect the Employees of the Participating
Employer (and its Affiliated Employers, if any). The tests subject to this separate treatment
are:




(1) The ADP Test.




(2) The ACP Test.




(3) Nondiscrimination testing as described in Code Section 401(a)(4) and the applicable
Regulations.




(4) Coverage testing as described in Code Section 410(b) and the Regulations.





(5) Status as a Highly Compensated Employee under Section 1.41.




(b) Joint status. The following tests shall be performed for the plan as whole, without regard
to employment by a particular Participating Employer:




(1) Applying the annual addition limitation in Section 4.9, including the related
Compensation definition.




(2) Applying the Code Section 402(g) limitation in Section 4.2.




(3) Applying the limit on Catch-Up Contributions in Section 4.2.




	11.10	 	TOP-HEAVY APPLIED SEPARATELY FOR PARTICIPATING NON-AFFILIATED EMPLOYERS





     The Plan will apply the Top-Heavy Plan provisions separately to each Participating Employer
other than an Affiliated Employer of such Participating Employer. The Plan will be considered
separate plans for each Participating Employer and its Employees for purposes of determining
whether such a separate plan is top-heavy under Section 9.1 or is entitled to the exemption
described in such Section. For purposes of applying this Article to a Participating Employer, the
Participating Employer and any entity which is an Affiliated Employer to that Participating
Employer shall be the “Employer” for purposes of Section 9.1, and the terms “Key Employee” and
“Non-Key Employee” shall refer only to the Employees of that Participating Employer and/or its
Affiliated Employers. If such a Participating Employer’s separate plan is top-heavy, then:




(a) Highest contribution rate. The Plan Administrator shall determine the highest Key Employee
contribution rate under Section 4.4(g) by reference to the Key Employees and their allocations
in the separate plan of that Participating Employer;




(b) Top-Heavy minimum allocation. The Plan Administrator shall determine the amount of any
required top-heavy minimum allocation separately for that separate plan under Section 4.4(g);
and



51









 






(c) Plan which will satisfy. The Participating Employer shall make any additional
contributions Section 4.4(g) requires.




	11.11	 	HIGHLY COMPENSATED EMPLOYEE STATUS





     Status as a Highly Compensated Employee under Section 1.41 shall be determined separately
with respect to each Participating Employer (and all its Affiliated Employers).




	11.12	 	SERVICE





     An Employee’s service includes all Hours of Service and Years of Service with any and all
Participating Employers and their Affiliated Employers. An Employee who terminates employment with
one Participating Employer and immediately commences employment with another Participating
Employer has not separated from service and has not had a severance from employment.




	11.13	 	REQUIRED MINIMUM DISTRIBUTIONS





     If a Participant is a 5-percent owner (under Section 6.8(e)(6)) of any Participating Employer
for which the Participant is an Employee in the Plan Year the Participant attains age 70 1/2, then
the Participant’s required beginning date under Section 6.8 shall be the April 1 of the calendar
year following the close of the calendar year in which the Participant attains age 70 1/2.




52