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Exhibit 4.1  


401(k) Plan Document  


      



      



       

The PruArray Prototype Plan and

Trust and IRS Opinion Letters  




  


 PruArray 401(k) Plan  






401(k) Plan Document  


        THIS DOCUMENT IS COPYRIGHTED UNDER THE LAWS OF THE UNITED STATES. USE, DUPLICATION OR REPRODUCTION, INCLUDING THE USE OF ELECTRONIC MEANS,
IS PROHIBITED BY LAW WITHOUT THE EXPRESS CONSENT OF THE AUTHOR.  


  
 

    CONTENTS    
  



	Paragraph
 
	 	Page

	ARTICLE I—DEFINITIONS	 	 
	

1.1	
 	

Actual Deferral Percentage	
 	

1
	1.2	 	Adoption Agreement	 	1
	1.3	 	Aggregate Limit The sum of:	 	1
	1.4	 	Annual Additions	 	1
	1.5	 	Annuity Starting Date	 	2
	1.6	 	Applicable Calendar Year	 	2
	1.7	 	Applicable Life Expectancy	 	2
	1.8	 	Average Contribution Percentage (ACP)	 	2
	1.9	 	Average Deferral Percentage (ADP)	 	2
	1.10	 	Break In Service	 	2
	1.11	 	Code	 	3
	1.12	 	Compensation	 	3
	1.13	 	Contribution Percentage	 	4
	1.14	 	Defined Benefit Plan	 	5
	1.15	 	Defined Benefit (Plan) Fraction	 	5
	1.16	 	Defined Contribution Dollar Limitation	 	5
	1.17	 	Defined Contribution Plan	 	5
	1.18	 	Defined Contribution (Plan) Fraction	 	6
	1.19	 	Designated Beneficiary	 	6
	1.20	 	Disability	 	6
	1.21	 	Distribution Calendar Year	 	6
	1.22	 	Early Retirement Age	 	6
	1.23	 	Earned Income	 	6
	1.24	 	Effective Date	 	7
	1.25	 	Election Period	 	7
	1.26	 	Elective Deferral	 	7
	1.27	 	Eligible Participant	 	7
	1.28	 	Employee	 	7
	1.29	 	Employer	 	8
	1.30	 	Entry Date	 	8
	1.31	 	Excess Aggregate Contributions	 	8
	1.32	 	Excess Amount	 	8
	1.33	 	Excess Contribution	 	8
	1.34	 	Excess Elective Deferrals	 	8
	1.35	 	Family Member	 	9
	1.36	 	First Distribution Calendar Year	 	9
	1.37	 	Fund	 	9
	1.38	 	Hardship	 	9
	1.39	 	Highest Average Compensation	 	9
	1.40	 	Highly Compensated Employee	 	9
	1.41	 	Hour Of Service	 	10
	1.42	 	Key Employee	 	11
	1.43	 	Leased Employee	 	11
	1.44	 	Limitation Year	 	12







	1.45	 	Master Or Prototype Plan	 	12
	1.46	 	Matching Contribution	 	12
	1.47	 	Maximum Permissible Amount	 	12
	1.48	 	Net Profit	 	12
	1.49	 	Normal Retirement Age	 	12
	1.50	 	Owner-Employee	 	12
	1.51	 	Paired Plans	 	13
	1.52	 	Participant	 	13
	1.53	 	Participant's Benefit	 	13
	1.54	 	Permissive Aggregation Group	 	13
	1.55	 	Plan	 	13
	1.56	 	Plan Administrator	 	13
	1.57	 	Year	 	13
	1.58	 	Present Value	 	13
	1.59	 	Projected Annual Benefit	 	13
	1.60	 	Qualified Deferred Compensation Plan	 	14
	1.61	 	Qualified Domestic Relations Order	 	14
	1.62	 	Qualified Early Retirement Age	 	14
	1.63	 	Qualified Joint and Survivor Annuity	 	14
	1.64	 	Qualified Matching Contribution	 	14
	1.65	 	Qualified Non-Elective Contributions	 	15
	1.66	 	Qualified Voluntary Contribution	 	15
	1.67	 	Required Aggregation Group	 	15
	1.68	 	Required Beginning Date	 	15
	1.69	 	Rollover Contribution	 	15
	1.70	 	Salary Savings Agreement	 	15
	1.71	 	Self-Employed Individual	 	16
	1.72	 	Service	 	16
	1.73	 	Service Company	 	16
	1.74	 	Shareholder Employee	 	16
	1.75	 	Simplified Employee Pension Plan	 	16
	1.76	 	Sponsor	 	16
	1.77	 	Spouse (Surviving Spouse)	 	16
	1.78	 	Super Top-Heavy Plan	 	16
	1.79	 	Taxable Wage Base	 	16
	1.80	 	Top-Heavy Determination Date	 	16
	1.81	 	Top-Heavy Plan	 	16
	1.82	 	Top-Heavy Ratio	 	17
	1.83	 	Top-Paid Group	 	17
	1.84	 	Transfer Contribution	 	18
	1.85	 	Trustee	 	18
	1.86	 	Valuation Date	 	18
	1.87	 	Vested Account Balance	 	19
	1.88	 	Voluntary Contribution	 	19
	1.89	 	Welfare Benefit Fund	 	19
	1.90	 	Year Of Service	 	19
	
ARTICLE II—ELIGIBILITY REQUIREMENTS	
 	

 
	

2.1	
 	

Participation	
 	

19
	2.2	 	Change In Classification Of Employment	 	20
	2.3	 	Computation Period	 	20
	2.4	 	Employment Rights	 	20
	2.5	 	Service With Controlled Groups	 	20
	2.6	 	Owner-Employees	 	20







	2.7	 	Leased Employees	 	21
	2.8	 	Omission Of Eligible Employee	 	21
	2.9	 	Inclusion Of Ineligible Employee	 	21
	
ARTICLE III—EMPLOYER CONTRIBUTIONS	
 	

 
	

3.1	
 	

Amount	
 	

22
	3.2	 	Expenses And Fees	 	22
	3.3	 	Responsibility For Contributions	 	22
	3.4	 	Return Of Contributions	 	22
	3.5	 	Form Of Contribution	 	22
	
ARTICLE IV—EMPLOYEE CONTRIBUTIONS	
 	

 
	

4.1	
 	

Voluntary Contributions	
 	

23
	4.2	 	Qualified Voluntary Contributions	 	23
	4.3	 	Rollover Contribution	 	23
	4.4	 	Transfer Contribution	 	24
	4.5	 	Employer Approval Of Transfer Contributions	 	24
	4.6	 	Elective Deferrals	 	24
	4.7	 	Direct Rollover Of Benefits	 	25
	
ARTICLE V—PARTICIPANT ACCOUNTS	
 	

 
	

5.1	
 	

Separate Accounts	
 	

25
	5.2	 	Adjustments To Participant Accounts	 	26
	5.3	 	Allocating Employer Contributions	 	26
	5.4	 	Allocating Investment Earnings And Losses	 	27
	5.5	 	Participant Statements	 	27
	
ARTICLE VI—RETIREMENT BENEFITS AND DISTRIBUTIONS	
 	

 
	

6.1	
 	

Normal Retirement Benefits	
 	

28
	6.2	 	Early Retirement Benefits	 	28
	6.3	 	Benefits On Termination Of Employment	 	28
	6.4	 	Restrictions On Immediate Distributions	 	29
	6.5	 	Normal Form Of Payment	 	30
	6.6	 	Commencement Of Benefits	 	30
	6.7	 	Claims Procedures	 	31
	6.8	 	In-Service Withdrawals	 	31
	6.9	 	Hardship Withdrawal	 	32
	6.10	 	Order Of Withdrawals	 	33
	
ARTICLE VII—DISTRIBUTION REQUIREMENTS	
 	

 
	

7.1	
 	

Joint And Survivor Annuity Requirements	
 	

33
	7.2	 	Minimum Distribution Requirements	 	33
	7.3	 	Limits On Distribution Periods	 	34
	7.4	 	Required Distributions On Or After The Required Beginning Date	 	34
	7.5	 	Required Beginning Date	 	35
	7.6	 	Transitional Rule	 	35
	7.7	 	Designation Of Beneficiary For Death Benefit	 	36
	7.8	 	Nonexistence Of Beneficiary	 	36
	7.9	 	Distribution Beginning Before Death	 	36
	7.10	 	Distribution Beginning After Death	 	37
	7.11	 	Distribution Of Excess Elective Deferrals	 	37
	7.12	 	Distributions Of Excess Contributions	 	38
	7.13	 	Distribution Of Excess Aggregate Contributions	 	39







	
ARTICLE VIII—JOINT AND SURVIVOR ANNUITY REQUIREMENTS	
 	

 
	

8.1	
 	

Applicability Of Provisions	
 	

39
	8.2	 	Payment Of Qualified Joint And Survivor Annuity	 	39
	8.3	 	Payment Of Qualified Pre-Retirement Survivor Annuity	 	39
	8.4	 	Qualified Election	 	40
	8.5	 	Notice Requirements For Qualified Joint And Survivor Annuity	 	40
	8.6	 	Notice Requirements For Qualified Pre-Retirement Survivor Annuity	 	41
	8.7	 	Special Safe-Harbor Exception For Certain Profit-Sharing Plans	 	41
	8.8	 	Transitional Joint And Survivor Annuity Rules	 	42
	8.9	 	Automatic Joint And Survivor Annuity And Early Survivor Annuity	 	42
	8.10	 	Annuity Contracts	 	43
	
ARTICLE IX—VESTING	
 	

 
	

9.1	
 	

Employee Contributions	
 	

43
	9.2	 	Employer Contributions	 	43
	9.3	 	Computation Period	 	43
	9.4	 	Requalification Prior To Five Consecutive One-Year Breaks In Service	 	43
	9.5	 	Requalification After Five Consecutive One-Year Breaks In Service	 	43
	9.6	 	Calculating Vested Interest	 	43
	9.7	 	Forfeitures	 	43
	9.8	 	Amendment Of Vesting Schedule	 	44
	9.9	 	Service With Controlled Groups	 	45
	
ARTICLE X—LIMITATIONS ON ALLOCATIONS AND ANTIDISCRIMINATION TESTING	
 	

 
	

10.1	
 	

Participation In This Plan Only	
 	

45
	10.2	 	Disposition Of Excess Annual Additions	 	45
	10.3	 	Participation In This Plan And Another Qualified Master and Prototype Defined Contribution Plan, Welfare Benefit Fund, Individual Medical Account Or Simplified Employee Pension Plan Maintained By The
Employer	 	46
	10.4	 	Disposition Of Excess Annual Additions Under Two Plans	 	47
	10.5	 	Participation In This Plan And Another Defined Contribution Plan Which Is Not A Qualified Master Or Prototype Plan	 	47
	10.6	 	Participation In This Plan And A Defined Benefit Plan	 	47
	10.7	 	Average Deferral Percentage (ADP) Test	 	47
	10.8	 	Special Rules Relating To Application Of ADP Test	 	48
	10.9	 	Average Contribution Percentage (ACP) Test	 	49
	10.10	 	Special Rules Relating To Application Of ACP Test	 	49
	
ARTICLE XI—ADMINISTRATION	
 	

 
	

11.1	
 	

Plan Administrator	
 	

50
	11.2	 	Trustee	 	51
	11.3	 	Administrative Fees And Expenses	 	51
	11.4	 	Duties And Indemnification	 	51
	11.5	 	Special Provisions Concerning The Service Company	 	52
	
ARTICLE XII—TRUST FUND	
 	

 
	

12.1	
 	

The Fund	
 	

53
	12.2	 	Control Of Plan Assets	 	53
	12.3	 	Exclusive Benefit Rules	 	53
	12.4	 	Assignment And Alienation Of Benefits	 	53
	12.5	 	Determination Of Qualified Domestic Relations Order (QDRO)	 	54







	
ARTICLE XIII—INVESTMENTS	
 	

 
	

13.1	
 	

Fiduciary Standards	
 	

55
	13.2	 	No Investment Discretion	 	55
	13.3	 	Investment Directions	 	55
	13.4	 	Permitted Investments	 	56
	13.5	 	Shareholder Rights	 	56
	13.6	 	Liquidation Of Assets	 	56
	13.7	 	Arbitration	 	57
	13.8	 	Participant Loans	 	57
	13.9	 	Insurance Policies	 	59
	
ARTICLE XIV—TOP-HEAVY PROVISIONS	
 	

 
	

14.1	
 	

Applicability Of Rules	
 	

60
	14.2	 	Minimum Contribution	 	60
	14.3	 	Minimum Vesting	 	61
	14.4	 	Limitations On Allocations	 	61
	
ARTICLE XV—AMENDMENT AND TERMINATION	
 	

 
	

15.1	
 	

Amendment By Sponsor	
 	

61
	15.2	 	Amendment By Employer	 	62
	15.3	 	Termination	 	62
	15.4	 	Qualification Of Employer's Plan	 	62
	15.5	 	Mergers And Consolidations	 	62
	15.6	 	Resignation And Removal	 	63
	15.7	 	Qualification Of Prototype	 	63
	
ARTICLE XVI—GOVERNING LAW	
 	

 









   ARTICLE I—DEFINITIONS  


1.1 Actual Deferral Percentage  


        The ratio (expressed as a percentage and calculated separately for each Participant) of: 



        (a)  the amount of Employer contributions [as defined at (c) and (d)] actually paid over to the Fund
on behalf of such Participant for the Plan Year to 


        (b)  the Participant's Compensation for such Plan Year. (Unless otherwise specified by the Employer in the Adoption Agreement,
Compensation will include all amounts earned from the Employer and actually paid during the Plan Year). 




        Employer
contributions on behalf of any Participant shall include: 



        (c)  any Elective Deferrals made pursuant to the Participant's deferral election, including Excess Elective Deferrals, but
excluding Elective Deferrals that are either taken into account in the Contribution Percentage test (provided the ADP test is satisfied both with and without exclusion of these Elective Deferrals) or
are returned as excess Annual Additions; and 


        (d)  at the election of the Employer, Qualified Non-Elective Contributions and Qualified Matching Contributions. 




        For
purposes of computing Actual Deferral Percentages, an 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. 


1.2 Adoption Agreement  


        The document attached to this Plan by which an Employer elects to establish a qualified retirement plan and trust under the terms of this Prototype Plan and
Trust. 


1.3 Aggregate Limit The sum of:  



        (a)  125 percent of the greater of the ADP of the Non-Highly Compensated Employees for the Plan Year or the ACP of
Non-Highly
Compensated Employees under the Plan subject to Code Section 401(m) for the Plan Year beginning with or within the Plan Year of the cash or deferred arrangement as described in Code
Section 401(k) or Code Section 402(h)(1)(B), and 


        (b)  the lesser of 200% or 2% plus the lesser of such ADP or ACP. 




        Alternatively,
the aggregate limit can be determined by substituting "the lesser of 200% or 2 percent plus" for "125% of" in (a) above, and substituting "125% of" for "the lesser
of 200% or 2% plus" in (b) above. 


1.4 Annual Additions  


        The sum of the following amounts credited to a Participant's account for the Limitation Year: 



        (a)  Employer Contributions; 


        (b)  Employee Contributions (under Article IV); 


        (c)  Forfeitures; 


        (d)  Amounts allocated after March 31, 1984, to an individual medical account, as defined in Code
Section 415(l)(2), which is part of a pension or annuity plan maintained by the Employer 



1





 





(these amounts are treated as Annual Additions to a Defined Contribution Plan, though they arise under a Defined Benefit Plan); and 


        (e)  Amounts derived from contributions paid or accrued after 1985, in taxable years ending after 1985, which are either
attributable to post-retirement medical benefits allocated to the account of a Key Employee, or to a Welfare Benefit Fund maintained by the Employer, are also treated as Annual Additions to a Defined
Contribution Plan. For purposes of this paragraph, an Employee is a Key Employee if he or she meets the requirements of paragraph 1.43 at any time during the Plan Year or any preceding Plan
Year. Welfare Benefit Fund is defined at paragraph 1.89. 


        (f)    Allocations under a Simplified Employee Pension Plan. 




        Excess
amounts applied in a Limitation Year to reduce Employer contributions will be considered Annual Additions for such Limitation Year, pursuant to the provisions of Article X. 



1.5 Annuity Starting Date  


        The first day of the first period for which an amount is paid as an annuity or in any other form. 


1.6 Applicable Calendar Year  


        The First Distribution Calendar Year, and in the event of the recalculation of life expectancy, such succeeding calendar year. If payments commence in accordance
with paragraph 7.4(e) before the Required Beginning Date, the Applicable Calendar Year is the year such payments commence. If distribution is in the form of an immediate annuity purchased after
the Participant's death with the Participant's remaining interest, the Applicable Calendar Year is the year of purchase. 


1.7 Applicable Life Expectancy  


        Used in determining the required minimum distribution. The life expectancy (or joint and last survivor expectancy) calculated using the attained age of the
Participant (or Designated Beneficiary) as of the Participant's (or Designated Beneficiary's) birthday in the Applicable Calendar Year reduced by one for each calendar year which has elapsed since the
date life expectancy was first calculated. If life expectancy is being recalculated, the Applicable Life Expectancy shall be the life expectancy as so recalculated. The life expectancy of a non-Spouse
Beneficiary may not be recalculated. 


1.8 Average Contribution Percentage (ACP)  


        The average of the Contribution Percentages for each Highly Compensated Employee and for each Non-Highly Compensated Employee. 


1.9 Average Deferral Percentage (ADP)  


        The average of the Actual Deferral Percentages for each Highly Compensated Employee and for each Non-Highly Compensated Employee. 



1.10 Break In Service  


        If the Hour counting method has been chosen by the Employer in the Adoption Agreement, a Break in Service is a 12-consecutive month period during which an
Employee fails to complete more than 500 Hours of Service. If the Elapsed Time method has been chosen by the Employer in the Adoption Agreement, a Break in Service is a period of severance of at least
12 consecutive months. 


2





 



1.11 Code  


        The Internal Revenue Code of 1986, including any amendments. 


1.12 Compensation  


        Unless otherwise specified by the Employer in the Adoption Agreement, Compensation shall include all amounts earned from the Employer and actually paid during the
Plan Year. 



        (a)  Code Section 3401(a) Wages. Compensation is defined as wages within the meaning of Code Section 3401(a) for
the purposes of Federal income tax withholding at the source but determined without regard to any rules that limit the remuneration included in wages based on the nature or location of the employment
or the services performed [such as the exception for agricultural labor in Code Section 3401(a)(2)]. 


        (b)  Code Section 415 Compensation. For purposes of applying the limitations of Article X and Top-Heavy
minimums, the definition of Compensation shall be Code Section 415 Compensation defined as follows: a Participant's Earned Income, wages, salaries, and 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))], and excluding
the following: 



        (1)  Employer contributions to a plan of deferred compensation which are not includible in the Employee's gross income for the
taxable year in which contributed, or Employer contributions under a Simplified Employee Pension Plan or any distributions from a plan of deferred compensation, 



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


        (3)  Amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option; and 


        (4)  Other amounts which received special tax benefits, or contributions made by the Employer (whether or not under a Salary
Reduction Agreement) towards the purchase of an annuity described in Code Section 403(b) (whether or not the amounts are actually excludible from the gross income of the Employee). 





        For
purposes of applying the limitations of Article X, Compensation for a Limitation Year is the Compensation actually paid or made available during such Limitation Year.
Notwithstanding the preceding sentence, Compensation for a Participant in a Defined Contribution Plan who is permanently and totally disabled [as defined in Code
Section 22(e)(3)] is the Compensation such Participant would have received for the Limitation Year if the Participant had been paid at the rate of Compensation paid immediately
before becoming permanently and totally disabled. Such imputed Compensation for the disabled Participant may be taken into account only if the participant is not a Highly Compensated Employee
[as defined in Code Section 414(q)] and contributions made on behalf of such Participant are nonforfeitable when made. 


        If
the Employer fails to pick the determination period in the Adoption Agreement, the Plan Year shall be used. Unless otherwise specified by the Employer in the Adoption Agreement,
Compensation shall be determined as provided in Code Section 3401(a) (as defined in this paragraph 1.12(a)). In 


3





 




nonstandardized Adoption Agreement 002, the Employer may choose to eliminate or exclude categories of Compensation which do not violate the provisions of Code Sections 401(a)(4), 414(s)
the regulations thereunder and Revenue Procedure 89-65. 


        Beginning
with 1989 Plan Years, the annual Compensation of each Participant which may be taken into account for determining all benefits provided under the Plan (including benefits under
Article XIV) for any Plan Year shall not exceed $200,000, as adjusted under Code Section 415(d). For Plan Years beginning on or after January 1, 1994, the annual Compensation of
each Participant taken into account for determining all benefits provided under the Plan for any Plan Year shall not exceed $150,000, as adjusted for increases in the cost-of-living in accordance with
Code Section 401(a)(17). The cost-of-living adjustment in effect for a calendar year applies to any determination period beginning in such calendar year. 


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


        If
a Plan has a Plan Year that contains fewer than 12 Calendar Months, then the annual compensation limit for that period is an amount equal to the annual Compensation as adjusted for
the calendar year in which the compensation period begins, multiplied by a fraction the numerator of which is the number of full months in the short determination period and the denominator of which
is 12. If compensation for any prior plan year is taken into account in determining an employee's contributions or benefits for the current year, the compensation for such prior year is subject to the
applicable annual compensation limit in effect for that prior year. For this purpose, for years beginning before January 1, 1990, the applicable annual compensation limit is $200,000. 


        Compensation
shall not include deferred compensation other than contributions through a salary reduction agreement to a cash or deferred plan under Code Section 401(k), a
Simplified Employee Pension Plan under Code Section 402(h)(1)(B), a cafeteria plan under Code Section 125 or a tax-deferred annuity under Code Section 403(b). Unless elected
otherwise by the Employer in the Adoption Agreement, these deferred amounts will be considered as Compensation for Plan purposes. These deferred amounts are not counted as Compensation for purposes of
Articles X and XIV except for Code Sections 401(k) and 401(m) testing. When applicable to a Self-Employed Individual, Compensation shall mean Earned Income. 


1.13 Contribution Percentage  


        The ratio (expressed as a percentage and calculated separately for each Participant) of: 



        (a)  the Participant's Contribution Percentage Amounts [as defined at (c)-(f)] for the Plan Year, to 



        (b)  the Participant's Compensation for such Plan Year. Unless otherwise specified by the Employer in the Adoption Agreement,
Compensation will include all amounts earned from the Employer and actually paid during the Plan Year. 



4





 





        Contribution
Percentage Amounts on behalf of any Participant shall include: 



        (c)  the amount of Employee Voluntary Contributions, Matching Contributions, and Qualified Matching Contributions (to the
extent not taken into account for purposes of the ADP test) made under the Plan on behalf of the Participant for the Plan Year, 


        (d)  forfeitures of Excess Aggregate Contributions or Matching Contributions allocated to the Participant's account which
shall be taken into account in the year in which such forfeiture is allocated, 


        (e)  at the election of the Employer, Qualified Non-Elective Contributions, and 



        (f)    the Employer also may elect to use Elective Deferrals in the Contribution Percentage Amounts so long as 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. 




        Contribution
Percentage Amounts shall not include Matching Contributions, whether or not Qualified, that are forfeited either to correct Excess Aggregate Contributions, or because the
contributions to which they relate are Excess Deferrals, Excess Contributions, or Excess Aggregate Contributions. 


1.14 Defined Benefit Plan  


        A Plan under which a Participant's benefit is determined by a formula contained in the Plan and no individual accounts are maintained for Participants. 


1.15 Defined Benefit (Plan) Fraction  


        A fraction, the numerator of which is the sum of the Participant's Projected Annual Benefits under all the Defined Benefit Plans (whether or not terminated)
maintained by the Employer, and the denominator of which is the lesser of 125 percent of the dollar limitation determined for the Limitation Year under Code Sections 415(b) and (d) or
140 percent of the Highest Average Compensation, including any adjustments under Code Section 415(b). 


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


1.16 Defined Contribution Dollar Limitation  


        Thirty thousand dollars ($30,000) or, if greater, one-fourth of the defined benefit dollar limitation set forth in Code Section 415(b)(1) as in effect for
the Limitation Year. 



1.17 Defined Contribution Plan  


        A Plan under which individual accounts are maintained for each Participant to which all contributions, forfeitures, investment income and gains or losses, and
expenses are credited or deducted. A Participant's benefit under such Plan is based solely on the fair market value of his or her account balance. 


5









   1.18 Defined Contribution (Plan) Fraction  


        A Fraction, the numerator of which is the sum of the Annual Additions to the Participant's account under all the Defined Contribution Plans (whether or not
terminated) maintained by the Employer for the current and all prior Limitation Years (including the Annual Additions attributable to the Participant's nondeductible Employee contributions to all
Defined Benefit Plans, whether or not terminated, maintained by the Employer, and the Annual Additions attributable to all Welfare Benefit Funds, as defined in paragraph 1.89 and individual
medical accounts, as defined in Code Section 415(l)(2), maintained by the Employer), and the denominator of which is the sum of the maximum aggregate amounts for the current and all prior
Limitation Years of service with the Employer (regardless of whether a Defined Contribution Plan was maintained by the Employer). The maximum aggregate amount in the Limitation Year is the lesser of
125 percent of the dollar limitation determined under Code Sections 415(b) and (d) in effect under Code Section 415(c)(1)(A) or 35 percent of the Participant's Compensation
for such year. 


        If
the Employee was a Participant as of the end of the first day of the first Limitation Year beginning after 1986, in one or more Defined Contribution Plans maintained by the Employer
which were in existence on May 6, 1986, the numerator of this fraction will be adjusted if the sum of this fraction and the Defined Benefit Fraction would otherwise exceed 1.0 under the terms
of this Plan. Under the adjustment, an amount equal to the product of (1) the excess of the sum of the fractions over 1.0 times (2) the denominator of this fraction will be permanently
subtracted from the numerator of this fraction. The adjustment is calculated using the fractions as they would be computed as of the end of the last Limitation Year beginning before 1987, and
disregarding any changes in the terms and conditions of the Plan made after May 6, 1986, but using the Section 415 limitation applicable to the first Limitation Year beginning on or
after January 1, 1987. The Annual Addition for any Limitation Year beginning before 1987 shall not be re-computed to treat all Employee Contributions as Annual Additions. 


1.19 Designated Beneficiary  


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



1.20 Disability  


        An illness or injury of a potentially permanent nature, expected to last for a continuous period of not less than 12 months, certified by a physician selected by
or satisfactory to the Employer, which prevents the Employee from engaging in any occupation for wage or profit for which the Employee is reasonably fitted by training, education or experience. 


1.21 Distribution Calendar Year  


        A calendar year for which a minimum distribution is required. 



1.22 Early Retirement Age  


        The age set by the Employer in the Adoption Agreement (but not less than 55), which is the earliest age at which a Participant may retire and receive his or her
benefits under the Plan. 


1.23 Earned Income  


        Net earnings from self-employment in the trade or business with respect to which the Plan is established, determined without regard to items not included in gross
income and the deductions allocable to such items, provided that personal services of the individual are a material 


6





 




income-producing factor. Earned income shall be reduced by contributions made by an Employer to a qualified plan to the extent deductible under Code Section 404. For tax years
beginning after 1989, net earnings shall be determined, taking into account the deduction for one-half of self-employment taxes allowed to the Employer under Code Section 164(f) to the extent
deductible. 



1.24 Effective Date  


        The date on which the Employer's retirement plan or amendment to such plan becomes effective. Unless otherwise specified in the Adoption Agreement, the effective
date shall be the first day of the Plan Year during which the Adoption Agreement is executed by the Employer. For amendments reflecting statutory and regulatory changes post Tax Reform Act of 1986,
the Effective Date will be the date upon which such amendment is first administratively applied. 


1.25 Election Period  


        The period which begins on the first day of the Plan Year in which the Participant attains age 35 and ends on the date of the Participant's death. If a
Participant separates from service prior to the first day of the Plan Year in which age 35 is attained, the Election Period shall begin on the date of separation, with respect to the account balance
as of the date of separation. 


1.26 Elective Deferral  


        Employer contributions made to the Plan at the election of the Participant, in lieu of cash Compensation. Elective Deferrals shall also include contributions made
pursuant to a Salary Savings Agreement or other deferral mechanism, such as a cash option contribution. With respect to any taxable year, a Participant's Elective Deferral 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 as described in Code Section 401(k), any simplified employee
pension cash or deferred arrangement as described in Code Section 402(h)(1)(B), any eligible deferred compensation plan under Code Section 457, any plan as described under Code Section
501(c)(18), and any Employer contributions made on the behalf of a Participant for the purchase of an annuity contract under Code Section 403(b) pursuant to a Salary Savings Agreement. Elective
Deferrals shall not include any deferrals properly distributed as Excess Annual Additions. 



1.27 Eligible Participant  


        Any Employee who is eligible to make a Voluntary Contribution, or an Elective Deferral (if the Employer takes such contributions into account in the calculation
of the Contribution Percentage), or to receive a Matching Contribution (including forfeitures) or a Qualified Matching Contribution. If a Voluntary Contribution or Elective Deferral 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 as an Eligible Participant even though no
Voluntary Contributions or Elective Deferrals are made. 



1.28 Employee  


        Any person employed by the Employer (including Self-Employed Individuals and partners), all Employees of a member of an affiliated service group [as
defined in Code Section 414(m)], Employees of a controlled group of corporations [as defined in Code Section 414(b)], all Employees of any
incorporated or unincorporated trade or business which is under common control [as defined in Code Section 414(c)], leased Employees [as defined in Code
Section 414(n)] and any Employee required to be
aggregated by Code Section 414(o). All such Employees shall be treated as employed by a single Employer. 


7





 



1.29 Employer  


        The Self-Employed Individual, partnership, corporation or other organization which adopts this Plan, including any firm that succeeds the Employer and adopts this
Plan. For purposes of Article X, Limitations on Allocations, Employer shall mean the Employer that adopts this Plan, and all members of a controlled group of corporations [as
defined in Code Section 414(b) as modified by Code Section 415(h)], all commonly controlled trades or businesses [as defined in Code Section 414(c) as
modified by Code Section 415(h)] or affiliated service groups [as defined in Code Section 414(m)] of which the adopting Employer is a part, and any
other entity required to be aggregated with the Employer pursuant to regulations under Code Section 414(o). 


1.30 Entry Date  


        The date on which an Employee commences participation in the Plan as determined by the Employer in the Adoption Agreement. Unless the Employer specifies otherwise
in the Adoption Agreement, entry into the Plan shall be on the first day of the Plan Year or the first day of the seventh month of the Plan Year coinciding with or following the date on which an
Employee meets the eligibility requirements. 


1.31 Excess Aggregate Contributions  


        The excess, with respect to any Plan Year, of: 



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



        (b)  the maximum Contribution Percentage Amounts permitted by the ACP test (determined by reducing contributions made on
behalf of Highly Compensated Employees in order of their Contribution Percentages beginning with the highest of such percentages). 




        Such
determination shall be made after first determining Excess Elective Deferrals pursuant to paragraph 1.34 and then determining Excess Contributions pursuant to
paragraph 1.33. 


1.32 Excess Amount  


        The excess of the Participant's Annual Additions for the Limitation Year over the Maximum Permissible Amount. 


1.33 Excess Contribution  


        With respect to any Plan Year, the excess of: 



        (a)  the aggregate amount of Employer contributions actually taken into account in computing the ADP of Highly Compensated
Employees for such Plan Year, over 


        (b)  the maximum amount of such contributions permitted by the ADP test (determined by reducing contributions made on behalf
of Highly Compensated Employees in order of the ADPs, beginning with the highest of such percentages). 




1.34 Excess Elective Deferrals  


        Those Elective Deferrals that are includible in a Participant's gross income under Code Section 402(g) to the extent such Participant's Elective Deferrals
for a taxable year exceed the dollar limitation under such Code Section. Excess Elective Deferrals shall be treated as Annual Additions 


8





 




under the Plan, unless such amounts are distributed no later than the first April 15 following the close of the Participant's taxable year. 


1.35 Family Member  



        The Employee's Spouse, any lineal descendants and ascendants and the Spouse of such lineal descendants and ascendants. 


1.36 First Distribution Calendar Year  


        For distributions beginning before the Participant's death, the First Distribution Calendar Year is the calendar year immediately preceding the calendar year
which contains the Participant's Required Beginning Date. For distributions beginning after the Participant's death, the First Distribution Calendar Year is the calendar year in which distributions
are required to begin pursuant to paragraph 7.10. 



1.37 Fund  


        All contributions received by the Trustee under this Plan and Trust, investments thereof and earnings and appreciation thereon. 


1.38 Hardship  


        An immediate and heavy financial need of the Employee where such Employee lacks other available resources. 



1.39 Highest Average Compensation  


        The average Compensation for the three consecutive Years of Service with the Employer that produces the highest average. A Year of Service with the Employer is
the 12-consecutive month period defined in the Adoption Agreement. 


1.40 Highly Compensated Employee  


        Any Employee who performs service for the Employer during the determination year and who, during the immediate prior year: 



        (a)  received Compensation from the Employer in excess of $75,000 [as adjusted pursuant to Code
Section 415(d)]; or 


        (b)  received Compensation from the Employer in excess of $50,000 [as adjusted pursuant to Code
Section 415(d)] and was a member of the Top-Paid Group for such year; or 


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




        Notwithstanding
(a), (b) and (c), an Employee who was not Highly Compensated during the preceding Plan Year shall not be treated as a Highly Compensated Employee with respect to the
current Plan Year, unless such Employee is a member of the 100 Employees paid the greatest Compensation during the year for which such determination is being made. 



        (d)  Employees who are five percent (5%) Owners at any time during the immediate prior year or determination year. 




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


9





 

1.41 Hour Of Service  



        (a)  Hour Counting Method: 



        (1)  Each hour for which an Employee is paid, or entitled to payment, for the performance of duties for the Employer. These
hours shall be credited to the Employee for the computation period in which the duties are performed; and 


        (2)  Each hour for which an Employee is paid, or entitled to payment, by the Employer on account of a period of time during
which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military
duty or leave of absence. No more than 501 Hours of Service shall be credited under this paragraph for any single continuous period (whether or not such period occurs in a single computation period).
Hours under this paragraph shall be calculated and credited pursuant to Section 2530.200b-2 of the Department of Labor Regulations which are incorporated herein by this reference; and 


        (3)  Each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the Employer. The
same Hours of Service shall not be credited both under paragraph (a) or paragraph (b), as the case may be, and under this paragraph (c). These hours shall 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. 


        (4)  Hours of Service shall be credited for employment with the Employer and with other members of an affiliated service group
[as defined in Code Section 414(m)], a controlled group of corporations [as defined in Code Section 414(b)], or a group of trades or
businesses under common control [as defined in Code Section 414(c)] of which the adopting Employer is a member, and any other entity required to be aggregated with the
Employer pursuant to Code Section 414(o) and the regulations thereunder. Hours of Service shall also be credited for any individual considered an Employee for purposes of this Plan under Code
Section 414(n) or Code Section 414(o) and the regulations thereunder. 


        (5)  Solely for the purposes of determining whether a Break in Service, as defined in paragraph 1.10, for participation
and vesting purposes has occurred in a computation period, an individual who is absent from work for maternity or paternity reasons shall receive credit for the Hours of Service which would otherwise
have been credited to such individual but for such absence, or in any case in which such hours cannot be determined, 8 Hours of Service per day of such absence. For purposes of this paragraph, an
absence from work for maternity or paternity reasons means an absence by reason of the pregnancy of the individual, by reason of a birth of a child of the individual, by reason of the placement of a
child with the individual in connection with the adoption of such child by such individual, or for purposes of caring for such child for a period beginning immediately following such birth or
placement. The Hours of Service credited under this paragraph shall be credited in the computation period in which the absence begins if the crediting is necessary to prevent a Break in Service in
that period, or in all other cases, in the following computation period. No more than 501 hours will be credited under this paragraph. 


        (6)  Unless specified otherwise in the Adoption Agreement, the Hours of Service Method shall be used. Also, unless specified
otherwise in the Adoption Agreement, Hours of Service shall be determined on the basis of actual hours for which an Employee is paid or entitled to payment. 




10













  



        (b)  Elapsed Time Method: 



        (1)  For purposes of this section, Hour of Service shall mean each hour for which an Employee is paid or entitled to payment
for the performance of duties for the Employer. 


        (2)  Break In Service is a period of severance of at least 12 consecutive months. 


        (3)  Period of severance is a continuous period of time during which the Employee is not employed by the Employer. Such period
begins on the date the Employee retires, quits or is discharged, or if earlier, the 12 month anniversary of the date on which the Employee was otherwise first absent from service. 


        (4)  In the case of an individual who is absent from work for maternity or paternity reasons, the 12-consecutive-month period
beginning on the first anniversary of the first date of such absence shall not constitute a Break In Service. For purposes of this paragraph, an absence from work for maternity or paternity reasons
means an absence (i) by reason of the pregnancy of the individual, (ii) by reason of the birth of a child of the individual, (iii) by reason of the placement of a child with the
individual in connection with the adoption of such child by such individual, or (iv) for purposes of caring for such child for a period beginning immediately following such birth or placement. 


        (5)  Each Employee will share in Employer contributions for the period beginning on the date the Employee commences
participation under the plan and ending on the date on which such Employee severs employment with the Employer or is no longer a member of an eligible class of Employees. 


        (6)  If the Employer is a member of an affiliated service group (under section 414(m)), a controlled group of
corporations (under section 414(b)), a group of trades or businesses under common control (under section 414(c)) or any other entity required to be aggregated with the Employer pursuant
to section 414(o), service will be credited for any employment for any such period of time for any other member of such group. Service will also be credited for any individual required under
section 414(n) or section 414(o) to be considered an Employee of any Employer aggregated under section 414(b), (c), or (m). 





1.42 Key Employee  


        Any Employee or former Employee (and the beneficiaries of such employee) who at any time during the determination period was an officer of the Employer if such
individual's annual compensation exceeds 50% of the dollar limitation under Code Section 415(b)(1)(A) (the defined benefit maximum amount benefit), an owner (or considered an owner under Code Section
318) of one of the ten largest interests in the employer if such individual's compensation exceeds 100% of the dollar limitation under Code Section 415(c)(1)(A), a 5% owner of the Employer, or a 1%
owner of the Employer who has an annual compensation of more than $150,000. For purposes of determining who is a Key Employee, annual compensation shall mean Compensation as defined for Article X, but
including amounts deferred through a salary reduction agreement to a cash or deferred plan under Code Section 401(k), a Simplified Employee Pension Plan under Code Section 408(k), a cafeteria
plan under Code Section 125 or a tax-deferred annuity under Code Section 403(b). The determination period is the Plan Year containing the Determination Date and the four preceding Plan Years.
The determination of who is a Key Employee will be made in accordance with Code Section 416(i)(1) and the regulations thereunder. 



1.42 Leased Employee  


        Any person (other than an Employee of the recipient) who, pursuant to an agreement between the recipient and any other person ("leasing organization"), has
performed services for the recipient [or for 


11





 




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 of a
type historically performed by Employees in the business field of the recipient Employer. 


1.44 Limitation Year  


        The Plan Year as designated by the Employer in the Adoption Agreement for purposes of determining the maximum Annual Addition to a Participant's account. All
qualified plans maintained by the Employer must use the same Limitation Year. If the Limitation Year is amended to a different 12-consecutive-month period, the new Limitation Year must begin on a date
within the Limitation Year in which the amendment is made. 



1.45 Master Or Prototype Plan  


        A plan, the form of which is the subject of a favorable opinion letter from the Internal Revenue Service. 


1.46 Matching Contribution  


        An Employer contribution made to this or any other defined contribution plan on behalf of a Participant on account of an Employee Voluntary Contribution made by
such Participant, or on account of a Participant's Elective Deferral, under a Plan maintained by the Employer. 



1.47 Maximum Permissible Amount  


        The maximum Annual Addition that may be contributed or allocated to a Participant's account under the plan for any Limitation Year shall not exceed the lesser of: 



        (a)  the defined Contribution Dollar Limitation, or 


        (b)  25% of the Participant's Compensation for the Limitation Year. 




        The
compensation limitation referred to in (b) shall not apply to any contribution for medical benefits [within the meaning of Code Section 401(h) or Code Section
419A(f)(2)] which is otherwise treated as an Annual Addition under Code Section 415(l)(1) or 419(d)(2). If a short Limitation Year is created because of an amendment changing the
Limitation Year to a different 12-consecutive month period, the Maximum Permissible Amount will not exceed the Defined Contribution Dollar Limitation multiplied by the following fraction: Number of
months in the short Limitation Year divided by 12. 



1.48 Net Profit  


        The current and accumulated operating earnings of the Employer before Federal and State income taxes, excluding nonrecurring or unusual items of income, and
before contributions to this and any other qualified plan of the Employer. Unless otherwise specified in the Adoption Agreement, profits will not be required for Profit-Sharing contributions to the
Plan. 


1.49 Normal Retirement Age  



        The age, set by the Employer in the Adoption Agreement, at which a Participant may retire and receive his or her benefits under the Plan. Unless otherwise
specified in the Adoption Agreement, the Normal Retirement Age shall be 65. 


1.50 Owner-Employee  


        A sole proprietor, or a partner owning more than 10% of either the capital or profits interest of the partnership. 


12





 



1.51 Paired Plans  


        Two or more Plans maintained by the Sponsor designed so that a single or any combination of Plans adopted by an Employer will meet the antidiscrimination rules,
the contribution and benefit limitations, and the Top-Heavy provisions of the Code. 



1.52 Participant  


        Any Employer who has met the eligibility requirements and is participating in the Plan. 


1.53 Participant's Benefit  


        The account balance as of the last Valuation Date in the calendar year immediately preceding the Distribution Calendar Year (valuation calendar year) increased by
the amount of any contributions or forfeitures allocated to the account balance as of the dates in the valuation calendar year after the Valuation Date and decreased by distributions made in the
valuation calendar year after the Valuation Date. A special exception exists for the second distribution Calendar Year. For purposes of this paragraph, if any portion of the minimum distribution for
the First Distribution Calendar Year is made in the second Distribution Calendar Year on or before the Required Begining Date, the amount of the minimum distribution made in the second distribution
calendar year shall be treated as if it had been made in the immediately preceding Distribution Calendar Year. 


1.54 Permissive Aggregation Group  


        Used for Top-Heavy testing purposes, it is the Required Aggregation Group of plans plus any other plan or plans of the 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. 


1.55 Plan  


        The Employer's retirement plan as embodied herein and in the Adoption Agreement. 


1.56 Plan Administrator  


        The Employer. 



1.57 Year  


        The 12-consecutive month period designated by the Employer in the Adoption Agreement. If no such period is designated, the Plan Year shall be the Employer's
taxable year. 


1.58 Present Value  


        Used for Top-Heavy test and determination purposes, when determining the Present Value of accrued benefits, with respect to any Defined Benefit Plan maintained by
the Employer, interest and mortality rates shall be determined in accordance with the provisions of the respective plan. If applicable, interest and mortality assumptions will be specified in Section
11 of the Adoption Agreement. 


1.59 Projected Annual Benefit  


        Used to test the maximum benefit which may be obtained from a combination of retirement plans, it is the annual retirement benefit (adjusted to an actuarial
equivalent straight life annuity if such benefit is expressed in a form other than a straight life annuity or Qualified Joint and Survivor 


13





 




Annuity) to which the Participant would be entitled under the terms of a Defined Benefit Plan or plans, assuming: 



        (a)  the Participant will continue employment until Normal Retirement Age under the plan (or current age, if later), and 


        (b)  the Participant's Compensation for the current Limitation Year and all other relevant factors used to determine benefits
under the plan will remain constant for all future Limitation Years. 




1.60 Qualified Deferred Compensation Plan  


        Any pension, profit-sharing, stock bonus, or other plan which meets the requirements of Code Section 401 and includes a trust exempt from tax under Code Section
501(a) or any annuity plan described in Code Section 403(a). 


        An
Eligible Retirement Plan is an individual retirement account (IRA) as described in section 408(a) of the Code, an individual retirement annuity (IRA) as described in section 408(b) of
the Code, an annuity plan as described in section 403(a) of the Code, or a qualified trust as described in section 401(a) of the Code, which accepts Eligible Rollover Distributions. However, in the
case of an Eligible Rollover Distribution to a surviving Spouse, an Eligible Retirement Plan is an individual retirement account or individual retirement annuity. 


1.61 Qualified Domestic Relations Order  



        A QDRO is a signed Domestic Relations Order issued by a State Court which creates, recognizes or assigns to an alternate payee(s) the right to receive all or part
of a Participant's Plan benefit and which meets the requirements of Code Section 414(p). An alternate payee is a Spouse, former Spouse, child, or other dependent who is treated as a beneficiary under
the plan as a result of the QDRO. 


1.62 Qualified Early Retirement Age  


        For purposes of paragraph 8.9, Qualified Early Retirement Age is the latest of: 



        (a)  the earliest date, under the Plan, on which the Participant may elect to receive retirement benefits, or 


        (b)  the first day of the 120th month beginning before the Participant reaches Normal Retirement Age, or 


        (c)  the date the Participant begins participation. 




1.63 Qualified Joint And Survivor Annuity  



        An immediate annuity for the life of the Participant with a survivor annuity for the life of the Participant's Spouse which is at least one-half of but not more
than the amount of the annuity payable during the joint lives of the Participant and the Participant's Spouse. The exact amount of the Survivor Annuity is to be specified by the Employer in the
Adoption Agreement. If not designated by the Employer, the Survivor Annuity will be 1/2 of the amount paid to the Participant during his or her lifetime. The Qualified Joint and
Survivor Annuity will be the amount of benefit which can be provided by the Participant's Vested Account Balance. 



1.64 Qualified Matching Contribution  


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


14





 



1.65 Qualified Non-Elective Contributions  


        Contributions (other than Matching Contributions or Qualified Matching Contributions) made by the Employer and allocated to Participants' accounts that the
Participants may not elect to receive in cash until distributed from the Plan; that are nonforfeitable when made; and that are distributable only in accordance with the distribution provisions that
are applicable to Elective Deferrals and Qualified Matching Contributions. 


1.66 Qualified Voluntary Contribution  


        A tax-deductible voluntary Employee contribution. These contributions may no longer be made to the Plan. 



1.67 Required Aggregation Group  


        Used for Top-Heavy testing purposes, it consists of: 



        (a)  each qualified plan of the Employer in which at least one Key Employee participates or participated at any time during
the determination period (regardless of whether the plan has terminated), and 


        (b)  any other qualified plan of the Employer which enables a plan described in (a) to meet the requirements of Code Sections
401(a)(4) or 410. 




1.68 Required Beginning Date  


        The date on which a Participant is required to take his or her first minimum distribution under the Plan. The rules are set forth at paragraph 7.5. 


1.69 Rollover Contribution  


        A contribution made by a Participant of an amount distributed to such Participant from another Qualified Deferred Compensation Plan in accordance with Code
Sections 402(a)(5), (6), and (7). An
Eligible Rollover Distribution is any distribution of all or any portion of the balance to the credit of the Participant except that an Eligible Rollover Distribution does not include: 



        (a)  any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually)
made for the life (or life expectancy) of the Participant or the joint lives (or joint life expectancies) of the Participant and the Participant's Designated Beneficiary, or for a specified period of
ten years or more; 


        (b)  any distribution to the extent such distribution is required under section 401(a)(9) of the Code; and 


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




        A
Direct Rollover is a payment by the plan to the Eligible Retirement Plan specified by the Participant. 



1.70 Salary Savings Agreement  


        An agreement between the Employer and a participating Employee where the Employee authorizes the Employer to withhold a specified percentage of his or her
Compensation for deposit to the Plan on behalf of such Employee. 


15





 



1.71 Self-Employed Individual  


        An individual who has Earned Income for the taxable year from the trade or business for which the Plan is established including an individual who would have
Earned Income but for the fact that the trade or business had no Net Profit for the taxable year. 


1.72 Service  


        The period of current or prior employment with the Employer. If the Employer maintains a plan of a predecessor employer, Service for such predecessor shall be
treated as Service for the Employer. 


1.73 Service Company  


        Prudential Mutual Fund Services, Inc., or its successor serving from time to time. 


1.74 Shareholder Employee  


        An Employee or Officer who owns [or is considered as owning within the meaning of Code Section 318(a)(1)], on any day during the taxable
year of an electing small business corporation (S Corporation), more than 5% of such corporation's outstanding stock. 


1.75 Simplified Employee Pension Plan  


        An individual retirement account which meets the requirements of Code Section 408(k), and to which the Employer makes contributions pursuant to a written formula.
These plans are considered for contribution limitation and Top-Heavy testing purposes. 



1.76 Sponsor  


        Shall be Prudential Mutual Fund Management, Inc. 


1.77 Spouse (Surviving Spouse)  


        The Spouse or Surviving Spouse of the Participant, provided that a former Spouse will be treated as the Spouse or Surviving Spouse and a current Spouse will not
be treated as the Spouse or Surviving Spouse to the extent provided under a Qualified Domestic Relations Order as described in Code Section 414(p). 



1.78 Super Top-Heavy Plan  


        A Plan described at paragraph 1.81 under which the Top-Heavy Ratio [as defined at paragraph 1.82] exceeds 90%. 


1.79 Taxable Wage Base  


        For plans with an allocation formula which takes into account the Employer's contribution under the Federal Insurance Contributions Act (FICA), the contribution
and benefit base in effect under Section 230, of the Social Security Act, at the beginning of the Plan Year, or the amount elected by the Employer in the Adoption Agreement. 


1.80 Top-Heavy Determination Date  


        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, the last day of that year. 


16









   1.81 Top-Heavy Plan  


        For any Plan Year beginning after 1983, the Employer's Plan is top-heavy if any of the following conditions exist: 



        (a)  If the Top-Heavy Ratio for the Employer's Plan exceeds 60% and this Plan is not part of any required Aggregation Group or
Permissive Aggregation Group of Plans. 


        (b)  If the Employer's plan is a part of a Required Aggregation Group of plans but not part of a Permissive Aggregation Group
and the Top-Heavy Ratio for the group of plans exceeds 60%. 


        (c)  If the Employer's plan is a part of a Required Aggregation Group and part of a Permissive Aggregation Group of plans and
the Top-Heavy Ratio for the Permissive Aggregation Group exceeds 60%. 




1.82 Top-Heavy Ratio  



        (a)  If the Employer maintains one or more Defined Contribution plans (including any Simplified Employee Pension Plan) and the
Employer has not maintained any Defined Benefit Plan which during the 5-year period ending on the Determination Date(s) has or has had accrued benefits, the Top-Heavy Ratio for this Plan alone, or for
the Required or Permissive Aggregation Group as appropriate, is a fraction, 



        (1)  the numerator of which is the sum of the account balances of all Key Employees as of the Determination Date(s)
[including any part of any account balance distributed in the 5-year period ending on the Determination Date(s)], and 


        (2)  the denominator of which is the sum of all account balances [including any part of any account balance
distributed in the 5-year period ending on the Determination Date(s)], 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. 



        (b)  If the Employer maintains one or more Defined Contribution Plans (including any Simplified Employee Pension Plan) and the
Employer maintains or has maintained one or more Defined Benefit Plans which during the 5-year period ending on the Determination Date(s) has or has had any accrued benefits, the Top-Heavy Ratio for
any Required or Permissive Aggregation Group as appropriate is a fraction, the numerator of which is the sum of account balances under the aggregated Defined Contribution Plan or Plans for all Key
Employees, determined in accordance with (a) 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(s),
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 (a) above, and the Present
Value of accrued benefits under the Defined Benefit Plan or Plans for all Participants as of the Determination Date(s), 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 5-year
period ending on the Determination Date. 


        (c)  For purposes of (a) and (b) above, the value of account balances and the Present Value of accrued benefits will be
determined as of the most recent Valuation Date that falls within or ends with the 12-month period ending on the Determination Date, except as provided in Code Section 416 and the regulations
thereunder for the first and second plan years of a Defined 



17





 





Benefit Plan. The account balances and accrued benefits of a participant (1) who is not a Key Employee but who was a Key Employee in a prior year, or (2) who has not been credited with
at least one hour of service with any Employer maintaining the Plan at any time during the 5-year period 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. Qualified Voluntary 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 (1) the method, if any, that
uniformly applies for accrual purposes under all Defined Benefit Plans maintained by the Employer, or (2) if there is no such method, as if such benefit accrued not more rapidly than the
slowest accrual rate permitted under the fractional rule of Code Section 411(b)(1)(C). 




1.83 Top-Paid Group  


        The group consisting of the top 20% of Employees when ranked on the basis of Compensation paid during such year. For purposes of determining the number of
Employees in the group (but not who is in it), the following Employees shall be excluded: 



        (a)  Employees who have not completed 6 months of Service. 


        (b)  Employees who normally work less than 171/2 hours per week. 



        (c)  Employees who normally do not work more than 6 months during any year. 


        (d)  Employees who have not attained age 21. 


        (e)  Employees included in a collective bargaining unit, covered by an agreement between employee representatives and the
Employer, where retirement benefits were the subject of good faith bargaining and provided that 90% or more of the Employer's Employees are covered by the agreement. 



        (f)    Employes who are nonresident aliens and who receive no earned income which constitutes income from sources within the
United States. 




1.84 Transfer Contribution  


        A non-taxable transfer of a Participant's benefit directly from a Qualified Deferred Compensation Plan to this Plan. 



1.85 Trustee  


        The individual(s) or institution appointed by the Employer in the Adoption Agreement. 


1.86 Valuation Date  


        The last business day of each Plan Year or such other date consistent with the operational cycle of the Service Company, as agreed to by the Employer and the
Service Company on which Participant accounts are revalued in accordance with Article V hereof. For Top-Heavy purposes, the date selected by the Employer as of which the Top-Heavy Ratio is
calculated. 


        The
value of mutual funds and other marketable investments shall be determined using the most recent price quoted on a national securities exchange or over the counter market. The value
of investments for which there is no market shall be determined in the sole judgement of the Employer or 


18





 




issuer and neither the Trustee nor Service Company shall have responsibility with respect to the valuation of such assets. 



1.87 Vested Account Balance  


        The aggregate value of the Participant's Vested Account Balances derived from Employer and Employee contributions (including Rollovers), whether vested before or
upon death, including the proceeds of insurance contracts, if any, on the Participant's life. The provisions of Article VIII shall apply to a Participant who is vested in amounts attributable
to Employer contributions, Employee contributions (or both) at the time of death or distribution. 



1.88 Voluntary Contribution  


        An Employee contribution made to the Plan by or on behalf of a Participant that is included in the Participant's gross income in the year in which made and that
is maintained under a separate account to which earnings and losses are allocated. 


1.89 Welfare Benefit Fund  


        Any fund that is part of a plan of the Employer, or has the effect of a plan, through which the Employer provides welfare benefits to Employees or their
beneficiaries. For these purposes, Welfare Benefits means any benefit other than those with respect to which Code Section 83(h) (related to transfers of property in connection with the performance of
services), Code Section 404 (related to deductions for contributions to an Employee's trust or annuity and Compensation under a deferred payment plan), Code Section 404A (related to certain foreign
deferred compensation plans) apply. A
"Fund" is any social club, voluntary employee benefit association, supplemental unemployment benefit trust or qualified group legal service organization described in Code Section 501(c)(7), (9), (17)
or (20); any trust, corporation, or other organization not exempt from income tax, or to the extent provided in regulations, any account held for an Employer by any person. 


1.90 Year Of Service  


        If the Hour counting method has been chosen by the Employer in the Adoption Agreement, a Year Of Service is a 12-consecutive month period during which an Employee
is credited with not less than 1,000 (or such lesser number as specified by the Employer in the Adoption Agreement) Hours of Service. If the Elapsed Time Method has been chosen by the Employer in the
Adoption Agreement, an Employee will receive credit for the aggregate of all time period(s) commencing with the Employee's first day of employment or reemployment and ending on the date a Break In
Service begins. The first day of employment or reemployment is the first day the Employee performs an Hour of Service. An Employee will also receive credit for any period of severance of less than 12
consecutive months. Fractional period of a year will be expressed in terms of days. 


ARTICLE II—ELIGIBILITY REQUIREMENTS  


2.1 Participation  


        Unless otherwise specified in the Adoption Agreement, the Plan shall cover all Employees having completed at least one Year of Service and who have attained age
21. Employees who meet the eligibility requirements in the Adoption Agreement on the Effective Date of the Plan shall become Participants as of the Effective Date of the Plan. Unless stated to the
contrary in the Adoption Agreement, all Employees employed on the Effective Date of the Plan may participate, even if they have not satisfied the Plan's specified eligibility requirements. Other
Employees shall become Participants on the Entry Date coinciding with or immediately following the date on which they meet the eligibility requirements. The Employee must satisfy the eligibility
requirements specified in the 


19





 




Adoption Agreement and be employed on the Entry Date to become a Participant in the Plan. In the event an Employee who is not a member of the eligible class of Employees becomes a member of the
eligible class, such Employee shall participate immediately if such Employee has satisfied the minimum age and service requirements and would have previously become a Participant had he or she been in
the eligible class. A former Participant shall again become a Participant upon returning to the employ of the Employer. For this purpose, Participant's Compensation and Service shall be considered
from date of rehire. 


2.2 Change In Classification Of Employment  


        If a Participant is transferred to an ineligible class of Employees, or is otherwise reclassified as an ineligible Employee, any contribution or allocation of
forfeitures which would otherwise be made for him hereunder for the Plan Year of such transfer or reclassification shall be made. No contribution or allocation of forfeitures for or by him shall be
made, however, for any subsequent Plan Year prior to the Plan Year in which he again becomes a Participant. 


2.3 Computation Period  


        To determine Years of Service and Breaks in Service for purposes of eligibility, the 12-consecutive month period shall commence on the date on which an Employee
first performs an Hour of Service for the Employer and each anniversary thereof, such that the succeeding 12-consecutive month period commences with the employee's first anniversary of employment and
so on. If, however, the period so specified is one year or less, the succeeding 12-consecutive month period shall commence on the first day of the Plan Year prior to the anniversary of the date they
first performed an Hour of Service regardless of whether the Employee is entitled to be credited with 1,000 (or such lesser number as specified by the Employer in the Adoption Agreement) Hours of
Service during their first employment year. 


2.4 Employment Rights  


        Participation in the Plan shall not confer upon a Participant any employment rights, nor shall it interfere with the Employer's right to terminate the employment
of any Employee at any time. 



2.5 Service With Controlled Groups  


        All Years of Service with other members of a controlled group of corporations [as defined in Code Section 414(b)], trades or businesses
under common control [as defined in Code Section 414(c)], or members of an affiliated service group [as defined in Code Section 414(m)] shall be
credited for purposes of determining an Employee's eligibility to participate. 


2.6 Owner-Employees  


        If this Plan provides contributions or benefits for one or more Owner-Employees who control both the business for which this Plan is established and one or more
other trades or businesses, this Plan and the Plan established for other trades or businesses must, when looked at as a single Plan, satisfy Code Sections 401(a) and (d) for the Employees of this and
all other trades or businesses. 


        If
the Plan provides contributions or benefits for one or more Owner-Employees who control one or more other trades or businesses, the Employees of the other trades or businesses must be
included in a Plan which satisfies Code Sections 401(a) and (d) and which provides contributions and benefits not less favorable than provided for Owner-Employees under this Plan. 



        If
an individual is covered as an Owner-Employee under the plans of two or more trades or businesses which are not controlled, and the individual controls a trade or business, then the 


20





 




contributions or benefits of the Employees under the plan of the trades or businesses which are controlled must be as favorable as those provided for him or her under the most favorable plan of the
trade or business which is not controlled. 


        For
purposes of the preceding sentences, an Owner-Employee, or two or more Owner-Employees, will be considered to control a trade or business if the Owner-Employee, or two or more
Owner-Employees together: 



        (a)  own the entire interest in an unincorporated trade or business, or 


        (b)  in the case of a partnership, own more than 50% of either the capital interest or the profits interest in the
partnership. 




        For
purposes of the preceding sentence, an Owner-Employee, or two or more Owner-Employees shall be treated as owning any interest in a partnership which is owned, directly or indirectly,
by a partnership which such Owner-Employee, or such two or more Owner-Employees, are considered to control within the meaning of the preceding sentence. 


2.7 Leased Employees  


        Any leased Employee shall be treated as an Employee of the recipient Employer; however, contributions or benefits provided by the leasing organization which are
attributable to services performed for the recipient Employer shall be treated as provided by the recipient Employer. A leased Employee shall not be considered an Employee of the recipient if such
Employee is covered by a money purchase pension plan providing: 



        (a)  a non-integrated Employer contribution rate of at least 10% of Compensation, [as defined in Code
Section 415(c)(3) but including amounts contributed by the Employer pursuant to a salary reduction agreement, which are excludable from the Employee's gross income under a cafeteria plan
covered by Code Section 125, a cash or deferred profit-sharing plan under Section 401(k) of the Code, a Simplified Employee Pension Plan under Code Section 402(h)(1)(B) and a
tax-sheltered annuity under Code Section 403(b)], 


        (b)  immediate participation, and 


        (c)  full immediate vesting. 




        This
exclusion is only available if Leased Employees do not constitute more than twenty percent (20%) of the recipients non-highly compensated work force. 


2.8 Omission Of Eligible 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 for the year has been made, the omitted Employee shall be included in the next valuation. The Employer shall make any additional contribution with respect to the omitted Employee
that may be deemed necessary. 


        Such
contribution shall be made regardless of whether it is deductible in whole or in part in any taxable year under applicable provisions of the Code. The Employee shall receive credit
under the terms of the Plan for any period during which he should have been included as a Participant. 


2.9 Inclusion Of Ineligible Employee  


        If in any Plan Year, any person who should not have been included as Participant in the Plan is erroneously included and discover of such incorrect inclusion is
not made until after a contribution for the year has been made, the Employer shall not be entitled to recover the contribution made with respect to the ineligible person regardless of whether or not a
deduction is allowable with respect to 


21





 




such contribution. In such event, the amount contributed with respect to the ineligible person shall be removed from the ineligible Employee's Account and treated as a forfeiture. 


ARTICLE III—EMPLOYER CONTRIBUTIONS  


3.1 Amount  


        The Employer intends to make periodic contributions to the Plan in accordance with the formula or formulas selected in the Adoption Agreement. However, the
Employer's contribution for any Plan Year shall be subject to the limitations on allocations contained in Article X. 



3.2 Expenses And Fees  


        The Employer shall also be authorized to reimburse the Fund for all expenses and fees incurred in the administration of the Plan or Trust and paid out of the
assets of the Fund. Such expenses shall include, but shall not be limited to, fees for professional services, printing and postage. Commissions may not be reimbursed. 


3.3 Responsibility For Contributions  


        The Trustee shall not be required to determine if the Employer has made a contribution or if the amount contributed is in accordance with the Adoption Agreement
or the Code. The Employer shall have sole responsibility in this regard. The Trustee shall be accountable solely for contributions actually received by it, within the limits of Article XI. 


3.4 Return of Contributions  


        Contributions made to the Fund by the Employer shall be irrevocable except as provided below: 



        (a)  Any contribution forwarded to the Trustee because of a mistake of fact, provided that the contribution is returned to the
Employer within one year of the contribution. 


        (b)  In the event that the Commissioner of Internal Revenue determines that the Plan is not initially qualified under the
Internal Revenue Code, any contribution made incident to that initial qualification by the Employer must be returned to the Employer within one year after the date the initial qualification is denied,
but only if the application for the qualification is made 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 as the
Secretary of the Treasury may prescribe. 



        (c)  Contributions forwarded to the Trustee are presumed to be deductible and are conditioned on their deductibility.
Contributions which are determined to not be deductible will be returned to the Employer. 




3.5 Form of Contribution  


        Except as contemplated in paragraphs 4.3 and 4.4, no contribution shall be made in property other than United States currency or such other property as is
acceptable to the Service Company. 


22









   ARTICLE IV—EMPLOYEE CONTRIBUTIONS  


4.1 Voluntary Contributions  


        Unless otherwise specified in the Adoption Agreement, an Employee may not make Voluntary Contributions to the Plan established hereunder. If permitted, they will
be made in a uniform and nondiscriminatory manner. Such contributions are subject to the limitations on Annual Additions and are subject to antidiscrimination testing. 


4.2 Qualified Voluntary Contributions  


        A Participant may no longer make Qualified Voluntary Contributions to the Plan. Amounts already contributed may not remain in the Trust Fund. The Participant must
withdraw the Qualified Voluntary Contribution amounts already contributed by making a written application to the Plan Administrator. 



4.3 Rollover Contribution  


        Unless provided otherwise in the Adoption Agreement, a Participant and an Employee in an eligible class of Employees who has not met the eligibility requirements
for participation in the Plan may make a Rollover Contribution to any Defined Contribution Plan established hereunder of all or any part of an amount distributed or distributable to him or her from a
Qualified Deferred Compensation Plan provided: 



        (a)  the amount distributed to the Participant is deposited in the Plan no later than the sixtieth day after such distribution
was received by the Participant, 


        (b)  the amount distributed is not one of a series of substantially equal periodic payments made for the life (or life
expectancy) of the Participant or the joint lives (or joint life expectancies) of the Participant and the Participant's Designated Beneficiary, or for a specified period of ten years or more; 


        (c)  the amount distributed is not required under section 401(a)(9) of the Code; 



        (d)  if the amount distributed included property such property is rolled over, or if sold the proceeds of such property may be
rolled over, 


        (e)  the amount distributed is not includible in gross income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities). 




        In
addition, if the Adoption Agreement allows Rollover Contributions, the Plan will also accept any Eligible Rollover Distribution (as defined at paragraph 1.69) directly to the
Plan. 


        Rollover
Contributions, which relate to distributions prior to January 1, 1993, must be made in accordance with paragraphs (a) through (e) and additionally meet the
requirements of paragraph (f): 



        (f)    the distribution from the Qualified Deferred Compensation Plan constituted the Participant's entire interest in such Plan
and was distributed within one taxable year to the Participant: 



        (1)  on account of separation from Service, a Plan termination, or in the case of a profit-sharing or stock bonus plan, a
complete discontinuance of contributions under such plan within the meaning of Section 402(a)(6)(A) of the Code, or 


        (2)  in one or more distributions which constitute a qualified lump sum distribution within the meaning of Code
Section 402(e)(4)(A), determined without reference to subparagraphs (B) and (H). 




23





 







        Such
Rollover Contribution may also be made through an Individual Retirement Account qualified under Code Section 408 where the IRA was used as a conduit from the Qualified
Deferred
Compensation Plan, the Rollover Contribution is made in accordance with the rules provided under paragraph (a) through (e) and the Rollover Contribution does not include any regular IRA
contributions, or earnings thereon, which the Participant may have made to the IRA. Rollover Contributions which relate to distributions prior to January 1, 1993, may be made through an IRA in
accordance with paragraphs (a) through (f) and additional requirements as provided in the previous sentence. The Trustee shall not be held responsible for determining the tax-free status of any
Rollover Contribution made under this Plan. 


4.4 Transfer Contribution  


        Unless provided otherwise in the Adoption Agreement, a Participant and an Employee in an eligible class of Employees who has not met the eligibility requirements
for participation in the Plan, may, subject to the provisions of paragraph 4.5, also arrange for the direct transfer of his or her benefit from a Qualified Deferred Compensation Plan to this
Plan. For accounting and record keeping purposes, Transfer Contributions shall be identical to Rollover Contributions. 



        In
the event the Employer accepts a Transfer Contribution from a Plan in which the Employee was directing the investments of his or her account, the Employer may continue to permit the
Employee to direct his or her investments in accordance with paragraph 13.7 with respect only to such Transfer Contribution. Notwithstanding the above, the Employer may refuse to accept such
Transfer Contributions. 


        Notwithstanding
anything to the contrary, if a Participant changes classification of employment between eligible and ineligible classes, then the Employer may transfer said Participant's
account balance between the appropriate plans maintained by the Employer, so long as such transfer will not result in an illegal cut back in benefits in violation of Code Section 411(d)(6). 


4.5 Employer Approval Of Transfer Contributions  


        The Employer maintaining a Safe-Harbor Profit-Sharing Plan in accordance with the provisions of paragraph 8.7, acting in a nondiscriminatory manner, may in
its sole discretion refuse to allow Transfer Contributions to its profit-sharing plan, if such contributions are directly or indirectly being transferred from a defined benefit plan, a money purchase
pension plan (including a target benefit plan), a stock bonus plan, or another profit-sharing plan which would otherwise provide for a life annuity form of payment to the Participant. 


4.6 Elective Deferrals  


        A Participant may enter into a Salary Savings Agreement with the Employer authorizing the Employer to withhold a portion of such Participant's Compensation not to
exceed $7,000 per calendar year as adjusted under Code Section 415(d) or, if lesser, the percentage of Compensation specified in the Adoption Agreement and to deposit such amount to the Plan.
No Participant shall be permitted to have Elective Deferrals made under this Plan or any other qualified plan maintained by the Employer, during any taxable year, in excess of the dollar limitation
contained in Code Section 402(g) in effect at the beginning of such taxable year. Thus, the $7,000 limit may be reduced if a Participant contributes pre-tax contributions to qualified plans of
this or other Employers. Any such contribution shall be credited to the Employee's Salary Savings Account. Unless otherwise specified in the Adoption Agreement, a Participant may amend his or her
Salary Savings Agreement to increase, decrease or terminate the percentage upon 30 days written notice to the Employer. If a Participant terminates his or her agreement, such Participant shall not be
permitted to put a new Salary Savings Agreement into effect until the first pay period in the next Plan Year, unless otherwise stated in the Adoption 


24





 




Agreement. The Employer may also amend or terminate said agreement on written notice to the Participant. If a Participant has not authorized the Employer to withhold at the maximum rate and desires
to increase the total withheld for a Plan Year, such Participant may authorize the Employer upon 30 days notice to withhold a supplemental amount up to 100% of his or her Compensation for one or more
pay periods. In no event may the sum of the amounts withheld under the Salary Savings Agreement plus the supplemental withholding exceed 25% of a Participant's Compensation for a Plan Year. Elective
Deferrals shall be deposited in the Trust no later than the date described in Section 2510.3-102 of the Department of Labor Regulations. 


4.7 Direct Rollover Of Benefits  


        Notwithstanding any provision of the plan to the contrary that would otherwise limit a Participant's election under this Paragraph, for distributions made on or
after January 1, 1993, a Participant may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an Eligible Rollover Distribution paid directly to an
Eligible Retirement Plan specified by the Participant in a Direct Rollover. Any portion of a distribution which is not paid directly to an Eligible Retirement Plan shall be distributed to the
Participant. For purposes of this Paragraph, a Surviving Spouse or a spouse or former spouse who is an alternate payee under a Qualified Domestic Relations Order as defined in section 414(p) of
the Code, will be permitted to elect to have any Eligible Rollover Distribution paid directly to an individual retirement account (IRA), an individual retirement annuity (IRA), or another qualified
retirement Plan. 


        The
plan provisions otherwise applicable to distributions continue to apply to Rollover and Transfer Contributions. 


ARTICLE V—PARTICIPANT ACCOUNTS  



5.1 Separate Accounts  


        The Employer shall establish a separate bookkeeping account for each Participant showing the total value of his or her interest in the Fund. Each Participant's
account shall be separated for bookkeeping purposes into the following sub-accounts: 



        (a)  Employer contributions. 



        (1)  Matching Contributions. 


        (2)  Qualified Matching Contributions. 


        (3)  Qualified Non-Elective Contributions. 


        (4)  Discretionary Contributions. 


        (5)  Elective Deferrals. 




        (b)  Voluntary Contributions (and additional amounts including required contributions and, if applicable, either repayments of
loans previously defaulted on and treated as "deemed distributions" on which a tax report has been issued, and amounts paid out upon a separation from service which have been included in income and
which are repaid after being re-hired by the Employer). 


        (c)  Transfer Contributions. 


        (d)  Rollover Contributions. 



25





 





5.2 Adjustments To Participant Accounts  


        As of each Valuation Date of the Plan, the Employer shall add to each account: 



        (a)  the Participant's share of the Employer's contribution and forfeitures as determined in the Adoption Agreement, 


        (b)  any Elective Deferrals, Voluntary, Rollover or Transfer Contributions made by the Participant, 


        (c)  any repayment of amounts previously paid out to a Participant upon a separation from Service and repaid by the
Participant since the last Valuation Date, and 


        (d)  the Participant's proportionate share of any investment earnings and increase in the fair market value of the Fund since
the last Valuation Date, as determined at paragraph 5.4. 




        The
Employer shall deduct from each account: 



        (e)  any withdrawals or payments made from the Participant's account since the last Valuation Date, and 



        (f)    the Participant's proportionate share of any decrease in the fair market value of the Fund since the last Valuation Date,
as determined at paragraph 5.4. 




5.3 Allocating Employer Contributions  


        The Employer's contribution shall be allocated to Participants in accordance with the allocation formula selected by the Employer in the Adoption Agreement, and
the minimum contribution and allocation requirements for Top-Heavy Plans. Unless otherwise specified in the Adoption Agreement, the Plan will
not be integrated with Social Security. Beginning with the 1990 Plan Year and thereafter, for plans on Standardized Adoption Agreement 001, Participants who are credited with more than 500 Hours of
Service or are employed on the last day of the Plan Year must receive a full allocation of Employer contributions. In Nonstandardized Adoption Agreement 002, Employer contributions shall be allocated
to the accounts of Participants employed by the Employer on the last day of the Plan Year unless indicated otherwise in the Adoption Agreement. In the case of a non-Top-Heavy, Nonstandardized Plan,
Participants must also have completed a Year of Service unless otherwise specified in the Adoption Agreement. For Nonstandardized Adoption Agreement 002, the Employer may only apply the last day of
the Plan Year and Year of Service requirements if the Plan satisfies the requirements of Code Sections 401(a)(26) and 410(b) and the regulations thereunder including the exception for 401(k)
plans. If, when applying the last day and Year of Service requirements, the Plan fails to satisfy the aforementioned requirements, additional Participants will be eligible to receive an allocation of
Employer Contributions until the requirements are satisfied. Participants who are credited with a Year of Service, but not employed at Plan Year end, are the first category of additional Participants
eligible to receive an allocation. If the requirements are still not satisfied, Participants credited with more than 500 Hours of Service and employed at Plan Year end are the next category of
Participants eligible to receive an allocation. Finally, if necessary to satisfy the said requirements, any Participant credited with more than 500 Hours of Service will be eligible for an allocation
of Employer Contributions. The Service requirement is not applicable with respect to any Plan Year during which the Employer's Plan is Top-Heavy. 



        In
the event the Employer selects an integrated allocation formula, the Employer's contribution will be allocated in accordance with the following method unless otherwise specified in
the Adoption Agreement: 



        (a)  First, to the extent contributions and forfeitures are sufficient, all Participants will receive an allocation equal to
3% of their Compensation. 



26





 

        (b)  Next, any remaining Employer Contributions and forfeitures will be allocated to Participants who have Compensation in
excess of the Taxable Wage Base (excess Compensation). Each such Participant will receive an allocation in the ratio that his or her excess compensation bears to the excess Compensation of all
Participants. Participants may only receive an allocation of 3% of excess Compensation. 


        (c)  Next, any remaining Employer contributions and forfeitures will be allocated to all Participants in the ratio that their
Compensation plus excess Compensation bears to the total Compensation plus excess Compensation of all Participants. Participants may only receive an allocation of up to 2.7% of their Compensation plus
excess Compensation, under this allocation method. If the Taxable Wage Base is defined in Section 3 of the Adoption Agreement is less than the maximum, but more than the greater of $10,000 or
20% of the maximum, then the 2.7% must be reduced. If the amount specified is greater than 80% but less than 100% of the maximum Taxable Wage Base, the 2.7% must be reduced to 2.4%.
If the amount specified is greater than the greater of $10,000 or 20% of the maximum Taxable Wage Base, but not more than 80%, 2.7% must be reduced to 1.3%. 


        (d)  Next, any remaining Employer contributions and forfeitures will be allocated to all Participants (whether or not they
received an allocation under the preceding paragraphs) in the ratio that each Participant's Compensation bears to all Participant's Compensation. 




        If
the Plan is not Top-Heavy, subparagraphs (a) and (b) above may be disregarded and 5.7%, 5.4% or 4.3% may be substituted for 2.7%, 2.4% or 1.3% where it appears in (c) above. 


5.4 Allocating Investment Earnings And Losses  



        A Participant's share of investment earnings and any increase or decrease in the fair market value of the Fund shall be based on the proportionate value of all
active accounts (other than accounts with segregated investments) as of the last Valuation Date less withdrawals since the last Valuation Date. If applicable, segregated accounts may be allocated
earnings, up through the date of segregation, under the above method, at the Plan Administrator's discretion. If Employer and/or Employee contributions are made monthly, quarterly, or on some other
systematic basis, the adjusted value of such accounts for allocation of investment income and gains or losses shall include one-half the contributions for such period. If Employer and/or Employee
contributions are not made on a systematic basis, it is assumed that they are made at the end of the valuation period and therefore will not receive an allocation of investment earnings and gains or
losses for such period. Notwithstanding the above, if contributions are made on a nonsystematic basis, at the Plan Administrator's discretion, such contributions will be credited with an allocation of
the actual investment earnings and gains and losses from the actual date of deposit of each such contribution until the end of the period. In no event shall this election of allocating gains and
losses be used to discriminate. Finally, the Plan Administrator may elect to disregard nonsystematic contributions made during the year, altogether, and allocate earnings exclusively on the basis of
all active accounts (other than accounts with segregated investments) as of the last Valuation Date less withdrawals since the last Valuation Date, or, if applicable, take into consideration any
systematic contributions, as provided above. Accounts with segregated investments shall receive only the income or loss on such segregated investments. 


5.5 Participant Statements  


        The Employer shall periodically (not less often than annually), prepare a statement for each Participant showing the additions to and subtractions from his or her
account since the last such statement and the fair market value of his or her account as of the date for which the statement is prepared. 


27









   ARTICLE VI—RETIREMENT BENEFITS AND DISTRIBUTIONS  


6.1 Normal Retirement Benefits  


        A Participant shall be entitled to receive the balance held in his or her account from Employer contributions upon attaining Normal Retirement Age or at such
earlier dates as the provisions of this Article VI may allow. If the Participant elects to continue working past his or her Normal Retirement Age, he or she will continue as an active Plan Participant
and no distribution shall be made to such Participant until his or her actual retirement date unless the employer elects otherwise in the Adoption Agreement, or a minimum distribution is required by
law. Settlement shall be made in the normal form, or if elected, in one of the optional forms of payment provided below. 


6.2 Early Retirement Benefits  


        If the Employer so provides in the Adoption Agreement, an Early Retirement Benefit will be available to individuals who meet the age and Service requirements. An
individual who meets the Early Retirement Age requirements and separates from Service, will become fully vested, regardless of any vesting schedule which otherwise might apply. If a Participant
separates from Service before satisfying the age requirements, but after having satisfied the Service requirement, the Participant will be entitled to elect an Early Retirement benefit upon
satisfaction of the age requirement. 


6.3 Benefits On Termination Of Employment  



        (a)  If a Participant terminates employment prior to Normal Retirement Age, such Participant shall be entitled to receive the
vested balance held in his or her account payable at Normal Retirement Age in
the normal form, or if elected, in one of the optional forms of payment provided hereunder. If applicable, the Early Retirement Benefit provisions may be elected. Notwithstanding the preceding
sentence, a former Participant may, if allowed in the Adoption Agreement, make application to the Employer requesting early payment of any deferred vested and nonforfeitable benefit due. 


        (b)  If a Participant terminates employment, and the value of that Participant's vested account balance derived from Employer
and Employee contributions is not greater than $3,500, the Participant may receive a lump sum distribution of the value of the entire vested portion of such account balance and the non-vested portion
will be treated as a forfeiture. The Employer shall continue to follow their consistent policy, as may be established, regarding immediate cash-outs of Vested Account Balances of $3,500 or less. For
purposes of this Article, if the value of a Participant's Vested Account Balance is zero, the Participant shall be deemed to have received a distribution of such Vested Account Balance immediately
following termination. Likewise, if the Participant is reemployed prior to incurring 5 consecutive 1-year Breaks In Service they will be deemed to have immediately repaid such distribution. For Plan
Years beginning prior to 1989, a Participant's Vested Account Balance shall not include Qualified Voluntary Contributions. Notwithstanding the above, if the Employer maintains or has maintained a
policy of not distributing any amounts until the Participant's Normal Retirement Age, the Employer can continue to uniformly apply such policy. 


        (c)  If a Participant terminates employment with a Vested Account Balance derived from Employer and Employee contributions in
excess of $3,500, and elects (with his or her Spouse's consent, if required) to receive 100% of the value of his or her Vested Account Balance in a lump sum, the non-vested portion will be treated as
a forfeiture. The Participant (and his or her Spouse, if required) must consent to any distribution, when the Vested Account Balance described above exceeds $3,500 or if at the time of any prior
distribution it exceeded $3,500. For purposes of this 



28





 





paragraph, for Plan Years beginning prior to 1989, a Participant's Vested Account Balance shall not include Qualified Voluntary Contributions. 


        (d)  Distribution of less than 100% of the Participant's Vested Account Balance shall be permitted upon termination of
employment. 


        (e)  If a Participant who is not 100% vested receives or is deemed to receive a distribution pursuant to this paragraph and
resumes employment covered under this Plan, the Participant shall have the right to repay to the Plan the full amount of the distribution attributable to Employer contributions on or before the
earlier of the date that the Participant incurs 5 consecutive 1-year Breaks in Service following the date of distribution or five years after the first date on which the Participant is subsequently
reemployed. In such event, the Participant's account shall be restored to the value thereof at the time the distribution was made and may further be increased by the Plan's income and investment gains
and/or losses on the undistributed amount from the date of distribution to the date of repayment. 


        (f)    A Participant shall also have the option, to postpone payment of his or her Plan benefits until the first day of April
following the calendar year in which he or she attains age 701/2. Any balance of a Participant's account resulting from his or her Employee contributions not previously withdrawn, if
any, may be withdrawn by the Participant immediately following separation from Service. 


        (g)  If a Participant ceases to be an active Employee as a result of a Disability as defined at paragraph 1.21, such
Participant shall be able to make an application for a disability retirement benefit payment. The Participant's account balance will be deemed "immediately distributable" as set forth in paragraph
6.4, and will be fully vested pursuant to paragraph 9.2. 




6.4 Restrictions On Immediate Distributions  



        (a)  An account balance is immediately distributable if any part of the account balance could be distributed to the
Participant (or Surviving Spouse) before the Participant attains (or would have attained if not deceased) the later of the Normal Retirement Age or age 62. 



        (b)  If the value of a Participant's vested account balance derived from Employer and Employee Contributions exceeds (or at
the time of any prior distribution exceeded) $3,500, and the account balance is immediately distributable, the Participant and his or her Spouse (or where either the Participant or the Spouse has
died, the survivor) must consent to any distribution of such account balance. The consent of the Participant and the Spouse shall be obtained in writing within the 90-day period ending on the annuity
starting date, which is the first day of the first period for which an amount is paid as an annuity or any other form. The Plan Administrator shall notify the Participant and the Participant's Spouse
of the right to defer any distribution until the Participant's account balance is no longer immediately distributable. Such notification shall include a general description of the material features,
and an explanation of the relative values of, the optional forms of benefit available under the plan in a manner that would satisfy the notice requirements of Code Section 417(a)(3), and shall be
provided no less than 30 days and no more than 90 days prior to the annuity starting date. 


        (c)  Notwithstanding the foregoing, only the Participant need consent to the commencement of a distribution in the form of a
qualified Joint and Survivor Annuity while the account balance is immediately distributable. Furthermore, if payment in the form of a Qualified Joint and Survivor Annuity is not required with respect
to the Participant pursuant to paragraph 8.7 of the Plan, only the Participant need consent to the distribution of an account balance that is immediately distributable. Neither the consent of
the Participant nor the Participant's Spouse shall be required to the extent that a distribution is required to satisfy Code Section 401(a)(9) or Code Section 415. 



29





 





In addition, upon termination of this Plan if the Plan does not offer an annuity option (purchased from a commercial provider), the Participant's account balance may, without the Participant's
consent, be distributed to the Participant or transferred to another Defined Contribution Plan [other than an employee stock ownership plan as defined in Code Section
4975(e)(7)] within the same controlled group. 


        (d)  For purposes of determining the applicability of the foregoing consent requirements to distributions made before the
first day of the first Plan Year beginning after 1988, the Participant's vested account balance shall not include amounts attributable to Qualified Voluntary Contributions. 


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



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



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





6.5 Normal Form Of Payment  


        The normal form of payment for a profit-sharing plan satisfying the requirements of paragraph 8.7 hereof shall be a lump sum with no option for annuity payments.
For all other plans, the normal form of payment hereunder shall be a Qualified Joint and Survivor Annuity as provided under Article VIII. A Participant whose vested account balance derived from
Employer and Employee contributions exceeds $3,500, or if at the time of any prior distribution it exceeded $3,500, shall (with the consent of his or her Spouse) have the right to receive his or her
benefit in a lump sum or in monthly, quarterly, semi-annual or annual payments from the Fund over any period not extending beyond the life expectancy of the Participant and his or her Beneficiary. For
purposes of this paragraph, for Plan Years prior to 1989, a Participant's Vested Account Balance shall not include Qualified Voluntary Contributions. The normal form of payment shall be automatic,
unless the Participant files a written request with the Employer prior to the date on which the benefit is automatically payable electing a lump sum or installment payment option. No amendment to the
Plan may eliminate one of the optional distribution forms listed above. 


6.6 Commencement Of Benefits  



        (a)  Unless the Participant elects otherwise, distribution of benefits will begin no later than the 60th day after the close
of the Plan Year in which the latest of the following events occurs: 



        (1)  the Participant attains age 65 (or normal retirement age if earlier), 



        (2)  the 10th anniversary of the year in which the Participant commenced participation in the Plan, or 


        (3)  the Participant terminates Service with the Employer. 




        (b)  Notwithstanding the foregoing, the failure of a Participant and Spouse (if necessary) to consent to a distribution while
a benefit is immediately distributable, within the meaning of paragraph 6.4 hereof, shall be deemed an election to defer commencement of payment of any benefit sufficient to satisfy this paragraph. 



30





 

6.7 Claims Procedures  


        Upon retirement, death, or other severance of employment, the Participant or his or her representative may make application to the Employer requesting payment of
benefits due and the manner of payment. If no application for benefits is made, the Employer shall automatically pay any vested benefit due hereunder in the normal form at the time prescribed at
paragraph 6.4. If an application for benefits is made, the Employer shall accept, reject, or modify such request and shall notify the Participant in writing setting forth the response of the Employer
and in the case of a denial or modification the Employer shall: 



        (a)  state the specific reason or reasons for the denial, 


        (b)  provide specific reference to pertinent Plan provisions on which the denial is based, 



        (c)  provide a description of any additional material or information necessary for the Participant or his representative to
perfect the claim and an explanation of why such material or information is necessary, and 


        (d)  explain the Plan's claim review procedure as contained in this Plan. 




        In
the event the request is rejected or modified, the Participant or his or her representative may within 60 days following receipt by the Participant or representative of such rejection
or modification, submit a written request for review by the Employer of its initial decision. Within 60 days following such request for review, the Employer shall render its final decision in writing
to the Participant or representative stating specific reasons for such decision. If the Participant or representative is not satisfied with the Employer's final decision, the Participant or
representative can institute an action in a federal court of competent jurisdiction; for this purpose, process would be served on the Employer. 


6.8 In-Service Withdrawals  


        An Employee may withdraw all or any part of the fair market value of his or her Voluntary Contributions, Qualified Voluntary Contributions, Rollover
Contributions, upon written request to the Employer. Transfer Contributions, which originate from a Plan meeting the safe-harbor provisions of paragraph 8.7, may also be withdrawn, by an Employee,
upon written request to the Employer. Transfer Contributions not meeting the safe-harbor provisions may only be withdrawn upon retirement, death, disability, termination or termination of the Plan,
and will be subject to Spousal consent requirements contained in Code Sections 411(a)(11) and 417. No such withdrawals are permitted from a money purchase plan until the participant reaches Normal
Retirement Age. Such request shall include the Employee's address, social security number, birthdate, and amount of the withdrawal. If at the time a distribution of Qualified Voluntary Contributions
is received the Participant has not attained age 591/2 and is not disabled, as defined at Code Section 22(e)(3), the Participant will be subject to a federal income tax penalty, unless
the distribution is rolled over to a qualified plan or individual retirement plan within 60 days of the date of distribution. A Participant may withdraw all or any part of the fair market value of his
or her pre-1987 Voluntary Contributions with or without withdrawing the earnings attributable thereto. Post-1986 Voluntary Contributions may only be withdrawn along with a portion of the earnings
thereon. The amount of the earnings to be withdrawn is determined by using the formula: DA [1 - (V ÷ V+E)], where DA is the distribution amount, V is the amount of
Voluntary Contributions and V+E is the amount of Voluntary Contributions plus the earnings attributable thereto. A Participant withdrawing his or her other contributions prior to attaining age
591/2, will be subject to a federal tax penalty to the extent that the withdrawn amounts are includible in income. Any Participant in a profit-sharing plan may, if permitted by the
Employer in the Adoption Agreement, withdraw all or any part of the fair market value of any of such vested contributions, plus the investment earnings thereon, after attaining age
591/2 without separating from Service. Such Employer contributions may not have been used to satisfy the antidiscrimination test of Code Section 401(k). 


31





 




Such distributions shall not be eligible for redeposit to the Fund. A withdrawal under this paragraph shall not prohibit such Participant from sharing in any future Employer Contribution he or she
would otherwise be eligible to share in. A request to withdraw amounts pursuant to this paragraph must if applicable, be consented to by the Participant's Spouse. The consent shall comply with the
requirements of paragraph 6.4 relating to immediate distributions. 


6.9 Hardship Withdrawal  


        Unless otherwise specified by the Employer in the Adoption Agreement, a Participant may not request a Hardship withdrawal prior to attaining age
591/2. If permitted and the Participant has not attained age 591/2, the Participant may be subject to a federal income tax penalty. Such request shall be in writing to
the Employer who shall have sole authority to authorize a hardship withdrawal, pursuant to the rules below. Hardship withdrawals may include Elective Deferrals regardless of when contributed and any
earnings accrued and credited thereon as of the last day of the Plan Year ending before July 1, 1989 and Employer related contributions including but not limited to Employer Matching Contributions,
plus the investment earnings thereon to the extent vested. Qualified Matching Contributions, Qualified Non-Elective Contributions and Elective Deferrals reclassified as Voluntary Contributions plus
the investment earnings thereon are only available for hardship withdrawal prior to age 591/2 to the extent that they were credited to the Participant's Account as of the last day of
the Plan Year ending prior to July 1, 1989. The Plan Administrator may limit withdrawals to Elective Deferrals and the earnings thereon as stipulated above. Hardship withdrawals are subject to the
Spousal consent requirements contained in Code Sections 401(a)(11) and 417. Only the following reasons are valid to obtain hardship withdrawal: 



        (a)  medical expenses [within the meaning of Code Section 213(d)], incurred or necessary for the
medical care of the Participant, his or her Spouse, children and other dependents, 


        (b)  purchase (excluding mortgage payments) of the principal residence for the Participant, 



        (c)  payment of tuition and related educational expenses for the next twelve (12) months of post-secondary education for the
Participant, his or her Spouse, children or other dependents, or 


        (d)  the need to prevent eviction of the Employee from or a foreclosure on the mortgage of, the Employee's principal
residence. 




        Furthermore,
the following conditions must be met in order for a withdrawal to be authorized: 



        (e)  the Participant has obtained all distributions, other than hardship distributions, and all nontaxable loans under all
plans maintained by the Employer, 


        (f)    all plans maintained by the Employer, other than flexible benefit plans under Code Section 125 providing for
current benefits, provide that the Employee's Elective Deferrals and Voluntary Contributions will be suspended for twelve months after the receipt of the Hardship distribution, 


        (g)  the distribution is not in excess of the amount of the immediate and heavy financial need [(a) through (d)
above], including amounts necessary to pay any federal, state or local income tax or penalties reasonably anticipated to result from the distribution, and 


        (h)  all plans maintained by the Employer provide that an Employee may not make Elective Deferrals for the Employee'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 taxable year, less the amount of such Employee's
pre-tax contributions for the taxable year of the hardship distribution. 



32











   
        If a distribution is made at a time when a Participant has a nonforfeitable right to less than 100% of the account balance derived from Employer contributions and the Participant may
increase the nonforfeitable percentage in the account: 



        (i)    A separate account will be established for the Participant's interest in the Plan as of the time of the distribution, and 


        (j)    At any relevant time the Participant's nonforfeitable portion of the separate account will be equal to an amount ("X")
determined by the formula: 




X
= P [AB + (R × D)] - (R × D) 






        For
purposes of applying the formula: "P" is the nonforfeitable percentage at the relevant time, "AB" is the account balance at the relevant time, "D" is the amount of the distribution
and "R" is the ratio of the account balance at the relevant time to the account balance after distribution. 


6.10 Order Of Withdrawals  


        Unless the Participant directs otherwise, withdrawals shall be made: 



        (a)  First, from amounts attributable to Voluntary Contributions; 


        (b)  Second, from amounts attributable to Rollover Contributions; 


        (c)  Third, from amounts attributable to Transfer Contributions; 


        (d)  Fourth, from amounts attributable to Elective Deferrals; 


        (e)  Fifth, from amounts attributable to Qualified Non-Elective Contributions; 



        (f)    Sixth, from amounts attributable to Qualified Matching Contributions; 


        (g)  Seventh, from amounts attributable to vested matching Contributions; and 


        (h)  Eighth, from amounts attributable to vested Discretionary Contributions. 




ARTICLE VII—DISTRIBUTION REQUIREMENTS  


7.1 Joint And Survivor Annuity Requirements  


        All distributions made under the terms of this Plan must comply with the provisions of Article VIII including, if applicable, the safe harbor provisions
thereunder. 


7.2 Minimum Distribution Requirements  


        All distributions required under this Article shall be determined and made in accordance with the minimum distribution requirements of Code
Section 401(a)(9) and the regulations thereunder, including the minimum distribution incidental benefit rules found at Regulations Section 1.401(a)(9)-2. The entire interest of a
Participant must be distributed or begin to be distributed no later than the Participant's Required Beginning Date. Life expectancy and joint and last survivor life expectancy are computed by using
the expected return multiples found in Tables V and VI of Regulations Section 1.72-9. 


        In
determining required distributions under the Plan, Participants and/or their Spouse (Surviving Spouse) shall have the right to have their life expectancy recalculated annually.
Whether the Participant
only or both the Participant and Spouse's lives shall be recalculated shall be determined by the Participant. 


33





 



7.3 Limits On Distribution Periods  


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



        (a)  the life of the Participant, 


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


        (c)  a period certain not extending beyond the life expectancy of the participant, or 


        (d)  a period certain not extending beyond the joint and last survivor expectancy of the Participant and a designated
beneficiary. 




7.4 Required Distributions On Or After The Required Beginning Date  



        (a)  If a participant's benefit is to be distributed over (1) a period not extending beyond the life expectancy of the
Participant or the joint life and last survivor expectancy of the Participant and the Participant's Designated Beneficiary or (2) a period not extending beyond the life expectancy of the
Designated Beneficiary, the amount required to be distributed for each calendar year, beginning with distributions for the First Distribution Calendar Year, must at least equal the quotient obtained
by dividing the Participant's benefit by the Applicable Life Expectancy. 


        (b)  For calendar years beginning before 1989, if the Participant's Spouse is not the Designated Beneficiary, the method of
distribution selected must have assured that at least 50% of the Present
Value of the amount available for distribution was to be paid within the life expectancy of the Participant. 


        (c)  For calendar years beginning after 1988, the amount to be distributed each year, beginning with distributions for the
First Distribution Calendar Year shall not be less than the quotient obtained by dividing the Participant's benefit by the lesser of (1) the Applicable Life Expectancy or (2) if the
Participant's Spouse is not the Designated Beneficiary, the applicable divisor determined from the table set forth in Q&A-4 of Regulations Section 1.401(a)(9)-2. Distributions after the death
of the Participant shall be distributed using the Applicable Life Expectancy as the relevant divisor without regard to Regulations Section 1.401(a)(9)-2. 


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


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


        (f)    For purposes of determining the amount of the required distribution for each Distribution Calendar Year, the account
balance to be used is the account balance determined as of the last valuation preceding the Distribution Calendar Year. This balance will be increased by the amount of any contributions or forfeitures
allocated to the account balance after the valuation date in such preceding calendar year. Such balance will also be decreased by distributions made after the Valuation Date in such preceding Calendar
Year. 


        (g)  For purposes of subparagraph 7.4(f), if any portion of the minimum distribution for the First Distribution
Calendar year is made in the second Distribution Calendar Year on or before the Required Beginning Date, the amount of the minimum distribution made in the second 



34





 





Distribution Calendar Year shall be treated as if it had been made in the immediately preceding Distribution Calendar Year. 




7.5 Required Beginning Date  



        (a)  General Rule. The Required Beginning Date of a Participant is the first day of April of the calendar year following the
calendar year in which the Participant attains age 701/2 


        (b)  Transitional Rules. The Required Beginning Date of a Participant who attains age 701/2 before 1988, shall
be determined in accordance with (1) or (2) below: 



        (1)  Non-5-percent owners. The Required Beginning Date of a Participant who is not a 5-percent owner is the first day of April
of the calendar year following the calendar year in which the later of retirement or attainment of age 701/2 occurs. In the case of a Participant who is not a 5-percent owner who
attains age 701/2 during 1988 and who has not retired as of January 1, 1989, the Required Beginning Date is April 1, 1990. 


        (2)  5-percent owners. The Required Beginning Date of a Participant who is a 5-percent owner during any year beginning after
1979, is the first day of April following the later of: 



          (i)  the calendar year in which the Participant attains age 701/2, or 


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





        (c)  A Participant is treated as a 5-percent owner for purposes of this Paragraph if such Participant is a 5-percent owner as
defined in Code Section 416(i) (determined in accordance with Code Section 416 but without regard to whether the Plan is Top-Heavy) at any time during the Plan Year ending with or within
the calendar year in which such Owner attains age 661/2 or any subsequent Plan Year. 


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




7.6 Transitional Rule  



        (a)  Notwithstanding the other requirements of this Article and subject to the requirements of Article VIII, Joint and
Survivor Annuity Requirements, distribution on behalf of any Employee, including a
5-percent owner, may be made in accordance with all of the following requirements (regardless of when such distribution commences): 



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


        (2)  The distribution is in accordance with a method of distribution designated by the Employee whose interest in the Trust is
being distributed or, if the Employee is deceased, by a beneficiary of such Employee. 


        (3)  Such designation was in writing, was signed by the Employee or the beneficiary, and was made before 1984. 


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



        (5)  The method of distribution designated by the Employee or the beneficiary specifies the time at which distribution will
commence, the period over which distributions will be 




35





 






made, and in the case of any distribution upon the Employee's death, the beneficiaries of the Employee listed in order of priority. 




        (b)  A distribution upon death will not be covered by this transitional rule 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 Employee. 


        (c)  For any distribution which commences before 1984, but continues after 1983, the Employee 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 subparagraphs (a)(1) and (5) above. 



        (d)  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 Trust 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 of the Tax Equity and Fiscal Responsibility Act of 1982. For
calendar years beginning after 1988, such distributions must meet the minimum distribution incidental benefit requirements in section 1.401(a)(9)-2 of the Income Tax Regulations. 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 does 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). In the case in which an amount is transferred or rolled over from one plan to another plan, the rules in Q&A J-2 and Q&A J-3 of the
regulations shall apply. 




7.7 Designation Of Beneficiary For Death Benefit  



        Each Participant shall file a written designation of beneficiary with the Employer upon qualifying for participation in this Plan. Such designation shall remain
in force until revoked by the Participant by filing a new beneficiary form with the Employer. The Participant may elect to have a portion of his or her account balance invested in an insurance
contract. If an insurance contract is purchased under the Plan, the Trustee must be named as Beneficiary under the terms of the contract. However, the Participant shall designate a Beneficiary to
receive the proceeds of the contract after settlement is received by the Trustee. Under a profit-sharing plan satisfying the requirements of paragraph 8.7, the Designated Beneficiary shall be
the Participant's Surviving Spouse, if any, unless such Spouse properly consents otherwise. 


7.8 Nonexistence Of Beneficiary  


        Any portion of the amount payable hereunder which is not disposed of because of the Participant's or former Participant's failure to designate a beneficiary, or
because all of the Designated Beneficiaries predeceased the Participant, shall be paid to his or her Spouse. If the Participant had no Spouse at the time of death, payment shall be made to the
personal representative of his or her estate in a lump sum. 


7.9 Distribution Beginning Before Death  



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


36





 



7.10 Distribution Beginning After Death  


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



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


        (b)  If the Designated Beneficiary is the Participant's surviving Spouse, the date distributions are required to begin in
accordance with (a) above shall not be earlier than the later of (1) December 31 of the calendar year immediately following the calendar year in which the participant died or
(2) December 31 of the calendar year in which the Participant would have attained age 701/2. 




        If
the Participant has not made an election pursuant to this paragraph 7.10 by the time of his or her death, the Participant's Designated Beneficiary must elect the method of
distribution no later than the earlier of (1) December 31 of the calendar year in which distributions would be required to begin under this section, or (2) December 31 of
the calendar year which contains the fifth anniversary of the date of death of the participant. If the Participant has no Designated Beneficiary, or if the Designated Beneficiary does not elect a
method of distribution, then distribution of the Participant's entire interest must be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. 


        For
purposes of this paragraph if the Surviving Spouse dies after the Participant, but before payments to such Spouse begin, the provisions of this paragraph with the exception of
paragraph (b) therein, shall be applied as if the Surviving Spouse were the Participant. For the purposes of this paragraph and paragraph 7.9, distribution of a Participant's interest is
considered to begin on the Participant's Required Beginning Date (or, if the preceding sentence is applicable, the date distribution is required to begin to the Surviving Spouse). If distribution in
the form of an annuity described in paragraph 7.4(e) irrevocably commences to the Participant before the Required Beginning Date, the date distribution is considered to begin is the date
distribution actually commences. 


        For
purposes of paragraph 7.9 and this paragraph, if an amount is payable to either a minor or an individual who has been declared incompetent, the benefits shall be paid to the
legally appointed guardian for the benefit of said minor or incompetent individual, unless the court which appointed the guardian has ordered otherwise. 


7.11 Distribution Of Excess Elective Deferrals  



        (a)  Notwithstanding any other provision of the Plan, Excess Elective Deferrals plus any income and minus any loss allocable
thereto, shall be distributed no later than April 15, 1988, and each April 15 thereafter, to Participants to whose accounts Excess Elective Deferrals were allocated for the preceding
taxable year, and who claim Excess Elective Deferrals for such taxable year. Excess Elective Deferrals shall be treated as Annual Additions under the plan, unless such amounts are distributed no later
than the first April 15th following the close of the Participant's taxable year. A Participant is deemed to notify the Plan Administrator of any Excess Elective Deferrals that arise by taking
into account only those Elective Deferrals made to this Plan and any other plans of this Employer. 



37







  



        (b)  Furthermore, a Participant who participates in another plan allowing Elective Deferrals may assign to this Plan any
Excess Elective Deferrals made during a taxable year of the Participant, by notifying the Plan Administrator of the amount of the Excess Elective Deferrals to be assigned. The Participant's claim
shall be in writing; shall be submitted to the Plan Administrator not later than March 1 of each year; shall specify the amount of the Participant's Excess Elective Deferrals for the preceding
taxable year; and shall be accompanied by the Participant's written statement that if such amounts are not distributed, such Excess Elective Deferrals, when added to amounts deferred under other plans
or arrangements described in Code Sections 401(k), 408(k)[Simplified Employee Pensions], or 403(b)[annuity programs for public schools and charitable
organizations] will exceed the $7,000 limit as adjusted under Code Section 415(d) imposed on the Participant by Code Section 402(g) for the year in which the deferral occurred. 


        (c)  Excess Elective Deferrals shall be adjusted for any income or loss up to the end of the taxable year, during which such
excess was deferred. Income or loss will be calculated under the method used to calculate investment earnings and losses elsewhere in the Plan or any other reasonable method. Whichever method is
selected shall be used for all Participants and for all corrective distributions made from the Plan for the Plan Year. 


        (d)  If the Participant receives a return of his or her Elective Deferrals, the amount of such contributions which are
returned must be brought into the Employee's taxable income. 




7.12 Distributions of Excess Contributions  



        (a)  Notwithstanding any other provision of this Plan, Excess Contributions, plus any income and minus any loss allocable
thereto, shall be distributed no later than the last day of each Plan Year to Participants to whose accounts such Excess Contributions were allocated for the preceding Plan Year. If such excess
amounts are distributed more than 21/2 months after the last day of the Plan Year in which such excess amounts arose, a ten (10) percent excise tax will be imposed on the Employer
maintaining the Plan with respect to such amounts. Such distributions shall be made to Highly Compensated Employees on the basis of the respective portions of the Excess Contributions attributable to
each of such Employees. Excess Contributions of Participants who are subject to the Family Member aggregation rules of Code Section 414(q)(6) shall be allocated among the Family Members in
proportion to the Elective Deferrals (and amounts treated as Elective Deferrals) of each Family Member that is combined to determine the Average Deferral Percentage. 


        (b)  Excess Contributions (including the amounts recharacterized) shall be treated as Annual Additions under the Plan. 


        (c)  Excess Contributions shall be adjusted for any income or loss up to the end of the Plan Year. Income or loss will be
calculated under the method used to calculate investment earnings and losses elsewhere in the Plan. 


        (d)  Excess Contributions shall be distributed from the Participant's Elective Deferral account and Qualified Matching
Contribution account (if applicable) in proportion to the Participant's Elective Deferrals and Qualified Matching Contributions (to the extent used in the ADP test) for the Plan Year. Excess
Contributions shall be distributed from the Participant's Qualified Non-Elective Contribution account only to the extent that such Excess Contributions exceed the balance in the Participant's Elective
Deferral account and Qualified Matching Contribution account. 



38





 





7.13 Distribution Of Excess Aggregate Contributions  



        (a)  Notwithstanding any other provision of this Plan, Excess Aggregate Contributions, plus any income and minus any loss
allocable thereto, shall be forfeited, if forfeitable, or if not forfeitable, distributed no later than the last day of each Plan Year to Participants to whose accounts such Excess Aggregate
Contributions were allocated for the preceding Plan Year. Excess Aggregate Contributions shall be allocated to Participants who are subject to the Family Member aggregation rules of Code Section
414(q)(6) in the manner prescribed by the regulations. 


        If
such Excess Aggregate Contributions are distributed more than 21/2 months after the last day of the Plan Year in which such excess amounts arose, a ten (10) percent
excise tax will be imposed on the Employer maintaining the Plan with respect to those amounts. Excess Aggregate Contributions shall be treated as Annual Additions under the plan. 


        (b)  Excess Aggregate Contributions shall be adjusted for any income or loss up to the end of the Plan Year. The income or
loss allocable to Excess Aggregate Contributions is the sum of income or loss for
the Plan Year allocable to the Participant's Voluntary Contribution account, Matching Contribution account (if any, and if all amounts therein are not used in the ADP test) and, if applicable,
Qualified Non-Elective Contribution account and Elective Deferral account. Income or loss will be calculated under the method used to calculate investment earnings and losses elsewhere in the Plan. 



        (c)  Forfeitures of Excess Aggregate Contributions may either be reallocated to the accounts of non-Highly Compensated
Employees or applied to reduce Employer contributions, as elected by the employer in the Adoption Agreement. 


        (d)  Excess Aggregate Contributions shall be forfeited if such amount is not vested. If vested, such excess shall be
distributed in the following order: 



          (i)  First, from the Participant's Voluntary Contribution account; 


        (ii)  Second, from the Participant's Matching Contribution account; and 


        (iii)  Third, from the Participant's Qualified Matching Contribution account (if applicable). 





ARTICLE VIII—JOINT AND SURVIVOR ANNUITY REQUIREMENTS  



8.1 Applicability Of Provisions  


        The provisions of this Article shall apply to any Participant who is credited with at least one Hour of Service with the Employer on or after August 23,
1984 and such other Participants as provided in paragraph 8.8. 


8.2 Payment Of Qualified Joint And Survivor Annuity  


        Unless an optional form of benefit is selected pursuant to a Qualified Election within the 90-day period ending on the Annuity Starting Date, a married
Participant's Vested Account Balance will be paid in the form of a Qualified Joint and Survivor Annuity and an unmarried Participant's Vested Account
Balance will be paid in the form of a life annuity. The Participant may elect to have such annuity distributed upon attainment of the Early Retirement Age under the Plan. 


8.3 Payment Of Qualified Pre-Retirement Survivor Annuity  


        Unless an optional form of benefit has been selected within the Election Period pursuant to a Qualified Election, if a Participant dies before benefits have
commenced then the Participant's vested account balance shall be paid in the form of an annuity for the life of the Surviving Spouse. The 


39





 




Surviving Spouse may elect to have such annuity distributed within a reasonable period after the Participant's death. 


        A
Participant who does not meet the age 35 requirement set forth in the Election Period as of the end of any current Plan Year may make a special qualified election to waive the
qualified Pre-retirement Survivor Annuity for the period beginning on the date of such election and ending on the first day of the Plan Year in which the Participant will attain age 35. Such election
shall not be valid unless the Participant receives a written explanation of the Qualified Pre-retirement Survivor Annuity in such terms as are comparable to the explanation required under
paragraph 8.5. Qualified Pre-retirement Survivor Annuity coverage will be automatically reinstated as of the first day of the Plan Year in which the Participant attains age 35. Any new waiver
on or after such date shall be subject to the full requirements of this Article. 


8.4 Qualified Election  


        A Qualified Election is an election to either waive a Qualified Joint and Survivor Annuity or a qualified pre-retirement survivor annuity. Any such election shall
not be effective unless: 



        (a)  the Participant's Spouse consents in writing to the election; 


        (b)  the election designates a specific beneficiary, including any class of beneficiaries or any contingent beneficiaries,
which may not be changed without spousal consent (or the Spouse expressly permits designations by the Participant without any further spousal consent); 


        (c)  the Spouse's consent acknowledges the effect of the election; and 



        (d)  the Spouse's consent is witnessed by a Plan representative or notary public. 




        Additionally,
a Participant's waiver of the Qualified Joint and Survivor Annuity shall not be effective unless the election designates a form of benefit payment which may not be changed
without spousal consent (or the Spouse expressly permits designations by the Participant without any further spousal consent). If it is established to the satisfaction of the Plan Administrator that
there is no Spouse or that the Spouse cannot be located, a waiver will be deemed a Qualified Election. Any consent by a Spouse obtained under this provision (or establishment that the consent of a
Spouse may not be obtained) shall be effective only with respect to such Spouse. A consent that permits designations by the Participant without any requirement of further consent by such Spouse must
acknowledge that the Spouse has the right to limit consent to a specific beneficiary, and a specific form of benefit where applicable, and that the Spouse voluntarily elects to relinquish either or
both of such rights. A revocation of a prior waiver may be made by a Participant without the consent of the Spouse at any time before the commencement of benefits. The number of revocations shall not
be limited. No consent obtained under this provision shall be valid unless the Participant has received notice as provided in paragraphs 8.5 and 8.6 below. 


8.5 Notice Requirements For Qualified Joint And Survivor Annuity  



        In the case of a Qualified Joint and Survivor Annuity, the Plan Administrator shall, no less than 30 days and no more than 90 days prior to the Annuity Starting
date, provide each Participant a written explanation of: 



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


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


        (c)  the rights of a Participant's Spouse; and 



40





 




        (d)  the right to make, and the effect of, a revocation of a previous election to waive the Qualified Joint and Survivor
Annuity. 




8.6 Notice Requirements For Qualified Pre-Retirement Survivor Annuity  



        In the case of a qualified pre-retirement survivor annuity as described in paragraph 8.3, the Plan Administrator shall provide each Participant within the
applicable period for such Participant a written explanation of the qualified pre-retirement survivor annuity in such terms and in such manner as would be comparable to the explanation provided for
meeting the requirements of paragraph 8.5 applicable to a Qualified Joint and Survivor Annuity. The applicable period for a Participant is whichever of the following periods ends last: 



        (a)  the period beginning with the first day of the Plan Year in which the Participant attains age 32 and ending with the
close of the Plan Year preceding the Plan Year in which the Participant attains age 35; 


        (b)  a reasonable period ending after the individual becomes a Participant; 


        (c)  a reasonable period ending after this Article first applies to the Participant. Notwithstanding the foregoing, notice
must be provided within a reasonable period ending after separation from Service in the case of a Participant who separates from Service before attaining age 35. 




        For
purposes of applying the preceding paragraph, a reasonable period ending after the events described in (b) and (c) is the end of the two-year period beginning one year prior to the
date the applicable event occurs, and ending one year after that date. In the case of a Participant who separates from Service before the Plan Year in which age 35 is attained, notice shall be
provided within the two-year period beginning one year prior to separation and ending one year after separation. If such a Participant subsequently returns to employment with the Employer, the
applicable period for such Participant shall be re-determined. 


8.7 Special Safe-Harbor Exception For Certain Profit-Sharing Plans  



        (a)  This paragraph shall apply to a Participant in a profit-sharing plan, and to any distribution, made on or after the first
day of the first plan year beginning after 1988, from or under a separate account attributable solely to Qualified Voluntary contributions, as maintained on behalf of a Participant in a money purchase
pension plan, (including a target benefit plan) if the following conditions are satisfied: 



        (1)  the Participant does not or cannot elect payments in the form of a life annuity; and 


        (2)  on the death of a Participant, the Participant's Vested Account Balance will be paid to the Participant's Surviving
Spouse, but if there is no Surviving Spouse, or if the Surviving Spouse has consented in a manner conforming to a Qualified Election, then to the Participant's Designated Beneficiary. 





        The
Surviving Spouse may elect to have distribution of the Vested Account Balance commence within the 90-day period following the date of the Participant's death. The account balance
shall be adjusted for gains or losses occurring after the Participant's death in accordance with the provisions of the Plan governing the adjustment of account balances for other types of
distributions. These safe-harbor rules shall not be operative with respect to a Participant in a profit-sharing plan if that plan is a direct or indirect transferee of a Defined Benefit Plan, money
purchase plan, a target benefit plan, stock bonus plan, or profit-sharing plan which is subject to the survivor annuity requirements of Code Section 401(a)(11) and Code Section 417, and would
therefore have a Qualified Joint and Survivor Annuity as its normal form of benefit. 


41







  



        (b)  The Participant may waive the spousal death benefit described in this paragraph at any time provided that no such waiver
shall be effective unless it satisfied the conditions (described in paragraph 8.4) that would apply to the Participant's waiver of the Qualified Pre-Retirement Survivor Annuity. 



        (c)  If this paragraph 8.7 is operative, then all other provisions of this Article other than paragraph 8.8 are inoperative. 




8.8 Transitional Joint And Survivor Annuity Rules  


        Special transition rules apply to Participants who were not receiving benefits on August 23, 1984. 



        (a)  Any living Participant not receiving benefits on August 23, 1984, who would otherwise not receive the benefits prescribed
by the previous paragraphs of this Article, must be given the opportunity to elect to have the prior paragraphs of this Article apply if such Participant is credited with at least one Hour of Service
under this Plan or a predecessor Plan in a Plan Year beginning on or after January 1, 1976 and such Participant had at least 10 Years of Service for vesting purposes when he or she separated from
Service. 


        (b)  Any living Participant not receiving benefits on August 23, 1984, who was credited with at least one Hour of Service
under this Plan or a predecessor Plan on or after September 2, 1974, and who is not otherwise credited with any Service in a Plan Year beginning on or after January 1, 1976, must be given the
opportunity to have his or her benefits paid in accordance with paragraph 8.9. 


        (c)  The respective opportunities to elect [as described in (a) and (b) above] must be afforded to the
appropriate Participants during the period commencing on August 23, 1984 and ending on the date benefits would otherwise commence to said Participants. 




8.9 Automatic Joint And Survivor Annuity And Early Survivor Annuity  


        Any Participant who has elected pursuant to paragraph 8.8(b) and any Participant who does not elect under paragraph 8.8(a) or who meets the requirements of
paragraph 8.8(a), except that such Participant does not have at least 10 years of vesting Service when he or she separates from Service, shall have his or her benefits distributed in accordance with
all of the following requirements if benefits would have been payable in the form of a life annuity. 



        (a)  Automatic Joint and Survivor Annuity. If benefits in the form of a life annuity become payable to a married Participant
who: 



        (1)  begins to receive payments under the Plan on or after Normal Retirement Age, or 



        (2)  dies on or after Normal Retirement Age while still working for the Employer, or 


        (3)  begins to receive payments on or after the Qualified Early Retirement Age, or 


        (4)  separates from Service on or after attaining Normal Retirement (or the Qualified Early Retirement Age) and after
satisfying the eligibility requirements for the payment of benefits under the Plan and thereafter dies before beginning to receive such benefits, then such benefits will be received under this Plan in
the form of a Qualified Joint and Survivor Annuity, unless the Participant has elected otherwise during the Election Period. The Election Period must begin at least 6 months before the Participant
attains Qualified Early Retirement Age and end not more than 90 days before the commencement of benefits. Any election will be in writing and may be changed by the Participant at any time. 




        (b)  Election of Early Survivor Annuity. A Participant who is employed after attaining the Qualified Early Retirement Age will
be given the opportunity to elect, during the Election Period, 



42





 


to have a survivor annuity payable on death. If the Participant elects the survivor annuity, payments under such annuity must not be less than the payments which would have been made to the Spouse
under the Qualified Joint and Survivor Annuity if the Participant had retired on the day before his or her death. Any election under this provision will be in writing and may be changed by the
Participant at any time. The Election Period begins on the later of: 



        (1)  the 90th day before the Participant attains the Qualified Early Retirement Age, or 


        (2)  the date on which participation begins, and ends on the date the Participant terminates employment. 





8.10 Annuity Contracts  



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


ARTICLE IX—VESTING  


9.1 Employee Contributions  


        A Participant shall always have a 100% vested and nonforfeitable interest in his or her Elective Deferrals, Voluntary Contributions, Qualified Voluntary
Contributions, Rollover Contributions, and Transfer Contributions plus the earnings thereon. No forfeiture of Employer related contributions (including any minimum contributions made under paragraph
14.2) will occur solely as a result of an Employee's withdrawal of any Employee contributions. 


9.2 Employer Contributions  


        A Participant shall acquire a vested and nonforfeitable interest in his or her account attributable to Employer contributions in accordance with the table
selected in the Adoption Agreement, provided that if a Participant is not already fully vested, he or she shall become so upon attaining Normal Retirement Age, Early Retirement Age, on death prior to
normal retirement, on retirement due to Disability, or on termination of the Plan. If no table is selected in the Adoption Agreement, an Employee shall acquire a vested and nonforfeitable interest in
his or her account attributable to Employer contributions in accordance with the following percentages: 20% after 2 Years Of Service, 20% additional for each of the following Years Of Service,
reaching 100% after 6 Years Of Service with the Employer. 


9.3 Computation Period  


        The computation period for purposes of determining Years of Service and Breaks in Service for purposes of computing a Participant's nonforfeitable right to his or
her account balance derived from Employer contributions shall be the Plan Year. In the event a former Participant with no vested interest in his or her Employer contribution account requalifies for
participation in the Plan after incurring a Break in Service, such Participant shall be credited for vesting with all pre-break and post-break Service. 


9.4 Requalification Prior To Five Consecutive One-Year Breaks In Service  


        The account balance of such Participant shall consist of any undistributed amount in his or her account as of the date of re-employment plus any future
contributions added to such account plus the investment earnings on the account. The vested account balance of such Participant shall be determined by multiplying the Participant's account balance
(adjusted to include any distribution or 


43





 




redeposit made under paragraph 6.3) by such Participant's vested percentage. All Service of the Participant, both prior to and following the break, shall be counted when computing the Participant's
vested percentage. 


9.5 Requalification After Five Consecutive One-Year Breaks In Service  



        If such Participant is not fully vested upon re-employment, a new account shall be established for such Participant to separate his or her deferred vested and
nonforfeitable account, if any, from the account to which new allocations will be made. The Participant's deferred account to the extent remaining shall be fully vested and shall continue to share in
earnings and losses of the Fund. When computing the Participant's vested portion of the new account, all pre-break and post-break Service shall be counted. However, notwithstanding this provision, no
such former Participant who has had five consecutive one-year Breaks in Service shall acquire a larger vested and nonforfeitable interest in his or her prior account balance as a result of
requalification hereunder. 


9.6 Calculating Vested Interest  


        A Participant's vested and nonforfeitable interest shall be calculated by multiplying the fair market value of his or her account attributable to Employer
contributions on the Valuation Date preceding distribution by the decimal equivalent of the vested percentage as of his or her termination date. The amount attributable to Employer contributions for
purposes of the calculation includes amounts previously paid out pursuant to paragraph 6.3 and not repaid if the non-vested portion has not been
forfeited. The Participant's vested and nonforfeitable interest, once calculated above, shall be reduced to reflect those amounts previously paid out to the Participant and not repaid by the
Participant. The Participant's vested and nonforfeitable interest so determined shall continue to share in the investment earnings and any increase or decrease in the fair market value of the Fund up
to the Valuation Date preceding or coinciding with payment. 


9.7 Forfeitures  


        Any balance in the account of a Participant who has separated from Service to which he or she is not entitled under the foregoing provisions, shall be forfeited
and applied as provided in the Adoption Agreement. A forfeiture may only occur if the Participant has received a distribution from the Plan or if the Participant has incurred five consecutive 1-year
Breaks in Service. Furthermore, a Highly Compensated Employee's Matching Contributions may be forfeited, even if vested, if the contributions to which they relate are Excess Deferrals, Excess
Contributions or Excess Aggregate Contributions. 


9.8 Amendment Of Vesting Schedule  


        No amendment to the Plan shall have the effect of decreasing a Participant's vested interest determined without regard to such amendment as of the later of the
date such amendment is adopted or the date it becomes effective. Further, if the vesting schedule of the Plan is amended, or the Plan is amended in any way that directly or indirectly affects the
computation of any Participant's nonforfeitable percentage or if the Plan is deemed amended by an automatic change to or from a Top-Heavy vesting schedule, each Participant with at least three Years
of Service with the Employer may elect, within a reasonable period after the adoption of the amendment, to have his or her nonforfeitable percentage computed under the Plan without regard to such
amendment. For Participants who do not have at least one Hour of Service in any Plan Year beginning after 1988, the preceding sentence shall be applied by substituting "Five Years of Service" for
"Three Years of Service" where such language appears. The period during which the election may be made shall commence with the date the amendment is adopted and shall end on the later of: 



        (a)  60 days after the amendment is adopted; 



44





 

        (b)  60 days after the amendment becomes effective; or 


        (c)  60 days after the Participant is issued written notice of the amendment by the Employer or the Trustee. If the Trustee is
asked to so notify, the Fund will be charged for the costs thereof. 




        No
amendment to the Plan shall be effective to the extent that it has the effect of decreasing a Participant's accrued benefit. Notwithstanding the preceding sentence, a Participant's
account balance may be reduced to the extent permitted under section 412(c)(8) of the Code (relating to financial hardships). For purposes of this paragraph, a Plan amendment which has the effect of
decreasing a Participant's account balance or eliminating an optional form of benefit, with respect to benefits attributable to service before the amendment, shall be treated as reducing an accrued
benefit. 


9.9 Service With Controlled Groups  


        All Years of Service with other members of a controlled group of corporations [as defined in Code Section 414(b)], trades or businesses
under common control [as defined in Code Section 414(c)], or members of an affiliated service group [as defined in Code Section 414(m)] shall be
considered for purposes of determining a Participant's nonforfeitable percentage. 


ARTICLE X—LIMITATIONS ON ALLOCATIONS AND ANTIDISCRIMINATION TESTING  


10.1 Participation In This Plan Only  


        If the Participant does not participate in and has never participated in another qualified plan, a Welfare Benefit Fund (as defined in paragraph 1.89) or an
individual medical account, as defined in Code Section 415(l)(2), or a Simplified Employee Pension Plan, as defined in Code Section 408(k), maintained by the adopting Employer, which provides an
Annual Addition as defined in paragraph 1.4, the amount of Annual Additions which may be credited to the Participant's account for any Limitation Year will not exceed the lesser of the Maximum
Permissible Amount or any other limitation contained in this Plan. If the Employer contribution that would otherwise be contributed or allocated to the Participant's account would cause the Annual
Additions for the Limitation Year to exceed the Maximum Permissible Amount, the amount contributed or allocated will be reduced so that the Annual Additions for the Limitation Year will equal the
Maximum Permissible Amount. Prior to determining the Participant's actual Compensation for the Limitation Year, the Employer may determine the Maximum Permissible Amount for a Participant on the basis
of a reasonable estimate of the Participant's 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 Compensation for the Limitation Year. 


10.2 Disposition Of Excess Annual Additions  


        If, pursuant to paragraph 10.1 or as a result of the allocation of forfeitures, there is an Excess Amount, the excess will be disposed of under one of the
following methods as determined in the Adoption Agreement. If no election is made in the Adoption Agreement then method "(a)" below shall apply. 



        (a)  Suspense Account Method 



        (1)  Any Elective Deferrals and nondeductible Employee Voluntary Contributions, to the extent they would reduce the Excess
Amount, will be returned to the Participant; 


        (2)  If after the application of paragraph (1) an Excess Amount still exists, and the Participant is covered by the Plan at
the end of the Limitation Year, the Excess Amount in 




45





 






the Participant's account will be used to reduce Employer contributions (including any allocation of forfeitures) for such Participant in the next Limitation Year, and each succeeding Limitation Year
if necessary; 


        (3)  If after the application of paragraph (1) an Excess Amount still exists, and the Participant is not covered by the Plan
at the end of the Limitation Year, the Excess Amount will be held unallocated in a suspense account. The suspense account will be applied to reduce future Employer contributions (including allocation
of any forfeitures) for all remaining Participants in the next Limitation Year, and each succeeding Limitation Year if necessary; 


        (4)  If a suspense account is in existence at any time during the Limitation Year pursuant to this paragraph, it will not
participate in the allocation of investment gains and losses. If a suspense account is in existence at any time during a particular Limitation Year, all amounts in the suspense account must be
allocated and reallocated to Participants' accounts before any Employer contributions or any Employee Contributions may be made to the Plan for that Limitation Year. Excess amounts may not be
distributed to Participants or former Participants. 




        (b)  Spillover Method 



        (1)  Any Elective Deferrals and nondeductible Employee Voluntary Contributions, to the extent they would reduce the Excess
Amount, will be returned to the Participant. 


        (2)  Any Excess Amount which would be allocated to the account of an individual Participant under the Plan's allocation
formula will be reallocated to other Participants in the same manner as other Employer contributions. No such reallocation shall be made to the extent that it will result in an Excess Amount being
created in such Participant's own account. 


        (3)  To the extent that amounts cannot be reallocated under (1) above, the suspense account provisions of (a) above will
apply. 





10.3 Participation In This Plan And Another Qualified Master and Prototype Defined Contribution Plan, Welfare Benefit Fund, Individual Medical Account
Or Simplified Employee Pension Plan Maintained By The Employer  


        The Annual Additions which may be credited to a Participant's account under this Plan for any Limitation Year will not exceed the Maximum Permissible Amount
reduced by the Annual Additions credited to a Participant's account under the other qualified Master or Prototype Defined Contribution Plans, Welfare Benefit Funds, and individual medical accounts as
defined in Code Section 415(l)(2), or Simplified Employee Pension Plan, maintained by the Employer, which provide an Annual Addition as defined in paragraph 1.4 for the same Limitation Year. If the
Annual Additions, with respect to the Participant under other Defined Contribution Plans and Welfare Benefit Funds maintained by the Employer, are less than the Maximum Permissible Amount and the
Employer contribution that would otherwise be contributed or allocated to the Participant's account under this Plan would cause the Annual Additions for the Limitation Year to exceed this limitation,
the amount contributed or allocated will be reduced so that the Annual Additions under all such plans and funds for the Limitation Year will equal the Maximum Permissible Amount. If the Annual
Additions with respect to the Participant under such other Defined Contribution Plans and Welfare Benefit Funds in the aggregate are equal to or greater than the Maximum Permissible Amount, no amount
will be contributed or allocated to the Participant's account under this Plan for the Limitation Year. Prior to determining the Participant's actual Compensation for the Limitation Year, the Employer
may determine the Maximum Permissible Amount for a Participant in the manner described in paragraph 10.1. As soon as 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 Compensation for the Limitation Year. 


46







   10.4 Disposition Of Excess Annual Additions Under Two Plans  


        If, pursuant to paragraph 10.3 or as a result of forfeitures, a Participant's Annual Additions under this Plan and such other plans would result in an Excess
Amount for a Limitation Year, the Excess Amount will be deemed to consist of the Annual Additions last allocated except that Annual Additions attributable to a Simplified Employee Pension Plan will be
deemed to have been allocated first, followed by Annual Additions attributable to a Welfare Benefit Fund or Individual Medical Account as defined in Code Section 415(l)(2) regardless of the actual
allocation date. If an Excess Amount was allocated to a Participant on an allocation date of this Plan which coincides with an allocation date of another plan, the Excess Amount attributed to this
Plan will be the product of: 



        (a)  the total Excess Amount allocated as of such date, times 


        (b)  the ratio of: 



        (1)  the Annual Additions allocated to the Participant for the Limitation Year as of such date under the Plan, to 


        (2)  the total Annual Additions allocated to the Participant for the Limitation Year as of such date under this and all the
other qualified Master or Prototype Defined Contribution Plans. 





        Any
Excess Amount attributed to this Plan will be disposed of in the manner described in paragraph 10.2. 


10.5 Participation In This Plan And Another Defined Contribution Plan Which Is Not A Qualified Master Or Prototype Plan  


        If the Participant is covered under another qualified Defined Contribution Plan maintained by the Employer which is not a qualified Master or Prototype Plan,
Annual Additions which may be credited to the Participant's account under this Plan for any Limitation Year will be limited in accordance with paragraphs 10.3 and 10.4 as though the other plan were a
Master or Prototype Plan, unless the Employer provides other limitations in the Adoption Agreement. 


10.6 Participation In This Plan And A Defined Benefit Plan  


        If the Employer maintains, or at any time maintained, a qualified Defined Benefit Plan covering any Participant in this Plan, the sum of the Participant's Defined
Benefit Plan Fraction and Defined Contribution Plan Fraction will not exceed 1.0 in any Limitation Year. For any Plan Year during which the Plan is Top-Heavy, the Defined Benefit and Defined
Contribution Plan Fractions shall be calculated in accordance with Code Section 416(h). The Annual Additions which may be credited to the Participant's account under this Plan for any
Limitation Year will be limited in accordance with the provisions set forth in the Adoption Agreement. 


10.7 Average Deferral Percentage (ADP) Test  


        With respect to any Plan Year, the Average Deferral Percentage for Participants who are Highly Compensated Employees and the Average Deferral Percentage for
Participants who are non-Highly Compensated Employees must satisfy one of the following tests: 



        (a)  Basic Test—The Average Deferral Percentage for Participants who are Highly Compensated Employees for the Plan
Year is not more than 1.25 times the Average Deferral Percentage for Participants who are non-Highly Compensated Employees for the same Plan Year, or 



47





 

        (b)  Alternative Test—The Average Deferral Percentage for Participants who are Highly Compensated Employees for
the Plan Year does not exceed the Average Deferral Percentage for Participants who are non-Highly Compensated Employees for the same Plan Year by more than 2 percentage points provided that the
Average Deferral Percentage for Participants who are Highly Compensated Employees is not more than 2.0 times the Average Deferral Percentage for Participants who are non-Highly Compensated Employees. 




10.8 Special Rules Relating To Application Of ADP Test  



        (a)  The Actual Deferral Percentage for any Participant who is a Highly Compensated Employee for the Plan Year and who is
eligible to have Elective Deferrals (and Qualified Non-Elective Contributions or Qualified Matching Contributions, or both, if treated as Elective Deferrals for purposes of the ADP test) allocated to
his or her accounts under two or more arrangements described in Code Section 401(k), that are maintained by the Employer, shall be determined as if such Elective Deferrals (and, if applicable, such
Qualified Non-Elective Contributions or Qualified Matching Contributions, or both) were made under a single arrangement. If a Highly Compensated Employee participates in two or more cash or deferred
arrangements that have different Plan Years, all cash or deferred arrangements ending with or within the same calendar year shall be treated as a single arrangement. 



        (b)  In the event that this Plan satisfies the requirements of Code Sections 401(k), 401(a)(4), or 410(b), only if aggregated
with one or more other plans, or if one or more other plans satisfy the requirements of such Code Sections only if aggregated with this Plan, then this Section shall be applied by determining the
Actual Deferral Percentage of Employees as if all such plans were a single plan. For Plan Years beginning after 1989, plans may be aggregated in order to satisfy Code Section 401(k) only if they have
the same Plan Year. 


        (c)  For purposes of determining the Actual Deferral Percentage of a Participant who is a 5-percent owner or one of the ten
most highly-paid Highly Compensated Employees, the Elective Deferrals (and Qualified Non-Elective Contributions or Qualified Matching Contributions, or both, if treated as Elective Deferrals for
purposes of the ADP test) and Compensation of such Participant shall include the Elective Deferrals (and, if applicable, Qualified Non-Elective Contributions and Qualified Matching Contributions, or
both) for the Plan Year of Family Members as defined in paragraph 1.36 of this Plan. Family Members, with respect to such Highly Compensated Employees, shall be disregarded as separate Employees in
determining the ADP both for Participants who are non-Highly Compensated Employees and for Participants who are Highly Compensated Employees. In the event of repeal of the family aggregation rules
under Code Section 414(q)(6), all applications of such rules under this Plan will cease as of the effective date of such repeal. 



        (d)  For purposes of determining the ADP test, Elective Deferrals, Qualified Non-Elective Contributions and Qualified Matching
Contributions must be made before the last day of the twelve-month period immediately following the Plan Year to which contributions relate. 


        (e)  The Employer shall maintain records sufficient to demonstrate satisfaction of the ADP test and the amount of Qualified
Non-Elective Contributions or Qualified Matching Contributions, or both, used in such test. 



        (f)    The determination and treatment of the Actual Deferral Percentage amounts of any Participant shall satisfy such other
requirements as may be prescribed by the Secretary of the Treasury. 



48





 





10.9 Average Contribution Percentage (ACP) Test  



        If the Employer makes Matching Contributions or if the Plan allows Employees to make Voluntary Contributions the Plan must meet additional nondiscrimination
requirements provided under Code Section 401(m). If Employee Contributions (including any Elective Deferrals recharacterized as Voluntary Contributions) are made pursuant to this Plan, then in
addition to the ADP test referenced in paragraph 10.7, the Average Contribution Percentage test is also applicable. The Average Contribution Percentage for Participants who are Highly Compensated
Employees for each Plan Year and the Average Contribution Percentage for Participants who are Non-Highly Compensated Employees for the same Plan Year must satisfy one of the following tests: 



        (a)  Basic Test—The Average Contribution Percentage for Participants who are Highly Compensated Employees for the
Plan Year shall not exceed the Average Contribution Percentage for Participants who are non-Highly Compensated Employees for the same Plan Year multiplied by 1.25; or 


        (b)  Alternative Test—The ACP for Participants who are Highly Compensated Employees for the Plan Year shall not
exceed the Average Contribution Percentage for Participants who are non-Highly Compensated Employees for the same Plan Year multiplied by two (2), provided that the Average Contribution Percentage for
Participants who are Highly Compensated Employees does not exceed the Average Contribution Percentage for Participants who are non-Highly Compensated Employees by more than two (2) percentage points. 




10.10 Special Rules Relating To Application Of ACP Test  



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



        (b)  For purposes of this Article, the Contribution Percentage for any Participant who is a Highly Compensated Employee and
who is eligible to have Contribution Percentage Amounts allocated to his or her account under two or more plans described in Code Section 401(a), or arrangements described in Code Section 401(k) that
are maintained by the Employer, shall be determined as if the total of such Contribution Percentage Amounts was made under each Plan. If a Highly Compensated Employee participates in two or more cash
or deferred arrangements that have different plan years, all cash or deferred arrangements ending with or within the same calendar year shall be treated as a single arrangement. 



        (c)  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 of 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
Contribution Percentage of Employees as if all such plans were a single plan. For plan years beginning after 1989, plans may be aggregated in order to satisfy Code Section 401(m) only if the
aggregated plans have the same Plan Year. 



49





 




        (d)  For purposes of determining the Contribution percentage of a Participant who is a five-percent owner or one of the ten
most highly-paid, Highly Compensated Employees, the Contribution Percentage Amounts and Compensation of such Participant shall include the Contribution Percentage Amounts and Compensation for the Plan
Year of Family Members as defined in Paragraph 1.36 of this Plan. Family Members, with respect to Highly Compensated Employees, shall be disregarded as separate Employees in determining the
Contribution Percentage both for Participants who are non-Highly Compensated Employees and for Participants who are Highly Compensated Employees. In the event of repeal of the family aggregation rules
under Code Section 414(q)(6), all applications of such rules under this Plan will cease as of the effective date of such repeal. 


        (e)  For purposes of determining the Contribution Percentage test, Employee Contributions are considered to have been made in
the Plan Year in which contributed to the trust. Matching Contributions and Qualified Non-Elective Contributions will be considered made for a Plan Year if made no later than the end of the
twelve-month period beginning on the day after the close of the Plan Year. 


        (f)    The Employer shall maintain records sufficient to demonstrate satisfaction of the ACP test and the amount of Qualified
Non-Elective Contributions or Qualified Matching Contributions, or both, used in such test. 


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


        (h)  Qualified Matching Contributions and Qualified Non-Elective Contributions used to satisfy the ADP test may not be used to
satisfy the ACP test. 




ARTICLE XI—ADMINISTRATION  


11.1 Plan Administrator  


        The Employer shall be the named fiduciary and Plan Administrator. These duties shall include: 



        (a)  appointing the Plan's attorney, accountant, actuary, or any other party needed to administer the Plan, 


        (b)  directing the Trustee with respect to payments from the Fund, 


        (c)  communicating with Employees regarding their participation and benefits under the Plan, including the administration of
all claims procedures, 


        (d)  filing any returns and reports with the Internal Revenue Service, Department of Labor, or any other governmental agency, 


        (e)  reviewing and approving any financial reports, investment reviews, or other reports prepared by any party appointed by
the Employer under paragraph (a), 


        (f)    establishing a funding policy and investment objectives consistent with the purposes of the Plan and the Employee
Retirement Income Security Act of 1974, and 


        (g)  construing and resolving any question of Plan interpretation. The Plan Administrator's interpretation of the Plan
provisions including eligibility and benefits under the Plan is final, and unless it can be shown to be arbitrary and capricious will not be subject to "de novo" review. 



50











   11.2 Trustee  


        The Trustee shall only be responsible for maintaining the trust account(s) in accordance with applicable laws on behalf of the Employer. The Trustee's duties
shall include: 



        (a)  receiving contributions under the terms of the Plan, but not determining the amount or enforcing the payment thereof, 


        (b)  making distributions from the Fund in accordance with written instructions received from an authorized representative of
the Employer, and 


        (c)  keeping accurate and detailed records of all contributions, receipts, investments, distributions, disbursements and all
other transactions with respect to each account (in the case of Employee Investment Direction) or the Fund (in the case of Employer Investment Direction). Periodically (not less than annually), the
Trustee shall provide a transcript of all activity in the account or in the Fund (which may consist of regularly issued statements from the Service Company). In the case of Employee Investment
Direction, each such transcript will be provided to the Participant. In the case of Employer Investment Direction, each such transcript will be provided to the Employer. Each such transcript shall be
the sole accounting required of the Trustee. Unless the Participant or Employer files a written objection to the transcript within 60 days following the date it is furnished, he shall be deemed
to have consented to the accounting, and the Trustee and Service Company shall be forever released and discharged from all liability and accountability to anyone with respect to its acts,
transactions, duties, obligations or responsibilities as shown in, or reflected by the transcript. 


        (d)  employing such agents, attorneys or other professionals as the Trustee may deem necessary or advisable in the performance
of its duties. 




        The
Trustee's duties shall be limited to those described above. The Employer shall be responsible for any other administrative duties required under the Plan or by applicable law. 


11.3 Administrative Fees And Expenses  


        All reasonable costs, charges and expenses incurred by the Trustee and Service Company in connection with the administration of the Fund and all reasonable costs,
charges and expenses incurred by the Plan Administrator in connection with the administration of the Plan (including fees for legal services rendered to the Trustee and Service Company or Plan
Administrator) may be paid by the Employer, but if not paid by the Employer when due, shall be paid from the Fund. Such reasonable compensation to the Trustee and Service Company as may be agreed upon
from time to time between the Employer and the Trustee and Service Company and such reasonable compensation to the Plan Administrator as may be agreed upon from time to time between the Employer and
Plan Administrator and the compensation of the Service Company in accordance with its fee schedule as in effect at the applicable time, may be paid by the Employer, but if not paid by the Employer
when due shall be paid by the Fund. The Trustee and Service Company shall have the right to liquidate trust assets to cover its fees. Notwithstanding the foregoing, no compensation other than
reimbursement for expenses shall be paid to a Plan Administrator who is the Employer or a full-time Employee of the Employer. In the event any part of the Trust becomes subject to tax, all taxes
incurred will be paid from the Fund unless the Plan Administrator advises the Trustee not to pay such tax. 


11.4 Duties And Indemnification  



        (a)  The Trustee shall have the authority and discretion to manage and govern the Fund to the extent provided in this
instrument, but does not guarantee the Fund in any manner against investment loss or depreciation in asset value, or guarantee the adequacy of the Fund to meet and discharge all or any liabilities of
the Plan. 



51





 

        (b)  The Trustee shall not be liable for the making, retention or sale of any investment or reinvestment made by it, as herein
provided, or for any loss to, or diminution of the Fund, or for any other loss or damage which may result from the discharge of its duties hereunder except to the extent it is judicially determined
that the Trustee has failed to exercise 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 with like aims. 


        (c)  The Employer warrants that all directions issued to the Trustee by it or the Plan Administrator will be in accordance
with the terms of the Plan and not contrary to the provisions of the Employee Retirement Income Security Act of 1974 and regulations issued thereunder. 


        (d)  The Trustee shall not be answerable for any action taken pursuant to any direction, consent, certificate, or other paper
or document on the belief that the same is genuine and signed by the proper person. All directions by the Employer, Participant or the Plan Administrator shall be given in a manner and form prescribed
by the Trustee and approved by the Service Company. The Employer shall deliver to the Trustee certificates evidencing the individual or individuals authorized to act as set forth in the Adoption
Agreement or as the Employer may subsequently inform the Trustee in writing and shall deliver to the Trustee specimens of their signatures. 


        (e)  The duties and obligations of the Trustee shall be limited to those expressly imposed upon it by this instrument or
subsequently agreed upon by the parties. Responsibility for administrative duties required under the Plan or applicable law not expressly imposed upon or agreed to by the Trustee shall rest solely
with the Employer. 


        (f)    The Trustee shall be indemnified and saved harmless by the Employer from and against any and all liability to which the
Trustee may be subjected, including all expenses reasonably incurred in its defense, for any action or failure to act resulting from compliance with the instructions of the Employer, the employees or
agents of the Employer, the Plan Administrator, or any other fiduciary to the Plan, and for any liability arising from the actions or non-actions of any predecessor Trustee or fiduciary or other
fiduciaries of the Plan. 


        (g)  The Trustee shall not be responsible in any way for the application of any payments it is directed to make or for the
adequacy of the Fund to meet and discharge any and all liabilities under the Plan. 


        (h)  With respect to non-mutual fund investments, the Trustee in administering the Trust Fund is authorized and empowered to
exercise generally, any of the powers which a trustee might customarily exercise in connection with investments held by the Trust Fund and to do all other acts that the Trustee may deem necessary or
proper to carry out any of the powers and duties set forth in this Article XI. 




11.5 Special Provisions Concerning The Service Company  



        (a)  To the full extent permitted under ERISA, the Code, any other applicable federal or state law, the regulations, rules and
interpretations thereunder, and subject to any written instrument executed by the Trustee and the Service Company allocating responsibilities between them, all ministerial functions assigned to the
Trustee under the Plan shall be delegated to the Service Company. All instructions required to be given to the Trustee under the Plan will be effective if given to the Service Company in the manner
prescribed by the Service Company. To the extent the Service Company is performing a function assigned to the Trustee under the Plan, the Service Company shall have the benefit of all of
the limitations of the scope of the Trustee's duties and liabilities, all rights of indemnification granted to the Trustee and all other protections of any nature afforded the Trustee under the Plan. 



52





 

        (b)  It is understood and agreed that while the Service Company will perform certain ministerial duties (such as custodial,
reporting, recording, and bookkeeping functions) with respect to Plan assets, such duties do not involve the exercise of any discretionary authority or other authority to manage or control Plan
assets. 


        (c)  With respect to any transaction which the Service Company is directed to engage in, the Employer, the Trustee, the Named
Investment Fiduciary and the person directing the transaction shall be responsible for making sure that the transaction does not violate any applicable provision of law or disqualify the Plan under
the Code, and the Service Company shall have no responsibility therefor. 


        (d)  The Employer and, where the Service Company is following the directions or instructions of a Participant, the Trustee,
Plan Administrator or the Named Investment Fiduciary, such Participant, the Trustee, Plan Administrator or the Named Investment Fiduciary (as the case may be) shall at all times fully indemnify and
save harmless the Service Company from any liability which may arise in connection with this Plan, except liability arising from the gross negligence or willful misconduct of the Service Company. For
purposes of this Section 11.5, "liability" shall include, without limitation, taxes, expenses, claims, damages, actions, suits, attorneys' fees, expenses of litigation or preparation for
threatened litigation, and any other charges. The Service Company shall be liable for its own gross negligence or willful misconduct in the performance of the duties expressly assumed by it under the
Plan. 




ARTICLE XII—TRUST FUND  



12.1 The Fund  


        The Fund shall consist of all contributions made under Article III and Article IV of the Plan and the investment thereof and earnings thereon. All
contributions and the earnings thereon less payments made under the terms of the Plan, shall constitute the Fund. The Fund shall be administered as provided in this document. 


12.2 Control Of Plan Assets  


        The assets of the Fund or evidence of ownership shall be held by the Trustee under the terms of the Plan and Trust. If the assets represent amounts transferred
from another trustee under a former plan, the Trustee named hereunder shall not be responsible for the propriety of any investment under the former plan. 


12.3 Exclusive Benefit Rules  


        No part of the Fund shall be used for, or diverted to, purposes other than for the exclusive benefit of Participants, former Participants with a vested interest,
and the beneficiary or beneficiaries of deceased Participants having a vested interest in the Fund at death. 


12.4 Assignment And Alienation Of Benefits  



        No right or claim to, or interest in, any part of the Fund, or any payment from the Fund, shall be assignable, transferable, or subject to sale, mortgage, pledge,
hypothecation, commutation, anticipation, garnishment, attachment, execution, or levy of any kind. The Trustee shall not recognize any attempt to assign, transfer, sell, mortgage, pledge, hypothecate,
commute, or anticipate the same, except to the extent required by law. The preceding sentences shall also apply to the creation, assignment, or recognition of a right to any benefit payable with
respect to a Participant pursuant to a domestic relations order, unless such order is determined to be a qualified domestic relations order, as defined 


53





 




in Code Section 414(p), or any domestic relations order entered before January 1, 1985 which the Plan attorney and Plan Administrator deem to be qualified. 


12.5 Determination Of Qualified Domestic Relations Order (QDRO)  


        A Domestic Relations Order shall specifically state all of the following in order to be deemed a Qualified Domestic Relations Order ("QDRO"): 



        (a)  The name and last known mailing address (if any) of the Participant and of each alternate payee covered by the QDRO.
However, if the QDRO does not specify the current mailing address of the alternate payee, but the Plan Administrator has independent knowledge of that address, the QDRO will still be valid. 


        (b)  The dollar amount or percentage of the Participant's benefit to be paid by the Plan to each alternate payee, or the
manner in which the amount or percentage will be determined. 


        (c)  The number of payments or period for which the order applies. 


        (d)  The specific plan (by name) to which the Domestic Relations Order applies. 




        The
Domestic Relations Order shall not be deemed a QDRO if it requires the Plan to provide:



        (e)  any type or form of benefit, or any option not already provided for in the Plan; 


         (f)    increased benefits, or benefits in excess of the Participant's vested rights; 


         (g)  payment of a benefit earlier than allowed by the Plan's earliest retirement provisions or in the case of a profit-sharing plan, prior to the
allowability of in-service withdrawals, or 


        (h)  payment of benefits to an alternate payee which are required to be paid to another alternate payee under another QDRO. 




        Promptly,
upon receipt of a Domestic Relations Order ("Order") which may or may not be "Qualified", the Plan Administrator shall notify the Participant and any alternate payee(s) named
in the Order of such receipt, and include a copy of this paragraph 12.5. The Plan Administrator shall then forward the Order to the Plan's legal counsel for an opinion as to whether or not the
Order is in fact "Qualified" as defined in Code Section 414(p). Within a reasonable time after receipt of the Order, not to exceed 60 days, the Plan's legal counsel shall make a
determination as to its "Qualified" status and the Participant and any alternate payee(s) shall be promptly notified in writing of the determination. 


        If
the "Qualified" status of the Order is in question, there will be a delay in any payout to any payee including the Participant, until the status is resolved. In such event, the Plan
Administrator shall segregate the amount that would have been payable to the alternate payee(s) if the Order had been deemed a QDRO. If the Order is not Qualified, or the status is not resolved (for
example, it has been sent back to the Court for clarification or modification) within 18 months beginning with the date the first payment would have to be made under the Order, the Plan
Administrator shall pay the segregated amounts plus interest to the person(s) who would have been entitled to the benefits had there been no
Order. If a determination as to the Qualified status of the Order is made after the 18-month period described above, then the Order shall only be applied on a prospective basis. If the Order is
determined to be a QDRO, the Participant and alternate payee(s) shall again be notified promptly after such determination. Once an Order is deemed a QDRO, the Plan Administrator shall pay to the
alternate payee(s) all the amounts due under the QDRO, including segregated amounts plus interest which may have accrued during a dispute as to the Order's qualification. 


54









   
        Unless specified otherwise in the Adoption Agreement, the earliest retirement age with regard to the Participant against whom the order is entered shall be the date the order is
determined to be qualified. This will only allow payouts to alternate payee(s) and not the Participant. 


ARTICLE XIII—INVESTMENTS  


13.1 Fiduciary Standards


        The
Trustee shall invest and reinvest income in the same Fund in accordance with the investment objectives established by the Employer, provided that: 



         (a)  such investments are prudent under the Employee Retirement Income Security Act of 1974 and the regulations promulgated thereunder, 



        (b)  such investments are sufficiently diversified or otherwise insured or guaranteed to minimize the risk of large losses, and 


         (c)  such investments are similar to those which would be purchased by another professional money manager for a like plan with similar investment
objectives. 




13.2 No Investment Discretion



        The
Plan Sponsor and the Trustee shall have no discretion to direct any investments of the Trust and are authorized solely to make and hold investments only as directed pursuant to
Section 13.3. 


13.3 Investment Directions



         (a)  Responsibility for directing the Trustee with respect to the investment of the Trust Fund shall be allocated to the Employer, or a named
fiduciary appointed by the Employer for that purpose (the "Named Investment Fiduciary"), the Participants, or any investment manager (an "Investment Manager"), who meets the requirements of
Section 3(38) of the Employee Retirement Income Security Act of 1974 (ERISA) appointed by the Named Investment Fiduciary, all as provided in the Plan (including the Adoption Agreement). To the
extent investment responsibility is allocated to the Participant, the Designated Beneficiary of a deceased Participant shall discharge the responsibility subsequent to the Participant's death and any
reference to the Participant in any provision of the Plan pertaining to investment directions shall in such event be construed as a reference to the Designated Beneficiary. 



        (b)  Investment directions shall be given in a manner and form prescribed by the Trustee and shall be subject to such limitations, including
limitations as to the frequency with which any standing investment instructions may be changed and funds may be moved among investment choices, as the Employer or other Named Investment Fiduciary
shall prescribe. If Investment responsibility is allocated to Participants, to the extent permitted by the Trustee, investment directions may be given directly to the Service Company in a manner and
form prescribed by the Service Company. 


         (c)  Cash for which no investments are directed shall be automatically invested in such investment or investments as the Employer or other Named
Investment Fiduciary shall select from the investments the Service Company makes available for that purpose unless and until the person responsible for giving directions directs otherwise. Such
automatic investment shall be made at regular intervals and pursuant to procedures provided by the Service Company (which procedures may, without limitation, provide for more frequent intervals only
if reinvested balances exceed a stated amount). Absent a contrary direction in accordance with the preceding provisions of Section 13.2 the Service Company is hereby directed to make such
automatic investments. 



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        Notwithstanding
other provisions of the Plan to the contrary, if another qualified plan is amended and restated in the form of this Plan, the Employer or the named investment fiduciary
shall have the power to prescribe rules regarding the investment of the assets held under the other qualified plan until such time as any resulting reconciliation of Participant Accounts is completed
and the assets may be reinvested in investments permitted under Section 13.4 of the Plan. 


13.4 Permitted Investments  


        Except as Section 13.9 may apply, all amounts held in the Trust Fund under the Plan shall be invested in mutual fund shares and annuities which are offered
through the Service Company, and such other investments as shall be accepted in writing by the Service Company for availability under the Plan. 


        All
dividends, including capital gain dividends, paid by any mutual fund shall be reinvested in full and fractional shares of the mutual fund paying the dividend in the manner specified
in the prospectus of the mutual fund, and such dividends shall be credited to the Trust Fund. 


        Each
of the mutual funds in which the Plan may invest carries its own fees and expenses, which may include management fees, Rule 12b-1 fees and/or other fees and expenses, which
are described in detail in each fund's prospectus. Participants who invest in these mutual funds will, as shareholders of those funds, bear their prorata portion of each fund's fees and expenses.
Employer acknowledges that Prudential Mutual Fund Distributors (PMFD) and Prudential Securities Incorporated (PSI) may act as distributor of each fund's shares and that PSI, PMFD and Pruco Securities
Corporation (Prusec) are subsidiaries of The Prudential Insurance Company of America (Prudential) (through which the Guaranteed Interest Account is offered) and are each affiliated with the Funds as
described in each fund's prospectus. Employer acknowledges that Prudential, PMFD, PSI and Prusec are not fiduciaries to the Plan, have no obligation to the Plan or the Participants and are acting
solely in their own interest. Employer further acknowledges that Prudential, PMFD, PSI and Prusec may be deemed to benefit from advisory and other fees paid to it or its affiliates in connection with
the management and operation of the mutual funds in which the Participants may invest, from sales charges and contingent deferred sales charges imposed as described in the prospectus and from fees
paid to The Prudential Insurance Company of America in connection with the Guaranteed Interest Account. 


13.5 Shareholder Rights


        The
Trustee shall exercise any rights of a shareholder (including voting rights) with respect to any securities held, but only in accordance with the instructions of the Participant or
the Designated Beneficiary of a deceased Participant subject to and except as permitted by any applicable rules of the Securities and Exchange Commission and any national securities exchange. 


13.6 Liquidation Of Assets


        If
the Trustee must liquidate assets in order to make distributions, transfer assets, or pay fees, expenses or taxes assessed against all or a part of the Fund, and the Trustee is not
instructed as to the liquidation of such assets, assets will be liquidated in accordance with the rules and procedures customarily followed by the Service Company, which rules shall be formulated in a
manner to eliminate the potential for exercise of discretion by the Service Company in the liquidation of assets and shall be
applied consistently with respect to all similarly situated plans in the form of the Prototype Plan; provided that if a contribution is being made to an affected subaccount as of the date the Trustee
would otherwise be liquidating assets pursuant to this section, the Trustee may withdraw the necessary amount of cash and invest the remainder of the contribution in investments in the same proportion
as would have resulted had the withdrawal not been made. The Trustee is expressly authorized to liquidate 


56





 




assets in order to satisfy the Trust Fund's obligation to pay the Trustee's compensation if such compensation is not paid on a timely basis. 


13.7 Arbitration


        This
Plan requires that certain controversies be arbitrated as provided below. In this regard it is to be noted that: 



         (a)  Arbitration is final and binding on the parties. 



        (b)  The parties are waiving their right to seek remedies in court including the right to jury trial. 


         (c)  Pre-arbitration discovery is generally more limited than and different from court proceedings. 


         (d)  The arbitrator's award is not required to include factual findings or legal reasoning and any party's right to appeal or to seek modification
of
rulings by the arbitrators is strictly limited. 


        (e)  The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry. 




        Unless
the following procedure for the resolution of controversies is not enforceable under ERISA, any controversy arising out of or relating to the Plan, or with respect to transactions
of any kind executed by, through or with the Service Company or otherwise pertaining to the Plan shall be settled by arbitration. The arbitration may be before either the National Association of
Securities Dealers, Inc. (NASD) or the New York Stock Exchange, Inc., as Employer/Employee, as the case may be, may elect and shall be governed by the laws of the State of New York. If
Employer/Employee does not make the above election by registered mail addressed to PSI at its main office within 5 business days after demand by PSI that Employer/Employee make such election, then PSI
shall have the right to elect the arbitration tribunal of its choice. Notice preliminary to, in conjunction with or incident to arbitration, may be sent to Employer/Employee by mail and personal
service is hereby waived. Judgment upon any
award rendered by the arbitrators may be entered in any court having jurisdiction thereof, without notice to Employer/Employee. 


        No
person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a
putative class action; or who is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class
certification is denied; or (ii) the class is decertified; or (iii) the customer is excluded from the class by the court. Such forbearance to enforce an agreement to arbitrate shall not
constitute a waiver of any rights under this agreement except to the extent stated herein. 


13.8 Participant Loans


        Unless
otherwise specified in the Adoption Agreement, Participant Loans will not be permitted. If permitted by the Adoption Agreement, a Participant may make application to the Employer
requesting a loan from the Fund. Loans shall be made available to all Participants on a reasonably equivalent basis and shall not be made available to highly compensated employees who are Participants
in amounts greater than made available to all other Participants. The Employer will administer all Participant Loans unless the Trustee otherwise agrees in writing to accept these duties. Loan
administration duties shall include, but are not limited to: approving or disapproving loan applications from Participants, loan origination and closing, providing proper disclosures to Participant
borrowers under applicable federal and state lending laws, notifying Participant borrowers of default, and collecting current and past due payments on such loans. The Employer will notify the Trustee
of any 


57





 




loan to be made from the Fund. The Trustee will reflect the amount of each such loan and its repayments on records of the Fund. Any loan granted hereunder shall be made subject to the following
rules: 



         (a)  No loan when aggregated with any outstanding Participant loan(s), shall exceed the lessor of (i) $50,000 reduced by the excess, if any, of
the highest outstanding balance of loans during the one year period ending on the day before the loan is made, over the outstanding balance of loans from the Plan on the date the loan is made or
(ii) one-half of the fair market value of a Participant's vested account balance built up from Employer Contributions, Voluntary Contributions, and Rollover Contributions. For the purpose of
the above limitation, all loans from all plans of the Employer and other members of a group of employers described in Code Sections 414(b), 414(c), and 414(m) are aggregated. An assignment or pledge
of any portion of the Participant's interest in the Plan and a loan, pledge, or assignment with respect to any insurance contract purchased under the Plan, will be treated as a loan under this
paragraph. 


         (b)  All applications must be made on forms provided by the Employer and must be signed by the Participant. 



        (c)  Any loan granted hereunder shall bear interest at a rate reasonable at the time of application, considering the purpose of the loan and the rate
being charged by representative commercial banks in the local area for a similar loan unless the Employer sets forth a different method for determining loan interest rates in its loan procedures. The
loan agreement shall also provide that the payment of principal and interest be amortized in level payments not less frequently than quarterly. 


         (d)  The term of such loan shall not exceed five years except in the case of a loan for the purpose of acquiring any house, apartment, condominium,
or
mobile home (not used on a transient basis) which is used or is to be used within a reasonable time as the principal residence of the Participant. The term of such loan shall be determined by the
Employer considering the maturity dates quoted by representative commercial banks in the local area for a similar loan. 


         (e)  The principal and interest paid by a Participant on his or her loan shall be credited to the Fund in the same manner as for any other Plan
investment. Loans will be treated as segregated investments of the individual Participants. 


         (f)    If a Participant's loan application is approved by the Employer, such Participant shall be required to sign a note, loan agreement,
and
assignment of one-half of his or her interest in the Fund as collateral for the loan. The Participant, except in the case of a profit-sharing plan satisfying the requirements of paragraph 8.7,
must obtain the consent of his or her Spouse, if any, within the 90 day period before the time his or her account balance is used as security for the loan. A new consent is required if the account
balance is used for any renegotiation, extension, renewal or other revision of the loan, including an increase in the amount thereof. The consent must be written, must acknowledge the effect of the
loan, and must be witnessed by a plan representative or notary public. Such consent shall thereafter be binding with respect to the consenting Spouse or any subsequent Spouse. 



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



58





 





vested account balance by the amount of the security used as repayment of the loan, and then determining the benefit payable to the Surviving Spouse. 


         (h)  The Employer may also require additional collateral in order to adequately secure the loan. 


         (i)    A Participant's loan shall immediately become due and payable if such Participant terminates employment for any reason or fails to
make a
principal and/or interest payment as provided in the loan agreement. If such Participant terminates employment, the Employer shall immediately request payment of principal and interest on the loan. If
the Participant refuses payment following termination, the Employer shall reduce the Participant's vested account balance by the remaining principal and interest on his or her loan. If the
Participant's vested account balance is less than the amount due, the Employer shall take whatever steps are necessary to collect the balance due directly from the Participant. However, no foreclosure
on the Participant's note or attachment of the Participant's account balance will occur until a distributable event occurs in the Plan. 



        (j)    No loans will be made to Owners-Employees (as defined in paragraph 1.50) or Shareholder-Employees (as defined in
paragraph 1.74),
unless an exemption from the prohibited transactions rules is first obtained from the Department of Labor. 


         (k)  If a Participant requests a loan, the funds to be loaned will be taken from the subaccount or subaccounts specified by the Participant or, in
the
absence of such a specification, form the subaccounts in the order specified in Section 6.10 pertaining to withdrawals. If specific assets of the Trust Fund are allocable to individual
Participants' Accounts, such assets equal in value to the amount of the loan shall be sold at the direction of the Participant to provide the funds to be loaned. 




13.9 Insurance Policies  


        Unless otherwise specified in the Adoption Agreement, the insurance provisions of this Section 13.9 shall not be applicable. If agreed upon by the Trustee
and approved by the Employer in the Adoption Agreement, Employees may elect the purchase of life insurance policies under the Plan. If elected, the maximum annual premium for a whole life policy shall
not exceed 50% of the aggregate cumulative Employer contributions allocated to the account of a Participant. Whole life policies are policies with both nondecreasing death benefits and nonincreasing
premiums. The maximum annual premium for term contracts or universal life policies and all other policies which are not whole life shall not exceed 25% of aggregate Employer contributions allocated to
the account of a Participant. The maximum annual premiums for a Participant with both a whole life and a term contract or universal life policies shall be limited to one-half of the whole life
premiums plus the term premium but shall not exceed 25% of the aggregate Employer contributions allocated to the account of a Participant. It may also be elected to have policies purchased on behalf
of a Participant's spouse, their dependents, or any individual in whom the Participant has an insurable interest. If any policy is maintained on the joint lives of a Participant and another
individual, it may not be maintained under the Plan should the other individual predecease the Participant. Any policies purchased under this Plan shall be held subject to the following rules: 



        (a)  The Trustee shall be applicant and owner of any policies issued. 


        (b)  All policies or contracts purchased shall be endorsed as nontransferable, and must provide that proceeds will be payable
to the Trustee; however, the Trustee shall be required to pay over all proceeds of the contracts to the Participant's Designated Beneficiary in accordance with the distribution provisions of this
Plan. Under no circumstances shall the Trust retain any part of the proceeds. 



59







  



        (c)  Each Participant shall be entitled to designate a beneficiary under the terms of any contract issued; however, such
designation will be given to the Trustee which must be the named beneficiary on any policy. Such designation shall remain in force, until revoked by the Participant, by filing a new beneficiary form
with the Trustee. A Participant's Spouse will be the Designated Beneficiary of the proceeds in all circumstances unless a Qualified Election has been made in accordance with paragraph 8.4. The
beneficiary of a deceased Participant shall receive, in addition to the proceeds of the Participant's policy or policies, the amount credited to such Participant's investment account. 


        (d)  A Participant who is uninsurable or insurable at substandard rates, may elect to receive a reduced amount of insurance,
if available, or may waive the purchase of any insurance. 


        (e)  At the discretion of the Participant, any dividends or credits earned on a life insurance contract shall, either be
allocated to the Participant's account in the Fund, applied in reduction of any premiums thereon, or, if no premiums are due, applied to increase the proceeds of the life insurance contract. 


        (f)    If Employer contributions are inadequate to pay all premiums on all insurance policies, the Trustee may, at the option of
the Employer, utilize other amounts remaining in each Participant's account to pay the premiums on his or her respective policy or policies, allow the policies to lapse, reduce the policies to a level
at which they may be maintained, or borrow against the policies on a prorated basis, provided that the borrowing does not discriminate in favor of the policies on the lives of Officers, Shareholders,
and highly compensated Employees. 


        (g)  On retirement or termination of employment of a Participant, the Employer shall direct the Trustee to cash surrender the
Participant's policy and credit the proceeds to his or her account for distribution under the terms of the Plan. However, before so doing, the Trustee shall first offer to distribute the policy to the
Participant as a part of the benefit distribution. If a Participant on whose life an insurance policy is held under the Plan does not make a timely direction regarding the policy under this
Section (g), the Participant shall be deemed to have directed that the policy be converted into cash to be distributed in the manner in which the balance of the Participant's Account is to be
distributed. All distributions resulting from the application of this paragraph shall be subject to the Joint and Survivor Annuity Rules of Article VIII, if applicable. 


        (h)  The Employer shall be solely responsible to see that these insurance provisions are administered properly and that if
there is any conflict between the provisions of this Plan and any insurance contracts issued that the terms of this Plan will control. 




ARTICLE XIV—TOP-HEAVY PROVISIONS  



14.1 Applicability Of Rules  


        If the Plan is or becomes Top-Heavy in any Plan Year beginning after 1983, the provisions of this Article will supersede any conflicting provisions in the Plan or
Adoption Agreement. 


14.2 Minimum Contribution  


        Notwithstanding any other provision in the Employer's Plan, for any Plan Year in which the Plan is Top-Heavy or Super Top-Heavy, the aggregate Employer
contributions and forfeitures allocated on behalf of any Participant (without regard to any Social Security contribution) under this Plan and any other defined Contribution Plan of the Employer shall
be lesser of 3% of such Participant's Compensation or the largest percentage of Employer contributions and forfeitures, as a percentage of the Key Employee's annual Compensation allocated on behalf of
any Key Employee for that year. 


60





 



        Each
Participant who is employed by the Employer on the last day of the Plan Year shall be entitled to receive an allocation of the Employer's minimum contribution for such Plan Year.
The minimum allocation applies even though under other Plan provisions the Participant would not otherwise be entitled to receive an allocation, or would have received a lesser allocation for the year
because the Participant fails to make mandatory Contributions to the Plan, the Participant's Compensation is less than a stated amount, or the Participant fails to complete 1,000 Hours of Service (or
such lesser number designated by the Employer in the Adoption Agreement) during the Plan Year. A Paired profit-sharing plan designated to provide the minimum Top-Heavy contribution must do so
regardless of profits. An Employer may make the minimum Top-Heavy contribution available to all Participants or just non-Key Employees. 


        For
purposes of computing the minimum allocation, Compensation shall mean Compensation as defined in the second paragraph of paragraph 1.12 of the Plan. 



        The
Top-Heavy minimum contribution does not apply to any Participant to the extent the Participant is covered under any other plan(s) of the Employer and the Employer has provided in
Section 11 of the Adoption Agreement that the minimum allocation or benefit requirements applicable to Top-Heavy Plans will be met in the other plan(s). 


        If
a Key Employee makes an Elective Deferral or has an allocation of Matching Contributions made to his or her account, a Top-Heavy minimum will be required for non-Key Employees who are
Participants, however, neither Elective Deferrals by nor Matching Contributions to non-Key Employees may be taken into account for purposes of satisfying the top-heavy minimum Contribution
requirement. 


14.3 Minimum Vesting  


        For any Plan Year in which this Plan is Top-Heavy, the minimum vesting schedule elected by the Employer in the Adoption Agreement will automatically apply to the
Plan. If the vesting schedule selected by the Employer in the Adoption Agreement is less liberal than the allowable schedule, the schedule will automatically be modified. If the vesting schedule under
the Employer's Plan shifts in or out of the Top-Heavy schedule for any Plan Year, such shift is an amendment to the vesting schedule and the election in paragraph 9.8 of the Plan applies. The
minimum vesting schedule applies to all accrued benefits within the meaning of Code Section 411(a)(7) except those attributable to Employee contributions, including benefits accrued before the
effective date of Code Section 416 and benefits accrued before the Plan became Top-Heavy. Further, no reduction in vested benefits may occur in the event the Plan's status as Top-Heavy changes
for any Plan Year. However, this paragraph does not apply to the account balances of any Employee who does not have an Hour of Service after the Plan initially becomes Top-Heavy and such Employee's
account balance attributable to Employer contributions and forfeitures will be determined without regard to this paragraph. 



14.4 Limitations On Allocations  


        In any Plan Year in which the Top-Heavy Ratio exceeds 90% (i.e., the Plan becomes Super Top-Heavy), the denominators of the Defined Benefit Fraction (as defined
in paragraph 1.15) and Defined Contribution Fraction (as defined in paragraph 1.18) shall be computed using 100% of the dollar limitation instead of 125%. 


ARTICLE XV—AMENDMENT AND TERMINATION  



15.1 Amendment By Sponsor  


        The Sponsor may amend any or all provisions of this Plan and Trust at any time without obtaining the approval or consent of any Employer which has adopted this
Plan and Trust provided that no amendment shall authorize or permit any part of the corpus or income of the Fund to be used for or 


61





 




diverted to purposes other than for the exclusive benefit of Participants and their beneficiaries, or eliminate an optional form of distribution. In the case of a mass-submitted plan, the
mass-submitter shall amend the Plan on behalf of the Sponsor. 


15.2 Amendment By Employer  


        The Employer may amend any option in the Adoption Agreement, and may include language as permitted in the Adoption Agreement, 



        (a)  to satisfy Code Section 415, or 



        (b)  to avoid duplication of minimums under Code Section 416, because of the required aggregation multiple plans. 




        The
Employer may add certain model amendments published by the Internal Revenue Service which specifically provide that their adoption will not cause the Plan to be treated as an
individually designed plan for which the employer must obtain a separate determination letter. 


        If
the Employer amends the Plan and Trust other than as provided above, the Employer's Plan shall no longer participate in this Prototype Plan and will be considered an individually
designed plan. 


15.3 Termination  


        Employers shall have the right to terminate their Plans upon 60 days notice in writing to the Trustee. If the Plan is terminated, partially terminated, or
if there is a complete discontinuance of contributions under a profit-sharing plan maintained by the Employer, all amounts credited to the accounts of Participants shall vest and become
nonforfeitable. In the event of a partial termination, only those who are affected by such partial termination shall be fully vested. In the event of termination, the Employer
shall direct the Trustee with respect to the distribution of accounts to or for the exclusive benefit of Participants or their beneficiaries. The Trustee shall dispose of the Fund in accordance with
the written directions of the Plan Administrator, provided that no liquidation of assets and payment of benefits, (or provision therefor), shall actually be made by the Trustee until after it is
established by the Employer in a manner satisfactory to the Trustee, that the applicable requirements, if any, of ERISA and the Internal Revenue Code governing the termination of employee benefit
plans, have been or are being, complied with, or that appropriate authorizations, waivers, exemptions, or variances have been, or are being obtained. 



15.4 Qualification Of Employer's Plan  


        If the adopting Employer fails to attain or retain Internal Revenue Service qualification, such Employer's Plan shall no longer participate in this Prototype Plan
and will be considered an individually designed plan. 


15.5 Mergers And Consolidations  



        (a)  In the case of any merger or consolidation of the Employer's Plan with, or transfer of assets or liabilities of the the
Employer's Plan to, any other plan, Participants in the Employer's Plan shall be entitled to receive benefits immediately after the merger, consolidation, or transfer which are equal to or greater
than the benefits they would have been entitled to receive immediately before the merger, consolidation, or transfer if the Plan had then terminated. 


        (b)  Any corporation into which the Trustee or any successor trustee may be merged or with which it may be consolidated, or
any corporation resulting from any merger or consolidation to which the Trustee or any successor trustee may be a party, or any corporation to which all or substantially all the trust business of the
Trustee or any successor trustee may be transferred, shall 



62





 





be the successor of such Trustee without the filing of any instrument or performance of any further act, before any court. 




15.6 Resignation And Removal  


        The Trustee may resign by written notice to the Employer which shall be effective 60 days after delivery. The Employer may discontinue its participation in
this Prototype Plan and Trust effective upon 60 days written notice to the Sponsor. In such event the Employer shall, prior to the effective date thereof, amend the Plan to eliminate any
reference to this Prototype Plan and Trust and appoint a successor trustee or arrange for another funding agent. The Trustee shall deliver the Fund to its successor on the effective date of the
resignation or removal, or as soon thereafter as practicable, provided that this shall not waive any lien the Trustee may have upon the Fund for its compensation or expenses. If the Employer fails to
amend the Plan and appoints a successor trustee, or other funding agent within the said 60 days, or such longer period as the Trustee may specify in writing, the Plan shall be deemed
individually designed and the Employer shall be deemed the successor trustee. The Employer must then obtain its own determination letter. 


15.7 Qualification Of Prototype  


        The Sponsor intends that this Prototype Plan will meet the requirements of the Code as a qualified Prototype Retirement Plan and Trust. Should the Commissioner of
Internal Revenue or any delegate of the Commissioner at any time determine that the Plan and Trust fails to meet the requirements of the Code, the Sponsor will amend the Plan and Trust to maintain its
qualified status. 


ARTICLE XVI—GOVERNING LAW  


        Construction, validity and administration of the Prototype Plan and Trust, and any Employer Plan and Trust as embodied in the Prototype document and accompanying
Adoption Agreement, shall be governed by Federal law to the extent applicable and to the extent not applicable by the laws of the State/Commonwealth in which the principal office the Sponsor is
located. 


63









  



	Internal Revenue Service
 
	 	Department of the Treasury
 

	Plan Description: Prototype Standardized Profit Sharing Plan with CODA	 	Washington, DC 20224
	FFN: 50296321903-001 CASE: 9400380 EIN: 13-3408212	 	 
	BPD: 03 Plan: 001 Letter Serial No: D256803b	 	Person to Contact: Mr. Dua
	

PRUDENTIAL MUTUAL FUND MANAGEMENT INC.	
 	

Telephone Number: (202) 622-8380
	

1 SEAPORT PLAZA	
 	

Refer Reply to: CP:E:EP:Q:3
	

NEW YORK, NY 10292	
 	

Date: 03/11/94





Dear
Applicant: 


        In
our opinion, the amendment to the form of the plan identified above does not in and of itself adversely affect the plan's acceptability under Section 401 of the Internal
Revenue Code. This opinion relates only to the amendment to the form of the plan. It is not an opinion as to the acceptability of any other amendment or of the form of the plan as a whole, or as to
the effect of other Federal or local statutes. 


        You
must furnish a copy of this letter to each employer who adopts this plan. You are also required to send a copy of the approved form of the plan, any approved amendments and related
documents to each Key District Director of Internal Revenue Service in whose jurisdiction there are adopting employers. 


        Our
opinion on the acceptability of the form of the plan is not a ruling or determination as to whether an employer's plan qualifies under code section 401(a). An employer who
adopts this plan will be considered to have a plan qualified under Code section 401(a) provided all the terms of the plan are followed, and the eligibility requirements and contribution or
benefit provisions are not more favorable for highly compensated employees than for other employees. Except as stated below, the Key District Director will not issue a determination letter with regard
to this plan. 


        Our
opinion does not apply to the form of the plan for the purposes of Code section 401(a)(16) if: (1) an employer ever maintained another qualified plan for one or more employees
who are covered by this plan, other than a specified paired within the meaning of Section 7 of Rev. Proc. 89-9, 1989-1 C.B. 780: or (2) after December 31, 1985; the employer
maintains a welfare benefit fund defined in Code Section 419(e), which provides post retirement medical benefits allocated to separate accounts for key employees as defined in Code
section 419A(d)(3). 


        An
employer that has adopted a standardized plan may not rely on this opinion letter with respect to: (1) whether any amendment or series of amendments to the plan satisfies the
nondiscrimination requirements of section. 1.401(a)(4)-5(a) of the regulations, except with respect to the plan amendments granting past service that meet the safe harbor described in
section 1.401(a)(4)-5(a)(5) and are not part of a pattern of amendments that significantly discriminates in favor of a highly compensated employees; or (2) whether the plan satisfies the
effective availability requirement of section 1.401(a)(4)-4(c) of the regulations with respect to any benefits, right or feature. 



        An
employer that has adopted a standardized plan as an amendment to a plan other than a standardized plan may not rely on this opinion letter with respect to whether a benefit, right or
other feature that is prospectively eliminated satisfies the current availability requirements of section 1.401(a)-4 of the regulations. 


        The
employer may request a determination (1) as to whether the plan, considered with all related qualified plans and, if appropriate, welfare benefit funds, satisfies the requirements of
Code section 401(a)(16) as to limitations on benefits and contributions in Code section 415: (2) regarding the 


64





 




nondiscriminatory effect of grants of past service; and (3) with respect to whether a prospectively eliminated benefit, right or feature satisfies the current availability requirements. 


        Our
opinion does not apply to the form of the plan for purposes of section 401(a) of the code unless the terms of the plan, as adopted or amended, that pertain to the requirements
of sections 401(a)(4), 401(a)(5), 401(a)(17), 401(l), 401(b) and 401(s) of the Code, as amended by the Tax Reform Act of 1986 or subsequent legislation, (a) are made effective retroactively to
the first day of the first plan year beginning after December 31, 1988 (or such other date on which these requirements first became effective with respect to this plan); or (b) are made
effective no later than the first day on which the employer is no longer entitled, under regulations, to rely on a reasonable, good faith interpretation of these requirements, and the prior provisions
of the plan constitute such an interpretation. 


        This
letter with respect to the amendment to the form of the plan does not affect the applicability to the plan of the continued, interim and extended reliance provisions of
section 13 and 17.03 of Rev. Proc. 89-9, 1989-1 C.B. 780 The applicability of such provisions may be determined by reference to the initial opinion letter issued with respect to the plan. 



        If
you, the sponsoring organization, have any questions concerning the IRS processing of this case, please call the above telephone number. This number is only for use of the sponsoring
organization. Individual participants and/or adopting employers with questions concerning the plan should contact the sponsoring organization. The plan's adoption agreement must include the sponsoring
organization's address and telephone number for inquiries by adopting employers. 


        If
you write to the IRS regarding this plan, please provide your telephone number and the most convenient time for us to call in case we need more information. Whether you call or write,
please refer to the Letter Serial Number and File Folder Number shown in the heading of this letter. 


        You
should keep this letter as a permanent record. Please notify us if you modify or discontinue sponsorship of this plan. 













Sincerely
yours,

[ILLEGIBLE] 


Chief
Employee Plans Qualifications Branch 













65





 




	Internal Revenue Service
 
	 	Department of the Treasury
 

	Plan Description: Prototype Non-standardized Profit Sharing Plan with CODA	 	Washington, DC 20224
	FFN: 50396321903-002 CASE: 9400381 EIN: 13-3408212	 	 
	BPD: 03 Plan: 002 Letter Serial No: D356804b	 	Person to Contact: Mr. Dua
	

PRUDENTIAL MUTUAL FUND MANAGEMENT INC.	
 	

Telephone Number: (202) 622-8380
	

1 SEAPORT PLAZA	
 	

Refer Reply to: CP:E:EP:Q:3
	

NEW YORK, NY 10292	
 	

Date: 03/11/94





Dear
Applicant: 


        In
our opinion, the amendment to the form of the plan identified above does not in and of itself adversely affect the plan's acceptability under Section 401 of the Internal
Revenue Code. This opinion relates only to the amendment to the form of the plan. It is not an opinion as to the acceptability of any other amendment or of the form of the plan as a whole, or as to
the effect of other Federal or local statutes. 


        You
must furnish a copy of this letter to each employer who adopts this plan. You are also required to send a copy of the approved form of the plan, any approved amendments and related
documents to each Key District Director of Internal Revenue Service in whose jurisdiction there are adopting employers. 


        An
employer who adopts the amended form of the plan after the date of the amendment should apply for a determination letter by filing an application with the Key District Director of the
Internal Revenue Service on Form 5307, Short Form Application for Determination for Employee Benefit Plan. 


        This
letter with respect to the amendment to the form of the plan does not affect the applicability to the plan of the continued, interim and extended reliance provisions of sections 13
and 17.03 of Rev. Proc. 89-9, 1989-1 C.B. 780. The applicability of such provisions may be determined by reference to the initial opinion letter issued with respect to the plan. 


        If
you, the Sponsoring organization, have any questions concerning the IRS processing of this case, please call the above telephone number. This number is only for use of the sponsoring
organization. Individual participants and/or adopting employers with questions concerning the plan should contact the sponsoring organization. The plan's adoption agreement must include the sponsoring
organization's address and telephone number for inquiries by adopting employers. 


        If
you write to the IRS regarding this plan, please provide your telephone number and the most convenient time for us to call in case we need more information. Whether you call or write,
please refer to the Letter Serial Number and File Folder Number shown in the heading of this letter. 


        You
should keep this letter as a permanent record. Please notify us if you modify or discontinue sponsorship of this plan. 













Sincerely
yours,

[ILLEGIBLE] 



Chief
Employees Plan Qualifications Branch 













66











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