UNDER STATE LAW, AND (VI) FOR
WHOM THERE IS AN AFFIRMATION OF DOMESTIC PARTNERSHIP ON FILE WITH THE
ADMINISTRATOR.
IN DETERMINING WHETHER THE REQUIREMENTS OF CLAUSES (I) THROUGH
(V) OF THE PRECEDING SENTENCE HAVE
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BEEN SATISFIED, THE ADMINISTRATOR MAY RELY ON THE AFFIRMATION OF DOMESTIC
PARTNER FILED WITH THE ADMINISTRATOR.
(R)
"GRANDFATHERED AMOUNT" HAS THE MEANING
SPECIFIED IN SECTION 1.02.
(S)
"NON-GRANDFATHERED AMOUNT" MEANS A BENEFIT
UNDER THE PLAN THAT IS NOT A GRANDFATHERED AMOUNT.
(T)
"PARTICIPANT" MEANS A DIRECTOR WHO AGREES
TO MAKE DEFERRALS UNDER THE PLAN AND TO BE BOUND BY THE PROVISIONS OF THE PLAN
ON A FORM PROVIDED BY THE COMPANY, AND WHO IS, OR WHOSE BENEFICIARIES ARE,
ENTITLED TO BENEFITS UNDER THE PLAN.
ONCE AN INDIVIDUAL HAS BECOME A
PARTICIPANT PURSUANT TO THE PRECEDING SENTENCE, HE SHALL REMAIN A PARTICIPANT
UNTIL HIS ENTIRE BENEFIT UNDER THE PLAN HAS BEEN DISTRIBUTED.
(U)
"PAYMENT YEAR" MEANS A DIRECTOR'S ANNUAL
TERM OF SERVICE, WHICH IS THE PERIOD BEGINNING ON THE DAY AFTER AN ANNUAL
SHAREHOLDERS MEETING OF THE COMPANY AND ENDING ON THE DATE OF THE SUBSEQUENT
YEAR'S ANNUAL SHAREHOLDERS MEETING.
(V)
"PLAN" MEANS THE "CUMMINS INC. DEFERRED
COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS," AS SET OUT IN THIS DOCUMENT AND
AS IT MAY BE AMENDED FROM TIME TO TIME.
(W)
"QUALIFIED DOMESTIC RELATIONS ORDER" HAS THE
MEANING SPECIFIED IN CODE SECTION 414(P).
(X)
"SPOUSE" MEANS, AS OF THE DATE A
PARTICIPANT'S BENEFITS UNDER THE PLAN ARE PAID, OR COMMENCE TO BE PAID, (I) THE
PERSON TO WHOM THE PARTICIPANT IS MARRIED IN ACCORDANCE WITH APPLICABLE LAW OF
THE JURISDICTION IN WHICH THE PARTICIPANT RESIDES, OR (II) IN THE CASE OF A
PARTICIPANT NOT DESCRIBED IN CLAUSE (I), THE PARTICIPANT'S DOMESTIC PARTNER.
(Y)
"STOCK DEFERRALS" MEANS THE STOCK PORTION OF
ELIGIBLE COMPENSATION DEFERRED BY A DIRECTOR PURSUANT TO THE PLAN.
(Z)
"TERMINATES SERVICE," "TERMINATION OF
SERVICE," OR ANY VARIATION THEREOF REFERS TO A SEPARATION FROM SERVICE WITHIN
THE MEANING OF CODE SECTION 409A(A)(2)(A)(I) FOR A REASON OTHER THAN THE
DIRECTOR'S DEATH.
SECTION 2.02.
RULES OF INTERPRETATION.
(A)
THE PLAN IS INTENDED TO COMPLY WITH CODE
SECTION 409A, AND IT SHALL BE INTERPRETED AND ADMINISTERED IN ACCORDANCE WITH
SUCH INTENT.
EXCEPT AS PROVIDED IN THE PRECEDING SENTENCE OR AS OTHERWISE
EXPRESSLY PROVIDED HEREIN, THE PLAN SHALL BE CONSTRUED, ENFORCED, AND
ADMINISTERED, AND THE VALIDITY THEREOF DETERMINED, IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE STATE OF INDIANA WITHOUT REGARD TO CONFLICT OF LAW
PRINCIPLES, AND THE FOLLOWING PROVISIONS OF THIS SECTION.
(B)
WORDS USED HEREIN IN THE MASCULINE SHALL BE
CONSTRUED TO INCLUDE THE FEMININE, WHERE APPROPRIATE, AND VICE VERSA, AND WORDS
USED HEREIN IN THE SINGULAR OR PLURAL SHALL BE CONSTRUED TO INCLUDE THE PLURAL
OR SINGULAR, WHERE APPROPRIATE.
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(C)
HEADINGS AND SUBHEADINGS ARE USED FOR
CONVENIENCE OF REFERENCE ONLY AND SHALL NOT AFFECT THE INTERPRETATION OF ANY
PROVISION HEREOF.
(D)
IF ANY PROVISION OF THE PLAN SHALL BE HELD
TO VIOLATE THE CODE OR BE ILLEGAL OR INVALID FOR ANY OTHER REASON, THAT
PROVISION