THE FIRST DAY OF SUCH YEAR (OR AS OF THE DATE PARTICIPATION IN THE PLAN
COMMENCES, IN THE CASE OF A PARTICIPANT'S FIRST YEAR OF PARTICIPATION DESCRIBED
IN SECTION 3(B) ABOVE).
(B)
NOTIONAL EARNINGS.
NOT LESS FREQUENTLY THAN ANNUALLY, THE
ADMINISTRATOR SHALL ADJUST EACH PARTICIPANT'S ACCOUNT TO REFLECT NOTIONAL
EARNINGS.
NOTIONAL EARNINGS SHALL BE BASED ON ONE EARNINGS MEASURE SELECTED BY
THE PARTICIPANT FROM SUCH EARNINGS MEASURES AS THE ADMINISTRATOR SHALL SPECIFY.
SUBJECT TO SECTIONS 5(E)(III) AND (IV) BELOW, THE NEXT SENTENCE AND SUCH OTHER
RULES AND REGULATIONS AS THE ADMINISTRATOR MAY REQUIRE, THE ADMINISTRATOR MAY,
BUT NEED NOT, PERMIT PARTICIPANTS TO (I) SELECT AN EARNINGS
6
MEASURE THAT WILL APPLY TO THEIR ACCOUNTS FROM AMONG THOSE SPECIFIED BY THE
ADMINISTRATOR, AND (II) CHANGE SUCH EARNINGS MEASURE TO ANOTHER SPECIFIED
EARNINGS MEASURE.
NOTWITHSTANDING ANY PROVISION OF THIS PLAN TO THE CONTRARY,
(I) A PARTICIPANT MAY ONLY SELECT ONE EARNINGS MEASURE TO APPLY TO HIS OR HER
ENTIRE ACCOUNT AT ANY ONE TIME, AND (II) THE EFFECTIVE DATE OF ANY CHANGE IN
EARNINGS MEASURE MUST BE A PROSPECTIVE JANUARY 1.
THE ADMINISTRATOR SHALL HAVE
THE ABSOLUTE DISCRETION AT ANY TIME TO ALTER OR AMEND THE EARNINGS MEASURES USED
IN VALUING AND ADJUSTING ACCOUNTS; PROVIDED, THAT THE ADMINISTRATOR MAY NOT,
WITHOUT THE WRITTEN CONSENT OF THE AFFECTED PARTICIPANT, ALTER ANY EARNINGS
MEASURE RETROACTIVELY TO THE EXTENT THAT THE EFFECT OF SUCH ALTERATION WOULD BE
TO REDUCE THE BALANCE OF THE PARTICIPANT'S ACCOUNT BELOW WHAT IT WAS IMMEDIATELY
PRIOR TO SUCH ALTERATION.
NOTHING HEREIN SHALL BE CONSTRUED AS OBLIGATING THE
ADMINISTRATOR OR ANY EMPLOYER TO SET ASIDE ASSETS OR ESTABLISH A TRUST OR OTHER
FUND FOR PURPOSES OF THE PLAN.
(C)
FICA/MEDICARE TAXES, ETC.
TO THE EXTENT ANY AMOUNT DEFERRED OR
CREDITED HEREUNDER TO THE ACCOUNT OF A PARTICIPANT IS TREATED AS "WAGES" FOR
FICA/MEDICARE OR FUTA TAX PURPOSES ON A CURRENT BASIS RATHER THAN WHEN
DISTRIBUTED, ALL AS DETERMINED BY THE ADMINISTRATOR, THEN THE ADMINISTRATOR
SHALL REQUIRE THAT THE PARTICIPANT EITHER (I) TIMELY PAY SUCH TAXES IN CASH BY
SEPARATE CHECK TO THE EMPLOYER, OR (II) MAKE OTHER ARRANGEMENTS SATISFACTORY TO
THE EMPLOYER (E.G., ADDITIONAL WITHHOLDING FROM OTHER WAGE PAYMENTS) FOR THE
PAYMENT OF SUCH TAXES.
TO THE EXTENT A PARTICIPANT FAILS TO PAY OR PROVIDE FOR
SUCH TAXES AS REQUIRED, THE ADMINISTRATOR MAY SUSPEND THE PARTICIPANT'S
PARTICIPATION IN THE PLAN OR REDUCE AMOUNTS CREDITED OR TO BE CREDITED
HEREUNDER.
5.
PAYMENT OF DEFERRED AMOUNTS.
THE PARTICIPANT'S EMPLOYER SHALL
MAKE DISTRIBUTIONS OF ACCOUNT BALANCES AS PROVIDED IN THIS SECTION.
ALL
DISTRIBUTIONS SHALL BE IN CASH.
(A)
FORM AND TIMING OF DISTRIBUTIONS; IN GENERAL.
AMOUNTS CREDITED TO
A PARTICIPANT'S ACCOUNT FOR ANY YEAR UNDER SECTION 4(A) ABOVE (THE "DEFERRAL
YEAR"), ADJUSTED FOR NOTIONAL EARNINGS UNDER SECTION 4(B) ABOVE, SHALL BE PAID
AS THE PARTICIPANT ELECTS EITHER
(I)
UPON THE EXPIRATION OF A FIXED PERIOD OF YEARS, BUT IN NO EVENT
EARLIER THAN THE THIRD ANNIVERSARY OF THE BEGINNING OF THE DEFERRAL YEAR (A
"FIXED-PERIOD ELECTION"), OR
(II)
UPON THE PARTICIPANT'S SEPARATION FROM