Exhibit 10.1(ai)


 


AMENDMENT NUMBER FOUR

TO

SAUER-DANFOSS EMPLOYEES’

SAVINGS PLAN


(Formerly the Sauer-Sundstrand Employees’ Savings

and Retirement Plan, As Amended and Restated,

Effective January 1, 1997 and Renamed As of January 1, 2001)


 


By virtue and in exercise of
the amending power reserved to Sauer Danfoss Company (the “Company”) by
subsection 14.1 of the Sauer-Danfoss Employees’ Savings Plan (formerly, the
Sauer-Sundstrand Employee’s Savings and Retirement Plan), As Amended and
Restated as of January 1, 1997 and Renamed as of January 1, 2001 (the “Plan”),
and pursuant to the authority delegated to the undersigned officer of the
Company by the Employee Benefit Committee of the Company, the Plan is hereby
amended, effective as of January 1, 2002, by adding on Appendix A thereto in
the form of the attached Appendix A.


 


IN WITNESS WHEREOF, the
above amendment is adopted this 8th day of February, 2002.


 


 


	
   

  	
  SAUER DANFOSS COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth P. McCuskey

  	
   

  
	
   

  	
    Kenneth P. McCuskey

  
	
   

  	
    Vice President Finance

  



 

















 


SAUER-DANFOSS EMPLOYEES’

SAVINGS PLAN


 


APPENDIX A


 


Application of
the Economic Growth and Tax Relief Reconciliation Act of 2001


 


This Appendix A is intended to
demonstrate good faith compliance with the requirements of the Economic Growth
and Tax Relief Reconciliation Act of 2001 (“EGTRRA”) and is to be construed in
accordance with EGTRRA the and guidance issued thereunder. The provisions of
this Appendix A shall supersede the applicable provisions of the Plan to the
extent those provisions are inconsistent with the provisions of this Appendix.


 


A-l                               Effective
Date. Except as otherwise provided, this amendment shall be effective as of
the first day of the first Plan Year beginning after December 31, 2001.


 


A-2.                         Limits
on Contributions. Notwithstanding the provisions of Section 6.3 of the
Plan, effective for Limitation Years beginning after December 31, 2001:


 


(a)                                  Except
to the extent permitted under 414(v) of the Code, if applicable, the “annual
addition” (as defined in subsection 6.3(e)(i) of the Plan) that may be
contributed or allocated to a participant’s account under the Plan for any
Limitation Year shall not exceed the lesser of:


 


(i)                                     Forty
thousand dollars ($40,000), or such greater amount determined by the Secretary
of the Treasury for that year; or


 


(ii)                                  One
hundred percent (100%) of the Participant’s Section 415 Compensation during
that Limitation Year.


 


For purposes
of subsection (ii) immediately above, Section 415 Compensation shall not
include any contribution for medical benefits after separation from service
(within the meaning of Sections 401(h) or 419A(f)(2) of the Code) which is
otherwise treated as an annual addition.


 


A-3.                         Limits on Compensation.


 


(a)                                  Compensation. Notwithstanding the
definition of “Compensation” under subparagraph 1.8 of the Plan, effective for
Plan Years beginning after December 31, 2001, Earnings shall be limited for any
Plan Year to $200,000 per Participant (as adjusted by the Secretary of the
Treasury for cost-of-living increases pursuant to Section 40l(a)(17)(B) of the
Code).


 

















 


(b)                                 Section 415 Compensation. Notwithstanding the definition of “Section
415 Compensation” under subparagraph 6.3(e)(ii) of the Plan, effective for
Limitation Years beginning after December 31, 2001, a Participant’s total
annual cash compensation taken into account shall be limited for any for any
Plan Year to $200,000 per Participant (as adjusted by the Secretary of the
Treasury for cost-of-living increases pursuant to Section 401(a)(17)(B) of the
Code).


 


A-4.                         Salary Deferral Limitation.  Effective for Plan Years beginning after
December 31, 2001 and consistent with Section 6.4 of the Plan, in no event
shall the amount of Pre-tax Contributions made by a Participant with respect to
any calendar year exceed the elective deferral limit of Code Section 402(g)(5)
(as adjusted by the Secretary of the Treasury, which for 2002 shall be
$11,000), reduced by the Participant’s elective deferrals for such tax year
under any other salary reduction arrangement (i.e., under any Code Section
401(k) or 403(b) plan), except to the extent permitted under Section 414(v) of
the Code, if applicable.


 


A-5.                         Benefit and Contribution Limitations - Multiple Use of Alternative
Limitation. Notwithstanding
Section 6.7 of the Plan, the restriction on the multiple use of the
“alternative limitation,” which may occur as a result of the testing under the
limitations described in Sections 6.5 and 6.6 of the Plan, shall not apply for
Plan Years beginning after December 31, 2001,


 


A-6.                         Involuntary Cash-Outs.
Effective after December 31, 2001, for purposes of determining whether the sum
of such a Participant’s vested Account balances is less than or equal to $5,000
in accordance with subsection 12.5 of the Plan, the balance of the
Participant’s Rollover Contribution Account (and earnings allocated thereto)
shall be disregarded. If the sum of the Participant’s vested Account balances
is less than or equal to $5,000 without regard to the balance of his or her
Rollover Contribution Account (and earnings allocated thereto), the Plan
Administrator shall direct the Trustee to distribute the Participant’s vested
Account balance in a lump sum (in cash) without the consent of the Participant
(or Beneficiary) in accordance with subsection 12.5 of the Plan.


 


A-7.                         Rollover Rules.


 


(a)                                  Rollover Contributions. Effective for eligible rollover distributions
received after December 31, 2001, the provisions of Section 402(c) of the Code
that are incorporated under Section 5.3 of the Plan are modified as follows:


 


(i)                                     Direct Rollovers. The Plan will accept an
eligible rollover distribution from a qualified plan described in Section 401
(a) of the Code, excluding after-tax employee contributions.


 


(ii)                                  Participant Rollovers from Another
Tax-Qualified Plan. The Plan will accept as a Rollover Contribution a
distribution that a Participant received that is an eligible rollover
distribution from qualified plan described in Section 401 (a) of the Code,
excluding after-tax employee contributions.


 


2

















 


(iii)                               Participant Rollovers from an IRA. The Plan
will accept as a Rollover Contribution a portion of a distribution that a
Participant receives from an individual retirement account or annuity described
in Section 408(a) or 408(b) of the Code that is eligible to be rolled over and
would otherwise be includible in gross income.


 


(b)                                 Direct Rollovers of Plan
Distributions. Effective for
Plan distributions made after December 31, 2001, the provisions of Section
402(c) of the Code that are incorporated under Section 12.11 of the Plan are
modified as follows:


 


(i)                                     An “eligible retirement plan” shall also mean
an annuity contract described in Code Section 403(b) and an eligible plan under
Code Section 457(b) that is maintained by a state, political subdivision of a
state, or, any agency or instrumentality of a state or political subdivision of
a state and that agrees to separately account for amounts transferred into such
plan from this Plan. Notwithstanding Section 12.11 of the Plan, the definition
of eligible retirement plan shall also apply in the case of a distribution to a
Spouse or a former spouse who is the alternate payee under a qualified domestic
relation order, as defined in Code Section 4l4(p).


 


(ii)                                  An “eligible rollover distribution” shall be
modified to exclude any amount that is distributed on account of hardship and
the distributee may not elect to have any portion of such a distribution paid
directly to an eligible retirement plan.


 


(iii)                               An “eligible rollover distribution” shall be
modified to include Post-tax Contributions; provided, however, that such
Post-tax Contributions are transferred to an individual retirement annuity
described in Code Section 408(b), an annuity plan described in Code Section
403(a), or to a qualified defined contribution plan described in Code Sections
401(a) or 403(a) that agrees to separately account for the portion of such
distribution that is includible in gross income and the portion of such
distribution which is not so includible.


 


A-8.                         Hardship Withdrawals.
Notwithstanding subsection 11.2 of the Plan, a Participant who receives a
hardship withdrawal after December 31, 2001 under Section 11.2 of the Plan
shall have his or her Pre-tax Contributions and Post-tax Contributions
suspended for 6 months beginning on the date as of which he or she receives the
hardship withdrawal.


 


A-9.                         Top Heavy Rules.
Notwithstanding the provisions of Article 15 of the Plan, effective for Plan
Years beginning after December 31, 2001, this Section A-9 shall apply for
purposes of determining whether the Plan is a Top-Heavy Plan under Section
416(g) of the Code and whether the Plan satisfies the minimum contribution
requirements of Section 416(c) of the Code for such years.


 


3

















 


(a)                                  Determination of present
values and amounts. Notwithstanding
Section 15.2 of the Plan, rhis subsection A-9(a) shall apply for purposes of
determining the amounts of account balances of Employees as of the
determination date.


 


(i)                                     Distributions during Year Ending on the
Determination Date. The amounts of account balances of an Employee as of the
determination date shall be increased by the distributions made with respect to
the Employee under the Plan and any plan aggregated with the Plan under Section
416(g)(2) of the Code during the 1-year period ending on the determination
date. The preceding sentence shall also apply to distributions under a
terminated plan which, had it not been terminated, would have been aggregated
with the Plan under Section 416(g)(2)(A)(i) of che Code, In the case of a
distribution made for a reason other than a Severance from Service, death, or
Disability, this provision shall be applied by substituting 5-year period for
1-year period.


 


(ii)                                  Employees not Performing Services during Year
Ending on the Determination Date. The accounts of any individual who has not
performed services for an Employer during the 1-year period ending on the
determination date shall not be taken into account.


 


(b)                                 Key Employee. Notwithstanding the definition of “Key
Employee” under Section 15.2(f) of the Plan, effective for Plan Years beginning
after December 31, 2001, “Key Employee” means any Employee or former Employee
(including any deceased Employee) who at any time during the Plan Year that
includes the determination date was (i) an officer of an Employer having annual
compensation greater than $130,000 (as adjusted under Section 416(i)(l) of the
Code for Plan Years beginning after December 31, 2002), (ii) a 5%  owner of an Employer, or (iii) a 1% owner of an Employer having annual
compensation of more than $150,000. For this purpose, annual compensation means
compensation within the meaning of Section 415(c)(3) of the Code. The
determination of who is a Key Employee will be made in accordance with Section
416(i)(l) of the Code and the applicable regulations and other guidance of
general applicability issued thereunder.


 


(c)                                  Minimum Benefits. Matching Contributions shall be taken into
account for purposes of satisfying the minimum contribution requirements of
Section 416(c)(2) of che Code and Section 15.4 of the Plan. The preceding
sentence shall apply with respect to  Matching
Contributions under the Plan or, if under Section 15.4 of the Plan the minimum
contribution requirement shall be met in another plan, such other plan. Matching
Contributions that are used to satisfy the minimum contribution requirements
shall be treated as Matching Contributions for purposes of the Actual
Contribution Percentage test and other requirements of Section 401(m) of the
Code and Section 6.6 of the Plan.


 


4