Document:

THE
RETIREMENT
ADVANTAGE,
INC.

DEFINED
CONTRIBUTION
VOLUME
SUBMITTER
PLAN AND
TRUST

TABLE
OF CONTENTS

 

ARTICLE
I

DEFINITIONS

 

ARTICLE
II 

ADMINISTRATION

 

2.1
POW ERS
AND RESPONSIBILITIES
OF THE
EMPLOYER
..................................................................................................
15

 

2.2
DESIGNATION
OF ADMINISTRATIVE
AUTHORITY
..........................................................................................................
15

2.3ALLOCATION
AND DELEGATION
OF RESPONSIBILITIES
................................................................................................
16

 

2.4POW
ERS AND
DUTIES
OF THE
ADMINISTRATOR
...........................................................................................................
16

 

2.5
RECORDS
AND REPORTS
..............................................................................................................................................
17

2.6APPOINTMENT
OF ADVISERS..........................................................................................................................................
17

2.7INFORMATION
FROM
EMPLOYER
....................................................................................................................................
17

 

2.8
PAYMENT
OF EXPENSES
................................................................................................................................................
17

 

2.9
MAJORITY
ACTIONS
.......................................................................................................................................................
17

 

2.10
CLAIMS
PROCEDURES
..................................................................................................................................................
17

 

 

ARTICLE
III 

ELIGIBILITY

 

3.1CONDITIONS
OF ELIGIBILITY
.............................................................................................................................................
18

3.2EFFECTIVE
DATE
OF PARTICIPATION
...............................................................................................................................
18

 

3.3
DETERMINATION
OF ELIGIBILITY
......................................................................................................................................
19

3.4TERMINATION
OF ELIGIBILITY
...........................................................................................................................................
19

 

3.5
REHIRED
EMPLOYEES
AND 1-YEAR
BREAKS
IN SERVICE...............................................................................................
19

3.6ELECTION
NOT TO
PARTICIPATE
......................................................................................................................................
20

 

3.7
OMISSION
OF ELIGIBLE
EMPLOYEE;
INCLUSION
OF INELIGIBLE
EMPLOYEE
....................................................................
21

 

 

ARTICLE
IV

CONTRIBUTION
AND ALLOCATION

 

4.1
FORMULA
FOR DETERMINING
EMPLOYER'S
CONTRIBUTION
..........................................................................................
21

4.2TIME
OF PAYMENT
OF EMPLOYER'S
CONTRIBUTION
......................................................................................................
21

 

4.3
ALLOCATION
OF CONTRIBUTIONS,
FORFEITURES
AND EARNINGS................................................................................
22

4.4MAXIMUM
ANNUAL
ADDITIONS
........................................................................................................................................
28

4.5ADJUSTMENT
FOR EXCESS
ANNUAL
ADDITIONS
............................................................................................................
31

4.6ROLLOVERS
.....................................................................................................................................................................
31

4.7PLAN-TO-PLAN
TRANSFERS
FROM
QUALIFIED
PLANS
...................................................................................................
31

4.8AFTER-TAX
VOLUNTARY
EMPLOYEE
CONTRIBUTIONS
..................................................................................................
32

4.9QUALIFIED
VOLUNTARY
EMPLOYEE
CONTRIBUTIONS
....................................................................................................
33

 

4.10
PARTICIPANT
DIRECTED
INVESTMENTS
.........................................................................................................................
33

 

4.11
INTEGRATION
IN MORE
THAN ONE
PLAN
.......................................................................................................................
33

4.12QUALIFIED
MILITARY
SERVICE.........................................................................................................................................
34

4.13TRANSFER
OF ASSETS
FROM
TERMINATED
EMPLOYER
DEFINED
BENEFIT
PENSION
PLAN
..........................................
34

 

 

ARTICLE
V

VALUATIONS

 

5.1VALUATION
OF THE
TRUST
FUND
....................................................................................................................................
35

5.2METHOD
OF VALUATION
..................................................................................................................................................
35

 

 

© 2014
The Retirement
Advantage,
Inc.
or its
suppliers

i

    	 

    	 

    

DETERMINATION
AND DISTRIBUTION
OF BENEFITS

 

6.1
DETERMINATION
OF BENEFITS
UPON
RETIREMENT
........................................................................................................
35

6.2DETERMINATION
OF BENEFITS
UPON
DEATH
..................................................................................................................
35

 

6.3
DETERMINATION
OF BENEFITS
IN EVENT
OF DISABILITY
...............................................................................................
36

 

6.4
DETERMINATION
OF BENEFITS
UPON
TERMINATION
......................................................................................................
36

6.5DISTRIBUTION
OF BENEFITS
............................................................................................................................................
38

 

6.6DISTRIBUTION
OF BENEFITS
UPON
DEATH
......................................................................................................................
41

 

6.7
TIME
OF DISTRIBUTION
....................................................................................................................................................
43

6.8REQUIRED
MINIMUM
DISTRIBUTIONS
................................................................................................................................
43

6.9DISTRIBUTION
FOR MINOR
OR INCOMPETENT
INDIVIDUAL
...............................................................................................
47

 

6.10
LOCATION
OF PARTICIPANT
OR BENEFICIARY
UNKNOWN ..........................................................................................
47

 

6.11
IN-SERVICE
DISTRIBUTION
.............................................................................................................................................
47

6.12ADVANCE
DISTRIBUTION
FOR HARDSHIP
......................................................................................................................
47

6.13SPECIAL
RULE
FOR CERTAIN
PROFIT
SHARING
PLANS
................................................................................................
48

6.14QUALIFIED
DOMESTIC
RELATIONS
ORDER
DISTRIBUTION
.............................................................................................
48

6.15DIRECT
ROLLOVERS
.......................................................................................................................................................
48

 

6.16
RESTRICTIONS
ON DISTRIBUTION
OF ASSETS
TRANSFERRED
FROM
A MONEY
PURCHASE
PLAN
............................. 50

 

6.17CORRECTIVE
DISTRIBUTIONS..........................................................................................................................................
50

 

6.18
QUALIFIED
RESERVIST
DISTRIBUTIONS
AND HEART
ACT .............................................................................................
50

 

 

ARTICLE
VII

TRUSTEE
AND CUSTODIAN

 

7.1
BASIC
RESPONSIBILITIES
OF THE
TRUSTEE
...................................................................................................................
51

7.2INVESTMENT
POW ERS
AND DUTIES
OF DISCRETIONARY
TRUSTEE...............................................................................
51

7.3INVESTMENT
POW ERS
AND DUTIES
OF NONDISCRETIONARY
TRUSTEE
.......................................................................
53

 

7.4
POW ERS
AND DUTIES
OF CUSTODIAN
..........................................................................................................................
55

 

7.5LIFE
INSURANCE
..............................................................................................................................................................
55

 

7.6
LOANS
TO PARTICIPANTS
..............................................................................................................................................
55

7.7ALLOCATION
AND DELEGATION
OF RESPONSIBILITIES
.................................................................................................
56

7.8TRUSTEE'S
COMPENSATION
AND EXPENSES
AND TAXES
.............................................................................................
56

 

7.9
ANNUAL
REPORT
OF THE
TRUSTEE
...............................................................................................................................
57

7.10AUDIT
.............................................................................................................................................................................
57

 

7.11
RESIGNATION,
REMOVAL
AND SUCCESSION
OF TRUSTEE
.........................................................................................
57

 

7.12
TRANSFER
OF INTEREST...............................................................................................................................................
58

 

7.13
TRUSTEE
INDEMNIFICATION
..........................................................................................................................................
58

 

7.14
EMPLOYER
SECURITIES
AND REAL
PROPERTY
............................................................................................................
58

 

7.15
DIVESTMENT
OF EMPLOYER
SECURITIES
.....................................................................................................................
58

 

 

ARTICLE
VIII

AMENDMENT,
TERMINATION
AND MERGERS

 

8.1
AMENDMENT
....................................................................................................................................................................
59

8.2TERMINATION.....................................................................................................................................................................
60

 

8.3
MERGER,
CONSOLIDATION
OR TRANSFER
OF ASSETS
..................................................................................................
60

 

 

 

 

 

© 2014
The Retirement
Advantage,
Inc.
or its
suppliers

ii

    	 

    	 

    

TOP-HEAVY
PROVISIONS

 

9.1
TOP-HEAVY
PLAN
REQUIREMENTS
................................................................................................................................
61

9.2DETERMINATION
OF TOP-HEAVY
STATUS
......................................................................................................................
61

 

 

ARTICLE
X 

MISCELLANEOUS

 

10.1
EMPLOYER
ADOPTIONS.................................................................................................................................................
62

 

10.2
PARTICIPANT'S
RIGHTS
.................................................................................................................................................
62

10.3ALIENATION
....................................................................................................................................................................
62

 

10.4
PLAN
COMMUNICATIONS,
INTERPRETATION
AND CONSTRUCTION
..............................................................................
63

 

10.5
GENDER,
NUMBER
AND TENSE
......................................................................................................................................
63

10.6LEGAL
ACTION
................................................................................................................................................................
63

10.7PROHIBITION
AGAINST
DIVERSION
OF FUNDS
................................................................................................................
64

 

10.8
EMPLOYER'S
AND TRUSTEE'S
PROTECTIVE
CLAUSE.....................................................................................................
64

 

10.9
INSURER'S
PROTECTIVE
CLAUSE
...................................................................................................................................
64

 

10.10
RECEIPT
AND RELEASE
FOR PAYMENTS
......................................................................................................................
64

10.11ACTION
BY THE EMPLOYER
...........................................................................................................................................
64

 

10.12
NAMED
FIDUCIARIES
AND ALLOCATION
OF RESPONSIBILITY
......................................................................................
64

10.13APPROVAL
BY INTERNAL
REVENUE
SERVICE
...............................................................................................................
65

10.14PAYMENT
OF BENEFITS
..................................................................................................................................................
65

 

10.15
ELECTRONIC
MEDIA
........................................................................................................................................................
65

10.16PLAN
CORRECTION
.........................................................................................................................................................
65

 

10.17
NONTRUSTEED
PLANS....................................................................................................................................................
65

 

 

ARTICLE
XI 

PARTICIPATING
EMPLOYERS

 

11.1
ELECTION
TO BECOME
A PARTICIPATING
EMPLOYER
....................................................................................................
65

11.2REQUIREMENTS
OF PARTICIPATING
EMPLOYERS
............................................................................................................
66

 

11.3
DESIGNATION
OF AGENT.................................................................................................................................................
66

11.4EMPLOYEE
TRANSFERS
....................................................................................................................................................
66

 

11.5
PARTICIPATING
EMPLOYER'S
CONTRIBUTION
AND FORFEITURES
..................................................................................
66

11.6AMENDMENT
......................................................................................................................................................................
66

11.7DISCONTINUANCE
OF PARTICIPATION
..............................................................................................................................
66

11.8ADMINISTRATOR'S
AUTHORITY
........................................................................................................................................
67

 

11.9
PARTICIPATING
EMPLOYER
CONTRIBUTION
FOR AFFILIATE
............................................................................................
67

 

 

ARTICLE
XII

CASH
OR DEFERRED
PROVISIONS

 

12.1
FORMULA
FOR DETERMINING
EMPLOYER'S
CONTRIBUTION
..........................................................................................
67

 

12.2
PARTICIPANT'S
SALARY
DEFERRAL
ELECTION
.............................................................................................................
68

 

12.3ALLOCATION
OF CONTRIBUTIONS
AND FORFEITURES
...................................................................................................
72

12.4ACTUAL
DEFERRAL
PERCENTAGE
TESTS
.......................................................................................................................
72

12.5ADJUSTMENT
TO ACTUAL
DEFERRAL
PERCENTAGE
TESTS
...........................................................................................
74

12.6ACTUAL
CONTRIBUTION
PERCENTAGE
TESTS
................................................................................................................
77

12.7ADJUSTMENT
TO ACTUAL
CONTRIBUTION
PERCENTAGE
TESTS
....................................................................................
79

 

12.8401(k)
ADP TEST
SAFE HARBOR
PROVISIONS
................................................................................................................
81

    	 

    	 

    

 

12.9
QUALIFIED
AUTOMATIC
CONTRIBUTION
ARRANGEMENT
...............................................................................................
83

 

12.10
ADVANCE
DISTRIBUTION
FOR HARDSHIP
.....................................................................................................................
84

12.11IN-PLAN
ROTH
ROLLOVER
CONTRIBUTIONS
.................................................................................................................
85

 

 

ARTICLE
XIII

SIMPLE
401(K)
PROVISIONS

 

13.1
SIMPLE
401(k)
PROVISIONS
............................................................................................................................................
86

13.2DEFINITIONS......................................................................................................................................................................
86

 

13.3CONTRIBUTIONS
..............................................................................................................................................................
87

 

13.4
ELECTION
AND NOTICE
REQUIREMENTS
.........................................................................................................................
87

13.5VESTING
REQUIREMENTS
................................................................................................................................................
87

13.6TOP-HEAVY
RULES
.........................................................................................................................................................
87

 

13.7
NONDISCRIMINATION
TESTS
...........................................................................................................................................
87

 

 

ARTICLE
XIV

MULTIPLE
EMPLOYER
PROVISIONS

 

14.1
ELECTION
AND OVERRIDING
EFFECT
.............................................................................................................................
88

 

14.2
DEFINITIONS.....................................................................................................................................................................
88

14.3PARTICIPATING
EMPLOYER
ELECTIONS
..........................................................................................................................
88

 

14.4
HIGHLY
COMPENSATED
EMPLOYEE
STATUS
................................................................................................................
88

 

14.5
TESTING
..........................................................................................................................................................................
88

14.6TOP
HEAVY
PROVISIONS
................................................................................................................................................
89

 

14.7
COMPENSATION
..............................................................................................................................................................
89

14.8SERVICE............................................................................................................................................................................
89

 

14.9
REQUIRED
MINIMUM
DISTRIBUTIONS
...............................................................................................................................
89

14.10COOPERATION
AND INDEMNIFICATION
..........................................................................................................................
89

14.11INVOLUNTARY
TERMINATION
........................................................................................................................................
90

 

14.12
VOLUNTARY
TERMINATION
..........................................................................................................................................
90

    	 

    	 

    

 

 

ARTICLE
I

DEFINITIONS

 

As
used
in this
Plan,
the following
words
and phrases
shall
have
the meanings
set forth
herein
unless
a different
meaning
is clearly
required
by the
context:

 

1.1
"Account"
means any
separate
notational
account
established
and maintained
by the
Administrator
for each
Participant
under
the
Plan.
To the
extent
applicable,
a Participant
may have
any (or
all) of
the following
notational
Accounts:

 

(a)
"Combined
Account"
means the
account
representing
the Participant's
total
interest
under
the Plan
resulting
from
(1) the
Employer's
contributions
in the
case
of a Profit
Sharing
Plan
or Money
Purchase
Plan,
and (2)
the Employer
Nonelective
Contributions
in the
case
of a 401(k)
Profit
Sharing
Plan.
In addition,
Forfeitures
are part
of the
Combined
Account
to the
e xtent
they
are reallocated.
Separate
accountings
shall
be maintained
with
respect
to that
portion
of a Participant's
Account
attributable
to Employer
contributions
made
pursuant
to Section
12.1(a)(2)
and to
Employer
contributions
made
pursuant
to Section

12.1(a)(3).

 

(b)
"Elective
Deferral
Account"
means
the account
established
hereunder
to which
Elective
Deferrals
(including
a separate
accounting
for Catch-Up
Contributions)
are allocated.
Amounts
in the
Participant's
Elective
Deferral
Account
are nonforfeitable
when
made
and
are
subject
to the
distribution
restrictions
of Section
12.2(e).
The Elective
Deferral
Account
may consist
of the
sub-Accounts
listed
below.
Unless
specifically
stated
otherwise,
any reference
to a Participant's
Elective
Deferral
Account
will
refer
to both
of these
sub-Accounts.

 

(1)
"Pre-Tax
Elective
Deferral
Account"
means
the portion
of the
Elective
Deferral
Account
attributable
to Pre
-Tax
Elective

Deferrals
(i.e.,
Elective
Deferrals
that
are not
subject
to federal
income
tax at
the t ime
of their
deferral
to the
Plan).

 

(2)
"Roth
Elective
Deferral
Account"
means the
portion
of the
Elective
Deferral
Account
attributable
to Roth
Elective
Deferrals
(i.e.,
that
are subject
to federal
income
tax at
the time
of their
deferral
to t he Plan)
which
does not
include
amounts
attributable
to "in-Plan
Roth
rollover
contributions"
(as defined
in Section
12.11).
No contributions
other
than
Roth
Elective
Deferrals
and properly
attributable
earnings
will be
credited
to each Participant's
Roth
Elective
Deferral
Account.

 

(c)
"In-Plan
Roth
Rollover
Account"
means
the account
attributable
to a distribution
from
the Plan
that
is directly
rolled
over
within
this
Plan,
as described
in Section
12.11.
The
amount
thus
contributed
retains
the
characteristics
of the
source
Account
from
which
the amount
of the
"in-Plan
Roth
rollover
contribution"
(as defined
in Section
12.11)
was distributed
(except
for the
tax treatment
of such
amount
when
distributed
out of the
Plan).

 

(d)
"Qualified
Automatic
Contribution
Safe
Harbor
Account"
means
the account
established
hereunder
to which
Qualified
Automatic
Contribution
"ADP test
safe
harbor
contributions"
are allocated.
Amounts
in the
Qualified
Automatic
Contribution
Safe
Harbor
Account
are subject
to the
distribution
restrictions
of Section
12.2(e).

 

(e)
"Qualified
Matching
Contribution
Account"
means
the account
established
hereunder
to which
Qualified
Matching
Contributions
are allocated.
Amounts
in the
Qualified
Matching
Contribution
Account
are nonforfeitable
when
made
and are
subject
to the
distribution
restrictions
of Section
12.2(e).

 

(f)
"Qualified
Nonelective
Contribution
Account"
means the
account
established
hereunder
to which
Qualified
Nonelective
Contributions
are allocated.
Amounts
in the
Qualified
Nonelective
Contribution
Account
are nonforfeitable
when
made
and are
subject
to the
distribution
restrictions
of Section
12.2(e).

 

(g)
"Qualified
Voluntary
Employee
Contribution
Account"
means the
account
established
hereunder
to which
a Participant's
tax- deductible
qualified
voluntary
Employee
contributions
made
pursuant
to Section
4.9 are
allocated.

 

(h)
"Rollover
Account"
means
the account
established
hereunder
to which
amounts
transferred
from
a qualified
plan
(including
this
Plan)
or individual
retirement
account
in accordance
with Section
4.6 are
allocated.

 

(i)       "Transfer
Account"
means
the account
established
hereunder
to which
amounts
transferred
to this
Plan from
a direct
plan-to-plan
transfer
in accordance
with
Section
4.7 are
allocated.

 

(j)
       "Voluntary
Contribution
Account"
means the
account
established
hereunder
to which
after
-tax
voluntary
Employee
contributions
made
pursuant
to Section
4.8 are
allocated.
Amounts
recharacterized
as after
-tax
voluntary
Employee
contributions
pursuant
to Section
12.5 shall
remain
subject
to the
limitations
of Section
12.2.
Therefore,
a separate
accounting
sha ll be
maintained
with
respect
to that
portion
of the
Voluntary
Contribution
Account
attributable
to after
-tax
voluntary
Employee
contributions
made
pursuant
to Section
4.8.

 

1.2
"ACP"
means the
"Actual
Contribution
Percentage"
determined
pursuant
to Section
12.6(d).

 

1.3
"Act"
means
the Employee
Retirement
Income
Security
Act of
1974,
as it may
be amended
from
time to
time.

 

1.4
"ADP"
means the
"Actual
Deferral
Percentage"
determined
pursuant
to Section
12.4(d).

    	 

    	 

    

 

1.5
"Administrator"
means
the Employer
unless
another
person
or entity
has been
designated
by the
Employer
pursuant
to Section
2.2 to
administer
the Plan
on behalf
of the
Employer.
"Administrator"
also
includes
any Qualified
Termination
Administrator
(QTA)
that
has assumed
the responsibilities
of the
Administrator
in accordance
with
guidelines
set forth
by the
Department
of Labor.

 

1.6
"Adoption
Agreement"
means
the separate
agreement
which
is executed
by the
Employer
and sets
forth
the elective
provisions
of this
Plan
and Trust
as specified
by the
Employer.

 

1.7
"Affiliated
Employer"
means any
corporation
which
is a member
of a controlled
group
of corporations
(as defined
in Code

§414(b))
which
includes
the Employer;
any trade
or business
(whether
or not
incorporated)
which
is under
common
control
(as

defined
in Code
§414(c))
with
the Employer;
any organization
(whether
or not
incorporated)
which
is a member
of an affiliated
service
group
(as defined
in Code
§414(m))
which
includes
the Employer;
and any
other
entity
required
to be aggregated
with
the Emplo
yer pursuant
to Regulations
under
Code
§414(o).

 

1.8
"Affirmative
Election"
means
a Salary
Deferral
Agreement
submitted
by a Participant
to the
Administrator
in accordance
with
Section
12.2 that
provides
instructions
to defer
a specific
amount
of Compensation
(including
an affirmative
election
to defer
no amount)
as an Elective
Deferral
to the
Plan.
A Participant's
Affirmative
Election
is generally
effective
as of the
first
payr
oll period
which
follows
the payroll
period
in which
the Participant
made
the Affirmative
Election.
However,
a Participant
may make
an Affirmative
Election
which
is effective:
(a) for
the first
payroll
period
in which
he or she
becomes
a Participant
if the
Participant
mak es
an Affirmative
Election
within
a reasonable
period
following
the Participant's
b ecoming
eligible
to make
Elective
Deferrals
and before
the Compensation
to which
the
Election
applies
becomes
currently
available;
or (b)
for
the first
payroll
period
following
the eff
ective
date

of the
Automatic
Contribution
Arrangement
if the
Participant
makes
an Affirmative
Election
not later
than
the Automatic
Contribution

Arrangement's
effective
date.

 

1.9
"Alternate
Payee"
means an
alternate
payee
pursuant
to a qualified
domestic
relations
order
that
meets
the requirements
of

Code
§414(p).

 

1.10
"Anniversary
Date"
means
the last
day of
the Plan
Year.

 

1.11
"Annuity
Starting
Date"
means,
with
respect
to any
Participant,
the first
day of the
first
per iod
for which
an amount
is paid
as an annuity,
or, in the
case
of a benefit
not payable
in the
form of
an annuity,
the first
day on
which
all events
have
occurred
which
entitles
the Participant
to such
benefit.

 

1.12
"Automatic
Contribution
Arrangement"
means the
Automatic
Deferral
provisions
described
by Section
12.2
and, if applicable,
Section
12.9.

 

1.13
"Automatic
Deferral"
means
the amount
(if any)
that
a Participant
is deemed
to defer
in accordance
with
an Automatic
Contribution
Arrangement.
The effective
date
of an Employee's
Automatic
Deferral
will be
as soon
as practicable
after
the Employee
is subject
to Automatic
Deferrals
described
by Section
12.2(b)
or 12.9,
consistent
with
(a) applicable
law,
and (b)
the objec
tive of
affording
the Employee
a reasonable
period
of time
after
receipt
of the
notice
to make
an Affirmative
Election
(and,
if applicable,
an investment
election).
All Automatic
Deferrals
constitute
Elective
Deferrals.

 

1.14
"Beneficiary"
 means
the person
(or entity)
to whom
all or
a portion
of a deceased
Participant's
interest
in the
Plan
is payable,
subject
to the
restrictions
of Sections
6.2 and
6.6.

 

1.15
"Catch-Up
Contribution"
means an
Elective
Deferral
made
to the
Plan
by a Catch-Up
Eligible
Participant
that,
during
any taxable
year of
such
Participant,
exceeds
one of
the following:

 

(a)
a statutory
dollar
limit
on Elective
Deferrals
or "annual
additions"
as provided
in Code
§401(a)(30),
402(h),
403(b),
408,

415(c),
or 457(b)(2)
(without
regard
to Code
§457(b)(3)),
as applicable;
or

 

(b)
any Plan
limit
on Elective
Deferrals
other
than
a limit
described
in (a)
above;
or the
limit
imposed
by the
A DP test
under
Code
§401(k)(3)
which
Excess
Contributions
would
otherwise
be distributed
pursuant
to Section
12.5(b)
to a Highly
Compensated
Employee
who is
a Catch-Up
Eligible
Participant.

 

Catch-Up
Contributions
for a Participant
for a Participant's
taxable
year may
not exceed
the dollar
limit
on Catch-Up

Contributions
under Code
§414(v)
for the
Participant's
taxable
year.
The dollar
limit on
Catch-Up
Contributions
under
Code

§414(v)(2)(B)(i)
was $5,000
for taxable
years
beginning
in 2006.
After
2006, the
$5,000
is adjusted
by the
Secretary
of the
Treasury
for
cost-of-living
increases
under
Code
§414(v)(2)(C).
Any such
adjustments
shall
be in multiples
of $500.
Notwithstanding
the preceding,
different
dollar
limits
apply
to Catch-Up
Contributions
under
SIMPLE
401(k)
plans.

 

1.16
"Catch-Up
Eligible
Participant"
means
a Participant
who:

 

(a)
is eligible
to make
Elective
Deferrals
to the
Plan
pursuant
to Section
12.2;
and

 

(b)
will attain
age 50
or older
by the
end of
such taxable
year.

 

1.17
"Code"
means
the Internal
Revenue
Code
of 1986,
as it may
be amended
from
time
to time.

    	 

    	 

    

 

1.18
"Compensation"
means,
with
respect
to any
Partic
ipant,
the amount
determined
in accordance
with
the following
provisions,
except
as otherwise
provided
in the
Adoption
Agreement.

 

(a)
Base definition.
One of
the following,
as elected
in the
Adoption
Agreement:

 

(1)
Information
required
to be reported
under
Code
§§6041,
6051 and
6052 (W
ages,
tips
and other
compensation
as reported
on Form
W -2).
Compensation
means
wages,
within
the meaning
of Code
§3401(a),
and all
other
payments
of compensation
to an Employee
by the
Employer
(in the
course of
the Employer's
trade
or business)
for which
the Employer
is required
to furnish
the Employee
a written
statement
under Code
§§6041(d),
6051(a)(3)
and 6052.
Compensation
must
be determined
without
regard
to any
rules
under
Code
§3401(a)
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

§3401(a)(2)).

 

(2)
Code
§3401(a)
W ages.
Compensation
means an
Employee's
wages
within
the meaning
of Code
§3401(a)
for the
purposes
of 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
s ervices
performed
(such
as the
exception
for agricultural
labor
in Code
§3401(a)(2)).

 

(3)
415 safe
harbor
compensation.
Compensation
means
wages,
salaries,
for Plan
Years
beginning
after
December
31,

2008,
Military
Differential
Pay,
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
salespersons,
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:

 

(i)       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
to the
extent
such
contributions
are excludable
from
the Employee's
gross
income,
or any
distributions
from
a plan
of deferred
compensation;

 

(ii)
Amounts
realized
from
the exercise
of a nonqualified
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;

 

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

 

(iv)
Other
amounts
which
receive
special
tax benefits,
or contributions
made
by the
Employer
(whether
or not
under a salary
deferral
agreement)
towards
the purchase
of an annuity
contract
described
in Code
§403(b)
(whether
or not
the contributions
are actually
excludable
from
the gross
income
of the
Employee).

 

(b)
Earned
Income
for Self-Employed
Individual.
Notwithstanding
the foregoing,
Compensation
for any
Self-Employed
Individual
shall
be equal
to Earned
Income.
Furthermore,
the contributions
on behalf
of any
"owner
-Employee"
shall
be made
only
with
respect
to the
Earned
Income
for such
"owner-Employee"
which
is derived
from
the trade
or business
with
respect
to which
such
Plan
is established.
For this
purpose,
an "owner-Employee"
means a sole
proprietor
who owns
the entire
interest
in the
Employer
or a partner
(or member
in the
case of
a limited
liability
company
treated
as a partnership
or sole
proprietorship
for federal
income
tax purposes)
who owns
more
than
ten percent
(10%)
of either
the capital
interest
or the profits
interest
in t he Employer
and who
receives
income
for personal
services
from the
Employer.

 

(c)
Paid
during
"determination
period."
Compensation
shall
include
only
that
Compensation
which
is actually
paid
to the
Participant
during
the "determination
period."
Except
as otherwise
provided
in this
Plan,
the "determination
period"
is the
period
elected
by the
Employer
in the
Adoption
Agreement.
If the
Employer
makes
no election,
the "determination
period"
shall
be the
Plan
Year.

 

(d)
Inclusion
of deferrals.
Notwithstanding
the above,
unless
otherwise
elected
in the
Adoption
Agreement,
Compensation
shall
include
all of
the following
types
of elective
contributions
and all
of the
following
types
of deferred
compensation:

 

(1)
Elective
contributions
that
are made
by the
Employer
on behalf
of a Participant
that
are not
includible
in gross
income
under
Code §§125,
402(e)(3),
402(h)(1)(B),
402(k),
403(b),
and 132(f)(4).
However,
regardless
of any
election
in the
Adoption
Agreement
to the
contrary,
amounts
described
in the
preceding
sentence
will be included
in Compensation
for purposes
of making
Elective
Deferrals
or receiving
any Employer
matching
contributions
under
this
Plan. If
specified
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections),
amounts
under Code
§125
shall
be deemed
to include
any amounts
not available
to a Participant
in cash
in lieu
of group
health
coverage
because
the Participant
is unable
to certify
that
he or she
has other
health
coverage.
An amount
will be treated
as an amount
under
Code

§125
pursuant
to the
preceding
sentence
only
if the
Employer
does not
request
or collect
information
regarding
the

Participant's
other
health
coverage
as part
of the
enrollment
process
for the
health
pl an. Roth
Elective
Deferrals
will
be treated
as Pre-tax
Elective
Deferrals
for purposes
of determining
Compensation
if the
Employer
elects
to exclude
from
Compensation
the items
described
in this
Subsection
(d)(1).

 

(2)
Compensation
deferred
under
an eligible
deferred
compensation
plan
within
the meaning
of Code
§457(b).

    	 

    	 

    

 

(3)
Employee
contributions
(under governmental
plans)
described
in Code
§414(h)(2)
that
are picked
up by the
employing
unit
and thus
are treated
as Employer
contributions.

 

(e)
Post-severance
compensation
– Code §415
Regulations.
 The Administrator
shall
adjust
Compensation,
for Plan
Years
beginning
on or after
July 1,
2007 (or
such
other
date
as the
Employer
specifies
in the
Compensation
Section
of the
Adoption
Agreement),
for amounts
that
would
otherwise
be included
in the
definition
of Compensation
but are
paid
by the
later
of 2 1/2
months
after
a Participant's
severance
from
employment
with
the Employer
or the
end of
the Plan
Year
that
includes
the date
of the
Participant's
severance
from
employment
with
the Employer,
in accordance
with
the following,
as elected
in the

Compensation
Section
of the
Adoption
Agreement.
The preceding
time period,
however,
does not
apply with
respect
to payments

described
in Subsections
(4) and
(5) below.
Any other
payment
of compensation
paid
after
severance
of employment
that
is not described
in the
following
types
of compensation
is not considered
Compensation,
even
if payment
is made within
the time
period
specified
above.

 

(1)
Regular
pay.
Compensation
shall
include
regular
pay after
severance
of employment
(to the
extent
otherwise
included
in the
definition
of Compensation)
if:

 

(i)
       The
payment
is regular
compensation
for services
during
the Participant's
regular
working
hours,
or compensation
for services
outside
the Participant's
regular
working
hours
(such
as overtime
or shift
differential),
commissions,
bonuses,
or other
similar
payments;
and

 

(ii)
The payment
would
have
been paid
to the
Participant
prior
to a severance
from
employment
if the
Participant
had continued
in employment
with
the Employer.

 

(2)
Leave
cash-outs.
Compensation
shall
include
leave
cash-outs
if those
amounts
would
have
been included
in the
definition
of Compensation
if they
were
paid
prior
to the
Participant's
severance
from
employment
with
the Employer,
and the
amounts
are for
unused
accrued
bona
fide
sick,
vacation,
or other
leave,
but only
if the
Participant
would
have
been able
to use
the leave
if employment
had continued.

 

(3)
Deferred
compensation.
 Compensation
shall
include
deferred
compensation
if those
amounts
would
have
been included
in the definition
of Compensation
if they
were
paid
prior
to the
Participant's
severance
from
employment
with the
Employer,
and the
amounts
are received
pursuant
to a nonqualified
unfunded
deferred
compensation
plan,
but only
if the payment
would
have
been paid
if the Participant
had continued
in employment
with the
Employer
and only
to the
extent
the payment
is includible
in the
Participant's
gross
income.

 

(4)
Military
Differential
Pay.
Compensation
shall
include
payments
to an individual
who does
not currently
perform
services
for the
Employer
by reason
of qualified
military
service
(as that
term
is used
in Code
§414(u)(1))
to the
extent
those
payments
do not
exceed
the amounts
the individual
would
have
received
if the
individual
had continued
to perform
services
for the
Employer
rather
than
entering
qualified
military
service.

 

(5)
Disability
pay.
Compensation
shall
include
compensation
paid
to a Participant
who is
permanently
and totally
disabled,
as defined
in Code
§22(e)(3),
provided,
as elected
by the
Employer
in the
Compensation
Section
of the

Adoption
Agreement,
salary
continuation
applies
to all
Participants
who are
permanently
and totally
disabled
for a fixed
or

determinable
period,
or the
Participant
was not
a Highly
Compensated
Employee
immediately
before
becoming
disabled.

 

(f)
Dollar
limitation.
Compensation
in excess
of $200,000
shall
be disregarded
for all
purposes
other
than
for purposes
of Elective
Deferrals.
Such amount
shall
be adjusted
by the
Commissioner
for increases
in the
cost
-of-living
in accordance
with
Code
§401(a)(17)(B).
The cost-of-living
adjustment
in effect
for a calendar
year applies
to any
"determination
period"
beginning
with
or within
such
calendar
year.
If a "determination
period"
consists
of fewer
than
twelve
(12)
months,
the $200,000
annual
Compensation
limit
will be
multiplied
by a fraction,
the numerator
of which
is the
number
of months
in the
"determination
period,"
and the
denominator
of which
is twelve
(12).
In applying
any Plan
limitation
on the
amount
of matching
contributions
or any
Plan
limit
on Elective
Deferrals
which
are subject
to matching
contributions,
where
such
limits
are expressed
as a percentage
of Compensation,
the Administrator
may apply
the Compensation
limit
under
this
Section
annually,
even
if the
matching
contributi
on formula
is applied
on any
time interval
which
is less
than
the full
Plan
Year
or the
Administrator
may pro
rate
the Compensation
limit.

 

(g)
Noneligible
Employee.
If, in
the Adoption
Agreement,
the Employer
elects
to exclude
a class
of Employees
from
the Plan,
then
Compensation
for any
Employee
who becomes
eligible
or ceases
to be eligible
to participate
during
a "determination
perio
d" shall
only
include
Compensation
while
the Employee
is an Eligible
Employe
e. In addition,
with
respect
to the
determination
of any
matching
contributions,
the Plan
will disregard
Elective
Deferrals
made
while
the Participant
is not
eligible
for the
matchin
g contribution
component
of the
Plan.

 

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

 

1.19
"Contract"
or "Policy"
means any
life
insurance
policy,
retirement
income
policy,
or annuity
contract
(group
or individual)
issued
by the
Insurer.
In the
event
of any
conflict
between
the terms
of this
Plan
and the
terms
of any
contract
purchased
hereunder
, the Plan
provisions
shall
control.

 

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

    	 

    	 

    

 

 

1.21
"Directed
Trustee"
means
a Trustee
who,
with
respect
to the
investment
of Plan
assets,
is subject
to the
direction
of the
Administrator,
the Employer,
a properly
appointed
Investment
Manager,
a named
Fiduciary,
or Plan
Participant.
To the
extent
the Trustee
is a Directed
Trustee,
the Trustee
does not
have
any discretionary
authority
with
respect
to the
investment
of Plan
a ssets.
In addition,
the Trustee
is not
responsible
for the
propriety
of any
directed
investment
made
pursuant
to this
Section
and shall
not be
required
to consult
or advise
the Employer
regarding
the investment
quality
of any
directed
investment
held
under
the Plan.

 

1.22
"Discretionary
Trustee"
means
a Trustee
who has
the authority
and discretion
to invest,
manage
or control
any portion
of the

Plan
assets.

 

1.23
"Early
Retirement
Date"
means
the date
specified
in the
Adoption
Agreement
on which
a Participant
has satisfied
the requirements
specified
in the
Adoption
Agreement
(Early
Retirement
Age).
If elected
in the
Adoption
Agreement,
a Participant
shall
become
fully
Vested
upon satisfying
such
requirements
if the
Participant
is still
employed
at the
Early
Retirement
Age.

 

A
Participant
who severs
from
employment
after
satisfying
any service
requirement
but before
satisfying
the age
requirement
f or Early
Retirement
Age and
who thereafter
reaches
the age
requirement
contained
herein
shall
be entitled
to receive
benefits
under this
Plan
(other
than
any accelerated
vesting
and allocations
of Employer
contributions)
as though
the requirements
for Early
Reti
rement
Age had
been satisfied.

 

1.24
"Earned
Income"
means
the net
earnings
from
self-employment
in the
trade
or business
with
respect
to which
the Plan
is established,
for which
the personal
services
of the
individual
are a material
income-producing
factor.
Net earnings
will be
determined
without
regard
to items
not included
in gross
income
and the
deductions
allocable
to such
items.
Net earnings
are reduced
by contributions
made
by the
Employer
to a qualified
plan
to the
extent
deductibl
e under
Code
§404.
In addition,
net earnings
shall
be determined
with regard
to the
deduction
allowed
to the
taxpayer
by Code
§164(f).

 

If
Compensation
is defined
to exclude
any items
of Compensation
(other
than
safe
harbor
adjustments
permitted
under
the Code
§414(s)
Regulations
or limiting
Compensation
to periods
of Plan
participation),
then
for purposes
of determining
the Compensation
of a Self-Employed
Individual,
Earned
Income
shall
be adjusted
by multiplying
Earned
Income
by the
percentage
of total
compensation
that
is included
for the
eligible
Participants
who are
Nonhighly
Compensated
Employees.
That
percentage
is determined
by calculating
the percentage
of each
eligible
Nonhighly
Compensated
Participant's
total
Compensation
prior
to exc luding
any non-safe
harbor
adjustments
selected
in the
Adjustments
to Compensation
Section
of the
Adoption
Agreement
that
are included

in the
definition
of Compensation
and averaging
those
percentages.

 

1.25
"Effective
Date"
means
the date
this
Plan,
including
any restatement
or amendment
of this
Plan,
is effective.
W here
the Plan
is restated
or amended,
a reference
to Effective
Date
is the
effective
date
of the
restatement
or amendment,
except where
the context
indicates
a reference
to an earlier
Effective
Date.
If any
provision
of this
Plan
is retroactively
effective,
then
provisions
of this
Plan
generally
control.
However,
if a provision
of this
Plan
is different
from
the provision
of t he Employer's
prior
plan
document
and,
after
the retroactive
Effective
Date
of this
Plan,
the Employer
operated
in compliance
with
the provisions
of the
prior
plan,
then
the provision
of such
prior
plan
is incorporated
into
this
Plan
for purposes
of determ
ining
whether
the Employer
operated
the Plan
in compliance
with
its terms,
provided
operation
in compliance
with
the terms
of the
prior
plan
do not
violate
any qualification
requirements
under the
Code,
Regulations,
or other
IRS guidance.

 

The
Employer
may designate
special
effective
dates
for individual
provisions
under
the Plan
where
provided
in the
Adoption
Agreement
or under
Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections).
If one
or more
qualified
retirement
plans
have
been merged
into
this
Plan,
the provisions
of the
merging
plan(s)
will remain
in full
force
and effect
until
the effective
date
of the
plan
merger(s).

 

1.26
"Elective
Deferrals"
means
the Employer's
contributions
to the
Plan
that
are made
pursuant
to a Participant's
salary
deferral
election
in accordance
with
Section
12.2.
Elective
Deferrals
shall
be subject
to the
requirements
of Sections
12.2(d)
and 12.2(e)
and shall,
except
as otherwise
provided
herein,
be required
to satisfy
the nondiscrimination
requirements
of the
Code
§401(k)
Regulations.
The term
"Elective
Deferrals"
includes
Pre-Tax
Elective
Deferrals
and,
if permitted
by the
Plan,
Roth
Elective
Deferrals.

 

1.27
"Eligible
Automatic
Contribution
Arrangement"
(EACA)
means
an Automatic
Contribution
Arrangement
that
is intended
to comply
as such
for purposes
of Code
§414(w)
and that
therefore
complies
with
the Automatic
Deferral
provisions
described
i n the EACA
provisions
set forth
in Section
12.2(b).

 

1.28
"Eligible
Employee"
means
any Eligible
Employee
as elected
in the
Adoption
Agreement
and as
provided
herein.
W ith respect
to a volume
submitter
or non-standardized
Adoption
Agreement,
an individual
shall
not be
an Eligible
Employee
if such
individual
is not
reported
on the payroll
records
of the
Employer
as a common
law employee.
In particular,
it is expressly
intended
that
in dividuals
not
treated
as common
law employees
by the Employer
on its
payroll
records
and out-sourced
workers,
are not
Eligible
Employees
and
are excluded
from Plan
participation
even
if a court
or administrative
agency
determines
that such
individuals
are common
law employees
and not
independent
contractors.
However,
t he two preceding
sentences
shall
not apply
to partners
or other

Self-Employed
Individuals
unless
the Employer
treats
them
as independent
contractors.
Furthermore,
with
respect
to a volume
submitter
or non-standardized
Adoption
Agreement,
Employees
of an Affiliated
Employer
will not
be treated
as Eligible
Employees
prior
to the
date
the Affiliated
Employer
adopts
the Plan
as a Participating
Employer.

 

Employees
who became
Employees
as the
result
of a "Code
§410(b)(6)(C)
transaction"
will,
unless
otherwise
sp ecified
in the
Adoption
Agreement,
only
be Eligible
Employees
after
the expiration
of the
transition
period
beginning
on the
date
of the
tra nsaction
and
ending
on the
last
day of
the first
Plan
Year beginning
after
the date
of the
transaction.
A "Code
§410 (b)(6)(C)
transaction"
is an asset
or stock
acquisition,
merger,
or similar
transaction
involving
a change
in the
Employer
of the
Employees
of a trade
or business

    	 

    	 

    

 

that
is subject
to the
special
rules
set forth
in Code
§410(b)(6)(C).
However,
regardless
of any
election
made in
the Adoption
Agreement,
if a separate
entity
becomes
an Affiliated
Employer
as the
result
of a "Code
§410(b)(6)(C)
transaction,"
then
Empl oyees
of such
separate
entity
will
not be
treated
as Eligible
Employees
prior
to the
date
the ent
ity adopts
the Plan
as a Participating
Employer
or, with
respect
to a standardized
Adoption
Agreement,
if earlier,
the expiration
of the
transition
period
set forth
above.

 

If,
in the
Adoption
Agreement,
the Employer
elects
to exclude
union
employees,
then
Employees
whose
employment
is governed
by a collective
bargaining
agreement
between
the Employer
and "employee
representatives"
under which
retirement
benefits
were
the subject
of good
faith
bargaining
and if
two percent
(2%)
or less
of the
Employees
covered
pursuant
to that
agreement
are

professionals
as defined
in Regulation
§1.410(b)-9,
shall
not be
eligible
to participate
in this
Plan
to the
extent
of employment
covered

by
such
agreement,
unless
the agreement
provides
for coverage
in the
Plan (see
Section
4.1(d)).
For this
purpose,
the term
"employee
representatives"
does not
include
any organization
more
than
half
of whose
members
are employees
who are
owners,
officers,
or executives
of the
Employer.
If a Participant
performs
services
both
as a collectively
bargained
Employee
and as
a non - collectively
bargained
Employee,
then
the Participant's
Hours of
Service
in each
respective
category
are treated
separately.

 

If,
in the
Adoption
Agreement,
the Employer
elects
to exclude
nonresident
aliens,
then
Employees
who are
nonresident
aliens
(within
the meaning
of Code
§7701(b)(1)(B))
who received
no earned
income
(within
the meaning
of Code
§911(d)(2))
from
the Employer
which
constitutes
income
from
sources
within
the United
States
(within
the meaning
of Code
§861(a)(3))
shall
not be
eligible
to participate
in this
Plan.
In addition,
this
paragraph
shall
also
apply
to exclude
from
participation
in the
Plan
an Employ
ee who
is a nonresident
alien
(within
the meaning
of Code
§7701(b)(1)(B))
but who
receives
earned
income
(within
the meaning
of Code

§911(d)(2))
from
the
Employer
that
constitutes
income
from
sources
within
the United
States
(within
the meaning
of Code
§861( a)(3)),

if
all of
the Employee's
earned
income
from
the Employer
from
sources
within
the United
States
is exempt
from
United
States
income
tax
under
an applicable
income
tax convention.
The preceding
sentence
will
apply
only
if all
Employees
described
in the
prece
ding
sentence
are excluded
from
the Plan.

 

If,
in the
Adoption
Agreement,
the Employer
elects
to exclude
Part-Time/Temporary/Seasonal
Employees,
then
notwithstanding
any such
exclusion,
if any
such
excluded
Employee
actually
completes
or completed
a Year of
Service,
then
such
Employee
will cease
to be within
this
particular
excluded
class.

 

1.29
"Employee"
means
any person
who is
employed
by the
Employer.
The term
"Employee"
shall
also
inclu
de any
person
who is
an employee
of an Affiliated
Employer
and any
Leased
Employee
deemed
to be an Employee
as provided
in Code
§414(n)
or (o).

 

1.30
"Employer"
means
the entity
specified
in the
Adoption
Agreement,
any successor
which
shall
maintain
this
Plan
and any
predecessor
which
has
maintained
this
Plan.
In addition,
unless
the context
means
otherwise,
the term
"Employer"
shall
includ
e any Participating
Employer
which
shall
adopt
this
Plan.

 

1.31
"Excess
Aggregate
Contributions"
means,
with
respect
to any
Plan
Year,
the excess
of:

 

(a)
The aggregate
"contribution
percentage
amounts"
(as defined
in Section
12.6)
actually
made
on beh
alf of
Highly

Compensated
Participants
for such
Plan
Year
and taken
into
account
in computing
the numerator
of the
ACP,
over

 

(b)
The maximum
"contribution
percentage
amounts"
permitted
by the
ACP test
in Section
12.6
(determined
by hypothetical
ly reducing
contributions
made
on behalf
of Highly
Compensated
Participants
in order
of their
"contribution
percentages"
beginni
ng with
the highest
of such
percentages).

 

Such
determination
shall
be made
after
first
taking
into
account
corrections
of any
E xcess
Deferrals
pursuant
to Section
12.2 and
then
taking
into
account
adjustments
of any
Excess
Contributions
pursuant
to Section
12.5.

 

1.32
"Excess
Compensation"
means,
with
respect
to a Plan
that
is integrated
with
Social
Security
(permitted
disparity),
a Participant's
Compensation
which
is in excess
of the
integration
level
elected
in the
Adoption
Agreement.
However,
if Compens
ation
is based
on less
than
a twelve
(12) month
"determination
period,"
Excess
Compensation
shall
be determined
by reducing
the integration
level
by a fraction,
the numerator
of which
is the
number
of full
months
in the
short
period
and the
denominator
of which
is twelve
(12).
A "determination
period"
is not
less
than
twelve
(12)
months
solely
because
a Participant's
Compensation
does not
include
Compensation
paid
during
a "determination
period"
while
the Participant
was not
a Participant
in this
component
of th e Plan.

 

1.33
"Excess
Contributions"
 means,
with
respect
to any
Plan
Year,
the excess
of:

 

(a)
The aggregate
amount
of Employer
contributions
actually
made
on behalf
of Highly
Compensated
Participants
for such
Plan

Year
and taken
into
account
in computing
the numerator
of the
ADP, over

 

(b)
The maximum
amount
of such
contributions
permitted
by the
ADP test in
Section
12.4
(determined
by hypothetically
reducing
contributions
made
on behalf
of Highly
Compensated
Participants
in order
of the
actual
deferral
ratios,
beginning
with the
highest
of such
ratios).

 

In
determining
the amount
of Excess
Contributions
to be distributed
and/or
recharacterized
with
respect
to an affected
Highly
Compensated
Participant
as determined
herein,
such
amount
shall
be reduced
by any
Excess
Deferrals
previously
distributed
to such
affected
Highly
Compensated
Participant
for the
Participant's
t axable
year ending
with
or within
such
Plan
Year.

 

1.34
"Excess
Deferrals"
means,
with
respect
to any
taxable
year of
a Participant,
either
(a) those
elective
deferrals
within
the meaning
of Code
§§402(g)
or 402A
that
are made
during
the Participant's
taxable
year and
exceed
the dollar
limitation
under

Code
§402(g)
(including,
if applicable,
the dollar
limitation
on Catch-Up
Contributions
defined
in Code
§414(v))
for such
year;
or (b)

    	 

    	 

    

 

are
made
during
a calendar
year and
exceed
the dollar
limitation
under
Code §§402(g)
and 402A
(including,
if applicable,
the dollar
limitation
on Catch-Up
Contributions
defined
in Code §414(v))
for the
Participant's
taxable
year beginning
in such
calendar
year,
counting
only
Elective
Deferrals
made
under
this Plan
and any
other
plan,
contract
or arrangement
maintained
by the
Employer.

 

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

 

1.36
"Fiscal
Year"
means
the Employer's
accounting
year.

 

1.37
"Forfeiture"
means
that
portion
of a Participant's
Account
that
is not
Vested
and is
disp
osed
of in accordance
with the
provisions
of the
Plan. Unless
otherwise
elected
in the
Adoption
Agreement,
Forfeitures
occur
pursuant
to (a)
below.

 

(a)
A Forfeiture
will occur
on the
earlier
of:

 

(1)
The last
day of
the Plan
Year
in which
a Participant
incurs
five (5)
consecutive
1-Year
Breaks
in Service,
or

 

(2)
The distribution
of the
entire
Vested
portion
of the
Participant's
Account
of a Participant
who has
severed
employment
with
the Employer.
For
purposes
of this
provision,
if the
Participant
has a Vested
benefit
of zero,
then
such
Participant
shall
be deemed
to have
received
a distribution
of such
Vested
benefit
as of the
year in
which
the severance
of employment
occurs.
For this
purpose,
a Participant's
Vested
benefit
shall
not include:
(i) the
Participant's
Qualified
Voluntary
Employee
Contribution
Account,
and (ii)
the Participant's
Rollover
Account.

 

(b)
If elected
in the
Adoption
Agreement,
a Forfeiture
will occur
as of the
last
day of
the Plan
Year in
which
a Participant
incurs
five
(5) consecutive
1-Year
Breaks
in Service.

 

Regardless
of the
preceding,
if a Participant
is eligible
to share
in the
allocation
of Forfeitures
in the
year in
which
the Forfeiture
would
otherwise
occur,
then
the Forfeiture
will
not occur
until
the end
of the
first
Plan
Year for
which
the Participant
is not
eligible
to share
in the
allocation
of Forfeitures.
Furthermore,
the term
"Forfeiture"
shall
also
include
amounts
deemed
to be Forfeitures
pursuant
to any other
provision
of this
Plan.

 

1.38
"Former
Employee"
means
an individual
who has
severed
employment
with
the Employer
or an Affiliated
Employer.

 

1.39
"414(s)
Compensation"
means
Compensation
as defined
in Section
1.18.
However,
the Employer
may operationally
elect
to use
any other
definition
of compensation
for 414(s)
Compensation
provided
such
definition
satisfies
the nondiscrimination
requirements
of Code
§414(s)
and the
Regulations
thereunder.
For purposes
of applying
the ADP
and ACP
tests,
the period
for determining
414(s)
Compensation
must
be either
the Plan
Year or
the calendar
year ending
with
or within
the Plan
Year.
For al
l other
purposes,
the period
of determining
414(s)
Compensation
must
be the
Plan
Year or
another
twelve
(12)
month
period
of time
ending
in the
Plan
Year.
An Employer
may further
limit
the period
taken
into
account
to that
part
of the
determination
period
in whi
ch an Employee
was a Participant
in the
component
of the
Plan
being
tested.
The period
used
to determine
414(s)
Compensation
must
be applied
uniformly
to all
Participants
for the
Plan
Year.

 

1.40
"415
Compensation"
 means,
with
respect
to any
Participant,
such Participant's
(a) W ages,
tips
and other
compensation
on Form
W -2, (b)
Code
§3401(a)
wages
or (c) 415
safe
harbor
compensation
as elected
in the
Adoption
Agreement
for purposes
of Compensation
(and
as defined
in Subsections
1.18(a)(1)-(3)
respectively).
415 Compensation
shall
be based
on the
full
Limitation
Year regardless
of when
participation
in the
Plan
commences.
Furthermore,
regardless
of any election
made
in the
Adoption
Agreement,
415 Compensation
shall
include
any elective
deferral
(as defined
in Code
§§402(e)(3),
402(k)
and 402(h)(1)(B))
and any
amount
which
is contributed
or deferred
by the
Employer
at the
election
of the
Participant
and which
is not
includible
in the
gross
income
of the
Participant
by reason
of Code
§§125, 457,
and 132(f)(4).
In addition,
for years
beginning
after
December
31, 2008

Military
Differential
Pay is
treated
as 415 Compensation.

 

(a)
Deemed
125 compensation.
 If elected
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections),
amounts
under
Code
§125 shall
be deemed
to include
any amounts
not available
to a Participant
in cash
i n lieu of
group
health
coverage
because
the Participant
is unable
to certify
that
he or she
has other
health
coverage.
An amount

will
be treated
as an amount
under Code
§125 pursuant
to the
preceding
sentence
only
if the Employer
does not
request
or collect
information
regarding
the Participant's
other
health
coverage
as part
of the
enrollment
process
for the
health
plan.

 

(b)
Post-severance
compensation.
The Administrator
shall
adjust
415 Compensation,
for Limitation
Years
beginning
on or after
July 1,
2007, or
such
earlier
date
as the
Employer
specifies
in the
Compensation
Section
of the
Adoption
Agreement,
for amounts
that
would
otherwise
be included
in the
definition
of 415 Compensation
but are
paid
by the
later
of 2 1/2
months
after
a Participant's
severance
from
employment
with
the Employer
or the
end of
the Limitation
Year that
includes
the date
of the
Participant's
severance
from
employment
with
the Employer,
in accordance
with
the following,
as elected
in the
Compensation
Section
of the
Adoption
Agreement.
The preceding
time
period,
however,
does not
apply
with
respect
to payments
described
in Subsections
(4) and
(5) below.
Any other
payment
of compensation
paid
after
severance
of employment
that
is not
described
in the
following
types
of compensation
is not
considered
415 Compensation,
even
if payment
is made
within
the time
period
specified
above.

    	 

    	 

    

 

(1)
Regular
pay.
415 Compensation
shall
include
regular
pay after
severance
of employment
(to the
extent
otherwise
included
in the
definition
of 415
Compensation)
if:

 

(i)       The
payment
is regular
compensation
for services
during
the Participant's
regular
working
hours,
or compensation
for
services
outside
the Participant's
regular
working
hours
(such
as overtime
or shift
dif ferential),
commissions,
bonuses,
or other
similar
payments;
and

 

(ii)
The payment
would
have
been paid
to the
Participant
prior
to a severance
from
employment
if the
Participant
had continued
in employment
with
the Employer.

 

(2)
Leave
cash-outs.
415 Compensation
shall
include
leave
cash-outs
if those
amounts
would
have
been included
in the
definition
of 415
Compensation
if they
were
paid
prior
to the
Participant's
severance
from
employment
with
the Employer,
and
the amounts
are for
unused
accrued
bona
fide
sick,
vacation,
or other
leave,
but only
if the
Participant
would
have
been able
to use
the leave
if employment
had continued.

 

(3)
Deferred
compensation.
415 Compensation
shall
include
deferred
compensation
if those
amounts
would
have
been included
in the definition
of 415
Compensation
if they
were
paid
prior
to the
Participant's
severance
from
employment
with the
Employer,
and the
amounts
are received
pursuant
to a nonqualified
unfunded
deferred
compensation
plan,
but only
if the
payment
would
have
been paid
if the Participant
had continued
in employment
with the
Employer
and only
to the
extent
the payment
is includible
in the
Participant's
gross
income.

 

(4)
Military
Differential
Pay.
415 Compensation
shall
include
payments
to an individual
who does
not currently
perform
services
for the
Employer
by reason
of qualified
military
service
(as that
term
is used
in Code
§414(u)(1))
to the
extent
tho se
payments
do not
exceed
the amounts
the individual
would
have
received
if the
individual
had continued
to perform
services
for the
Employer
rather
than
entering
qualified
military
service.

 

(5)
Disability
pay.
415 Compensation
shall
include
compensation
paid
to a Participant
who is
permanently
and totally
disabled,
as defined
in Code
§22(e)(3),
provided,
as elected
by the
Employer
in the
Compensation
Section
of the
Adoption
Agreement,
salary
continuation
applies
to all
Participants
who are
permanently
and totally
disabled
for a fixed
or determinable
period,
or the Participant
was not a Highly
Compensated
Employee
immediately
before
becoming
disabled.

 

(c)
Administrative
delay
("the first
few weeks")
rule.
415 Compensation
for a Limitation
Year shall
generally
not include
amounts
earned
but not
paid
during
the Limitation
Year solely
because
of the
timing
of pay
periods
and pay
dates.
However,
if elected
in the
Compensation
Section
of the Adoption
Agreement,
415 Compensation
for a Limitation
Year shall
include
amounts
earned
but not paid
during
the Limitation
Year
solely
because
of the
timing
of pay periods
and pay
dates,
provided
the amount
s are paid
during
the first
few weeks
of the next
Limitation
Year,
the amounts
are included
on a uniform
and consistent
basis
with
respect
to all
similarly
situated
Participants,
and no
Compensation
is included
in more
than
one Limitation
Year.

 

(d)
Inclusion
of certain
nonqualified
deferred
compensation
amounts.
If this
is a PPA
restatement
and prior
to the
restatement
414(s)
Compensation
included
all items
includible
in compensation
under
Regulation
§1.415(c)
-2(b)
(Regulation

§1.415-2(d)(2)
under
the Regulations
in effect
for Limitation
Years
beginning
prior
to July
1, 2007),
then
415 Compensation
for

Limitation
Years
prior
to the
adoption
of this
restatement
shall
include
amounts
that
are includible
in the
gross
income
of a Participant
under
the rules
of Code
§409A
or Code
§457(f)(1)(A)
or because
the amounts
are constructively
received
by the
Participant.
For Plan
Years
beginning
on and
after
the Plan
Year in
which
this
restatement
is adopted,
the Plan
does not
prov
ide for
a definition
of 415 Compensation
including
all it
ems in Regulation
§1.415(c)-2(b).

 

(e)
Back pay.
Back
pay,
within
the meaning
of Regulations
§1.415(c)-2(g)(8),
shall
be treated
as Compensation
for the Limitation
Year to which
the back
pay relates
to the extent
the back pay
represents
wages
an d compensation
that
would
otherwise
be included
under
this
definition.

 

(f)
Dollar
limitation.
415 Compensation
will be
limited
to the
same
dollar
limitations
set forth
in Section
1.18(f)
adjusted
in such
manner
as permitted
under Code
§415(d).

 

(g)
Amendment.
Except
as otherwise
provided
herein,
if, in
connection
with
the adoption
of any
amendment,
the definition
of

415
Compensation
has been
modified,
then
for Plan
Years
prior
to the
Plan
Year which
includes
the adoption
date
of such
amendment,
415 Compensation
means
compensation
determined
pursuant
to the
terms
of the
Plan
then
in effect.

 

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

 

(a)
was a "five
percent
(5%) owner"
as defined
in Section
1.47(b)
at any
time during
the "determination
year"
or the "look
-back
year";
or

 

(b)
for the
"look-back
year"
had 415
Compensation
from
the Employer
in excess
of $80,000
and,
if elected
in the
Adoption
Agreement,
was in
the Top-Paid
Group
for the
"look-back
year."
The $80,000
amount
is adjusted
at the
same
time and
in the
same
manner
as under
Code
§415(d).
In applying
this
rule,
the Employer
may adopt
any rounding
or tie-breaking
rules
it desires,
so long
as such
rules
are reasonable,
nondiscriminatory,
and uniformly
and consistently
applied.

 

The
"determination
year"
means the
Plan
Year for
which
testing
is being
performed
and the
"look-back
year"
means
the immediately
preceding
twelve
(12)
month
period.
However,
if the
calendar
year data
election
is made
in the
Adoption
Agreement
, for

    	 

    	 

    

 

purposes
of (b)
above,
the "look-back
year"
shall
be the
calendar
year beginning
within
the twelve
(12) month
period
immediately
preceding
the "determination
year."

 

A
Highly
Compensated
Former
Employee
is based
on the
rules
applicable
t o determining
Highly
Compensated
Employee
status
as in
effect
for that
"determination
year,"
in accordance
with
Regulation
§1.414(q)
-1T, A-4
and IRS
Notice
97-45 (or
any superseding
guidance).

 

In
determining
who is
a Highly
Compensated
Employee,
Employees
who are
nonresident
aliens
and who
received
no earned
income
(within
the meaning
of Code
§911(d))
from
the Employer
constituting
United
States
source
income
within
the meaning
of Code

§861(a)(3)
shall
not be
treated
as Employees.
If a nonresident
alien
Em ployee
has U.S.
source income,
that
Employee
is treated
as satisfying
this
definition
if all
of such
Employee's
U.S.
source
income
from
the Employer
is exempt
from
U.S.
income
tax unde
r an applicable
income
tax treaty.
Additionally,
all Affiliated
Employers
shall
be taken
into
account
as a single
Employer
and Leased
Employees
within
the meaning
of Code
§§414(n)(2)
and 414(o)(2)
shall
be considered
Employees
unless
such Leased
Employees
are
covered
by a plan
described
in Code
§414(n)(5)
and are
not covered
in any
qualified
plan
maintained
by the
Employer.
The

exclusion
of Leased
Employees
for this
purpose
shall
be applied
on a uniform
and consistent
basis
for all
of the
Employer's
r etirement
plans.
Highly
Compensated
Former
Employees
shall
be treated
as Highly
Compensated
Employees
without
regard
to whether
they

performed
services
during
the "determination
year."

 

1.42
"Highly
Compensated
Participant"
 means
any Highly
Compensated
Employee
who is
eligible
to participate
in the
component
of the
Plan
being
tested.

 

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

 

Notwithstanding
(b) above,
(1) no
more
than
501 Hours
of Service
will be
credited
to an Employee
on account
of any
single
continuous
period
during
which
the Employee
performs
no duties
(whether
or not
such period
occurs
in a single
computation

period);
(2) an
hour for
which
an Employee
is directly
or indirectly
paid,
or entitled
to payment,
on account
of a period
during
which
no duties
are performed
is not
required
to be credited
to the
Employee
if such
payment
is made
or due under
a plan
maintained
solely
for the
purpose
of complying
with
applicable
workers'
compensation,
or unemployment
compensation
or disability
insurance
laws;
an d (3)
Hours
of Service
are not
required
to be credited
for a payment
which
solely
reimburses
an Employee
for medical
or medically
r elated
expenses
incurred
by the
Employee.
Furthermore,
for purposes
of (b)
above,
a payment
shall
be deemed
to be made
by or due
f rom the
Employer
regardless
of whether
such
payment
is made
by or due
from
the Employer
directly,
or indirectly
through,
among
ot hers,

a trust
fund,
or insurer,
to which
the Employer
contributes
or pays
premiums
and regardless
of whether
contributions
made
or due to

the
trust
fund,
insurer,
or other
entity
are for
the benefit
of particular
Employees
or are
on behalf
of a group
of Employees
in the
aggregate.

 

Hours
of Service
will be
credited
for employment
with
all Affiliated
Employers
and for
any individual
considered
to be a Leased
Employee
pursuant
to Code
§414(n)
or 414(o)
and the
Regulations
thereunder.
Furthermore,
the provisions
of Department
of Labor
Regulations
§2530.200b-2(b)
and (c)
are incorporated
herein
by reference.

 

Hours
of Service
will be
determined
using
the actual
hours
method
unless
one of
the methods
below
is elected
in the
Adoption
Agreement.
If the
actual
hours
method
is used
to determine
Hours
of Service,
an Employee
is credited
with
the actual
Hours
of Service
the Employee
completes
with
the Employer
or the
number
of Hours
of Service
for which
the Employee
is paid
(or entitle
d to payment).

 

If the
days
worked
method
is elected,
an Employee
will be
credited
with
ten (10)
Hours
of Service
if under
the Plan
such

Employee
would
be credited
with
at least
one (1)
Hour of
Service
during
the day.

 

If the
weeks
worked
method
is elected,
an Employee
will be
credited
with forty-five
(45) Hours
of Service
if under
the Plan
such

Employee
would
be credited
with
at least
one (1)
Hour of
Service
during
the week.

 

If
the semi-monthly
payroll
periods
worked
method
is elected,
an Employee
will be
credited
with
ninety-five
(95) Hours
of Service
if under the
Plan
such
Employee
would
be credited
with
at least
one (1)
Hour of Service
during
the semi
-monthly
payroll
period.

 

If
the months
worked
method
is elected,
an Employee
will be
credited
with
one hundred
ninety
(19 0)
Hours
of Service
if under
the
Plan
such Employee
would
be credited
with
at least
one (1)
Hour of
Service
during
the month.

 

If
the bi-weekly
payroll
periods
worked
method
is elected,
an Employee
will
be credited
with
ninety
(90) Hours
of Service
if under
the Plan
such
Employee
would
be credited
with
at least
one (1)
Hour of
Service
during
the bi-weekly
payroll
period.

    	 

    	 

    

 

1.44
"Insurer"
means
any legal
reserve
insurance
company
which
has issued
or shall
issue one
or more
Contracts
or Policies
under the
Plan.

 

1.45
"Investment
Manager"
means
a Fiduciary
as described
in Act
§3(38).

 

1.46
"Joint
and Survivor
Annuity"
means an
immediate
annuity
for the
life
of a Participant
with
a survivor
annuity
for the
life
of the
Participant's
Spouse
which
is not
less
than
fifty
percent
(50%),
nor more
than
one hundred
percent
(100%)
of the
amount
of th e annuity
payable
during
the joint
lives
of the
Participant
and the
Participant's
Spouse
which
can be
purchased
with
the Participant's
Vested
interest
in the
Plan
reduced
by any
outstanding
loan balances
pursuant
to Section
7.6.

 

1.47
"Key
Employee"
means
an Employee
as defined
in Code
§416(i)
and the
Regulations
thereunder.
Generally,
for purposes
of determining
top-heavy
status,
any Employee
or Former
Employee
(including
any deceased
Employee
as well
as each of
the Employee's
or Former
Employee's
Beneficiaries)
is considered
a Key Employee
if the Employee
or Former
Employee,
at any
time during
the Plan
Year that
contains
the "determination
date,"
has been
included
in one
of the
following
categories:

 

(a)
an officer
of the
Employer
(as that
term
is defined
within
the meaning
of the
Regulations
under
Code §416)
having
annual

415
Compensation
greater
than
$130,000
(as adjusted
under
Code §416(i)(1));

 

(b)
a "five
percent
(5%) owner"
of the
Employer.
"Five
percent
(5%)
owner"
means
any person
who owns
(or is
considered
as owning
within
the meaning
of Code
§318)
more
than
five
percent
(5%)
of the
value
of the
outstanding
stock
of the
Employer
or stock
possessing
more
than
five percent
(5%) of
the total
combined
voting
power
of all
stock
of the
Employer
or, in
the case
of an unincorporated
business,
any person
who owns
more
than
five
percent
(5%)
of the
capital
or profits
interest
in the
Employer;
and

 

(c)
a "one
percent
(1%) owner"
of the
Employer
having
annual
415 Compensation
from
the Employer
of more
than
$150,000.
"One
percent
(1%)
owner"
means
any person
who owns
(or is considered
as owning
within
the meaning
of Code
§318)
more
than
one percent
(1%) of
the value
of the
outstanding
stock
of the
Employer
or stock
possessing
more
than
one percent
(1%) of

the
total
combined
voting
power
of all
stock
of the
Employer
or, in
the case
of an unincorporated
busi ness,
any person
who owns

more
than
one percent
(1%)
of the
capital
or profits
interest
in the Employer.

 

In determining
percentage
ownership
hereunder,
employers
that
would
otherwise
be aggregated
under
Code
§§414(b),
(c), (m)

and
(o) shall
be treated
as separate
employers.
In determining
whether
an individual
has 415
Compensation
of more
than
$150,000,

415
Compensation
from
each employer
required
to be aggregated
under Code
§§414(b),
(c), (m)
and (o)
shall
be taken
into
accou
nt.

 

Notwithstanding
the foregoing,
for purposes
of determining
Participants
who are
entitled
to the
minimum
top -heavy
contribution,
the
determination
of Key
Employees
and Non-Key
Employees
will be
made
based
on the Plan
Year
(rather
than
the Plan
Year that
contains
the "determination
date")
for which
the top-heavy
contribution
is being
made.

 

1.48
"Late
Retirement
Date"
means
the date
of, or
the first
day of
the month
or the
Anniversary
Date
coinciding
with or
next following,
whichever
corresponds
to the
election
in the
Adoption
Agreement
for the
Normal
Retirement
Date,
a Participant's
ac tual
retirement
after
having
reached
the Normal
Retirement
Date.

 

1.49
"Leased
Employee"
means
any person
(other
than
an Employee
of the
recipient
Employer)
who,
pursuant
to an agreement
between
the recipient
Employer
and any
other
person
or entity
("leasing
organization"),
has performed
ser vices
for the
recipient
(or for
the recipient
and related
persons
determined
in accordance
with Code
§414(n)(6))
on a substantially
full
time basis
for a per
iod of
at least
one year
(unless
otherwise
elected
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections)),
and such
services
are performed
under primary
direction
or control
by the
recipient
Employer.
Contributions
or b enefits
provided
a Leased
Employee
by the
leasing
organization
which
are attributable
to services
performed
for the
recipient
Employer
shall
be treated
as provided
by the
recipient
Employer.
Furthermore,
Compensation
for a Leased
Employee
shall
only
include

compensation
from
the leasing
organization
that
is attributable
to services
performed
for th
e recipient
Employer.

 

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

 

1.50
"Limitation
Year"
means the
"determination
period"
used
to determine
Compensation.
However,
the Employer
may elect
a different
Limitation
Year in
Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections).
Al l qualified
plans
maintained
by the
Employer
must use
the same
Limitation
Year.
Furthermore,
unless
there
is a change
to a new
Limitation
Year,
the Limitation
Year will
be a twelve
(12) consecutive
month
period.
In the
case
of an initial
Limitation
Year,
the Limitation
Year will
be the
twelve
(12) consecutive
month
period
ending
on the
last
day of
the period
specified
in the
Adoption
Agreement.
If the
Limitation
Year
is amended
to a different
twelve
(12) consecutive
month
period,
the new
"Limitation
Year"
must
begin
on a date
within
the "Limitation
Year"
in which
the amendment
is made.
For Limitation
Years
beginning
on and
af ter
July 1,

2007,
the Limitation
Year may
only
be changed
by a Plan
amendment.
Furthermore,
if the
Plan
is terminated
effective
as of a d ate
other
than
the last
day of
the Plan's
Limitation
Year,
then
the Plan
is treated
as if the
Plan
had been
amended
to change
its Limitation
Year.

 

1.51
"Military
Differential
Pay"
means,
for any
Plan
or Limitation
Year
beginning
after
June 30, 2007,
any differential
wage
payments
made
to an individual
that
represents
an amount
which,
when
added
to the
individual's
military
pay, approximates
the amount
of compensation
that
was paid
to the
individual
while
working
for the
Employer.
Notwithstanding
the preceding
sentence,
for

    	 

    	 

    

 

Compensation
"determination
periods"
beginning
after
December
31, 2008,
an individual
receiving
a differential
wage
payment,
as defined
by Code
§3401(h)(2),
is treated
as an Employee
of the
Employer
making
the payment.

 

The
Plan
is not
treated
as failing
to meet
the requirements
of any
provision
described
in Code
§414(u)(1)(C)
(or corresponding
Plan
provisions,
including,
but not
limited
to, Plan
provisions
related
to the
ADP or
ACP test)
by reason
of any
contribution
or benefit
which
is based
on the
Military
Differential
Pay. The
preceding
sentence
applies
only
if all
Employees
of the
Employer
performing
service
in the
uniformed
services
described
in Code
§3401(h)(2)(A)
are entitled
to receive
differential
wage payments
(as def
ined
in Code
§3401(h)(2))
on reasonably
equivalent
terms
and,
if eligible
to participate
in a retirement
plan
maintained
by the
Employer,
to make
contributions
based
on the
payments
on reasonably
equivalent
terms
(taking
into
account
Code
§§410(b)(3),
(4),
and (5)).

 

1.52
"Nonelective
Contribution"
means
the Employer's
contributions
to the
Plan
other
than
Elective
Deferrals,
any Qualified
Nonelective
Contributions
and any
Qualified
Matching
Contributions.
Employer
matching
contributions
which
are not
Qualified
Matching
Contributions
shall
be considered
a Nonelective
Contribution
for purposes
of the
Plan.

 

1.53
"Nonhighly
Compensated
Employee/Participant"
means
any Employee/Participant
who is
not a Highly
Compensated
Employee.
However,
if pursuant
to Sections
12.4
or 12.6
the prior
year testing
method
is used
to calculate
the ADP
or the
ACP,
a Nonhighly
Compensated
Employee/Participant
shall
be determined
using
the definition
of Highly
Compensated
Employee
in effec
t for the
preceding
Plan
Year.

 

1.54
"Non-Key
Employee"
means any
Employee
or Former
Employee
(and such
Employee's
or Former
Employee's
Beneficiaries)

who
is not
a Key Employee.

 

1.55
"Normal
Retirement
Age"
means
the age
elected
in the
Adoption
Agreement
at which
time
a Participant's
Account
shall
be nonforfeitable
(if the
Participant
is employed
by the
Employer
on or after
that date).
For money
purchase
pension
p lans,
if the
Employer
enforces
a mandatory
retirement
age,
then
the Normal
Retirement
Age is
the lesser
of that mandatory
age or the
age specified
in the
Adoption
Agreement.
Furthermore,
effective
for Plan
Years
beginning
after
the adoption
of this
Plan,
t he Employer
may
not deem
the Social
Security
retirement
age (as
defined
in Code
§415(b)(8))
as the Normal
Retirement
Age for
purposes
of nondiscrimination
testing
under Code
§401(a)(4).

 

1.56
"Normal
Retirement
Date"
means
the date
elected
in the Adoption
Agreement.

 

1.57
"1-Year
Break
in Service"
means,
if the
Hour of
Service
method
is used,
the applicable
computation
period
that
is used
to determine
a Year
of Service
during
which
an Employee
or Former
Employee
has not
completed
more
than
500 Hours
of Service.
However,
if the
Employer
selected,
in the
Service
Crediting
Method
Section
of the
Adoption
Agreement,
to define
a Year of
Ser vice
as less
than
1,000
Hours
of Service,
then
the 500
Hours
of Service
in this
definition
of 1-Year
Break
in Service
shall
be proportionately
reduced.
Further,
solely
for the
purpose
of determining
whether
an Employee
has incurred
a 1-Year
Break
in Service,
Hours
of

Service
shall
be recognized
for "authorized
leaves
of absence"
and "maternity
and paternity
leaves
of absence."
For this
purpose,
Hours
of Service
shall
be credited
for the
computation
period
in which
the absence
from
work
begins,
only
if credit
therefore
is necessary
to prevent
the Employee
from
incurring
a 1-Year
Break
in Service,
or, in
any other
case,
in the
immediately
following
computation
period.
The Hours
of Service
credited
for a "maternity
or paternity
leave
of absence"
shall
be those
which
would
normally
have
been credited
but for
such
absence,
or, in
any case
in which
the Administrator
is unable
to determine
such
hours
normally
credited,
eight
(8) Hours
of Service
per day.
The total
Hours
of Service
required
to be credited
for a "maternity
or paternity
leave
of absence"
shall
not exceed
the number
of Hours
of Service
needed
to prevent
the Employee
from
incurring
a 1-Year
Break
in Service.

 

"Authorized
leave
of absence"
means
an unpaid,
temporary
cessation
from
active
employment
with
the Employer
pursuant
to an established
nondiscriminatory
policy,
whether
occasioned
by illness,
military
service,
or any
other
reason.

 

A "maternity
or paternity
leave
of absence"
means
an absence
from
work
for any
period
by reason
of the
Employee's
pregnancy,
birth
of the
Employee's
child,
placement
of a child
with
the Employee
in connection
with
the adoption
of such
child,
or any
a bsence
for the
purpose
of caring
for such
child
for a period
immediately
following
such
birth
or placement.

 

If
the elapsed
time
method
is elected
in the
Service
Crediting
Method
Section
of the
Adoption
Agreement,
then
a "1 -Year
Break
in Service"
means
a twelve
(12) consecutive
month
period
beginning
on the
severance
from
service
date
or any
anniversary
thereof
and ending
on the
next succeeding
anniversary
of such
date;
provided,
however,
that
the Employee
or Former
Employee
does not
perform
an Hour of
Service
for the
Employer
during
such
twelve
(12) consecutive
month
period.

 

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

 

1.59
"Participant
Directed
Account"
means
that
portion
of a Participant's
interest
in the
Plan
with
respect
to which
the Participant
has
directed
the investment
in accordance
with
the Participant
Direction
Procedures.

 

1.60
"Participant
Direction
Procedures"
means
such
instructions,
guidelines
or policies,
the terms
of which
are incorporated
herein,
as shall
be established
pursuant
to Section
4.10
and observed
by the
Administrator
and applied
and provided
to Participants
who

have
Participant
Directed
Accounts.

    	 

    	 

    

 

1.61
"Participating
Employer"
means an
Employer
which,
with
the consent
of the
"lead
Employer"
adopts
the Plan
pursuant
to Section
11.1 or
Article
XIV.
In addition,
unless
the context
means
otherwise,
the t erm
"Employer"
shall
include
any Participating
Employer
which
shall
adopt
this
Plan.

 

1.62
"Period
of Service"
means
the aggregate
of all
periods
of service
commencing
with
an Employee's
first
day of employment
or reemployment
with
the Employer
or an Affiliated
Employer
and ending
on the
first
day of a Period
of Severance,
or for benefit
accrual
purposes,
ending
on the
severance
from
service
date.
The first
day of
employment
or reemployment
is the
first
day the
Employe
e performs
an Hour
of Service.
An Employee
who incurs
a Period
of Severance
of twelve
(12)
months
or less
will
also
receive

service-spanning
credit
by treating
any such
period
as a Period
of Service
for purposes
of eligibility
and vesting
(but not
benefit

accrual).
For purposes
of benefit
accrual,
a Participant's
whole
year Periods
of Service
is equal
to the
sum of
all full
and partial
periods
of service,
whether
or not
such
service
is continuous
or contiguous,
expressed
in the
number
of whole
years
represent
ed by such
sum. For
this
purpose,
fractional
periods
of a year
will be
expressed
in terms
of days.

 

Periods
of Service
with
any Affiliated
Employer
shall
be recognized.
Furthermore,
Periods
of Service
with
any predecessor
employer
that
maintained
this
Plan
shall
be recognized.
Periods
of Service
with
any other
predecessor
employer
shall
be recog
nized
as elected
in the
Adoption
Agreement.
However,
for a standardized
Adoption
Agreement,
the recognition
of service
with
any other
employer
(1) is
limited
to the
period
which
does not
exceed
5 years immediately
preceding
the year
in which
an amendment
cred
iting
such
service
becomes
effective,
(2) must
be credited
to all
Employees
on a reasonably
uniform
basis,
and (3)
m ust otherwise
comply
with
Regulation
§1.401(a)(4)-5(a)(3).

 

In
determining
Periods
of Service
for purposes
of vesting
under the
Plan,
Periods
of Service
will be
excluded
as elected
in t he

Adoption
Agreement
and as
specified
in Section
3.5.

 

In
the event
the method
of crediting
service
is amended
from
the Hour
of Service
method
to the
elapsed
time
method,
an

Employee
will
receive
credit
for a Period
of Service
consisting
of:

 

(a)
A number
of years
equal
to the
number
of Years
of Service
credited
to the Employee
before
the computation
period
during
which
the amendment
occurs;
and

 

(b)
The greater
of (1)
the Periods
of Service
that
would
be credited
to the
Employe
e under
the elapsed
time method
for service
during
the entire
computation
period
in which
the transfer
occurs
or (2)
the service
taken
into
account
under the
Hour of
Service
method
as of the
date
of the
amendment.

 

In
addition,
the Employee
will receive
cr edit
for service
subsequent
to the
amendment
commencing
on the
day after
the last
day of
the computation
period
in which
the transfer
occurs.

 

1.63
"Period
of Severance"
means
a continuous
period
of time
during
which
an Employee
is not
employed
by the
Employer.
Such
period
begins
on the
date
the Employee
retires,
quits
or is discharged,
or if earlier,
the twelve
(12) month
anniversary
of the
date
on which
the Employee
was otherwise
first
absent
from
service.

 

In
the case
of an individual
who is
absent
from
work for
"maternity
or paternity"
reasons,
the twelve
(12) consecutive
month
period
beginning
on the
first
anniversary
of the
first
day of
such
absence
shall
not constit
ute a one
year Period
of Severance.
For purposes
of this
paragraph,
an absence
from
work for
"maternity
or paternity"
reasons
means
an absence
(a) by
reason
of the
pregnancy
of the
individual,
(b) by
reason
of the
birth
of a child
of the
individual,
(c) by reason
of the
placement
of a child
with the
individual
in connection
with
the adoption
of such
child
by such
individual,
or (d)
for purposes
of caring
for such
child
for a period
beginning
immediately
following
such
birth
or placement.

 

1.64
"Plan"
means this
instrument
hereinafter
referred
to as The
Retirement
Advantage,
Inc.
Defined
Contribution
Volume
Submitter
Plan
and Trust
(Basic
Plan
Document
#07 and
the Adoption
Agreement)
as adopted
by the
Employer,
including
all amendments
thereto
and any
appendix
which
is specifically
permitted
pursuant
to the
terms
of the
Plan.

 

1.65
"Plan
Year"
means
the Plan's
accounting
year as
specified
in the
Adoption
Agreement.
Unless
there
is a Short
Plan
Year,
the

Plan
Year
will be
a twelve-consecutive
month
period.

 

1.66
"Pre-Retirement
Survivor
Annuity"
means
an immediate
annuity
for the
life
of a Participant's
Spouse,
the payments
under which
must
be equal
to the
benefit
which
can be provided
with
the percentage,
as specified
in the
Adoption
Agreement,
of the
Participant's
Vested
interest
in the
Plan
as of the
date
of death.
If no election
is made
in the
Adoption
Agreement,
the percentage
shall
be equal
to fifty
percent
(50%).
Furthermore,
if less
than
one hundred
percent
(100%)
of the
Participant's
Vested
interest
in the
Plan
is used
to provide
the Pre-Retirement
Survivor
Annuity,
a proportionate
share
of each
of the
Participant's
Accounts
subject
to the

Pre-Retirement
Survivor
Annuity
shall
be used
to provide
the Pre-Retirement
Survivor
Annuity.

 

1.67
"Pre-Tax
Elective
Deferrals"
means
a Participant's
Elective
Deferrals
that
are not
includible
in the
Participant's
gross
income
at the
time
deferred.

 

1.68
"Qualified
Automatic
Contribution
Arrangement"
(QACA)
means an
automatic
contribution
arrangement
which
meets
the requirements
of Section
12.9.

 

1.69
"Qualified
Matching
Contribution"
(QMAC)
means any
Employer
matching
contributions
that
are made
pursuant
to

Sections
12.1(a)(2)
(if elected
in the
Adoption
Agreement),
12.5
and 12.7
or pursuant
to any
other
Plan
provision
which
provides
for such
contributions.

    	 

    	 

    

 

 

1.70
"Qualified
Nonelective
Contribution"
(QNEC)
means
the Employer's
contributions
to the
Plan
that
are made
pursuant
to

Sections
12.1(a)(4),
12.5 and
12.7
or pursuant
to any
other
Plan
provision
which
provides
for such
contributions.

 

1.71
"Regulation"
means
the Income
Tax Regulations
as promulgated
by the
Secretary
of the
Treasury
or a delegate
of the

Secretary
of the
Treasury,
and as amended
from
time to
time.

 

1.72
"Retirement
Date"
means
the date
as of which
a Participant
retires
for reasons
other
than
Total
and Permanent
Disability,
regardless
of whether
such
retirement
occurs
on a Participant's
Normal
Retirement
Date,
Early
Retirement
Date
or Late
Retirem
ent Date
(see Section
6.1).

 

1.73
"Roth
Elective
Deferrals"
means
a Participant's
Elective
Deferrals
that
are includible
in the
Participant's
gross
income
at the
time
deferred
and have
been irrevocably
designated
as Roth
Elective
Deferrals
at the
time of
the deferral.
Roth
Elective
Deferrals
shall
be subject
to the
requirements
of Sections
12.2(d)
and 12.2(e)
and shall,
except as
otherwise
provided
herein,
be requi
red to
satisfy
the nondiscrimination
requirements
of Regulation
§1.401(k)-1(b),
the provisions
of which
are incorporated
herein
by reference.
A Participant's
Roth
Elective
Deferrals
will be
maintained
in a separate
account
containing
only
the Participant's
Roth
Elect
ive Deferrals
and gains
and losses
attributable
to those
Roth
Elective
Deferrals.
In addition,
the Administrator
shall,
to the
extent
necessary
for proper
reporting,
separately
account
for any
"in-Plan
Roth
rollover
contributions"
(as defined
in Section
12.11)
that
are transferred
to a Participant's
Roth
Elective
Deferral
Account.
The p ortion
of a Participant's
Account
attributable
to "in-Plan
Roth
rollover
contributions"
is not
subject
to the
distribution
restrictions
of Section
12.2(e).

 

1.74
"Salary
Deferral
Agreement"
means
an agreement
between
a Participant
and the
Employer,
whereby
the Participant
elects
to reduce
Compensation
by a specific
dollar
amount
or percentage
and the
Employer
agrees
to contribute
such amount
into
the 401(
k) Plan.
A Salary
Deferral
Agreement
may require
that
an election
be stated
in specific
percentage
increments
(not greater
than
one percent
(1%) increments)
or in specific
dollar
amount
increments
(not greater
than
dollar
increments
that
could
exceed one
pe rcent
(1%)
of Compensation).

 

A
Salary
Deferral
Agreement
may not
be effective
prior
to the
later
of: (a)
the date
the Employee
becomes
a Participant;
(b) the
date
the Participant
agrees
(including
by automatic
consent)
to the
Salary
Deferral
Agreement;
or (c) the
date
the 401(k)
plan
is adopted
by the
Employer
or applicable
Participating
Employer.
A Salary
Deferral
Agreement
is valid
even
though
it is executed
by an Employee
before
he or she
actually
becomes
a Participant,
so long
as the
Salary
Deferral
Agreement
is not ef
fective
before
the date
the Employee
becomes
a Participant.
A Salary
Deferral
Agreement
may only
apply
to Compensation
that
becomes
currently
availab
le to the
Employee
after
the
effective
date
of the
Salary
Deferral
Agreement.

 

A
Salary
Deferral
Agreement
(or other
written
procedures)
must
designate
a uniform
period
during
which
an Employee
may change
or terminate
his or
her deferral
election
under
the Salary
Deferral
Agreement.
A Participant's
right
to change
or term
inate
a Salary
Deferral
Agreement
may not
be available
on a less
frequent
basis
than
once per
Plan
Year.

 

1.75
"Self-Employed
Individual"
means
an individual
who has
Earned
Income
for the
taxable
year from
the trade
or business
for which
the Plan
is established,
and, also,
an individual
who would
have
had Earned
Income
but for
the fact
that
the trade
or b usiness
had no
net profits
for the
taxable
year.
A Self-Employed
Individual
shall
be treated
as an Employee.

 

1.76
"Short
Plan
Year"
means,
if specified
in the
Adoption
Agreement
or as the
result
of an amendment,
a Plan
Year of
less
than
a twelve
(12) month
period.
If there
is a Short
Plan
Year,
the following
rules
shall
apply
in the
administration
of this
Plan.
In determining
whether
an Employee
has completed
a Year of
Service
(or Period
of Service
if the
elapsed
time
method
is used)
for benefit
acc rual
purposes
in the
Short
Plan
Year, the
number
of the
Hours
of Service
(or months
of service
if the
elapsed
time method
is used)
required
shall
be proportionately
reduced
based
on the
number
of days
(or months)
in the
Short
Plan
Year.
The determination
of whether
an Employee
has completed
a Year of
Service
(or Period
of Service)
for vesting
and eligibility
purposes
shall
be made
in accordance
with
Department
of Labor
Regulation
§2530.203-2(c).
In addition,
if this
Plan
is integrated
with
Social
Security,
then
the integration
level
shall
be proportionately
reduced
based
on the
number
of months
in the
Short
Plan
Year.

 

1.77
"Spouse"
means
a spouse
as determined
under
federal
tax law.
In addition,
with
respect
to benefits
or rights
not mandated
by law
(e.g.,
Section
6.2(e)(1)
with
respect
to death
benefits
in excess
of the
Pre-Retirement
Survivor
Annuity),
Spouse
also
includes
a spouse
as elected
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections).
The Employer
may also
elect,
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections),
to require
t hat a Participant
be married
for at
least
one (1)
year before
the Participant
is treated
as married
(and
having
a Spouse)
for all
purposes
of the
Plan
other
than
for purposes
of determining
eligible
hardship
distribution
expenses.

 

1.78
"Taxable
Wage
Base"
means,
with
respect
to any
Plan
Year,
the contribution
and benefit
base
under
Section
230 of the
Social

Security
Act at
the beginning
of such
Plan
Year.

 

1.79
"Terminated
Participant"
means a person
who has
been a Participant,
but whose
employment
has been
terminated
with
the Employer
(including
an Affiliated
Employer)
or applicable
Participating
Employer,
other
than
by death,
Total
and Permanent
Disability
or retirement.

 

1.80
"Top-Heavy
Plan"
means a plan
described
in Section
9.2(a).

 

1.81
"Top-Heavy
Plan
Year"
means
a Plan
Year during
which
the Plan
is a Top-Heavy
Plan.

    	 

    	 

    

 

1.82
"Top-Paid
Group"
shall
be determined
pursuant
to Code
§414(q)
and the
Regulations
thereunder
and generally
means the
top twenty
percent
(20%)
of Employees
who performed
services
for the
Employer
during
the applicable
year,
ranked
according
to the
amount
of 415
Compensation
received
from
the Employer
during
such
year.
All Affiliated
Employers
shall
be taken
into
account
as a single
employer,
and Leased
Employees
shall
be treated
as Employees
if required
pursuant
to Code
§414(n)
or (o).
Employees
who are
nonresident
aliens
who received
no earned
income
(within
the meaning
of Code
§911(d)(2))
from
the Employer
constituting
U nited
States
source income
within
the meaning
of Code
§861(a)(3)
shall not
be treated
as Employees.
Furthermore,
for the
purpose
of determining
the number
of Employees
in any
year,
the following
additional
Employees
may also
be excluded,
however,
such Employees
shall
still be
considered
for the
purpose
of identifying
the particular
Employees
in the
Top-Paid
Group:

 

(a)
Employees
with
less
than
six (6)
months
of service;

 

(b)
Employees
who normally
work
less
than
17 1/2
hours
per week;

 

(c) Employees
who normally
work
less
than
six (6)
months
during
a year;
and

 

(d)
Employees
who have
not yet
attained
age twenty-one
(21).

 

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

 

The
foregoing
exclusions
set forth
in this
Section
shall
be applied
on a uniform
and consistent
basis
for all
purposes
for wh
ich the

Code
§414(q)
definition
is applicable.
Furthermore,
in applying
such
exclusions,
the Employer
may substitute
any lesser
servi
ce, hours
or age.

 

1.83
"Total
and Permanent
Disability"
means,
unless
otherwise
specified
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections),
the inability
to engage
in any
substantial
gainful
activity
by reason
of any
medically
determinable
physical
or mental
impairment
that
can be
expected
to result
in death
or which
has lasted
or can
be expected
to last
for a
continuous
period
of not
less
than
twelve
(12) months.
The disability
of a Participant
shall
be determined
by a licensed
ph ysician.
However,
if the
condition
constitutes
total
disability
under
the federal
Social
Security
Acts,
the Administrator
may rely
upon such
determination
that
the Participant
is Totally
and Permanently
Disabled
for the
purposes
of this
Plan.
The determination
shall
be applied
uniformly
to all
Participants.

 

1.84
"Trustee"
means
any person
or entity
that
is named
in the
Adoption
Agreement
or has
otherwise
agreed
to serve
as Trustee,
or any
successors
thereto.
In addition,
unless
the context
means,
or the
Plan
provides,
otherwise,
the term
"Trustee"
shall
mean
the Insurer
if the
Plan
is fully
insured.

 

If
the sponsor
of this
prototype
or volume
submitter
practitioner
is a bank,
savings
and loan,
trust
company,
credit
union
or similar
institution,
a person
or entity
other
than
such
sponsor
or practitioner
(or its
affiliates
or subsidiaries)
may not
serve
as Trustee
without
the consent
of such
sponsor
or practitioner.

 

1.85
"Trust
Fund" means,
if the
Plan
is funded
with
a trust,
the assets
of the Plan
and Trust
as the same
shall
exist
from time
to time.

 

1.86
"Valuation
Date"
means
the date
or dates
specified
in the
Adoption
Agreement.
Regardless
of any
election
to the
contrary,
for purposes
of the
determination
and allocation
of earnings
and losses,
the Valuation
Date
shall
include
the Anniversary
Date
an d may
include
any other
date
or dates
deemed
necessary
or appropriate
by the
Administrator
for the
valuation
of Participants'
Accounts
during
the Plan
Year,
which
may include
any day
that
the Trustee
(or Insurer),
any transfer
agent
appointed
by the
Trustee
(or Insurer)
or the
Employer,
or any
stock
exchange
us ed by
such
agent,
are open
for business.

 

1.87
"Vested"
means
the nonforfeitable
portion
of any
Account
maintained
on behalf
of a Participant.

 

1.88
"Year
of Service"
means
the computation
period
of twelve
(12) consecutive
months,
herein
set forth,
and during
which
an Employee
has completed
at least
1,000
Hours
of Service
(unless
a lower
number
of Hours
of Service
is specified
in the Adoptio
n Agreement).

 

For
purposes
of eligibility
for participation,
the initial
computation
period
shall
begin
with
the date
on which
the Employee
firs
t performs
an Hour
of Service
(employment
commencement
date).
Unless
otherwise
elected
in the
Service
Crediting
Method
Section
of the
Adoption
Agreement,
the succeeding
computation
periods
shall
begin
on the
anniversary
of the
Employee's
employment
commencement
date.
However,
unless
otherwise
elected
in the
Adoption
Agreement,
if one
(1) Year
of Service
or less
is required
as

a condition
of eligibility,
then
the computation
period
after
the initial
computation
period
shall
shift
to the
current
Plan Year
whi ch includes
the anniversary
of the
date
on which
the Employee
first
performed
an Hour of
Service,
and subsequent
computation
per iods
shall
be the
Plan
Year.
If there
is a shift
to the
Plan Year,
an Employee
who is credited
with the
number
of Hours
of Service
to be credited
with a Year
of Service
in both
the initial
eligibility
computation
period
and the
first
Plan
Year which
commences
prior
to the
first
anniversary
of the
Employee's
initial
eligibility
computation
period
will be credited
with two
(2) Years
of Service
for purposes
of eligibility
to participate.

 

If
two (2)
Years
of Service
are required
as a condition
of eligibility,
a Participant
will only
have
completed
two (2)
Years
of Service
for
eligibility
purposes
upon completing
two (2)
consecutive
Years
of Service
without
an intervening
1-Year
Break
in Service
(referred
to as
the two
(2) 1-Year
Breaks
in Service
rule).

    	 

    	 

    

 

 

For
vesting
purposes,
and all
other
purposes
not specifically
addressed
in this
Section,
the computation
period
shall
be the
period
elected
in the
Service
Crediting
Method
Section
of the
Adopt
ion Agreement.
If no election
is made
in the
Service
Crediting
Method
Section
of the
Adoption
Agreement,
then
the computation
period
shall
be the
Plan
Year.

 

In determining
Years
of Service
for purposes
of vesting
under
the Plan,
Years
of Service
will be
e xcluded
as elected
in the

Adoption
Agreement
and as
specified
in Section
3.5.

 

Years
of Service
and 1-Year
Breaks
in Service
for eligibility
purposes
will be
measured
on the
same eligibility
computation
period.
Years
of Service
and 1-Year
Breaks
in Service
for vesting
purposes
will be
measured
on the
same vesting
computation
period.

 

Years
of Service
with
any Affiliated
Employer
shall
be recognized.
Furthermore,
Years
of Service
with
an y predecessor
employer
that
maintained
this
Plan
shall
be recognized.
Years
of Service
with
any other
employer
shall
be recognized
as elected
in the

Adoption
Agreement.
However,
for a standardized
Adoption
Agreement,
the recognition
of service
with
any oth
er employer
(1) is

limited
to the
period
which
does not
exceed
5 years
immediately
preceding
the year
in which
an amendment
crediting
such
servi
ce becomes
effective,
(2) must
be credited
to all
Employees
on a reasonably
uniform
basis,
and (3)
must
otherwis
e comply
with
Regulation
§1.401(a)(4)-5(a)(3).

 

In
the event
the
method
of crediting
service
is amended
from
the elapsed
time
method
to the
Hour of
Service
method,
an

Employee
will
receive
credit
for Years
of Service
equal
to:

 

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

 

(b)
In the
computation
period
which
includes
the date
of the
amendment,
a number
of Hours
of Service
(using
th e Hours
of Service
equivalency
method,
if any,
elected
in the
Adoption
Agreement)
to any
fractional
part
of a year
credited
to the
Emplo
yee under
this
Section
as of the
date
of the
amendment.

 

ARTICLE
II 

ADMINISTRATION

 

2.1
POWERS
AND RESPONSIBILITIES
OF THE
EMPLOYER

 

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

 

(b)
Funding
policy
and method.
The Employer
shall
establish
a "funding
policy
and method,"
i.e.,
it shall
determine
whether
the
Plan
has a short
run need
for liquidity
(e.g.,
to pay
benefits)
or whether
liquidity
is a long
run goal
and investment
gr owth
(and
stability
of same)
is a more
current
need,
or shall
appoint
a qualified
person
to do so.
If the
Trustee
(or Insurer)
has discretionary
authority,
the Employer
or its
delegate
shall
communicate
such
needs
and goals
to the
Trustee
(or Insurer),
who shall
coordin
ate such
Plan
needs
with
its investment
policy.
The communication
of such
a "funding
policy
and met
hod"
shall
not,
however,
constitute
a directive
to the
Trustee
(or Insurer)
as to the
investment
of the
Trust
Funds.
Such "funding
policy
and method"
shall
be consistent
with
the objectives
of this
Plan
and with
the requirements
of Title
I of the
Act.

 

(c)
Appointment
of Investment
Manager.
The Employer
may appoint,
at its
option,
one or
more Investment
Managers,
investment
advisers,
or other
agents
to provide
investment
direction
to the Trustee
(or Insurer)
with
respect
to any or
all of
the Plan
assets.
Such
appointment
shall
be given
by the
Employer
in writing
in a form acceptable
to the Trustee
(or Insurer)
and shall
specifically
identify
the Plan
assets
with respect
to which
the Investment
Manager
or other
agent
shall
have
the authority
to direct
the
investment.

 

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

 

2.2
DESIGNATION
OF ADMINISTRATIVE
AUTHORITY

 

The
Employer
may appoint
one or
more
Administrators.
If the
Employer
does not
appoint
an Administrator,
the Employer
will be
the Administrator.
Any person,
including,
but not
limited
to, the
Employees
of the
Employer,
shall
be eligible
to serve
as an Administrator.
Any person
so appointed
shall
signify
acceptance
by filing
written
acceptance
with
the Employer.
An Administrator
may resign
by delivering
a written
resignation
to the
Employer
or be removed
by the
Employer
by delivery
of writ
ten notice
of removal,
to take
effect
at a date
specified
therein,
or upon
delivery
to the
Administrator
if no date
is specified.
Upon
the resignation
or removal
of an
Administrator,
the Employer
may designate
in writing
a successor
to this
position.

    	 

    	 

    

 

 

2.3
ALLOCATION
AND DELEGATION
OF RESPONSIBILITIES

 

If
more
than
one person
is appointed
as Administrator,
then
the responsibilities
of each
Administrator
may be
specified
by the
Employer
and accepted
in writing
by each
Administrator.
If no such
delegation
is made
by the
Employer,
then
the Administrator
s may allocate
the responsibilities
among
themselves,
in which
event
the Administrators
shall
notify
the Employer
and the
Trustee
(or Insurer)
in writing
of such
action
and specify
the responsibilities
of each
Administrator.
The Trustee
(or Insurer)
thereafter
shall
accept

and
rely
upon
any documents
executed
by the
appropriate
Administrator
until
such
time as
the Employer
or the
Administrators
file with the
Trustee
(or Insurer)
a written
revocation
of such
designation.

 

2.4
POWERS
AND DUTIES
OF THE
ADMINISTRATOR

 

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

 

The
Administrator
shall
be charged
with
the duties
of the
general
administration
of the
Plan
and the
powers
necessary
to carr
y out such
duties
as set
forth
under
the terms
of the
Plan,
including,
but not
limited
to, the
following:

 

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

 

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

 

(c) to
compute,
certify,
and direct
the Trustee
(or Insurer)
with respect
to the
amount
and the
kind
of benefits
to which
any

Participant
shall
be entitled
hereunder;

 

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

Trust
Fund;

 

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

 

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

 

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

 

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

 

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

 

(j)
       to prepare
and implement
a procedure
for notifying
Participants
and Beneficiaries
of their
rights
to elect
Joint
and Survivor

Annuities
and Pre-Retirement
Survivor
Annuities
if required
by the
Plan,
Code
and Regulations
thereunder;

 

(k) to
assist
Participants
regarding
their
rights,
benefits,
or elections
available
under the
Plan;

 

(l)
       to act
as the
named
Fiduciary
responsible
for communicating
with
Participants
as needed
to maintain
Plan
compliance
with
Act §404(c)
(if the
Employer
intends
to comply
with
Act §404(c))
including,
but not
limited
to, the
receipt
and transmission
of Participants'
directions
as to the
investment
of their
Accounts
under
the Plan
and the
formation
of policies,
rules,
and procedures
pursuant
to which
Participants
may give
investment
instructions
with respect
to the
investment
of their
Accounts;
and

 

(m)
to determine
the validity
of, and
take
appropriate
action
with
r espect
to, any
"qualified
domestic
relations
order"
received
by it.

    	 

    	 

    

 

2.5
RECORDS
AND REPORTS

 

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

 

2.6
APPOINTMENT
OF ADVISERS

 

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

 

2.7
INFORMATION
FROM EMPLOYER

 

The
Employer
shall
supply full
and timely
information
to the
Administrator
on all
pertinent
facts
as the
Administrator
may require
in order
to perform
its functions
hereunder
and the
Administrator
shall
advise
the Trustee
(or Insurer)
of such
of the
forego
ing facts
as may
be pertinent
to the
Trustee's
(or Insurer's)
duties
under
the Plan.
The Administrator
may rely
upon
such
information
as is su
pplied
by the
Employer
and
shall
have
no duty
or responsibility
to verify
such
information.

 

2.8
PAYMENT
OF EXPENSES

 

All
reasonable
expenses
of administration
may be
paid
out of the
Plan
assets
unless
paid
by the
Employer.
Such expenses
shall
include
any expenses
incident
to the
functioning
of the
Administrator,
or any
person
or persons
retained
or appointed
by any
named
Fiduciary
incident
to the
exercise
of their
duties
under
the Plan,
including,
but not
limited
to, fees
of accountants,
counse
l, Investment
Managers,
agents
(including
nonfiduciary
agents)
appointed
for the
purpose
of assisting
the Administrator
or Trustee
(or Insu
rer)
in carrying
out the
instructions
of Participants
as to the
directed
investment
of their
Accounts
(if permitted)
and othe
r specialists
and their
agents,
the costs
of any
bonds
required
pursuant
to Act
§412,
and other
costs
of administering
the Plan.
In addition,
unless

specifically
prohibited
under
statute,
regulation
or other
guidance
of general
applicability,
the Administr
ator
may charge
to the
Account

of an
individual
Participant
a reasonable
charge
to offset
the cost
of making
a distribution
to the
Participant,
Beneficiary,
or Alternate

Payee.
If liquid
assets
of the
Plan
are insufficient
to cover
the fees
of the
Trustee
(or Insurer)
or the
Administrator,
then
Plan
assets
shall
be liquidated
to the
extent
necessary
for such
fees.
In the
event any
part
of the
Plan
assets
becomes
subject
to tax,
a ll taxes
incurred
will be
paid
from
the Plan
assets.
Until
paid,
the expenses
s hall
constitute
a liability
of the
Trust
Fund.

 

2.9
MAJORITY
ACTIONS

 

Except
where
there
has been
an allocation
and delegation
of administrative
authority
pursuant
to Section
2.3,
if there
is more than
one Administrator,
then
they
shall
act by
a majority
of their
number,
but may authorize
one or
more of
them
to sign
all papers
on their
behalf.

 

2.10
CLAIMS
PROCEDURES

 

(a)
Initial
Claim.
Claims
for benefits
under the
Plan
may be filed
in writing
with
the Administrator.
W ritten
or electronic
notice
of the
disposition
of a claim
shall
be furnished
to the
claimant
within
ninety
(90) days
(45 days
if the
claim
involves
disability
benefits
and disability
is not
based
on the
Social
Security
Acts)
after
the application
is filed,
or such
period
as is required
by applica
ble law
or Department
of Labor
regulation.
Any electronic
notification
shall comply
with
the standards
imposed
by Department
of La bor
Regulation
§2520.104b-1(c)(1)(i),
(iii)
and (iv)
or any
subsequent
guidance.
In the
event
the claim
is denied,
the reasons
for the
denial
shall
be specifically
set forth
in the
notice
in language
calculated
to be understood
by the
claimant,
pertinent
p rovisions
of the
Plan
shall
be cited,
and,
where
appropriate,
an explanation
as to how
the claimant
can perfect
the claim
will be
provided
.. In addition,
the claimant
shall
be furnished
with
an explanation
of the
Plan's
claims
review
procedure.

 

(b)
Claims
review.
Any Employee,
Former
Employee,
or Beneficiary
of either,
who has
been denied
a benefit
by a decision
of the
Administrator
pursuant
to Section
2.10 shall
be entitled
to request
the Administrator
to give
further
consideration
to the claim
by filing
with the
Administrator
a written
request.
Such
request,
together
with
a written
statement
of the
reasons
why the
cl aimant
believes
such
claim
should
be allowed,
shall
be filed with
the Administrator
no later
than sixty
(60) days
after
receipt
of the written
notification
provided
for in Section
2.10. A final
decision
as to the
allowance
of the
claim
shall
be made
by the
Administrator

within
sixty
(60) days
(45 days
if the
claim
involves
disability
benefits
and disability
is not
based
on the
Social
Security
Acts)
of receipt
of the
appeal
(unless
there
has been
an extension
of sixty
(60) days
(45 days
if the
claim
involves
disability
benefits
and disability
is not
based
on the
Social
Security
Acts)
due to special
circumstances,
provided
the delay
and the
special
circumstances
occasioning
it are
communicated
to the
claimant
within
the sixty
(60) day
period
(45 days
if the
claim
involves
disability
benefits
and disability
is not
based on
the Social
Security
Acts)).
Such communication
shall
be written
in a manner
calculated
to be understood
by the
claimant
and shall
include
specific
reasons
for the
decision
and specific
references
to th e pertinent
Plan provisions
on which
the decision
is based.
The communication
may be written
or electronic
(provided
the electronic
communication
complies
with
the standards
imposed
by Department
of Labor
Regulation
§2520.104b
-1(c)(1)(i),
(iii)
and (iv)
or any
subsequent
guidance).
Notwithstanding
the preceding,
to the
extent
any of the
time periods
specified
in this
Section
are amended
by law
or Department
of Labor
regulation,
then
the time
frames
specified
herein
shall
automatically
be changed
in accordance
with
such law
or regulation.

    	 

    	 

    

 

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

 

(d)
Deadline
to file
claim.
To be considered
timely
under the
Plan's
claims
procedures,
a claim
must
be filed
under Sections

2.10(a)
or (b)
above
within
one year
after
the claimant
knew
or reasonably
should
have
known
of the
principal
facts
upon whic
h the
claim
is based.
Knowledge
of all
facts
that
the Participant
knew or reasonably
should
have
known
shall
be imputed
to the
claimant
for the
purpose
of applying
this
deadline.

 

(e)
Exhaustion
of administrative
remedies.
The exhaustion
of the
claims
procedures
is mandatory
for resolving
every
claim
and
dispute
arising
under
this
Plan.
As to such
claims
and disputes:
(1) no
claimant
shall
be permitted
to commence
any legal
action
to recover
Plan
benefits
or to enforce
or clarify
rights
under the
Plan
under
Act §502
or §510 or
under any
other
provision
of law,
whether
or not
statutory,
until
the claims
procedures
set forth
in Subsections
(a) and
(b) above
have
been exhausted
in their
entirety;
and (2)
in any
such
legal
action
all explicit
and all
implicit
determinations
by the
Administrator
(including,
but not
limited
to, determinations
as to whether
the claim,
or a request
for a review
of a denied
claim,
was timely
filed)
shall
be a fforded
the maximum
deference
permitted
by law.

 

(f)
Deadline
to file
action.
No legal
action
to recover
Plan
benefits
or to enforce
or clarify
rights
under the
Plan
under
Act §502
or §510
or under
any other
provision
of law,
whether
or not
statut
ory,
may be brought
by any
claimant
on any
matter
pertaining
to this
Plan
unless
the legal
action
is commenced
in the
proper
forum
before
the earlier
of: (1)
30 months
after
the claimant
kn ew or
reasonably
should
have
known
of the
principal
facts
on which
the claim
is based,
or (2)
six months
after
the claimant
has exhausted
the claims
procedure
under this
Plan.
Knowledge
of all
facts
that
the Participant
knew or
reasonably
should
have
known
shall
be imputed
to every
claimant
who is
or claims
to be a Beneficiary
of the
Participant
or otherwise
claims
to derive
an entitlement
by reference
to the
Participant
for the
purpose
of applying
the previously
specified
periods.

 

(g)
Plan
Administrator
discretion;
court
review.
The Administrator
and all
persons
determining
or reviewing
claims
have
full
discretion
to determine
benefit
claims
under
the Plan.
Any interpretation,
determination
or other
action
of such
persons
shal l be
subject
to review
only
if it is
arbitrary
or capr
icious
or otherwise
an abuse
of discretion.
Any review
of a final
decision
or action
of the
persons
reviewing
a claim
shall
be based
only
on such
evidence
presented
to or considered
by such
persons
at the
time
the y made
the decision
that
is the
subject
of review.

 

ARTICLE
III

ELIGIBILITY

 

3.1
CONDITIONS
OF ELIGIBILITY

 

An
Eligible
Employee
shall
be eligible
to participate
hereunder
on the
date such
Employee
has satisfied
the conditions
of eligibility,
if any,
elected
in the
Adoption
Agreement.

 

3.2
EFFECTIVE
DATE
OF PARTICIPATION

 

(a)
General
rule.
An Eligible
Employee
who has
satisfied
the conditions
of eligibility
pursuant
to Section
3.1 shall
become
a Participant
effective
as of the
date
elected
in the
Adoption
Agreement.
Regardless
of any
election
in the
Adoption
Agreement
to the
contrary,
an Eligible
Employee
who has
satisfied
the maximum
age (21)
and service
requirements
( one (1)
Year (or
Period)
of Service
(or, with
respect
to contributions
other
than
Elective
Deferrals,
more than
one (1)
year if full
and immediate
vesting))
and who
is otherwise
entitled
to participate,
will become
a Participant
no later
than
the earlier
of (1)
six (6)
months
after
such
requirements
are satisfied,
or (2)
the first
day of
the first
Plan
Year
after
such
requ
irements
are satisfied,
unless
the Employee
separates
from
service
before
such
participation
date.

 

(b)
Rehired
Employee.
If an Eligible
Employee
is not
employed
on the date
determined
pursuant
to (a) above,
but is
reemployed
before
a 1-Year
Break in
Service
has occurred,
then
such
Eligible
Employee
shall
become
a Participant
on the date
of reemployment
or, if
later,
the date
that
the Employee
would
have otherwise
entered
the Plan
had the
Employee
not terminate
d employment.
If such
Employee
incurs
a 1-Year
Break
in Service,
then
eligibility
will be
determined
under the
1-Year
Break in
Service
rules
set forth
in Section
3.5.

 

(c)
Recognition
of predecessor
service.
Unless
specifically
provided
otherwise
in the
Adoption
Agreement,
an Eligible
Employee
who satisfies
the Plan's
eligibility
requirement
conditions
by reason
of recognition
of service
with
a predecessor
employer
will become
a Participant
as of the
day the
Plan credits
service
with
a predecessor
employer
or, if
later,
the date
the Employee
would
have
otherwise
entered
the Plan
had the
service
with
the predecessor
employer
been service
with
the Employer.

 

(d)
Noneligible
to eligible
class.
If an Employee,
who has
satisfied
the Plan's
eligibility
requirements
and would
otherwise

have
become
a Participant,
shall
go from
a classification
of a noneligible
Employee
to an Eligible
Employee,
such
Employee
sh all
become
a Participant
on the
date
such
Employee
becomes
an Eligible
Employee
or, if
later,
the date
that
the Employee
would
have
otherwise
entered
the Plan
had the
Employee
always
been an
Eligible
Employee.

 

(e)
Eligible
to noneligible
class.
If an Employee,
who has
satisfied
the Plan's
eligibility
requirements
and would
otherwise
become
a Participant,
shall
go from
a classification
of an Eligible
Employee
to a noneligible
class
of Employees,
such
Employ
ee shall
become
a Participant
in the
Plan
on the
date such
Employee
again
becomes
an Eligib
le Employee,
or, if
later,
the date
that

    	 

    	 

    

 

the
Employee
would
have
otherwise
entered
the Plan
had the
Employee
always
been an
Eligible
Employee.
However,
if such
Employee
incurs
a 1-Year
Break
in Service,
eligibility
will be
determined
under
the 1-Year
Break
in Service
rules
set forth
in Section
3.5.

 

(f)
Matching
contributions.
 W ith respect
to the
determination
of any
matching
contributions,
the Plan
will
disregard
Elective
Deferrals
made while
a Participant
is not
eligible
for the
matching
contribution
component
of the
Plan
unless
otherwise
elected
in the
Adoption
Agreement.

 

3.3
DETERMINATION
OF ELIGIBILITY

 

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

 

3.4
TERMINATION
OF ELIGIBILITY

 

In
the event
a Participant
shall
go from
a classification
of an Eligible
Employee
to an ineligible
Employee,
such
Participant
shall
continue
to vest
in the
Plan
for each
Year
of Service
(or Period
of Service,
if the
elapsed
time method
is used)
completed
while
an ineligible
Employee,
until
such
time as
the Participant's
Account
is forfeited
or distributed
pursuant
to the
terms
of the
Pl an. Additionally,
the Participant's
interest
in the
Plan
shall
continue
to share
in the
earnings
of the
Trust
Fu nd in
the
same manner
as Participants.

 

3.5
REHIRED
EMPLOYEES
AND 1-YEAR
BREAKS
IN SERVICE

 

(a)
Rehired
Participant/immediate
re-entry.
If any
Former
Employee
who
had
been a Participant
is reemployed
by the
Employer,
then
the Employee
shall
become
a Participant
as of the
reemployment
date,
unless
the Employee
is not
an Eligible
Employee,
the Employee
does not
satisfy
the eligibility
conditions
taking
into
account
prior
service
to the
extent
such
prior
service
is not
disregarded
pursuant
to Section
3.5(d)
or (e)
below.
If such
prior
service
is disregarded,
then
the rehired
Eligible
E mployee
shall
be treated
as a new
hire.

 

(b)
Rehired
Eligible
Employee
who satisfied
eligibility.
If any Eligible
Employee
had satisfied
the Plan's
eligibility
requirements
but,
due to a severance
of employment,
did not
become
a Participant,
then
such Eligible
Employee
shall
become
a Participant
as of the
later
of (1)
the
entry
date
on which
he or she
would
have
entered
the Plan
had there
been no
severance
of employment,
or (2)
the date
of his
or her
re-employment.
Notwithstanding
the preceding,
if the
rehired
Eligible
Employee's
prior
service
is disregarded
pursuant
to Section
3.5(d)
or (e)
below,
then
the rehired
Eligible
Employee
shall
be treated
as a new
hire.

 

(c)
Rehired
Eligible
Employee
who had
not satisfied
eligibility.
If any
Eligible
Employee
who had
not satisfied
the Plan's
eligibility
requirements
is rehired
after
severance
from
employment,
then
such Eligible
Employee
shall
become
a Participant
i n the Plan
in accordance
with
the eligibility
requirements
set forth
in the
Adoption
A greement
and the
Plan.
However,
in applying

any
shift
in an eligibility
computation
period,
the Eligible
Employee
is not
treated
as a new
hire
unless
prior
service
is di sregarded

in
accordance
with
Section
3.5(d)
or (e)
below.

 

(d)
Reemployed
after
five
(5) 1-Year
Breaks
in Service
("rule
of parity"
provisions).
 If any
Employee
is reemployed
after
five
(5) 1-Year
Breaks
in Service
has occurred,
Years
of Service
(or Periods
of Service
if the
elapsed
time
method
is being
used)
shall
include
Years
of Service
(or Periods
of Service
if the
elapsed
time method
is being
used)
prior
to the
five (5)
1 -Year
Breaks
in Service
subject
to the
rules
set forth
below.
The Employer
may elect
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections)
to make
the provisions
of this
paragraph
inapplicable
for purposes
of eligibil
ity and/or
vesting.

 

(1)
In the
case
of a Former
Employee
who under
the Plan
does not
have
a nonforfeitable
right
to any
interest
in the
Plan
resulting
from
Employer
contributions,
Years
of Service
(or Periods
of Service)
before
a period
of 1 -Year
Breaks
in Service
will
not be
taken
into
account
if the
number
of consecutive
1-Year
Breaks
in Service
equals
or exceeds
the greater
of (i)

five
(5) or
(ii)
the aggregate
number
of pre-break
Years
of Service
(or Periods
of Service).
Such
aggregate
number
of Years

of
Service
(or Periods
of Service)
will not
include
any Years
of Service
(or Periods
of Service)
disregarded
under the
preceding
sentence
by reason
of prior
1-Year
Breaks
in Service;

 

(2)
A Former
Employee
who has
not had
Years
of Service
(or Periods
of Service)
before
a 1-Year
Break
in Service
disregarded
pursuant
to (1)
above,
shall
participate
in the
Plan
as of the
date
of reemployment,
or if later,
as of the
date
the Former
Employee
would
otherwise
enter
the Plan
pursuant
to Sections
3.1 and
3.2 taking
into
account
all service
not disregarded.

 

(e)
One-Year
Hold-Out
Rule.
If elected
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections),
the "one-year
hold-out"
rule under
Code
§410(a)(5)(C)
applies.
Under
this
rule,
a Participant
who has
severed
employment
will incur
a suspension
of participation
in the
Plan
after
incurring
a 1-Year
Break
in Service
and the
Plan
disregards

a Participant's
service
completed
prior
to a 1-Year
Break
in Service
until
the Participant
completes
one Year
of Service
following
the 1-Year
Break
in Service.
The Plan
suspends
the Participant's
participation
in the
Plan
as of the
first
day of
the eligibility
computation
period
following
the eligibility
computation
period
in which
the Participant
incurs
the 1-Year
Break
in Service.

    	 

    	 

    

 

(1)
Completion
of one
Year
of Service.
If a Participant
completes
one Year
of Service
following
a 1-Year
Break
in Service,
the Plan
restores
the Participant's
pre-break
service
retroactively
to the
first
day of
the eligibility
computation
period
in which
the Participant
first
completes
one Year
of Service
following
the 1-Year
Break
in Service.

 

(2)
Eligibility
computation
period.
The Administrator
measures
the initial
eligibility
computation
period
under
this
Subsection
from
the date
the Participant
first
receives
credit
for an
Hour of
Service
following
the 1-Year
Break
in Service.
The Administrator
measures
any subsequent
eligibility
computation
periods,
if necessary,
in a manner
consistent
with
the eligibility
computation
periods,
using
the re-employment
commencement
date
in determining
the anniversary
of the
date
of hire,
if applicable.

 

(3)
Application
to Employee
who did
not enter.
The Administrator
also
will apply
the one-year
hold-out
rule,
if applicable,
to an Employee
who satisfies
the Plan's
eligibility
conditions,
but who incurs
a separation
from
service
and a

1-Year
Break
in Service
prior
to becoming
a Participant.

 

(4)
No restoration
under
two (2)
1-Year
Breaks
in Service
rule.
The Administrator
in applying
this Subsection
does not
restore
any service
disregarded
under the
two (2)
1-Year
Breaks
in Service
rule in Section
1.88.

 

(5)
No application
to Elective
Deferrals.
The Administrator
will
not apply
the provisions
of this
Subsection
with
respect
to eligibility
to make
Elective
Deferrals
under the
Plan.

 

(6)
USERRA.
An Employee
who has
completed
qualified
military
service
and who
the Employer
has rehired
under
the Uniformed
Services
Employment
and Reemployment
Rights
Act of
1994,
as amended
(USERRA),
does not
incur
a 1-Year
Break in
Service
under the Plan
by reason
of the
period
of such
qualified
military service.

 

(f)
Vesting
after
five
(5) 1-Year
Breaks in
Service.
If a Participant
incurs
five (5)
consecutive
1-Year
Breaks
in Service,
the Vested
portion
of such
Participant's
Account
attributable
to pre-break
service
shall
not be
increased
as a result
of post-break
service.
In such
case,
separate
accounts
will be
maintained
as follows:

 

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

 

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

 

(g)
Buyback
provisions.
If any
Former
Employee
who had
been a Participant
is reemployed
by the
Employer
before
five (5)
consecutive
1-Year
Breaks
in Service,
and such
Participant
had received
a distribution
of the
entire Vested
interest
prior
to reemployment,
then the
forfeited
account
shall
be reinstated
only
if the
Participant
repays
the full
amount
which
had been
distributed
(including
amounts
from Accounts
that
were fully
Vested
such
as the Elective
Deferral
Account).
The Employer,
may, however,
on a uniform
and nondiscriminatory
basis,
only
require
the Participant
to repay
amounts
that
relate
to the Account
t hat was
not fully
Vested.
Such
repayment
must
be made
before
the earlier
of five
(5) years
after
the first
date on
which
the Participant
is subsequently
reemployed
by the Employer
or the
close
of the first
period
of five
(5) consecutive
1-Year Breaks
in Service
commencing
after
the distribution.
If a distribution
occurs
for any reason
other
than
a severance
of employment,
the time
for repayment
may not
end earlier
than five
(5) years
after
the date
of distribution.
If the
Participant
repays
the distribution
with after-tax
amounts,
such
amounts
are not
after-tax
voluntary
Employee
contributions
subject
to the ACP
Test
set forth
in

Section
12.6.

 

In
the event
the Participant
repays
the full
amount
distributed,
the undistributed
forfeited
portion
of the
Participant's
Acc ount
must be
restored
in full,
unadjusted
by any
gains
or losses
occurring
subsequent
to the
Valuation
Date
preceding
the distribution.
The source
for such
reinstatement
may be
Forfeitures
occurring
during
the Plan
Year.
If such
source
is insufficient,
then
the Employer
will contribute
an amount
which
is sufficient
to restore
the Participant's
Account,
provided,
however,
that
if a discretionary
contribution
is made
for such
year,
such
contribution
will first
be applied
to restore
any such
accounts
and th e remainder
shall
be allocated
in accordance
with the
terms
of the
Plan.
If a non-Vested
Participant
was deemed
to have
received

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

 

(h)
Waiver
of allocation
or contribution
conditions.
 If the
Employer
elects
in the
Adoption
Agreement
to waive
allocations
or contributions
due to retirement
(early
or normal
r etirement),
then
a Participant
shall
only
be entitled
to one
such
waiver.
Accordingly,
if a Participant
retires
and allocation
or contribution
conditions
are waived,
then
the Plan
will not
waive
the allocation
or contribution
conditions
if the
Participant
is rehired
and then
retires
again.

 

3.6
ELECTION
NOT TO
PARTICIPATE

 

(a)
Prototype
plans.
If this
is a prototype
plan,
then
an Employee
is not
permitted
to elect
not to
participate
in the
Plan.
Notwithstanding
the preceding,
in case
of a non-standardized
Adoption
Agreement,
any irrevocable
elections
not to
participate
in any
component
of this
Plan
shall
remain
in effect
provided
such
elections
were
made prior
to the
date
of the
adoption
of this
restatement.

 

(b)
Volume
submitter
plan.
If this
is a volume
submitter
plan,
then
an Employee
may, subject
to the
approval
of the
Employer,
elect
voluntarily
not to participate
in any
component
of the Plan
before
the Employee
first
becomes
eligible
to participate
in any qualified
plan
(subject
to Code
§401(a))
maintained
by the
Employer.
Such election
must
be made
upon inception
of the Plan
or at any
time
prior
to the
time
the Employee
first
becomes
eligible
to participate
under any
such plan
maintained
by the
Employ
er.

    	 

    	 

    

 

The
election
not to
participate
must
be irrevocable
and communicated
to the
Employer,
in writing,
within
a reasonable
period
of time
before
the date
the Employee
would
have
otherwise
entered
the Plan.
Notwithstanding
anything
in this
Section
to the
contrary,
if any
prior
Plan document
of this
Plan contained
a provision
permitting
an Employee
to make
a revocable
election
n ot

to
participate
and an
Employee
made
such
revocable
election
not to participate
while
that
prior
Plan
document
was in
effect,
then
such
Employee's
waiver
shall
continue
to be in
effect.

 

(c)
Effect
of election.
An Employee
who elects,
or had
previously
elected,
not to
participate
under
the Plan
is treated
as a nonbenefiting
Employee
for purposes
of the
minimum
coverage
requirements
under Code
§410(b)
and,
if such
election
applies
to Elective
Deferrals,
the Employee
is not
an eligible
Participant
for pur
poses
of the
ADP test
set forth
in Section
12.4
or the
ACP test
set forth
in Section
12.6.

 

3.7
OMISSION
OF ELIGIBLE
EMPLOYEE;
INCLUSION
OF INELIGIBLE
EMPLOYEE

 

If,
in any
Plan
Year,
any Employee
who should
be included
as a Participant
in the
Plan
is erroneously
omitted
and discovery
of such
omission
is not
made
until after
a contr
ibution
by the Employer
for the year
has been
made
and allocated,
or any
person
who should
not have
been included
as a Participant
in the
Plan
is erroneously
included,
then
the Employer
may take
corrective
act ions
consistent
with,
the IRS
Employee
Plans
Compliance
Resolution
System
(i.e., Rev.
Proc. 2013-12
or any subsequent
guidance).

 

ARTICLE
IV 

CONTRIBUTION
AND ALLOCATION

 

4.1
FORMULA
FOR DETERMINING
EMPLOYER'S
CONTRIBUTION

 

(a)
For a Money
Purchase
Plan:

 

(1)
The Employer
will
make
contributions
on the
following
basis.
On behalf
of each
Participant
eligible
to share
in allocations,
for each
year of
such
Participant's
participation
in this
Plan,
the Employ
er will
contribute
the amount
elected
in the
Adoption
Agreement.
All contributions
by the
Employer
will
be made
in cash.
In the
event
a funding
waiver
is obtained,
this
Plan
shall
be deemed
to be an
individually
designed
plan.

 

(2)
Notwithstanding
the foregoing,
with
respect
to an Employer
which
is not
a tax-exempt
entity,
the Employer's
contribution
for any
Fiscal
Year shall
not exceed
the maximum
amount
allowable
as a deduction
to the
Employer
under
the provisions
of Code
§404. However,
to the
extent
necessary
to provide
the
top-heavy
minimum
allocations,
the Employer
shall
make a contribution
even
if it exceeds
the amount
that
is deductible
under Code
§404.

 

(b)
For a Profit
Sharing
Plan:

 

(1)
For each
Plan
Year,
the Employer
may (or
will in
the case
of a "prevailing
wage
contribution"
as set
forth
in the Profit
Sharing
Formula
Section
of the
Adoption
Agreement)
contribute
to the
Plan
such
amount
as elected
by the
Employer
in the Adoption
Agreement.
In addition,
the Employer
may make
a discretionary
"gateway
contribution"
pursuant
to Section

4.3(b)(4).

 

(2)
Additionally,
the Employer
will
contribute
to the
Plan
the amount
nec essary,
if any,
to provide
the top-heavy
minimum
allocations
even
if it exceeds
current
or accumulated
net profit
or the
amount
that
is deductible
under Code
§404.

 

(3)
Subject
to the
consent
of the
Trustee
(or Insurer),
the Employer
may make
its contribution
to the
Plan
in the
form
of unencumbered
property
instead
of cash,
provided
the contribution
of property
is not
a prohibited
transaction.
The decision
to make
a contribution
of property
is subject
to the
general
fiduciary
rules
under the
Ac t.

 

(c)
Frozen
Plans.
The Employer
may designate
that
the Plan
is a frozen
Plan at
the Contribution
Types Section
of the
Adoption
Agreement.
As a frozen
Plan,
the Employer
will not
make
any Employer
contributions
with respect
to Compensation
earned
after
the
date
the Plan
is frozen,
and if the
Plan is a 401(k)
Plan, no
Participant
will be permitted
to make
Elective
Deferrals
to the
Plan for
any period
following
such
date.
In addition,
once a Plan
is frozen,
no additional
Employees
shall
become
Participants.

 

(d)
Union
Employees.
Regardless
of any
provision
in this
Plan
to the
contrary,
Employees
whose
employment
is governed
by a collective
bargaining
agreement
between
the Employer
and "employee
representatives"
under
which
retirement
benefits
were
the
subject
of good
faith
bargaining
shall
be eligible
to participate
in this
Plan
to the
extent
of employment
covered
by suc
h agreement
provided
the agreement
provides
for coverage
in the
Plan.
The benefits,
including
but not
limited
to, contributions,
allocations
and vesting,
under
this
Plan
shall
be those
set forth
in the
collective
bargaining
agreement,
which
is hereby
incorporated
by reference
and attached
as an addendum
to the
Adoption
Agreement.
For this
purpose,
the term
"employee
representatives"
does not
include
any organization
more
than
half
of whose
members
are employees
who are
owners,
officers,
or executives
of the
Employer.
The provisions
of this
Subsection
only apply
if no more
than
two percent
(2%) of the
Employees
covered
pursuant
to the
agreement
are professionals
as defined
in Regulation
§1.410(b)
-9. If
a Participant
performs
services

both
as a collectively
bargained
Employee
and as
a non-collectively
bargained
Employee,
then
the Participant's
Hours
of Service

and
Compensation
in each
respective
category
are treated
separately
for purposes
of the
Plan.

 

4.2
TIME
OF PAYMENT
OF EMPLOYER'S
CONTRIBUTION

 

Unless
otherwise
provided
by contract
or law,
the Employer
may make
its contribution
to the
Plan
for a particular
Plan
Year
a t such
time as the
Employer,
in its
sole
discretion,
determines.
However,
if pursuant
to Section
12.8,
the "ADP
test
safe
harbor

    	 

    	 

    

 

contribution"
being
made
to the
Plan
(including
a contribution
being
made
pursuant
to a QACA as described
in Section
12.9)
is a matching
contribution
that is made
on a basis
other than
the Plan
Year,
then
the matching
contributions
must be
contributed
to the
Plan
by the
last day
of the Plan
Year quarter
immediately
following
the Plan
Year quarter
to which
the contributions
relate.
If the
Employer
makes
a contribution
for a particular
Plan
Year
after the
close
of that
Plan
Year,
the Employer
will designate
to the
Administrator
the Plan
Year for
which
the Employer
is making
its contribution.

 

4.3
ALLOCATION
OF CONTRIBUTIONS,
FORFEITURES
AND EARNINGS

 

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

 

(b)
Allocation
of contributions.
The Employer
shall
provide
the Administrator
with
all information
required
by the
Administrator
to make
a proper
allocation
of the
Employer's
contribution,
if any,
for each
Plan
Year.
W ithin
a reasonable
period
of time
af ter
the date
of receipt
by the
Administrator
of such
information,
the Administrator
shall
allocate
any contributions
as follows:

 

(1)
Money
Purchase
allocation.
For a Money
Purchase
Plan
(other
than
a Money
Purchase
Plan
which
is integrated
by allocation):

 

(i)
       The
Employer's
contribution
shall
be allocated
to each
Participant's
Account
in the
manner
set forth
in Section
4.1 herein
and as
specified
in the
Adoption
Agreement.

 

(ii)
Notwithstanding
the preceding
provisions,
a Participant
shall
only
be eligible
to share
in the
allocations
of the
Employer's
contribution
for the
year if
the Participant
is an Eligible
Employee
at any
time
during
the year
and the
conditions
set forth
in the
Adoption
Agreement
and Section
3.5(h)
are satisfied,
unless
a top-heavy
contribution
is required
pursuant
to Section
4.3(f).
If no election
is made
in the
Adoption
Agreement,
then
a Participant
shall
be eligible
to share
in the
allocation
of the
Employer's
contribution
for the
year if
the Participant
completes
more
than
five hundred
(500)
Hours
of Service
(or three
(3) consecutive
calendar
months
if the
elapsed
time
method
is chosen
in the
Adoption
Agreement)
during
the Plan
Year or
is employed
on the
last
day of
the Plan
Year.
Furthermore,
with
respect
to a

volume
submitter
or non-standardized
Adoption
Agreement,
regardless
of any
election
in the
Adoption
Agreement
to

the
contrary,
for the
Plan
Year
in which
this
Plan
terminates,
a Participant
shall
only
be eligible
to share
in the
allocation

of
the Employer's
contributions
for the
Plan
Year
if the
Participant
is employed
at the
end of
the Plan
Year and
has completed
a Year
of Service
(or Period
of Service
if the
elapsed
time
method
is elected).

 

(2)
Permitted
disparity
allocation.
For an
integrated
Profit
Sharing
Plan
or 401(k)
Profit
Sharing
Plan
allocation
or a

Money
Purchase
Plan
which
is integrated
by allocation:

 

(i)
       Subject
to the
"overall
permitted
disparity
limits,"
the Employer's
contribution
shall
be allocated
to each
Participant's
Account
in a dollar
amount
equal
to 5.7%
of the
sum of
each
Participant's
Compensation
plus
Excess
Compensation.
If the
Employer
does not
contribute
such
amount
for all
Participants,
each
Participant
will be
allocated
a share
of the
contribution
in the
same
proportion
that
each such
Participant's
Compensation
plus
Excess
Compensation
for
the Plan
Year bears
to the
total
Compensation
plus
the total
Excess
Compensation
of all
Participants
for that
year.
However,
in the
case
of any
Participant
who has
exceeded
the "cumulative
permitted
disparity
limit,"
the allocation
set forth
in this
paragraph
shall
be based
on such
Participant's
Compensation
rather
than
Compensation
plus
Excess
Compensation.

 

Regardless
of the
preceding,
4.3%
shall
be substituted
for 5.7%
above
if Excess
Compensation
is based
on more
than
20% and
less
than
or equal
to 80%
of the
Taxable
W age Base.
If Excess
Compensation
is based
on less
than

100%
and more
than
80% of
the Taxable
W age Base,
then
5.4%
shall
be substituted
for 5.7%
above.

 

(ii)
The balance
of the
Employer's
contribution
over
the amount
allocated
above,
if any,
shall
be allocated
to each
Participant's
Account
in the
same
proportion
that
each such
Participant's
Compensation
for the
Plan Year
bears
to the
total
Compensation
of all
Participants
for such
year.

 

(iii)
Notwithstanding
the preceding
provisions,
a Participant
shall
only
be eligible
to share
in the
allocations
of the
Employer's
contribution
for the
year if
the Participant
is an Eligible
Employee
at any
time during
the year
and the
conditions
set forth
in the
Adoption
Agreement
and Section
3.5(h)
are satisfied,
unles
s a top-heavy
contribution
is required
pursuant
to Section
4.3(f).
If no election
is made
in the
Adoption
Agreement,
then
a Participant
shall
be eligible
to share
in the
allocation
of the
Employer's
contribution
for the
year if
the Participant
completes
more than
five hundred
(500)
Hours
of Service
(or three
(3) consecutive
calendar
months
if the
elapsed
time method
is chosen
in the
Adoption
Agreement)
during
the Plan
Year or
is employed
on the
last
day of
the Plan
Year.

 

(iv)
The following
"overall
permitted
disparity
limits"
(which
consist
of the
"annual
overall
permitted
disparity
limit"
and the
"cumulative
permitted
disparity
limit")
apply
to the
allocations
set forth
abov
e.

 

(A)
"Annual
overall
permitted
disparity
limit."
Notwithstanding
the preceding
paragraphs,
if in any
Plan
Year
this
Plan
"benefits"
any Participant
who "benefits"
under another
qualified
plan
or simplified
employee
pension,
as defined
in Code
§408(k),
maintained
by the
Employer
that
either
provides
for or
imputes
permitted
disparity
(integrates),
then
such
plans
will be
considered
to be one
plan
and will
be considered
to comply
with
the permitted
disparity
rules
if the
extent
of the
permitted
disparity
of all
such plans
does not
exceed 100%.
For purposes
of the

    	 

    	 

    

 

preceding
sentence,
the extent
of the
permitted
disparity
of a plan
is the
ratio,
expressed
as a percentage,
which
the
actual
benefits,
benefit
rate,
offset
rate,
or employer
contribution
rate,
whatever
is applicable
under
the Plan,
bears
to the
limitation
under
Code §401(l)
applicable
to such
Plan.

 

(B)
"Cumulative
permitted
disparity
limit."
W ith respect
to a Participant
who "benefits"
or "has
benefited"
under
a defined
benefit
or target
benefit
plan
of the
Employer,
the "cumulative
permitted
disparity
limit"
for the
Participant
is thirty-five
(35)
total
cumulative
permitted
disparity
years.
Total
cumulative
permitted
disparity
years
means
the number
of years
credited
to the
Participant
for allocation
or accrual
purposes
under
the Plan,
any other
qualified
plan
or simplified
employee
pension
plan
(whether
or not
terminated)
ever
maintained
by the
Employer,
while such
plan
either
provides
for or
imputes
permitted
disparity.
For purposes
of determining
the Participant's
"cumulative
permitted
disparity
limit,"
all years
ending
in the
same calendar
year are
treated
as the
same year.
If the
Participant
has
not "benefited"
under a defined
benefit
or target
benefit
plan
which neit
her provides
for nor
imputes
permitted
disparity
for any
year beginning
on or after
January
1, 1994,
then
such
Participant
has no
cumulative
disparity
limit.

 

For
purposes
of this
Section,
"benefiting"
means benefiting
under the
Plan
for any
Plan
Year during
which
a

Participant
received
or is deemed
to receive
an allocation
in accordance
with
Regulation
§1.410(b)
-3(a).

 

(3)
Other
profit
sharing
allocations.
For a Profit
Sharing
Plan
or 401(k)
Profit
Sharing
Plan
with
a non-integrated
allocation
formula,
a uniform
points
allocation
formula,
a "prevailing
wage
contribution"
allocation
formula,
an "age
-weighted
method"
allocation
formula,
or a "grouping
method"
allocation
for mula
as elected
in the
Employer
Profit
Sharing
Contribution
Section
of the
Adoption
Agreement:

 

(i)
       The
Employer's
contribution
shall
be allocated
to each
Participant's
Account
in accordance
with
the allocation
method
below
that
corresponds
to the
elections
in the
Adoption
Agreement.
The Employer
shall
provide
the Administrator
with
all information
required
by the
Administrator
to make
a proper
allocation
of the
Employer's
contribution
for each
Plan
Year.
W ithin
a reasonable
period
of time
after
the date
of receipt
by the
Administrator
of such
information,
the allocation
shall
be made
in accordance
with the
provisions
below.
The "gateway
contribution"
for plans
with a cross-tested
allocation
formula
shall
be made
in accordance
with
the provis
ions of
Subsection
(4) below.

 

(ii)
If the
Employer's
contribution
is fixed,
the Employer
shall
allocate
the contribution
in a set
percentage
to each
Participant.
If the
Employer
elects
to contribute
a uniform
dollar
amount
for each
Participant,
the pro
rata
allocation
shall
allocate
that
uniform
dollar
amount
to each
Participant.

 

(iii)
If the
Employer's
contribution
is discretionary
and non-integrated,
the contribution
shall
be allocated
either
in the
same
ratio
as each
Participant's
Compensation
bears
to the
total
of such
Compensation
of all
Participants,
in the
same dollar
amount
to all
Participants
(per capita),
or in the
same dollar
amount
per Hour
of Service
completed
by each
Participant.

 

(iv)
If the
Employer's
Contribution
is allocated
under
a uniform
points
allocation
formula,
the allocation
for each
Participant
shall
be determined
based
on the
Participant's
total
points
for the
Plan
Year,
as determined
under
the Adoption
Agreement.
A Participant's
allocation
of the
Employer
Contribution
is determined
by multiplying
the Employer
Contribution
by a fraction,
the numerator
of which
is the
Participant's
total
points
for the
Plan
Year
and the
denominator
of which
is the
sum of
the points
for all
Participants
for the
Plan
Y ear. A Participant
shall
receive
points
for each
year(s)
of age
and/or
each Year(s)
of Service.
In addition,
a Participant
also
may receive
points
based
on his
or her
Compensation.

 

(v)
If the
Employer's
contribution
is a "prevailing
wage
contribution",
it shall
be allocated
to each
Participant
who performs
services
subject
to the
Service
Contract
Act,
Davis-Bacon
Act or
similar
federal,
state,
or municipal
prevailing
wage
statutes.
The "prevailing
wage
contribution"
will be
an amount
equal
to the
balance
of the
prevailing
wage
defined
bona
fide fringe
benefit
amount
based
on the
Participant's
employment
classification
as designated
on the
prevailing
wage
determination
appropriate
for that
classification.
Notwithstanding
anything
in the
Plan
to the
contrary,
the "prevailing
wage
contribution"
shall
be fully
Vested.
Furthermore,
the "prevailing
wage
contribution"
shall
not be
subject
to any
age,
service
or employment
condition
r equirements
set forth
in the
Adoption
Agreement
and the
Employer
shall
make such
contribution
to the
Plan
as frequently
as is required
under
applicable
law.

 

(vi)
If the
Employer's
contribution
is allocated
according
to a "grouping
method,"
the Employer
may contribute
to the
Plan
on behalf
of each
of the
classifications
of Participants
set forth
in the
Adoption
Agreement
such
amount
as shall
be determined
by the
Employer.
The Employer
shall
provide
the Administrator,
if other
than
the Employer,
w ith written
notification
of the
amount
of the
contribution
to be allocated
to each classification
on or before
the due
date
of the
Employer's
tax return
for the
year of
allocation,
through
written
instructions
from
the Employer
to the
Administrator.
The Employer
may elect
to specify
any number
of classifications
and a classification
may consist
of any number
of Participants.

 

(vii)
If the
Employer's
contribution
is allocated
according
to an "age-weighting
method,"
the Employer's
contribution
for the
Plan
Year
shall
be allocated
to each
Participant's
Account
in the
same proportion
that
each such
Participant's
total
points
with
respect
to such
year,
bear to
the total
points
awarded
to all
Participants
with
respect
to such
year.
The conditional
allocation
provided
for in
the preceding
sentence
shall
become
the final
allocation
for the
year only
if it is
not a Top-Heavy
Plan
Year;
or if the
minimum
allocation
required
for Top-Heavy
Plan
Years
is provided
to all
Employees
eligible
to receive
such
minimum
allocation.
If any such
Employee
does not
receive
the top-heavy
minimum
allocation,
then
in lieu
of the
conditional
allocation,
the Employer's
contribution
shall
instead
be allocated
first
to the
affected

    	 

    	 

    

 

Employees
in an amount
equal
to their
conditional
allocation
plus
any additional
amount
necessary
to provide
the top-heavy
minimum
allocation.

 

The
remainder
of the
Employer's
contribution
shall
then
be allocated
as provided
under
th e conditional
allocation
method,
but for
this purpose,
those
Employees
who did
not receive
the top-heavy
minimum
allocation
under the
initial
conditional
allocation
shall
not be
considered.
If under
the secondary
allocation
provided
in the preceding
senten
ce, an
Employee
who received
a top-heavy
minimum
contribution
under
the conditional
allocation
no longer
receives
the

same,
then
the steps
outlined
in the
preceding
paragraph
and sentence
shall
be repeated
until
such
time
as all
affected

Employees
have
been allocated
the top-heavy
minimum
contribution
and the
remaining
contribution
has been
allocated,
at which
time,
the allocations
for the
year shall
be final.

 

A Participant's
points
with
respect
to any
Plan
Year shall
be computed
as follows:
(A) Multiply
the Participant's
Compensation
for the
Plan
Year
by 1%.

(B)
Multiply
the product
for each
Participant
as determined
in (a)
above by
the product
of:

 

1.
       the
factor
in Table
I in Exhibit
A to the
Adoption
Agreement,
such
factor
to be determined
by reference
to the
Participant's
Normal
Retirement
Age,
and

 

2.       the
factor
in Table
II of Exhibit
A to the
Adoption
Agreement,
such factor
to be determined
by reference
to the
number
of years
remaining
from
the Participant's
attained
age as of
the allocation
date
to his
or her

Normal
Retirement
Age.

 

The
schedule
of Age-W
eighted
Allocation
Factors
is set
forth
in Exhibit
A to the
Adopt
ion Agreement,
(which
is hereby
incorporated
by reference
and made
a part
of the
Plan)
and shall
be based
on the
interest
rate
selected
in the
Adoption
Agreement
(if no
selection
is made,
8.5%
interest
shall
be deemed
to have
been elected).

 

3.       The
resulting
number
shall
be the
number
of points
allocated
to the
Participant.

 

(viii)
Notwithstanding
the preceding
provisions,
a Participant
shall
only
be eligible
to share
in the
allocations
of the
Employer's
contribution
for the
year
if the Participant
is an Eligible
Employee
at any
time during
the
year and
the conditions
set forth
in the
Adoption
Agreement
and Section
3.5(h)
are satisfied,
unless
a top-heavy
contribution
is required
pursuant
to Section
4.3(f).
If no election
is made
in the
Adoption
Agreement,
then
a Participant
shall
be eligible
to share
in the
allocation
of the
Employer's
contribution
for the
year if
the Participant
completes
more than
five hundred
(500)
Hours
of Service
(or three
(3) consecutive
calendar
months
if the
elapsed
time method
is chosen
in the
Adoption
Agreement)
during
the Plan
Year or
is employed
on the
last
day of
the Plan
Year.

 

(4)
Gateway
contribution.
 The Employer
may make
an additional
discretionary
Employer
contribution
("gateway
contribution")
as set
forth
below
(i.e.,
the minimum
allocation
gateway
requirement
described
in Regulation

§1.401(a)(4)-8(b)(1)(vi)).
In applying
the provisions
of this
Subsection
(4),
the term
"Employer
contributions"
shall
also

include
any Forfeitures
that
are allocated
to a Participant,
other
than
Forfeitures
that
are subject
to Code
§401(m)
because
they
are allocated
as a matching
contribution.
Furthermore,
in applying
the provisions
of this
Subsection
(4) to
a 401(k)
Profit
Sharing
Plan,
the term
"Employer
contributions"
means any
Employer
Nonelective
Contributions,
nonelective
"ADP test
safe
harbor
contributions,"
and,
except
as otherwise
provided
in Subsections
(4)(ii)
and (iv)
below,
Qualified
Nonelective
Contributions,
and such
term
excludes
any matching
contributions.

 

(i)       Any
"gateway
contribution"
made
pursuant
to this
Subsection
for a Plan
Year will
be allocated
to each
Nonhighly
Compensated
Participant
who receives
an allocation
of other
"Employer
contributions,"
for such
Plan
Year.
The "gateway
contribution"
will be
allocated
without
regard
to any
allocation
conditions
otherwise
applicable
to "Employer
contributions"
under
the Plan.
However,
Participants
who the
Administrator
disaggregates
pursuant
to Regulation

§1.410(b)-7(c)(3)
because
they
have
not satisfied
the greatest
minimum
age and
service
conditions
permissible
under

Code
§410(a)
shall
not be
eligible
to receive
an allocation
of any
"gatew
ay contribution"
made
pursuant
to this

Subsection
unless
such
an allocation
is necessary
to satisfy
Code
§401(a)(4).

 

(ii)
The "gateway
contribution"
will be
allocated
pro rata
on the
basis
of Compensation
(as defined
in (iii)
or (iv)
below,
whichever
is applicable)
of each
eligible
Participant
(as described
in Subsection
(i) above)
but in
no event
will an
allocation
of the
"gateway
contribution"
exceed
the lesser
of: (A)
five percent
(5%)
of Compensation
or (B)
one-third
(1/3)
of the
highest
allocation
rate
for any
Highly
Compensated
Participant
for the
Plan
Year.
Any allocation
under
the prior
sentence
will
be reduced
by the
amount
of any
other
"Employer
contributions,"
excluding
any Qualified
Nonelective
Contributions
that
are used
to satisfy
the ADP
test
set forth
in Section
12.4
or the
ACP test
set forth
in Section
12.6,
allocated
for the
same
Plan
Year
to such
Participant,
provided
that
if an eligible
Participant
is receiving
only
a Qualified
Nonelective
Contribution
and such
contribution
amount
equals
or exceeds
the "gateway
contribution,"
then
the contribution
satisfies
the "gateway
contribution"
requirement
as to that
Participant.

 

(iii)
For allocation
purposes
under
the 5%
"gateway
contribution"
under
(A) of
Subsection
(ii)
above,
Compensation
means 415
Compensation
except
that
it shall
be determined
for the
Plan
Year (rather
than
the Limitation
Year)
and shall
exclude
415 Compensation
paid
while
an Employee
is not
a Participant
in the
Plan.

    	 

    	 

    

 

(iv)
For purposes
of the
1/3 "gateway
contribution"
alternative
under
(B) of
Subsection
(ii)
above,
the Administrator
will (A)
determine
the allocation
rate,
and (B)
allocate
the "gateway
contribution,"
using
a Participant's
Compensation,
provided
the definition
of Compensation
satisfies
Regulation
§1.414(s).
In addition,
the allocation
rate
for any
Participant
is determined
by dividing
the total
"Employer
contribution"
made on
behalf
of such
Participant
by the
Participant's
Compensation
(as defined
in the
preceding
sentence).
However,
solely
for purposes
of determining
the allocation
rate
of any
Nonhighly
Compensated
Participant,
Qualified
Nonelective
Contributions
that
are used
to satisfy
the ADP
test
set forth
in Section
12.4
or the
ACP test
set forth
in Section
12.6,
shall
not be
taken
into
account.

 

(v)
Notwithstanding
the foregoing,
the Employer
may increase
the "gateway
contribution"
to satisfy
the provisions
of Regulation
§1.401(a)(4)-9(b)(2)(v)(D)
if the
plan
(for
nondiscrimination
testing
purposes)
consists
of one
or more
defined
contribution
plans
and one
or more
defined
benefit
plans.

 

(c)
Gains
or losses.
Except
as otherwise
elected
in the
Adoption
Agreement
or as provided
in Section
4.10
with
respect
to Participant
Directed
Accounts,
as of each
Valuation
Date,
before
allocation
of any
Employer
contributions
and Forfeitures,
an y earnings
or losses
(net
appreciation
or net
depreciation)
of the
Trust
Fund (exclusive
of assets
segregated
for distribution)
shall
be allocated
in the
same
proportion
that
each Participant's
nonsegregated
accounts
bear to
the total
of all
Participants'
nonsegregated
accounts
as of such
date.
Unless
otherwise
specified
in the
Adoption
Agreement,
the nonsegregated
account
will be
reduced
by any
distributions
made
prior
to the
Valuation
Date.

 

ERISA
recapture
account.
The Administrator
in its
discretion
may use
an "ERISA
Recapture
Acc ount"
to pay
non-settlor
Plan
expenses
and may
allocate
funds
in the
"ERISA
Recapture
Account"
(or excess
funds
therein
after
payment
of Plan
Expenses)
as earnings
or as otherwise
permitted
by applicable
law. The
Plan
Administrator
will
exercise
its discretion
in a reasonable,
uniform
and nondiscriminatory
manner.
An "ERISA
Recapture
Account"
is an account
designated
to receive
amounts
which
a Plan
service
provider
receives
in the
form
of 12b-1
fees,
sub-transfer
agency
fees,
shareholder
servicing
fees
or similar
amounts
(also
known
as "revenue
sharing"),
which
are received
by the
service
provider
from
a source
other
than
the Plan
and which
the service
provider
may remit
to the
Plan.

 

Late
trading
and market
timing
settlement.
 In the
event
the Plan
becomes
entitled
to a settlement
from
a mutual
fund
or other
investment
relating
to late
trading,
market
timing
or other
activities,
the Plan
Administrator
will allocate
the settle
ment
proceeds
to Participants
and Beneficiaries
in accordance
with Department
of Lab
or Field
Assistance
Bulletin
2006-01 or
other
applicable
law.

 

(d)
Contracts.
Participants'
Accounts
shall
be debited
for any
insurance
or annuity
premiums
paid,
if any,
and credited
with
any dividends
or interest
received
on Contracts.

 

(e)
Forfeitures.
Forfeitures
must
be disposed
of no later
than the
last day
of the
Plan Year
following
the Plan
Year
in which
the Forfeiture
occurs.
The Employer
must
direct
the Administrator
to use
Forfeitures
to reinstate
previously
forfeited
Account
balances
of Participants,
if any, in accordance
with Section
3.5(g),
to satisfy
any contribution
that may
be required
pursuant
to Section
6.10,
or, to
pay any
Plan expenses.
W ith respect
to a Money
Purchase
Plan, any
remaining
Forfeitures
will be
disposed
of in accordance
with
the elections
in the Adoption
Agreement.
With respect
to all other
plans,
the Employer
must
direct
the

Administrator
to use
any remaining
Forfeitures
in accordance
with
any combination
of the
following
methods,
including
a different

method
based
on the
source
of such
Forfeitures.
Forfeitures
may be:

 

(1)
Added
to any
Employer
discretionary
contribution
(e.g.,
matching
or profit
sharing)
and allocated
in th e same
manner;
(2) Used
to reduce
any Employer
contribution
(e.g.,
matching
or profit
sharing);

(3)
Added
to any
Employer
matching
contribution
and allocated
as an additional
matching
contribution;
or

 

(4)
Allocated
to all
Participants
in the
same
proportion
that
each Participant's
Compensation
for the
Plan
Year
bears
to the

Compensation
of all
Participants
for such
year.

 

Notwithstanding
(e)(2)
above,
effective
for Plan
Years
beginning
after
the Plan
Year in
which
this
Plan
document
is adopted,
Forfeitures
may not
be used
to reduce
any Employer
contributions
which
are required
pursuant
to the
Code
to be fully
Vested
when
contributed
to the
Plan
(such
as QMACs,
QNECs
and "ADP
test
safe harbor
contributions"
other
than
QACA
"ADP
test
safe
harbor
contributions."

 

If
Forfeitures
are allocated
to Participants
(rather
than
used
to reduce
Employer
contributions)
then
the Employer
must also
direct
the Administrator
as to which
Participants
are eligible
to share
in such
allocation.
The maximum
allocation
conditions
the Employer
may require
are that
Participants
complete
one (1)
Year of
Service
(or Period
of Service)
and be
employed
on the
las t day
of the
Plan
Year in
order
to share
in the
allocation
of Forfeitures
for such
Plan
Year.
Notwithstanding
the foregoing,
i f this
is a standardized
Plan,
then
the maximum
allocation
conditions
are that
Participants
complete
more than
five hundred
(500)
Hours
of Service
(or three
(3) consecutive
calendar
months
if the
elapsed
time method
is chosen
in the
Adoption
Agreement)
dur ing
the Plan
Year
or be employed
on the
last
day of
the Plan
Year.

 

(f)
Minimum
allocations
required
for Top-Heavy
Plan
Years.
Notwithstanding
the foregoing,
for any
Top-Heavy
Plan
Year,
the sum
of the Employer's
contributions
and Forfeitures
allocated
to the
Participant's
Combined
Account
of each Non
-Key
Employee
or each
Participant,
if elected
in the
Adoption
Agreement,
shall
be equal
to at least
three
percent
(3%)
of such
Employee's
415 Compensation
for the
Plan
Year
or the calendar
year ending
within
the Plan
Year (reduced
by contributions
and Forfeitures,
if any,
allocated
to each
such
Employee
in any
defined
contribution
plan
included
with
this
Plan
in a "required

    	 

    	 

    

 

aggregation
group"
(as defined
in Section
9.2(f)).
However,
if (1)
the sum
of the
Employer's
contributions
and Forfeitures
allocated
to the
Participant's
Combined
Account
of each Key
Employee
for such
Top-Heavy
Plan
Year
is less
than
three
percent
(3%)
of each Key
Employee's
415 Compensation
and (2)
this
Plan
is not
required
to be included
in a "required
aggregation
group"
(as defined
in Section
9.2(f))
to enable
a defined
benefit
plan
to meet the
requirements
of Code
§401(a)(4)
or 410,
th e sum
of the
Employer's
contributions
and Forfeitures
allocated
to the
Participant's
Combined
Account
of each
Employee
entitled
to the
top-heavy
minimum
contribution
shall
be equal
to the
largest
percentage
allocated
to the
Participant's
Combined
Account

of any
Key Employee.
The minimum
allocation
required
(to the
extent
required
to be nonforfeitable
under
Code
§416(b))
may not

be
forfeited
under
Code
§411(a)(3)(B)
or 411(a)(3)(D).

 

However,
for each
Employee
who is
a Participant
in a Profit
Sharing
Plan
or 401(k)
Profit
Sharing
Plan
and a Money
Purchase
Plan,
the minimum
three
percent
(3%) allocation
specified
above
shall
be provided
in the
Money
Purchase
Plan
unless
otherwise
elected
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections).

 

If
this
is an integrated
prototype
Plan,
then
for any
Top-Heavy
Plan
Year the
Employer's
contribution
shall
be allocated
as follows
and shall
still be
required
to satisfy
the other
provisions
of this
Subsection:

 

(1)
An amount
equal
to three
percent
(3%)
multiplied
by each
Participant's
Compensation
for the
Plan Year
shall
be allocated
to each
Participant's
Account.
If the
Employer
does not
contribute
such
amount
for all Participants,
the amount
shall
be allocated
to each
Participant's
Account
in the
same
proportion
that such
Participant's
total
Compensation
for the
Plan
Year bears
to the
total
Compensation
of all
Participants
for such
year.
Notwithstanding
any contrary
allocation
conditions
set forth
in this
Plan, Participants
who are entitled
to receive
the top-heavy
minimum
allocation
set forth
in this
Section
shall
be eligible
to share
in this
first
tier allocation.

 

(2)
The balance
of the
Employer's
contr
ibution
over
the amount
allocated
under subparagraph
(1) hereof
shall
be allocated
to each
Participant's
Account
in a dollar
amount
equal
to three
percent (3%)
multiplied
by a Participant's
Excess
Compensation.
If the
Employer
does not
contribute
such
amount
for all
Participants,
each
Participant
will be allocated
a share
of the
contribution
in the
same
proportion
that
such
Participant's
Excess
Compensation
bears
to the
total
Excess
Compensation
of all
Participants
for that
year.
For purposes
of this
paragr
aph,
in the
case
of any
Participant
who has
exceeded
the "cumulative
permitted
disparity
limit"
described
in Section
4.3(b)(2),
such
Participant's
total
Compensation
will be
taken
into
account.

 

(3)
The balance
of the
Employer's
contribution
over
the amount
allocated
under subparagraph
(2) hereof
shall
be allocated
to each
Participant's
Account
in a dollar
amount
equal
to 2.7%
multiplied
by the
sum of
each
Participant's
total
Compensation
plus
Excess
Compensation.
If the
Employer
does not
contrib
ute such
amount
for all
Participants,
each
Participant
will be
allocated
a share
of the
contribution
in the
same
proportion
that
such
Participant's
total
Compensation

plus
Excess
Compensation
for the
Plan
Year bears
to the
total
Compensation
plus
Excess
Compensation
of all
Participants
for that
year.
For purposes
of this
paragraph,
in the
case
of any
Participant
who has
exceeded
the "cumulative
permitted
disparity
limit"
described
in Section
4.3(b)(2),
such
Participant's
total
Compensation
rather
than
Compensation
plus
Excess
Compensation
will
be taken
into
account.

 

Regardless
of the
preceding,
1.3%
shall
be substituted
for 2.7%
above
if Excess
Compensation
is based
on more
than
20%

and
less
than
or equal
to 80% of
the Taxable
W age Base.
If Excess
Compensat
ion is
based
on less
than
100% and
more than

80%
of the
Taxable
W age Base,
then
2.4%
shall
be substituted
for 2.7%
above.

 

(4)
The balance
of the
Employer's
contributions
over
the amount
allocated
above,
if any,
shall
be allocated
to each
Participant's
Account
in the
same
proportion
that
such
Participant's
total
Compensation
for the
Plan Year
bears
to the
total
Compensation
of all
Participants
for such
year.

 

For
each Employee
who is
a Participant
in this
Plan
and another
defined
contribution
plan
maintained
by the
Employer
or an Affiliated
Employer,
the minimum
three
percent
(3%) allocation
specified
above
shall
be provided
as specified
in the
Adoption
Agreement
Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections).

 

(g)
Top-heavy
contribution
allocation.
 For purposes
of the
minimum
allocations
set forth
above,
the percentage
allocated
to the
Participant's
Combined
Account
of any
Key Employee
shall
be equal
to the
ratio
of the
sum of the
Employer's
contributions
and Forfeitures
allocated
on behalf
of such
Key Employee
divided
by the
415 Compensation
for such
Key Employee.

 

(h)
Participants
eligible
for top-heavy
allocation.
Notwithstanding
anything
in this
Plan
to the
contrary,
for any
Top -Heavy
Plan
Year,
the minimum
allocations
set forth
in this
Section
shall
only
be allocated
to the
Participant's
Combined
Account
of all
Non-Key
Employees,
and Key
Employees
if elected
in the
Adoption
Agreement,
who are
Participants
and who
are employed
by the
Employer
on the
last
day of
the Plan
Year
(unless
otherwise
elected
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections)),
including
Employees
who have
(1) failed
to complete
a Year of
Service;
(2) declined
to make mandatory
contributions
(if required)
or, in
the case
of a cash or
deferred
arrangement,
Elective
Deferrals
to the
Plan;
or (3)
Compensation
less
than
a stated
amount.
In addition,
pursuant
to Code
§416(i)(4),
Participants
whose
employment
is governed
by a collective
bargaining
agreement
between
the Employer
and employee
representatives
under
which
retirement
benefits
were
the subject
of good
faith
bargaining
shall
not be
elig
ible
to receive
the top-heavy
minimum
allocations
unless
otherwise
provided
in the
collective
bargaining
agreement.

 

(i)       Top-heavy
allocation
if DB and
DC plans
maintained.
Notwithstanding
anything
herein
to the
contrary,
in any
Plan
Year

in
which
the Employer
maintains
both
this
Plan
and a non-frozen
defined
benefit
pension
plan
included
in a "required
aggregation
group"
(as defined
in Section
9.2(f))
which
is top-heavy,
the Employer
will not
be required
(unless
otherwise
elected
in Appendix

    	 

    	 

    

 

A to
the Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections))
to provide
Employees
with
both
the full
separate
minimum
defined
benefit
plan
benefit
and the
full
separate
defined
contribution
plan
top-heavy
minimum
allocations.
In such
case,
the top-heavy
minimum
benefits
will be
provided
as elected
in the
Adoption
Agreement
and,
if applicable,
as follows:

 

(1)
If the
5% defined
contribution
minimum
is elected
in the
Adoption
Agreement:

 

(i)
The requirements
of Section
9.1 will
apply
except
that
each
Employee
who accrues
a benefit
in the
Profit
Sharing
Plan
or Money
Purchase
Plan
and who
accrues
a benefit
in the
Defined
Benefit
Plan
will receive
a minimum
allocation
of five
percent
(5%)
of such
Participant's
415 Compensation
from
the "applicable
defined
contribution
plan(s)."

 

(ii)
For each
Employee
who is
a participant
only
in the
Defined
Benefit
Plan,
the Employer
will provid
e a minimum
non-integrated
benefit
equal
to two
percent
(2%)
of such
participant's
highest
five (5)
consecutive
year average
415

Compensation
for each
Year of
Service
while
a participant
in such
plan,
in which
the Plan
is top-heavy,
not to
exceed

ten
(10) such
years.

 

(iii)
For each
Employee
who is
a Participant
only
in this
defined
contribution
plan,
the Employer
will
provide
a minimum
allocation
equal
to three percent
(3%) of
such
Participant's
415 Compensation.

 

(2)
If the
2% defined
benefit
minimum
is elected
in the
Adoption
Agreement,
then
for each
Employee
who is
a participant
only
in the
defined
benefit
plan,
the Employer
will provide
a minimum
non-integrated
benefit
equal
to two
percent
(2%) of such
participant's
highest
five (5)
consecutive
year average
of 415 Compensation
for each
Year
of Service
while
a participant
in the
plan,
in which
the plan
is top-heavy,
not to
exceed
ten (10)
such years.

 

(j)       Matching
contributions
used to
satisfy
top-heavy
contribution.
Unless
otherwise
specified
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections),
Employer
matching
contributions
shall
be taken
into
account
for purposes
of satisfying
the minimum
contribution
requirements
of Code
§416(c)(2)
and the
Plan.
The preceding
sentence
shall
apply
with
respect
to matching
contributions
under the
Plan
or, if
the Plan
provides
that
the minimum
contribu
tion
requirement
shall
be met
in another
plan,
such
other
plan.
Employer
matching
contributions
that
are used
to satisfy
the minimum
contribution
requirements
shall
be treated
as matching
contributions
for purposes
of the
ACP test
and other
requirements
of Code
§401(m).

 

(k)
Contributions
under
other
plans.
The Employer
may provide,
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and
Other
Permitted
Elections),
that
the minimum
benefit
requirement
shall
be met
in another
plan
(including
another
pl an
that
consists
solely
of a cash or
deferred
arrangement
which
meets
the requirements
of Code
§401(k)(12)
and matching
contributions
with
respect
to which
the requirements
of Code
§401(m)(11)
apply).
The Employer
must
specify
the name
of the
other
plan,
the minimum
benefit
that
will be
provided
under such
other
plan,
and the
Employees
who will
receive
the minimum
benefit
under
such
other
plan.

 

(l)
       Delay
in processing
transactions.
Notwithstanding
anything
in this
Section
to the
contrary,
all information
necessary
to properly
reflect
a given
transaction
may not be
available
until
after
the date
specified
herein
for processing
such
transacti
on, in which
case the
transaction
will
be reflected
when
such
information
is received
and processed.
Subject
to express
limits
that may
be imposed
under the
Code,
the processing
of any contribution,
distribution
or other
transaction
may be delayed
for any
legitimate
business
reason
(including,
but not
limited
to, failure
of systems
or computer
programs,
failure
of the means
of the

transmission
of data,
force
majeure,
the failure
of a service
provider
to timely
receive
values
or prices,
and correction
for errors
or

omissions
or the
errors
or omissions
of any
service
provider).
The processing
date
of a transaction
will be
binding
for all
purposes
of the
Plan.

 

(m)
410(b)
ratio
percentage
fail-safe
provisions.
Notwithstanding
anything
in this
Section
to the
contrary,
the provisions
of this
Subsection
apply
for any
Plan
Year if,
in the
volume
submitter
or non-standardized
Adoption
Agreement,
the Employer
elected
to apply
the 410(b)
ratio
percentage
fail-safe
provisions
and the
Plan
fails
to satisfy
the "ratio
percentage
test"
due to a last
day of
the Plan
Year
allocation
condition
or an Hours
of Service
(or months
of service)
allocation
condition.
A plan
satisfies
the " ratio
percentage
test"
if, on
the last
day of
the Plan
Year,
the "benefiting
ratio"
of the
Nonhighly
Compensated
Employees
w ho are
"includible"
is at least
70% of
the "benefiting
ratio"
of the
Highly
Compensated
Employees
who are
"includible."
The "benefit
ing ratio"
of the
Nonhighly
Compensated
Employees
is the
number
of "includible"
Nonhighly
Compensated
Employees
"benefiting"
under
the Plan
divided
by the
number
of "includible"
Employees
who are
Nonhighly
Compensated
Employees.
The "benefiting
ratio"
of the
Highly
Compensated
Employees
is the
number
of Highly
Compensated
Employees
"benefiting"
under the
Plan
divided
by the
number
of "includible"
Highly
Compensated
Employees.
"Includible"
Employees
are all
Employees
other
than:
(1) those
Employees
excluded
from
participating
in the
Plan
for the
entire
Plan
Year by
reason
of the
collective
bargaining
unit exclusion
or the
nonresident
alien
exclusion
described
in the
Code
or by reason
of the
age and
service
requirements
of Article
III; and
(2) any
Employee
who incurs
a separation
from
service
during
the Plan
Year and
fails
to complete
at least
501 Hours
of Service
(or three
(3) months
of service
if the
elapsed
time method
is being
used)
during
such
Plan
Year.

 

For
purposes
of this
Subsection,
an Employee
is "benefiting"
under
the Plan
on a particular
date
if, under
the Plan,
the

Employee
is entitled
to an Employer
contribution
or an allocation
of Forfeitures
for the
Plan
Year.

 

If
this
Subsection
applies
and the
Hours
of Service
method
is used,
then
the Administrator
will suspend
the allocation
conditions
and expand
the group
of the "includible"
Nonhighly
Compensated
Employees
who are Participants
by including
the minimum
number
of Participants
eligible
to share in
the contribution,
beginning
first
with
the "includible"
Employees
employe
d by the
Employer
on the
last
day of
the Plan
Year
who have
completed
the greatest
number
of Hours
of Service
in the Plan
Year,
then
the "includible"
Employees
who have
completed
the greatest
number
of Hours
of Service
during
the Plan
Year,
and

    	 

    	 

    

 

continuing
to suspend
the allocation
conditions
for each
"includible"
Employee
who completed
Hours of
Service,
from
the greatest
number
of Hours
of Service
to the
least,
until
the Plan
satisfies
the "ratio
percentage
test"
for the
Plan Year.
If two or
more "includible"
Employees
have
the same
number
of Hours
of Service,
then
the Administrator
will suspend
the allocation
conditions
for all
such
"includible"
Employees,
irrespective
of whether
the Plan
can satisfy
the "ratio
percentage
test"
by accruing
benefits
for fewer
than
all such
"includible"
Employees.
If the
Plan for
any Plan
Year suspends
the allocation
conditions
for an
"includible"
Employee,
then
that
Employee
will share
in the
allocation
for that
Plan
Year of
the Employer
contribution
and Forfeitures,
if any,
without
regard
to whether
the Employee
has satisfied
the other
allocation
conditions
set forth
in this
Section.

 

If
this
Subsection
applies
and the
elapsed
time
method
is used,
then
the Administrator
will susp
end the
allocation
conditions
for
the "includible"
Nonhighly
Compensated
Employees
who are
Participants,
beginning
first
with the
"includible"
Employees
employed
by the
Employer
on the
last
day of
the Plan
Year,
then
the "includible"
Employees
who have
the latest
separation
from
service
during
the Plan
Year,
and continuing
to suspend
the allocation
conditions
for each
"includible"
Employee
who incurred
an earlier
separation
from
service,
from
the latest
to the
earliest
separation
from
service
date,
until
th e Plan
satisfies
the "ratio
percentage
test"
for the
Plan
Year.
If two
or more
"includible"
Employees
have
a separation
from
service
on the
same
day,
the n the
Administrator
will suspend
the allocation
conditions
for all
such
"includible"
Employees,
irrespective
of whether
the Plan
can satisfy
the "ratio
percentage
test"
by accruing
benefits
for fewer
than
all such
"includible"
Employees.
If the
Plan
for any
Plan

Year
suspends
the allocation
conditions
for an
"includible"
Employee,
then
that
Employee
will sh
are in
the allocation
for that
Plan
Year of
the Employer
contribution
and Forfeitures,
if any,
without
regard
to whether
the Employee
has satisfied
the other
allocation
conditions
set forth
in this
Section.

 

Notwithstanding
the foregoing,
if the
portion
of the
Plan
which
is not
a Code
§401(k)
or 401(m)
plan
would
fail
to satisfy
Code
§410(b)
if the
coverage
tests
were
applied
by treating
those
Participants
whose
only
allocation
would
otherwise
be provided
under the
top-heavy
formula
as if they
were
not curr
ently
benefiting
under
the Plan,
then,
for purposes
of applying
this
Subsection
(m),
such
Participants
shall
be treated
as not
benefiting.

 

4.4
MAXIMUM
ANNUAL
ADDITIONS

 

(a)
Calculation
of "annual
additions."

 

(1)
If a Participant
does not
participate
in, and
has never
participated
in another
qualified
plan
maintained
by the
"employer,"
or a welfare
benefit
fund
(as defined
in Code
§419(e))
maintained
by the
"employer,"
or an individual
medical
benefit
account
(as defined
in Code
§415(l)(2))
maintained
by the
"employer,"
or a simplified
employee
pension
(as defined
in Code
§408(k))
maintained
by the
"employer"
which
provides
"annual
additions,"
the amount
of "annual
additions"
which
may be
credited
to the
Participant's
Accounts
for any
Limitation
Year shall
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
Accounts
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,"
and any
amount
in excess
of the
"maximum
permissible
amount"
which
would
have
been allocated
to such
Participant
may be allocated
to other
Participants.

 

(2)
Prior
to determining
the Participant's
actual
415 Compensation
for the
Limitation
Year,
the "employer"
may determine
the
"maximum
permissible
amount"
for a Participant
on the
basis
of a reasonable
estimation
of the
P articipant's
415

Compensation
for the
Limitation
Year,
uniformly
determined
for all
Participants
similarly
situated.

 

(3)
As soon
as is administratively
feasible
after
the end
of the
Limitation
Year the
"maximum
permissible
amount"
for such

Limitation
Year shall
be determined
on the
basis
of the
Participant's
actual
415 Compensation
for such
Limitation
Year.

 

(b)
"Annual
additions"
if a Participant
is in more
than
one plan.

 

(1)
Except
as provided
in Subsection
(c) below,
this Subsection
applies
if, in addition
to this
Plan,
a Participant
is covered
under
another
"employer"
maintained
qualified
defined
contribution
plan,
welfare
benefit
fund
(as defined
in Code
§419(e)),
individual
medical
benefit
account
(as defined
in Code
§415(l)(2)),
or simplified
employee
pension
(as defined
in Code

§408(k)),
which
provides
"annual
additions,"
during
any Limitation
Year.
The "annual
additions"
which
may be cr
edited
to a

Participant's
Accounts
under
this
Plan
for any
such
Limitation
Year
shall
not exceed
the "maximum
permissible
amount"
reduced
by the
"annual
additions"
credited
to a Participant's
accounts
under the
other
plans
and welfare
benefit
funds,
individual
medical
benefit
accounts,
and simplified
employee
pensions
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
accounts
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 welfare
benefit
funds
for the
Limitation
Year will
equal
the "maximum
permissible
amount,"
and any
amount
in excess
of the
"maximum
permissible
amount"
which
would
have
been allocated
to such
Participant
may be
allocated
to other
Participants.
If the
"annual
additions"
with
respect
to the
Participant
under
such
other
defined
contribution
plans,
welfare
benefit
funds,
individual
medical
benefit
accounts
and simplified
employee
pensions
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.

 

(2)
Prior
to determining
the Participant's
actual
415 Compensation
for the
Limitation
Year,
the "employer"
may determine
the
"maximum
permissible
amount"
for a Participant
on the
basis
of a reasonable
estimation
of the
Participant's
415

Compensation
for the
Limitation
Year,
uniformly
determined
for all
Participants
similarly
situated.

    	 

    	 

    

 

 

(3)
As soon
as is administratively
feasible
after
the end
of the
Limitation
Year,
the "maximum
permissible
amount
" for the

Limitation
Year will
be determined
on the
basis
of the
Participant's
actual
415 Compensation
for the
Limitation
Year.

 

(4)
If, pursuant
to Section
4.4(b)(2),
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
will be
deemed
to have
been allocated
first,
followed
by "annual
additions"
to a welfare
benefit
fund or
individual
medical
benefit
account,
and then
by "annual
additions"
to a plan
subject
to Code
§412, regardless
of the
actual
allocation
date.

 

(5)
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:

 

(i)
       the
total
"excess
amount"
allocated
as of such
date,
times

 

(ii)
the ratio
of (A)
the "annual
additions"
allocated
to the
Participant
for the
Limitation
Year
as of such
date
under this
Plan
to (B)
the total
"annual
additions"
allocated
to the
Participant
for the
Limitation
Year as
of such
date
unde r this
and all
the other
qualified
defined
contribution
plans.

 

(c)
Coverage
under
another
plan.
If the
Participant
is covered
under another
qualified
defined
contribution
plan
maintained
by the
"employer,"
"annual
additions"
which
may be credited
to the
Participant's
Accounts
under
this
Plan
for any
Limitation
Year will
be limited
in accordance
with
Section
4.4(b),
unless
the "employer"
provides
other
limitations
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections).

 

(d)
Time
when
"annual
additions"
credited.
An "annual
addition"
is credited
to the
Account
of a Participant
for
a particular
Limitation
Year if
it as allocated
to the
Participant's
Account
under the
Plan
as of any
date
within
that
Limitation
Year.
Ho wever,
an amount
is not
deemed
allocated
as of any
date
within
a Limitation
Year if
such
allocation
is dependent
upon
participation
in the
Plan
as of any
date
subsequent
to such
date.

 

For
purposes
of this
subparagraph,
"employer"
contributions
are not
deemed
credited
to a Participant's
Account
for a particular
Limitation
Year
unless
the contributions
are actually
made
to the
Plan
no later
than
thirty
(30) days
after
the en
d of the
period
described
in Code
§404(a)(6)
applicable
to the
taxable
year with
or within
which
the particular
Limitation
Year ends.
In the
case
of an
Employer
that
is exempt
from
federal
income
tax (including
a governmental
employer),
Employer
contributions
are treated
as credited
to a Participant's
Account
for a particular
Limitation
Year
only
if the
contributions
are actually
made
to the
Plan
no later
than
the 15th
day of
the tenth
calendar
month
following
the end
of the
calendar
year or
Fiscal
Year
(as applicable,
depending
on the
basis
on which
the Employer
keeps
its books)
with
or within
which
the particular
Limitation
Year
ends.

 

(e)
Definitions.
For purposes
of this
Section,
the following
terms
shall
be defined
as follows:

 

(1)
"Annual
additions"
means
the sum
credited
to a Participant's
accounts
for any
Limitation
Year of
(a) "employer"
contributions,
(b) Employee
contributions
(except
as provided
below),
(c) Forfeitures,
(d) amounts
allocated
to an individual
medical
benefit
account,
as defined
in Code
§415(l)(2),
which
is part
of a pension
or annuity
plan
maintained
by the
"employer,"
(e) amounts
derived
from
contributions
paid
or accrued
which
are attributable
to post
-retirement
medical
benefits
allocated
to the
separate
account
of a key
employee
(as defined
in Code
§419A(d)(3))
under a welfare
benefit
fund
(as defined
in Code
§419(e))
maintained
by the
"employer"
and (f)
allocations
under a simplified
employee
pension.
Except,
however,
the Compensation
percentage
limitation
referred
to in paragraph
(e)(6)(ii)
below
shall
not apply
to: (1)
any contribution
for medical
benefits
(within
the meaning
of Code
§419A(f)(2))
after
separation
from
service
which
is otherwise
treated
as an "annual
addition,"
or (2)
any amount
otherwise
treated
as an "annual
addition"
under
Code
§415(l)(1).

 

(i)
       Restorative
payments.
"Annual
additions"
for purposes
of Code
§415 and
this
Section
shall
not include
restorative
payments.
A restorative
payment
is a payment
made
to restore
losses
to a Plan
resulting
fro m actions
by a Fiduciary
for which
there
is reasonable
risk
of liability
for breach
of a fiduciary
duty
under
the Act
or under
other
applicable
federal
or state
law,
where
Participants
who are
similarly
situated
are treated
similarly
with
respect
to the
payments.
Generally,
payments
are restorative
payments
only
if the
payments
are made
in order
to restore
some
or all
of the
Plan's
losses
due to
an action
(or a failure
to act)
that
creates
a reasonable
risk
of liability
for such
a breach
of fiduciary
duty
(other
than
a breach
of fiduciary
duty
arising
from
failure
to remit
contributions
to the
Plan).
This
includes
payments
to a plan
made
pursuant
to a Department
of Labor
order,
the Department
of Labor's
Voluntary
Fiduciary
Correction
Program,
or a court-approved
settlement,
to restore
losses
to a qualified
defined
contribution
plan
on

account
of the
breach
of fiduciary
duty
(other
than
a breach
of fiduciary
duty
arising
from
failure
to remit
contributions
to the
Plan).
Payments
made to
the Plan
to make
up for
losses
due merely
to market
fluctuations
and other
payments
that
are
not made
on account
of a reasonable
risk
of liability
for breach
of a fiduciary
duty
under
the Act
are not
restorative
payments
and generally
constitute
contributions
that
are considered
"annual
additions."

 

(ii)
Other
amounts.
"Annual
additions"
for purposes
of Code
§415 and
this
Section
shall
not include:
(A) The
direct
transfer
of a benefit
or employee
contributions
from
a qualified
plan
to this
Plan;
(B) Rollover
contributi
ons (as
described
in Code
§§401(a)(31),
402(c)(1),
403(a)(4),
403(b)(8),
408(d)(3),
and 457(e)(16));
(C) Repayments
of loans
made
to a Participant
from
the Plan;
and (D)
Repayments
of amounts
described
in Code
§411(a)(7)(B)
(in accordance
with

Code
§411(a)(7)(C))
and Code
§411(a)(3)(D)
or repayment
of contributions
to a governmental
plan
(as defined
in

Code
§414(d))
as described
in Code
§415(k)(3),
as well
as Employer
restorations
of benefits
that
are required
pursuant
to such
repayments.

    	 

    	 

    

 

 

(2)
"Defined
contribution
dollar
limitation"
 means $40,000
as adjusted
under Code
§415(d).

 

(3)
"Employer"
means,
for purposes
of this
Section,
the Employer
that
adopts
this
Plan and
all Affiliated
Employers,
except
that
for purposes
of this
Section,
the determination
of whether
an entity
is an Affiliated
Employer
shall
be made
by applying
Code §415(h).

 

(4)
"Excess
amount"
means the
excess
of the
Participant's
"annual
additions"
for the
Limitation
Year
over
the "maximum
permissible
amount."

 

(5)
"Master
or prototype
plan"
means
a plan
the form
of which
is the
subject
of a favorable
opinion
letter
from
the Internal

Revenue
Service.

 

(6)
"Maximum
permissible
amount"
means,
except
to the
extent
permitted
under this
Plan
and Code
§414(v),
the maximum
"annual
addition"
that
may be
contributed
or allocated
to a Participant's
Accounts
under
the Plan
for any
Limitation
Year,
which
shall
not exceed
the lesser
of:

 

(i)
       the
"defined
contribution
dollar
limitation,"
or

 

(ii)
one
hundred
percent
(100%)
of the
Participant's
415 Compensation
for the
Limitation
Year.

 

The
415 Compensation
Limitation
referred
to in (ii)
shall
not apply
to any
contribution
for medical
benefits
after
separation
from
service
(within
the meaning
of Code
§§401(h)
or 419A(f)(2))
which
is otherwise
treated
as an "annual
addition."

 

If
a short
Limitation
Year is
created
because
of an amendment
changing
the Limitation
Year to
a diff
erent
twelve
(12)
consecutive
month
period,
the "maximum
permissible
amount"
will not
exceed
the "defined
contribution
dollar
limitation"
multiplied
by a fraction,
the numerator
of which
is the
number
of months
in the
short
Limitation
Year and
the denominator
of which
is twelve
(12).

 

(f)
Special
rules.

 

(1)
Aggregation
of plans.
For purposes
of applying
the limitations
of Code
§415,
all defined
contribution
plans (without
regard
to whether
a plan
has been
terminated)
ever
maintained
by the
"employer"
(or a "predecessor
employer")
under
which
the Participant
receives
"annual
additions"
are treated
as one
defined
contribution
plan.
For purposes
of this
Section:

 

(i)
       A former
"employer"
is a "predecessor
employer"
with
respect
to a participant
in a plan
maintained
by an "employer"
if the
"employer"
maintains
a plan
under which
the participant
had accrued
a benefit
while
performing
services
for the
former
"employer,"
but only
if that
benefit
is provided
under
the plan
maintained
by the
"employer."
For this
purpose,
the "formerly
affiliated
plan"
rules
in Regulation
§1.415(f)-1(b)(2)
apply
as if the
"employer"
and "predecessor
employer"
constituted
a single
employer
under the
rules
described
in Regulation
§1.415(a)
-1(f)(1)
and (2)
immediately
prior
to the
"cessation
of affiliation"
(and as
if they
constituted
two,
unrelated
employers
under
the rules
described
in Regulation
§1.415(a)-1(f)(1)
and (2)
immediately
after
the "cessation
of affiliation")
and "cessation
of affiliation"
was the
event
that
gives
rise
to the
"predecessor
employer"
relationship,
such as
a transfer
of benefits
or

plan
sponsorship.

 

(ii)
With
respect
to an "employer"
of a Participant,
a former
entity
that antedates
the "employer"
is a "predecessor
employer"
with respect
to the
Participant
if, under
the facts
and circumstances,
the "employer"
constitutes
a continuation
of all
or a portion
of the
trade
or business
of the
former
entity.

 

(2)
Break-up
of an affiliated
employer
or an affiliated
service
group.
For purposes
of aggregating
plans
for Code
§415,
a "formerly
affiliated
plan"
of an "employer"
is taken
into
account
for purposes
of applying
the Code
§415 limitations
to the
"employer,"
but the
"formerly
affiliated
plan"
is treated
as if it
had terminated
immediately
prior
to the
"cessation
of affiliation."
For purposes
of this
paragraph,
a "formerly
affiliated
plan"
of an "employer"
is a plan
that,
immediately
prior
to the
"cessation
of affiliation,"
was actually
maintained
by one
or more
of the
entities
that constitute
the "employer"
(as determined
under
the employer
affiliation
rules
described
in Regulation
§1.415(a)-1(f)(1)
and (2)),
and immediately
after
the "cessation
of affiliation,"
is not
actually
maintained
by any
of the entities
that constitute
the "employer"
(as determined
under the
employer
affiliation
rules described
in Regulation
§1.415(a)-1(f)(1)
and (2)).
For purposes
of this
paragraph,
a "cessation
of affiliation"
means the
event
that
causes
an entity
to no longer
be aggregated
with
one or
more
other
entities
as a single
"employer"
under
the employer
affiliation
rules described
in Regulation
§1.415(a)
-1(f)(1)
and (2)
(such
as the sale
of a subsidiary

outside
a controlled
group),
or that
causes
a plan
to not
actually
be maintained
by any
of the
entities
that
constitute
the "employer"
under the
employer
affiliation
rules
of Regulation
§1.415(a)
-1(f)(1)
and (2)
(such
as a transfer
of plan
sponsorship
outside
of a controlled
group).

 

(3)
Mid-year
aggregation.
Two or more
defined
contribution
plans
that
are not
required
to be aggregated
pursuant
to Code
§415(f)
and the
Regulations
thereunder
as of the
first
day of
a Limitation
Year
do not
fail
to satisfy
the requirements
of Code
§415 with
respect
to a Participant
for the
Limitation
Year
merely
because
they
are aggregated
later
in that
Limitation
Year,
provided
that
no "annual
additions"
are credited
to the
Participant's
Account
after
the date
on which
the plans
are required
to be aggregated.

    	 

    	 

    

 

4.5
ADJUSTMENT
FOR EXCESS
ANNUAL
ADDITIONS

 

Notwithstanding
any provision
of the
Plan
to the
contrary,
if the
"annual
additions"
(as defined
in Section
4.4)
are exceeded
for any
Participant,
then
the Plan
may only
correct
such
excess
in accordance
with
the Employee
Plans
Compliance
Resolution
Syste
m (EPCRS)
as set
forth
in Revenue
Procedure
2008-50
or any
superseding
guidance.

 

4.6
ROLLOVERS

 

(a)
Acceptance
of "rollovers"
into
the Plan.
If elected
in the
Adoption
Agreement
and with
the consent
of the
Administrator
(such
consent must
be exercised
in a nondiscriminatory
manner
and applied
uniformly
to all
Participants),
the Plan
may accept
a "rollover,"
provided
the "rollover"
will not
jeopardize
the tax-exempt
status
of the
Plan
or create
adverse
tax consequences
for the
Employer.
The amounts
rolled
over
shall
be separately
accounted
for in
a "Participant's
Rollover
Account."
Furthermore,
any

Roth
Elective
Deferrals
that
are accepted
as "rollovers"
in this
Plan
on or after
January
1, 2006
shall
be separately
accounted
for.

A Participant's
Rollover
Account
shall
be fully
Vested
at all
times
and shall
not be
subject
to Forfeiture
for any
reason.
Fo r purposes
of this
Section,
the term
Participant
shall
include
any Eligible
Employee
who is
not yet
a Participant,
if, pursuant
to the
Adoption
Agreement,
"rollovers"
are permitted
to be accepted
from
Eligible
Employees.
In addition,
for purposes
of this
Secti
on the
term
Participant
shall
also
include
Former
Employees
if the
Employer
and Administrator
consent
to accept
"rollovers"
of distributions
made
to Former
Employees
from
any plan
of the
Employer.

 

(b)
Treatment
of "rollovers"
under
the Plan.
Amounts
in a Participant's
Rollover
Account
shall
be held
by the
Trustee
(or Insurer)
pursuant
to the
provisions
of this
Plan
and may
not be
withdrawn
by, or distributed
to the
Participant,
in whole
or in part,
except
as elected
in the
Adoption
Agreement
and Subsection
(c) below.
The Trustee
(or Insurer)
shall
have
no duty
or responsibility
to inquire
as to the
propriety
of the
amount,
value
or type
of assets
transferred,
nor to
conduct
any due
dili
gence
with
respect
to such
assets;
provided,
however,
that
such
assets
are otherwise
eligible
to be held
by the
Trustee
(or Insurer)
under
the terms
of this
Plan.

 

(c)
Distribution
of "rollovers."
At such
time as
the conditions
set forth
in the
Adoption
Agreement
have
been satisfied,
the Administrator,
at the election
of the Participant,
shall
direct
the distribution
of up to the entire
amount
credited
to the R ollover
Account
maintained
on behalf
of such
Participant.
Any distribution
of amounts
held
in a Participant's
Rollover
Account
shall
be made
in a manner
which
is consistent
with
and satisfies
the provisions
of Sections
6.5 and
6.6, including,
but not limited
to, all
notice
and consent
requirements
of Code
§§411(a)(11)
and 417
and the
Regulations
thereunder.
Furthermore,
unless
otherwise
elected
in the
Adoption
Agreement,
such
amounts
shall
be considered
to be part
of a Participant's
benefit
in determining
whet
her an
involuntary
cash-out
of benefits
may be
made
without
Participant
consent.

 

(d)
"Rollovers"
maintained
in a separate
account.
The Administrator
may direct
that
"rollovers"
made
after
a Valuation
Date
be segregated
into
a separate
account
for each
Participant
until
such
time
as the
allocations
pursuant
to this
Plan
have
been made,
at which
time
they
may remain
segregated,
invested
as part of
the general
Trust
Fund
or, if
elected
in the
Adoption
Agreement,
directed
by the
Participant.

 

(e)
Limits
on accepting
"rollovers."
Prior
to accepting
any "rollovers"
to which
this
Section
applies,
the Administrator
may require
the Employee
to establish
(by providing
opinion
of counsel
or otherwise)
that
the amounts
to be rolled
over
to this
P lan meet
the requirements
of this
Section.
The Employer
may instruct
th e Administrator,
operationally
and on
a nondiscriminatory
basis,
to limit
the source
of "rollover"
contributions
that
may be
accepted
by the
Plan.

 

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

 

(1)
A "rollover"
means:
(i) amounts
transferred
to this
Plan
directly
from
another
"eligible
retirement
plan;"
(ii)
distributions
received
by an Employee
from
other
"eligible
ret irement
plans"
which
are eligible
for tax-free
rollover
to an "eligible
retirement
plan"
and which
are transferred
by the
Employee
to this
Plan
within
sixty
(60) days
following
receipt
thereof;

and
(iii)
any other
amounts
which
are eligible
to be rolled
over
to this
Plan
pursuant
to the
Code
or any
other
federally
enacted
legislation.

 

(2)
An "eligible
retirement
plan"
means
an individual
retirement
account
described
in Code
§408(a),
an individual
retirement
annuity
described
in Code
§408(b)
(other
than
an endowment
contract),
a qualified
trust
(an employees'
trust
described
in Code
§401(a)
which
is exempt
from
tax under
Code
§501(a)),
an annuity
plan
described
in Code
§403(a),
an eligible

deferred
compensation
plan
described
in Code
§457(b)
which
is maintained
by an eligible
employer
described
in Code

§457(e)(1)(A),
and an annuity
contract
described
in Code
§403(b).

 

4.7
PLAN-TO-PLAN
TRANSFERS
FROM QUALIFIED
PLANS

 

(a)
Transfers
into
this
Plan.
W ith the
consent of
the Administrator,
amounts
may be transferred
(within
the meaning
of Code
§414(l))
to this
Plan
from
other
tax qualified
plans
under
Code §401(a),
provided
the plan
from
which such
funds
are transferred
permits
the transfer
to be made
and the
transfer
will not
jeopardize
the tax-exempt
status
of the
Plan
or Trust
or create
adverse
tax consequences
for the
Employer.
Prior
to accepting
any transfers
to which
this
Section
applies,
the Administrator
may require
an opinion
of counsel
that
the amounts
to be transferred
meet the
requirements
of this
Section.
The amounts
transferred
shall
be set up
in a separate
account
herein
ref erred
to as a "Participant's
Transfer
Account."
Furthermore,
for
vesting
purposes,
the Participant's
Transfer
Account
shall
be treated
as a separate
"Participant's
Account."

 

(b)
Accounting
of transfers.
Amounts
in a Participant's
Transfer
Account
shall
be held
by the
Trustee
(or Insurer)
pursuant
to the
provisions
of this
Plan
and may
not be withdrawn
by, or distributed
to the
Participant,
in whole
or in part,
except
as el ected
in

    	 

    	 

    

 

the
Adoption
Agreement
and Subsection
(d) below,
provided
the restrictions
of Subsection
(c) below
and Section
6.16
are satisfied.
The Trustee
(or Insurer)
shall
have
no duty
or responsibility
to inquire
as to the
propriety
of the
amount,
value
or type
of assets
transferred,
nor to
conduct
any due diligence
with respect
to such
assets;
provided,
however,
that
such
assets
are otherwise
eligible
to be held
by the
Trustee
(or Insurer)
under
the terms
of this
Plan.
Notwithstanding
anything
in this
Sect
ion to
the
contrary,
transferred
amounts
are not
required
to be separately
accounted
for and
may be
combined
with the
corresponding
Account
maintained
in this Plan
provided
all rights,
benefits
and features
and other
attributes
are identical
with respect
to each
account,
or are
identical
after
the combination
and such
combination
does not
result
in the
impermissible
elimination
of any
Code

§411(d)(6)
protected
benefits.

 

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

 

(d)
Distribution
of plan-to-plan
transfer
amounts.
At Normal
Retirement
Date,
or such
other
date
when
the Participant
or the

Participant's
Beneficiary
shall
be entitled
to receive
benefits,
the Participant's
Transfer
Account
shall
be used
to provide
additional
benefits
to the
Participant
or the
Participant's
Beneficiary.
Any distribution
of amounts
held
in a Participant's
Transfer
Account
shall
be made
in a manner
which
is consistent
with and
satisfies
the provisions
of Sections
6.5 and
6.6,
including,
b ut not
limited
to, all
notice
and consent
requirements
of Code
§§411(a)(11)
and 417
and the
Regulations
thereunder.
Furthermore,
such
amounts
shall
be considered
to be part
of a Participant's
benefit
in determining
whether
an involuntary
cash
-out of
benefits
may be made
without
Participant
consent.

 

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

 

(f)
Protected
benefits.
Notwithstanding
anything
herein
to the
contrary,
a transfer
directly
to this
Plan
from
another
qualified
plan
(or a transaction
having
the effect
of such
a transfer)
shall
not result
in the
elimination
or reduction
of any
"Section
411(d)(6)
protected
benefit"
(as described
in Section
8.1(e))
that
may not
be eliminated
or reduced
pursuant
to Regulation
§ 1.411(d)-4.

 

4.8
AFTER-TAX
VOLUNTARY
EMPLOYEE
CONTRIBUTIONS

 

(a)
Not permitted
in Money
Purchase
or Profit
Sharing
Plan.
Except
as provided
in Section
4.8(b)
below,
this
Plan
will not
accept
after-tax
voluntary
Employee
contributions.
If this
is an amendment
to a Plan
that
had previously
al lowed
after-tax
voluntary
Employee
contributions,
then
this
Plan
will not
accept
after-tax
voluntary
Employee
contributions
for Plan
Years
beginning
after
the Plan
Year in
which
this
Plan
is adopted
by the
Employer.

 

(b)
After-tax
voluntary
Employee
contributions
allowed
in 401(k)
Plans.
For 401(k)
Plans,
if elected
in the
Adoption
Agreement,
each Participant
who is eligible
to make Elective
Deferrals
may, in accordance
with nondiscriminatory
procedures
established
by the
Administrator,
elect
to make after-tax
voluntary
Employee
contributions
to this
Plan.
Such
contributions
must generally
be paid
to the
Trustee
(or Insurer)
within
a reasonable
period
of time after
being
received
by the
Employer.
An aft
er-tax
voluntary
Employee
contribution
is any contribution
(other
than
Roth
Elective
Deferrals)
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 separately
accounted
for under
the Plan.

 

(c)
Full
vesting.
The balance
in each
Participant's
Voluntary
Contribution
Account
shall
be fully
Vested
at all
times
and shall
not be
subject
to Forfeiture
for any
reason.

 

(d)
Distribution
at any
time.
A Participant
may elect
at any
time to withdraw
after-tax
voluntary
Employee
contributions
from
such
Participant's
Voluntary
Contribution
Account
and the
actual
earnings
thereon
in a manner
which
is consistent
with
and satisfies
the provisions
of Section
6.5,
including,
but not
limited
to, all
notice
and consent
requirements
of Code
§§411(a)(11)
and

417
and the
Regulations
thereunder.
If the
Administrator
maintains
sub-accounts
with
respect
to after-tax
voluntary
Employee

contributions
(and earnings
thereon)
which
were
made
on or before
a specified
date,
a Participant
shall
be permitted
to designate
which
sub-account
shall
be the
source
for the
withdrawal.
Forfeitures
of Employer
contributions
shall
not occur
solely
as a result

of
an Employee's
withdrawal
of after-tax
voluntary
Employee
contributions.

 

In
the event
a Participant
has received
a hardship
distribution
under the
safe
harbor
hardship
provisions
of the
Code
§401(k)
Regulations
from
any plan
maintained
by the
Employer,
then
the Participant
shall
be barred
from
making
any after-tax
voluntary
Employee
contributions
for a period
of six
(6) months
after
receipt
of the
hardship
distribution.
Any prior
elections
to make

after-tax
voluntary
Employee
contributions
will
become
void
upon the
receipt
of the
hardship
distribution
that
triggers
the suspension
period
of this
paragraph.

 

(e)
Used to
provide
benefits.
At Normal
Retirement
Date,
or such
other
date
when the
Participant
or the
Participant's
Beneficiary
is entitled
to receive
benefits,
the Participant's
Voluntary
Contribution
Account
shall
be used
to provide
additi
onal
benefits
to the
Participant
or the
Participant's
Beneficiary.

 

(f)
Prior
mandatory
contributions.
To the
extent
a Participant
has previously
made
mandatory
Employee
contributions
under prior
provisions
of this
Plan,
such
contributions
will be treated
as after-tax
voluntary
Employee
contributions,
except
that
the provisions
of Subsection
(d) above
permitting
a distribution
at any
time shall
not apply
to mandatory
Employee
contributions.

    	 

    	 

    

 

 

4.9
QUALIFIED
VOLUNTARY
EMPLOYEE
CONTRIBUTIONS

 

(a)
Maintenance
of existing
QVEC Accounts.
If this
is an amendment
to a Plan
that
previously
permitted
deductible
voluntary
Employee
contributions,
then
each Participant
who made
"qualified
voluntary
Employee
contributions"
within
the meaning
of Code
§219(e)(2)
as it existed
prior
to the
enactment
of the
Tax Reform
Act of
1986, shall
have
such contributions
held
in a separate
Qualified
Voluntary
Employee
Contribution
Account
which
shall be
fully
Vested
at all
times.
Such contributions,
however,
shall
not be
permitted
for taxable
years
beginning
after
December
31, 1986.

 

(b)
Distribution
from QVEC
Account.
A Participant
may, upon
written
request
delivered
to the
Administrator,
make withdrawals
from
such
Participant's
Qualified
Voluntary
Employee
Contribution
Account.
Any distribution
shall
be made
in a manner
which
is consistent
with
and satisfies
the provisions
of Section
6.5,
including,
but not
limited
to, all
notice
and cons
ent requirements
of Code
§§411(a)(11)
and 417
and the
Regulations
thereunder.

 

(c) Used
to provide
benefits.
At Normal
Retirement
Date,
or such
other
date
when
the Participant
or the
Participant's
Beneficiary
is entitled
to receive
benefits,
the Qualified
Voluntary
Employee
Contribution
Account
shall
be used
to provide
additional
benefits
to the
Participant
or the
Participant's
Beneficiary.

 

4.10
PARTICIPANT
DIRECTED
INVESTMENTS

 

(a)
Directed
investment
options
allowed.
If elected
in the
Adoption
Agreement,
all Participants
may direct
the Trustee
(or Insurer)
as to the investment
of all
or a portion
of their
individual
Account
balances
as set
forth in
the Adoption
Agreement
and within
limits
set by
the Employer.
Participants
may direct
the Trustee
(or Insurer),
in writing
(or in such
other
form which
is acceptable
to the Trustee
(or Insurer)),
to invest
their
accounts
in specific
assets,
specific
funds
or other
investments
per mitted
under
the Plan
and the
Participant
Direction
Procedures.
That
portion
of the Account
of any
Participant
that
is subject
to investment
direction
of such
Participant
will be
considered
a Participant
Directed
Account.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4.11
INTEGRATION
IN MORE
THAN
ONE PLAN

 

If the
Employer
maintains
qualified
retirement
plans
that
provide
for permitted
disparity
(integration),
the provisions
of

Section
4.3(b)(2)
will apply.

    	 

    	 

    

 

4.12
QUALIFIED
MILITARY
SERVICE

 

(a)
USERRA.
Notwithstanding
any provisions
of this
Plan
to the
contrary,
contributions,
benefits
and service
credit
with
respect
to qualified
military
service
will
be provided
in accordance
with
Code
§414(u).
Furthermore,
loan repayments
may be
suspended
under
this
Plan
as permitted
under Code
§414(u)(4).

 

(b)
Benefit
accrual.
If the
Employer
elects
in the
Adoption
Agreement
to apply
this
Subsection,
then
effective
as of the
date
specified
in the
Adoption
Agreement
but no
earlier
than
the first
day of
the 2007
Plan
Year,
for benefit
accrual
purposes,
th e Plan
treats
an individual
who becomes
Totally
and Permanently
disabled
or dies
while
performing
"qualified
military
service"
(as defined
in Code
§414(u))
with
respect
to the
Employer
as if the
individual
had resumed
employment
in accordance
with
the individual's
reemployment
rights
under Uniformed
Services
Employment
and Reemployment
Rights
Act of
1994, as
amended
(USERRA),
on the
day preceding
Total
and Permanent
Disability
and terminated
employment
on the
actual
date
of Total
and Permanent
Disability.

 

The
Plan
will determine
the amount
of after-tax
voluntary
Employee
contributions
and Elective
Deferrals
of an individual
treated
as reemployed
under
this
Section
for purposes
of applying
paragraph
Code
§414(u)(8)(C)
on the
basis
of the
individual
's average
actual
after-tax
voluntary
Employee
contributions
or Elective
Deferrals
for the
lesser
of: (1)
the 12-month
period
of service
with
the Employer
immediately
prior
to "qualified
military
service"
(as defined
in Code
§414(u));
or (2)
the actual
l ength
of continuous
service
with
the Employer.

 

(c) Death
benefits.
In the
case
of a death
occurring
on or after
January
1, 2007,
if a Participant
dies
while
performing
"qualified
military
service"
(as defined
in Code
§414(u)),
the Participant's
Beneficiary
is entitled
to any
addit
ional
benefits
(other
than
benefit
accruals
(unless
otherwise
elected
in the
Adoption
Agreement)
relating
to the
period
of "qualified
military
service"
but incl
uding
vesting
credit
for such
period
and any
other
ancillary
life insurance
or other
survivor
benefits)
provided
under the
Plan
as if the
Participant
had resumed
employment
and then
terminated
employment
on account
of death.
Moreover,
the Plan
will credit
the Participant's
"qualified
military
service"
as service
for vesting
purposes,
as though
the Participant
had resumed
employment

under
Uniformed
Services
Employment
and Reemployment
Rights
Act of
1994, as
amended
(USERRA)
immediately
prior
to the

Participant's
death.

 

4.13
TRANSFER
OF ASSETS
FROM
TERMINATED
EMPLOYER
DEFINED
BENEFIT
PENSION
PLAN

 

(a)
Transferred
DB Assets.
The Employer
may transfer
an amount
to this
Plan
from
the Employer's
terminated
defined
benefit
plan
in accordance
with
Code §4980(d)(2)(B).
The
amounts
transferred
into
this
Plan
shall
be held
in a "transferred
assets
suspension
account."
Amounts
released
from
the "transferred
assets
suspension
account"
pursuant
to the
provisions
of this
Section
shall
be allocated
in the
same manner
and to
the same
Participants
that
Employer
Nonelective
Contributions
are allocated,
as described
in Section
4.3.
If the
Plan
does not
provide
for Nonelective
Contributions,
then
the amounts
released
from
the "transferred
assets
suspension
account"
pursuant
to the
provisions
of this
Section
shall
be allocated
to each
Participant
eligible
to share
in allocations
in the
same ratio
as such
Participant's
Compensation
bears
to the
total
Compensation
of all
Participants
eligible
to share
in allocations.

 

The
Employer
will
determine,
in its
discretion,
the amount
to be released
from
the "transferred
suspension
account."
However,
the minimum
amount
that
shall
be released
from
the "transferred
assets
suspension
account"
for any
Plan
Year
is the
percentage
of the
account
based
on the
following
table:

 

	
        Years
        Since
        Transfer

         
	
        Percentage
        of Suspense
        Account

         

	0	14.2857%
	1	16.6667%
	2	20.0000%
	3	25.0000%
	4	33.3333%
	5	50.0000%
	6	100.0000%

 

(b)
Earnings.
The amount
in the
"transferred
suspension
account"
shall
be credited
with earnings
and losses
as of each
Valuation
Date
in accordance
with Section
4.3,
except
that
Participants
may not
direct
the investment
of amounts
in the "transferred
suspension
account."
Amounts
released
from
the account
prior
to the
last
day of
a Plan
Year shall
not share
in such earnings
or losses.

 

(c)
Annual
additions.
Notwithstanding
anything
in the
Plan
to the
contrary,
amounts
in the
"transferred
suspension
account"
shall
not be
treated
as "annual
additions"
pursuant
to Section
4.4 until
such
amounts
are released
and allocate
d to Participants.

 

(d)
Plan
termination.
 If upon
the termination
of the
Plan
any amount
credited
to the
"transferred
suspension
account"
remains
unallocated,
then
such
amount
shall
be allocated
as provided
above
to the
Accounts
of Participants
as of such
date
of Plan
termination,
but limited
as to each
Participant
to avoid
allocating
exceeding
the limitations
of Code
§415 as
set forth
in Section

4.4.
Any amount
that
cannot
be allocated
to a Participant
under the
preceding
sentence
shall
be reallocated
to remaining
Participants,
but only
to the
extent
that
no Participant
receives
an amount
that
exceeds
the limitations
of Code
§415 as
set forth
in Section
4.4.
The reallocation
process
will continue
until
all amounts
in the "transferred
suspension
account"
have
been reallocated.
If all Participants
have
received
the maximum
"annual
addition"
permitted
pursuant
to Section
4.4,
then
any remaining
amounts
shall
revert
to the
Employer.

    	 

    	 

    

 

 

ARTICLE
V 

VALUATIONS

 

5.1
VALUATION
OF THE
TRUST
FUND

 

The
Administrator
shall
direct
the Trustee
(or Insurer),
as of each
Valuation
Date,
to determine
the net
worth
of the
assets
comprising
the Trust
Fund
as it exists
on the
Valuation
Date.
In determining
such
net worth,
the Trustee
(or In
surer)
shall
value
the assets
comprising
the Trust
Fund at
their
fair
market
value
as of the
Valuation
Date
and may
deduct
all expenses
for which
th e Trustee
(or Insurer)
has not
yet been
paid
by the
Employer
or the
Trust
Fund.
The Trustee
(or Insurer),
wh en determining
the net
worth
of the
assets,
may update
the value
of any
shares
held
in a Participant
Directed
Account
by reference
to the
number
of shares
held
on behalf
of the
Participant,
priced
at the
market
value
as of the
Valuation
Date.

 

5.2
METHOD
OF VALUATION

 

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

 

ARTICLE
VI

DETERMINATION
AND DISTRIBUTION
OF BENEFITS

 

6.1
DETERMINATION
OF BENEFITS
UPON RETIREMENT

 

Every
Participant
may terminate
employment
with
the Employer
and retire
for purposes
hereof
on the
Participant's
Normal
Retirement
Date
or Early
Retirement
Date.
However,
a Participant
may postpone
the severance
of employment
with
the Employer
to a later
date,
in which
event
the participation
of such
Participant
in the
Plan,
including
the right
to receive
allocations
pursuant
to

Section
4.3,
shall
continue
until
such
Participant's
Retirement
Date.
Upon
a Participant's
Retirement
Date,
or if elected
in the
Adoption Agreement,
the attainment
of Normal
Retirement
Date
without
severance
of employment
with
the Employer
(subject
to Sections
6. 11 and
12.2(e)),
or as soon
thereafter
as is practicable,
the Administrator
shall
direct
the distribution,
at the
election
of the Participant,
of the
Participant's
entire
Vested
interest
in the
Plan
in accordance
with Section
6.5.

 

6.2
DETERMINATION
OF BENEFITS
UPON DEATH

 

(a)
100% vesting
on death.
Upon
the death
of a Participant
before
the Participant's
Retirement
Date
or other
severance
of employment,
all amounts
credited
to such
Participant's
Combined
Account
shall,
if elected
in the
Adoption
Agreement,
become
fully
Vested.
The Administrator
shall
direct,
in accordance
with the
provisions
of Sections
6.6 and
6.7,
the distribution
of the
deceased
Participant's
Vested
accounts
to the
Participant's
Beneficiary.

 

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

 

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

 

(d)
Beneficiary
designation.
 Unless
otherwise
elected
in the
manner
prescribed
in Section
6.6,
the Beneficiary
of the

Pre-Retirement
Survivor
Annuity
shall
be the
Participant's
surviving
Spouse.
Except,
however,
the Participant
may designate
a

Beneficiary
other
than
the Spouse
for the
Pre-Retirement
Survivor
Annuity
if:

 

(1)
the Participant
and the
Participant's
Spouse
have
validly
waived
the Pre-Retirement
Survivor
Annuity
in the
manner
prescribed
in Section
6.6,
and the
Spouse
has waived
the right
to be the
Participant's
Beneficiary,

 

(2)
the Participant
is legally
separated
or has
been abandoned
(within
the meaning
of local
law) and
the Participant
has a court
order
to such
effect
(and there
is no "qualified
domestic
relations
order"
as defined
in Code
§41 4(p)
which
provides
otherwise),

 

(3)
the Participant
has no
Spouse,
or

 

(4)
the Spouse
cannot
be located.

    	 

    	 

    

 

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

 

(e)
Beneficiary
if no Beneficiary
elected
by Participant.
 A Participant
may, at any
time,
designate
a Beneficiary
for death
benefits,
if any, payable
under
the Plan
that
are in
excess
of the
Pre-Retirement
Survivor
Annuity
without
the waiver
or consent
of the
Participant's
Spouse.
In the
event
no valid
designation
of Beneficiary
exists,
or if the
Beneficiary
with
respect
to a portion
of a Participant's
death
benefit
is not
alive
at the
time of
the Participant's
death
and no
contingent
Beneficiary
has been
designated,
then
such
portion
of the
death
benefit
will be
paid
in the
following
order
of priority,
unless
the Employer
specifies
a different
order
of priority
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections),
to:

 

(1)
The Participant's
surviving
Spouse;
(2)
The Participant's
issue,
per stirpes;

(3)
The Participant's
surviving
parents,
in equal
shares;
or

 

(4)
The Participant's
estate.

 

If
the Beneficiary
does not
predecease
the Participant,
but dies
prior
to distribution
of the
death
benefit,
the death
benefit
will
be paid
to the
Beneficiary's
"designated
Beneficiary"
(or if
there
is no "designated
Beneficiary,"
to the
Beneficiary's
estate).
For purposes
of these
provisions,
and with
respect
to any
Beneficiary
designations,
adopted
children
shall
be treated
as children.

 

(f)
Divorce
revokes
spousal
Beneficiary
designation.
 Notwithstanding
anything
in this
Section
to the
contrary,
unless
otherwise
elected
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections),
if a Participant
has designated
the Spouse
as a Beneficiary,
then
a divorce
decree
that
relates
to such
Spouse
shall
revoke
the Participant's
designation
of the
Spouse
as a Beneficiary
unless
the decree
or a "qualified
domestic
relations
order"
(within
the meaning
of Code
§414(p))
provides
otherwise
or a subsequent
Beneficiary
designation
is made.

 

(g)
Simultaneous
death
of Participant
and Beneficiary.
If a Participant
and his
or her Beneficiary
should
die simultaneously,
or under
circumstances
that
render
it difficult
or impossible
to determine
who predeceased
the other,
then
unless
the Partici
pant's
Beneficiary
designation
otherwise
specifies,
the Administrator
will
presume
conclusively
that the
Beneficiary
predeceased
the Participant.

 

(h)
Slayer
statute.
The Administrator
may apply
slayer
statutes,
or similar
rules
which
prohibit
inheritance
by a person
who murders
someone
from
whom
he or she
stands
to inherit,
under
applicable
state
laws
without
regard
to federal
pre-emption
of such
state
laws.

 

(i)
Insured
death
benefit.
If the
Plan
provides
an insured
death
benefit
and a Participant
dies
before
any insurance
coverage
to which
the Participant
is entitled
under
the Plan
is effected,
the death
benefit
from
such insurance
coverage
shall
be limi
ted to
the premium
which
was or
otherwise
would
have
been used
for such
purpose.

 

(j)
       Plan
terms
control.
In the
event
of any
conflict
between
the terms
of this
Plan
and the
terms
of any
Contract
issued
hereunder,
the Plan
provisions
shall
control.

 

6.3
DETERMINATION
OF BENEFITS
IN EVENT
OF DISABILITY

 

In
the event
of a Participant's
Total
and Permanent
Disability
prior
to the
Participant's
Retirement
Date
or other
severance
of employment,
all amounts
credited
to such
Participant's
Combined
Account
shall,
if elected
in the
Adoption
Agreement,
become
f ully
Vested.
In the
event
of a Participant's
Total
and Permanent
Disability,
the Participant's
entire
Vested
interest
in the
Plan
will be
distributable
and may
be distributed
in accordance
with
the provisions
of Sections
6.5 and
6.7.

 

6.4
DETERMINATION
OF BENEFITS
UPON TERMINATION

 

(a)
Payment
on severance
of employment.
If a Participant's
employment
with
the Employer
and any
Affiliated
Employer
is severed
for any
reason
other
than
death,
Total
and Permanent
Disability,
or attainment
of the
Participant's
Retirement
Date,
then
such
Participant
shall
be entitled
to such
benefits
as are
provided
herein.

 

Distribution
of the
funds
due to
a Terminated
Participant
shall
be made
on the
occurrence
of an event
which
would
result
in t he distribution
had the
Terminated
Participant
remained
in the
employ
of the
Employer
(upon
the Participant's
death,
Total
and Permanent
Disability,
Early
or Normal
Retirement).
However,
at the
election
of the
Participant,
the Administrator
shall
direc
t that
the entire
Vested
portion
of the
Terminated
Participant's
Combined
Account
be payable
to such
Terminated
Participant
provided
the conditions,
if any,
set forth
in the
Adoption
Agreement
have
been satisfied.
Any distribution
under
this
paragraph
shall
be m ade
in a manner
which
is consistent
with
and satisfies
the provisions
of Section
6.5,
including
but not
limited
to, all
notice
and consent
requirements
of Code
§§411(a)(11)
and 417
and the
Regulations
thereunder.

    	 

    	 

    

 

Regardless
of whether
distributions
in kind
are permitted,
in the
event the
amount
of the
Vested
portion
of the
Terminated
Participant's
Combined
Account
equals
or exceeds
the fair
market
value
of any
insurance
Contracts,
the Trustee
(or Insurer),
when
so directed
by the
Administrator
and agreed
to by the
Terminated
Participant,
shall
assign,
transfer,
and set
over
to such
Termi
nated
Participant
all Contracts
on such
Terminated
Participant's
life
in such
form
or with
such
endorsements,
so that
the settl
ement
options
and
forms
of payment
are consistent
with
the provisions
of Section
6.5.
In the
event
that
the Terminated
Participant's
Vested
portion
does
not at
least
equal
the fair
market
value
of the
Contracts,
if any,
the Terminated
Participant
may pay
o ver to
the Trustee
(or Insurer)
the sum
needed
to make
the distribution
equal
to the
value
of the
Contracts
being
assigned
or transferred,
or the
Tr ustee
(or Insurer),
pursuant
to the
Participant's
election,
may borrow
the cash
value
of the
Contracts
from
the Insurer
so that
the value
of the
Contracts
is equal
to the
Vested
portion
of the
Terminated
Participant's
Combined
Account
and then
assign
the Contracts
to th e Terminated
Participant.

 

Notwithstanding
the above,
unless
otherwise
elected
in the
Adoption
Agreement,
if the
value
of a Terminated
Participant's
Vested
benefit
derived
from
Employer
and Employee
contributions
does not
exceed
$5,000
(or such
lower
amount
as elected
in the
Ad option
Agreement),
the Administrator
shall
direct
that
the entire
Vested
benefit
be paid
to such
Participant
in a single
lump
-sum
as soon
as practical
without
regard
to the
consent
of the
Participant,
provided
the conditions,
if any, set
forth
in the
Adopt
ion Agreement
have

been
satisfied.
A Participant's
Vested
benefit
shall
not include
(1) qualified
voluntary
employee
contributions
within
the meaning
of Code
§72(o)(5)(B)
and (2)
if selected
in the
Conditions
for Distributions
Upon
Severance
of Employment
Section
of the
Adoption
Agreement,
the Participant's
Rollover
Account.
If a mandatory
distribution
is made
pursuant
to this
paragraph
and such
distribution
is greater
than
$1,000
and the
Participant
does not
elect
to have
such distribution
paid
directly
to an "eligible
retirement
plan"
specified
by the
Participant
in a "direct
rollover"
in accordance
with
Section
6.15
or to receive
the distribution
directly,
then
the Administrator

shall
transfer
such
amount
to an individual
retirement
account
described
in C ode
§408(a)
or an individual
retirement
annuity
described

in
Code
§408(b)
designated
by the
Administrator.
However,
if the
Participant
elects
to receive
or make
a "direct
rollover"
of such
amount,
then
the Administrator
shall
direct
the Trustee
(or Insurer
) to cause
the entire
Vested
benefit
to be paid
to such
Participant
in a single
lump
sum, or
make
a "direct
rollover"
pursuant
to Section
6.15,
provided
the conditions,
if any,
set forth
in the
Ad option
Agreement
have
been satisfied.
The Administrator
may establish
a uniform
and nondiscriminatory
procedure
as to whether
a Participant
who fails
to make
an Affirmative
Election
with
respect
to a mandatory
distribution
of $1,000
or less
is treated
a s having
made
a "direct
rollover"
election.
For purposes
of determining
whether
the $1,000
threshold
set forth
in this
paragraph
is met,
the mandatory
distribution
includes
amounts
in a Participant's
Rollover
Account.
For purposes
of determining
whether
the $5,000
threshold
in this
paragraph
is met,
a Participant's
Rollover
Account
is taken
into
account
unless
otherwise
elected
in the
Adoption
Agreement.
Furthermore,
the Administrator
may apply
this
paragraph
by treating
a Participant's
Roth
Elective
Deferral
Account
separately
from
the Participant's
other
Accounts.

 

(b)
Vesting
schedule.
The Vested
portion
of any Participant's
Account
shall
be a percentage
of such
Participant's
Account
determined
on the
basis
of the
Participant's
number
of Years
of Service
(or Periods
of Service
if the
elapsed
time
method
is elected)
according
to the
vesting
schedule
specified
in the
Adoption
Agreement.
However,
a Participant's
entire
interest
in t he Plan
shall
be non-forfeitable
upon
the Participant's
Normal
Retirement
Age (if
the Participant
is employed
by the
Employer
on or after
such
date).

 

(c)
EGTRRA
matching
vesting
schedule.
If the
Employer
maintained
a vesting
schedule
for matching
contributions
that
did not
comply
with
Code §411(a)(2)
as in effect
prior
to the
enactment
of the Economic
Growth
and Tax
Relief
Reconciliation
Act of

2001,
then
the matching
contribution
vesting
schedule
selected
in the
Adoption
Agreement
shall
apply
to Participants
who

complete
an Hour
of Service
in a Plan
Year beginning
after
December
31, 2001,
unless
a provision
was adopted
to have
the vesting
schedule
apply
to all
Participants.
However,
if specified
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections),
the matching
contribution
vesting
schedule
set forth
in the
Adoption
Agreement
shal l only
apply
to the
portion
of the
Participant's
Account
attributable
to matching
contributions
made
after
December
31, 2001
and matching
contributions
made
prior
to the
first
day of
the first
Plan
Year beginning
after
December
31, 2001
will vest
in accordance
with
the vesting
schedule
then
in effect.

 

(d)
PPA Employer
Nonelective
profit
sharing
vesting
schedule.
 For Plan
Years
beginning
after December
31, 2006,
if the

Employer
maintained
a vesting
schedule
for Employer
Nonelective
profit
sharing
contributions
that
did not
comply
with
Code

§411(a)(2)
as in effect
prior
to the
enactment
of the
Pension
Protection
Act of
2006, then
the vesting
schedule
selected
in the Adoption
Agreement
for Employer
Nonelective
profit
sharing
contributions
shall
apply
to Participants
who complete
an Hour
of Service
in a Plan
Year
beginning
after
December
31, 2006,
unless
a provision
was adopted
to have
the vesting
schedule
apply
to all Participants.
However,
if specified
in the
Adoption
Agreement,
the Employer
Nonelective
profit
sharing
contribution
vesting
schedule
set forth
in the
Adoption
Agreement
shall
only
apply
to the
portion
of the
Participant's
Account
attributable
to such contributions
made after
December
31, 2006
and contributions
made
prior
to such
date
will vest
in accordance
with
the vesting
schedule
then
in effect.

 

(e)
Top-heavy
vesting
schedule.
For any
Top-Heavy
Plan
Year,
the minimum
top-heavy
vesting
schedule
elected
by the
Employer
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections)
will automatically
apply
to the
Plan.
The minimum
top-heavy
vesting
schedule
applies
to all
benefits
within
the meaning
of Code
§411(a)(7)
except those
attributable
to Employee
contributions,
including
benefits
accrued
before
the effective
date
of Code
§416 and benefits
accrued
before
the Plan
became
top-heavy.
Further,
no decrease
in a Participant's
Vested
percentage
shall
occur
in the
event
the
Plan's
status
as top-heavy
changes
for any
Plan
Year.
However,
this
Subsection
does not
apply
to the
Account
balances
of any
Employee
who does
not have
an Hour
of Service
after
the Plan
has initially
become
top-heavy
and the
Vested
percentage
of such
Employee's
Participant's
Account
shall
be determined
without
regard
to this
Section
6.4(e).
Furthermore,
pursuant
to Code

§416(i)(4),
Participants
whose
employment
is governed
by a collective
bargaining
agreement
between
the Employer
and employee
representatives
under
which
retirement
benefits
were
the subject
of good
faith
bargaining
will
not be
subject
to this

Subsection
unless
otherwise
provided
in the
collective
bargaining
agreement.

    	 

    	 

    

 

If
in any
subsequent
Plan
Year
the Plan
ceases
to be a Top-Heavy
Plan,
then
unless
a specific
Plan
amendment
is made
to provide
otherwise,
the Administrator
will continue
to use
the vesting
schedule
in effect
while
the Plan
was a Top
-Heavy
Plan.

 

(f)
100% vesting
on partial
or full
Plan
termination.
 Upon
the complete
discontinuance
of the
Employer's
contributions
to the
Plan
(if this
is a profit
sharing
plan)
or upon
any full
or partial
termination
of the
Plan,
all amounts
then
credited
to the
Account
of any
affected
Participant
shall
become
100%
Vested
and shall
not thereafter
be subject
to Forfeiture.

 

(g)
No reduction
in Vested
percentage
due to
change
in vesting
schedule.
 If this is an
amended
or restated
Plan,
then
notwithstanding
the vesting
schedule
specified
in the
Adoption
Agreement,
the Vested
percentage
of a Participant's
Account
shall
not
be less
than
the Vested
percentage
attained
as of the
later
of the
Effective
Date
or adoption
date
of this
amendment
and restatement.
The computation
of a Participant's
nonforfeitable
percentage
of such
Participant's
interest
in the
Plan
shall
not be reduced
as the
result
of any
direct
or indirect
amendment
to this
Article,
or due to
changes
in the
Plan's
status
as a Top-Heavy
Plan.
Furthermore,
if the Plan's
vesting
schedule
is amended
(including
a change
in the calculation
of Years
of Service
or Periods
or Service),
then
the amended
schedule
will only
apply to
those
Participants
who complete
an Hour
of Service
after
the effective
date
of the
amendment.

 

(h)
Continuation
of old
schedule
if 3 Years
of Service.
If the
Plan's
vesting
schedule
is amended,
or if the
Plan
is amended

in
any way
that
directly
or indirectly
affects
the computation
of the
Participant's
nonforfeitable
percentage
or if the
Plan
is deemed
amended
by an automatic
change
to a top-heavy
vesting
schedule,
then
each Participant
with
at least
three
(3) Years
of Service
(or Periods
of Service
if the
elapsed
time method
is elected)
as of the
expiration
date
of the
election
period
may elect
to h ave
such
Participant's
nonforfeitable
percentage
computed
under
the Plan
without
regard
to such
amendment
or change.
If a Participant
fails
to make such
election,
then
such Participant
shall
be subject
to the
new vesting
schedule.
The Participant'
s election
period
shall
commence on
the adoption
date
of the
amendment,
or deemed
adoption
date,
and shall
end sixty
(60) days
after
the latest
of:

 

(1)
the adoption
date,
or deemed
adoption
date,
of the
amendment,
(2) the
effective
date
of the
amendment,
or

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

 

(i)       Excludable
service
for vesting.
In determining
Years
of Service
or Periods
of Service
for purposes
of vesting
under the
Plan,
Years
of Service
or Periods
of Service
shall
be excluded
as elected
in the
Adoption
Agreement.
For this
purpose,
a predecessor
plan
is described
in Regulation
§1.411(a)-5(b)(3).

 

6.5
DISTRIBUTION
OF BENEFITS

 

(a)
Qualified
Joint
and Survivor
Annuity.

 

(1)
Unless
otherwise
elected
as provided
below,
a Participant
who is
married
on the
Annuity
Starting
Date
and who
does not
die before
the Annuity
Starting
Date
shall
receive
the value
of all
Plan
benefits
in the
form
of a Joint
and Survivor
Annuity.
The Joint
and Survivor
Annuity
is an annuity
that
commences
immediately
and shall
be equal
in value
to a single
life
annuity.
Such joint
and survivor
benefits
following
the Participant's
death
shall
continue
to the
Spouse
during
the

Spouse's
lifetime
at a rate
equal
to either
fifty
percent
(50%),
seventy-five
percent
(75%)
(or,
sixty-six
and two-thirds
percent

(66
2/3%)
if the
Insurer
used
to provide
the annuity
does not
offer
a joint
and seventy-five
percent
(75%)
survivor
annuity),
or one
hundred
percent
(100%)
of the
rate
at which
such
benefits
were payable
to the
Participant.
Unless
otherwise
elected
in the
Adoption
Agreement,
a joint
and fifty
percent
(50%)
survivor
annuity
shall
be considered
the designated
qualified
Joint
and Survivor
Annuity
and the
normal
form
of payment
for the
purposes
of this
Plan. However,
the Participant
may, without
spousal
consent,
elect
an alternative
Joint
and Survivor
Annuity,
which
alternative
shall
be equal
in value
to the
designated
qualified
Joint
and Survivor
Annuity.
An unmarried
Participant
shall
receive
the value
of such
Participant's
benefit
in the
form
of a life
annuity.
Such unmarried
Participant,
however,
may elect
to waive
the life
annuity.
The election
must comply
with the provisions
of this
Section
as if it
were an
election
to waive
the Joint
and Survivor
Annuity
by a married
Participant,
but

without
fulfilling
the spousal
consent
requirement.
The Participant
may elect
to have
any annuity
provided
for in this
Section

distributed
upon the
attainment
of the
"earliest
retirement
age"
under
the Plan.
The "earliest
retirement
age"
is the
earliest
date
on which,
under
the Plan,
the Participant
could elect
to receive
retirement
benefits.

 

(2)
Any election
to waive
the Joint
and Survivor
Annuity
must be
made by the
Participant
in writing
(or in
such
other
form
as permitted
by the
IRS)
during
the election
period
and be
consented
to in writing
(or in
such
other
form
as permitted
by the

IRS)
by the
Participant's
Spouse.
If the
Spouse
is legally
incompetent
to give
consent,
the Spouse's
legal
guardian,
even
if such
guardian
is the
Participant,
may give
consent.
Such election
shall
designate
a Beneficiary
(or a form
of benefits)
that
may
not be
changed
without
spousal
consent
(unless
the consent
of the
Spouse
expressly
permits
designations
by the
Participant
without
the requirement
of further
consent
by the
Spouse).
Such
Spouse's
consent
shall
be irrevocable
and must
acknowledge
the effect
of such
election
and be
witnessed
by a Plan
representative
or a notary
public.
Such
consent
shall

not
be required
if it is
established
to the
satisfaction
of the
Administrator
that
the required
consent
cannot
be obtained

because
there
is no Spouse,
the Spouse
cannot
be located,
or other
circumstances
that
may be prescribed
by Regulations.
The election
made by
the Participant
and consented
to by such
Participant's
Spouse
may be revoked
by the
Participant
in writing
(or in
such
other
form
as permitted
by the
IRS)
without
the consent
of the
Spouse
at any
time during
the election
period.
A revocation
of a prior
election
shall
cause
the Participant's
benefits
to be distributed
as a Joint
and Survivor
Ann uity.
The
number
of revocations
shall
not be
limited.
Any new
election
must comply
with
the requirements
of this
paragraph.
A former
Spouse's
waiver
shall
not be
binding
on a new
Spouse.

    	 

    	 

    

 

 

(3)
The election
period
to waive
the Joint
and Survivor
Annuity
shall
be the
one-hundred
eighty
(180)
(ninety
(90) for
Plan

Years
beginning
before
January
1, 2007)
day period
ending
on the
Annuity
Starting
Date.

 

(4)
For purposes
of this
Section
and Section
6.6,
Spouse
or surviving
Spouse
means 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
§414(p).

 

(5)
With
regard
to the
election,
except
as otherwise
provided
herein,
the Administrator
shall,
in accordance
with Regulation

§1.417(a)(3)-1,
provide
to the
Participant
no less
than
thirty
(30) days
and no
more than
one-hundred
eighty
(180)
(ninety
(90)
for Plan
Years
beginning
before
January
1, 2007)
days before
the Annuity
Starting
Date
a written
(or such
other
form
as permitted
by the
IRS)
explanation
of:

 

(i)
the terms
and conditions
of the
qualified
Joint
and Survivor
Annuity,
and, effective
for Plan
Years
beginning
on or after
January
1, 2007,
the "qualified
optional
survivor
annuity"
that
is payable
in lieu
of the
qualified
Joint
and Survivor
Annuity,

 

(ii)
the Participant's
right
to make
and the
effect
of an election
to waive
the Joint
and Survivor
Annuity,

 

(iii)
the right
of the
Participant's
Spouse
to consent
to any
election
to waive
the Joint
and Survivor
Annuity,
and

 

(iv)
the right
of the
Participant
to revoke
such
election,
and the
effect
of such
revocation.

 

(6)
Any distribution
provided
for in
this
Section
may commence
less
than
thirty
(30) days
after
the notice
required
by Code

§417(a)(3)
is given
provided
the following
requirements
are satisfied:

 

(i)
the Administrator
clearly
informs
the Participant
that
the Participant
has a right
to a period
of thirty
(30) days
after
receiving
the notice
to consider
whether
to waive
the Joint
and Survivor
Annuity
and to
elect
(with
spousal
consent)
a form
of distribution
other
than
a Joint
and Survivor
Annuity;

 

(ii)
the Participant
is permitted
to revoke
any affirmative
distribution
election
at least
until
the Annuity
Starting
Date
or, if
later,
at any
time prior
to the
expiration
of the
seven
(7) day
period
that
begins
the day
after
the explanation
of the
Joint
and Survivor
Annuity
is provided
to the
Participant;

 

(iii)
the Annuity
Starting
Date
is after
the time
that
the explanation
of the
J oint
and Survivor
Annuity
is provided
to the
Participant.
However,
the Annuity
Starting
Date
may be
before
the date
that
any affirmative
distribution
election
is made
by the
Participant
and before
the date
that
the distribution
is permitted
to commence
und er (iv)
below;
and

 

(iv)
distribution
in accordance
with
the affirmative
distribution
election
does not
commence
before
the expiration
of the
seven
(7) day
period
that
begins
the day
after
the explanation
of the
Joint
and Survivor
Annuity
is provided
to the
Participant.

 

(b)
Alternative
forms
of distributions.
 In the
event
a married
Participant
duly elects
pursuant
to paragraph
(a)(2)
above
not to
receive
the benefit
in the
form
of a Joint
and Survivor
Annuity,
or if such
Participant
is not
married,
in the
form
of a life
annuity,

the
Administrator,
pursuant
to the
election
of the
Participant,
shall
direct
the distribution
to a Participant
or Beneficiary
any

amount
to which
the Participant
or Beneficiary
is entitled
under the
Plan
in one
or more
of the
following
methods
which
are permitted
pursuant
to the
Adoption
Agreement.

 

(1)
One lump-sum
payment
in cash
or in property,
provided
that
if a distribution
of property
is permitted,
it shall
be limited
to property
that
is specifically
allocated
and identifiable
with respect
to such
Participant.

 

(2)
Partial
withdrawals.

 

(3)
Payments
over
a period
certain
in monthly,
quarterly,
semi-annual,
or annual
cash
installments.
The period
over
which
such
payment
is to be
made
shall
not extend
beyond
the earlier
of the
Participant's
life
expectancy
(or the
joint
life
expectancy
of the
Participant
and the
Participant's
designated
Beneficiary).
Once
payments
have
begun,
a Participant
may elect
to accelerate
the payments
(reduce
the term
and increase
payments).

 

(4)
Purchase
of or providing
an annuity.
However,
such
annuity
may not
be in any
form
that
will
provide
for payments
over
a period
extending
beyond
the life
of the
Participant
(or the
lives
of the
Participant
and the
Participant's
designated
Beneficiary)
or the
life
expectancy
of the
Participant
(or the
life
expectancy
of the
Participant
and the
Participant's
designated
Beneficiary).

 

(c)
Consent
to distributions.
Benefits
may not
be paid
without
the Participant's
and the
Participant's
Spouse's
consent
if the
present
value
of the
Participant's
Joint
and Survivor
Annuity
derived
from
Employer
and Employee
contributions
exceeds
$5,000
and
the benefit
is "immediately
distributable."
However,
spousal
consent
is not
required
if the
distribution
will
be made
in the
form
of a qualified
Joint
and Survivor
Annuity
and the
benefit
is "immediately
distributable."
A benefit
is "immediately
distributable"
if any
part
of the
benefit
could
be distributed
to the
Participant
(or surviving
Spouse)
before
the Participant
attains
(or would have
attained
if not
deceased)
the later
of the
Participant's
Normal
Retirement
Age or
age 62.

    	 

    	 

    

 

 

Notwithstanding
the foregoing,
if the
value
of the
Participant's
benefit
derived
from
Employer
and Employee
contributions
does
not exceed
$5,000,
then
the Administrator
will distribute
such
benefit
in a lump-sum.
No distribution
may be
made
under
the preceding
sentence
after
the Annuity
Starting
Date
unless
the Participant
and the
Participant's
Spouse
consent
in writing
(or in
such
other
form
as permitted
by the
IRS)
to such
distribution.
Any consent
required
under this
paragraph
must
be obtained
not more
than
one-hundred
eighty
(180)
(ninety
(90) for
Plan
Years
beginning
before
January
1, 2007)
days before
commencement

of the
distribution
and shall
be made
in a manner
consistent
with
Section
6.5(a)(2).

 

For
purposes
of this
Subsection,
the Participant's
benefit
derived
from
Employer
and Employee
contributions
shall
not include:
(1) the
Participant's
Qualified
Voluntary
Employee
Contribution
Account,
and (2)
if selected
in the
Conditions
for Distributions
Upon
Severance
of Employment
Section
of the
Adoption
Agreement,
the Participant's
Rollover
Account.

(d)
Obtaining
consent.
The following
rules
will apply
with
respect
to the
consent requirements
set forth
in Subsection
(c): (1)
No consent
shall
be valid
unless
the Participant
has received
a general
description
of the
material
features
and an

explanation
of the
relative
values
of the
optional
forms
of benefit
available
under the
Plan that
would
satisfy
the notice

requirements
of Code
§417;

 

(2)
The Participant
must
be informed
of the
right,
if any,
to defer
receipt
of the
distribution,
and for
Plan
Years
beginning
on or after
January
1, 2007
a description
of the
consequences
of failing
to defer
any distribution.
If a Participant
fails
to consent,
it shall
be deemed
an election
to defer
the commencement
of payment
of any
benefit.
However,
any election
to defer
the receipt
of benefits
shall
not apply
with
respect
to distributions
that
are required
under Section
6.8;

 

(3)
Notice
of the
rights
specified
under this
paragraph
shall
be provided
no less
than
thirty
(30) days
and no
more than
one-hundred
eighty
(180) (ninety
(90) for
Plan
Years
beginning
before
January
1, 2007)
days before
the Annuity
Starting
Date;

 

(4)
Written
(or such
other
form
as permitted
by the
IRS) consent
of the
Participant
to the
distribution
must
not be
made
before
the Participant
receives
the notice
and must
not be
made
more
than
one-hundred
eighty
(180)
(ninety
(90) for
Plan Years
beginning
before
January
1, 2007)
days before
the Annuity
Starting
Date;
and

 

(5)
No consent
shall
be valid
if a significant
detriment
is imposed
under the
Plan
on any
Participant
who does
not consent
to the
distribution.

 

(e)
Required
minimum
distributions
(Code
§401(a)(9)).
Notwithstanding
any provision
in the
Plan
to the
contrary,
the distribution
of a Participant's
benefits,
whether
under
the Plan
or through
the purchase
of an annuity
Contract,
shall
be made
in accordance
with
the requirements
of Section
6.8.

 

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

Plan.

 

(g)
TEFRA
242(b)(2)
election.
The provisions
of this
Section
shall
not apply
to distributions
made in
accordance
with
Plan

Section
6.8(a)(4).

 

(h)
Distribution
from partially
Vested
Account.
If a distribution
is made
to a Participant
who has
not severed
employment
and who
is not fully
Vested
in the
Participant's
Account,
and the
Participant
may increase
the Vested
percentage
in such
Account,

then
at any
relevant
time
the Participant's
Vested
portion
of the
Account
will
be equal
to an amount
("X")
determined
by the

formula:

 

X = P (AB
plus
D) - D

 

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

 

(i)
       Transition
rules.

 

(1)
Any living
Participant
not receiving
benefits
on August
23, 1984,
who would
otherwise
not receive
the benefits
prescribed
by the
previous
Subsections
of this
Section
must be
given
the opportunity
to elect
to have
such
prior
Subsections
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
ten (10)
years
of vesting
service
when
he or she
separated
from
service.

 

(2)
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
i n 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
Subsection
(4) below.

    	 

    	 

    

 

(3)
The respective
opportunities
to elect
(as described
in Subsections
(1) and
(2) abov
e) 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.

 

(4)
Any Participant
who has
elected
pursuant
to Subsection
(2) above
and any
Participant
who does
not elect
under Subsection
(1) or
who meets
the requirements
of Subsection
(1) except
that
such
Participant
does not
have
at least
ten (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:

 

		(i)	If benefits
in the
form
of a life
annuity
become
payable
to a married
Participant
who: (A)
begins
to receive
payments
under
the Plan
on or after
Normal
Retirement
Age; or
(B) dies
on or after
Normal
Retirement
Age while
still
working
for the
Employer;
or

(C)
begins
to receive
payments
on or after
the "qualified
early retirement
age";
or

 

(D)
separates
from
service
on or after
attaining
Normal
Retirement
Age (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
six (6)
months
before
the Participant
attains
"qualified
early
retirement
age"
and end
not more
than
one-hundred
eighty
(180)

(ninety
(90) days
for Plan
Years
beginning
before
January
1, 2007)
before
the commencement
of benefits.
Any election
hereunder
will be
in writing
and may
be changed
by the
Participant
at any
time.

 

(ii)
A Participant
who is
employed
after
attaining
the "qualified
early
retirement
age"
will be given
the opportunity
to elect,
during
the election
period,
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 (A)
the
90th
day
before
the Participant
attains
the "qualified
early
retirement
age,"
or (B)
the date
on which
Participation
begins,
and ends
on the
date
the Participant
terminates
employment.

 

(iii)
For purposes
of this
Subsection,
the "qualified
early
retirement
age" means
the latest
of: (A)
the earliest
date,
under
the Plan,
on which
the Participant
may elect
to receive
retirement
benefits,
(B) the
first
day of
the 120th
month beginning
before
the Participant
reaches
Normal
Retirement
Age, or
(C) the
date
the Participant
begins
participation.

 

(j)
       Qualified
optional
survivor
annuity

 

(1)
Right
to elect
"qualified
optional
survivor
annuity."
Notwithstanding
the preceding,
effective
with
respect
to Plan
Years
beginning
after
December
31, 2007
and prior
to the
date
this
Plan
is adopted,
the Plan
satisfied
the "qualified
optional
survivor
annuity"
provisions
set forth
in this
Subsection.
A Participant
who elected
to waive
the qualified
Joint
and Survivor
Annuity
form
of benefit
was entitled
to elect
the "qualified
optional
survivor
annuity"
at any
time during
the applicable
election
period.
Furthermore,
the written
explanation
of the
Joint
and Survivor
Annuity
explains
the terms
and conditions
of the
"qualified
optional
survivor
annuity."

 

(2)
Definition
of "qualified
optional
survivor
annuity."

 

(i)
       General.
For purposes
of this
Article,
the term
"qualified
optional
survivor
annuity"
means an
annuity:

 

(A)
For the
life
of the
Participant
with
a survivor
annuity
for the
life
of the
Participant's
Spouse
which
is equal
to the
"applicable
percentage"
of the
amount
of the
annuity
which
is payable
during
the joint
lives
of the
Participant
and the
Participant's
Spouse,
and

 

(B)
Which
is the
actuarial
equivalent
of a single
annuity
for the
life
of the
Participant.

Such
term
also
includes
any annuity
in a form
having
the effect
of an annuity
described
in the
preceding
sentence.
(ii)
Applicable
percentage.
For purposes
of this
Subsection,
the "applicable
percentage"
is based
on the
survivor

annuity
percentage
(i.e.,
the percentage
which
the survivor
annuity
under
the Plan's
qualified
Joint
and Survivor
Annuity
bears
to the
annuity
payable
during
the joint
lives
of the
Participant
and the
Participant's
Spouse).
If the survivor
annuity
percentage
is less
than
seventy-five
percent
(75%),
then
the "applicable
percentage"
is seventy-five
percent
(75%);
otherwise,
the "applicable
percentage"
is fifty
percent
(50%).

 

6.6
DISTRIBUTION
OF BENEFITS
UPON DEATH

 

(a)
Qualified
Pre-Retirement
Survivor
Annuity
(QPSA).
Unless
otherwise
elected
as provided
below,
a Vested
Participant
who
dies
before
the Annuity
Starting
Date
and who
has a surviving
Spouse
shall
have
the Pre-Retirement
Survivor
Annuity
paid

    	 

    	 

    

 

to
the surviving
Spouse.
The Participant's
Spouse
may direct
that payment
of the Pre-Retirement
Survivor
Annuity
commence
within
a reasonable
period
after
the Participant's
death.
If the
Spouse
does not so
direct,
payment
of such
benefit
will commence
at the
time
the Participant
would
have
attained
the later
of Normal
Retirement
Age or age
62. However,
the Spouse
may elect
a later
commencement
date.
Any distribution
to the
Participant's
Spouse
shall
be subject
to the
rules specified
in Section
6.8.

 

(b)
Election
to waive
QPSA.
Any election
to waive
the Pre-Retirement
Survivor
Annuity
before
the Participant's
death
must
be made
by the
Participant
in writing
(or in such
other form
as permitted
by the
IRS)
during
the election
period
and shall
require the
Spouse's
irrevocable
consent in
the same
manner provided
for in Section
6.5(a)(2).
Further,
the Spouse's
consent must
acknowledge
the specific
non-Spouse
Beneficiary.
Notwithstanding
the foregoing,
the non-Spouse
Beneficiary
need not
be acknowledged,
provided
the consent
of the Spouse
acknowledges
that the
Spouse
h as the
right
to limit
consent only
to a specific
Beneficiary
and that
the Spouse
voluntarily
elects
to relinquish
such right.

 

(c)
Time
to waive
QPSA.
The election
period
to waive
the Pre-Retirement
Survivor
Annuity
shall
begin
on the
first
day of
the Plan
Year
in which
the Participant
attains
age 35
and end
on the
date
of the
Participant's
death.
An earlier
waiver
(with
spousal
consent)
may be
made
provided
a written
(or such
other
form
as permitted
by the
IRS)
explanation
of the
Pre-Retirement
Survivor
Annuity
is given
to the
Participant
and such
waiver
becomes
invalid
at the
beginning
of the
Plan
Year in
which
the Participant
turns
age 35.
In the
event
a Participant
separates
from
service
prior
to the
beginning
of the
election
period,
the election
period
shall
begin
on the
date
of such
separation
from
service.

 

(d)
QPSA notice.
W ith regard
to the
election,
the Administrator
shall
provide
each Participant
within
the applicable
election
period,
with
respect
to such
Participant
(and
consistent
with
Regulations),
a written
(or such
other
form
as permitted
by the
IRS)
explanation
of the
Pre-Retirement
Survivor
Annuity
containing
comparable
information
to that
required
pursuant
to

Section
6.5(a)(5).
For the
purposes
of this
paragraph,
the term
"applicable
period"
means, with
respect
to a Participant,
whichever
of the
following
periods
ends
last:

 

(1)
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;

 

(2)
A reasonable
period
after
the individual
becomes
a Participant;

 

(3)
A reasonable
period
ending
after
the Plan
no longer
fully
subsidizes
the cost
of the
Pre-Retirement
Survivor
Annuity
with
respect
to the
Participant;
or

 

(4)
A reasonable
period
ending
after
Code
§401(a)(11)
applies
to the
Participant.

 

For
purposes
of applying
this
Subsection,
a reasonable
period
ending
after
the enumerated
events
described
in (2),
(3) and
(4) is
the end
of the
two (2)
year period
beginning
one (1)
year prior
to the
date the
applicable
event
occurs,
and ending
one (1)
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
(2) year
period
beginning
one (1)
year prior
to separation
and ending
one (1)
year after
separation.
If such
a Participant
thereafter
returns
to employment
with the
Employer,
the "applicable
period"
for such
Participant
shall
be redetermined.

 

(e)
Pre-REA.
The Pre-Retirement
Survivor
Annuity
provided
for in this
Section
shall
apply only
to Participants
who are
credited
with
an Hour
of Service
on or after
August
23, 1984.
Participants
who are
not credited
with
an Hour
of Service
on or after

August
23, 1984,
shall
be provided
with rights
to the
Pre-Retirement
Survivor
Annuity
in accordance
with Section
303(e)(2)
of the

Retirement
Equity
Act of
1984.

 

(f)
Consent.
If the
value
of the
Pre-Retirement
Survivor
Annuity
derived
from
Employer
and Employee
contributions
does n ot
exceed
$5,000,
the Administrator
shall
direct
the distribution
of such
amount
to the
Participant's
Spouse
in a single
lump
-sum as soon
as practicable.
No distribution
may be
made
under
the preceding
sentence
after
the Annuity
Starting
Date
unless
the Spouse
consents
in writing
(or in
such
other
form
as permitted
by the
IRS).
If the
value
exceeds
$5,000,
an immediate

distribution
of the
entire
amount
may be
made
to the
surviving
Spouse,
provided
such surviving
Spouse
consents
in writing
(or in such
other form
as permitted
by the
IRS)
to such
distribution.
Any consent
required
under this
paragraph
must be
obtained
not more
than
one-hundred
eighty
(180)
days
(ninety
(90) days
for Plan
Years
beginning
before
January
1, 2007)
before
commencement
of the distribution
and shall
be made
in a manner
consistent
with
Section
6.5(a)(2).

 

(g)
Alternative
forms
of distribution.
Death
benefits
may be paid
to a Participant's
Beneficiary
in one
of the
following
optional
forms
of benefits
subject
to the
rules
specified
in Section
6.8 and
the elections
made in
the Adoption
Agreement.
Such optional
forms
of distributions
may be elected
by the
Participant
in the
event
there
is an election
to waive
the Pre-Retirement
Survivor
Annuity,
and for
any death
benefits
in excess
of the
Pre-Retirement
Survivor
Annuity.
However,
if no optional
form
of distribution
was
elected
by the
Participant
prior
to death,
then
the Participant's
Beneficiary
may elect
the form
of distribution.

 

(1)
One lump-sum
payment
in cash
or in property
that
is allocated
to the
Accounts
of the
Participant
at the
time of
the distribution.

 

(2)
Partial
withdrawals.

 

(3)
Payment
in monthly,
quarterly,
semi-annual,
or annual
cash
installments
over
a period
to be determined
by the

Participant
or the
Participant's
Beneficiary.
In order
to provide
such installment
payments,
the Administrator
ma y

(A)
segregate
the aggregate
amount
thereof
in a separate,
federally
insured
savings
account,
certificate
of deposit
in a bank

    	 

    	 

    

 

or
savings
and loan
association,
money
market
certificate
or other
liquid
short
-term
security
or (B)
purchase
a nontransferable
annuity
Contract
for a term
certain
(with
no life
contingencies)
providing
for such
payment.
After
periodic
installments
commence,
the Beneficiary
shall
have
the right
to reduce
the period
over
which
such
periodic
installments
shall
be made,
and the
cash
amount
of such
periodic
installments
shall
be adjusted
accordingly.

 

(4)
In the
form
of an annuity
over
the life
expectancy
of the
Beneficiary.

 

(5)
If death
benefits
in excess
of the
Pre-Retirement
Survivor
Annuity
are to
be paid
to t he surviving
Spouse,
such
benefits
may
be paid
pursuant
to (1),
(2) or
(3) above,
or used
to purchase
an annuity
so as to
increase
the payments
made
pursuant
to the
Pre-Retirement
Survivor
Annuity.

 

(h)
Required
minimum
distributions
(Code
§401(a)(9)).
Notwithstanding
any provision
in the
Plan
to the
contrary,
distributions
upon the
death
of a Participant
shall
comply
with
the requirements
of Section
6.8.

 

(i)
Payment
to a child.
For purposes
of this
Section,
any amount
paid
to a child of
the Participant
will
be treated
as if it
had been
paid
to the surviving
Spouse
if the
amount
becomes
payable
to the surviving
Spouse
when
the child
reaches
the age
of majority.

 

(j)
       Voluntary
Contribution
Account.
In the
event
that
less
than
one hundred
percent
(100%)
of a Participant's
interest
in the
Plan
is distributed
to such
Participant's
Spouse,
the portion
of the
distribution
attributable
to the
Participant's
Voluntary
Contribution
Account
shall
be in the
same proportion
that
the Participant's
Voluntary
Contribution
Account
bears
to the
Participant's
total
interest
in the
Plan.

 

(k) TEFRA
242(b)(2)
election.
The provisions
of this
Section
shall
not apply
to distributions
made in
accordance
with
Section

6.8(a)(4).

 

6.7
TIME
OF DISTRIBUTION

 

Except
as limited
by Section
6.8,
whenever
a distribution
is to be
made,
or a series
of payments
are to
commence,
the

distribution
or series
of payments
may be
made
or begun
as soon
as practicable.
Notwithstanding
anythi
ng in the
Plan
to the
contrary,
unless
a Participant
otherwise
elects,
payments
of benefits
under
the Plan
will begin
not later
than
the sixtieth
(60th)
day after
the close
of the
Plan
Year
in which
the latest
of the
following
events
occurs:
(a) the
date
on which
the Participant
attains
the earlier
of

age
65 or
the Normal
Retirement
Age specified
herein;
(b) the
tenth
(10th)
anniversary
of the
year in
which
the Participant
commenced
participation
in the
Plan;
or (c) the
date
the Participant
terminates
service
with
the Employer.
The failure
of a Participant
and,
if applicable,
the Participant's
Spouse,
to request
a distribution
shall
be deemed
to be an
election
to defer
the commen
cement
of payment
of any
benefit
until
the time
otherwise
permitted
under the
Pl an.

 

6.8REQUIRED
MINIMUM
DISTRIBUTIONS

 

(a)
General
rules

 

(1)
Effective
Date.
Subject
to the
Joint
and Survivor
Annuity
requirements
set forth
in Plan
Section
6.5,
the requirements
of this
Section
shall
apply
to any
distribution
of a Participant's
interest
in the
Plan
and will
take
precedence
over
any inconsistent
provisions
of this
Plan.

 

(2)
Requirements
of Treasury
Regulations
incorporated.
 All distributions
required
under this
Section
will
be determined
and
made
in accordance
with
the Regulations
under
Code
§401(a)(9)
and the
minimum
distribution
incidental
benefit
requirement
of Code
§401(a)(9)(G).

 

(3)
Limits
on distribution
periods.
As of the
first
"distribution
calendar
year,"
distributions
to a Participant
may only
be made
in accordance
with
the selections
made
in the
Form
of Distributions
Section
of the
Adoption
Agreement.
If such
distributions
are not
made
in a single-sum,
then
they may
only
be made
over
one of
the following
periods:
(i) the
life
of the
Participant,
(ii)
the joint
lives
of the
Participant
and a "designated
Beneficiary,"
(iii)
a period
certain
not extending
bey ond
the "life
expectancy"
of the
Participant,
or (iv)
a period
certain
not extending
beyond
the joint
life
and last
survivor
expectancy
of the
Participant
and a "designated
Beneficiary."

 

(4)
TEFRA
Section
242(b)(2)
elections.

 

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

 

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

 

(B)
The distribution
is in accordance
with
a method
of distribution
designated
by the
Participant
whos
e interest
in the
Plan
is being
distributed
or, if
the Participant
is deceased,
by a Beneficiary
of such
Participant.

    	 

    	 

    

 

(C)
Such designation
was in
writing,
was signed
by the
Participant
or the
Beneficiary,
and was
made before

January
1, 1984.

 

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

 

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

 

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

 

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

 

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

 

(v)
In the
case
in which
an amount
is transferred
or rolled
over
from
one plan
to another
plan,
the rules
in Regulation

§1.401(a)(9)-8,
Q&A-14
and Q&A-15,
shall
apply.

 

(b)
Time
and manner
of distribution

 

(1)
Required
beginning
date.
The Participant's
entire
interest
will be
distributed,
or begin
to be distributed,
to the

Participant
no later
than
the Participant's
"required
beginning
date."

 

(2)
Death
of Participant
before
distributions
begin.
If the
Participant
dies
before
distributions
begin,
the Participant's
entire
interest
will be
distributed,
or begin
to be distributed,
no later
than
as follows
as elected
in the
Distributions
Upo n Death
Section
of the
Adoption
Agreement
(or if
no election
is made,
then
the Beneficiary
may elect
either
the lifetime
method
or the
five-year
method):

 

(i)
       Lifetime
method
(Spouse).
If the
Participant's
surviving
Spouse
is the
Participant's
sole
"designated
Beneficiary,"
then,
except as
otherwise
provided
herein,
distributions
to the
surviving
Spouse
will
begin
by December
31 of the
calendar
year immediately
following
the calendar
year in
which
the Participant
died,
or by December
31 of the
calendar
year in
which the
Participant
would
have
attained
age 70
1/2,
if later.

 

(ii)
Lifetime
method
(non-Spouse).
If the
Participant's
surviving
Spouse
is not
the Participant's
sole
"designated
Beneficiary,"
then,
except
as provided
in Section
6.8(b)(3)
below,
distributions
to the
"designated
Beneficiary"
will
begin
by December
31 of the
calendar
year immediately
following
the calendar
year in
which
the Participant
died.

 

(iii)
Five-year
method.
If there
is no "designated
Beneficiary"
as of September
30 of the
year following
the year
of the
Participant's
death
or if otherwise
elected
pursuant
to the
Adoption
Agreement
with
respect
to a "designated
Beneficiary,"
the Participant's
entire
interest
will be
distributed
by December
31 of the
calendar
year con
taining
the fifth
anniversary
of the
Participant's
death.

 

(iv)
Death
of Spouse.
If the
Participant's
surviving
Spouse
is the
Participant's
sole
"designated
Beneficiary"
and the
surviving
Spouse
dies after
the Participant
but before
distribution
s to the
surviving
Spouse
begin,
this
Section
6.8(b)(2),
other
than
Section
6.8(b)(2)(i),
will
apply
as if the
surviving
Spouse
were
the Participant.

 

For
purposes
of this
Section
6.8(b)(2)
and Section
6.8(b)(3),
unless
Section
6.8(b)(2)(iv)
applies,
distributions
are considered
to begin
on the
Participant's
"required
beginning
date."
If Section
6.8(b)(2)(iv)
applies,
distributions
are considered
to begin
on the
date
distributions
are required
to begin
to the
surviving
Spouse
under Section
6.8(b)(2)(i)
.. If distributions
under an
annuity
purchased
from
an insurance
company
irrevocably
commence
to the
Participant
before
the Participant's
"required
beginning
date"
(or to
the Participant's
surviving
Spouse
before
the date
distributions
are required
to begin
to the
surviving
Spouse
under Section
6.8(b)(2)(i)),
the date
distributions
are considered
to begin
is the
date
distributions
actually
commence.

 

(3)
Forms
of distribution.
Unless
the Participant's
interest
is distributed
in the
form
of an annuity
purchased
from
an insurance
company
or in a single
sum on
or before
the "required
beginning
date,"
as of the
first
"distribution
calendar
year"

    	 

    	 

    

 

distributions
will be
made
in accordance
with
Sections
6.8(c)
and 6.8(d)
and only
in a form
of distribution
provided
in Section

6.5
or 6.6,
as applicable.
If the
Participant's
interest
is distributed
in the
form
of an annuity
purchased
from
an insurance
company,
distributions
thereunder
will
be made
in accordance
with the
requirements
of Code
§401(a)(9)
and the
Regulations
thereunder.

 

(c) Required
minimum
distributions
during
Participant's
lifetime

 

(1)
Amount
of required
minimum
distribution
for each
"distribution
calendar
year."
During
the Participant's
lifetime,
the
minimum
amount
that
will be
distributed
for each
"distribution
calendar
year"
is the
lesser
of the
following,
as elected
in the
Form
of Distributions
Section
of the
Adoption
Agreement:

 

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

 

(ii)
if the
Participant's
sole
"designated
Beneficiary"
for the
"distribution
calendar
year"
is the
Participant's
Spouse,
the quotient
obtained
by dividing
the "Participant's
account
balance"
by the
number
in the
Joint
and Last
Survivor
Table
set forth
in Regulation
§1.401(a)(9)-9,
using
the Participant's
and Spouse's
attained
ages
as of the
Participant's
and Spouse's
birthdays
in the
"distribution
calendar
year."

 

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

 

(d)
Required
minimum
distributions
after
Participant's
death

 

(1)
Death
on or after
date distributions
begin.

 

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

 

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

 

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

 

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

 

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

 

(2)
Death
before
date
distributions
begin.

 

(i)
       Participant
survived
by "designated
Beneficiary."
 Except
as provided
in Sections
6.8(b)(2)
and 6.8(b)(3),
if the
Participant
dies
before
the date
distributions
begin
and there
is a "designated
Beneficiary,"
the minimum
amount
that
will be
distributed
for each
"distribution
calendar
year"
after
the year
of the
Participant's
death
is the
quotient
obtained
by dividing
the "Participant's
account
balance"
by the
remaining
"life
expectancy"
of the
Participant's
"designated
Beneficiary,"
determined
as provided
in Section
6.8(d)(1).

 

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

 

(iii)
Death
of surviving
Spouse
before
distributions
to surviving
Spouse
are required
to begin.
If the
Participant
dies
before
the date
distributions
begin,
the Participant's
surviving
Spouse
is the
Participant's
sole
"designated

    	 

    	 

    

 

Beneficiary,"
and the
surviving
Spouse
dies
before
distributions
are required
to begin
to the
surviving
Spouse
under

Section
6.8(b)(2)(i),
this
Section
6.8(d)(2)
will apply
as if the
surviving
Spouse
were
the Participant.

 

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

 

(1)
"Designated
Beneficiary"
means the
individual
who is
designated
as the
Beneficiary
under
the Plan
and is
the

"designated
Beneficiary"
under
Code
§401(a)(9)
and Regulation
§1.401(a)(9)-4.

 

(2)
"Distribution
calendar
year"
means
a calendar
year for
which
a m inimum
distribution
is required.
For distributions
beginning
before
the Participant's
death,
the first
"distribution
calendar
year"
is the
calendar
year immediately
preceding
t he calendar
year which
contains
the Participant's
"required
beginning
date."
For distributions
beginning
after
the Participant's
death,
the first
"distribution
calendar
year"
is the
calendar
year in
which
distributions
are required
to begin
under Section

6.8(b).
The required
minimum
distribution
for the
Participant's
first
"distribution
calendar
year"
will
be made
on or before
the

Participant's
"required
beginning
date."
The required
minimum
distribution
for other
"distribution
calendar
years,"
including
the
required
minimum
distribution
for the
"distribution
calendar
year"
in which
th e Participant's
"required
beginning
date"
occurs,
will be
made
on or before
December
31 of that
"distribution
calendar
year."

(3)
"Life
expectancy"
means the
life
expectancy
as computed
by use
of the Single
Life
Table
in Regulation
§1.401(a)(9)
-9. (4)
"Participant's
account
balance"
means
the
Participant's
account
balance
as of the
last
Valuation
Date in the
calendar

year
immediately
preceding
the "distribution
calendar
year"
(valuation
calendar
year)
increased
by the
amount
of any

contributions
made
and allocated
or Forfeitures
allocated
to the
account balance
as of 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.
For this
purpose,
the Administrator
may exclude
contributions
that are
allocated
to the
account
balance
as of dates
in the
valuation
calendar
year after
the Valuation
Date,
but that
are not
actually
made
during
the valuation
calendar
year.
The account
balance
for the
valuation
calendar
year includes
any amounts
rolled
over
or transferred
to the
Plan
either
in the
valuation
calendar
year or
in the
"distribution
calendar
year"
if distributed
or transferred
in the
valuation
calendar
year.

 

(5)
"Required
beginning
date"
means,
except
as otherwise
elected
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections),
with
respect
to any
Participant,
April
1 of the
calendar
year following
the later
of the
calendar
year in
which
the Participant
attains
age 70
1/2 or
the calendar
year in
which
the Participant
retires,
except
that
benefit
distributions
to a "5-percent
owner"
must
commence
by April
1 of the
calendar
year following
the calendar
year in
which
the
Participant
attains
age
70 1/2.

 

(6)
"5-percent
owner"
means
a Participant
who is
a 5-percent
owner
as defined
in Code
§416
at any
time
during
the Plan

Year
ending
with
or within
the calendar
year in
which
such
owner
attains
age 70
1/2.
Once
distributions
have
begun
to a

5-percent
owner
under this
Section
they
must
continue
to be distributed,
even
if the
Participant
ceases
to be a 5 -percent
owner
in a subsequent
year.

 

(f)
Waiver
of 2009
required
distributions

 

(1)
Suspension
of RMDs
unless
otherwise
elected
by Participant.
 This
paragraph
does not apply
if the
Employer
elected
options
a., b.,
or c. at the
W RERA
– RMD W aivers
for 2009
Section
of the
Adoption
Agreement.
Notwithstanding
the provisions
of the
Plan
relating
to required
minimum
distributions
under
Code
§401(a)(9),
a Participant
or Beneficiary
who would
have
been required
to receive
required
minimum
distributions
for 2009
but for
the enactment
of Code
§401(a)(
9)(H)
("2009
RMDs"),
and who
would
have
satisfied
that
requirement
by receiving
distributions
that
are (i)
equal
to the
"2009

RMDs"
or (ii)
one or
more
payments
in a series
of substantially
equal
distributions
(that
include
the "2009
RMDs")
made
at least
annually
and expected
to last
for the
life
(or "life
expectancy")
of the
Participant,
the joint
lives
(or joint
"life

expectancy")
of the
Participant
and the
Participant's
"designated
Beneficiary,"
or for
a period
of at least
10 years
("Extend
ed

2009
RMDs"),
did not
receive
those
distributions
for 2009
unless
the Participant
or Beneficiary
chooses
to receive
such
distributions.
Participants
and Beneficiaries
described
in the
preceding
sentence
were
given
the opportunity
to elect
to receive
the distributions
described
in the
preceding
sentence.

 

(2)
Continuation
of RMDs
unless
otherwise
elected
by Participant.
 This
paragraph
applies
if the
Employer
elected
option
b. at the
W RERA
– RMD W aivers
for 2009
Section
of the
Adoption
Agreement.
Notwithstanding
the provisions
of the Plan
relating
to required
minimum
distributions
under
Code
§401(a)(9),
a Participant
or Beneficiary
who would
have
been required
to receive
required
minimum
distributions
for 2009
but for
the enactment
of Code
§401(a)(9)(H)
("2009
RMDs"),
and
who would
have
satisfied
that
requirement
by receiving
distributions
that are
(i) equal
to the
"2009
RMDs"
or (ii)
one or
more payments
in a series
of substantially
equal
distributions
(that
include
the "2009
RMDs")
made
at least
annually
and expected
to last
for the
life
(or "life
expectancy")
of the Participant,
the joint
lives (or
joint
"life
expectancy")
of the P articipant
and
the Participant's
"designated
Beneficiary,"
or for a period
of at least
10 years
("Extended
2009 RMDs"),
did not
rec eive
those distributions
for 2009
unless
the Participant
or Beneficiary
choose not
to receive
such distributions.
Participants
and Beneficiaries
described
in the
preceding
sentence
were given
the opportunity
to elect
to stop
receiving
the distributions
described
in the
preceding
sentence.

 

(3)
Direct
rollovers.
Notwithstanding
the provisions
of the
Plan
relating
to required
minimum
distributions
under Code

§401(a)(9),
and solely
for purposes
of applying
the direct
rollover
provisions
of the
Plan,
certain
additional
distributions
in

2009,
as elected
by the
Employer
in the
W RERA
– RMD W aivers
for 2009
Section
of the
Adoption
Agreement,
were
treated

as
eligible
rollover
distributions.
If no election
was made
by the
Employer
in the
Adoption
Agreement,
then
a direct
rollover
was
offered
only
for distributions
that
would
have
been eligible
rollover
distributions
without
regard
to Code
§401(a)(9)(H).

    	 

    	 

    

 

 

6.9
DISTRIBUTION
FOR MINOR
OR INCOMPETENT
INDIVIDUAL

 

If,
in the
opinion
of the
Administrator,
a Participant
or Beneficiary
entitled
to a distribution
is not
able
to care
for his
or her
affairs
because
of a mental
condition,
a physical
condition,
or by reason
of age,
then
the Administrator
shall
direct
the distribution
to the
Participant's
or Beneficiary's
guardian,
conservator,
trustee,
custodian
(including
under
a Uniform
Transfers
or Gifts
to Minors
Act)
or to his
or her
attorney-in-fact
or to other
legal
representative,
upon furnishing
evidence
of such
status
satisfactory
to the
Administrator.
The
Administrator
and the
Trustee
(or Insurer)
do not
have
any liability
with
respect
to payments
so made
and neither
the Administrator
nor the
Trustee
(or Insurer)
has any
duty
to make
inquiry
as to the
competence
of any
person
entitled
to receiv
e payments
under
the Plan.

 

6.10
LOCATION
OF PARTICIPANT
OR BENEFICIARY
UNKNOWN

 

In
the event
that
all,
or any
portion,
of the
distribution
payable
to a Participant
or Beneficiary
hereunder
shall,
at the
la ter
of the
Participant's
attainment
of age
62 or Normal
Retirement
Age, remain
unpaid
solely
by reason
of the
inability
of the
Administr
ator
to ascertain
the whereabouts
of such
Participant
or Beneficiary,
the amount
so distributable
may, in
the sole
discretion
of t he Administrator,
either
be treated
as a Forfeiture
or be paid
directly
to an individual
retirement
account
described
in Code
§4 08(a)
or an individual
retirement
annuity
described
in Code
§408(b).
In addition,
if the
Plan provides
for mandatory
distributions and
the amount
to be
distributed
to a Participant
or Beneficiary
does not
exceed
$1,000,
then
the amount
distributable
may, in the
sole
discret
ion of
the Administrator,
either
be treated
as a Forfeiture,
or be paid
directly
to an individual
retirement
account
described
in Code
§408(a)
or an individual
retirement
annuity
described
in Code
§408(b)
at the
time it
is determined
that
the whereabouts
of the
Participant
or the
Participant's
Beneficiary
cannot
be ascertained.
In the
event
a Participant
or Beneficiary
is located
subsequent
to the
Forfeiture,
such benefit
shall
be restored,
first
from
Forfeitures,
if any,
and then
from
an additional
Employer
contribution
if necessary.
Up on Plan
termination,
the portion
of the
distributable
amount
that
is an "eligible
rollover
distribution"
as defined
in Section
6.15(b)(1)
may be

paid
directly
to an individual
retirement
account
described
in Code
§408(a)
or an individual
retirement
annuity
described
in Code

§408(b).
However,
regardless
of the
preceding,
a benefit
that
is lost
by reason
of escheat
under applicable
state
law is
not treated
as a Forfeiture
for purposes
of this
Section
nor as
an impermissible
forfeiture
under the
Code.

 

6.11
IN-SERVICE
DISTRIBUTION

 

If elected
in the
Adoption
Agreement,
at such
time as
the conditions
set forth
in the
Adoption
Agreement
have
been satisfied,

then
the Administrator,
at the
election
of a Partic
ipant
who has
not severed
employment
with
the Employer,
shall
direct
the distribution
of up to
the entire
Vested
amount
then
credited
to the
Accounts
as elected
in the
Adoption
Agreement
maintained
on behalf
of such
Participant.
For purposes
of this
Section,
a Participant
shall
include
an Employee
who has
an Account
balance
in the
Plan.
In the
event
that
the Administrator
makes
such a distribution,
the Participant
shall
continue
to be eligible
to participate
in the
P lan on
the same
basis
as any
other
Employee.
Any distribution
made
pursuant
to this
Section
shall
be made
in a manner
consistent
with

Section
6.5,
including,
but not
limited
to, all
notice
and consent
requirements
of Code
§§411(a)(11)
and 417
and the
Regulations
thereunder.
The Plan
may, however,
make
a partial
distribution
pursuant
to this
Section
regardless
of whether
partial
distributions
are otherwise
permitted
pursuant
to the
Adoption
Agreement.
Furthermore,
if an in-service
distribution
is permitted
from
more
than
one account
type,
the Administrator
may determine
any ordering
of a Participant's
in-service
distribution
from
such
accounts.

 

6.12
ADVANCE
DISTRIBUTION
FOR HARDSHIP

 

(a)
Hardship
events.
For Profit
Sharing
Plans
and 401(k)
Plans
(except
to the
extent
Section
12.10
applies),
if elected
in the
Adoption
Agreement,
the Administrator,
at the
election
of the
Participant,
shall
dir ect
the distribution
to any
Participant
in any
one Plan
Year
up to the
lesser
of 100%
of the
Vested
interest
of the
Accounts
selected
in the
Adoption
Agreement,
valued
as of th
e last
Valuation
Date
or the
amount
necessary
to satisfy
the immediate
and heavy
financial
need of
the Participant.
For purposes
of this
Section,
a Participant
shall
include
an Employee
who has
an Account
balance
in the
Plan.
Any distribution
made pursuant
to this
Section
shall
be deemed
to be made
as of the
first
day of
the Plan
Year
or, if
later,
the Valuation
Date
immediately
preceding
the date
of distribution,
and the
Account
from
which
the distribution
is made
shall
be reduced
accordingly.
W ithdrawal
under this
Section
shall
be authorized
only
if the
distribution
is for
an immediate
and heavy
financial
need.
The Administrator
will determine
whether
there
is an immediate
and heavy
financial
need based
on the
facts
and circumstances.
An immediate
and heavy

financial
need includes,
but is not
limited
to, a distribution
for one
of the
following:

 

(1)
Expenses
for (or
necessary
to obtain)
medical
care
(as defined
in Code
§213(d));

(2)
Costs
directly
related
to the
purchase
(excluding
mortgage
payments)
of a principal
residence
for the
Participant;
(3)
Payments
for burial
or funeral
expenses
for the
Participant's
deceased
parent,
Spouse,
children
or dependents
(as

defined
in Code
§152,
and without
regard
to Code
§152(d)(1)(B));

 

(4)
Payment
of tuition,
related
educational
fees,
and room
and board
expenses,
for up
to the
next twelve
(12) months
of post-secondary
education
for the
Participant,
the Participant's
Spouse,
children,
or dependents
(as defined
in Code
§152,
and
without
regard
to Code
§§152(b)(1),
(b)(2),
and (d)(1)(B));

 

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

 

(6)
Expenses
for the
repair
of damage
to the
Participant's
principal
residence
that
would
qualify
for the
casualty
deduction
under
Code
§165 (determined
without
regard
to whether
the loss
exceeds
10% of
adjusted
gross
income).

    	 

    	 

    

 

 

(b)
Beneficiary-based
distribution.
 If elected
in Adoption
Agreement,
then
effective
as of the
date
specified
in the
Adoption
Agreement,
but no earlier
than
August
17, 2006,
a Participant's
hardship
event
includes
an immediate
and heavy
financial
need of
the Participant's
"primary
Beneficiary
under the
Plan,"
that
would
constitute
a hardship
event
if it occurred
with
respect
to the
Participant's
Spouse
or dependent
as defined
under
Code
§152
(such
hardship
events
being
limited
to educational
expenses,
funeral
expenses
and certain
medical
expenses).
For purposes
of this
Section,
a Participant's
"primary
Beneficiary
under
the Plan"
is an individual
who is
named
as a Beneficiary
under the
Plan
(by the
Participant
or pursuant
to Section
6.2(d))
and has
an unconditional
right
to all
or a portion
of the
Participant's
Account
balance
under
the Plan
upon
the Participant's
death.

 

(c)
Other
limits
and conditions.
 If elected
in the
Adoption
Agreement,
no distribution
shall
be made
pursuant
to this
Section
from
the Participant's
Account
until
such Account
has become
fully
Vested.
Furthermore,
if a hardship
distribution
is permitted
from
more
than
one Account,
the Administrator
may determine
any ordering
of a Participant's
hardship
distribution
from
such Accounts.

 

(d)
Distribution
rules
apply.
Any distribution
made
pursuant
to this
Section
shall
be made
in a manner
which
is consistent
with
and satisfies
the provisions
of Section
6.5,
including,
but not
limited
to, all
notice
and consent
requirements
of Code
§§411(a)(11)
and 417
and the
Regulations
thereunder.

 

6.13
SPECIAL
RULE FOR
CERTAIN
PROFIT
SHARING
PLANS

 

(a)
The provisions
of this
Section
apply
to a Participant
in a Profit
Sharing
Plan
or 401(k)
Profit
Sharing
Plan
to the
extent
elected
in the
Adoption
Agreement.
However,
unless
otherwise
permitted
pursuant
to Regulation
§1.411(d)
-4, this
Section
shall
not apply
with
respect
to amounts
that
are transferred
directly
or indirectly
(i.e.,
other
than
by a rollover)
to this
Plan
f rom a defined
benefit
plan,
money
purchase
pension
plan,
target
benefit
plan,
or stock
bonus
or profit
sharing
plan
which
is subject
to the
survivor
annuity
requirements
of Code
§§401(a)(11)
and 417.

 

(b)
If an election
is made
to not
offer
life
annuities
as a form
of distribution,
then
a Participant
shall
be prohibited
from
ele cting
benefits
in the
form
of a life
annuity
and the
Joint
and Survivor
Annuity
provisions
of Section
6.5 shall
not apply.

 

(c)
If an election
is made
to offer
life
annuities
as a form
of distribution
but not
as the
normal
form
of distribution,
then
the Joint
and Survivor
Annuity
provisions
of Section
6.5 shall
not apply
if a Participant
does not
elect
an annuity
form
of distribution.
Furthermore,
Subsection
(e) shall
not apply
if a Participant
elects
an annuity
form
of distribution.

 

(d)
Notwithstanding
anything
in Sections
6.2 and
6.6 to
the contrary,
upon
the death
of a Participant,
the automatic
form
of distribution
will
be a lump-sum
rather
than
a Qualified
Pre-Retirement
Survivor
Annuity.
Furthermore,
the Participant's
Spouse
will be
the Beneficiary
of the
Participant's
entire
Vested
interest
in the
Plan
unless
an election
is made
to waive
the Spous
e as Beneficiary.
The other
provisions
in Section
6.2 shall
be applied
by treating
the death
benefit
in this
Subsection
as though
it is a Qualified
Pre-Retirement
Survivor
Annuity.

 

(e)
Except
to the
extent
otherwise
provided
in this
Section,
the provisions
of Sections
6.2 and
6.5 regarding
spousal
consent
shall
be inoperative
with
respect
to this
Plan.

 

(f)
If a distribution
is one
to which
Code
§§401(a)(11)
and 417
do not apply,
such
distribution
may commence
less
than
thirty
(30) days
after
the notice
required
under
Regulation
§1.411(a)-11(c)
is given,
provided
that:

 

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

 

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

 

6.14
QUALIFIED
DOMESTIC
RELATIONS
ORDER
DISTRIBUTION

 

All
benefits
provided
to a Participant
in this
Plan
shall
be subject
to the
rights
afforded
to any
Alternate
Payee
under
a "q ualified
domestic
relations
order."
Furthermore,
unless
otherwise
elected
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and
Other
Permitted
Elections),
a distribution
to an Alternate
Payee
shall
be permitted
if such
distribution
is authorized
by a "qualified
domestic
relations
order,"
even
if the
affected
Participant
has not
reached
the "earliest
retirement
age."
For the
purposes
of this
Section,
"qualified
domestic
relations
order"
and "earliest
retirement
age"
shall
have
the meanings
set forth
under
Code
§414 (p).

 

Effective
as of April
6, 2007,
a domestic
relations
order
that
otherwise
satisfies
the requirements
for a "qualified
domestic
relations
order"
will not
fail
to be a "qualified
domestic
relations
order":
(i) solely
because
the order
is issued
after,
or revises,
another
domestic
relations
order
or "qualified
domestic
relations
order";
or (ii)
solely
because
of the
time
at which
the order
is is sued,
including
issuance
after
the Annuity
Starting
Date
or after
the Participant's
death.

 

6.15
DIRECT
ROLLOVERS

 

(a)
Right
to direct
rollover.
Notwithstanding
any provision
of the
Plan
to the
contrary
that
would
otherwise
limit
a "distributee's"
election
under
this
Section,
a "distributee"
may elect,
at the
time and
in the
manner
prescribed
by the
Administrator,
to have an "eligible
rollover
distribution"
paid
directly
to an "eligible
retirement
plan"
specified
by the
"distributee"
in a "direct
rollover."
However,
if less
than
the entire
amount
of the
"eligible
rollover
distribution"
is being
paid
directly
to an "eligible
retirement plan,"

    	 

    	 

    

 

then
the Administrator
may require
that
the amount
paid
directly
to such
plan
be at least
$500.
Furthermore,
the Administrator

may
apply
this
Section
by treating
a Participant's
Roth
Elective
Deferral
Account
separately
from
the Participant's
other
Acc ounts.

 

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

 

(1)
Eligible
rollover
distribution.
 An "eligible
rollover
distribution"
means any
distribution
described
in Code
§402(c)(4)
and
generally
includes
any distribution
of all
or any
portion
of the
balance
to the
credit
of the
"distributee,"
except
that
an "eligible
rollover
distribution"
does not
include:
any distribution
that
is one
of a series
of substantially
equal
periodic

payments
(not less
frequently
than
annually)
made
for the
life
(or life
expectancy)
of the
"distributee"
or the
joint
lives
(or joint

life
expectancies)
of the
"distributee"
and the
"distributee's"
"designated
Beneficiary,"
or for
a specified
period
of ten
(1 0) years
or more;
any distribution
to the
extent
such
distribution
is required
under
Code
§401(a)(9);
any hardship
distribution;
the
portion
of any
other
distribution(s)
that
is not
includible
in gross
income
(determined
without
regard
to the
exclusion
f or net
unrealized
appreciation
with
respect
to employer
securities);
and any
other
distribution
reasonably
expected
to total
less
than
$200 during
a year.
For purposes
of the
$200 rule,
a distribution
from
a designated
Roth
account
and a distribution
from
other
accounts
under the
Plan
may be treated
as made
under separate
plans.
In addition,
Section
6.8(f)
applies
with
respect
to distributions
made in
2009.

 

Notwithstanding
the above,
a portion
of a distribution
shall
not fail
to be an
"eligible
rollover
distribution"
merely
because
the
portion
consists
of after-tax
voluntary
Employee
contributions
which
are not
includible
in gross
income.
However,
such portion
may
be transferred
only
to:

 

(i)
       a traditional
individual
retirement
account
or annuity
described
in Code
§408(a)
or (b)
(a "traditional
IRA")

 

(ii)
for taxable
years
beginning
after
December
31, 2006,
a Roth
individual
account
or annuity
described
in Code

§408A
(a "Roth
IRA"),
or

 

(iii)
a qualified
defined
contribution
plan
or an annuity
contract
described
in Code
§401(a)
or Code
§403(b),
respectively,
that
agrees
to separately
account
for amounts
so transferred
(and
earnings
thereon),
including
separately
accounting
for the
portion
of such
distribution
which
is includible
in gross
income
and the
portion
of such
distribution
which
is not
so includible.

 

(2)
Eligible
retirement
plan.
An "eligible
retirement
plan"
is a "traditional
IRA,"
for distributions
made
after
December
31,

2007,
a "Roth
IRA,"
a qualified
trust
(an employees'
trust)
described
in Code
§401(a)
which
is exempt
from
tax under
Code

§501(a),
an annuity
plan
described
in Code
§403(a),
an eligible
plan
under
Code
§457(b)
which
is maintained
by a state,
political
subdivision
of a state,
or any
agency
or instrumentality
of a state
or political
subdivision
and which
agrees
to separately
account
for amounts
transferred
into such
plan
from
this
Plan,
and an
annuity
contract
described
in Code

§403(b),
that
accepts
the "distributee's"
"eligible
rollover
distribution."
The definition
of "eligible
retirement
plan"
shal l also
apply
in the
case
of a distribution
to a surviving
Spouse,
or to a Spouse
or former
Spouse
who is
an Alternate
Payee.
If any portion
of an "eligible
rollover
distribution"
is attributable
to payments
or distributions
from
a designated
Roth
account,
a n "eligible
retirement
plan"
with
respect
to such
portion
s hall
include
only
another
designated
Roth
account
of the
individual
from
whose
account
the payments
or distributions
were
made,
or a Roth
IRA of
such
individual.
A "direct
rollover"
of a distribution
from
a Roth
Elective
Deferral
Account
(other
than
an "in-Plan
Roth
rollover
contribution"
(as defined
in Section

12.11))
will only
be made
to another
Roth
Elective
Deferral
Account
under
an applicable
retirement
plan
described
in Code

§402A(e)(1)
or to a Roth
IRA described
in Code
§408A, and
only
to the
extent
that
the rollover
is permitted
under
the rules
of Code
§402(c).
In the
case of a "distributee"
who is
a non-Spouse
designated
Beneficiary,
(i) the
"direct
rollover"
may be
made
only
to a traditional
or Roth
individual
retirement
account
or an annuity
descr
ibed
in Code
§408(b)
("IRA")
that
is established
on behalf
of the
designated
non-Spouse
Beneficiary
and that
will be
treated
as an inherited
IRA pursuant
to the
provisions
of Code
§402(c)(11),
and (ii)
the determination
of any
required
minimum
distribution
required
under
Code

§401(a)(9)
that
is ineligible
for rollover
shall
be made
in accordance
with
IRS Notice
2007-7,
Q&A 17
and 18.

 

(3)
Distributee.
A "distributee"
includes
an Employee
or Former
Employee.
In addition,
the Employee's
or Former
Employee's
surviving
Spouse
and the
Employee's
or Former
Employee's
Spouse
or former
Spouse
who is
the Alternate
Payee,
are "distributees"
with
regard
to the
interest
of the
Spouse
or former
Spouse.

 

(4)
Direct
rollover.
A "direct
rollover"
is a payment
by the
Plan
to the
"eligible
retirement
plan"
specified
by the

"distributee."

 

(c)
Participant
notice.
A Participant
entitled
to an "eligible
rollover
distribution"
must receive
a written
explanation
of the
right
to a "direct
rollover,"
the tax
consequences
of not
making
a "direct
rollover,"
and,
if applicable,
any available
special
income
tax elections.
The notice
must be
provided
within
the same
thirty
(30) – one-hundred
eighty
(180) day
timeframe
applicable
to the
Participant
consent
notice
as set
forth
in Section
6.5(d)(3).
The "direct
rollover"
notice
must be
provided
to all
Participan
ts, unless
the total
amount
the Participant
will receive
as a distribution
durin
g the calendar
year is
expected
to be less
than
$200.

    	 

    	 

    

 

(d)
Non-Spouse
Beneficiary
rollover
right.
For distributions
after
December
31, 2009,
and unless
otherwise
elected
in the
Adoption
Agreement,
for distributions
after
December
31, 2006,
a non-Spouse
Beneficiary
who is
a "designated
Beneficiary"
under
Code
§401(a)(9)(E)
and the
Regulations
thereunder,
by a direct
trustee-to-trustee
transfer
("direct
rollover"),
may roll
over
all
or any
portion
an "eligible
rollover
distribution"
to an IRA
the B eneficiary
establishes
for purposes
of receiving
the distribution.

 

(1)
Certain
requirements
not applicable.
Any distribution
made
prior
to January
1, 2010
is not
subject
to the
"direct
rollover"
requirements
of Code
§401(a)(31)
(including
Code
§401(a)(31)(B),
the notice
requirements
of Code
§402(f)
or the
mandatory
withholding
requirements
of Code
§3405(c)).

 

(2)
Trust
Beneficiary.
If the
Participant's
named
Beneficiary
is a trust,
the Plan
may make
a direct
rollover
to an IRA
on behalf
of the
trust,
provided
the trust
satisfies
the requirements
to be a "designated
Beneficiary."

 

6.16
RESTRICTIONS
ON DISTRIBUTION
OF ASSETS
TRANSFERRED
FROM A MONEY
PURCHASE
PLAN

 

Notwithstanding
any provision
of this
Plan
to the
contrary,
to the
extent
that
any optional
form
of benefit
under
this
Plan
p ermits
a distribution
prior
to the
Employee's
retirement,
death,
Total
and Permanent
Disability,
or severance
from
employment,
and pri
or to Plan
termination,
the optional
form
of benefit
is not
available
with
respect
to benefits
attributable
to assets
(including
th e post-transfer
earnings
thereon)
and liabilities
that
are transferred,
within
the meaning
of Code
§414(l),
to this
Plan
from
a money
purchas
e pension
plan
qualified
under Code
§401(a)
(other
than
any portion
of those
assets
and liabilities
attributable
to after-tax
voluntary
Employee
contributions
or to
a direct
or indirect
rollover
contribution).
Notwithstanding
anything
in the
Plan
to the
contrary,
effect
ive with
respect
to Plan
Years
beginning
after
June 30,
2008,
a Participant
may not
obtain
an in-service
distribution
with
respect
to such
transferred
amounts
prior
to the
earlier
of the
Participant's
Normal
Retirement
Age or
attainment
of age
62.

 

6.17
CORRECTIVE
DISTRIBUTIONS

 

Nothing
in this
Article
shall
preclude
the Administrator
from
making
a distribution
to a Participant,
to the
extent
such
dist
ribution
is made
to correct
a qualification
defect
in accordance
with
the corrective
procedures
under
the IRS'
Employee
Plans
Compliance
Resolution
System
or any other
voluntary
compliance
programs
established
by the
IRS or the
Department
of Labor.

 

6.18
QUALIFIED
RESERVIST
DISTRIBUTIONS
AND HEART
ACT

 

(a)
Qualified
reservist
distribution
defined.
A "qualified
reservist
distribution"
is any distribution
to an individual
who is
ordered
or called
to active
duty
after
September
11, 2001,
if: (1)
the distribution
is from
amounts
attributable
to elective
deferrals
in a 401(k)
plan;
(2) the
individual
was (by
reason
of being
a member
of a reserve
component,
as defined
in section
101 of
title

37, United
States
Code)
ordered
or called
to active
duty for
a period
in excess
of 179
days or
for an
indefinite
period;
and (3)
the

Plan
makes
the distribution
during
the period
beginning
on the
date of
such
order
or call,
and ending
at the
close
of the
active
duty period.

 

(b)
Death
benefits.
In the
case
of a death
occurring
on or after
January
1, 2007,
if a Participant
dies
while
performing
qualified
military
service
(as defined
in Code
§414(u)),
the Participant's
Beneficiary
is entitled
to any
additional
benefits
(other
than
b enefit
accruals
(unless
otherwise
elected
in the
Adoption
Agreement)
relating
to the
period
of qualified
military
service)
provided
under the
Plan
as if the
Participant
had resumed
employment
and then
terminated
employment
on account
of death.
Moreover,
the

Plan
will credit
the Participant's
qualified
military
service
as service
for vesting
purposes,
as though
the Participant
had resumed
employment
under Uniformed
Services
Employment
and Reemployment
Rights
Act of
1994, as
amended
(USERRA)
immediately
prior
to the
Participant's
death.

 

(c)
Military
Differential
Pay.
For years
beginning
after
December
31, 2008:
(1) an
individual
receiving
Military
Differential
Pay is
treated
as an Employee
of the
Employer
making
the payment;
(2) the
Military
Differential
Pay is
treated
as 415
Compensatio
n (and
Compensation
unless
otherwise
elected
in the
Adoption
Agreement);
and (3)
the Plan
is not
treated
as failing
to meet
the requirements
of any
provision
described
in Code
§414(u)(1)(C)
(or corresponding
Plan
provisions,
including,
but not
limited
t o, Plan
provisions
related
to the
ADP or
ACP test)
by reason
of any
contribution
or benefit
which
is based
on the
Military
Differential
Pay.
The Administrator
operationally
may determine,
for purposes
of the
provisions
described
in Code
§414(u)(1)(C),
whether
t o take
into
account
any Elective
Deferrals,
and if
applicable,
any matching
contributions,
attributable
to Military
Differential
Pay.

 

Subsection
(c)(3) above
applies
only
if all
Employees
of the
Employer
performing
service
in the
uniformed
services

described
in Code
§3401(h)(2)(A)
are entitled
to receive
Military
Differential
Pay on
reasonably
equivalent
terms
and,
if eligible
to participate
in a retirement
plan
maintained
by the
Employer,
to make
contributions
based
on the
payments
on reasonably
equivalent
terms
(taking
into account
Code
§410(b)(3),
(4),
and (5)).

 

(d)
Deemed
Severance.
Notwithstanding
Subsection
(c)(1) above,
if elected
in the
Adoption
Agreement,
a Participant
performs
service
in the
uniformed
services
(as defined
in Code
§414(u)(12)(B))
on active
duty
for a period
of more
than
30 days,
the Participant
will
be deemed
to have
a severance
from
employment
solely
for purposes
of eligibility
for distribution
of amounts
not subject
to Code
§412.
However,
the Plan
will not
distribute
such
a Participant's
Account
on account
of this
deemed
severance
unless
the Participant
specifically
elects
to receive
a benefit
distribution
hereunder.
If a Participant
elects
to receive
a distribution
on account
of this
deemed
severance,
then
the individual
may not
make
an Elective
Deferral
or after
-tax
voluntary
Employee
contribution
during
the six
(6) month
period
beginning
on the
date
of the
distribution.
If a Participant
would
be entitled
to a distribution
on account
of a deemed
severance,
and a distribution
on account
of another
Plan
provision
(such
as a "qualified
reservist
distribution"
as defined
in Subsection
(a) above),
then
the other
Plan
provision
will control
and the
six (6)
month
suspension
will not
apply.

    	 

    	 

    

 

ARTICLE
VII 

TRUSTEE
AND CUSTODIAN

 

7.1
BASIC
RESPONSIBILITIES
OF THE
TRUSTEE

 

(a)
Application
of Article.
The provisions
of this
Article,
other
than
Sections
7.6 and
7.15,
shall
not apply
to this
Plan
if a separate
trust
agreement
is being
used.
Furthermore,
the provisions
of this
Article,
other
than
Sections
7.5,
7.6 and
7.15,
s hall
not
apply
if the
Plan
is fully
insured.
If the
Employer
has appointed
two or
more Trustees
to hold
Plan
assets,
then
each Trustee
shall
be the
Trustee
only
with
respect
to those
Plan
assets
specifically
deposited
by the
Employer
in the
Trust
Fund
for whic
h

such
Trustee
is the
trustee.
References
in the
Plan
to the
responsibilities,
power
or duties
of the
Trustee
and any
other
provisions
in the
Plan
relating
to the
Trustee
shall
be interpreted
as applying
to each
Trustee
only
with
respect
to the
assets
of the
T rust
Fund
for which
such Trustee
is the
Trustee.
Each
Trustee
shall
have
no responsibility
for,
or liability
with
respect
to, any
of the
Plan
assets
other
than
the assets
for which
it serves
as Trustee.

 

(b)
Duty
to collect
contributions.
 The Trustee
is obligated
to collect
any amounts
owed
to the
Trust,
except
as otherwise
provided
in Section
7.3(c),
even
if such
amounts
are owed
by the
Employer,
unless
another
person
or entity
has been
designate
d with such
duty
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections)
or other
writt
en agreement
(including
a designation
made pursuant
to Section
7.3(c)).
In determining
how to
discharge
any duty
to collect
contributions,
the Trustee
should
weigh
the value
of the
Plan
assets
involved,
the likelihood
of a successful
recovery,
and the
expenses
expected
to be incurred.

 

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

 

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

 

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

 

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

 

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

 

(4)
Any costs
and expenses
related
to compliance
with
the Participant's
directions
shall
be borne
by the
Partici
pant's

Directed
Account,
unless
paid
by the
Employer.

 

(5)
Notwithstanding
anything
herein
above
to the
contrary,
the Trustee
shall
not invest
any portion
of a Participant's

Directed
Account
in "collectibles"
within
the meaning
of Code
§408(m).

 

(e)
Records.
The Trustee
will
maintain
records
of receipts
and disbursements
and furnish
to the
Employer
and/or
Administrator
for each
Plan
Year
a written
annual
report
pursuant
to Section
7.9.

 

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

 

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

 

7.2
INVESTMENT
POWERS
AND DUTIES
OF DISCRETIONARY
TRUSTEE

 

(a)
Discretionary
authority.
This
Section
applies
if the
Employer,
in the
Adoption
Agreement
or as otherwise
agreed
upon by
the Employer
and the
Trustee,
designates
the Trustee
to administer
all or
a portion
of the
trust
as a Discretionary
Trustee.
If so designated,
then
the Trustee
has the
discretion
and authority
to invest,
manage,
and control
those
Plan
assets
except,
however,
with
respect
to those
assets
which
are subject
to the
investment
direction
of a Participant
(if Participant
directed
investme
nts are

    	 

    	 

    

 

permitted),
or an Investment
Manager,
the Administrator,
or other
agent
appointed
by the
Employer.
The exercise
of any
investment
discretion
hereunder
shall
be consistent
with the
"funding
policy
and method"
determined
by the
Employer.

 

(b)
Duties.
The Trustee
shall,
except
as otherwise
provided
in this
Plan,
invest
and reinvest
the Trust
Fund
to keep
the Trust
Fund invested
without
distinction
between
principal
and income
and in
such
securities
or property,
real or
personal,
wherever
situated,
as the
Trustee
shall
deem advisable,
including,
but not
limited
to, common
or preferred
stocks,
open
-end
or closed-end
mutual
funds,
bonds
and other
evidences
of indebtedness
or ownership,
and real
estate
or any
interest
therein.
The Trustee
shall
at all
times in
making
investments
of the
Trust
Fund
consider,
among
other
factors,
the short
and long
-term
financial
needs
of the
Plan
on the
basis
of information
furnished
by the
Employer.
In making
such
investments,
the Trustee
shall
not be
restricted
to securities
or other
property
of the
character
expressly
authorized
by the
applicable
law for
trust
investments;
however,
the

Trustee
shall
give
due regard
to any
limitations
imposed
by the
Code
or the
Act so
that
at all
times
this
Plan
may qualify
as a

qualified
Plan
and Trust.
The Trustee
shall
discharge
its duties
with respect
to the
Plan
solely
in the
interest
of the
Parti
cipants
and
Beneficiaries
and with
the care,
skill,
prudence,
and diligence
under the
circumstances
then
prevailing
that
a prudent
person
acting
in a like
capacity
and familiar
with
such
matters
would
use in
the conduct
of an enterprise
of a like
character
and wi
th like
aims.

 

(c) Powers.
The Trustee,
in addition
to all
powers
and authorities
under common
law, statutory
authority,
including
the Act,
and other
provisions
of this
Plan,
shall
have
the following
powers
and authorities
to be exercised
in the
Trustee's
sole discreti
on:

 

(1)
To purchase,
or subscribe
for,
any securities
or other
property
and to
retain
the same.
In conjunction
with
the purchase
of securities,
margin
accounts
may be
opened
and maintained;

 

(2)
To sell,
exchange,
convey,
transfer,
grant
options
to purchase,
or otherwise
dispose
of any
securities
or other
property
held
by the
Trustee,
by private
contract
or at public
auction.
No person
dealing
with
the Trustee
shall
be bound
to see
to th e application
of the
purchase
money
or to inquire
into
the validity,
expediency,
or propriety
of any
such
sale
or other
disposition,
with or
without
advertisement;

 

(3)
To vote
upon
any stocks,
bonds,
or other
securities;
to give
general
or special
proxi
es or powers
of attorney
with or without
power
of substitution;
to exercise
any conversion
privileges,
subscription
rights
or other
options,
and to
make any
payments
incidental
thereto;
to oppose,
or to consent
to, or
otherwise
participate
in, corporate
reorganizations
or other
changes
affecting
corporate
securities,
and to
delegate
discretionary
powers,
and to
pay any
assessments
or charges
in connection
therewith;
and generally
to exercise
any of
the powers
of an owner
with respect
to stocks,
bonds,
secur ities,
or other
property;

 

(4)
To cause
any securities
or other
property
to be registered
in the
Trustee's
own name,
or in the
name
of a nominee
or in a
street
name
provided
such
securities
or other
property
are held
on behalf
of the
Plan
by (i)
a bank or
trust
company,
(ii)
a broker
or dealer
registered
under
the Securities
Exchange
Act of
1934,
or a nominee
of such
broker
or dealer,
or (iii)
a clearing
agency
as defined
in Section
3(a)(23)
of the
Securities
Exchange
Act of
1934;

 

(5)
To invest
in a common,
collective,
or pooled
trust
fund
(the
provisions
of which
are incorporated
herein
by reference)
maintained
by any
Trustee
(or any
affiliate
of such
Trustee)
hereunder
pursuant
to Revenue
Ruling
81-100
(as modified
by Rev.
Rul. 2011-1
or any
subsequent
guidance),
all or
such
part
of the
Trust
Fund
as the
Trustee
may deem
advisable,
and the
part
of the
Trust
Fund so
transferred
shall
be subject
to all
the terms
and provisions
of the
common,
collective,
or pool
ed trust
fund
which
contemplate
the commingling
for investment
purposes
of such
trust
assets
with trust
assets
of other
trusts.
The name
of the
trust
fund
may be
specified
in Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections).
The Trustee
may withdraw
from
such
common,
collective,
or pooled
trust
fund
all or
such
part
of the
Trust
Fund
as the
Trustee
may deem
advisable;

 

(6)
To borrow
or raise
money
for the
purposes
of the
Plan
in such
amount,
and upon
such
terms
and conditions,
as the
Trustee
shall
deem advisable;
and for
any sum
so borrowed,
to issue
a promissory
note
as Trustee,
and to
secure
the repayment
thereof
by pledging
all,
or any
part,
of the
Trust
Fund;
and no
person
lending
money
to the
Trustee
shall
be bound
to see
to the
application
of the
money
lent or
to inquire
into
the validity,
expediency,
or propriety
of any
borrowing;

 

(7)
To accept
and retain
for such
time as
it may deem
advisable
any securities
or other
property
received
or acquired
by it as Trustee
hereunder,
whether
or not
such
securities
or other
property
would
normally
be purchased
as investments
hereunder;

 

(8)
To make,
execute,
acknowledge,
and deliver
any and
all documents
of transfer
and conveyance
and any
and all
other
instruments
that
may be
necessary
or appropriate
to carry
out the
powers
herein
granted;

 

(9)
To settle,
compromise,
or submit
to arbitration
(provided
such
arbitration
does not
apply
to qualification
issues
nor to
Participants
or Beneficiaries)
any claims,
debts,
or damages
due or owing
to or from
the Plan,
to commence
or defend
suits
or legal
or administrative
proceedings,
and to represent
the Plan
in all
suits
and legal
and administ
rative
proceedings;

 

(10)
To employ
suitable
agents
and counsel
and to
pay their
reasonable
expenses
and compensation,
and such
agents
or counsel
may or may
not be
an agent
or counsel
for the
Employer;

 

(11)
To apply
for and
procure
from
the Insurer
as an investment
of the
Trust
Fund
any annuity
or other
Contracts
(on the
life
of any
Participant,
or in the
case of a Profit
Sharing
Plan
(including
a 401(k)
Plan),
on the
life
of any person
in whom
a Participant
has an
insurable
interest,
or on the
joint
lives
of a Participant
and any
person
in whom
the Participant
has an

    	 

    	 

    

 

insurable
interest)
as the
Administrator
shall
deem proper;
to exercise,
at any
time or
from
time to
time,
whatever
rights
an d privileges
may be
granted
under
such annuit
y, or other
Contracts;
to collect,
receive,
and settle
for the
proceeds
of all
such
annuity,
or other
Contracts
as and when
entitled
to do so under
the provisions
thereof;

 

(12)
To invest
funds
of the
Trust
in time
deposits
or savings
accounts
bearing
a reasonable
rate of
interest
or in cash or
cash balances
without
liability
for interest
thereon,
including
the specific
authority
to invest
in any
type of deposit
of th e Trustee
(or of a financial
institution
related
to the
Trustee);

 

(13)
To invest
in Treasury
Bills
and other
forms
of United
States
government
obligations;

 

(14)
To sell,
purchase
and acquire
put or
call
options
if the
options
are traded
on and
purchased
through
a national
securities
exchange
registered
under
the Securities
Exchange
Act of
1934, as
amended,
or, if
the options
are not
traded
on a national
securities
exchange,
are guaranteed
by a member
firm
of the
New York
Stock
Exchange
regar
dless
of whether
such
options
are covered;

 

(15)
To deposit
monies
in federally
insured
savings
accounts
or certificates
of deposit
in banks
or savings
and loan
associations
including
the specific
authority
to make
deposit
into
any savings
accou
nts or
certificates
of deposit
of the
Trustee
(or a financial
institution
related
to the
Trustee);

 

(16)
To pool
all
or any
of the
Trust
Fund,
from
time to
time,
with
assets
belonging
to any
other
qualified
employee
pension
benefit
trust
created
by the
Employer
or any
Affiliated
Employer,
and to
commingle
such
assets
and make
joint
or common
investments
and carry
joint
accounts
on behalf
of this
Plan
and Trust
and such
other
trust
or trusts,
allocating
undivided
shares
or interests
in such
investments
or accounts
or any
pooled
assets
of the
two or
more
trusts
in accordance
with
their
respective
interests;
and

 

(17)
To do all
such
acts
and exercise
all such
rights
and privileges,
although
not specifically
mentioned
herein,
as the

Trustee
may deem
necessary
to carry
out the
purposes
of the
Plan.

 

(d)
Appointment
of Investment
Manager
or others.
The Trustee
may appoint,
at its option,
an Investment
Manager,
investment
adviser,
or other
agent
to provide
direction
to the
Trustee
with respect
to the
investment
of any
or all
of the
Pl an assets.
Such appointment
shall
be in writing
and shall
specifically
identify
the Plan
assets
with respect
to which
the Investment
Manager
or other
agent
shall
have
the authority
to direct
the investment.

 

7.3
INVESTMENT
POWERS
AND DUTIES
OF NONDISCRETIONARY
TRUSTEE

 

(a)
No discretionary
powers.
This
Section
applies
if the
Employer,
in the
Adoption
Agreement
or as otherwise
agreed
upon by
the
Employer
and the
Trustee,
designates
the Trustee
to administer
all or
a portion
of the
trust
as a nondiscretionary
Trustee.
If so designated,
then
the Trustee
shall
have
no discretionary
authority
to invest,
manage,
or control
those
Plan
assets,
but mu
st act
solely
as a Directed
Trustee
of those
Plan
assets.
A nondiscretionary
Trustee,
as Directed
Trustee
of the
Plan
funds
it h olds,

is authorized
and empowered,
by way
of limitation,
with
the powers,
rights
and duties
set forth
herein
and in
Section
7.14,
each of

which
the nondiscretionary
Trustee
exercises
solely
as Directed
Trustee
in accordance
with
the direction
of the
party
which
h as the
authority
to manage
and control
the investment
of the
Plan
assets.
If no directions
are provided
to the
Trustee,
the Employer
will
provide
necessary
direction.
Furthermore,
the Employer
and the
nondiscretionary
Trustee
may,
in writing,
limit
the power
s of the
nondiscretionary
Trustee
to any
combination
of powers
listed
within
this
Section.
The party
which
has the
author
ity to
manage
and control
the investment
of the
Plan
assets
shall
discharge
its duties
with
respect
to the
Plan
solely
in the
interest
of t he Participants
and Beneficiaries
and with
the care,
skill,
prudence,
and diligence
under the
circumstances
then
prev
ailing
that
a prudent
person
acting
in a like
capacity
and familiar
with
such
matters
would
use in
the conduct
of an enterprise
of a like

character
and with
like
aims.

 

(b)
Powers.
The Trustee,
in addition
to all
powers
and authorities
under common
law, statutory
authority,
including
the Act,
and other
provisions
of this
Plan,
shall
have
the following
powers
and authorities:

 

(1)
To invest
the assets,
without
distinction
between
principal
and income,
in securities
or property,
real or
personal,
wherever
situated,
including,
but not
limited
to, common
or preferred
stocks,
open
-end
or closed-end
mutual
funds,
bonds
and other
evidences
of indebtedness
or ownership,
and real
estate
or any
interest
therein.
In making
such
investments,
the Trustee
shall
not be
restricted
to securities
or other
property
of the
character
expressly
authorized
by the
applicable
law f or
trust
investments;
however,
the Trustee
shall
give
due regard
to any
limitations
imposed
by the
Code
or the
Act so
that
at all
times
this
Plan
may qualify
as a qualified
Plan
and Trust;

 

(2)
To purchase,
or subscribe
for,
any securities
or other
property
and to
retain
the same.
In conjunction
with
the purchase
of securities,
margin
accounts
may be
opened
and maintained;

 

(3)
To sell,
exchange,
convey,
transfer,
grant
options
to purchase,
or otherwise
dispose
of any
securities
or other
property
held
by the
Trustee,
by private
contract
or at public
auction.
No person
dealing
with
the Trustee
shall
be bound
to see
to the
application
of the
purchase
money
or to inquire
into
the validity,
expediency,
or propriety
of any
such
sale
or other
disposition,
with or
without
advertisement;

 

(4)
At the
direction
of the
party
which
has the
authority
or discretion,
to vote
upon any
stocks,
bonds,
or other
securities;
to give
general
or special
proxies
or powers
of attorney
with or
without
power
of substitution;
to exercise
any conversion
privileges,
subscription
rights
or other
options,
and to make
any payments
incidental
thereto;
to oppose,
or to consent
to, o r

    	 

    	 

    

 

otherwise
participate
in, corporate
reorganizations
or other
ch anges
affecting
corporate
securities,
and to
delegate
powers,
and
pay any
assessments
or charges
in connection
therewith;
and generally
to exercise
any of
the powers
of an owner
with
respect
to stocks,
bonds,
securities,
or other
property;

 

(5)
To cause
any securities
or other
property
to be registered
in the
Trustee's
own name,
or in the
name of
a nominee
or in a
street
name provided
such
securities
or other
property
are held
on behalf
of the
Plan
by (i)
a bank or
trust
company,
(ii)
a broker
or dealer
registered
under
the Securities
Exchange
Act of
1934,
or a nominee
of such
broker
or dealer,
or (iii)
a clearing
agency
as defined
in Section
3(a)(23)
of the
Securities
Exchange
Act of
1934;

 

(6)
To invest
in a common,
collective,
or pooled
trust
fund
(the
provisions
of which
are incorporated
herein
by reference)
maintained
by any
Trustee
(or any
affiliate
of such
Trustee)
hereunder
pursuant
to Revenue
Ruling
81-100
(as modified
by Rev.
Rul. 2011-1
or any
subsequent
guidance),
all or
such
part
of the
Trust
Fund
as the
party
which
has the
authority
to manage
and control
the investment
of the
assets
shall
deem advisable,
and the
part
of the
Trust
Fund so
transferred
shall

be
subject
to all
the terms
and provisions
of the
common,
collective,
or pooled
trust
fund
which
contemplate
the commingling
for
investment
purposes
of such
trust
assets
with
trust
assets
of other
trusts.
The name
of the
trust
fund
may be specified
i n Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections);

 

(7)
To borrow
or raise
money
for the
purposes
of the Plan
in such
amount,
and upon
such
terms
and conditions,
as the Trustee
shall deem
advisable;
and for
any sum
so borrowed,
to issue
a promissory
note
as Trustee,
and to
secure
the repayment
thereof
by pledging
all,
or any
part,
of the Trust
Fund;
and no
person
lending
money
to the Trustee
shall be
bound
to see
to the
application
of the money
lent or to
inquire
into the
validity,
expediency,
or propriety
of any
borrowing;

 

(8)
To make,
execute,
acknowledge,
and deliver
any and
all documents
of transfer
and conveyance
and any
and all
other
instruments
that
may be
necessary
or appropriate
to carry
out the
powers
herein
granted;

 

(9)
To settle,
compromise,
or submit
to arbitration
(provided
such
arbitration
does not
apply
to qualification
issues
nor to
Participants
or Beneficiaries)
any claims,
debts,
or damages
due or owing
to or from
the Plan,
to commence
or defend
suits
or legal
or administrative
proceedings,
and to represent
the Plan
in all
suits
and legal
and administrative
proceedings;

 

(10)
To employ
suitable
agents
and counsel
and to
pay their
reasonable
expenses
and c ompensation,
and such
agent
or counsel
may or may
not be
an agent
or counsel
for the
Employer;

 

(11)
To apply
for
and procure
from
the Insurer
as an investment
of the
Trust
Fund
any annuity
or other
Contracts
(on the
life
of any
Participant,
or in the
case of a Profit
Sharing
Plan
(including
a 401(k)
Plan),
on the
life
of any person
in whom
a Participant
has an
insurable
interest,
or on the
joint
lives
of a Participant
and any
person
in whom
the Participant
has an
insurable
interest)
as the
Administrator
shall
deem proper;
to exercise,
at the
direction
of the
person
with
the authority
to do so,
whatever
rights
and privileges
may be
granted
under
such
annuity
or other
Contracts;
to collect,
receive,
and settle
for the
proceeds
of all
such annuity
or other
Contracts
as and when
entitled
to do so under
the provisions
thereof;

 

(12)
To invest
funds
of the
Trust
in time
deposits
or savings
accounts
bearing
a reasonable
rate
of interest
or in cash
or cash
balances
without
liability
for interest
thereon,
including
the specific
authority
to invest
in any
type of
deposit
of the
Trustee
(or of
a financial
institution
related
to the
Trustee);

 

(13)
To invest
in Treasury
Bills
and other
forms
of United
States
government
obligations;

 

(14)
To sell,
purchase
and acquire
put or
call
options
if the
options
are traded
on and
purchased
through
a national
securities
exchange
registered
under
the Securities
Exchange
Act of
1934, as
amended,
or, if
the options
are not
traded
on a national
securities
exchange,
are guaranteed
by a member
firm
of the
New York
Stock
Exchange
regardless
of whether
such
options
are covered;

 

(15)
To deposit
monies
in federally
insured
savings
accounts
or certificates
of deposit
in banks
or savings
and loan
associations
including
the specific
authority
to make
deposit
into
any savings
accounts
or certificates
of deposit
of the
Trustee
(or a financial
institution
related
to the
Trust
ee); and

 

(16)
To pool
all or
any of
the Trust
Fund,
from
time to
time,
with
assets
belonging
to any
other
qualified
employee
pension
benefit
trust
created
by the
Employer
or any
Affiliated
Employer,
and to
commingle
such
assets
and make
joint
or common
investments
and carry
joint
accounts
on behalf
of this
Plan
and such
other
trust
or trusts,
allocating
undivided
shares
or interests
in such
investments
or accounts
or any
pooled
assets
of the
two or
more
trusts
in accordance
with
their
respective
interests.

 

(c)
The Trustee
shall
have
no responsibility
to enforce
the collection
from
the Employer
of any
contribution
to the
Plan
or determine
the correctness
of the
amount
or timing
any contribution.
The Employer
is responsible
for transmit
ting
contributions
to the
Trustee
at such
times
and in such
manner
as is mutually
agreed
upon by
the Employer
and the
Trustee
and as
required
by

the
Plan
and applicable
law.
Further,
the Employer
represents
and warrants
that
it either
has responsibility
as a "named
fiduciary"

(as
defined
in Act
§402(a)(2))
or has
properly
delegated
the responsibility
to a Plan
fiduciary,
other
than
the nondiscretion
ary

Trustee,
for determining
the correctness,
amount
and timing
of contributions
and for
the collection
of con
tributions.

    	 

    	 

    

 

7.4
POWERS
AND DUTIES
OF CUSTODIAN

 

The
Employer
may appoint
a Custodian
of the
Plan
assets.
A Custodian
has the
same powers,
rights
and duties
as a nondiscretionary
Trustee.
Any reference
in the Plan
to a Trustee
also is a reference
to a Custodian
unless
the context
of the
Plan
indicates
otherwise.
A limitation
of the
Trustee's
liability
by Plan
provision
also acts
as a limitation
of the
Custodian's
liability.
Th e Custodian
will be
protected
from
any liability
with respect
to actions
taken
pursuant
to the
direction
of the
Trustee,
Admini
strator,
the Employer,
an Investment
Manager,
a named
Fiduciary
or other
third
party
with authority
to provide
direction
to the
Custodian.
The resignation
or removal
of the
Custodian
shall
be made
in accordance
with Section
7.11
as though
the Custodian
were
a Trustee.

 

7.5
LIFE
INSURANCE

 

(a)
Permitted
insurance.
The Trustee
(or Insurer),
in accordance
with nondiscriminatory
operational
procedures
of the
Administrator,
shall
ratably
apply
for,
own, and
pay all
premiums
on Contracts
on the
lives
of the
Participants
or, in
the ca
se of a Profit
Sharing
Plan (including
a 401(k)
Plan),
on the
life
of a member
of the
Participant'
s family
or on the
joint
lives
of a Participant
and
a member
of the
Participant's
family.
Furthermore,
if a Contract
is purchased
on the
joint
lives
of the
Participant
and a nother
person
and such
other
person
predeceases
the Participant,
then
the Contract
may not
be maintained
under
this
Plan. Any
initial

or
additional
Contract
purchased
on behalf
of a Participant
shall
have
a face
amount
of not
less
than
$1,000,
an amount
set f orth
in the
Administrator's
procedures,
or the
limitation
of the
Insurer,
whichever
is greater.
If a life
insurance
Contract
is to be
purchased
for a Participant,
then
the aggregate
premium
for ordinary
life insurance
for each
Participant
must be
less
than
50 % of the
aggregate
contributions
and Forfeitures
allocated
to the
Participant's
Combined
Account.
For purposes
of this
limitation,
ordinary
life
insurance
Contracts
are Contracts
with both
non-decreasing
death
benefits
and non-increasing
premiums.
If term
insurance
or universal
life
insurance
is purchased,
then
the aggregate
premium
must be
25% or
less
of the
aggregate
contributions
and Forfeitures
allocated
to the
Participant's
Combined
Account.
If both
term
insurance
and ordinary
life
insur
ance are
purchased,
then
the premium
for term
insurance
plus
one-half
of the
premium
for ordinary
life
insurance
may not
in the
aggregate
exceed
25% of
the aggregate
Employer
contributions
and Forfeitures
allocated
to the
Participant's
Combined
Account.
Notwithstanding
the preceding,
the limitations
imposed
herein
with
respect
to the
purchase
of life
insurance
shall
not apply,
in the
case
of a Profit
Sharing
Plan
(including
a 401(k)
Plan),
to the
portion
of the
Participant's
Account,
other
than
the Participant's
Elective
Deferral
Account,
Qualified
Matching
Account
and Qualified
Nonelective
Contri
bution
Account,
that
has accumulated
for at
least
two (2)
Plan
Years
or to the
entire
Participant's
Account
if the
Participant
has been
a Participant
in the
Plan
for at
least
five
(5) years.
In addition,
amounts
transferred
to this
Plan
in accordance
with
Section
4.6(f)(1)(ii)
or (iii)
and a Participant's
Voluntary
Contribution
Account
may be used
to purchase
Contracts
without
limitation.
Thus,
amounts
that
are not
subject
to th e limitations
contained
herein
may be used
to purchase
life
insurance
on any
person
in whom
a Participant
has an
insurable

interest
or on the
joint
lives
of a Participant
and
any person
in whom
the Participant
has an
insurable
interest,
and without
regard

to
the amount
of premiums
paid
to purchase
any life
insurance
hereunder.

 

(b)
Contract
conversion
at retirement.
Subject
to the
survivor
annuity
requirements
of Sections
6.5 and
6.6 (if
applicable),
the Trustee
(or Insurer)
must distribute
the Contracts
to the
Participant
or convert
the entire
value
of the
Contracts
at or before
retirement
into
cash or provide
for a periodic
income
so that
no portion
of such
value
may be used
to continue
life
insurance
protection
beyond
the date
on which
benefits
commenc
e.

 

(c)
Limitations
on purchase.
Notwithstanding
anything
herein
above
to the
contrary,
amounts
credited
to a Participant's
Qualified
Voluntary
Employee
Contribution
Account
pursuant
to Section
4.9,
shall
not be
applied
to the
purchase
of life
insurance
Contracts.
Furthermore,
no life
insurance
Contracts
shall
be required
to be obtained
on an individual's
life
if, for
any reas
on (other
than
the nonpayment
of premiums)
the Insurer
will
not issue
a Contract
on such
individual's
life.

 

(d)
Proceeds
payable
to Plan.
The Trustee
(or Insurer)
will be
the owner
of any
life
insurance
Contract
purchased
under
the terms
of this
Plan.
The Contract
must provide
that
the proceeds
will be payable
to the
Trustee
(or Insurer);
however,
the Tru
stee
(or Insurer)
shall
be required
to pay
over
all proceeds
of the
Contract
to the
Participant's
"designated
Beneficiary"
in accordance
with the
distribution
provisions
of Article
VI. A Participant's
Spouse
will be
the "designated
Beneficiary"
pursuant
to Secti
on 6.2,
unless
a qualified
election
has been
made in
accordance
with
Sections
6.5 and
6.6 of
the Plan,
if applicable.
Under no
circumstances
shall
the Trust
retain
any part
of the
proceeds
that
are in
excess
of the
cash
surrender
value
immediately
prio
r to death.
However,
the Trustee
(or Insurer)
shall
not pay
the proceeds
in a method
that
would
violate
the requirements
of the
Retirement
Equity
Act of
1984, as
stated
in Article
VI of the
Plan,
or Code
§401(a)(9)
and the
Regulations
thereunder.
In the
event
of any
conflict
between
the terms
of this
Plan
and the
terms
of any
insurance
Contract
purchased
hereunder,
the Plan
provisions
shall
control.

 

(e)
No responsibility
for act
of Insurer.
The Employer,
the Administrator
and the
Trustee
shall
not be
responsible
for the
validity
of the
provisions
under a Contract
issued
hereunder
or for the
failure
or refusal
by the
Insurer
to provide
benefits
under
such
Contract.
The Employer,
Administrator
and the
Trustee
are also
not responsible
for any
action
or failure
to act by
the I nsurer
or any
other
person
which
results
in the
delay
of a payment
under the
Contract
or which
renders
the Contract
invalid
or unenforceable
in whole
or in part.

 

7.6
LOANS
TO PARTICIPANTS

 

(a)
Permitted
loans.
The Trustee
(or the
Administrator
if the
Trustee
is a nondiscretionary
Trustee
or if loans
are treated
as Participant
directed
investments)
may, in
the Trustee's
(or,
if applicable,
the Administrator's)
sole
discretion,
make
loans
to Participants
or Beneficiaries.
If loans
are permitted,
then
the following
shall
apply:
(1) loans
shall
be made
available
to all
Participants
and Beneficiaries
on a reasonably
equivalent
basis;
(2) loans
shall
not be
made
available
to Highly
Compensated
Employees
in an amount
greater
than
the amount
made
available
to other
Participants;
(3) loans
shall
bear a reasonable
rate
of interest;
(4) loans
shall
be adequately
secured;
and (5)
loans
shall provide
for periodic
repayment
over
a reasonable
period
of

    	 

    	 

    

 

time.
Furthermore,
no Participant
loan
shall
exceed
the Participant's
Vested
interest
in the
Plan.
For purposes
of this
Secti
on, the
term
Participant
shall
include
any Eligible
Employee
who is
not yet
a Participant,
if, pursuant
to the
Adoption
Agreement,
"rollovers"
are permitted
to be accepted
from
Eligible
Employees.

 

(b)
Prohibited
assignment
or pledge.
An assignment
or pledge
of any
portion
of a Participant's
interest
in the
Plan
and a loan,
pledge,
or assignment
with
respect
to any insurance
Contract
purchased
under
the Plan,
shall
be treated
as a loan
under this
Section.

 

(c)
Spousal
consent.
If the
Vested
interest
of a Participant
is used
to secure
any loan
made pursuant
to this
Section,
then
the written
(or such
other
form
as permitted
by the
IRS) consent
of the
Participant's
Spouse
shall
be required
in a manner
consis
tent with
Section
6.5(a),
provided
the spousal
consent requirements
of such
Section
apply
to the
Plan.
Such
consent must
be obtained
within
the one-hundred
eighty
(180)
(ninety
(90) for
Plan
Years
beginning
before
January
1, 2007)
day period
prior
to the
date
the loan
is made.
A new consent
shall
be required
if the
Vested
interest
of a Participant
is used
for renegotiation,
extension,
renewal
or other
revision
of the
loan.
However,
unless
the loan
program
established
pursuant
to this
Section
provi
des

otherwise,
no spousal
consent
shall
be required
under
this
paragraph
if the
total
interest
subject
to the
security
is not
in excess
of

$5,000.
If a valid
spousal
consent
has been
obtained
in accordance
with this
Subsection,
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 Acc
ount 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 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.

 

(d)
Loan
program.
The Administrator
shall
be authorized
to establish
a Participant
loan program
to provide
for loans
under the
Plan.
The loan
program
shall
be established
in accordance
with
Department
of Labor
Regulation
§2550.408(b)
-1(d)(2)
providing
for loans
by the
Plan
to parties-in-interest
under said
Plan,
such
as Participants
or Beneficiaries.
In order
for the
Administrator
to implement
such
loan program,
a separate
written
document
forming
a part
of this
Plan
must
be adopted,
which
document
shall
specifically
include,
but need
not be
limited
to, the
following:

 

(1)
the identity
of the
person
or positions
authorized
to administer
the Participant
loan program;
(2) a procedure
for applying
for loans;

(3)
the basis
on which
loans
will be
approved
or denied;

 

(4)
limitations,
if any,
on the
types
and amounts
of loans
offered;

 

(5)
the procedure
under
the program
for determining
a reasonable
rate
of interest;
(6)
the types
of collateral
which
may secure
a Participant
loan;
and

(7)
the events
constituting
default
and the
steps
that
will be taken
to preserve
Plan assets
in the
event
such
default.

 

(e)
Loan
default.
Notwithstanding
anything
in this
Plan
to the
contrary,
if a Participant
or Beneficiary
defaults
on a loan
made pursuant
to this
Section
that
is secured
by the
Participant's
interest
in the
Plan,
then
a Participant's
interest
may be offs
et by the
amount
subject
to the
security
to the
extent
there
is a distributable
event
permitted
by the
Code
or Regulations.

 

(f)
Loans
subject
to Plan
terms.
Notwithstanding
anything
in this
Section
to the
contrary,
if this
is an amendment
and restatement
of an existing
Plan,
any loans
made
prior
to the
date
this
amendment
and restatement
is adopted
shall
be subject
to the
terms
of the
Plan
in effect
at the
time
such
loan was
made.

 

7.7
ALLOCATION
AND DELEGATION
OF RESPONSIBILITIES

 

If
there
is more
than
one Trustee,
then
the responsibilities
of each
Trustee
may be
specified
by the
Employer
and accepted
in writing
by each
Trustee.
If no such
delegation
is made
by the
Employer,
then
the Trustees
may allocate
the responsibilities
a mong
themselves,
in which
event
the Trustees
shall
notify
the Employer
and the
Administrator
in writing
of such
action
and specify
the responsibilities
of each
Trustee.
Except
where
there
has been
an allocation
and delegation
of powers,
if there
shall
be more
than
one Trustee,
they
shall
act by
a majority
of their
number,
but may
authorize
one or
more
of them
to sign
papers
on their
b ehalf.

 

7.8
TRUSTEE'S
COMPENSATION
AND EXPENSES
AND TAXES

 

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

    	 

    	 

    

 

7.9
ANNUAL
REPORT
OF THE TRUSTEE

 

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

 

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

 

(2)
the gains,
or losses,
realized
by the
Trust
Fund
upon
sales
or other
disposition
of the
assets;
(3) the
increase,
or decrease,
in the
value
of the
Trust
Fund;

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

 

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

 

(b)
Employer
approval
of report.
The Employer,
promptly
upon its
receipt
of each
such
statement
of account,
shall
acknowledge
receipt
thereof
in writing
and advise
the Trustee
and/or
Administrator
of its
approval
or disapproval
thereof.
Fa ilure
by the
Employer
to disapprove
any such
statement
of account
within
thirty
(30) days
after
its receipt
thereof
shall
be deemed
an approval
thereof.
The
approval
by the
Employer
of any
statement
of account
shall
be binding
on the Employer
and the
Trustee
as to all
matters
contained
in the
statement
to the same
extent as
if the
account
of the Trust
ee had
been settled
by judgment
or decree
in an action
for a judicial
settlement
of its
account
in a court
of competent
jurisdiction
in which
the Trustee,
the E mployer
and all
persons
having
or claiming
an interest
in the
Plan
were parties.
However,
nothin
g contained
in this
Section
shall
deprive
the Trustee
of its
right
to have
its accounts
judicially
settled
if the
Trustee
so desires.

 

7.10
AUDIT

 

(a)
Duty
to engage
accountant.
 If an audit
of the
Plan's
records
shall
be required
by the
Act and
the regulations
thereunder
for any
Plan
Year,
the Administrator
shall
engage
on behalf
of all
Participants
an independent
qualified
pu blic
accountant
for that
purpose.
Such
accountant
shall,
after
an audit
of the
books
and records
of the
Plan
in accordance
with
generally
accepted
auditing
standards,
within
a reasonable
period
after
the close
of the
Plan
Year,
furnish
to the
Administrator
and the
Trustee
a report
of the
audit
setting
forth
the accountant's
opinion
as to whether
any statements,
schedules
or lists,
that
are require
d by Act

§103
or the
Secretary
of Labor
to be filed
with
the Plan's
annual
report,
are presented
fairly
in conformity
with
generally
accepted

accounting
principles
applied
consistently.

 

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

 

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

 

7.11
RESIGNATION,
REMOVAL
AND SUCCESSION
OF TRUSTEE

 

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

 

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

 

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

 

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

 

(e)
Trustee's
statement
upon cessation
of being
Trustee.
W henever
any Trustee
hereunder
ceases
to serve
as such,
the Trustee
shall
furnish
to the
Employer
and Administrator
a written
statement
of account
with respect
to the
portion
of the
Pla n Year
during
which
the individual
or entity
served
as Trustee.
This statement
shall
be either
(i) included
as part
of the
annual
statement
of account
for the
Plan
Year
required
under
Section
7.9 or
(ii) set
forth
in a special
statement.
Any such
special
statement
of account
should
be rendered
to the
Employer
no later
than
the due
date
of the
annual
statement
of account
for the

    	 

    	 

    

 

Plan
Year.
The procedures
set forth
in Section
7.9 for
the approval
by the
Employer
of annual
statements
of account
shall
app ly
to any
special
statement
of account
rendered
hereunder
and approval
by the
Employer
of any
such
special
statement
in the
manner
provided
in Section
7.9 shall
have
the same
effect
upon the
statement
as the
Employer's
approval
of an annual
statement
of account.
No successor
to the
Trustee
shall
have
any duty
or responsibility
to investigate
th e acts
or transactions
of any
predecessor
who has
rendered
all statements
of account
required
by Section
7.9 and
this
subparagraph.

 

7.12
TRANSFER
OF INTEREST

 

Notwithstanding
any other
provision
contained
in this
Plan,
the Trustee
at the
direction
of the
Administrator
shall
transfer
the interest,
if any, of
a Participant
to another
trust
forming
part
of a pension,
profit
shari
ng, or
stock
bonus
plan
that
meets
the requirements
of Code
§401(a),
provided
that
the trust
to which
such transfers
are made
permits
the transfer
to be made
and fu
rther
provided
that
the terms
of the
transferee
plan
properly
allocates
the funds
in each
ac count
to a transferee
account
that
preserves
all the
required
features
and restrictions
applicable
to such
account
under
this
Plan.
However,
the transfer
of amounts
from
this
Plan
to a nonqualified
foreign
trust
is treated
as a distribution
and the
transfer
of assets
and liabilities
from
this
Plan
to a plan
that
satisfies
Section
1165 of
the Puerto
Rico
Code
is also
treated
as distribution
from
the transferor
plan.

 

7.13
TRUSTEE
INDEMNIFICATION

 

To
the extent
permitted
by the
Code
and the
Act,
the Employer
agrees
to indemnify
and hold
harmless
the Trustee
against
any and
all
claims,
losses,
damages,
expenses
and liabilities
the
Trustee
may incur
in the
exercise
and performance
of the
Trustee's
powers
and duties
hereunder,
unless
the same
are determined
to be due
to gross
negligence
or willful
misconduct.

 

7.14
EMPLOYER
SECURITIES
AND REAL
PROPERTY

 

Subject
to the
provisions
of Section
7.15,
the Trustee
shall
be empowered
to acquire
and hold
"qualifying
employer
securities
" and "qualifying
employer
real property,"
as those
terms
are defined
in the
Act.
However,
no more
than
one hundred
percent
(100%),
in the
case
of a Profit
Sharing
Plan
or 401(k)
Plan,
or ten
percent
(10%),
in the
case
of a Money
Purchase
Plan,
of the
fair
market
value
of all
the assets
in the
Trust
Fund
may be invested
in "qualifying
employer
securities"
and "qualifying
employer
real p roperty."

 

Any
such
investment
shall
only
be made
upon written
direction
of the
Employer
who shall
be solely
responsible
for the
propriety
of such
investment,
except
to the
extent
Participants
direct
the investment
of their
Accounts
in such
investment.
Additional
directives
regarding
the purchase,
sale,
or retention
of such
securities
may be
addressed
in a funding
policy,
statement
of investment
policy,
or other
separate
procedures
or documents
governing
the investment
of Plan
assets.
In the
event
of any
conflicts
between
the Pla
n document
and a separate
investment
trust
agreement,
the Plan
document
shall
prevail.

 

Notwithstanding
the preceding,
if the
Plan
does not
permit
Participants
to direct
the investment
of their
Elective
Deferral
Accounts,
then
the Trustee
shall
only
be permitted
to acquire
or hold
"qualifying
employer
securities"
and "qualifying
employ
er real
property"
to the
extent
permitted
under Act
§407.

 

7.15
DIVESTMENT
OF EMPLOYER
SECURITIES

 

(a)
Application
of Section.
This
Section
only
applies
to a Plan
that
is an "applicable
defined
contribution
plan."
Except
as provided
herein
or in Regulations,
an "applicable
defined
contribution
plan"
means a defined
contribution
plan
that
holds
employer
securities
(within
the meaning
of Regulation
§1.401(a)(35)-1(f)(3))
that
are publicly
traded
(within
the meaning
of Regulation
§1.401(a)(35)-1(f)(5)).
An "applicable
defined
contribution
plan"
does not
include
a one-participant
plan,
as defined
in Code
§401(a)(35)(E)(iv)
or an employee
stock
ownership
plan
("ESOP")
as defined
in Code
§4975(e)(7)
if: (1)
the ESOP
holds

no
contributions
(or related
earnings)
that
are (or
were
ever)
subject
to Code
§§401(k)
or 401(m);
and (2)
the ESOP
is a sepa
rate
plan,
for purposes
of Code
§414(l),
from
any other
defined
benefit
plan
or defined
contribution
plan
maintained
by the
same
employer
or employers.
Except
as provided
in Regulation
§1.401(a)(35)-1(f)(2)(iv)
or in Code
§401(a)(35)(F)(ii)
(relating
to

certain
controlled
groups),
the Plan
is treated
as holding
publicly
traded
Employer
securities
if any
Employer
corporation,
or any
member
of a controlled
group
of corporations
which
includes
such
Employer
corporation
(as defined
in Code
§401(a)(35)(F)(iii)
) has
issued
a class
of stock
which
is a "publicly
traded
Employer
security."

 

(b)
Effective
date.
The provisions
of Code
§401(a)(35)
generally
apply
to Plan
Years
beginning
after
December
31, 2006.
However,
the effective
date
of the
provisions
relating
to Regulation
§1.401(a)(35)
-1 are
applicable
to Plan
Years
beginning
on or after
January
1, 2011.

 

(c)
Rule
applicable
to Elective
Deferrals,
Employee
contributions
and rollovers.
If any portion
of an "applicable
individual's"
account
attributable
to Elective
Deferrals,
after-tax
voluntary
Employee
contributions
or rollover
contributions
is invested
in publicly-traded
Employer
securities,
then,
except
as otherwise
provided
herein,
the "applicable
individual"
may elect

to
direct
the Plan
to divest
any such
securities,
and to
r einvest
an equivalent
amount
in other
investment
options
which
satisfy
the requirements
of Subsection
(e).
For purposes
of this
Section,
an "applicable
individual"
means:
(1) a Participant;
(2) an
Alt ernate
Payee
who has
an account
under
the Plan;
or (3)
a Beneficiary
of a deceased
Participant.

    	 

    	 

    

 

(d)
Rule
applicable
to Employer
contributions.
If any
portion
of an "applicable
individual's"
account
attributable
to Employer
contributions
(other
than
Elective
Deferrals)
is invested
in publicly-traded
Employer
securities,
then,
except
as otherwise
provided
herein,
the "applicable
individual"
may elect
to direct
the Plan
to divest
any such
securities,
and to
reinvest
an equivalent
amount
in other
investment
options
which
satisfy
the requirements
of Subsection
(e) below.

 

(1)
Definition
of "Applicable
individual."
For purposes
of this
Subsection,
an "applicable
individual"
means: (i)
a Participant
who has
completed
at least
three
(3) Years
of Service;
(ii) an
Alternate
Payee
who has
an account
under the
Plan
with
respect
to a Participant
who has
completed
at least
three
(3) Years
of Service;
or (iii)
a Beneficiary
of a deceased
Participant.
For this
purpose,
a Participant
completes
three
(3) Years
of Service
on the
last
day of
the vesting
computation
period
provided
for under
the Plan
that
constitutes
the completion
of the
third
year of
service
under Code
§411(a)(5).
However,
if the
Plan
uses
the elapsed
time method
of crediting
service
for vesting
purposes
(or the
Plan
provides
for immediate
vesting
without
using
a vesting
computation
period
or the
elapsed
time meth
od of determining
vesting),
a Participant
completes
three
(3) years
of service
on the
day immediately
preceding
the third
anniversary
of the
Participant's
date
of hire.

 

(2)
Definition
of "publicly
traded
Employer
security."
For purposes
of this
Section,
a "publicly
traded
Employer
security"
means
a security
which
is traded
on a national
securities
exchange
that
is registered
under
Section
6 of the
Securities
Exchange
Act of
1935 or
which
is traded
on a foreign
national
securities
exchange
that
is officially
recognized,
sanctioned,

or supervised
by a governmental
authority
and the
security
is deemed
by the
securities
and Exchange
commission
as

having
a "ready
market"
under
SEC Rule
14c3-1
(17 CFR
240.15c3).
In addition,
if the
Employer,
or any
member
of a

controlled
group
of corporations
(as described
in Regulation
§1.401(a)(35)-1(f)(2)(iv)(A)
which
includes
the Employer,
has issued
a class
of stock
which
is a publicly
traded
employer
security,
and the
Plan
hold
employer
securities
which
are not
publicly
traded
Employer
securities,
then
the Plan
shall
be treated
as holding
publicly
traded
Employer
securities.

 

(3)
Three-year
phase-in
applicable
to Employer
contributions.
For Employer
securities
acquired
with
Employer
contributions
(other
than
Elective
Deferrals)
during
a Plan
Year beginning
before
January
1, 2007,
the rule
described
in this
Subsection
only
applies
to the
percentage
of the
Employer
securities
(applied
separately
for each
class
of securities)
as follows:

 

	Plan Year	Percentage
	2007	33
	2008	66
	2009	100

 

 

(4)
Exception
to phase-in
for certain
age 55
Participants.
The 3-year
phase-in
rule in
paragraph
(3) above
does not
apply
to a Participant
who has
attained
age 55
and who
has completed
at least
three
(3) years
of service
(as defined
in paragraph
(1) above
before
the first
Plan
Year beginning
after
December
31, 2005.

 

(e)
Investment
options.
For purposes
of this
Section,
other
investment
options
must include
not less
than
three
(3) investment
options,
other
than
Employer
securities,
to which
the individual
who the
right
to divest
under Subsections
(c) or (d)
may dir
ect the
proceeds
from
the divestment
of Employer
securities.
Each
of the
three
(3) investment
options
must
be diversified
and have
materially
different
risk
and return
characteristics.
For this
purpose,
investment
options
that
constitute
a broad
range
of

investment
alternatives
within
the meaning
of Department
of Labor
Regulation
§2550.404c–1(b)(3)
are treated
as being
diversified
and having
materially
different
risk
and return
characteristics.

 

(f)
Restrictions
or conditions
on investments
in Employer
securities.
 The Plan
must provide
reasonable
divestment
and reinvestment
opportunities
at least
quarterly.
Furthermore,
except
as permitted
by Regulation
§1.401(a)(35)
-1(e),
the Plan
may not impose
restrictions
or conditions
on the
investment
of Employer
securities
which
the Plan
does not
impose
on the
investment
of other
Plan
assets.

 

ARTICLE
VIII

AMENDMENT,
TERMINATION
AND MERGERS

 

8.1
AMENDMENT

 

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

 

(b)
Permissible
amendments.
The Employer
may amend
the Plan
to accomplish
any of
the following
items
without
affecting
reliance
on the
opinion
or advisory
letter:
(1) change
the choice
of options
in the
Adoption
Agreement,
(2) add
any a ppendix
to the
Adoption
Agreement
that
is specifically
permitted
pursuant
to the
terms
of the
Plan
(e.g.,
Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections));
(3) amend
administrative
trust
or custodial
provisions
in the
case
of a volume
submitter
or non-standardized
Plan
and make
more
limited
amendments
in the
case
of a standardized
Plan
such
as the
name
of the
Plan,
Employer,
Trustee
or Custodian,
(4) add
certain
sample
or model
amendments
published
by the
Internal
Revenue
Service
or other
required
good-faith
amendments
which
specifically
provide
that
their
adoption
will not
cause
the
Plan
to be treated
as an individually
designed
plan,
(5) add
or change
provisions
permitted
under the
Plan
and/or
specify
or change
the effective
date
of a provision
as permitted
under the
Plan,
(6) add
a list of
any "Section
411(d)(6)
protected
benefits"

    	 

    	 

    

 

which
must
be preserved,
(7) conform
to the
requirements
of Act
Section
402(a)
(relating
to named
fiduciaries),
Act Section
5 03 (relating
to claims
procedures),
or DOL
Field
Assistance
Bulletin
2008-01
(relating
to the
duty to
collect
delinquent
contributions),
(8)
adjust
the limitations
under Code
§§415,
402(g),
401(a)(17)
and 414(q)(1)(B)
to reflect
annual
cost
-of-living
increases,
and (9)
change
the prototype
sponsor's
or volume
submitter
practitioner's
name.
An Employer
that
amends
the Plan
for any
other

reason,
including
a waiver
of the
minimum
funding
requirement
under
Code
§412(c)
(or for
Plan
Years
beginning
on or before
December
31, 2007,
Code
§412(d)),
will no
longer
participate
in this
prototype
or volume
submitter
Plan
and this
Plan
will be
considered
to be an
individually
designed
plan
for purposes
of reliance.

 

(c)
Sponsoring
organization/volume
submitter
practitioner
amendments.
 The Employer
(and every
Participating
Employer)
expressly
delegates
authority
to the
sponsoring
organization
of this
prototype
Plan
or volume
submitter
practitioner,
the right
to amend
the Plan
by submitting
a copy
of the amendment
to each
Employer
(and Participating
Employer)
who has
adopted
this
prototype
or volume
submitter
plan,
after
first
having
received
a ruling
or favorable
determination
from
the Internal
Reven
ue Service
that
the prototype
or volume
submitter
Plan
as amended
qualifies
under Code
§401(a)
(unless
a ruling
or determination

is
not required
by the
IRS).
For purposes
of this
Section,
the mass
submitter
shall
be recognized
as the
agent
of the
sponsor
.. If the
sponsor
does not
adopt
any amendment
made by
the mass
submitter,
it will
no longer
be identical
to, or
a minor
modifier
of, the
mass submitter
plan.

 

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

 

(e)
Anti-cutback
restrictions.
No Plan
amendment
or transaction
having
the effect
of a Plan
amendment
(such
as a merger,
plan
transfer
or similar
transaction)
shall
be effective
if it eliminates
or reduces
any "Section
411(d)(6)
protect
ed benefit"
or adds
or modifies
conditions
relating
to "Section
411(d)(6)
protected
benefits"
which
results
in a further
restriction
on such
benefits
(even
if the amendment
merely
adds
a restriction
or condition
that is permitted
under the
vesting
rules
in Code
§§411(a)(3)
– (11))
unless
such
"Section
411(d)(6)
protected
benefits"
are preserved
in operation
with respect
to benefits
accrued
as of th
e later
of the
adoption
date
or effective
date
of the
amendment.
Notwithstanding
the preceding,
"Section
411(d)
(6) protected
benefits"
may be
eliminated
or reduced
to the
extent
permitted
by Code
§412(d)(2)
or Regulations
(including
Regulation

§§1.411(d)-3
and 1.411(d)-4
) or other
IRS guidance.
For purposes
of this
Subsection,
a plan
amendment
which
has the
effect
of

decreasing
a Participant's
"Section
411(d)(6)
protected
benefits"
with
respect
to benefits
attributable
to service
before
the amendment
shall
be treated
as reducing
a "Section
411(d)(6)
protected
benefit."
"Section
411(d)(6)
protected
benefits"
are benefits
described
in Code
§411(d)(6)(A),
early
retirement
benefits
and retirement
-type
subsidies,
and optional
forms
of benefit.
The
preceding
shall
not apply
to a Plan
amendment
that
eliminates
or restricts
the ability
of a Participant
to receive
paymen
t of his
or her
Account
under
a particular
optional
form
of benefit
if the
amendment
provides
a single
-sum distribution
form
that
is

otherwise
identical
to the
optional
form
of benefit
being
eliminated
or restricted.
For this
purpose,
a single
-sum distribution
form
is otherwise
identical
only
if the
single-sum
distribution
form is
identical
in all
respects
to the
eliminated
or restricted
optional
form of
benefit
(or would
be identical
except
that
it provides
greater
rights
to the
Participant)
except
with
respec
t to the
timing
of

payments
after
commencement.

 

8.2
TERMINATION

 

(a)
Termination
of Plan.
The Employer
shall
have
the right
at any
time to terminate
the Plan
by delivering
to the Trustee
(or Insurer)
and Administrator
written
notice
of such
termination.
Upon
any full
or partial
termination
or upon
the complete
discontinuance
of the
Employer's
Contributions
to the Plan
(in the case
of a Profit
Sharing
Plan),
all amounts
credited
to the affected
Participants'
Combined
Accounts
shall
become
100% Vested
and shall
not thereafter
be subject
to Forfeiture.

 

(b)
Distribution
of assets.
Upon
the full
termination
of the
Plan,
the Employer
shall
direct
the distribution
of the
assets
to Participants
in a manner
that
is consistent
with
and satisfies
the provisions
of Section
6.5,
except
that
no Participant
or s pousal
consent
is required.
Distributions
to a Participant
shall
be made
in cash
(or in
property
if permitted
in the
Adoption
Agreement)
or through
the purchase
of irrevocable
nontransferable
deferred
commitments
from
the Insurer.
Except
as permitted
by Regulations
, the
termination
of the
Plan
shall
not result
in the
reduction
of "Section
411(d)(6)
protected
benefits"
as described
in Section

8.1(e).
In addition,
to the
extent
Section
6.13
(Special
Rule
for Certain
Profit
Sharing
Plans)
could
apply
to all
or a porti
on of the

assets,
then,
subject
to Section
12.2,
the Administrator
will
direct
the distribution
of assets
to Participants
in a lump
-sum distribution.
Such distribution
will be
made
as soon
as reasonable
after
the Plan
termination,
regardless
of: (1)
the amount
of the
Participant's
Vested
Account
balance;
(2) the
Participant's
age;
and (3)
whether
the Participant
consents
to the
distribution.
Furthermore,
to the
extent
a distribution
is required
to be made
pursuant
to this
Section
and the
Participant
does not
consen
t to such
distribution,
then
the Administrator
may make
a direct
distribution
to an individual
retirement
account
described
in Code

§408(a)
or an individual
retirement
annuity
described
in Code
§408(b).

 

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

 

8.3
MERGER,
CONSOLIDATION
OR TRANSFER
OF ASSETS

 

This
Plan
may be
merged
or consolidated
with,
or its
assets
and/or
liabilities
may be
transferred
to any
other
plan
only
if the
benefits
which
would
be received
by a Participant
of this
Plan,
in the
event
of a termination
of the
plan
immediately
after
s uch transfer,
merger
or consolidation,
are at
least
equal
to the
benef
its the
Participant
would
have
received
if the
Plan
had terminated
immediately

    	 

    	 

    

 

before
the transfer,
merger
or consolidation
and such
transfer,
merger
or consolidation
does not
otherwise
result
in the elim
ination
or reduction
of any
"Section
411(d)(6)
protected
benefits"
as described
in Section
8.1(e).

 

ARTICLE
IX

TOP-HEAVY
PROVISIONS

 

9.1
TOP-HEAVY
PLAN REQUIREMENTS

 

Notwithstanding
anything
in this
Plan
to the
contrary,
for any
Top -Heavy
Plan
Year,
the Plan
shall
provide
the special
vesting
requirements
of Code
§416(b)
pursuant
to Section
6.4 of
the Plan
and the
special
minimum
allocation
requirements
of Code
§416 (c)
pursuant
to Section
4.3(f)
of the
Plan.
Except
as otherwise
provided
in the
Plan,
th e minimum
allocation
shall
be an Employer
Nonelective
Contribution
and,
if no vesting
schedule
has been
selected
in the
Adoption
Agreement
or the
selection
is invalid,
shall
be subject
to the
6 Year Graded
vesting
schedule
described
in the
Adoption
Agreement.

 

Notwithstanding
the above,
the Top-Heavy
Plan
Year
requirements
of this
Article
and Code
§416 shall
not apply
in any
Plan
Year in
which
the Plan
consists
solely
of a cash
or deferred
arrangement
which
meets
the requirements
of Code
§401(k)(12)
or §401
(k)(13)
and matching
contributions
meet the
requirements
of Code
§401(m)(11)
or §401(m)(12).

 

9.2
DETERMINATION
OF TOP-HEAVY
STATUS

 

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

 

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

 

(2)
if this
Plan
is a part
of a "required
aggregation
group"
but not
part
of a "permissive
aggregation
group"
and the

"top-heavy
ratio"
for the
group
of plans
exceeds
sixty
percent
(60%);
or

 

(3)
if this
Plan
is a part
of a "required
aggregation
group"
and part
of a "permissive
aggregation
group"
and the
"top
-heavy
ratio"
for the
"permissive
aggregation
group"
exceeds
sixty
percent
(60%).

 

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

 

(1)
If the
Employer
maintains
one or
more
defined
contribution
plans
(including
any simplified
employee
pension
plan
(as defined
in Code
§408(k)))
and the
Employer
has not
maintained
any defined
benefit
plan
which
during
the 5 -year
period
ending
on the
"determination
date"
has or has
had accrued
benefits,
the top-heavy
ratio
for this
Plan
alone
or for the
"required
aggregation
group"
or "permissive
aggregation
group"
as appropriate
is a fraction,
the numerator
of which
is the
sum of the
account
balances
of all Key
Employees
as of the
"determination
date"
(including
any part
of any Accou
nt balance
distributed
in the
1-year period
ending
on the
"determination
date")
(5-year period
ending
on the
"determination
date"
in the
case of a distribution
made
for a reason
other
than
severance
from
employment,
death
or Total
and Permanent
Disability)
, and the
denominator
of which
is the
sum of all
Account
balances
(including
any part
of any Account
balance
distributed
in

the
1-year
period
ending
on the
"determination
date")
(5-year
period
ending
on the
"determination
date"
in the
case of a

distribution
made
for a reason
other
than
severance
from
employment,
death
or Total
and Permanent
Disability),
both
computed
in accordance
with
Code
§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
§416 and
the Regulations
thereunder.

 

(2)
If the
Employer
maintains
one or
more
defined
contribution
plans
(including
any simplified
employee
pension
plan)
and the
Employer
maintains
or has
maintained
one or
more
defined
benefit
plans
which
during
the 5-year
period
ending
on the
"determination
date"
has or
has had
any accrued
benefits,
the top-heavy
ratio
for any
"required
aggregation
group"
or "permissive
aggregation
group"
as appropriate
is a fraction,
the numerator
of which
is the
sum of account
balances
under
the aggregated
defined
contribution
plan
or plans
for all
Key Employees,
determined
in accordance
with
(1) above,
and the
"present
value"
of accrued
benefits
under the
aggregated
defined
benefit
plan
or plans
for all
Key Employees
as of the
"determination
date,"
and the
denominator
of which
is the
sum of the
account
balances
under the
aggregated
defined
contribution
plan
or plans
for all
participants,
determined
in accordance
with
(1) above,
and the
"present
value"
of accrued
benefits
under
the defined
benefit
plan
or plans
for all
participants
as of the
"determination
date,"
all determined
in accordance
with
Code
§416
and the
Regulations
thereunder.
The accrued
benefits
under
a defined
benefit
plan
in both
the

numerator
and denominator
of the
top-heavy
ratio
are increased
for any
distribution
of an accrued
benefit
made
in the
1-year

period
ending
on the
"determination
date"
(5-year
period
ending
on the
"determination
date"
in the
case of a distribution
made
for a reason
other
than
severance
from
employment,
death
or Total
and Perman
ent Disability).

 

(3)
For purposes
of (1)
and (2)
above,
the value
of Account
balances
and the
"present
value"
of accrued
benefits
will be
determined
as of the
most
recent
Valuation
Date
that
falls
within
or ends
with the
12-month
period
ending
on the
"determination
date,"
except
as provided
in Code
§416 and
the Regulations
thereunder
for the
first and
second
plan
years
of a defined
benefit
plan.
The Account
balances
and accrued
benefits
of a Participant
(i) who
is not a Key
Employee
but who
was a Key
Employee
in a prior
year,
or (ii)
who has
not been
credited
with at
least
one Hour
of Service
with any
Employer
maintaining
the Plan
at any
time during
the 1-year
period
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
§416 and
the Regulations
thereunder.
Deductible
Employee
contributions
will not
be taken
into
account
for purposes
of computing
the top-heavy
ratio.
W hen aggregating
plans
the value
of Account
balances
and accrued
benefits
will be
calculated
with
reference
to the
"determination
dates"
that
fall
within
the same
calendar
year.

 

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

§411(b)(1)(C).

 

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

 

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

 

(e)
Present
value.
"Present
value"
means
the present
value
based
only
on the
interest
and mortality
rates
specified
in

Appendix
A to the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections).

 

(f)
Required
aggregation
group.
"Required
aggregation
group"
means:
(1) each
qualified
plan
of the
Employer
or any Affiliated
Employer
in which
at least
one Key
Employee
participates
or participated
at any
time during
the Plan
Year containi
ng the
"determination
date"
or any
of the four
preceding
Plan
Years
(regardless
of whether
the plan
has terminated),
and (2)
any other
qualified
plan
of the
Employer
or any Affiliated
Employer
which
enables
a plan
described
in (l)
to meet
the requirement
s of Code
§401(a)(4)
or 410.

 

(g)
Valuation
Date.
Valuation
Date
means
the date
elected
by the
Employer
in the Adoption
Agreement
as of which
Account
balances
or accrued
benefits
are valued
for purposes
of calculating
the "top-heavy
ratio."

 

ARTICLE
X 

MISCELLANEOUS

 

10.1
EMPLOYER
ADOPTIONS

 

(a)
Method
of adoption.
Any organization
may become
the Employer
hereunder
by executing
the Adoption
Agreement
in a form
satisfactory
to the
Trustee
(or Insurer),
and it shall
provide
such
additional
information
as the
Trustee
(or Ins
urer)
may require.
The consent
of the
Trustee
(or Insurer)
to act
as such
shall
be signified
by its execution
of the
Adoption
Agreement
or a separate
agreement
(including,
if elected
in the
Adoption
Agreement,
a separate
trust
agreement).

 

(b)
Separate
affiliation.
Except
as otherwise
provided
in this
Plan,
the affiliation
of the
Employer
and the
participation
of its

Participants
shall
be separate
and apart
from
that
of any
other
employer
and its
participants
hereunder.

 

10.2
PARTICIPANT'S
RIGHTS

 

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

 

10.3
ALIENATION

 

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

 

(b)
Exception
for loans.
Subsection
(a) shall
not apply
to the
extent
a Participant
or Beneficiary
is indebted
to the
Plan
by reason
of a loan
made pursuant
to Section
7.6.
At the
time a distribution
is to be
made to
or for
a Participant's
or Beneficiary's
benefit,
such
portion
of the
amount
to be distributed
as shall
equal
such
indebtedness
shall
be paid
to the
Plan,
to apply
ag ainst
or discharge
such
indebtedness.
Prior
to making
a payment,
however,
the Participant
or Beneficiary
must
be given
notice
by the
Administrator
that
such
indebtedness
is to be
so paid
in whole
or part
from
the Participant's
interest
in the
Plan.
If the
Pa rticipant
or Beneficiary
does not
agree
that
the indebtedness
is a valid
claim
against
the Participant's
interest
in the
Plan,
the Participant
or Beneficiary
shall
be entitled
to a review
of the
validity
of the
claim
in accordance
with
procedures
provided
in Section
2.10.

 

(c)
Exception
for QDRO.
Subsection
(a) shall
not apply
to a "qualified
domestic
relations
order"
defined
in Code
§414(p),
and those
other
domestic
relations
orders
permitted
to be so
treated
by the
Administrator
under the
provisions
of the
Retirement
Equity
Act of
1984. The
Administrator
shall
establish
a written
procedure
to determine
the qualified
status
of domestic
relat
ions orders
and to administer
distributions
under such
qualified
orders.
Further,
to the
extent
provided
under
a "qualified
domestic

    	 

    	 

    

 

relations
order,"
a former
Spouse
of a Participant
shall
be treated
as the
Spouse
or surviving
Spouse
for all
purposes
under
the

Plan.

 

(d)
Exception
for certain
debts
to Plan.
Notwithstanding
any provision
of this
Section
to the
contrary,
an offset
to a Participant's
accrued
benefit
against
an amount
that
the Participant
is ordered
or required
to pay
the Plan
with
respect
to a judgment,
order,
or decree
issued,
or a settlement
entered
into,
on or after
August
5, 1997,
shall
be permitted
in accordance
with
Code
§§401(a)(13)(C)
and (D).

 

10.4
PLAN
COMMUNICATIONS,
INTERPRETATION
AND CONSTRUCTION

 

(a)
Applicable
law.
This
Plan
and Trust
shall
be construed
and enforced
according
to the
Code,
the Act
and the
laws of
the state
or commonwealth
in which
the Employer's
(or if
there
is a corporate
Trustee,
the Trustee's,
or if the
Plan
is fully
insured,
the Insurer's)
principal
office
is located
(unless
otherwise
designated
in Appendix
A to the
Adoption
Agreement
(Special
Effectiv
e Dates
and Other
Permitted
Elections)),
other
than
its laws
respecting
choice
of law,
to the
extent
not pre-empted
by federal
law.

 

(b)
Administrator's
discretion/nondiscriminatory
administration.
The Administrator
has total
and complete
discretion
to interpret
and construe
the Plan
and to
determine
all questions
arising
in the
administration,
interpretation
and application
of the
Plan.
Any determination
the Administrator
makes
under the
Plan
is final
and binding
upon any
affected
person.
The Administrat
or must
exercise
all of
its Plan
powers
and discretion,
and perform
all of
its duties
in a uniform
and nondiscriminatory
manner.

 

(c)
Communications.
All Participant
or Beneficiary
notices,
designations,
elections,
consents
or waivers
must
be made
in a form
the Administrator
(or,
as applicable,
the Trustee
or Insurer)
specifies
or otherwise
approves.
Any person
entitled
to notice
under
the Plan
may waive
the notice
or shorten
the notice
period
unless
such
actions
are contrary
to applicable
law.

 

(d)
Evidence.
Anyone,
including
the Employer,
required
to give
data,
statements
or other
information
relevant
under
the terms
of the
Plan
("evidence")
may do
so by certificate,
affidavit,
document
or other
form
which
the person
to act
in reliance
may consider
pertinent,
reliable
and genuine,
and to
have
been signed,
made
or presented
by the
proper
party
or parties.
The Administrator,
Trustee
and Insurer
are protected
fully
in acting
and relying
upon any
evidence
described
under
the immediatel
y preceding
sentence.

 

(e)
Plan
terms
binding.
The Plan
is binding
upon all
parties,
including
but not
limited
to, the
Employer,
Trustee,
Insurer,
Administrator,
Participants
and Beneficiaries.

 

(f)
Parties
to litigation.
Except
as otherwise
provided
by applicable
law,
a Participant
or a Beneficiary
is not
a necessary
party
or required
to receive
notice
of process
in any court
proceeding
involving
the Plan,
the Trust
or any Fiduciary.
Any fin
al judgment
(not
subject
to further
appeal)
entered
in any
such
proceeding
will be
binding
upon
all parties,
including
the Employer,
the Administrator,
Trustee,
Insurer,
Participants
and Beneficiaries.

 

(g)
Fiduciaries
not insurers.
The Trustee,
Administrator
and the
Employer
in no way
guarantee
the Plan
assets
from
loss
or depreciation.
The Employer
does not
guarantee
the payment
of any
money
which
may be or
becomes
due to any
person
from
the Plan.
The liability
of the
Employer,
the Administrator
and the
Trustee
to make
any distribution
from
the Trust
at any time
and all
times
is limited
to the
then
available
assets
of the
Trust.

 

(h)
Construction/severability.
The Plan,
the Adoption
Agreement,
the Trust
and all
other
documents
to whic
h they
refer,
will be
interpreted
consistent
with
and to
preserve
tax qualification
of the
Plan
under Code
§401(a)
and tax
exemption
of the
Trus
t under
Code
§501(a)
and also
consistent
with
the Act
and other
applicable
law.
To the
extent
permissible
under
applicable
law,
any provision
which
a court
(or other
entity
with
binding
authority
to interpret
the Plan)
determines
to be inconsistent
with
such
construction
and interpretation,
is deemed
severed
and is
of no force
or effect,
and the
remaining
Plan
terms
will remain
in full
force
and effect.

 

(i)
       Uniformity.
All provisions
of this
Plan
shall
be interpreted
and applied
in a uniform,
nondiscriminatory
manner.

 

(j)
       Headings.
The headings
and subheadings
of this
Plan
have
been inserted
f or convenience
of reference
and are
to be ignored
in any construction
of the
provisions
hereof.

 

10.5
GENDER,
NUMBER
AND TENSE

 

Wherever
any words
are used
herein
in the
masculine,
feminine
or neuter
gender,
they
shall
be construed
as though
they
were
also used
in another
gender
in all cases
where
they
would
so apply;
whenever
any words
are used
herein
in the
singular
or pl ural
form,
they
shall
be construed
as though
they
were
also
used
in the other
form
in all cases
where
they
would
so apply;
and whe
never
any
words
are used
herein
in the
past
or present
tense,
they
shall
be construed
as though
they
were
also used
in the
oth er
form
in all
cases
where
they
would
so apply.

 

10.6
LEGAL
ACTION

 

In
the event
any claim,
suit,
or proceeding
is brought
regarding
the Trust
and/or
Plan established
hereunder
to which
the Trustee
(or
Insurer),
the Employer
or the
Administrator
may be a party,
and such
claim,
suit,
or proceeding
is resolved
in favor
of t he Trustee
(or Insurer),
the Employer
or the
Administrator,
they
shall
be entitled
to be reimbursed
from
the Trust
Fund for
any and
all costs,
attorney's
fees,
and other
expenses
pertaining
thereto
incurred
by them
for which
they
shall
have
become
liable.

    	 

    	 

    

 

10.7
PROHIBITION
AGAINST
DIVERSION
OF FUNDS

 

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

 

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

 

(c)
Contribution
conditioned
on deductibility.
 Except
as specifically
stated
in the
Plan,
any contribution
made by
the Employer
to the
Plan
(if the
Employer
is not
tax-exempt)
is conditioned
upon the
deductibility
of the
contribution
by the
Employer
under
the Code
and,
to the
extent
any such
deduction
is disallowed,
t he Employer
may, within
one (1)
year following
a final
determination
of the
disallowance,
whether
by agreement
with
the Internal
Revenue
Service
or by final
decision
of a court
of competent
jurisdiction,
demand
repayment
of such
disallowed
contribution
and the
Trustee
(or Insurer)
shall
return
such
contribution
within
one (1)
year following
the disallowance.
Earnings
of the
Plan
attributable
to the
contribution
may not
be returned
to the
Employer,
but any
losses
attributable
thereto
must reduce
the amount
s o returned.

 

10.8
EMPLOYER'S
AND TRUSTEE'S
PROTECTIVE
CLAUSE

 

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

 

10.9
INSURER'S
PROTECTIVE
CLAUSE

 

Except
as otherwise
agreed
upon
in writing
between
the Employer
and the
Insurer,
an Insurer
which
issues
any Contracts
hereunder
shall
not have
any responsibility
for the
validity
of this
Plan
or for
the tax
or legal
aspects
of this
Plan.
The I nsurer
shall
be protected
and held
harmless
in acting
in accordance
with
any written
direction
of the
Administrator
or Trustee,
and shall
have
no d uty
to see
to the
application
of any
funds
paid
to the
Trustee,
nor be
required
to question
any actions
directed
by the
Administr
ator
or Trustee.
Regardless
of any
provision
of this
Plan,
the Insurer
shall not
be required
to take
or permit
any action
or allow
an y benefit
or privilege
contrary
to the
terms
of any
Contract
which
it issues
hereunder,
or the
rules
of the
Insurer.

 

10.10
RECEIPT
AND RELEASE
FOR PAYMENTS

 

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

 

10.11
ACTION
BY THE
EMPLOYER

 

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

 

10.12
NAMED
FIDUCIARIES
AND ALLOCATION
OF RESPONSIBILITY

 

The
"named
Fiduciaries"
of this
Plan
are (a)
the Employer,
(b) the
Administrator,
(c) the
Trustee
(if the
Trustee
has discret
ionary
authority
as elected
in the
Adoption
Agreement
or as otherwise
agreed
upon by
the Employer
and the
Trustee),
and (d)
any Investment
Manager
appointed
hereunder.
The Employer
may, however,
modify
the preceding
sentence
to add
or remove
named
Fiduciaries.
The named
Fiduciaries
shall
have
only
those
specific
powers,
duties,
responsibilities,
and obligations
as are
specifically
given
them
under
the Plan
including,
but not
limited
to, any
agreement
allocating
or delegating
their
responsibilities,
the t erms
of which
are incorporated
herein
by reference.
In general,
the Employer
shall
have
the sole
responsibility
for making
the contributions
provided
for under
the Plan;
and shall
have
the sole
authority
to appoint
and remove
the Trustee
and the
Administrator;
to fo rmulate
the
Plan's
"funding
policy
and method";
and to
amend
the elective
provisions
of the
Adoption
Agreement
or terminate,
in whole
or in

part,
the Plan.
The Administrator
shall
have
the sole
responsibility
for the
administration
of the
Plan,
which responsibility
is specifically
described
in the
Plan.
If the
Trustee
has discretionary
authority,
it shall
have
the sole
responsibility
of management
of the
assets
held
under
the Trust,
except
those
assets,
the management
of which
has been
assigned
to an Investment
Manager
or Administ
rator,
who shall
be solely
responsible
for the
management
of the
assets
assigned
to it,
all as
specifically
provided
in the
Plan.
Each n amed
Fiduciary
warrants
that
any directions
given,
information
furnished,
or action
taken
by it shall
be in accordance
w ith the
provisions
of the
Plan,
authorizing
or providing
for such
direction,
information
or action.
Furthermore,
each named
Fiduciary
may rely
upon any

such
direction,
information
or action
of another
named
Fiduciary
as being
proper
under
the Plan,
and is
not required
under
the Plan
to

inquire
into
the propriety
of any
such
direction,
information
or action.
It is intended
under the
Plan that
each named
Fiduci
ary shall
be responsible
for the
proper
exercise
of its
own powers,
duties,
responsibilities
and obl
igations
under
the Plan.
No named
Fiduciary
shall
guarantee
the Trust
Fund in
any manner
against
investment
loss
or depreciation
in asset
value.
Any person
or group
may serve
in more
than
one Fiduciary
capacity.

    	 

    	 

    

 

10.13
APPROVAL
BY INTERNAL
REVENUE
SERVICE

 

Notwithstanding
anything
herein
to the
contrary,
if, pursuant
to an application
for qualification
is made
by the
time prescribed
by law
for filing
the Employer's
return
for the
taxable
year in
which
the Plan
or an amendment
to the
Plan
is adopted,
or such
l ater
date
as the
Secretary
of Treasury
may prescribe,
the Commissioner
of the
Internal
Revenue
Service
or the
Commissioner's
delegate
should
determine
that
the Plan
does not
initially
qualify
as a tax-exempt
plan
under
Code
§§401
and 501,
and such
determination
is not
contested,
or if contested,
is finally
upheld,
then
if the
Plan
is a new
plan,
it shall
be v oid
ab initio
and all
amounts
contributed
to the
Plan,
by the
Employer,
less
expenses
paid,
shall
be returned
within
one (1)
year and
the Plan
shall
terminate,
and the
Trustee
(or

Insurer)
shall
be discharged
from
all further
obligations.
If the
disqualification
relates
to a Plan
amendment,
then
the Plan
shall
operate

as
if it had
not been
amended.
If the
Employer's
Plan
fails
to attain
or retain
qualification,
such Plan
will
no longer
parti
cipate
in this
prototype
or volume
submitter
plan
and will
be considered
an individually
designed
plan.

 

10.14
PAYMENT
OF BENEFITS

 

Except
as otherwise
provided
in the
Plan,
benefits
under
this Plan
shall
be paid,
subject
to Sections
6.11,
6.12
and 12.10,
only
upon
death,
Total
and Permanent
Disability,
normal
or early
retirement,
severance
of employment,
or termination
of the
Plan.

 

10.15
ELECTRONIC
MEDIA

 

The
Administrator
may use
any electronic
medium
to give
or receive
any Plan
notice,
communicate
any Plan
policy,
conduct
any written
Plan
communication,
satisfy
any Plan
filing or
other
compliance
requirement
and conduct
any other
Plan
transaction
to the
extent
permissible
under
applicable
law.
A Participant
or a Participant's
Spouse,
to the
extent
authorized
by the
Administrat
or, may
use any
electronic
medium
to make
or provide
any Beneficiary
designation,
election,
notice,
consent
or waiver
under
the Plan,
to the
extent
permissible
under
applicable
law.
Any reference
in this
Plan
to a "form,"
a "notice,"
an "election,"
a "consent,"
a "w aiver,"
a "designation,"
a "policy"
or to any
other
Plan-related
communication
includes
an electronic
version
thereof
as permitted
under
applicable
law.
Notwithstanding
the foregoing,
any Participant
or Beneficiary
notices
and consent
that
are required
pursuant
to the
Code
must
satisfy
Regulation
§1.401(a)-21.

 

10.16
PLAN
CORRECTION

 

The
Administrator
in conjunction
with
the Employer
may undertake
such
correction
of Plan
errors
as the
Administrator
deems
necessary,
including
correction
to preserve
tax qualification
of the
Plan
under
Code
§401(a)
or to correct
a fiduciary
breach
under
the Act.
W ithout
limiting
the
Administrator's
authority
under
the prior
sentence,
the Administrator,
as it
determines
to be reasonable
and appropriate,
may undertake
correction
of Plan
document,
operational,
demographic
and Employer
eligibility
failures
under
a method
described
in the
Plan
or under
the IRS
Employee
Plans
Compliance
Resolution
System
("EPCRS")
or any
successor
program
to EPCRS.
The Administrator,
as it determines
to be reasonable
and appropriate,
also
may undertake
or assist
the appropriate
Fid uciary
or Plan
official
in undertaking
correction
of a fiduciary
breach,
including
correction
under the
DOL Voluntary
Fiduciary
Correction
Program
("VFC")
or any
successor
program
to VFC.
If the
Plan
is a 401(k)
Plan,
to correct
an operational
error,
the Administr
ator
may require
the Trustee
(or Insurer)
to distribute
from
the Plan
Elective
Deferrals
or Vested
matching
contributions,
including
earnings,
where
such
amounts
result
from
an operational
error
other
than
a failure
of Code
§415,
Code
§402(g),
or a failure
of the
ADP or
ACP tests.
Furthermore,
the Employer
may make
corrective
contributions
pursuant
to this
Section
regardless
of whether
the Plan
otherwise
permits
such
contribution
source.
In addition,
the Plan
is authorized
to recover
benefits
from
Participants
or Beneficiaries
that
have
been
improperly
distributed.

 

10.17
NONTRUSTEED
PLANS

 

If
the Plan
is funded
solely
with
Contracts,
then
notwithstanding
Sections
10.7
and 10.13,
no Contract
will be
purchased
under
the Plan
unless
such
Contract
or a separate
definite
written
agreement
between
the Employer
and the
Insurer
provides
that
no value
under
Contracts
providing
benefits
under
the Plan
or credits
determined
by the
Insurer
(on account
of dividends,
earnings,
or other
experience
rating
credits,
or surrender
or cancellation
credits)
with
respect
to such
Contracts
may be
paid
or returned
to th e Employer
or diverted
to or used
for other
than
the exclusive
benefit
of the
Participants
or their
Beneficiaries.
However,
any contribution
made
by the
Employer
because
of a mistake
of fact
must be
returned
to the
Employer
within
one year
of the
contribution.

 

If
this
Plan
is funded
by individual
Contracts
that
provide
a Participant's
benefit
u nder
the Plan,
such
individual
Contracts
shall
constitute
the Participant's
Account
balance.
If this
Plan
is funded
by group
Contracts,
under the
group
annuity
or group
ins urance
Contract,
premiums
or other
consideration
received
by the
Insurer
must
be all
ocated
to Participants'
Accounts
under the
Plan.

 

ARTICLE
XI 

PARTICIPATING
EMPLOYERS

 

11.1
ELECTION
TO BECOME
A PARTICIPATING
EMPLOYER

 

Notwithstanding
anything
herein
to the
contrary,
with
the consent
of the
Employer
and Trustee
(or Insurer),
any Employer
may adopt
the Employer's
Plan
and all
of the
provisions
hereof,
and participate
herein
and be
known
as a Participating
Employer,
by a properly
executed
document
evidencing
said
intent
and will
of such Participating
Employer
(a participation
agreement).
In the
event
a Participating
Employer
is not
an Affiliated
Employer,
then
the provisions
of Article
XIV shall
apply
rather
than
the provisio
n of this
Article
XI.

    	 

    	 

    

 

11.2
REQUIREMENTS
OF PARTICIPATING
EMPLOYERS

 

(a)
Permissible
variations
of participation
agreement.
The participation
agreement
must
identify
the Participating
Employer
and the
covered
Employees
and provide
for the
Participating
Employer's
signature.
In addition,
in the
participation
agreement
, the
Employer
shall
specify
which
elections,
if any,
the Participating
Employer
can modify,
and any
restrictions
on the

modifications.
Any such
modification
shall
apply
only
to the
Employees
of that
Participating
Employer.
The Participating
Empl
oyer

shall
make
any such
modification
by selecting
the appropriate
option
on its
participation
agreement
to the
Employer's
Adoption
Agreement.
To the extent
that
the participation
agreement
does not
permit
modification
of an election,
any attempt
by a Participating
Employer
to modify
the election
shall
have
no effect
on the
Plan and
the Partici
pating
Employer
is bound
by the
Plan
terms
as selected
by the
Employer.
If a Participating
Employer
does not
make
any permissible
participation
agreement

election
modifications,
then
with
regard
to any
election,
the Participating
Employer
is bound
by the
A doption
Agreement
terms
as

completed
by the
"lead
Employer."
Notwithstanding
the other
provisions
of this
Section,
if a standardized
Plan
is being
used, then
the
elections
available
to Participating
Employers
must
be limited
to the
elections
available
to t he Employer
in order
to ensure
the Plan,
by design,
satisfies
the minimum
coverage
requirements
of Code
§410(b)
and the
nondiscrimination
requirements
of Code

§401(a)(4).

 

(b)
Holding
and investing
assets.
The Trustee
(or Insurer)
may, but
shall
not be
required
to, commingle,
hold
and invest
as one Trust
Fund
all contributions
made
by Participating
Employers,
as well
as all increments
thereof.
However,
the assets
of t he Plan
shall,
on an ongoing
basis,
be available
to pay
benefits
to all
Particip
ants and
Beneficiaries
under
the Plan
without
regard
to the
Employer
or Participating
Employer
who contributed
such assets.

 

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

 

11.3
DESIGNATION
OF AGENT

 

Each
Participating
Employer
shall
be deemed
to be a part
of this
Plan;
provided,
however,
that
with
respect
to all
of its
relations
with the
Trustee
(or Insurer)
and Administrator
for purposes
of this
Plan,
each Participating
Employer
shall
be deemed
to hav
e designated
irrevocably
the Employer
as its
agent.
Unless
the context
of the
Plan
clearly
indicates
otherwise,
the word
"Employer"
shall
be deemed
to include
each
Participating
Employer
as related
to its
adoption
of the
Plan.

 

11.4
EMPLOYEE
TRANSFERS

 

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

 

11.5
PARTICIPATING
EMPLOYER'S
CONTRIBUTION
AND FORFEITURES

 

For
volume
submitter
or non-standardized
Adoption
Agreements,
if elected
by a Participating
Employer
in its
participation
agreement,
then
to the
extent
permitted
under
Code
§411(d)(6),
effective
with
respect
to Plan
Years
beginning
in and
after
the Plan
Year in
which
the provisions
of this
Plan
are adopted,
any contribution
and/or
Forfeiture
subject
to allocation
during
each P lan
Year shall
be determined
and allocated
separately
by each Participating
Employer,
and shall
be allocated
only
among
the Participants
eligible
to share
in the
contribution
and Forfeiture
allocation
of the
Employer
or Participating
Employer
making
the contribu
tion
or by which
the forfeiting
Participant
was employed.
Alternatively
(if so elected),
and with
respect
to st andardized
Adoption
Agreements,
any contribution
or Forfeiture
subject
to allocation
during
each Plan
Year shall
be allocated
among
all Participants
of all
P articipating
Employers
in accordance
with
the provisions
of this
Plan.
However,
if a Participating
Employer
is not
an Affiliated
Employer
then
any contributions
made
by such
Participating
Employer
will only
be allocated
among
the Participants
eligible
to share
in the
cont ribution
and Forfeiture
allocation
of the
Participating
Employer.

 

On
the basis
of the
information
furnished
by the
Administrator,
the Trustee
(or Insurer)
shall
keep separate
books
and records
concerning
the affairs
of each
Participating
Employer
hereunder
and as
to the
accounts
and credits
of the
Employees
of each
Participating
Employer.
The Trustee
(or Insurer)
may, but
need not,
register
Contracts
so as to
evidence
that
a particular
Participating
Employer
is the
interested
Employer
hereunder,
but in
the event
of an Employee
transfer
from
one Participating
Employer
to an other,
the
employing
Employer
shall
immediately
notify
the Trustee
(or Insurer)
thereof.

 

11.6
AMENDMENT

 

Any
Participating
Employer
hereby
authorizes
the Employer
to make
amendments
on its
behalf,
unless
otherwise
agreed
among
all affected
parties.
If a Participating
Employer
is not
an Affiliated
Employer
(due to the
transition
period
under
Code
§410
(b)(6)(C)),
then
amendment
of this
Plan
by the
Employer
at any
time when
there
shall
be a Participating
Employer
shall,
unless
otherwise
agreed
to by
the affected
parties,
only
be by the
written
action
of each
and every
Participating
Employer
and with
the consent
of th e Trustee
(or
Insurer)
where
such consent
is necessary
in accordance
with
the terms
of this
Plan.

 

11.7
DISCONTINUANCE
OF PARTICIPATION

 

Except
in the
case
of a standardized
Plan,
any Participating
Employer
that
is an Affiliated
Employer
shall
be permitted
to discontinue
or revoke
its participation
in the
Plan
at any
time.
At the
time of
any such
discontinuance
or revocation,
satisf
actory

    	 

    	 

    

 

evidence
thereof
and of
any applicable
conditions
imposed
shall
be delivered
to the
Trustee
(or Insurer).
The Trustee
(or Insurer)
shall
thereafter
transfer,
deliver
and assign
Contracts
and other
Trust
Fund assets
allocable
to the
Participants
of such
Participating
Employer
to such
new trustee
(or insurer)
or custodian
as shall
have
been designated
by such
Participating
Employer,
in the
event

that
it has
established
a separate
qualified
retirement
plan
for its
employees
provided,
however,
that
no such
transfer
shall
be made
if the
result
is the
elimination
or reduction
of any
"Section
411(d)(6)
protected
benefits"
as described
in Section
8.1(e).
If n o successor
is

designated,
the Trustee
(or Insurer)
shall
retain
such
assets
for the
Employees
of said
Participating
Employer
pursuant
to the

provisions
of Article
VII hereof.
In no such
event
shall
any part
of the
corpus
or income
of the
Trust
Fund
as it relates
to such
Participating
Employer
be used
for or
diverted
to purposes
other
than
for the
exclusive
benefit
of the
Employe
es of such
Participating
Employer.

 

11.8
ADMINISTRATOR'S
AUTHORITY

 

The
Administrator
shall
have
authority
to make
any and
all necessary
rules
or regulations,
binding
upon all
Participating

Employers
and all
Participants,
to effectuate
the purpose
of this
Article.

 

11.9
PARTICIPATING
EMPLOYER
CONTRIBUTION
FOR AFFILIATE

 

If
any Participating
Employer
is prevented
in whole
or in part
from
making
a contribution
which
it would
otherwise
have
made
under
the Plan
by reason
of having
no current
or accumulated
earnings
or profits,
or because
such
earnings
or profits
are less
than the
contribution
which
it would
otherwise
have
made,
then,
pursuant
to Code
§404(a)(3)(B),
so much
of the
contribution
which
such
Participating
Employer
was so
prevented
from
making
may be
made,
for the
benefit
of the
participating
employees
of such
Participating
Employer,
by other
Participating
Employers
who are
members
of the
same
affiliated
group
within
the meaning
of C ode

§1504
to the
extent
of their
current
or accumulated
earnings
or profits,
except
that
such
contribution
by each
such
other
Participating
Employer
shall
be limited
to the
proportion
of its
total
current
and accumulated
earnings
or profits
remaining
after
adjustme
nt for
its contribution
to the
Plan made
without
regard
to this
paragraph
which
the total
prevented
contribution
bears
to the
total
current
and accumulated
earnings
or profits
of all
the Participating
Employers
remaining
after
adjustment
for all
contributions
made
to t he Plan
without
regard
to this
paragraph.

 

A
Participating
Employer
on behalf
of whose
employees
a contribution
is made
under this
paragraph
shall
not be
required
to reimburse
the contributing
Participating
Employers.

 

ARTICLE
XII

CASH
OR DEFERRED
PROVISIONS

 

Except
as specifically
provided
elsewhere
in this
Plan,
the provisions
of this
Article
shall
apply
with
respect
to any
401(k)
Profit

Sharing
Plan
regardless
of any
provisions
in the
Plan
to the
contrary.

 

12.1
FORMULA
FOR DETERMINING
EMPLOYER'S
CONTRIBUTION

 

(a)
Permitted
contributions.
 For each
Plan
Year,
the Employer
will
(or may
with
respect
to any
discretionary
contributions)

contribute
to the
Plan:

 

(1)
The amount
of the
total
salary
deferral
elections
of all
Participants
made
pursuant
to Section
12.2(a),
which
amount
shall
be deemed
Elective
Deferrals,
plus

 

(2)
If elected
in the
Adoption
Agreement,
a matching
contribution
equal
to the
percentage,
if any,
specified
in the
Adoption
Agreement
of the
Elective
Deferrals
of each
Participant
eligible
to share
in the
allocations
of the
matching
contribution,
wh ich
amount
shall
be deemed
an Employer
matching
contribution
or Qualified
Matching
Contribution
as elected
in the
Adoption
Agreement,
plus

 

(3)
If elected
in the
Adoption
Agreement,
a discretionary
amount
determined
each year
by the
Employer,
which
amount
if any,
shall
be deemed
an Employer
Nonelective
Contribution,
or a "prevailing
wage
contribution"
as set forth
in the
Adoption
Agreement,
which
amount
shall
be an Employer
Nonelective
Contribution
or an Elective
Contribution
as elected
in the
Adoption
Agreement,
plus

 

(4)
A Qualified
Nonelective
Contribution
in a discretionary
amount
determined
by the
Employer.

 

(5)
Regardless
of any
provision
in the
Plan
to the
contrary,
Employees
whose
employment
is governed
by a collective
bargaining
agreement
between
the Employer
and "employee
representatives"
under
which
retirement
benefits
were
the subject
of good
faith
bargaining
shall
be eligible
to participate
in this
Plan
to the
extent
of employment
covered
by such
agreement
provided
the agreement
provides
for coverage
in the
Plan.
The contributions
and allocations
under
this
Plan
shall
be those
set forth
in the
collective
bargaining
agreement,
which
is hereby
incorporated
by reference.
For this
purpose,
the term
"employee
representatives"
does not
include
any organization
more than
half
of whose
members
are employees
who are
owners,
officers,
or executives
of the
Employer.
The provisions
of this
Subsection
only
apply
if no more
than two
percent
(2%)
of the
Employees
covered
pursuant
to the
agreement
are professionals
as defined
in Regulation
§1.410(b)
-9.

 

(b)
Timing
and form
of contributions.
 Notwithstanding
the foregoing,
if the
Employer
is not
a tax-exempt
entity,
then
the Employer's
contributions
for any
Fiscal
Year may
generally
not exceed
the maximum
amount
allowable
as a deduction
to the
Employer
under
the provisions
of Code
§404.
However,
to the
extent
necessary
to provide
the top
-heavy
minimum
allocations,
the
Employer
shall
make
a contribution
even
if it exceeds
current
or accumulated
net profit
or the
amount
that
is deductible
under

    	 

    	 

    

 

Code
§404. Subject
to the
consent
of the
Trustee
(or Insurer),
the Employer
may make
its contribution
to the
Plan
in the
form
of property,
provided
such
contribution
does not
constitute
a prohibited
transaction
under
the Code
or the
Act.
The decision
to make
a contribution
of property
is subject
to the
general
fiduciary
rules
under
the Act.

 

12.2
PARTICIPANT'S
SALARY
DEFERRAL
ELECTION

 

(a)
Salary
deferral
elections.
Each
Participant
may elect
to defer
a portion
of Compensation
which
would
have
been received
in the
Plan
Year,
but for
the salary
deferral
election,
subject
to the
limitations
of this
Section
and the
Adoption
Agreement
.. A salary
deferral
election
(or modification
of an earlier
election)
may not
be made
with
respect
to Compensation
which
is currently
available
on or before
the date
the Participant
executed
such
election,
or if later,
the later
of the
date
the Employer
adopt
s this
cash
or deferred
arrangement
or the
date
such
arrangement
first
became
effective.
Any elections
made
pursuant
to this
Section,
including
a modification
or termination
of an election,
shall
become
effective
as soon
as is administratively
feasible
follow
ing the
receipt
of such
election
by the
Administrator.
Furthermore,
if the
Employer
elects
in the
Adoption
Agreement
to apply
the Automatic
Contribution
Arrangement
provisions,
then
in the
event
a Participant
fails
to make
an Affirmative
Election,
such
Participant
shall
be deemed
to have
made
a salary
deferral
election
in accordance
with
the provisions
selected
in the
Adoption
Agreement
and such
other
procedures
that
the Administrator
may establish
and apply
in a uniform
and nondiscriminatory
basis.

 

Regardless
of the
definition
of Compensation
selected
in the
Adoption
Agreement,
the Administrator
may adopt
a uniform
policy
for purposes
of determining
the amount
of a Participant's
Elective
Deferrals
of excluding
"non
-cash
Compensation."
For purposes
of this
Section,
"non-cash
Compensation"
means
tips,
fringe
benefits,
and other
items
of Compensation
not regularly
paid
in cash
or cash
equivalents,
or for
which
the Employer
does not
or may
not have
the ability
to withhold
Elective
Deferrals in cash
for the
purpose
of transmitting
the Elective
Deferrals
to the
Plan
pursuant
to the
Participant's
Salary
Deferral
Agreement.
Additionally,
the Employer
may, on
a uniform
and nondiscriminatory
basis,
permit
different
salary
deferral
elections
for different
items
of Compensation
(e.g.,
a separate
salary
deferral
election
for bonuses),
and may
exclude
for purposes
of calculating
Elective
Deferrals
one or
more
items
of irregular
pay (e.g.,
car allowance).

 

If
elected
in the
Adoption
Agreement,
effective
as of the
date
specified
in the
Adoption
Agreement,
a Participant
may make
a salary
deferral
election
to have
Roth
Elective
Deferrals
contributed
to the
Plan.
Roth
Elective
Deferrals
are includible
in the Participant's
gross
income
at the
time
deferred
and must
be irrevocably
designated
as Roth
Elective
Deferrals
by the
Participant

in the
Salary
Deferral
Agreement
(or if
applicable,
in the
Automatic
Deferral
provisions
of the
Plan).

 

The
amount
by which
Compensation
is reduced
shall
be that
Participant's
Elective
Deferrals
and shall
be treated
as an Employer
contribution
and allocated
to that
Participant's
Elective
Deferral
Account.
If the
Plan
permits
Roth
Elective
Deferral
contributions,
then
a Participant's
Pre-Tax
Elective
Deferrals
shall
be allocated
to the
Participant's
Pre-Tax
Elective
Deferral
Account
and a Participant's
Roth Elective
Deferrals
shall
be allocated
to the
Participant's
Roth
Elective
Deferral
Account.
Except
in the
case
of an "in-Plan
Roth Rollover
Contribution"
made
pursuant
to Section
12.11,
Elective
Deferrals
contributed
to the
Plan
as one type,
either
Roth Elective
Deferrals
or Pre-Tax
Elective
Deferrals,
may not
later
be reclassified
as the
other type.

 

Notwithstanding
anything
in the
Plan
to the
contrary,
Participants
may not
make
Elective
Deferrals
with
respect
to amounts
that
are not
415 Compensation.
However,
for this
purpose,
415 Compensation
is not
limited
to the
annual
compensation
limit
of Code
§401(a)(17).
Furthermore,
for purposes
of this
Section,
the annual
dollar
limitation
of Code
§401(a)(17)
($200,000
as adjusted)
shall
not apply
except
that
the Administrator
may elect
to apply
such
limit
as part
of the
salary
deferral
electi
on procedures
established
hereunder.

 

Once
made,
a Participant's
election
to reduce
Compensation
shall
remain
in effect
until
modified
or terminated.
The Administrator
shall
establish
procedures
setting
forth
the conditions
on modifications
of an election.
However,
Participants
must
be permitted
to modify
elections
at least
once each
Plan
Year.
Furthermore,
terminations
may be
made
at any
time.

 

(b)
Eligible
Automatic
Contribution
Arrangement
(EACA).
If elected
in the
Adoption
Agreement,
the Employer
maintains
a Plan
with
Automatic
Deferral
provisions
as an Eligible
Automatic
Contribution
Arrangement
(EACA)
and the
following
provisions
will apply:

 

(1)
Participants
subject
to EACA.
The Employer
in its
Adoption
Agreement
will elect
which
Participants
are subject
to the

EACA
Automatic
Deferral
on the
"EACA
Effective
Date"
thereof
which
may include
some or
all current
Participants
or may
be limited
to those
Employees
who become
Participants
after
the EACA
Effective
Date.
The "EACA
Effective
Date"
means
the
date
on which
the EACA
goes into
effect,
either
as to the
overall
Plan
or as to
an individual
Participants
as the
context
requires.
An EACA
becomes
effective
as to the
Plan
as of the
date the
Employer
elects
in the
Adoption
Agreement.
A Participant's
"EACA
Effective
Date"
is as soon
as practicable
after
the Participant
is subject
to Automatic
Deferrals
under t he
EACA,
consistent
with:
(i) applicable
law;
and (ii)
the objective
of affording
the Participant
a reasonable
period
of time
after
receipt
of the
EACA
notice
to make
an Affirmative
Election
(and,
if applicable,
an investment
election).

 

(2)
Uniformity.
The Automatic
Deferral
percentage
must
be a uniform
percentage
of Compensation.
However,
the Plan
does
not violate
the uniform
Automatic
Deferral
percentage
requirement
merely
because
the Plan
applies
any of
the following
provisions:

 

(i)       Years
of participation.
The Automatic
Deferral
percentage
varies
based
on the
number
of Plan
Years
the

Participant
has participated
in the
Plan
while
the Plan
has applied
EACA
provisions;

 

(ii)
No reduction
from prior
percentage.
The Plan
does not
reduce
a deferral
percentage
that,
immediately
prior
to the
EACA's
effective
date
was higher
(for
any Participant)
than
the Automatic
Deferral
percentage;

    	 

    	 

    

 

 

(iii)
Applying
statutory
limits.
The Plan
limits
the Automatic
Deferral
amount
so as not to
exceed
the limits
of Code

§401(a)(17),
402(g)
(determined
without
regard
to Age
50 Catch-Up
Deferrals),
or 415;

 

(iv)
No Automatic
Deferrals
during
hardship
suspension.
 The Plan
does not
apply
the Automatic
Deferral
during
a period
of suspension,
under the
Plan's
hardship
distribution
provisions,
of Participant's
right
to make
Elective
Deferrals
to the
Plan
following
a hardship
distribution;
or

 

(v)
Disaggregated
groups.
The Plan
applies
different
default
percentages
to different
groups
if the
groups
can be
disaggregated
under
Regulation
§1.401(k)-1(b)(4).

 

(3)
EACA
notice.
The Administrator
annually
will
provide
a notice
to each Participant
covered
by the
EACA provisions
(including,
if elected
in the
Adoption
Agreement,
Participants
who made
an Affirmative
Election)
within
a reasonable
period
of time
prior
to each
Plan
Year
the Employer
maintains
the Plan
as an EACA
("EACA
Plan
Year").

 

(i)
Deemed
reasonable
notice/new
Participant.
The Administrator
is deemed
to provide
timely
notice
if the
Administrator
provides
the EACA
notice
at least
thirty
(30) days
and not
more
than
nin ety
(90) days
prior
to the
beginning
of the
EACA Plan
Year.

 

(ii)
Mid-year
notice/new
Participant
or Plan.
If: (A)
an Employee
becomes
eligible
to make
Elective
Deferrals
in the
Plan
during
an EACA
Plan
Year but
after
the Administrator
has provided
the annual
EACA notice
for that
Plan
Year;
or (B)
the Employer
adopts
mid-year
a new Plan
as an EACA,
the Administrator
must
provide
the EACA
notice
no later
than
the date
the Employee
becomes
eligible
to make
Elective
Deferrals.
However,
if it is
not practicable
for the
notice
to be provided
on or before
the date
an Employee
becomes
a Participant,
then
the notice
will nonetheless
be treated
as provided
timely
if it is
provided
as soon
as practicable
after
that
date
and the
Employee
is permitted
to elect to defer
from
all types
of Compensation
that
may be
deferred
under the
Plan
earned
beginning
on that
date.

 

(iii)
Content.
The EACA
notice
must
provide
comprehensive
information
regarding
the Participants'
rights
and obligations
under
the Plan
and must
be written
in a manner
calculated
to be understood
by the
average
Participant
in accordance
with
applicable
law.

 

(4)
EACA
permissible
withdrawal.
If elected
in the
Adoption
Agreement,
a Participant
who has
Automatic
Deferrals
under the
EACA
may elect
to withdraw
all the
Automatic
Deferrals
(and
allocable
earnings)
under
the provisions
of this
Subsection.
Any
distribution
made
pursuant
to this
Section
will
be processed
in accordance
with
normal
distribution
provisions
of the
Plan.

 

(i)       Amount.
If a Participant
elects
a permissible
withdrawal
under this
Subsection,
then
the Plan
must
make a distribution
equal
to the
amount
(and
only
the amount)
of the Automatic
Deferrals
made
under
the EACA
(adjusted
for allocable
gains
and losses
to the
date
of the
distribution).
The Plan
may separately
account
for Automatic
Deferrals,
in which
case the
entire
account
will be
distributed.
If the
Plan
does not
separately
account
for the
Automatic
Deferrals,
then
the Plan
must
determine
earnings
or losses
in a manner
similar
to the
refund
of Excess
Contributions.

 

(ii)
Fees.
Notwithstanding
the above,
the Administrator
may reduce
the permissible
distribution
amount
by any
generally
applicable
fees.
However,
the Plan
may not
charge
a greater
fee for
distribution
under this
Section
than
applies
to other
distributions.
The Administrator
may adopt
a policy
regarding
charging
such
fees consistent
with this
paragraph.

 

(iii)
Timing.
The Participant
may make
an election
to withdraw
the Automatic
Deferrals
under
the EACA
no later
than
ninety
(90) days,
or such
shorter
period
as specified
in the Adoption
Agreement,
after
the date
of the first
Automatic
Deferral
under the
EACA.
For this
purpose,
the date
of the first
Automatic
Deferral
is the
date that
the Compensation
subject
to the Automatic
Deferral
otherwise
would
have
been includible
in the
Participant's
gross
income.
For this
purpose,
EACAs
under the
Plan
are aggregated,
except
that
the mandatory
disaggregation
rules
of Code
§410(b)
apply.
In addition,
a Participant's
withdrawal
right
is not
restricted
due to the
Particip
ant making
an Affirmative
Election
during
the ninety
(90) day
period
(or shorter
period
as specified
in the
Adoption
Agreement).

 

(iv)
Rehired
Employees.
For purposes
of paragraph
(iii)
above,
an Employee
who for
an entire
Plan
Year did
not have
contributions
made
pursuant
to a default
election
under the
EACA will
be treated
as having
not had
such
contributions
for
any prior
Plan
Year as
well.

 

(v)
Effective
date
of the
withdrawal
election.
The effective
date
of the
permissible
withdrawal
will
be as soon
as practicable,
but in no
event
later
than
the earlier
of (A)
the pay
date of
the second
payroll
period
beginning
after
the election
is made,
or (B)
the first
pay date
that
occurs
at least
thirty
(30) days
after
the election
is made.
The election
will
also be
deemed
to be an
Affirmative
Election
to have
no Elective
Deferrals
made to
the Plan.

 

(vi)
Related
matching
contributions.
The Administrator
will
not take
any Elective
Deferrals
withdrawn
pursuant
to this
Section
into
account
in computing
and allocating
matching
contributions.
If the
Employer
has already
allocated
matching
contributions
to the
Participant's
Account
with
respect
to E lective
Deferrals
being
withdrawn
pursuant
to this
Subsection
(4),
then
such
matching
contributions,
as adjusted
for gains
and losses,
must
be forfeited.

    	 

    	 

    

 

(vii)
Treatment
of withdrawals.
W ith regard
to Elective
Deferrals
withdrawn
pursuant
to this
Subsection,
(A) the
Administrator
will disregard
such Elective
Deferrals
in the
Actual
Deferral
Percentage
Test
(if applicable);
(B) the
Administrator
will disregard
such Elective
Deferrals
for purposes
of the
limitation
on Elective
Deferrals
under Code

§402(g);
(C) such
Elective
Deferrals
are not
subject
to the
consent
requirements
of Code
§401(a)(11)
or 417.
The

Administrator
will disregard
any matching
contributions
forfeited
under
paragraph
(vi) above
in the
ACP Test
(if applicable).

 

(viii)
Effect
of Affirmative
Election.
A Participant's
Affirmative
Election
continues
in effect
until
the Participant
subsequently
revokes
or modifies
his or her
Salary
Deferral
Agreement,
or the
Affirmative
Election
expires.
A Participant
who makes
an Affirmative
Election
is not
thereafter
subject
to the
Automatic
Deferral
or to any
scheduled
increases
thereto,
even
if the
Participant
later
revokes
the Affirmative
Election
or the
Affirmative
Election,
unless
the Participant
is subject
to the
EACA.
In addition,
a Participant
who is
subject
to the
EACA
provisions
who revokes
his or her
Affirmative
Election
or whose
Affirmative
Election
expires,
will
be deemed
to have
made an
Affirmative
Elect
ion to
have
no Elective
Deferrals
made to
the Plan.

 

(c)
Catch-Up
Contributions.
If selected
in the
Adoption
Agreement,
all Employees
who are
eligible
to make
Elective
Defer
rals
under
this
Plan
and who
have
attained
age 50
before
the close
of the
taxable
year shall
be eligible
to make
Catch
-Up Contributions
in accordance
with,
and subject
to the
dollar
limitations
of, Code
§414(v)(2)(B)(i)
for the
taxable
year.
The l imit
will be
adjusted
by the
Secretary
of the
Treasury
for cost-of-living
increases
under
Code
§414(v)(2)(C).
Such
Catch-Up
Contributions
shall
not
be taken
into
account
for purposes
of the
provisions
of the
Plan
implementing
the required
limitations
of Code
§§40
2(g)
and 415.
The Plan
shall
not be
treated
as failing
to satisfy
the provisions
of the
Plan
implementing
the requirements
of Code

§401(k)(3),
401(k)(11),
401(k)(12),
410(b),
or 416,
as applicable,
by reason
of the
making
of such
Catch
-Up Contributions
(but Catch-Up
Contributions
made in
prior
years
are counted
in determining
whether
the Plan
is a Top -Heavy
Plan).
If selected
in the
Adoption
Agreement,
Catch-Up
Contributions
shall
not be
treated
as Elective
Deferrals
for purposes
of applying
any Employer
matching
contributions.
Such option
cannot
be selected
if the
Plan elects
to follow
the safe
harbor
provisions
of Section
12.8.

 

(d)
Full
vesting.
The balance
in each
Participant's
Elective
Deferral
Account,
Qualified
Matching
Contribution
Account
a nd Qualified
Nonelective
Contribution
Account
shall
be fully
Vested
at all
times and,
except
as otherwise
provided
herein,
shall
not be
subject
to Forfeiture
for any
reason.

 

(e)
Distribution
restrictions.
 Amounts
held
in a Participant's
Elective
Deferral
Account,
Qualified
Matching
Contribution
Account
and Qualified
Nonelective
Contribution
Account
may only
be distributable
as provided
in (4)
below
or as provided
under the
other
provisions
of this
Plan,
but in
no event
prior
to the earlier
of th e following
events
or any
other
events
permitted
by the
Code
or Regulations:

 

(1)
the Participant's
severance
of employment
(regardless
of when
the severance
of employment
occurred),
Total
and

Permanent
Disability,
or death;

 

(2)
the Participant's
attainment
of age
59 1/2;

 

(3)
the proven
financial
hardship
of the
Participant,
subject
to the
limitations
of Section
12.10(d)
(or,
for a volume
submitter
plan,
Section
6.12);

 

(4)
the termination
of the
Plan
without
the existence
at the
time
of Plan
termination
of another
defined
contribution
plan
or the
establishment
of a successor
defined
contribution
plan
by the
Employer
or an Affili
ated
Employer
within
the period
ending
twelve
months
after
distribution
of all
assets
from
the Plan
maintained
by the
Employer.
For this
purpose,
a defined
contribution
plan
does not
include
an employee
stock
ownership
plan
(as defined
in Code
§4975(e)(7)
or 409(a)),
a simplified
employee
pension
plan
(as defined
in Code
§408(k)),
a SIMPLE
individual
retirement
account
plan
(as defined
in Code
§408(p)),
a plan
or contract
that
satisfies
the requirements
of Code
§403(b),
or a plan
that
is described
in Code

§457(b)
or (f).
A distribution
that
is made
because
of this
paragraph
(4) must
be made
in a lump-sum;

 

(5)
the Participant's
call
to active
duty
after
September
11, 2001,
because
of the
Participant's
status
as a member
of a reserve
component,
for a period
of at least
180 days
or for
an indefinite
period,
i.e.,
a "qualified
reservist
distribution"
within
the meaning
of Section
6.18;
or

 

(6)
a Participant's
service
in the
uniformed
services
while
on active
duty
for a period
of at least
30 days,
i.e.,
a "deemed
distribution"
within
the meaning
of Section
6.18.

 

(f)
Code §402(g)
dollar
limit.
A Participant's
Elective
Deferrals
made
under this
Plan
and all
other
plans,
contracts
or arrangements
of the
Employer
maintaining
this
Plan
during
any calendar
year shall
not exceed
the dollar
limitation
imposed
by Code
§402(g),
as in effect
at the
beginning
of such
calendar
year,
except
to the
extent
permitted
under
Sect
ion 12.2(c)
and Code

§414(v),
if applicable.
The limit
will
be adjusted
by the
Secretary
of the
Treasury
for cost
-of-living
increases
under
Code

§402(g)(4).
For this
purpose,
"elective
deferrals"
means,
with
respect
to a calendar
year,
the sum
of all
Employer
contributions
made
on behalf
of such
Participant
pursuant
to an election
to defer
under
any qualified
cash
or deferred
arrangement
as described
in Code
§401(k),
any salary
reduction
simplified
employee
pension
(as defined
in Code
§408(k)(6)),
any SIMPLE IRA plan
described
in Code
§408(p),
any eligible
deferred
compensation
plan
under
Code
§457, any
plans
described
under
Code

§501(c)(18),
and any
Employer
contributions
made
on the
behalf
of a Participant
for the
purchase
of an annuity
contract
under

Code
§403(b)
pursuant
to a salary
deferral
agreement.

    	 

    	 

    

 

(g)
Excess
Deferrals.
If a Participant
has Excess
Deferrals
for a taxable
year,
the Participant
may, not
later
than
March 1st
following
the close
of such
taxable
year,
notify
the Administrator
in writing
of such
excess
and request
that
the Participant's
Elective
Deferrals
under
this
Plan
be reduced
by an amount
specified
by the
Participant.
In such
event,
the Administrator
sha ll direct
the distribution
of such
excess
amount
(and any
"income"
allocable
to such
excess
amount)
to the
Participant
not later
than
the
first
April
15th
following
the close
of the
Participant's
taxable
year.
Any distribution
of less
than
the entire
amount
of Excess
Deferrals
and "income"
shall
be treated
as a pro
rata
distribution
of Excess
Deferrals
and "income."
The amount
distributed
shall
not exceed
the Participant's
Elective
Deferrals
under
the Plan
for the
taxable
year.
Any distribution
on or before
the last
d ay of

the
Participant's
taxable
year must
satisfy
each
of the following
conditions:
(1) the
Participant
shall
designate
the distribution
as Excess
Deferrals;

(2)
the distribution
must
be made
after
the date
on which
the Plan
received
the Excess
Deferrals;
and

 

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

 

Regardless
of the
preceding,
if a Participant
has Excess
Deferrals
solely
from
Elective
Deferrals
made under
this Plan
or any
other
plan
maintained
by the
Employer,
a Participant
will be
deemed
to have
notified
the Administrator
of such
excess
amount
and the
Administrator
shall
direct
the distribution
of such
Excess
Deferrals
in a manner
consistent
with
the provisions of this
Subsection.

 

For
the purpose
of this
Subsection,
"income"
means the
amount
of income
or loss
allocable
to a Participant's
Excess
Deferrals,
which
amount
shall
be allocated
in the
same
manner
as income
or losses
are allocated
pursuant
to Section
4.3(c).
For taxable
years
after
2007,
the Administrator
may not
distribute
"income"
allocable
to Excess
Deferrals
for the
period
between
the end
of the
Participant's
taxable
year in
which
the Excess
Deferral
occurred
and the
date
of the
distribution
(the
" gap period").

 

Notwithstanding
the above,
for any
years
in which
a Participant
makes both
Roth
Elective
Deferrals
and Pre
-Tax
Elective
Deferrals,
the distribution
of any
Excess
Deferrals
for such
year shall
be made,
as operationally
determined
by the
Administrator,
from
the Participant's
Pre-Tax
Elective
Deferral
Account
or Participant's
Roth
Elective
Deferral
Account.
Matching
contributions
which
relate
to Excess
Elective
Deferrals
(regardless
of whether
such
Excess
Elective
Deferrals
are Pre-Tax
Elective
Deferrals
or Roth
Elective
Deferrals)
shall
be treated
as a Forfeiture.

 

Any
distribution
of Excess
Deferrals
made
pursuant
to this
Subsection
shall
be made
first
from
unmatched
Elective
Deferrals

(regardless
of whether
they
are
attributable
to Pre-Tax
Elective
Deferrals
or Roth
Elective
Deferrals)
and,
thereafter,
from
Elective
Deferrals
which
are matched.
Matching
contributions
which
relate
to Excess
Deferrals
that
are distributed
pursuant
t o this
Section
12.2(g)
shall
be treated
as a Forfeiture
to the
extent
required
pursuant
to Code
§401(a)(4)
and the
Regulations
thereunder.

 

(h)
Coordination
with
ADP test.
Notwithstanding
the preceding,
a Participant's
Excess
Deferrals
shall
be reduced,
but not
below
zero,
by any
distribution
and/or
recharacterization
of Excess
Deferrals
pursuant
to Section
12.5(b)
for the
Plan
Year
beginning
with
or within
the taxable
year of
the Participant.

 

(i)
       Suspension
due to
hardship
or deemed
severance.
 In the
event
a Participant
has received
a hardship
distribution
pursuant
to Regulation
§1.401(k)-1(d)(3)
from any
other
plan
maintained
by the
Employer
or from
the Participant's
Elective
Deferral
Account
pursuant
to Section
12.10,
or has received
a distribution
on account
of deemed
severance
on account
of qualified
military
service
from
this
Plan
or any other
plan
maintained
by the
Employer,
then
such
Participant
shall
not be permitted
to elect
to have
Elective
Deferrals
contributed
to the
Plan
for a period
of six
(6) months
following
the receipt
of the

distribution.
Furthermore,
any provisions
of the
Plan
providing
for the
reduction
of the
dollar
limitation
under
Code
§402( g)
for the
Participant's
taxable
year following
the taxable
year in
which
the hardship
distribution
was made
shall
no longer
apply.
Upon
the expiration
of the
suspension
period,
a Participant's
prior
Affirmative
Election
will no
longer
apply
unless
the Emp
loyer
provides
otherwise
in the
Plan's
administrative
procedures.

 

(j)       Distributable
based
on other
terms
of Plan.
At Normal
Retirement
Date,
or such
other
date
when
the Participant
shall
be entitled
to receive
benefits,
the fair
market
value
of the
Participant's
Elective
Deferral
Account
shall
be used
to provide
benefits
to the
Participant
or the
Participant's
Beneficiary.

 

(k)
Adjustment
due to
anticipated
failure
of ADP
test.
If during
a Plan
Year,
it is projected
that
the aggregate
amount
of Elective
Deferrals
to be allocated
to all
Highly
Compensated
Participants
under
this
Plan
would
cause the
Plan
to fail
the tests
set forth
in Section
12.4,
then
the Administrator
may automatically
reduce
the Elective
Deferrals
of affected
Highly
Compensated
Participants,
beginning
with
the Highly
Compensated
Participant
who has
the highest
actual
deferral
ratio
until
it is anticip
ated
the Plan
will pass
the tests
or until
the actual
deferral
ratio
equals
the actual
deferral
ratio
of the
Highly
Compensated
Participant
having
the next
highest
actual
deferral
ratio.
This
process
may continue
until
it is anticipated
that
the Plan
will satisfy
o ne of the
tests
set forth
in Section
12.4.
Alternatively,
the Employer
may specify
a maximum
percentage
of Compensation
that
may be deferred
by Highly
Compensated
Participants
(and any
such limitation
shall
be a Plan-imposed
limit for
purposes
of determining
Catch-up
Contributions).

 

(l)
Procedures
must be
established.
The Employer
and the
Administrator
shall
establish
procedures
necessary
to implement
the salary
deferral
elections
provided
for herein.
Such
procedures
may contain
limits
on salary
deferral
elections
such
as li miting
elections
to whole
percentages
of Compensation
or to equal
dollar
amounts
per pay
period
that
an election
is in effect.

    	 

    	 

    

 

12.3
ALLOCATION
OF CONTRIBUTIONS
AND FORFEITURES

 

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

 

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

 

(1)
With
respect
to Elective
Deferrals
made
pursuant
to Section
12.1(a)(1),
to each
Participant's
Elective
Deferral
Account
in an
amount
equal
to each
such
Participant's
Elective
Deferrals
for the
year.

 

(2)
With
respect
to the
Employer
matching
contribution
made
pursuant
to Section
12.1(a)(2),
to each
Participant's
Account,
or Participant's
Qualified
Matching
Contribution
Account,
as elected
in the
Adoption
Agreement,
in accordance
with

Section
12.1(a)(2).

 

Except,
however,
in order
to be entitled
to receive
any Employer
matching
contribution,
a Participant
must satisfy
the conditions
for sharing
in the
Employer
matching
contribution
as set
forth
in the
Adoption
Agreement.

 

(3)
With
respect
to the
Employer
Nonelective
Contribution
made
pursuant
to Section
12.1(a)(3),
to each
Participant's
Account
in accordance
with
the provisions
of Section
4.3(b)(2)
or (3)
(including
the "gateway
contribution"
pursuant
to Section
4.3(b)(4)),
whichever
is applicable.

 

(4)
With
respect
to the
Employer
Qualified
Nonelective
Contribution
made
pursuant
to Section
12.1(a)(4),
to each
Participant's
Qualified
Nonelective
Contribution
Account
in the
same
ratio
as each
Participant's
Compensation
bears
to the
total
of such
Compensation
of all
Participants.

 

(c)
Elective
Deferrals
not taken into
account
for Non-Key
Employees.
Notwithstanding
anything
in the
Plan
to the
contrary,
in determining
whether
a Non-Key
Employee
has received
the required
minimum
allocation
pursuant
to Section
4.3(f)
such

Non-Key
Employee's
Elective
Deferrals
shall
not be
taken
into
account.
In addition,
unless
otherwise
specified
in Appendix
A to

the
Adoption
Agreement
(Special
Effective
Dates
and Other
Permitted
Elections),
Employer
matching
contributions
shall
be take
n into
account
for
purposes
of satisfying
the
minimum
contribution
requirements
of Code
§416(c)(2)
and the
Plan.
The preceding
sentence
shall
apply
with
respect
to matching
contributions
under the
Plan
or, if
the Plan
provides
that
the minimum
contribu
tion
requirement
shall
be met
in another
plan,
such
other
plan.
Employer
matching
contributions
that
are used
to satisfy
the minimum
contribution
requirements
shall
be treated
as matching
contributions
for purposes
of the
ACP test
and other
requirements
of

Code
§401(m).

 

(d)
Elective
Deferrals
not conditioned
on service
during
a year.
Notwithstanding
anything
herein
to the
contrary,
Participants
who terminated
employment
during
the Plan
Year shall
share
in the
Elective
Deferral
contributions
made by
the Employer
for the year
of termination
without
regard
to the
Hours
of Service
credited.

 

(e)
Conditions
for sharing
in contributions/allocations.
Notwithstanding
anything
herein
to the
contr
ary (other
than
Sections

3.5(h),
4.3(f)
and 12.3(f)),
Participants
shall
only
share
in the
allocations
of the
Employer
matching
contribution
made
purs
uant
to Section
12.1(a)(2),
the Employer
Nonelective
Contributions
made
pursuant
to Section
12.1(a)(3),
th e Employer
Qualified
Nonelective
Contribution
made
pursuant
to Section
12.1(a)(4),
and Forfeitures
as provided
in the
Adoption
Agreement.
If no election
is made
in the
Adoption
Agreement,
then
a Participant
shall
be eligible
to share
in the
allocation
of t he Employer's
contribution
for the
year if
the Participant
completes
more
than
500 Hours
of Service
(or three
(3) consecutive
calendar
mont hs
if the
elapsed
time
method
is chosen
in the
Adoption
Agreement)
during
the Plan
Year or
is employed
on the
last
da y of the
Plan
Year.

 

(f)
Code §410(b)
fail-safe.
Notwithstanding
anything
in this
Section
to the
contrary,
if, in
the volume
submitter
or

non-standardized
Adoption
Agreement,
the Employer
elected
to apply
the 410(b)
ratio
percentage
fail-safe
provisions,
then
the provisions
of Section
4.3(m)
shall
apply.
Furthermore,
if the
Plan
includes
Employer
matching
contributions
subject
to ACP testing,
then
Section
4.3(m)
shall
be applied
separately
to the
Code §401(m)
portion
of the
Plan.

 

12.4
ACTUAL
DEFERRAL
PERCENTAGE
TESTS

 

(a)
ADP test.
Except
as otherwise
provided
herein,
this
Subsection
applies
if the
prior
year testing
method
is elected
in the
Adoption
Agreement.
The "Actual
Deferral
Percentage"
(hereinafter
ADP) for
a Plan
Year for
Participants
who are
Highly
Compensated
Employees
(hereinafter
"HCEs")
for each
Plan
Year
and the
prior
year's
ADP for
Participants
who were
Nonhighly
Compensated
Employees
(hereinafter
"NHCEs")
for the
prior
Plan
Year
must satisfy
one of
the following
tests:

 

(1)
The ADP
for a Plan
Year for
Participants
who are
"HCEs"
for the
Plan
Year
shall
not exceed
the prior
year's
ADP for

Participants
who were
"NHCEs"
for the
prior
Plan
Year
multiplied
by 1.25;
or

 

(2)
The ADP
for a Plan
Year for
Participants
who are
"HCEs"
for the
Plan
Year
shall
not exceed
the prior
year's
ADP for
Participants
who were
"NHCEs"
for the
prior
Plan
Year
multiplied
by 2.0,
provided
that
the ADP
for Participants
who are
"HCEs"
does not
exceed
the prior
year's
ADP for
Participants
who were
"NHCEs"
in the
prior
Pla n Year
by more
than

two
(2) percentage
points.

    	 

    	 

    

 

 

Notwithstanding
the above,
for purposes
of applying
the foregoing
tests
with
respect
to the
first
Plan
Year (as
defined
in Regulation
§1.401(k)-2(c)(2))
in which
the Plan
permits
any Participant
to make
Elect
ive Deferrals,
the ADP
for the
prior
year's
"NHCEs"
shall
be the
greater
of three
percent
(3%) or
the current
Plan
Year's
ADP for
these
Participants.
However,
the

provisions
of this
paragraph
may not
be used
if the
Plan is
a successor
plan
or is otherwise
prohibited
from
using
such
provisions
pursuant
to Regulation
§1.401(k)-2(c)(2).

 

(b)
Current
year testing
method.
Notwithstanding
the foregoing,
if the
current
year testing
method
is elected
in the
Adoption
Agreement,
or if no
election
is made
in the
Adoption
Agreement,
and for
any Plan
Year
for which
the Employer
has either
reserved
the right
to make
a nonelective
"ADP
test
safe harbor
contribution"
pursuant
to Section
12.8
or amended
the Plan
to make
an "ADP
test
safe harbor
contribution,"
the ADP
tests
in (a)(1)
and (a)(2)
above
shall
be applied
by comparing
the curre
nt Plan
Year's
ADP for
Participants
who are
"HCEs"
with
the current
Plan
Year's
ADP (rather
than
the prior
P lan Year's
ADP)
for Participants
who are
"NHCEs"
for the
current
Plan
Year.
Once made,
the Employer
can elect
prior
year testing
for a Plan
Year
only
if the
Plan
has used
current
year testing
for each
of the
preceding
5 Plan
Years
(or if
lesser,
the number
of Plan
Years
the Plan
has been
in existence)
or if,
as a result
of a merger
or acquisition
described
in Code
§410(b)(6)(C)(i),
the Employer
maintains
both
a plan
using
prior
year testing
and a plan
using
current year
testing
and the
change
is made
within
the transition
period
described
in Code
§410(b)(6)(C)(ii).

 

(c)
Determination
of "HCEs"
and "NHCEs."
A Participant
is an "HCE"
for a particular
Plan
Year if
the Participant
meets
the definition
of an "HCE"
in effect
for that
Plan
Year.
Similarly,
a Participant
is an "NHCE"
for a particular
Plan
Year
if the
Participant
does not
meet the
definition
of an "HCE"
in effect
for that
Plan
Year.

 

(d)
Calculation
of ADP.
For the
purposes
of this
Section
and Section
12.5,
ADP means,
for a specific
group
of Participants
for a Plan
Year,
the average
of the ratios
(calculated
separately
for each
Participant
in such
group)
of (1) the
amount
of Employ
er contributions
actually
paid
over
to the
Plan
on behalf
of such
Participant
for the
Plan
Year to
(2) the
Participant's
414(s)
Compensation
for such
Plan
Year.
Employer
contributions
on behalf
of any Participant
shall
include:
(1) any
Elective
Deferral
s made
pursuant
to the
Participant's
salary
deferral
election
(including
Excess
Deferrals
of "HCEs"),
but excluding
(i) Excess
Deferrals
of "NHCEs"
that
arise
solely
from
Elective
Deferrals
made under
the plan
or plans
of this
Employer
and (ii)
Electiv
e Deferrals
that
are taken
into
account
in the
ACP tests
set forth
in Section
12.6 (provided
the ADP
test is
satisfied
both with
and without
exclusion
of these
Elective
Deferrals);
and (2)
except
as provided
in Subsections
(f) and
(g),
at the election
of the
Employer,
Qualified
Nonelective
Contributions
and Qualified
Matching
Contributions
to the
extent
such
contributions
are not used
to satisfy
the ACP
test.

 

The
actual
deferral
ratio
for each
Participant
and the
ADP f or each
group
shall
be calculated
to the
nearest
one-hundredth
of one
percent.
Furthermore,
Elective
Deferrals
allocated
to each
Highly
Compensated
Participant's
Elective
Deferral
Account
sha ll
not
be reduced
by Excess
Deferrals
to the
extent
such
excess
amounts
are made
under
this
Plan
or any
other
plan
maintained

by
the Employer.

 

(e)
Participants
taken
into
account.
For purposes
of this
Section
and Section
12.5,
a Highly
Compensated
Participant
and a Nonhighly
Compensated
Participant
shall
include
any Employee
eligible
to make
salary
deferrals
pursuant
to Section
12.2
for t he
Plan
Year.
Such
Participants
who fail
to make
Elective
Deferrals
shall
be treated
for ADP
purposes
as Participants
on whose
behalf
no Elective
Deferrals
are made.
If a Participant
has no
414(s)
Compensation
for the
Plan
Year,
then
such
Participant
i s disregarded
for purposes
of calculating
the ADP
test.

 

(f)
Contributions
taken into
account.
For purposes
of determining
the ADP
and the
amount
of Excess
Contributions
pursuant
to Section
12.5,
only
Qualified
Nonelective
Contributions
and Qualified
Matching
Contributions
contributed
to the
Plan
prior
to the
end of
the twelve
(12) month
period
immediately
following
the Plan
Year to
which
the contributions
relate
shall
be considered
.. A Participant's
Elective
Deferrals
are only
taken
into
account
for purposes
of determining
the ADP
for a Plan
Y ear if allocated
to the
Participant's
Elective
Deferral
Account
as of a date
within
that
Plan
Year and
are only
made
with
respect
to Compensation
that would
have
either
been received
by the
Participant
in the
Plan
Year (but
for the
salary
deferral
election)
or is attributable
to services
performed
by the
Participant
in the
Plan
Year
and would
have
been paid
within
two and
one -half
(2 1/2)
months
after
the close
of the
Plan
Year
(but for
the salary
deferral
election).

 

(g)
Targeted
contributions.
 Notwithstanding
the preceding,
for Plan
Years
beginning
in 2006
(or if
earlier,
the date
the final

401(k)
Regulations
are effective
with
respect
to the
Plan),
Qualified
Nonelective
Contributions
cannot
be taken
into
account
in determining
the ADP
for a Plan
Year for
an "NHCE"
to the
extent
such
contributions
exceed
the product
of that
"NHCE's"
414(s)
Compensation
and the
greater
of five
percent
(5%)
or two
(2) times
the Plan's
"represen
tative
contribution
rate."
Any Qualified
Nonelective
Contribution
taken
into
account
under
an ACP
test
under
Regulation
§1.401(m)
-2(a)(6)
(including
the determination
of the
"representative
contribution
rate"
for purposes
of Regulation
§1.401(m)
-2(a)(6)(v)(B)),
is not
permitted
to be taken
into
account
for purposes
of this
paragraph
(including
the determination
of the
"representative
contribution
rate"
under this
Sect
ion).
For
purposes
of this
Subsection:

 

(1)
The Plan's
"representative
contribution
rate"
is the
lowest
"applicable
contribution
rate"
of any
eligible
"NHCE"
among
a group
of eligible
"NHCEs"
that
consists
of half
of all
eligible
"NHCEs"
for the
Plan
Year
(or,
if greater,
the lowest
"applic
able
contribution
rate"
of any
eligible
"NHCE"
in the
group
of all
eligible
"NHCEs"
for the
Plan
Year
and who
is employed
by the
Employer
on the
last
day of
the Plan
Year),
and

 

(2)
The "applicable
contribution
rate"
for an
eligible
"NHCE"
is the
sum of
the Qualified
Matching
Contributions
taken
into
account
under
Subsection
(d) for
the eligible
"NHCE"
for the
Plan
Year and
the Qualified
Nonelective
Contributions
made for
the
eligible
"NHCE"
for the
Plan
Year,
divided
by the
eligible
"NHCE's"
414(s)
Compensation
for the
same period.

    	 

    	 

    

 

 

Notwithstanding
the above,
Qualified
Nonelective
Contributions
that
are made
in connection
with
an Employer's
obligation
to pay
prevailing
wages
under the
Davis-Bacon
Act (46
Stat.
1494),
Public
Law 71-798,
Service
Contract
Act of
1965 (79
Stat.

1965),
Public
Law 89-286,
or similar
legislation
can be
taken
into
account
for a Plan
Year for
an "NHCE"
to the
extent
such

contributions
do not
exceed
10 percent
(10%)
of that
"NHCE's"
414(s)
Compensation.

 

Qualified
Matching
Contributions
may only
be used
to calculate
the ADP
to the
extent
that
such
Qualified
Matching
Contributions
are matching
contributions
that
are not
precluded
from
being
taken
into
account
under the
ACP test
for the
Plan
Year
under the
rules
of Regulation
§1.401(m)-2(a)(5)(ii).

 

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

 

(h)
Aggregation
with
other
plans.
In the
event
this
Plan
satisfies
the requirements
of Code
§401(a)(4),
401(k),
or 410(b)
only
if aggregated
with one
or more other
plans,
or if one
or more
other
plans
satisfy
the requirements
of such
sections
of the
Code
only
if aggregated
with
this
Plan,
then
this
Section
shall
be applied
by determining
the ADP
of Employees
as if all
such plans
wer e a single
plan.
If more than
ten percent
(10%) of
the Employer's
"NHCEs"
are involved
in a plan
coverage
change
as defined
in Regulation
§1.401(k)-2(c)(4),
then
any adjustments
to the
"NHCEs"
ADP for
the prior
year will
be made
in accordance
with
such Regulations,
if the
Employer
has elected
in the
Adoption
Agreement
to use the
prior
year testing
method.
Plans
may be aggregated
in order
to satisfy
Code
§401(k)
only if
they
have
the same
Plan
Year and
use the
same ADP
testing
method.

 

(i)
       ADP
if multiple
plans.
The ADP
for any
Participant
who is
an "HCE"
for the
Plan
Year and
who is
eligible
to have
Elective
Deferrals
(and Qualified
Nonelective
Contributions
or Qualified
Matching
Contributions,
or both,
if treated
as Elective
Deferrals
for purposes
of the ADP
test)
allocated
to such
Participant's
accounts
under two
(2) or more
arrangements
described
in Code

§401(k),
that
are maintained
by the
Employer,
shall
be determined
as if such
Elective
Deferrals
(and,
if applicable,
such
Qualified

Nonelective
Contributions
or Qualified
Matching
Contributions,
or both)
were
made
under
a single
arrangement
for purposes
of

determining
such
"HCE's"
actual
deferral
ratio.
If an "HCE"
participates
in two
or more
arrangements
des cribed
in Code
§401(k)
of the
Employer
that
have
different
plan
years,
all Elective
Deferrals
made
during
the Plan
Year
under
all such
arrangements
shall
be aggregated.
For Plan
Years
beginning
before
2006 (or
if earlier,
the Plan
Year
prior
to the
date
th e final
401(k)

Regulations
are effective
with
respect
to the
Plan),
if the
plans
have different
Plan
Years,
then
all such
arrangements
endin
g with

or
within
the same
calendar
year shall
be treated
as a single
arrangement.
Notwithstanding
the foregoing,
cer tain
plans
shall
be treated
as separate
if mandatorily
disaggregated
under Regulations
under
Code
§401(k).

 

(j)
       Disaggregation
and otherwise
excludable
Employees.
 Notwithstanding
anything
in this
Section
to the
contrary,
the provisions
of this
Section
and Section
12.5
may be
applied
separately
(or will
be applied
separately
to the
extent
required
b y Regulations)
to each
"plan"
within
the meaning
of Regulation
§1.401(k)-6.
Furthermore,
the provisions
of Code
§401(k)(3)(F)
may be
used
to exclude
from
consideration
all Nonhighly
Compensated
Employees
who have
not satisfied
the minimum
age and
service
requirements
of Code
§410(a)(1)(A).
For purposes
of applying
this
provision,
the Administrator
may use
any effective

date
of participation
that
is permitted
under Code
§410(b)
provided
such
date
is applied
on a consistent
and uniform
basis
to all

Participants.

 

(k)
"HCEs"
as sole
Eligible
Employees.
If, for
the applicable
year for
determining
the ADP
of the
"NHCEs"
for a Plan
Year,
there
are no
eligible
"NHCEs,"
then
the Plan
is deemed
to satisfy
the ADP
test
for the
Plan
Year.

 

12.5
ADJUSTMENT
TO ACTUAL
DEFERRAL
PERCENTAGE
TESTS

 

(a)
Authority
to correct.
In the
event
the Plan
does not
satisfy
one of
the tests
set forth
in Section
12.4,
the Ad
ministrator
shall
adjust
Excess
Contributions
or, if
the current
year testing
method
is being
used,
the Employer
shall
make contributions
pursu
ant to the
options
set forth
below
or any
combination
thereof.

 

(b)
Corrective
distribution
and/or
recharacterization.
On or before
the close
of the
following
Plan
Year
(or with
respect
to recharacterization
as after-tax
voluntary
Employee
contributions,
on or before
the fifteenth
day of
the third
month
following
the end
of each
Plan
Year),
the Highly
Compensated
Participant
allocated
the largest
amount
of Elective
Deferrals
shall
have
a portion
of such
Elective
Deferrals
(and "income"
allocable
to such
amounts)
distributed
(and/or,
at the
Participant's
election,
recharacterized
as an after-tax
voluntary
Employee
contribution
pursuant
to Section
4.8)
until
the total
amount
of Excess
Contributions
has been
distributed,
or until
the amount
of the
Participant's
Elective
Deferrals
equals
the Elective
Deferrals
of the
Highly
Compensated
Participant
having
the next
largest
amount
of Elective
Deferrals
allocated.
This
process
shall
continue
un til
the total
amount
of Excess
Contributions
has been
distributed.
However,
in the
event
the Plan
permit
s Catch-Up
Contributions,
then
any "HCE"
who is
eligible
to make
Catch-Up
Contributions
pursuant
to Section
12.2(c)
shall
have
any amount
that
would
have
otherwise
been distributed
pursuant
to this
Section
recharacterized
as a Catch-Up
Contribution
(up to the
maximum

catch-up
dollar
limitation).
Any distribution
and/or
recharacterization
of Excess
Contributions
shall
be made
in the
following
order:

    	 

    	 

    

 

(1)
With
respect
to the
distribution
of Excess
Contributions,
such
distribution:

 

(i)
       shall
be made
first
from
unmatched
Elective
Deferrals
used
in the
ADP and,
thereafter,
simultaneously
from
such
Elective
Deferrals
which
are matched
and matching
contributions
which
relate
to such
Elective
Deferrals
(if the
matching
contributions
are used
in the
ADP).
Matching
contributions
which
are not
used
in the
ADP but which
relate
to Elective
Deferrals
that
are distributed
pursuant
to this
Subsection
shall
be forfeited
un less
the related
matching
contributions
are distributed
as Excess
Aggregate
Contributions
pursuant
to Section
12.7;

 

(ii)
shall
be made,
as operationally
determined
by the
Administrator,
from
the Participant's
Pre-Tax
Elective
Deferral
Account
or the
Participant's
Roth
Elective
Deferral
Account,
to the
extent
both
Pre-Tax
Elective
Deferrals
and Roth
Elective
Deferrals
were
made
for the
Plan
Year;

 

(iii)
shall
be adjusted
for "income";
and

 

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

 

(2)
With
respect
to the
recharacterization
of Excess
Contributions
as after
-tax
voluntary
Employee
contributions
pursuant
to

(a)
above,
such
recharacterized
amounts:

 

(i)
       shall
be deemed
to have
occurred
on the
date
on which
the last
of those
Highly
Compensated
Participants
with
Excess
Contributions
to be recharacterized
is notified
of the recharacterization
and the
tax consequences
of such
recharacterization;

 

(ii)
shall
not exceed
the amount
of Elective
Deferrals
on behalf
of any
Highly
Compensated
Participant
for any
Plan

Year;

 

(iii)
shall
be treated
as after-tax
voluntary
Employee
contributions
for purposes
of Code
§401(a)(4)
and Regulation

§1.401(k)-1(b).
However,
for purposes
of Sections
4.3(f)
and 9.2
(top-heavy
rules),
recharacterized
Excess
Contributions
continue
to be treated
as Employer
contributions
that
are Elective
Deferrals.
Excess
Contributions
(and
"income"
attributable
to such
amounts)
recharacterized
as after-tax
voluntary
Employee
contributions
shall
continue
to be nonforfeitable
and subject
to the
same distribution
rules
provided
for in
Section
12.2(d);
and

 

(iv)
are not
permitted
if the
amount
recharacterized
plus
after-tax
voluntary
Employee
contributions
actually
made
by such
Highly
Compensated
Participant
exceed
the maximum
amount
of after-tax
voluntary
Employee
contributions
(determined
prior
to application
of Section
12.6)
that
such
Highly
Compensated
Participant
is permitted
to make
under
the
Plan
in the
absence
of recharacterization.

 

(3)
Any distribution
and/or
recharacterization
of less
than
the entire
amount
of Exces
s Contributions
shall
be treated
as a pro
rata
distribution
and/or
recharacterization
of Excess
Contributions
and "income."

 

(4)
For the
purpose
of this
Section,
"income"
means the
income
or losses
allocable
to Excess
Contributions,
which
amount
shall
be determined
and allocated,
at the
discretion
of the
Administrator,
using
any of
the methods
set forth
below.
The method
must
be used
consistently
for all
Participants
and for
all corrective
distributions
under
the Plan
for the
Plan
Year.
However,
effective
for Plan
Years
after
December
31, 2007,
the Administrator
will not
calculate
and distribute
"income"
for the
period
between
the end
of the
Plan
Year in
which
the Excess
Contribution
and prior
to the
date
of the
distribution
(the
"gap
period").

 

(i)       Method
of allocating
"income."
The Administrator
may use
any reasonable
method
for computing
the "income"
allocable
to Excess
Contributions,
provided
that
the method
does not
violate
Code
§401(a)(4),
is used
consistently
for

all
Participants
and for
all corrective
distributions
under the
Plan
for the
Plan
Year,
and is
used
by the
Plan
for allocatin
g "income"
to Participant's
Accounts.
A Plan
will not
fail
to use
a reasonable
method
for computing
the "income"
allocable
to Excess
Contributions
merely
because
the "income"
allocable
to Excess
Contributions
is determined
on a date
that
is no
more than
seven
(7) days
before
the distribution.

 

(ii)
Alternative
method
of allocating
Plan
Year
income.
The Administrator
may allocate
"income"
to Excess
Contributions
for the
Plan
Year by
multiplying
the "income"
for the
Plan
Year allocable
to the
Elective
Deferrals
and other
amounts
taken
into
account
under this
Section
(including
contributions
made
for the
Plan
Year),
by a fraction,
the

numerator
of which
is the
Excess
Contributions
for the
Employee
for the
Plan
Year,
and the
denominator
of which
is the
sum of
the:

 

(A)
Account
balance
attributable
to Elective
Deferrals
and other
contributions
taken
into
account
under
this

Section
as of the
beginning
of the
Plan
Year,
and

 

(B)
Any additional
amount
of such
contributions
made
for the
Plan Year.

 

(iii)
Safe harbor
method
of allocating
gap period
income.
The Administrator
may use
the safe
harbor
method
in this
paragraph
to determine
"income"
on Excess
Contributions
for the
"gap
period."
Under
this
safe harbor
method,

"income"
on Excess
Contributions
for the
"gap
period"
is equal
to ten
percent
(10%) of
the "income"
allocable
to Excess

Contributions
for the
Plan
Year that
would
be determined
under paragraph
(ii)
above,
multiplied
by the
number
of calendar
months
that
have
elapsed
since the
end of
the Plan
Year.
For purposes
of calculating
the number
of calendar

    	 

    	 

    

 

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

 

(iv)
Alternative
method
for allocating
Plan
Year and
gap period
income.
The Administrator
may determine
the allocable
gain
or loss
for the
aggregate
of the
Plan
Year and
the "gap
period"
by applying
the alternative
method
provided
by paragraph
(ii)
above
to this
aggregate
period.
This
is accomplished
by substituting
the "income"
for the
Plan
Year
and the
"gap
period"
for the
"income"
for the
Plan
Year and
by substituting
the contributions
taken
into
account
under this
Section
for the
Plan
Year and
the "gap
period"
for the
contributions
taken
into
account
under
this
Section
for the
Plan
Year in
determining
the fraction
that
is multiplied
by that
"income."

 

(5)
Excess
Contributions
shall
be treated
as Employer
contributions
for purposes
of Code
§§404
and 415
even
if distributed
from
the Plan.

 

(c)
Corrective
contributions.
 Notwithstanding
the above,
if the
current
year testing
method
is used,
then
within
twelve
(12) months
after
the end
of the
Plan
Year,
the Employer
may make a special
Qu alified
Nonelective
Contribution
or Qualified
Matching
Contribution
in accordance
with
one of
the following
provisions
which
contribution
shall
be allocated
to the
Qualifi
ed Nonelective
Contribution
Account
or Qualified
Matching
Contribution
Account
of eac
h Nonhighly
Compensated
Participant
eligible
to share
in the
allocation
in accordance
with
such provision.
If the
prior
year testing
method
is used,
then
a Quali
fied
Nonelective
Contribution
and a Qualified
Matching
Contribution
may not
be made
to correct
the
tests
set forth
in Section
12.4.
The Employer
shall
provide
the Administrator
with
written
notification
of the
amount
of the
contribution
being
made and
to wh ich
provision
it relates.

 

(1)
A Qualified
Nonelective
Contribution
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.4.
Such contribution
shall
be allocated
in the
same proportion
that each
Nonhighly
Compensated
Participant's
414(s)
Compensation
for the
year bears
to the
total
414(s)
Compensation
of all
Nonhighly
Compensated
Participants
for such
year.

 

(2)
A Qualified
Nonelective
Contribution
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.4.
Such contribution
shall
be allocated
in the
same proportion
that each
Nonhighly
Compensated
Participant's
414(s)
Compensation
for the
year bears
to the
total
414(s)
Compensation
of all
Nonhighly
Compensated
Participants
for such
year.
However,
for purposes
of this
contribution,
Nonhighly
Compensated
Participants
who are
not employed
at the
end of the
Plan
Year and,
if this
is a standardized
Plan,
who
have
not completed
more
than
500 Hours
of Service
(or three
(3) consecutive
calendar
months
if the
elapsed
time method
is selected
in the
Adoption
Agreement)
during
such Plan
Year,
shall
not be eligible
to share
in the
allocation
and shall
be disregarded.

 

(3)
A Qualified
Nonelective
Contribution
may be
made
on behalf
of Nonhighly
Compensated
Par ticipants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.4.
Such contribution
shall
be allocated
in equal
amounts
(per capita).

 

(4)
A Qualified
Nonelective
Contribution
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.4.
Such contribution
shall
be allocated
in equal
amounts
(per capita).
However,
for purposes
of this
contribution,
Nonhighly
Compensated
Participants
who are
not employed
at the
end of
the Plan
Year
and, if this
is a standardized
Plan,
who have
not completed
more
than
500 Hours
of Service
(or three
(3) consecutive
calendar
months
if the
elapsed
time
method
is selected
in the
Adoption
Agreement)
during
such
Plan
Year,

shall
not be
eligible
to share
in the
allocation
and shall
be disregarded.

 

(5)
A Qualified
Nonelective
Contribution
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.4.
Such contribution
shall
be allocated
to the
Qualified
Nonel
ective
Contribution
Account
of the
Nonhighly
Compensated
Participant
having
the lowest
414(s)
Compensation,
until
the applicable
ADP test
set forth
in Section
12.4
is satisfied,
or until
such
Nonhighly
Compensated
Participant
has received
the lesser
of

the
maximum
"annual
addition"
pursuant
to Section
4.4 or the
maximum
that may
be taken
into
account
in the
ADP test
pursuant
to Section
12.4(g)
(Targeted
Contributions).
This
process shall
continue
until
one of the
tests
set forth
in Section

12.4
is satisfied.

 

(6)
A Qualified
Nonelective
Contribution
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.4.
Such contribution
shall
be allocated
to the
Qualified
Nonelective
Contribution
Account
of the Nonhighly
Compensated
Participant
having
the lowest
414(s)
Compensation,
until
one of
the tests
set forth
in Section
12.4
is satisfied,
or until
such
Nonhighly
Compensated
Participant
has receive
d the lesser
of the maximum
"annual
addition"
pursuant
to Section
4.4 or the
maximum
that may
be taken
into
account
in the
ADP test

pursuant
to Section
12.4(g)
(Targeted
Contributions).
This
process
shall
continue
until
one of
the tests
set forth
in Sectio
n

12.4
is satisfied.
However,
for purposes
of this
contribution,
Nonhighly
Compensated
Participants
who are
not employed
at the
end of
the Plan
Year and,
if this
is a standardized
Plan,
who have
not completed
more than
500 Hours
of Service
(or three
(3) consecutive
calendar
months
if the
elapsed
time method
is selected
in the
Adoption
Agreement)
during
such
Plan
Year,
shall
not be
eligible
to share
in the
allocation
and shall
be disregarded.

 

(7)
A Qualified
Matching
Contribution
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.4.
Such contribution
shall
be allocated
to the
Qualified
Matching
Contribution
Account
of each Nonhighly
Compensated
Participant
in the
same proportion
that
each Nonhighly
Compensated
Participant's
Elective
Deferrals
for the
year bears
to the
total
Elective
Deferrals
of all
Nonhighly
Compensated
Participants
..

    	 

    	 

    

 

 

(8)
A Qualified
Matching
Contribution
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.4.
Such contribution
shall
be allocated
to the
Qualified
Matching
Contribution
Account
of each Nonhighly
Compensated
Participant
in the
same proportion
that
each Nonhighly
Compensated
Participant's
Elective
Deferrals
for the
year bears
to the
total
Electiv
e Deferrals
of all
Nonhighly
Compensated
Participants.
However,
for purposes
of this
contribution,
Nonhighly
Compensated
Participants
who are
not employed
at the
end of
the

Plan
Year
and, if this
is a standardized
Plan,
who have
not completed
more
than
500 Hours
of Service
(or three
(3)

consecutive
calendar
months
if the
elapsed
time
method
is selected
in the
Adoption
Agreement)
during
such
Plan Year,
shall
not be
eligible
to share
in the
allocation
and shall
be disregarded.

 

(d)
Excise
tax after
2 1/2 months
(or 6 months).
Any Excess
Contributions
(and
"income")
which
are distributed
after
2 1/2 months,
or 6 months
with
respect
to a Plan
Year in
which
the EACA
requirements
of Section
12.2 are
met,
after
the end
of the
Plan
Year
are subject
to a ten
percent
(10%)
Employer
excise
tax imposed
by Code
§4979.

 

12.6
ACTUAL
CONTRIBUTION
PERCENTAGE
TESTS

 

(a)
ACP test.
Except
as otherwise
provided
herein,
this
Subsection
applies
if the
prior
year testing
method
is elected
in the
Adoption
Agreement.
The "Actual
Contribution
Percentage"
(hereinafter
ACP)
for Participants
who are
Highly
Compensated
Employees
(hereinafter
"HCEs")
for each
Plan
Year
and the
prior
year's
ACP for
Participants
who were
Nonhighly
Compensated
Employees
(hereinafter
"NHCEs")
for the
prior
Plan
Year must
satisfy
one of
the following
tests:

 

(1)
The ACP
for a Plan
Year for
Participants
who are
"HCEs"
for the
Plan
Year
shall
not exceed
the prior
year's
ACP for

Participants
who were
"NHCEs"
for the
prior
Plan
Year
multiplied
by 1.25;
or

 

(2)
The ACP
for a Plan
Year for
Participants
who are
"HCEs"
for the
Plan
Year
shall
not exceed
the prior
year's
ACP for
Participants
who were
"NHCEs"
for the
prior
Plan
Year
multiplied
by 2.0,
provided
that
the ACP
for Participants
who are
"HCEs"
does not
exceed
the prior
year's
ACP for
Participants
who were
"NHCEs"
in the
prior
Plan
Year by
more than

two
(2) percentage
points.

 

Notwithstanding
the above,
for purposes
of applying
the foregoing
tests
with
respect
to the
first
Plan
Year (as
defined
in Regulation
§1.401(m)-2(c)(2))
in which
the Plan
permits
any Participant
to make
"Employee
contributions",
provides
for "matching
contributions",
or both,
the ACP
for the
prior
year's
"NHCEs"
shall
be the
greater
of three
percent
(3%) or
the current
Plan
Year's
ACP
for these
Participants.
However,
the provisions
of this
paragraph
may not
be used
if the
Plan
is a successor
plan
or is otherwise
prohibited
from
using
such
provisions
pursu
ant to
Regulation
§1.401(m)-2(c)(2).

 

(b)
Current
year testing
method.
Notwithstanding
the preceding,
if the
current
year testing
method
is elected
in the
Adoption
Agreement
or if no
election
is made
in the
Adoption
Agreement,
and for
any Plan
Year
for which
the Employer
has either
reserved
the right
to make
a nonelective
"ADP
test
safe
harbor
contribution"
pursuant
to Section
12.8
or amended
the Plan
to make
an "ADP
test
safe
harbor
contribution,"
the ACP
tests
in (a)(1)
and (a)(2)
above
shall
be applied
by comparing
the curre
nt Plan
Year's
ACP for
Participants
who are
"HCEs"
with
the current
Plan
Year's
ACP (rather
than
the prior
Plan
Year's
ACP)
for Participants
who are
"NHCEs"
for the
current
Plan
Year.
Once
made,
the Employer
can elect
prior
year testing
for a Plan
Year
only
if the
Plan
has used
current
year testing
for each
of the
preceding
5 Plan
Years
(or if
lesser,
the number
of Plan
Years
the Plan
has been
in existence)
or if,
as a result
of a merger
or acquisition
described
in Code
§410(b)(6)(C)(i),
the Employer
maintains
both
a plan
using
prior
year testing
and a plan
using
current
year testing
and the
change
is made
within
the transition
period
described
in Code
§410(b)(6)(C)(ii).

 

(c)
Determination
of "HCEs"
and "NHCEs."
A Participant
is an "HCE"
for a particular
Plan
Year if
the Participant
meets
the definition
of an "HCE"
in effect
for that
Plan
Year.
Similarly,
a Participant
is an "NHCE"
for a particular
Plan
Year
if the
Participant
does not
meet the
definition
of an "HCE"
in effect
for that
Plan
Year.

 

(d)
Calculation
of ACP.
For the
purposes
of this
Section
and Section
12.7,
ACP for
a specific
group
of Participants
for a Plan
Year means
the average
of the "contribution
percentages"
(calculated
separately
for each
Partic
ipant
in such
group).
For this
purpose,
"contribution
percentage"
means the
ratio
(expressed
as a percentage)
of the Participant's
"contribution
percentage
amounts"
to the
Participant's
414(s)
Compensation.
The actual
contribution
ratio
for each
Participant
and the
ACP for each
group,
shall
be calculated
to the
nearest
one-hundredth
of one
percent
of the
Participant's
414(s)
Compensation.

 

(e)
Amounts
included
in ACP.
"Contribution
percentage
amounts"
means the
sum of
(1) after-tax
voluntary
Employee
contributions,
(2) Employer
"matching
contributions"
made
pursuant
to Section
12.1(a)(2)
(including
Qualified
Matching
Contributions
to the
extent
such
Qualified
Matching
Contributions
are not
used
to satisfy
the tests
set forth
in Section
12.4),
(3) Excess
Contributions
recharacterized
as nondeductible
voluntary
Employee
contributions
pursuant
to Section
12.5,
and (4)
Qualified
Nonelective
Contributions,
to the
extent
the Qualified
Nonelective
Contributions
are not
used
to satisfy
the tests
set forth
in Section
12.4 and
do not
exceed
the limitations
of the
targeted
contribution
limitation
of Section
12.4(g).
However,

"contribution
percentage
amounts"
shall
not include
"matching
contributions"
that
are forfeited
either
to correct
Excess
Aggregate
Contributions
or due
to Code
§401(a)(4)
and the
Regulations
thereunder
because
the contributions
to which
they
relate
are Excess
Deferrals,
Excess
Contributions,
or Excess
Aggregate
Contributions.
In addition,
"contribution
percentage
amounts"
may include
Elective
Deferrals
provided
the ADP
test
in Section
12.4 is
met before
the Elective
Deferrals
are used
in the
ACP tes
t and continues
to be met
following
the exclusion
of those
Elective
Deferrals
that
are used
to meet
the ACP
test.

 

(f)
Participants
taken
into
account.
For purposes
of this
Section
and Section
12.7,
a Highly
Compensated
Participant
and a

Nonhighly
Compensated
Participant
shall
include
any Employee
eligible
to have
"m atching
contributions"
made
pursuant
to

    	 

    	 

    

 

Section
12.1(a)(2)
(whether
or not
a salary
deferral
election
was made
or suspended
pursuant
to the
Plan)
allocated
to such
Participant's
Account
for the
Plan
Year or
to make
after-tax
voluntary
Employee
contributions
pursuant
to Section
4.8 (whether
or not
after-tax
voluntary
Employee
contributions
are made)
allocated
to the
Participant's
Account
for the
Plan
Year.

 

(g)
Allocations
taken into
account.
For purposes
of determining
the ACP
test,
"Employee
contributions"
are considered
to have
been made
in the Plan
Year
in which
contributed
to the
Plan.
"Matching
contributions"
and Qualified
Nonelective
Contributions
will be
considered
made
for a Plan
Year
if made
no later
than
the end
of the
twelve
(12) month
period
beginning
on the
date
after
the close
of the
Plan
Year.
Excess
Contributions
recharacterized
as after
-tax
voluntary
Employee
contributions
pursuant
to Section
12.5(b)(2)
are taken
into account
in the
ACP for
the Plan
Year in
which the
contribution
w ould
have
been received
in cash
if there
had not
been a salary
deferral
election.
A "matching
contribution"
will be taken
into account
in th e ACP
for
a Plan
Year only
if (1) it is made
on account
of the
Participant's
nondeductible
voluntary
"employee
contr
ibutions"
or on account
of a Participant's
Elective
Deferrals
under a plan
maintained
by the
Employer
for that
Plan
Year and
(2) it is allocated
to the
Participant's
Account
as of any
date
within
that
Plan
Year.

 

(h)
Definition
of "matching
contribution"
and "employee
contribution."
 For purposes
of this
Section
and Section
12.7,
"matching
contribution"
means
an Employer
contribution
made
to the
Plan,
or to a contract
described
in Code
§403(b),
on behalf
of a Participant
on account
of a nondeductible
voluntary
"employee
contribution"
made
by such
Participant,
or on account
of a Participant's
elective
deferrals
under
a plan
maintained
by the
Employer.
"Employee
contribution"
mea ns
any contribution
(other
than
Roth
Elective
Deferrals)
made
to the
Plan
by or on
behalf
of a Participant
that
is included
in the
Participant's
gross
i ncome
in the
year
in which
made
and that
is maintained
under
separate
account
to which
earnings
and loss
es are
allocated.

 

(i)       Targeted
matching
contributions.
Notwithstanding
the preceding,
for Plan
Years
beginning
in 2006
(or if
earlier,
the date
the
final
401(m)
Regulations
are effective
with
respect
to the
Plan),
a "matching
contribution"
with
respect
to an Elective
Deferral
for a year
is not
taken
into
account
in determining
the ACP
for "NHCEs"
to the
extent
it exceeds
the greatest
of:

 

(1)
five
percent
(5%) of
the Participant's
414(s)
Compensation
for the
year;
(2) the
Employee's
Elective
Deferrals
for the
year;
or

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

 

For
purposes
of this
Subsection,
the Plan's
"representative
m atching
rate"
is the
lowest
"matching
rate"
for any
eligible
"NHCE"
among
a group
of "NHCEs"
that
consists
of half
of all
eligible
"NHCEs"
in the
Plan
for the
Plan
Year
who make
Elective
Deferrals
for the
Plan
Year (or,
if greater,
the lowest
"matching
rat e"
for all
eligible
"NHCEs"
in the
Plan
who are
employed
by the
Employer
on the
last
day of
the Plan
Year
and who
make
Elective
Deferrals
for the
Plan
Year).

 

For
purposes
of this
Subsection,
the "matching
rate"
for an
Employee
generally
is the
"matching
contributions"
made
for such
Employee
divided
by the
Employee's
Elective
Deferrals
for the
year.
If the
"matching
rate"
is not
the same
for all
level
s of Elective
Deferrals
for an
Employee,
the Employee's
"matching
rate"
is determined
assuming
that
an Employee's
Elective
Deferrals
are equal
to six
percent
(6%) of
414(s)
Compensation.

 

If
the Plan
provides
a match
with
respect
to the
sum of the
Employee's
after
-tax
voluntary
Employee
contributions
and Elective
Deferrals,
then
for purposes
of this
Subsection,
that
sum is substituted
for the
amount
of the
Employee's
Elective
Deferrals
and Employees
who make
either
after-tax
voluntary
Employee
contributions
or Elective
Deferrals
are taken
int o account
in determining
the Plan's
"representative
matching
rate."
Similarly,
if the
Plan
provides
a match
with
respect
to the
Employee's
after-tax
voluntary
Employee
contributions,
but not
Elective
Deferrals,
then
for purposes
of this
Subsection,
the Employee's
after-tax
voluntary
Employee
contributions
are substituted
for the
amount
of the
Employee's
Elective
Deferrals
and

Employees
who make
after-tax
voluntary
Employee
contributions
are taken
into
account
in determining
the Plan's
"representative

matching
rate."

 

(j)       Aggregation
with
other
plans.
In the
event
that
this
Plan
satisfies
the requirements
of Code
§401(a)(4),
401(m),
or 410(b)
only
if aggregated
with
one or
more
other
plans,
or if one
or more
other
plans
satisfy
the requirements
of such
sections
of the
Code
only
if aggregated
with
this
Plan,
then
this
Section
shall
be applied
by determining
the ACP
of Employees
as if all
such
plans
were
a single
plan.
If more
than
ten percent
(10%) of
the Employer's
"NHCEs"
are involved
in a plan
cov erage
change
as

defined
in Regulation
§1.401(m)-2(c)(4),
then
any adjustments
to the
"NHCE's"
ACP for
the prior
year will
be made
in accordance
with
such Regulations,
if the Employer
has elected
in the
Adoption
Agreement
to use the
prior
year testing
metho
d. Plans
may be
aggregated
in order
to satisfy
Code
§401(m)
only
if they
have the
same
Plan
Year and
use the
same ACP
testing
method.

 

(k)
ACP if
multiple
plans.
For the
purposes
of this
Section,
if an HCE
is a Participant
under two
(2) or
more
plans
(other
than
an employee
stock
ownership
plan
as defined
in Code
§4975(e)(7))
which
are maintained
by the
Employer
or an Affiliated
Employer
to which
"matching
contributions,"
nondeductible
voluntary
Employee
contributions,
or both,
are made,
all such
contributions
on behalf
of such
HCE shall
be aggregated
for purposes
of determining
such
HCE's
actual
contribution
ratio.
However,
if the
plans
have
different
plan
years,
then
for pur
poses
of Plan
Years
beginning
prior
to 2006
(or if
earlier,
the date
the final
401(m)
Regulations
are effective
with
respect
to the
Plan),
this
paragraph
shall
be applied
by treating
all plans
endin
g with
or within
the same
calendar
year as
a single
plan.
Notwithstanding
the foregoing,
certain
plans
shall
be treated
as separate
if mandatorily
disaggregated
under
Regulations
under Code
§401(m).

 

(l)
       Disaggregation
and otherwise
excludable
Employees.
 Notwithstanding
anything
in this
Section
to the
contrary,
the provisions
of this
Section
and Section
12.7
may be
applied
separately
(or will
be applied
separately
to the
extent
required
b y

    	 

    	 

    

 

Regulations)
to each
"plan"
within
the meaning
of Regulation
§1.401(m)-5.
Furthermore,
the provisions
of Code
§401(m)(5)(C)
may
be used
to exclude
from
consideration
all Nonhighly
Compensated
Employees
who have
not satisfied
the minimum
age and
service
requirements
of Code
§410(a)(1)(A).
For purposes
of applying
this
provision,
the Administrator
may use
any effective

date
of participation
that
is permitted
under Code
§410(a)
provided
such
date
is applied
on a consistent
and uniform
basis
to all

Participants.

 

(m)
"HCEs"
as sole
Eligible
Employees.
If, for
the applicable
year for
determining
the ACP
of the
"NH CEs"
for a Plan
Year,
there
are no
eligible
"NHCEs,"
then
the Plan
is deemed
to satisfy
the ACP
test
for the
Plan
Year.

 

12.7
ADJUSTMENT
TO ACTUAL
CONTRIBUTION
PERCENTAGE
TESTS

 

(a)
Authority
to correct.
In the
event
the Plan
does not
satisfy
one of
the tests
set forth
in Section
12.6,
the Administrator
shall
adjust
Excess
Aggregate
Contributions
or, if
the current
year testing
method
is used,
the Employer
shall
make contributions
pursuant
to the
options
set forth
below
or any
combination
thereof.

 

(b)
Corrective
distribution
or Forfeiture.
On or before
the close
of the
following
Plan
Year,
the Highly
Compensated
Participant
having
the largest
allocation
of "contribution
percentage
amounts"
shal l have
a portion
of such
"contribution
percentage
amounts"
(and
"income"
allocable
to such
amounts)
distributed
or, if
non-Vested,
Forfeited
(including
"income"
allocable
to such
Forfeitures)
until
the total
amount
of Excess
Aggregate
Contributions
has been
distributed,
or until
the amount
of the
Participant's
"contribution
percentage
amounts"
equals
the "contribution
percentage
amounts"
of the
Highly
Compensated
Participant
having
the next
largest
amount
of "contribution
percentage
amounts."
This
process
s hall
continue
until
the total
amount
of Excess
Aggregate
Contributions
has been
distributed
or forfeited.
Any distribution
and/or
Forfeiture
of "contributi
on percentage
amounts"
shall
be made
in the
following
order:

 

(1)
Employer
"matching
contributions"
distributed
and/or
forfeited
pursuant
to Section
12.5(b)(1);

 

(2)
After-tax
voluntary
Employee
contributions
including
Excess
Contributions
recharacterized
as after-tax
voluntary

Employee
contributions
pursuant
to Section
12.5(b)(2);

 

(3)
Unmatched
Elective
Deferrals
used
in the
ACP and,
thereafter,
simultaneously
from
such
Elective
Deferrals
used
in the
ACP which
are matched
and "matching
contributions"
which
relate
to such
Elective
Deferrals
(if the
"matching
contributions"
are used
in the
ACP).
"Matching
contributions"
which
are not
used
in the
ACP but
which
relate
to Elective
Deferrals
that
are distributed
to Highly
Compensated
Participants
pursuant
to this
Subsection
shall
be forfeited
unless
the related
"matching
contributions"
are distributed
as Excess
Aggregate
Contributions
pursuant
to this
Subsection;

 

(4)
To the
extent
Elective
Deferrals
are distributed
pursuant
to the
preceding
p aragraph,
then
the distribution
shall
be made,
as operationally
determined
by the
Administrator,
from
the Participant's
Pre-Tax
Elective
Deferral
Account
or the
Participant's
Roth
Elective
Deferral
Account,
to the
extent
both
Pre-Tax
Elective
Deferrals
and Roth
Elective
Deferrals
were
made for
the Plan
Year,
to the
extent
both
Pre-Tax
Elective
Deferrals
and Roth
Elective
Deferrals
were
made for
the Plan
Year;
and

 

(5)
Remaining
Employer
"matching
contributions."

 

(c)
Source
of corrective
distribution
or Forfeiture.
 Any distribution
or Forfeiture
of less
than
the entire
amount
of Excess
Aggregate
Contributions
(and
"income")
shall
be treated
as a pro
rata
distribution
of Excess
Aggregate
Contributions
and "income."
Distribution
of Excess
Aggregate
Contributions
shall
be designated
by the
Employer
as a distribution
of Excess
Aggregate
Contributions
(and
"income").
Forfeitures
of Excess
Aggregate
Contributions
shall
be treated
in accordance
with
Section
4.3.
However,
no such
Forfeiture
may be allocated
to a Highly
Compensated
Participant
whose
contributions
are reduced
pursuant
to this
Section.

 

(d)
Determination
of income
or loss.
For the
purpose
of this
Section,
"income"
means
the income
or losses allocable
to Excess
Aggregate
Contributions,
which
amount
shall
be determined
and allocated,
at the
discretion
of the
Administrator,
using
any
of the methods
set forth
in Section
12.5(b)(4)
with
respect
to the
calculation
of "income"
for Excess
Contributions
(applied
by substituting
Excess Contributions
with
Excess
Aggregate
Contributions
and by
substituting
amounts
taken into
account
under
th e ACP
test for
amounts
taken into
account
under the
ADP test
in Section
12.4).
However,
effective
with
respect
to Plan
Years
beginning
after December
31, 2007
the Administrator
will not
calculate
and distribute
"income"
for the
period
between
the end
of the
Plan
Year
in which
the Excess
Aggregate
Contribution
and prior
to the
date
of the
distribution
(the
"gap
period").

 

(e)
Treatment
of excess
amounts.
Excess
Aggregate
Contributions
attributable
to amounts
other
than
nondeductible
voluntary
Employee
contributions,
including
forfeited
"matching
contributions,"
shall
be treated
as Employer
contributions
for purposes
of Code
§§404
and 415
even
if distributed
from
the Plan.

 

(f)
Ordering
of tests.
The determination
of the
amount
of Excess
Aggregate
Contributions
with respect
to any
Plan
Year shall
be made
after
first determining
the Excess
Contributions,
if any,
to be treated
as nondeductible
voluntary
Employee
contribut
ions due
to recharacterization
for the
Plan
Year
of any
other
qualified
cash
or deferred
arrangement
(as defined
in Code
§401(k))
maintained
by the
Employer
that
ends
with or
within
the Plan
Year or
which are
treated
as after
-tax
voluntary
Employee
contributions
due to recharacterization
pursuant
to Section
12.5.

 

(g)
Corrective
contributions.
 Notwithstanding
the above,
if the
current
year testing
method
is being
used, then
within
twelve
(12) months
after
the end
of the
Plan
Year,
the Employer
may make a special
Qualified
N onelective
Contribution
or

    	 

    	 

    

 

Employer
matching
contribution
in accordance
with
one of
the following
provisions
which
contribution
shall
be allocated
to th e Qualified
Nonelective
Contribution
Account
or with
respect
to Employer
"matching
contributions,"
to th e Participant's
Account
of each
Nonhighly
Compensated
Participant
eligible
to share
in the
allocation
in accordance
with
such
provision.
If the
prior
ye ar testing
method
is used,
then
a Qualified
Nonelective
Contribution
or an Employer
"matching
contributi
on" may
not be
made
to correct
the tests
set forth
in Section
12.6.
The Employer
shall
provide
the Administrator
with
written
notification
of the
am ount
of the
contribution
being
made
and to
which
provision
it relates.

 

(1)
A Qualified
Nonelective
Contribution
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.6.
Such contribution
shall
be allocated
in the
same proportion
that each
Nonhighly
Compensated
Participant's
414(s)
Compensation
for the
year bears
to the
total
414(s)
Compensation
of all
Nonhighly
Compensated
Participants
for such
year.

 

(2)
A Qualified
Nonelective
Contribution
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.6.
Such contribution
shall
be allocated
in the
same proportion
that
each Nonhighly
Compensated
Participant's
414(s)
Compensation
for the
year bears
to the
total
414(s)
Compensation
of all
Nonhighly
Compensated
Participants
for such
year.
However,
for purposes
of this
contribution,
Nonhighly
Compensated
Participants
who are
not employed
at the
end of
the Plan
Year
and, if
this
is a standardized
Plan,
who have
not completed
more
than
500 Hours
of Service
(or three
(3) consecutive
calendar
months
if the
elapsed
time method
is selected
in the
Adoption
Agreement)
during
such Plan
Year,
shall
not be
eligible
to share
in th e allocation
and shall
be disregarded.

 

(3)
A Qualified
Nonelective
Contribution
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.6.
Such contribution
shall
be allocated
in equal
amounts
(per capita).

 

(4)
A Qualified
Nonelective
Contribution
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.6.
Such contribution
shall be
allocated
in equal
amounts
(per capita).
However,
for purposes
of this
contribution,
Nonhighly
Compensated
Participants
who are
not employed
at the
end of the
Plan
Year
and, if this
is a standardized
Plan,
who have
not completed
more
than
500 Hours
of Service
(or three
(3) consecutive
calendar
months
if the
elapsed
time
method
is selected
in the
Adoption
Agreement)
during
such
Plan
Year,

shall
not be
eligible
to share
in the
allocation
and shall
be disregarded.

 

(5)
A Qualified
Nonelective
Contribution
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the
tests
set
forth
in Section
12.6.
Such contribution
shall
be alloc
ated
to the
Qualified
Nonelective
Contribution
Account
of the
Nonhighly
Compensated
Participant
having
the lowest
414(s)
Compensation,
until
the applicable
test
set forth
in Section
12.6 is
satisfied,
or until
such Nonhighly
Compensated
Participant
has rec
eived
the lesser
of the
maximum
"annual
addition"
pursuant
to Section
4.4 or
the maximum
that
may be
taken
into
account
in the
ACP test

pursuant
to Section
12.6(i)
(Targeted
Contributions).
This
process
shall
continue
until
one of
the tests
set forth
in Se ction

12.6
is satisfied.

 

(6)
A Qualified
Nonelective
Contribution
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.6.
Such contribution
shall
be allocated
to the
Qualified
Nonelective
Contribution
Account
of the
Nonhighly
Compensated
Participant
having
the lowest
414(s)
Compensation,
until
the applicable
test
set forth
in Section
12.6 is
satisfied,
or until
such Nonhighly
Compensated
Participant
has received
t he lesser
of the
maximum
"annual
addition"
pursuant
to Section
4.4 or
the maximum
that
may be
taken
into
account
in the
ACP test

pursuant
to Section
12.6(i)
(Targeted
Contributions).
This
process
shall
continue
until
one of
the tests
set forth
in Section

12.6
is satisfied.
However,
for purposes
of this
contribution,
Nonhighly
Compensated
Employees
who are
not employed
at

the
end of
the Plan
Year and,
if this
is a standardized
Plan,
who have
not completed
more than
500 Hours
of Service
(or three
(3) consecutive
calendar
months
if the
elapsed
time method
is selected
in the
Adoption
Agreement)
during
such
Plan
Year,
shall
not be
eligible
to share
in the
allocation
and shall
be disregarded.

 

(7)
A "matching
contribution"
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.6.
Such contribution
shall
be allocated
on behalf
of each
Nonhighly
Compensated
Participant
in the
same
proportion
that
each Nonhighly
Compensated
Participant's
Elective
Deferrals
for the year
bears
to the total
Elective
Deferrals
of all
Nonhighly
Compensated
Participants.
The Employer
shall
designate,
at the
time the
contribution
is made,
whether
the contribution
made
pursuant
to this provision
shall
be a Qualified
Matching
Contribution
or an Employer
Nonelective
Contribution.

 

(8)
A "matching
contribution"
may be
made
on behalf
of Nonhighly
Compensated
Participants
in an amount
sufficient
to satisfy
one of
the tests
set forth
in Section
12.6.
Such contribution
shall
be allocated
on behalf
of each
Nonhighly
Compensated
Participant
in the
same
proportion
that
each Nonhighly
Compensated
Participant's
Elective
Deferrals
for t he
year
bears
to the
total
Elective
Deferrals
of all
Nonhighly
Compensated
Participants.
The Employer
shall
designate,
at the
time the
contribution
is made,
whether
the contribution
made
pursuant
to this
provision
shall
be a Qualified
Matching
Contribution
or an Employer
Nonelective
Contribution.
However,
for purposes
of this
contribution,
Nonhighly
Compensated
Participants
who are
not employed
at the
end of
the Plan
Year
and, if this
is a standardized
Plan,
who have
not completed
more
than
500 Hours
of Service
(or three
(3) consecutive
calendar
months
if the elapsed
time method
is selected
in the
Adoption
Agreement)
during
such
Plan
Year,
shall
not be
eligible
to share
in the
allocation
and shall
be disregarded.

 

(h)
Excise
tax after
2 1/2 months
(or 6 months).
Any Excess
Aggregate
Contributions
(and
"income")
which
are distributed
after
2 1/2 months,
or 6 months
with
respect
to a Plan
Year in
which
the EACA
requirements
of Section
12.2(b)
are met,
after
the end
of the
Plan
Year shall
be subject
to the ten
percent
(10%)
Employer
excise
tax imposed
by Code
§4979.

    	 

    	 

    

 

 

12.8
401(k)
ADP TEST
SAFE
HARBOR
PROVISIONS

 

(a)
Election
of "ADP
test safe
harbor."
The provisions
of this
Section
will apply
if the Employer
has elected,
in the
401(k)
ADP Test
Safe
Harbor
Provisions
Section
of the
Adoption
Agreement,
to use
the "ADP
test
safe
harbor"
or "AC
P test
safe
harbor."
If the
Employer
has elected
to use
the "ADP
test
safe
harbor"
for a Plan
Year,
then
the provisions
relating
to the
ADP test

described
in Section
12.4
and in
Code
§401(k)(3)
do not
apply
for such
Plan
Year to
the group
of Participants
s ubject
to the
"ADP

test
safe
harbor"
provisions.
In addition,
if the
Employer
has also
elected
to use
the "ACP
test
safe
harbor"
for a Plan
Year , then
the
provisions
relating
to the
ACP test
described
in Section
12.6 and
in Code
§401(m)(2)
do not
apply
for such
Plan Year
to the
group
of Participants
subject
to the
"ACP test
safe
harbor"
provisions.
Furthermore,
to the
extent
any other
provision
of the
Plan is
inconsistent
with the
provisions
of this
Section,
the provisions
of this
Section
will govern.
In ac cordance
with Regulation

§1.401(k)-1(e)(7)
and Regulation
§1.401(m)-1(c)(2),
it is impermissible
for the
Employer
to use the
ADP test
or the
ACP test
for a Plan
Year
in which
it is intended
for the
Plan,
through
its written
terms,
to use the
"ADP
test
safe harbor"
or "ACP
test
safe harbor"
and the
Employer
fails
to satisfy
the requirements
of such
safe harbors
for the
Plan
Year.

 

(b)
Definitions.
For purposes
of this
Section
and Section
12.9,
the following
definitions
apply:

 

(1)
"ACP
test
safe
harbor"
means
the method
described
in Subsection
(d) below
for satisfying
the ACP
test
of Code

§401(m)(2).

 

(2)
"ACP
test
safe
harbor
matching
contributions"
means
"matching
contributions"
described
in Subsection
(d)(1).

 

(3)
"ADP
test
safe
harbor"
means
the method
described
in Subsection
(c) for
satisfying
the ADP
test
of Code
§401(k)(3).
(4) "ADP
test
safe
harbor
contributions"
means
the contributions
made
pursuant
to Subsection
(c)(1) below.

(5)
"Compensation"
means
Compensation
as defined
in Section
1.18,
except,
for purposes
of this
Section,
no dollar
limit,
other
than
the limit
imposed
by Code
§401(a)(17),
applies
to the
Compensation
of a Nonhighly
Compensated
Employee.

 

(6)
"Eligible
Participant"
means
a Participant
who is
eligible
to make
Elective
Deferrals
under
the Plan
for any
part
of the
Plan
Year
(or who
would
be eligible
to make
Elective
Deferrals
but for
a suspension
due to
a hardship
distribution
described
in Section
12.10
or to statutory
limitations,
such
as Code
§§402(g)
and 415)
and who
is not
excluded
as an "eligible
Participant"
in the
401(k)
ADP Test
Safe
Harbor
Provisions
Section
of the
Adoption
Agreement.

 

(7)
"Matching
contributions"
means
contributions
made
by the
Employer
on account
of an "eligible
Participant's"
Elective

Deferrals.

(c)
Satisfying
ADP safe
harbor.
The provisions
of this
Subsection
apply
for purposes
of satisfying
the "ADP
test
safe
harbor."
(1) The
"ADP test
safe
harbor
contribution"
is the
contribution,
elected
by the
Employer
in the
401(k)
ADP Test
Safe
Harbor

Provisions
Section
of the
Adoption
Agreement,
to be used
to satisfy
the "ADP
test
safe
harbor."
However,
if no contribution

is
elected
in the
Adoption
Agreement,
the Employer
will contribute
to the
Plan
for the
Plan
Year
a "basic
matching
contribution"
on behalf
of each
Eligible
Employee.
The "basic
matching
contribution"
is equal
to (i)
one hundred
percent
(100%)
of the
amount
of an "eligible
Participant's"
Elective
Deferrals
that
do not
exceed
three
percent
(3%) of
the Participant's
"Compensation"
for the
Plan Year,
plus
(ii)
fifty
percent
(50%)
of the
amount
of the
Participant's
Elective
Deferrals
that
exceed
three
percent
(3%) of
the Participant's
"Compensation"
but do
not exceed
five
percent
(5%) of
the Participant's
"Compensation."
However,
if the
contribution
is being
made
pursuant
to a QACA
as described
in Section
12.9,
then
the "basic
matching
contribution"
is equal
to (i)
one hundred
percent
(100%)
of the
amount
of an "eligible
Participant's
" Elective
Deferrals
that
do not
exceed one
percent
(1%)
of the Participant's
"Compensation"
for the
Plan
Year,
plus
(ii)
fifty
percent
(50%) of
the amount
of the
Participant's
Elective
Deferrals
that
exceed one
percent
(1%)
of the
Participant's
"Compensation"
but do
not exceed
six percent
(6%) of
the Participant's
"Compensation."
If pursuant
to this
Section,
the "ADP
test
safe harbor
contribution"
being
made
to the
Plan
(including
a contribution
being
made
pursuant
to a QACA
as described
in Section
12.9)
is a matching
contribution
that
is made
on a basis
other
than
t he Plan
Year,
then
the matching
contributions
must
be contributed
to the
Plan
by the
last
day of
the Plan
Year quarter
immediately
following
the Plan
Year quarter
to which
the contributions
relate.

 

(2)
Except
as provided
in Subsection
(e) below,
for purposes
of the
Plan,
a "basic
matching
contribution"
or an "enhanced
matching
contribution"
will be treated
as a Qualified
Matching
Contribution
and a nonelective
"ADP test
safe
harbor
contribution"
will be
treated
as a Qualified
Nonelective
Contribution.
Accordingly,
"ADP test
safe
harbor
contributions"
will be
fully
Vested
and subject
to the
distribution
restrictions
set forth
in Section
12.2(e)
other
than
on account
of a hardship
(i.e.,
may
generally
not be
distributed
earlier
than
severance
of employment,
death,
Total
and Permanent
Disability,
an event
described
in Code
§401(k)(10),
or, in
case
of a profit
sharing
plan,
the attainment
of age
59 1/2.).
In addition,
such
contributions
must
satisfy
the "ADP
test
safe
harbor"
without
regard
to permitt
ed disparity
under
Code
§401(l).
An "enhanced
matching
contribution"
is a matching
contribution
that,
at rate
of Elective
Deferrals,
is at least
equal
to what
the matching
contribution
would
be if under
the "basic
matching
contribution."

 

(3)
Notwithstanding
the requirement
that
the Employer
make
the "ADP
test
safe
harbor
contribution"
to this
Plan,
if the
Employer
so elects
in the
Adoption
Agreement,
the "ADP
test
safe
harbor
contribution"
will
be made
to the
defined
contribution
plan
indicated
in the
Adoption
Agreement.
However,
such
contributions
will
be made
to this
Plan
unless
(i) each

    	 

    	 

    

 

Employee
eligible
under
this
Plan
is also
eligible
under the
other
plan,
and (ii)
the other
plan
has the
same
Plan
Year as
this

Plan.

 

(4)
Within
a reasonable
period
before
the beginning
of the
Plan
Year (or,
in the
year an
Eligible
Employee
becomes
a Participant,
within
a reasonable
period
before
the Employee
becomes
eligible),
t he Employer
will provide
each "eligible
Participant"
a comprehensive
notice
of the
Participant's
rights
and obligations
under the
Plan,
written
in a manner
calculate
d to be understood
by the
average
Participant.
The determination
of whether
a notice
satisf
ies the
timing
requirement
of this
paragraph
is based
on all
of the
relevant
facts
and circumstances.
However,
the timing
requirement
of the
notice
is deemed
to be
satisfied
if at least
thirty
(30) days,
but not
more than
ninety
(90) days,
before
the begin
ning
of the
Plan
Year,
the Employer
will provide
each
"eligible
Participant"
a comprehensive
notice
of the
Participant's
rights
and obligations
under th
e Plan,
written
in a manner
calculated
to be understood
by the
average
Participant.
However,
if an Employee
becomes
eligible
after
the 90th
day before
the beginning
of the
Plan
Year and
does
not receive
the notice
for that
reason,
the notice
must be
provided
no more
than
ninety
(90) days
before
the Employee
becomes
eligible
but not
later
than
the date
the Em
ployee
becomes
eligible.

 

(5)
In addition
to any
other
election
periods
provided
under the
Plan, each
"eligible
Participant"
may make or
modify
a salary
deferral
election
during
the thirty
(30) day
period
immediately
following
receipt
of the
notice
described
in Subsection
(4) above.
Furthermore,
if the
"ADP test
safe harbor
contribution"
is a "matching
contribution"
each Eligible
Employee
must be
permitted
to elect
sufficient
Elective
Deferrals
to receive
the maximum
amount
of "matching
contributions"
available
to the
Participant
under
the Plan.

 

(d)
Application
of "ACP
test safe
harbor."
The provisions
of this
Subsection
apply
if the
Employer
has elected
to satisfy
the

"ACP
test
safe
harbor."

 

(1)
In addition
to the
"ADP
test
safe
harbor
contributions,"
the Employer
will make
any "matching
contributions"
in accordance
with
elections
made in
the Adoption
Agreement.
Such
additional
"matching
contributi
ons" will
be considered
"ACP
test
safe
harbor
matching
contributions."
"Matching
contributions"
are taken
into
account
for a Plan
Year
purposes
of the
"ACP test
safe
harbor"
in accordance
with the
allocation
and timing
rules
of Regulation
§1.401(m)
-2(a),
which
provides
that
a matching
contribution
will be
taken
into
account
for a Plan
Year only
if (1)
it is made
on account
of the
Participant'
s nondeductible
voluntary
"employee
contributions"
or elective
deferrals
under a plan
maintained
by the
Employer
for that
Plan
Year and
(2) it
is allocated
to the
Participant's
account
as of any
date
within
that
Plan
Year,
and (3)
it is actually
paid
t o the plan
no later
than
twelve
(12) months
after
the close
of the
Plan
Year.

 

(2)
Notwithstanding
any election
in the
Adoption
Agreement
to the
contrary,
an "eligible
Participant's"
Elective
Deferrals
in excess
of six
percent
(6%) of
"Compensation"
may not
be taken
into
account
in applying
"ACP test
safe
harbor
matching
contributions."
In addition,
any portion
of an "ACP
test
safe
harbor
matching
contribution"
attributable
to a discretionary
"matching
contribution"
may not
exceed
four percent
(4%) of
an "eligible
Participant's"
"Compensation."

 

(e)
Application
of ACP
test.
The Plan
is required
to satisfy
the ACP
test
of Code
§401(m)(2),
using
the current
year testing
method,
if the
Plan
permits
after-tax
voluntary
Employee
contributions
or if matching
contributions
that
do not
satisfy
the "ACP
test
safe
harbor"
may be made
to the
Plan.
In such
event,
only
"ADP test
safe harbor
contributions"
or "ACP
test
safe harbor

contributions"
that
exceed
the amount
needed
to satisfy
the "ADP
test
safe
harbor"
or "ACP
test
safe
harbor"
(if the
Employer
has elected
to use
the "ACP
test
safe
harbor")
may be
treated
as Qualified
Nonelective
Contributions
or Qualified
Matching
Contributions
in applying
the ACP
test.
In addition,
in applying
the ACP
test,
elective
contributions
may not
be treated
as "matching
contributions"
under
Code
§401(m)(3).
Furthermore,
in applying
the ACP
test,
the Employer
may operationally
elect
t o disregard
with
respect
to all
"eligible
Participants"
(1) all
"matching
contributions"
if the
Plan
satisfies
the "ACP
test
safe
harbor"
and (2)
"matching
contributions"
that
do not
exceed
four percent
(4%) (3
1/2%
if a QACA)
of each
Participant's
"Compensation"
if the
Plan
satisfies
the "ADP
test
safe
harbor"
using
"matching
contributions"
(the
"basic
matching
contribution"
or the
"enhanced
matching
contribution")
and the
"ACP test
safe
harbor"
is not
satisfied.

 

(f)
Modification
of top-heavy
rules.
The top-heavy
requirements
of Code
§416
and the
Plan
shall
not apply
in any
Plan
Year
in which
the Plan
consists
solely
of a cash or
deferred
arrangement
which
meets
the requirements
of Code
§401(k)(12)
and "matching
contributions"
with
respect
to which
the requirements
of Code
§401(m)(11)
are met.

 

(g)
Plan
Year
requirement.
 Except
as provided
in Regulation
§1.401(k)-3(e),
the Plan
will
fail
to satisfy
the requirements
of Code
§401(k)(12)
and this
Section
for a Plan
Year
unless
such
provisions
remain
in effect
for an
entire
twelve
(12) mo nth
Plan
Year.

 

(h)
Discretionary
safe
harbor
nonelective
contribution.
If the
Employer
has elected
in the
Adoption
Agreement
to either
not use
the 401(k)
safe
harbor
provis
ions of
this
Section
or to utilize
the "maybe"
election
with
respect
to the
nonelective
"ADP
test
safe
harbor
contribution,"
then
the Employer
may elect
to utilize
the "ADP
test
safe
harbor"
provisions
for a Plan
Year
after
the Plan
Year
has commenced
in accordance
with
the provisions
of this
Subsection.
In order
to utilize
this
Subsection,
the Employer
must
provide
a notice
in accordance
with
Section
12.8(c)(4)
above,
except
that
the notice
must
provide
that
the Employer
may provide
the nonelective
"ADP
test safe
harbor
contribution"
and that
a supplemental
notice
will be
provided
at least
thirty
(30)

days
prior
to the
last
day of
the Plan
Year
if the
Employer
decides
to make
the nonelective
"ADP
test
safe harbor
contributio
n". In
order
to implement
the 401(k)
safe harbor
provisions
of this
Section
for the
Plan
Year,
the Employer
must (1)
amend
the

Adoption
Agreement
to provide
for the
nonelective
"ADP test
safe
harbor
contribution"
and,
(2) provide
a supplemental
notice
to

Participants
indicating
its intention
to provide
such
nonelective
"ADP
test
safe
harbor
contribution".
The supplemental
notice

indicating
the Employer's
intention
to make
the nonelective
"ADP
test
safe
harbor
contribution"
must
be provided
no later
tha n thirty
(30) days
prior
to the
last
day of the
Plan
Year for
the Plan
in order
for the
provisions
of this
Section
to apply.

    	 

    	 

    

 

 

(i)
       Elimination
of safe
harbor
contributions
or matching
contributions.
 The Employer
may amend
the Plan
during
a Plan
Year to
reduce
or eliminate
"ADP test
safe
harbor
contributions"
or matching
contributions
for such
Plan
Year subject
to the
following
provisions.

 

(1)
An amendment
may be
made
during
a Plan
Year to
reduce
or eliminate
prospectively
any or all
"ADP test
safe harbor
contributions"
provided
a supplemental
notice
is given
to all
"eligible
Participants"
explaining
the consequences
and effecti
ve date
of the amendment,
and that
such
"eligible
Participants"
have
a r easonable
opportunity
(including
a reasonable
period)

to change
their
Elective
Deferral
(and
if applicable,
their
Voluntary
Employee
Contribution)
elections.
An amendment

reducing
or eliminating
an "ADP
test
safe
harbor
contribution"
must be
effective
no earlier
than
the later
of: (i)
thirty
(30) days
after
"eligible
Participants"
are given
the supplemental
notice
or (ii)
the date
the amendment
is adopted.
If the
Employer
amends
the Plan
to reduce
or eliminate
the "ADP
test
safe
harbor
contributions,"
then
except
as provided
in Code
§§401(k)
and
401(m)
and the
Regulations
thereunder,
the Plan
is subject
to the
ADP test
set forth
in Section
12.4
and the
ACP test

set
forth
in Section
12.6
for the
entire
Plan
Year using
current
year testing
and the
Employer
mus t also
satisfy
the provisions
of this
Section
12.8
until
the amendment
becomes
effective.

 

(2)
Notwithstanding
the preceding,
an amendment
may be
made
during
a Plan
Year to
eliminate
a nonelective
"ADP
test
safe
harbor
contribution"
for such
Plan
Year only
in accordance
with the
provisions
of Regulation
1.401(k)-3(g)
and, if applicable,
Regulation
§1.401(m)-3(h)).

 

(3)
If the
Employer
eliminates
a matching
contribution
that
is not
an "ADP
test
safe
harbor
contribution,"
then
the "ADP
test
safe
harbor"
provisions
of this
Section
continue
to apply
(i.e.,
the provisions
relating
to the
ADP test
described
in

Section
12.4 and
in Code
§401(k)(3)
do not
apply
for such
Plan
Year to
the group
of Participants
subject
to the
"ADP test
safe
harbor"
provisions).

 

12.9
QUALIFIED
AUTOMATIC
CONTRIBUTION
ARRANGEMENT

 

(a)
Qualified
Automatic
Contribution
Arrangement
(QACA).
If elected
in the
Adoption
Agreement,
the Employer
maintains
a Plan
with
Automatic
Deferral
provisions
as a Qualified
Automatic
Contribution
Arrangement
(QACA)
and the
provisions
of this
Section
will apply.
Except
as otherwise
provided
in this
Section,
the Plan's
"ADP
test
safe
harbor"
and "ACP
test
safe
harbor"
provisions
set forth
in Section
12.8
apply.
The Employer
will contribute
on behalf
of the
Participants
specified
in the
Adopt
ion Agreement,
"ADP test
safe
harbor
contributions,"
as elected
in the
Adoption
Agreement.

 

(b)
Participants
subject
to the
QACA.
The Employer
in its
Adoption
Agreement
will elect
which
Participants
are subject
to the
QACA
Automatic
Deferral
on the
"QACA
Effective
Date"
ther
eof which
may include
some or
all current
Participants
or may
be limited
to those
Employees
who become
Participants
after
the "QACA
Effective
Date."
The "QACA
Effective
Date"
means
the date
on which
the QACA
goes into
effect,
either
as to the
overall
Plan
or as to
an individual
Participants
as the
context
requires.
A QACA
becomes
effective
as to the
Plan
as of the
date
the Employer
elects
in the
Adoption
Agreement.
A Participant's
"QACA
Effective
Date"
is as soon
as practicable
after
the Participant
is subj
ect to
Automatic
Deferrals
under the
QACA,
consistent
with:
(A)
applicable
law;
and (B)
the objective
of affording
the Participant
a reasonable
period
of time
after
receipt
of the
QACA
notice
to make
an Affirmative
Election
(and,
if applicable,
an investment
election).

 

(c)
QACA
Automatic
Deferral
amount.
Except
as provided
in Subsection
(d) below
(relating
to uniformity
requirements),
the Plan
must
apply to
all Participants
subject
to the QACA,
a uniform
Automatic
Deferral
amount,
as a percentage
of each
Participant's
Compensation,
which
does not
exceed
ten percent
(10%),
and which
is at least
the following
minimum
amount:

 

(1)
Initial
period.
3% for
the period
that
begins
when
the Participant
first
has contributions
made pursuant
to a default
election
under the
QACA and
ends
on the last
day of
the following
Plan
Year;

 

(2)
Third
Plan
Year.
4% for
the third
Plan
Year of
the Participant's
participation
in the
QACA;

 

(3)
Fourth
Plan
Year.
5% for
the fourth
Plan
Year of
the Participant's
participation
in the
QACA;
and

 

(4)
Fifth
and later
Plan
Years.
6% for
the fifth
Plan
Year
of the
Participant's
participation
in the
QACA and
for e ach
subsequent
Plan
Year.

 

For
purposes
of the
above,
the Plan
will treat
an Employee
who for
an entire
Plan
Year
did not
have
contributions
made
pursuant
to a default
election
under the
QACA
as not
having
made such
contributions
for any
prior
Plan
Year.

 

(d)
Uniformity.
The "Automatic
Deferral
Percentage"
must
be a uniform
percentage
of Compensation.
The "Automatic
Deferral
Percentage"
is the percentage
of Automatic
Deferral
which
the Employer
elects
in the Adoption
Agreement
(including
any scheduled
increase
to the
"Automatic
Deferral
Percentage").
However,
the Plan
does not
violate
the uniform
"Automatic
Deferral
Percentage"
merely
because:

 

(1)
Years
of participation.
The "Automatic
Deferral
Percentage"
varies
based
on the
number
of Plan
Years
the Participant
has
participated
in the
Plan
while
the Plan
has applied
the QACA
provisions;

 

(2)
No reduction
from prior
default
percentage.
The Plan
does not
reduce
an "Automatic
Deferral
Percentage"
that,
immediately
prior
to the
QACA's
effective
date
was higher
(for
any Participant)
than
the "Automatic
Deferral
Percentage."

    	 

    	 

    

 

(3)
Applying
statutory
limits.
The Plan
limits
the Automatic
Deferral
amount
so as not
to exceed
the limits
of Code

§401(a)(17),
402(g)
(determined
without
regard
to Catch-Up
Contributions),
or 415;

 

(4)
No Automatic
Deferrals
during
hardship
suspension.
 The Plan
does not
apply
the Automatic
Deferral
during
a

period
of suspension,
under the
Plan's
hardship
distribution
provisions,
of Participant's
right
to mak e Elective
Deferrals
to the

Plan
following
a hardship
distribution;
or

 

(5)
Disaggregated
groups.
The Plan
applies
different
default
percentages
to different
groups
if the
groups
can be
disaggregated
under
Regulation
§1.401(k)-1(b)(4).

 

(e)
Safe harbor
notice.
The Plan's
safe
harbor
notice
provisions
apply
as set
forth
in Section
12.8,
except
the Employer
must provide
the initial
QACA safe
harbor
notice
sufficiently
early
so that
an Employee
has a reasonable
period
after
receiving
the notice
and before
the first
Automatic
Deferral
to make
an Affirmative
Election.
In addition,
the notice
must
state:
(1) the
A utomatic
Deferral
amount
that
will apply
in absence
of the
Employee's
Affirmative
Election;
(2) the
Employee's
right
to elect
not to
have

any
Automatic
Deferral
amount
made
on the
Employee's
behalf
or to elect
to make
Elective
Deferrals
in a different
amount
or

percentage
of Compensation;
and (iii)
how the
Plan
will invest
the Automatic
Deferrals.
However,
if it is
not practicable
for the
notice
to be provided
on or before
the date
an Employee
becomes
a Participant,
then
the notice
nonetheless
will be treated
as provided
timely
if it is
provided
as soon
as practicable
after
that
date
and the
Employee
is permitted
to elect
to defer
from
all

types
of Compensation
that
may be
deferred
under the
Plan
earned
beginning
on that
date.
For this
purpose,
the Administrator
is

deemed
to provide
timely
notice
if the
Administrator
provides
the notice
at least
thirty
(30)
days
and not
more
than
ninety
(90)

days
prior
to the
beginning
of the
QACA
Plan
Year.

 

(f)
Distributions.
 A Participant's
Account
balance
attributable
to QACA
"ADP
test
safe
harbor
contributions"
is subject
to the
distribution
restrictions
set forth
in Section
12.2(e)
other
than
on account
of a hardship
(i.e.,
may generally
not be
distributed
earlier
than
severance
of employment,
death,
Total
and Permanent
Disability,
an event
described
in Code
§401(k)(1
0), or,
in case
of a profit
sharing
plan,
the attainment
of age
59 1/2).

 

(g)
Vesting.
A Participant's
Account
balance
attributable
to QACA
"ADP
test
safe
harbor
contributions"
is Vested
in accordance
with the
vesting
schedule,
if any,
elected
in the
Adoption
Agreement.

 

(h)
Compensation.
 Compensation
for purposes
of determining
the "Automatic
Deferral
Percentage"
has the
same
meaning
as

Compensation
with
regard
to Elective
Deferrals.

 

(i)       Modification
of top-heavy
rules.
The top-heavy
requirements
of Code
§416
and the
Plan
shall
not apply
in any
Plan
Year
in which
the Plan
consists
solely
of a cash or
deferred
arrangement
which
meets
the requirements
of Code
§401(k)(13)
and "matching
contributions"
with
respect
to which
the requirements
of Code
§401(m)(12)
is met.

 

12.10ADVANCE
DISTRIBUTION
FOR HARDSHIP

 

(a)
Hardship
events.
If elected
in the
Adoption
Agreement,
the Administrator,
at the
election
of a Participant,
shall
direct
the Trustee
(or Insurer)
to distribute
to the
Participant
in any
one Plan
Year
up to the
lesser
of (1)
100% of
the Accounts
as selected
in the
Adoption
Agreement
valued
as of the
last
Valuation
Date
or (2)
the amount
necessary
to satisfy
the immediate
and heavy
financial
need of
the Participant.
For purposes
of this
Section,
a Participant
shall
include
an Employee
who has
an Account
balance
in the Plan.
Any distribution
made pursuant
to this
Section
shall
be deemed
to be made
as of the
first
day of
the Plan
Year or,
if later,
the Valuation
Date
immediately
preceding
the date
of distribution,
and the
Account
from
which
the distribu
tion is
made shall
be reduced
accordingly.
Effective
with
respect
to Plan
Years
beginning
in 2006
(or if
earlier,
the date
the final
401(k
) Regulations
are effective
with
respect
to the
Plan),
withdrawal
under this
Section
shall
be authorized
only
if the
distributi
on is for
one of
the following
or any
other
item
permitted
under
Regulation
§1.401(k)-1(d)(3)(iii)(B)
or any
other
federally
enacted
legislation:

 

(1)
expenses
for (or
necessary
to obtain)
medical
care
(as defined
in Code
§213(d));

(2)
costs
directly
related
to the
purchase
(excluding
mortgage
payments)
of a principal
residence
for the
Participant;
(3) payments
for burial
or funeral
expenses
for the
Participant's
deceased
parent,
Spouse,
children
or dependents
(as

defined
in Code
§152,
and without
regard
to Code
§152(d)(1)(B));

 

(4)
payment
of tuition,
related
educational
fees,
and room
and board
expenses,
for up
to the
next twelve
(12) mont
hs of post-secondary
education
for the
Participant,
the Participant's
Spouse,
children,
or dependents
(as defined
in Code
§152,
and
without
regard
to Code
§152(b)(1),
(b)(2),
and (d)(1)(B));

 

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

 

(6)
expenses
for the
repair
of damage
to the
Participant's
principal
residence
that
would
qualify
for the
casualty
deduction
under
Code
§165 (determined
without
regard
to whether
the loss
exceeds
10% of
adjusted
gross
income).

 

(b)
Beneficiary-based
distribution.
If elected
in Adoption
Agreement,
then
effective
as of the
date
specified
in the
Adoption
Agreement,
but no earlier
than
August
17, 2006,
a Participant's
hardship
event
includes
an immediate
and heavy
financial
need of
the Participant's
"primary
Beneficiary
under the
Plan,"
that
would
constitute
a h ardship
event
if it occurred
with
respect
to the

    	 

    	 

    

 

Participant's
Spouse
or dependent
as defined
under
Code
§152
(such
hardship
events
being
limited
to educational
expenses,
funeral
expenses
and certain
medical
expenses).
For purposes
of this
Section,
a Participant's
"primary
Beneficiary
under
the Plan"
is an individual
who is
named
as a Beneficiary
under the
Plan
(by the
Participant
or pursuant
to Section
6.2(d))
and has
an unconditional
right
to all
or a portion
of the
Participant's
Account
balance
under
the Plan
upon
the Participant's
death.

 

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

 

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

 

(2)
The Participant
has obtained
all distributions,
other
than
hardship
distributions,
and all
nontaxable
loans currently
available
under all
plans
maintained
by the
Employer
(to the
extent
the loan
would
not increase
the hardship);
and

 

(3)
The Plan,
and all
other
plans
maintained
by the
Employer,
provide
that
the Participant's
Elective
Deferrals
and nondeductible
voluntary
Employee
contributions
will be
suspended,
for at
least
six (6)
months
after
receipt
of the
hardship
distribution.

 

(d)
Limitation
on Account
withdrawals.
 Notwithstanding
the above,
distributions
from
the Participant's
Elective
Deferral
Account,
Qualified
Matching
Contribution
Account
and Qualified
Nonelective
Contribution
Account
pursuant
to this
Section
shall
be limited
solely
to the
Participant's
Elective
Deferrals
and any
income
attributable
thereto
credited
to the
Participant's
E lective
Deferral
Account
as of December
31, 1988.

 

(e)
Other
limits
and conditions.
 If elected
in the
Adoption
Agreement,
no distribution
shall
be made
pursuant
to this
Section
from
the Participant's
Account
until
such Account
has become
fully
Vested.
Furthermore,
if a hardship
distributi
on is permitted
from
more
than
one Account,
the Administrator
may determine
any ordering
of a Participant's
hardship
distribution
from
such Accounts.

 

(f)
Distribution
rules
apply.
Any distribution
made
pursuant
to this
Section
shall
be made
in a manner
which
is consistent
with
and
satisfies
the provisions
of Section
6.5,
including,
but not
limited
to, all
notice
and consent
requirements
of Code
§§411(a)(11)
and 417
and the
Regulations
thereunder.

 

12.11IN-PLAN
ROTH
ROLLOVER
CONTRIBUTIONS

 

(a)
Right
to elect
In-Plan
Roth
Rollover
Contribution.
If elected
in the
Adoption
Agreement,
then
effective
as of the
date
specified
in the
Adoption
Agreement,
but no
earlier
than
September
28, 2010,
a Participant
may elect
to roll
over
a distribut
ion directly
to an In-Plan
Roth
Rollover
Contribution
Account
in accordance
with
the provisions
of the
Plan,
this
Section
and the
elections
made
in the
Adoption
Agreement.
"In-Plan
Roth
rollover
contributions"
will be
subject
to the
Plan
rules
related
to designated
Roth
accounts.

 

(b)
Eligibility
for distribution
and rollover.
A Participant
must be
eligible
for a distribution
in order
to roll
over a distribution
to an
In-Plan
Roth Rollover
Contribution
Account
in accordance
with
this
Section.
A Participant
may not
make an
"in-Plan
Roth rollover
contribution"
with
regard
to an amount
which
is not
an "eligible
rollover
distribution"
as defined
in Section
6.15.

 

(c) Form
of rollover.
The Administrator
may permit
an "in-Plan
Roth
rollover
contribution"
either
by converting
to cash
any

non-cash
investments
prior
to rolling
over
the Participant's
distribution
election
amount
to the
In-Plan
Roth
Rollover
Contribution
Account,
or by rolling
over
the Participant's
current
investments
to the
In-Plan
Roth
Rollover
Contribution
Account.
A Plan
loan
so transferred
in a direct
rollover
(if such
transfer
is permitted)
without
changing
the repayment
schedule
is not
treated
as a new

loan.

 

(d)
Treatment
of In-Plan
Roth
Rollover
Contributions.

 

(1)
Amount
of In-Plan
Roth
Rollover
Contribution.
 If specified
in the
Adoption
Agreement,
a Participant
may take
an in-service
distribution
only
for purposes
of electing
a direct
rollover
to an In-Plan
Roth Rollover
Contribution
Account.
If elected
in the
Adoption
Agreement,
a portion
of the amount
that is
eligible
to be rolled
over
to an In-Plan
Roth Rollover
Contribution
Account
may be
distributed
solely
for the
purpose
of federal
or state
income
tax withholding
for the
Participa
nt's anticipated
tax obligations
regarding
the amount
includible
in the
Participant's
gross
income
by reason
of the
In -Plan
Roth
Rollover
Contribution
(and the
amount
withheld
for income
taxes).
The Administrator
may limit
the amount
of the 100%
withholding
distribution
to the
amount
the Administrator
reasonably
determines
is sufficient
to satisfy
the Participant's
federal
and/or
state
income
tax liability
relating
to the
Plan
distribution.

 

(2)
No rollover
or distribution
treatment.
Notwithstanding
any other
Plan
provision,
a direct
In-Plan
Roth
Rollover
Contribution
is not
a rollover
contribution
for purposes
of the
Plan.
Accordingly,
the Plan
will
take into
account
the amount
s attributable
to an "in-Plan
Roth rollover
contribution"
in determining
whether
a Participant's
Vested
Account
balance
exceeds

$5,000
for purposes
of Code
§411(a)(11).
In addition,
an "in-Plan
Roth
rollover
contribution"
is not
a distribution
for purposes

of Code
§§401(a)(11)
(relating
to spousal
consent)
and 3405(c)
(relat
ing to mandatory
income
tax withholding).

Furthermore,
it is not
a distribution
for purposes
of applying
any limitations
that
a Plan
may impose
with respect
to the
number
of in-service
distributions
permitted
by the
Plan.

    	 

    	 

    

 

 

(3)
Withdrawal
of In-Plan
Roth
Rollover
Contributions.
 A Participant
may withdraw
amounts
from
the Participant's

In-Plan
Roth
Rollover
Contribution
Account
only
when
the Participant
is eligible
for a distribution
from
the Plan
account
that
is the source
of the
"in-Plan
Roth
rollover
contribution."
This Section
does not
expand
(except,
if elected,
for distributions
for withholding)
or eliminate
any distribution
rights
on amounts
that
a Participant
elects
to treat
as an "in
-Plan
Roth
rollover
contribution."

 

(e)
Definitions
and other
rules.

 

(1)
In-Plan
Roth
Rollover
Contribution.
 An "in-Plan
Roth
rollover
contribution"
means a rollover
contribution
to the
Plan
that
consists
of a distribution
from
a Participant's
Plan
account,
other
than
a designated
Roth
account,
that
the Participant
rolls
over
to the
Participant's
designated
In-Plan
Roth
Rollover
Contribution
Account
in the
Plan,
in accordance
with
Code

§402(c)(4).
An "in-Plan
Roth
rollover
contribution"
may occur
only
by a direct
rollover.

 

(2)
Participant
includes
spousal
Beneficiary/Alternate
Payee.
For purposes
of eligibility
for an
"in-Plan
Roth
rollover
contribution,"
the Plan
will
treat
a Participant's
surviving
Spouse
Beneficiary
or Alternate
Payee
Spouse
or former
Spouse
as a Participant
(unless
the right
to elect
an "in-Plan
Roth
rollover
contribution"
is limited
to Employees).
A non-Spouse
Beneficiary
may not
make an
"in-Plan
Roth
rollover
contribution."

 

(3)
Distribution
from partially
Vested
account.
Distributions
(i.e.,
the source
of the
"in-Plan
Roth
rollover
contribution"
amounts)
are permitted
only
from
Vested
amounts
allocated
to a qualifying
source
as identified
in the
Adoption
Agreement.
If a distribution
is made
to a Participant
who has
not severed
employment
and who
is not
fully
Vested
in the
Participant's
Account
from
which
the rollover
is to be
made,
and the
Participant
may increase
the Vested
percentage
in such
account,

then
at any
relevant
time
the Participant's
Vested
portion
of the
account will
be determined
in the
manner
set forth
in Section

6.5(h).

 

ARTICLE
XIII

SIMPLE
401(K)
PROVISIONS

 

13.1
SIMPLE
401(k)
PROVISIONS

 

(a)
If elected
in the
Adoption
Agreement,
this
Plan
is intended
to be a SIMPLE
401(k)
plan
which
satisfies
the requirements
of

Code
§§401(k)(11)
and
401(m)(10).

 

(b)
The provisions
of this
Article
apply
for a "year"
only
if the
following
conditions
ar e met:

 

(1)
The Employer
adopting
this
Plan
is an "eligible
employer."
An "eligible
employer"
means,
with
respect
to any
"year,"
an Employer
that
had no
more
than
100 Employees
who received
at least
$5,000
of "compensation"
from
the Employe
r for the
preceding
"year."
In applying
the preceding
sentence,
all employees
of an Affiliated
Employer
and Leased
Employees
are taken
into
account.

 

An
"eligible
employer"
that
has elected
to use
the SIMPLE
401(k)
provisions
but fails
to be an
"eligible
e mployer"
for any
subsequent
"year,"
is treated
as an "eligible
employer"
for the
two (2)
"years"
following
the last
"year"
the Employer
was an
"eligible
employer."
If the
failure
is due
to any
acquisition,
disposition,
or similar
transaction
involving
an " eligible
employer,"
the preceding
sentence
applies
only
if the
provisions
of Code
§410(b)(6)(C)(i)
are satisfied.

 

(2)
No contributions
are made,
or benefits
accrued
for services
during
the "year,"
on behalf
of any
"eligible
employee"
under
any other
plan,
contract,
pension,
or trust
described
in Code
§219(g)(5)(A)
or (B),
maintained
by the
Employer.

 

(c) To
the extent
that
any other
provision
of the
Plan
is inconsistent
with
the provisions
of this
Article,
the provisions
of thi
s

Article
govern.

 

13.2
DEFINITIONS

 

(a)
"Compensation"
means,
for purposes
of this
Article,
the sum
of the
wages,
tips,
and other
compensation
from
the Employer
subject
to federal
income
tax withholding
(as described
in Code
§6051(a)(3))
and the
Employee's
salary
deferral
contributions
made
under this
or any
other
401(k)
plan,
and, if applicable,
elective
deferrals
under a Cod
e §408(p)
SIMPLE
plan,
a SARSEP,

or
a Code
§403(b)
annuity
contract
and compensation
deferred
under
a Code
§457 plan,
required
to be reported
by the
Employer
on Form
W -2 (as
described
in Code
§6051(a)(8)).
For Self-Employed
Individuals,
"compensation"
means net
earnings
from

self-employment
determined
under Code
§1402(a)
prior
to subtracting
any contributions
made
under this
Plan
on behalf
of the

individual.
"Compensation"
also
includes
amounts
paid
for domestic
service
(as described
in Code
§3401(a)(3)).
T he provisions
of the
Plan
implementing
the limit
on Compensation
under
Code
§401(a)(17)
apply
to the
"compensation"
under
this
Article.

 

(b)
"Eligible
employee"
means,
for purposes
of this
Article,
any Participant
who is
entitled
to make
Elective
Deferrals
described
in Code
§402(g)
under the
terms
of the
Plan.

 

(c) "Year"
means
the calendar
year.

    	 

    	 

    

 

13.3
CONTRIBUTIONS

 

(a)
Salary
deferral
contributions

 

(1)
Each
"eligible
employee"
may make
a salary
deferral
election
to have
"compensation"
reduced
for the
"year"
in any amount
selected
by the
Employee
subject
to the
limitation
in Subsection
(c) below.
The Employer
will make
a salary
deferral
contribution
to the
Plan,
as an Elective
Deferral,
in the amount
by which
the Employee's
"compensation"
has been
reduced.

 

(2)
The total
salary
deferral
contribution
for the
"year
" for any
Employee
cannot
exceed
the limitation
on salary
deferral
contributions
in effect
for the
"year"
pursuant
to Code
§408(p)(2).
The limit
will be
adjusted
by the
Secretary
of the
Treasu
ry for
cost-of
living
increases
under
Code
§408(p)(2)(E).
Any such
adjustments
will
be in multiples
of $500.
The amount
of an Employee's
salary
deferral
contributions
permitted
for a "year"
is increased
for Employees
aged
50 or over
by the
end of
the "year"
by the
amount
of allowable
Catch-Up
Contributions
pursuant
to Code
§414(v)(2).
The limit
will be
adjusted
by the
Secretary
of the
Treasury
for cost-of-living
increases
under Code
§414(v)(2)(C).
Any such
adjustments
will
be in multiples
of

$500.
Catch-Up
Contributions
are otherwise
treated
the same
as other
salary
def erral
contributions.

 

(b)
Other
contributions

 

(1)
Matching
contributions.
Unless
(2) below
is elected,
each "year"
the Employer
will make
a matching
contrib
ution
to the
Plan
on behalf
of each
Employee
who
makes
a salary
deferral
election
under
Section
13.3(a).
The amount
of the
matching
contribution
will be
equal
to the
Employee's
salary
deferral
contribution
up to a limit
of three
percent
(3%)
of the
Employe
e's "compensation"
for the
full
"year."

 

(2)
Nonelective
Contributions.
For any
"year,"
instead
of a matching
contribution,
the Employer
may elect
to contribute
a Nonelective
Contribution
of two
percent
(2%) of "compensation"
for the
full
"year"
for each
"eligible
employee"
who received
at least
$5,000
of "compensation"
from
the Employer
for the
"year."

 

(c) Limitation
on Other
Contributions

 

No
Employer
or Employee
contributions
may be
made
to this
Plan
for the
"year"
other
than
salar
y deferral
contributions
described
in Section
13.3(a),
matching
or Nonelective
Contributions
described
in Section
13.3(b)
and rollover
contributions
described
in Regulation
§1.402(c)-2,
Q&A-1(a).
Furthermore,
the provisions
of Section
4.4 which
implement
t he limitations
of Code
§415 apply
to contributions
made
pursuant
to this
Section
(other
than
Catch-Up
Contributions).

 

13.4
ELECTION
AND NOTICE
REQUIREMENTS

 

(a)
Election
period

 

(1)
In addition
to any
other
election
periods
provided
under the
Plan, each
"eligible
employee"
may make or
modify
a salary
deferral
election
during
the 60-day
period
immediately
preceding
each January
1st.

 

(2)
For the
"year"
an Employee
becomes
eligible
to make
salary
deferral
contributions
under
this Article,
the 60
-day
election
period
requirement
of Subsection
(a)(1)
is deemed
satisfied
if the Employee
may make
or modify
a salary
deferral
election
during
a 60-day
period
that
includes
either
the date
the Employee
becomes
eligible
or the
day before.

 

(3)
Each
"eligible
employee"
may terminate
a salary
deferral
election
at any time
during
the "year."
(b) Notice
requirements

(1)
The Employer
will
notify
each "eligible
employee"
prior
to the
60-day
election
period
described
in Section
13.4(a)
that
a salary
deferral
election
or a modification
to a prior
election
may be
made
during
that
period.

 

(2)
The notification
described
in (1)
above
will
indicate
whether
the Employer
will provide
a matching
contribution
described
in Section
13.3(b)(1)
or a two
percent
(2%) Nonelective
Contribution
described
in Sect
ion 13.3(b)(2)
for that
"year."

 

13.5
VESTING
REQUIREMENTS

 

All
benefits
attributable
to contributions
made
pursuant
to this
Article
are nonforfeitable
at all
times,
and all
previous
contributions
made
under the
Plan
are nonforfeitable
as of the
beginning
of the
Plan
Year that
the 401(k)
SIMPLE
provisions
apply.

 

13.6
TOP-HEAVY
RULES

 

The
Plan
is not
treated
as a top-heavy
plan
under
Code
§416 for
any "year"
for which
the provisions
of this
Article
are effective
and
satisfied.

 

13.7
NONDISCRIMINATION
TESTS

 

The
Plan
is treated
as meeting
the requirements
of Code
§§401(k)(3)(A)(ii)
and 401(m)(2)
f or any
"year"
for which
the provisions
of this
Article
are effective
and satisfied.
Accordingly,
Sections
12.4,
12.5,
12.6 and
12.7
shall
not apply
to the
Plan
for any
"year"
for which
this
Article
applies.

    	 

    	 

    

 

 

ARTICLE
XIV

MULTIPLE
EMPLOYER
PROVISIONS

 

14.1
ELECTION
AND OVERRIDING
EFFECT

 

If
a Participating
Employer
that
is not
an Affiliated
Employer
adopts
this
Plan,
then
the provisions
of this
Article
XIV shal
l apply
to such
Participating
Employer
as of the
Effective
Date
specified
in its participation
agreement
and supersede
any contrary
provisions
in the
basic
Plan
document
or the
Adoption
Agreement.
If this
Article
XIV applies,
then
the Plan
shall
be a multiple
employer
pl an as
described
in Code
§413(c).
In this
case,
the Employer
and each
Participating
Employer
acknowledge
that
the Plan
is a multiple
employer
plan
subject
to the
rules
of Code
§413(c)
and the
Regulations
thereunder,
which
are hereby
incorporated
by reference
, and specific
annual
reporting
requirements.

 

14.2
DEFINITIONS

 

The
following
definitions
shall
apply
to this
Article
XIV and
shall
supersede
any conflicting
definitions
in the
Plan:

 

(a)
Employee.
"Employee"
means
any common
law employee,
Self-Employed
Individual,
Leased
Employee
or other
person
the Code
treats
as an employee
of a Participating
Employer
for purposes
of the
Participating
Employer's
qualified
plan.
Either
the Adoption
Agreement
or a participation
agreement
to the
Adoption
Agreement
may
designate
any Employee,
or class
of Employees,
as not
eligible
to participate
in the
Plan.

 

(b)
Lead Employer.
"Lead
Employer"
means
the signatory
Employer
to the
Adoption
Agreement
execution
page,
and does
not include
any Affiliated
Employer
or Participating
Employer.
The "lead
Employer"
has the
same meaning
as the
Employer
for purposes
of making
Plan
amendments
and other
purposes
regardless
of whether
the "lead
Employer"
is also a Participating
Employer
under
this Article
XIV.

 

14.3
PARTICIPATING
EMPLOYER
ELECTIONS

 

The
participation
agreement
must
identify
the Participating
Employer
and the
covered
Employees
and provide
for the
Participating
Employer's
signature.
In addition,
in the
participation
agreement,
the "lead
Employer"
shall
sp ecify
which
elections,
if any,
the Participating
Employer
can modify,
and any
restrictions
on the
modifications.
Any such
modification
shall
apply
only
to the
employees
of that
Participating
Employer.
The Participating
Employer
shall
make
any such
modification
by selecting
the appropriate
option
on its
participation
agreement
to the
"lead
Employer's"
Adoption
Agreement.
To the
extent
that
the Adoption
Agreement
does not
permit
modification
of an election,
any attempt
by a Participating
Employer
to modify
th e election
shall
have
no effect
on the
Plan
and
the Participating
Employer
is bound
by the
Plan
terms
as selected
by the
"lead
Employer."
If a Participating
Employer
doe s not
make
any permissible
participation
agreement
election
modifications,
then
with
regard
to any
election,
the Participating
Employer
is

bound
by the
Adoption
Agreement
terms
as completed
by the
"lead
Employer."
Notwithstanding
the other
provisions
of this
Secti
on, if a Standardized
Plan
is being
used, then
the elections
available
to Participating
Employers
must
be limited
to the
elections
available
to the
"lead
Employer"
that
ensure
the Plan,
by design,
satisfies
the minimum
coverage
requirements
of Code
§410(b)
and the
nondiscrimination
requirements
of Code
§401(a)(4).

 

14.4
HIGHLY
COMPENSATED
EMPLOYEE
STATUS

 

Status
as a Highly
Compensated
Employee
shall
be determined
separately
with
respec
t to each
Participating
Employer.

 

14.5
TESTING

 

(a)
Separate
status.
The Administrator
shall
perform
the tests
listed
below
separately
for each
Participating
Employer,
with
respect
to the
Employees
of that
Participating
Employer.
For this
purpose,
the Employees
of a Participating
Employer,
and the
ir allocations
and accounts,
shall
be treated
as though
they
were
in separate
plan.
Any correction
action,
such
as additional
contributions
or corrective
distributions,
shall
only
affect
the Employees
of the
Participating
Employer.
The tests
subject
t o this
separate
treatment
are:

 

(1)
The ADP
test
in Section
12.4.
(2) The
ACP test
in Section
12.6.

(3)
Nondiscrimination
testing
as described
in Code
§401(a)(4)
and the
applicable
Regulations.
(4) Coverage
testing
as described
in Code
§410(b)
and the
applicable
Regulations.

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

 

(1)
Applying
the Code
§415
limitation
in Section
4.4.

 

(2)
Applying
the Code
§402(g)
limitation
in Section
12.2.

 

(3)
Applying
the limit
on Catch-Up
Contributions
in Section
12.2.

    	 

    	 

    

 

 

14.6
TOP HEAVY
PROVISIONS

 

The
Plan
will apply
the provisions
of Article
IX separately
to each
Participating
Employer.
The Plan
will be
considered
separate
plans
for each
Participating
Employer
and its
Employees
for purposes
of determining
whether
such
a separate
plan
is top
-heavy
under
Section
9.1 or
is entitled
to the
exemption
described
in Section
12.8(f)
or 12.9(i).
For purposes
of applying
this
Article
to a Participating
Employer,
the Participating
Employer
and any
business
which
is related
to that
Participating
Employer
shall
be the
"Employer"
for purposes
of Section
9.1,
and the
terms
"Key Employee"
and "Non-Key
Employee"
shall
refer
only
to the
Employees
of that
Participating
Employer.
If such
a Participating
Employer's
separate
plan
is top-heavy,
then:

 

(a)
Highest
contribution
rate.
The Administrator
shall
determine
the highest
Key Employee
contribution
rate
under Section

4.3(g)
by reference
to the
Key Employees
and their
allocations
in the
separate
plan
of that
Participating
Employer;

 

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

 

(c) Plan
Which
Will Satisfy.
The Participating
Employer
shall
make any
additional
contributions
Section
4.3(k)
requires.

 

14.7
COMPENSATION

 

(a)
Separate
determination.
 For the
following
purposes,
a Participant's
Compensation
shall
be determined
separately
for each

Participating
Employer:

 

(1)
Nondiscrimination
and coverage.
All of
the separate
tests
listed
in Section
14.5(a).
(2)
Top-heavy.
Application
of the
top-heavy
rules
in Article
IX.

(3)
Allocations.
Application
of allocations
under
Article
IV.

 

(4)
HCE determination.
 The determination
of an Employee's
status
as a Highly
Compensated
Employee.

 

(b)
Joint
status.
For all
Plan
purposes
other
than
those
described
in Section
14.7(a),
including
but not
limited
to determining
the Code
§415
limits
in Section
4.4,
Compensation
includes
all Compensation
paid
by or for
any Participating
Employer.

 

14.8
SERVICE

 

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

 

14.9
REQUIRED
MINIMUM
DISTRIBUTIONS

 

If
a Participant
is a more
than
5% Owner
(under
Code
§416(i)
and Section
6.8(e)(6))
of any
Participating
Employer
for which
t he Participant
is an Employee
in the
Plan
Year the
Participant
attains
age 70
1/2,
then
the Participant's
"required
beginning
date"
under
Section
6.8(e)(5)
shall
be the
April
1 following
the close
of the
calendar
year in
which
the Participant
attains
age 70
1/2.

 

14.10
COOPERATION
AND INDEMNIFICATION

 

(a)
Cooperation.
 Each
Participating
Employer
agrees
to timely
provide
all information
the Administrator
deems
necessary
to insure
the Plan
is operated
in accordance
with
the requirements
of the
Code
and the
Act and
will cooperate
fully
with
the "lead
Employer,"
the Plan,
the Plan
fiduciaries
and other
proper
representatives
in maintaining
the qualified
status
of the
Plan.
S uch cooperation
will include
payment
of such
amounts
into
the Plan,
to be allocated
to employees
of the
Participating
Employer,
which
are reasonably
required
to maintain
the tax-qualified
status
of the
Plan.

 

(b)
Indemnity.
Each
Participating
Employer
will indemnify
and hold
harmless
the Administrator,
the "lead
Employer"
and its
subsidiaries;
officers,
directors,
shareholders,
employees,
and agents
of the
"lead
Employer";
the Plan;
the Trustees,
Fiduci
aries,
Participants
and Beneficiaries
of the
Plan,
as well
as their
respective
successors
and assigns,
against
any cause
of action,
loss,
liability,
damage,
cost,
or expense
of any
nature
whatsoever
(including,
but not
limited
to, attorney's
fees
and costs,
whether or not
suit is
brought,
as well
as IRS
plan
disqualifications,
other
sanctions
or compliance
fees
or DOL fiduciary
breach
sanctions
and
penalties)
arising
out of or
relating
to the
Participating
Employer's
noncompliance
with
any of the
Plan's
terms
or requirements;
any intentional
or negligent
act or
omission
the Participating
Employer
commits
with
regard
to the
Plan;
and any
omission
or provision
of incorrect
information
with
regard
to the
Plan
which
causes
the Plan
to fail
to satisfy
the requirements of
a tax-qualified
plan.

    	 

    	 

    

 

14.11
INVOLUNTARY
TERMINATION

 

Unless
the "lead
Employer"
provides
otherwise
in an addendum
hereto,
the "lead
Employer"
shall
have
the power
to terminate

the
participation
of any
Participating
Employer
(hereafter
"Terminated
Employer")
in this
Plan.
If and
when
the "lead
Employer"
wishes
to exercise
this
power,
the following
shall
occur:

 

(a)
Notice.
The "lead
Employer"
shall
give
the "Terminated
Employer"
a notice
of the
"lead
Employer's"
intent
to terminate
the "Terminated
Employer's"
status
as a Participating
Employer
of the
Plan.
The "lead
Employer"
will
provide
such notice
not less
than
thirty
(30)
days prior
to the
date
of ter
mination
unless
the "lead
Employer"
determines
that
the interest
of Plan
Participants
requires
earlier
termination.

 

(b)
Spin-off.
The "lead
Employer"
shall
establish
a new defined
contribution
plan,
using
the provisions
of this
Plan
with
any modifications
contained
in the
"Terminated
Employer's"
participation
agreement,
as a guide
to establish
a new defined
contribution
plan
(the
"spin-off
plan").
The "lead
Employer"
will
direct
the Trustee
to transfer
(in accordance
with
the rules
of Code

§414(l)
and the
provisions
of Section
8.3)
the Accounts
of the
Employees
of the
"Terminated
Employer"
to the
"spin
-off
plan."
The

"Terminated
Employer"
shall
be the
Employer,
Administrator,
and sponsor
of the
"spin-off
plan."
The Trustee
of the
"spin-off
plan"
shall
be the
person
or entity
designated
by the
"Terminated
Employer,"
or, in
the absence
of any
such
designation,
the chief
executive
officer
of the
"Terminated
Employer."
If state
law prohibits
the "Terminated
Employer"
from
serving
as Trustee,
the Trustee
is the
president
of a corporate
"Terminated
Employer,"
the managing
partner
of a partnership
"Terminated
Employer,"

the
managing
member
of a limited
liability
company
"Terminated
Employer,"
the sole
proprietor
of a
proprietorship
"Terminated

Employer,"
or in the
case
of any
other
entity
type,
such
other
person
with
title
and responsibilities
similar
to the
foregoing.
However,
the "lead
Employer"
shall
have
the option
to designate
an appropriate
financial
institution
as Trustee
instead
if necessary
to protect
the interest
of the
Participants.
The "lead
Employer"
shall
have
the authority
to charge
the "Terminated
Employer"
or the
Accounts
of the
Employees
of the
"Terminated
Employer"
a reasonable
fee to
pay the
expenses
of establishing
the "spin-off
plan."

 

(c)
Alternative.
The "Terminated
Employer,"
in lieu
of creation
of the
"spin-off
plan"
under (b)
above,
has the
option
to elect
a transfer
alternative
in accordance
with
this Subsection
(c).

 

(1)
Election.
To exercise
the option
described
in this
Subsection,
the "Terminated
Employer"
must inform
the "lead
Employer"
of its
choice,
and must
supply
any reasonably
required
documentation
as soon
as practical.
If the
"lead
Employer"
has not
received
notice
of a "Terminated
Employer's"
exercise
of this
option
within
ten (10)
days prior
to the
stated
date
of termination,
the "lead
Employer"
can choose
to disregard
the exercise
and proceed
with
the Spin
-off.

 

(2)
Transfer.
If the
"Terminated
Employer"
selects
this
option,
the Administrator
shall
transfer
(in accordance
with
the rules
of Code
§414(l)
and the
provisions
of Section
8.3)
the Accounts
of the
Employees
of the
"Terminated
Employer"
to a qualified
plan
the "Terminated
Employer"
maintains.
To exercise
this
option,
the "Terminated
Employer"
must
deliver
to the
"lead
Employer"
or Administrator
in writing
the name
and other
relevant
information
of the
transferee
plan
and must
provide
such
assurances
that
the Administrator
shall
reasonable
require
to demonstrate
that
the transferee
plan
is a qualified
plan.

 

(d)
Participants.
 The Employees
of the
"Terminated
Employer"
shall
cease
to be eligible
to accrue
additional
benefits
under the
Plan
with
respect
to Compensation
paid
by the
"Terminated
Employer,"
effective
as of the
date
of termination.
To the
extent
that
these
Employees
have
accrued
but unpaid
contributions
as of the
date
of termination,
the "Terminated
Employer"
shall
pay such
amounts
to the
Plan
or the
"spin-off
plan"
no later
than
thirty
(30) days
after
the date
of termination,
unless
the "Terminated
Employer"
effectively
selects
the Transfer
option
under
Subsection
(c)(2) above.

 

(e)
Consent.
By its
signature
on the
participation
agreement,
the Terminated
Employer
specifically
consents
to the
provisions
of this
Article
and agrees
to perform
its responsibilities
with
regard
to the
"spin-off
plan,"
if necessary.

 

14.12
VOLUNTARY
TERMINATION

 

A
Participating
Employer
(hereafter
"withdrawing
employer")
may voluntarily
withdraw
from
participation
in this
Plan
at any
time.
If and
when
a "withdrawing
employer"
wishes
to withdraw,
the following
shall
occur:

 

(a)
Notice.
The "withdrawing
employer"
shall
inform
the "lead
Employer"
and the
Administrator
of its
intention
to withdraw
from
the Plan.
The Withdrawing
Employer
must
give
the notice
not less
than
thirty
(30) days
prior
to the
effective
date
of its
withdrawal.

 

(b)
Procedure.
The "withdrawing
employer"
and the
"lead
Employer"
shall
agree
upon
procedures
for the
orderly
withdrawal
of the
"withdrawing
employer"
from
the plan.
Such
procedures
may include
any of
the option
al spin-off
or transfer
options
described
in Section
14.11.

 

(c) Costs.
The "withdrawing
employer"
shall
bear all
reasonable
costs
associated
with
withdrawal
and transfer
under
this

Section.

 

(d)
Participants.
The Employees
of the
"withdrawing
employer"
shall
cease
to be eligible
to accrue
additional
benefits
under the
Plan
as to Compensation
paid
by the
"withdrawing
employer,"
effective
as of the
effective
date
of withdrawal.
To the
exte nt
that
such
Employees
have
accrued
but unpaid
contributions
as of the
effective
date
of withdrawal,
the "withdrawing
employer"
shall
contribute
such
amounts
to the
Plan
or the
"spin-off
plan"
promptly
after
the effective
date
of withdrawal,
unless
the accounts
are transferred
to a qualified
plan
the "withdrawing
employer"
maintains.

 

 

 

Volume Submitter 401(k)
Profit Sharing Plan

 

The
adopting Employer may rely on an advisory letter issued by the Internal Revenue Service as evidence that the Plan is qualified
under Code §401 only to the extent provided in Rev. Proc. 2011-49 or subsequent guidance.

 

The Employer may
not rely on the advisory letter in certain other circumstances or with respect to certain qualification requirements, which are
specified in the advisory letter issued with respect to the Plan and in Rev. Proc. 2011-49 or subsequent guidance. In order to
have reliance in such circumstances or with respect to such qualification requirements, application for a determination letter
must be made to Employee Plans Determinations of the Internal Revenue Service.

 

This Adoption
Agreement may be used only in conjunction with the Volume Submitter basic Plan document #07. This Adoption Agreement and the basic
Plan document will together be known as The Retirement Advantage, Inc. Volume Submitter 401(k) Profit Sharing Plan #07-003.

 

The
adoption of this Plan, its qualification by the IRS, and the related tax consequences are the responsibility of the Employer and
its independent tax and legal advisors.

 

The
Retirement Advantage, Inc. will notify the Employer of any amendments made to the Plan or of the discontinuance or abandonment
of the Plan. Furthermore, in order to be eligible to receive such notification, the Employer agrees to notify The Retirement Advantage,
Inc. of any change in address. In addition, this Plan is provided to the Employer either in connection with investment in a product
or pursuant to a contract or other arrangement for products and/or services. Upon cessation of such investment in a product or
cessation of such contract or arrangement, as applicable, the Employer is no longer considered to be an adopter of this Plan and
The Retirement Advantage, Inc. no longer has any obligations to the Employer that relate to the adoption of this Plan.

 

With regard to
any questions regarding the provisions of the Plan, adoption of the Plan, or the effect of an advisory letter from the IRS, call
or write (this information must be completed by the sponsor of this Plan or its designated representative):

 

Name:The Retirement
Advantage, Inc.

 

Address: 47 Park
Place Suite 850 AppletonWisconsin54914

  

Telephone: 920 832-2544

 

 

The
Employer and Trustee, by executing below, hereby adopt this Plan: 

EMPLOYER: Southwest
Georgia Financial Corporation

	By:	 	 /s/Robert H. Craft	 	11/18/2015
	 	 	 	 	DATE SIGNED
	Trustee By:	 	/s/ Tammy Lane	 	11/18/2015
	 	 	 	 	DATE SIGNEDSOUTHWEST GEORGIA
FINANCIAL CORPORATION PENSION RETIREMENT PLAN

 

 

 

As Amended and Restated

 

Effective as of
January 1, 2015

 

 

 

 

 

 

 

 

 

 

 

24079548v1

    	 

    	 

    

Table of Contents

 

Page

 

 

ARTICLE
ICONSTRUCTION AND DEFINITIONS..................................................................3

 

ARTICLE
IIMEMBERSHIP IN
THE RETIREMENT PLAN .....................................................14

 

2.1       Initial
Membership ................................................................................................14

2.2       Resumption
of Membership ..................................................................................14

2.3       Termination
...........................................................................................................14

2.4       Membership
Requirement Effective as of May 1, 1999..........................................14

2.5       Qualified
Military Services ....................................................................................14

2.6       Moultrie
Insurance Agency Membership ...............................................................15

2.7       Waiver
of Participation..........................................................................................15

2.8       Empire
Financial Services, Inc. Membership..........................................................15

2.9       Sylvester
Banking Company Membership .............................................................15

2.10       Sylvester
Banking Company Pension Plan ...........................................................15

 

ARTICLE
IIIMONTHLY RETIREMENT INCOME .................................................................16

 

3.1       General.................................................................................................................16

3.2       Normal
Retirement ...............................................................................................16

3.3       Late
Retirement ....................................................................................................20

3.4       Early
Retirement....................................................................................................20

3.5       Disability
Retirement..............................................................................................20

3.6       Method
of Payment of Retirement Benefits ............................................................21

3.7       Suspension
Of Benefits .........................................................................................23

 

ARTICLE
IVDEATH BENEFITS ..............................................................................................25

4.1       Incidental
Death Benefits for Eligible Spouse .........................................................25

4.2       Death
Benefits in Absence of Surviving Eligible Spouse .........................................26

4.3       Special
Military Death Benefit ...............................................................................26

 

ARTICLE
VVESTING AND TERMINATION OF EMPLOYMENT........................................27

 

5.1       Vested
Interest .....................................................................................................27

5.2       Method
of Payment of Benefits to Member Separating
from Service

before Retirement Date..........................................................................................28

5.3       Lump
Sum Cash-Out Distribution...........................................................................28

5.4       Buy-Back
..............................................................................................................28

5.5       Determination
Of Present Value .............................................................................29

 

ARTICLE
VILIMITATIONS
ON BENEFITS, NON-DISTRIBUTION

ALIENATION
AND ASSIGNMENT, AND RIGHTS OF MEMBERS ........30

 

6.1       Limitation
on Benefits for Limitation Years Beginning Before July 1,

2007 ....................................................................................................................30

6.2       Limitation
on Benefits for Limitation Years Beginning On or After July 1,

    	 

    	 

    

Table of Contents

(continued)

  

Page

 

 

6.3       Special
Rules for Benefits Payable to Highly Compensated
Employees ................37

6.4       No
Assignment of Benefits..................................................................................37

6.5       Commencement
of Benefits ................................................................................38

6.6       Minimum
Distribution Requirements: ...................................................................39

6.7       Reversion
............................................................................................................47

 

ARTICLE
VIICONTRIBUTIONS BY THE EMPLOYER
.......................................................48

 

7.1       Employer
Contributions .....................................................................................48

7.2       Funding
and Investment Policy ...........................................................................48

7.3       Payment
of Expenses..........................................................................................48

 

ARTICLE
VIIIAMENDMENT AND TERMINATION OF PLAN
..........................................49

 

8.1       Right
to Amend ..................................................................................................49

8.2       Right
to Terminate...............................................................................................49

8.3       Allocation
upon Termination ................................................................................49

8.4       Vesting
upon Termination or Partial Termination ..................................................49

8.5       Distributions
upon Termination ............................................................................49

8.6       Reversions
upon Termination...............................................................................50

 

ARTICLE
IXPLAN
ADMINISTRATOR..................................................................................51

 

9.1       Designation
..........................................................................................................51

9.2       Compensation
and Records .................................................................................51

9.3       Duties
and Powers; Claims Review Procedures....................................................51

9.4       Authorization
of Payments ...................................................................................53

9.5       No
Discrimination ...............................................................................................53

9.6       Retention
of Agents .............................................................................................53

 

ARTICLE
XTHE TRUST FUND AND TRUSTEE....................................................................54

 

10.1       General..............................................................................................................54

10.2       Disposition
of Trust Fund...................................................................................54

10.3       Right
of Removal ...............................................................................................54

10.4       Powers
of Trustee .............................................................................................54

10.5       Interest-Bearing
Deposit With Employer ............................................................54

10.6       Integration
of Trust Agreement ...........................................................................54

 

ARTICLE
XIMISCELLANEOUS
PROVISIONS
.....................................................................55

 

11.1       Prohibition
Against Diversion ..............................................................................55

11.2       Prudent
Man Rule ..............................................................................................55

11.3       Responsibilities
of Parties ...................................................................................55

11.4       Reports
Furnished Members...............................................................................55

11.5       Reports
Available to Members ...........................................................................55

    	 

    	 

    

Table of Contents

(continued)

 

  

    Page

 

 

11.7       Merger
or Consolidation of Employer ..............................................................56

11.8       Plan
Continuance Voluntary.............................................................................56

11.9       Suspension
of Contributions.............................................................................56

11.10 Agreement Not An Employment
Contract ............................................................56

11.11 Facility
of Payments ............................................................................................56

11.12 Unclaimed Benefits ..............................................................................................57

11.13 Governing Law ....................................................................................................57

11.14 Headings No Part of Agreement...........................................................................57

11.15 Merger or Consolidation of Plan ...........................................................................57

11.16 Indemnification.....................................................................................................58

11.17 Direct Transfer of Eligible Rollover Distributions....................................................58

 

ARTICLE
XIITOP-HEAVY
PROVISIONS............................................................................60

 

12.1       Application
.......................................................................................................60

12.2       Definitions
........................................................................................................60

12.3       Accrual
of Minimum Benefit .............................................................................60

12.4       Vesting.............................................................................................................61

12.5       Post-EGTRRA
Top-Heavy Provisions .............................................................61

 

ANNEX A.............................................................................................................................
A-1

 

ANNEX B...............................................................................................................................B-1

 

 

 

24079548v1iii

    	 

    	 

    

SOUTHWEST GEORGIA FINANCIAL
CORPORATION PENSION RETIREMENT PLAN

 

SOUTHWEST
GEORGIA FINANCIAL CORPORATION, a holding
company organized under the laws of the State of Georgia, (the
“Employer”) hereby amends
and restates the Southwest Georgia Financial Corporation Pension Retirement Plan (the “Plan”), generally
effective as of January 1,
2015.

 

W I T N E S SE
T H:

 

Effective
January 1, 1976, the Plan was established by
the Employer
to assist its Employees
in providing a life income for their support after they
have retired from the employment
of the Employer.

 

Effective
as of January 1, 2000, the Plan was amended
and restated to conform to the provisions of the Internal Revenue Code of 1986, as amended (the “Code”), the Employee
Retirement Income Security Act
of 1974 (“ERISA”), the pension provisions of the General Agreement on Tariffs and
Trade (“GATT”); the Uniformed Services Employment
and Reemployment Rights Act of 1994 (“USERRA”), the Small Business Job
Protection Act of 1996 (“SBJPA”), the Tax Reform Act of 1997 (“TRA
‘97”), the Internal Revenue Restructuring and Reform Act of 1998, and the Community Renewal Tax Relief Act of 2000.

 

Effective
as of March 1, 2005, the Plan was amended and restated to incorporate the prior amendments to the Plan, including certain provisions
required by the Economic Growth
and Tax Relief Reconciliation Act of 2001 (“EGTRRA”), and for certain other purposes (the
“2005 Amendment and Restatement”). The provisions of the 2005 Amendment and Restatement only
apply to
those eligible employees
who terminate employment
with the Employer
on or after
March 1, 2005, or such later date as may apply
for a provision which becomes effective after. Benefits payable
to or on behalf of a Member who terminates employment prior to March 1,

2005 shall not be affected by
the terms of any
Plan amendment adopted after such Member’s
termination of employment, unless the amendment provides otherwise.

 

Effective
December 31, 2006, the Plan was frozen as provided herein. No new Members are allowed to
enter the Plan after December 31, 2006 and, except as otherwise provided, no additional
benefits shall accrue under the Plan after December 31, 2006.

 

The Employer
again amended and restated the Plan,
generally effective as of January 1, 2009,
to reflect good faith compliance with final regulations under Code Section 415, the
requirements of the Pension Protection Act of 2006, the
Worker, Retiree and Employer Recovery
Act of 2008, the Heroes Earnings Assistance and Relief Tax Act of 2008 and for certain
other purposes.

 

The
Employer now desires to amend and restate
the Plan to comply with
the Small Business Jobs Act of 2010 (“SBJA”),
the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of
2010 (“PRA 2010”), the Moving Ahead for Progress in
the 21st Century Act (“MAP-21”),
the American Taxpayer
Relief Act of
2012 (“ATRA”) and the applicable
statutory or regulatory
changes included on the 2013 Cumulative List.
Except as otherwise provided, this amendment and restatement shall be effective as of January 1, 2015.

    	 

    	 

    

 

Except
as otherwise provided herein, the provisions of the amended and restated Plan
only apply to
those eligible employees
who terminate employment
with the Employer
on or after
January 1, 2015 or such later date as may
apply for a provision which becomes effective
after January 1, 2015. Benefits payable
to or on behalf of a Member who terminates employment prior to January 1, 2015 shall
not be affected by the terms of any
Plan amendment adopted after such Member’s
termination of employment, unless the
amended and restated Plan or applicable law provides otherwise.

    	 

    	 

    

ARTICLE
I CONSTRUCTION AND DEFINITIONS

Any
words herein used in the masculine shall be read and construed in the

feminine where appropriate. Words in the singular
shall be read and construed as though used in the plural in all cases where the context so requires.

 

As used herein, the following
words and phrases shall have the meanings specified below, unless a different meaning
is plainly required by the context:

 

1.1
The term “Accrued Benefit” as of any
date shall be, in the case of a Member who is
credited with at least one (1) Hour of Service on or after January 1, 1988,
equal to the
Monthly Retirement Income calculated pursuant to Section 3.2(b), 3.2(c), or
3.2(d) (using his Average Monthly Earnings
as of the date of calculation). In no event,
however, shall any Member’s Accrued
Benefit as of:

 

(a)January
1, 1988, be less than it was on December 31, 1987;

 

(b)       January
1, 2000 be less than it was on December 31, 1999; and

 

(c)January
1, 2001 be less than it was on December 31, 2000.

 

Notwithstanding the preceding,
the Plan is frozen as of December 31, 2006, as provided herein.

 

1.2
The term “Actuarial Equivalent” shall mean a benefit of equivalent
value determined in accordance with the provisions of the Plan, as certified by the
Actuary. Effective January 1, 2000, the term
“Actuarial Equivalent” shall mean a form of benefit differing in time,
period or manner of payment
from a specific benefit provided under the Plan but having the
same value when computed using mortality according to the 1971 Group
Annuity Mortality Table for males and an 8%
per annum compounded interest rate. Notwithstanding the foregoing, for the purposes
of determining the amount of any lump sum payment
under the Plan paid on or after January
1, 2000, the mortality table shall be the table prescribed by the Commissioner of
Internal Revenue pursuant to Rev. Rul. 95-6 (as hereafter amended or
modified) and the interest rate shall equal the annual rate
of interest on 30-year
Treasury securities as published by
the Commissioner of Internal Revenue for
the second full calendar month preceding
the first day of the Plan Year during which
occurs the date of distribution commencement. For
purposes of determining the amount of any
lump sum payment
under the Plan paid prior to January 1, 2000, the interest rate shall
be the Applicable Interest Rate under Section 5.5(d) of
the prior plan document and the 1971 Group Annuity Mortality
Table for males. Effective for distributions with an Annuity Starting Date on or after
December 31, 2002 but before January 1, 2008, the applicable mortality table to be
used for purposes of: (i) satisfying the requirements of Code Section 417(e) as set forth in Sections 5.3 and 5.5
of the Plan; and (ii) adjusting any benefit
or limitation under Code Section 415(b)(2)(B), (C), or (D) as set
forth in Section 6.1 of the
Plan, shall be the applicable mortality table prescribed in
Rev. Rul. 2001-62, the 1994 Group Annuity
Reserving Table (94 GAR).

    	 

    	 

    

Notwithstanding
the foregoing, for the purposes of determining the
present value of a benefit payment
that is subject to Code Section 417(e) on or after January 1, 2008, the
applicable interest rate shall be the
adjusted first, second, and third segment rates applied under
the rules similar to the rules of Code Section 430(h)(2)(C) for the second month
preceding the first day of the Plan Year
in which the annuity starting date occurs (stability period).
For this purpose, the first, second, and third segment rates are
the first, second, and third segment rates which would be determined under Code Section
430(h)(2)(C) if:

 

(a)
Code Section 430(h)(2)(D) were
applied by substituting the average yields
for the month described in the preceding paragraph for the average yields
for the 24-month period described in such section, and

 

(b)       Code
Section 430(h)(2)(G)(i)(II) were applied by substituting “Section

417(e)(3)(A)(ii)(II) for
“Section 412(b)(5)(B)(ii)(II),” and

 

(c)
The applicable percentage under Code Section 430(h)(2)(G) is treated as being 20% in
2008, 40% in 2009, 60% in 2010, and 80% in 2011; and

 

the applicable mortality
table shall be the annual mortality table,
modified as appropriate by the Secretary
of the Treasury based on the mortality table specified for the Plan Year
under subparagraph (A) of Code Section
430(h)(3) (without regard to subparagraph (C) or (D) of such section) as published
in rulings, notices or other guidance. In the event there is a change to the
published mortality table, such change shall be effective as of the latest permissible date as set forth in such published
rulings, notice or other guidance issued by the Secretary of the Treasury.

 

1.3       The
term “Actuary” shall
mean an individual enrolled by the Joint
Board for the

Enrollment of Actuaries
under Section 3042 of the Employee Retirement Income Security
Act of

1974, as amended from time
to time (“ERISA”),
or a firm of actuaries, at least one of whose members has been so enrolled.

 

1.4       The
term “Anniversary Date”
shall mean January 1 of each year.

 

1.5
The term “AnnuityStartingDate”
shall mean the first day of the
first period for which an amount is received or receivable as an annuity or, in the
case of a benefit not payable in
the form of an annuity, the first
day on which all events have occurred which entitle the relevant Member to such benefit.

 

1.6
The term “Average Monthly Earnings”
(as of any date specified in the Plan provision in question) shall mean an Employee’s
average monthly Earnings for the period of sixty
(60) consecutive months within the preceding
ten (10) year
period which shall produce the highest average for him. If the Employee
has completed less than sixty
(60) consecutive months of service prior
to the respective date, the term “Average Monthly Earnings”
shall mean the average of the Monthly Earnings
for the months immediately preceding such date. Notwithstanding the foregoing, this
Plan shall only take into account the Monthly
Average Earnings that are earned for periods of service prior to the Freeze Date.

 

1.7       The
term “Beneficiary”
shall mean, in the case of a married Member,
the Eligible

Spouse of such Member, provided
the Eligible Spouse survives the Member and does not

    	 

    	 

    

consent to the designation
of another Beneficiary in accordance with Sections 3.6, or 5.2 of this Plan and Code
Section 417(a)(2)(A). In the case of any
other Member, the term “Beneficiary”
shall mean the person or persons,
including any estate or trust, designated
from time to time by such Member
(in such form
as the Plan
Administrator may prescribe
and with such
priorities and conditions as the Member
shall specify and the Plan Administrator shall agree
to) to receive any death benefit that
may be payable
hereunder, if such person or persons survive the Member and are in existence after the Member’s death. If
a deceased member is
not survived by
a Beneficiary determined under the above provisions of this Section 1.7, or if no
Beneficiary is effectively named under the above provisions of this Section 1.7, the
Beneficiary shall be deemed to be the
person or persons in
the first of the following
classes of beneficiaries
with one or more
members of such class then surviving or in existence;

 

(a)
The Member’s surviving Eligible Spouse; (b) The Member’s descendants, per stirpes; or (c)
The Member’s estate.

1.8       The
term “Board” or “Board
of Directors” shall mean the Employer’s
Board of

Directors.

 

1.9
The term “BreakinService”
shall, as a general rule, mean a 12-month eligibility,
vesting or benefit accrual computation period during which the
Employee has not completed more than 500 Hours of Service. The aggregate Break in Service
shall be the number of consecutive 12-month
computation periods during which the Employee
has not completed more than 500 Hours of
Service. If the respective 12-month
computation periods is to switch pursuant to the definition of Year of Service and
if the Employee does not complete more than 500 Hours of Service during the last
12-month computation period that commences prior to the
switch, the

12-month
computation period for determining whether the Employee
incurs consecutive one year Breaks in
Service shall continue to be based on the
12-month computation period in effect
before the switch
until more than
500 Hours of
Service are completed during one
such 12-month
computation period.

 

Notwithstanding
any provision of this Plan to
the contrary, for purposes of determining whether a Member incurs a Break in
Service for the respective computation period, such Member shall be credited with up to 501 Hours of Service for a “birth-related”
absence. For these purposes, an Employee’s
absence from work shall be regarded as “birth-related” if it
is occasioned by that Employee’s
pregnancy,
is by reason of
the birth of a child of that Employee
or the placement of a child with
the Employee in connection with the
adoption of such child by that Employee,
or is for the purpose of caring for such
child for a period beginning immediately after
the birth or placement. The Employee shall
be credited with up to 501 Hours of Service which otherwise would normally have been
completed by that Employee but for such “birth- related” absence. If
it is not possible to determine the Hours
of Service which otherwise would normally
have been completed, that Employee shall
be deemed to complete 8 Hours of Service for each normal workday of
absence, not to
exceed 501 Hours
of Service in
the aggregate. These
Hours of Service shall be credited during the computation period during which
the absence begins if the Employee
does not otherwise complete more than 500 Hours of Service during that

    	 

    	 

    

computation period;
otherwise, these Hours of Service shall be credited during the immediately following
computation period. No credit shall be given
for a “birth-related” absence, however, unless the Employee
furnishes to the Plan Administrator such timely information as shall be
reasonably necessary,
in the Plan Administrator’s discretion, to establish the existence of a “birth-related”
absence and the length of that “birth-related” absence.

 

Notwithstanding
any provision
of this Plan to the contrary,
a Member will not incur a Break in Service while on qualified military service in
accordance with the terms of Code Section 414(u)(8) and the provisions of the Uniformed
Services Employment and Reemployment
Rights Act (USERRA).

 

1.10
The term “Code” shall
mean the Internal Revenue Code of 1986,
as amended from time to time. All references herein to the Code shall be deemed to
refer to the Internal Revenue Code of
1986, and the regulations established pursuant thereto, as they now
exist or as they
may hereafter be
amended. Any reference herein to a specific
section of the Code shall be deemed to refer to such section and the regulations established
pursuant thereto, as they now exist or as
they may hereafter be amended.

 

1.11
The term “Death Benefit” shall mean any
benefit paid to an Eligible Spouse or Beneficiary at the death
of a Member, Terminated Member, or Retired Member, as provided under the terms of the
Plan.

 

1.12
The term “Early Retirement Date”
shall mean, in the case of
each Member who has attained the age of
55 and has completed at least 15 Years
of Service, the first day of the month immediately
following or
coincident with the
later of (a)
the date such Member leaves
the employ of the
Employer in accordance with Section 3.4
hereof or (b) the date the Member directs
in writing shall be his Early Retirement Date. Notwithstanding anything
herein to the contrary, for purposes of determining whether
a Member has satisfied the eligibility requirements for Early
Retirement, he shall receive credit for all Years of Service completed after the Freeze
Date.

 

1.13
The term “Earnings” shall
mean compensation which is paid to a Member by the
Employer during the Plan Year
and which is includable in the Member’s gross income for
federal income tax purposes, as reported on the Member’s Form W-2;
provided, however, that the following income shall
be excluded (i) any and all commission income
and (ii) income from the exercise of stock options, stock appreciation rights, restricted
stock, restricted stock units and similar grants. Any amounts contributed by
the Employer
on behalf of an Employee
pursuant to a salary reduction
agreement which is not includable in the gross income of the Employee
under Code Sections 125, 132(0(4), 401(k), 402(a)(8), 402(h) or 403(b) shall be included
in Earnings. Prior to January 1, 1997, in the case of a Member who is a member of
the family of: (i) a 5% owner or (ii) a Highly
Compensated Employee
in the group consisting of the ten Highly Compensated Employees
paid the greatest annual earnings during such Plan Year, each as
determined under Section 414(q)(6) of the Code, as in effect prior to January
1, 1997, the Member’s annual Earnings, for all Plan Years prior to January 1,
1997, shall include any annual Earnings
received from the Employer
by such Member’s spouse and any lineal descendants of
the Member who have not attained age 19 before the close of such Plan Year.
The Earnings of any Member taken
into account in
determining benefit accruals
under the Plan
for any Plan
Year

    	 

    	 

    

beginning after December
31, 2001, shall not exceed $200,000 as
adjusted for cost-of-living
increases in accordance with Section 401(a)(17)(B) of the Code and such limit shall
be retroactively applied to determine such Member’s benefit. Thus Earnings of
any Member taken into account in
determining benefit accruals under the Plan for any
Plan Year beginning after December 31, 2004, shall
not exceed
$210,000. Earnings means compensation during the Plan Year or such other consecutive 12-month
period over which compensation is otherwise determined under the Plan (the determination
period). The $210,000 limit on earnings shall be
adjusted for cost-of-living increases
in accordance with Code Section 401(a)(17)(B).
The cost- of-living adjustment in effect for a calendar year applies to Earnings for
the determination period that begins with or within such calendar year. Notwithstanding the foregoing, this Plan shall only
take into account the Earnings that are earned for periods of service prior to the
Freeze Date and Earnings that are earned for periods of service after
the Freeze Date shall not be taken into account for purposes of the Plan.

 

1.14
The term “Effective Date”
shall mean the date on which this amendment and restatement is effective, January
1, 2015, except where otherwise indicated in the text of this Plan. The original effective
date of the Plan was January 1, 1976.

 

1.15
The term “Eligible Spouse”
shall mean the legally married
spouse of the Member at the earlier of the Member’s date of death or the Member’s
Annuity Starting Date, provided the Member and his spouse have been married for at least
one year
as of such date. However, if a Member marries within one (1) year
before his Annuity Starting Date and the
Member and such Spouse have been married for at least one (1) year
on or before the date of the Member’s death, such persons shall be
treated as having been married one (1) year on
the Member’s Annuity Starting Date.

 

1.16
The term “Employee”
shall mean any person who is an Employee
(such term having its customary meaning) of
the Employer and who is receiving remuneration
for personal services rendered to the Employer (other than as an independent contractor).
In addition, the term Employee
shall include leased employees
within the meaning of Code Section 414(n)(2) unless (i) such leased employees
constitute less than twenty percent (20%) of the Employer’s
non- highly compensated work force
within the meaning of Code Section 414(n)(5)(C)(ii), and (ii) such leased employees
are covered by a plan described in Code
Section 414(n)(5), in which event such leased employees
shall not be considered Employees
for purposes of this Plan. Leased employees
shall not be eligible to participate in this Plan. Further, the following Employees
shall not be eligible to participate in the Plan:

 

(a)
Employees
whose terms and conditions of employment
are determined by collective bargaining with
a union or an affiliate thereof representing such persons and with
respect to whom inclusion in the Plan has not been provided for in the
collective bargaining agreement;

 

(b)       Any
individual who is an independent contractor.

 

An independent
contractor who is recharacterized by the Internal Revenue Service as a common law employee
will not be considered as described in paragraph (b) for periods on and after the
recharacterization. The individual also will not be considered
as described in

    	 

    	 

    

paragraph (b) for periods
before the characterization, unless the Employer
has classified the individual as an independent contractor in good
faith, and the individual was part of a group of
independent contractors identified by similar work requirements. An individual’s
ineligibility under the previous sentence has no bearing on whether the
individual is an excludable employee
for purpose of the nondiscrimination tests under Code Sections 401(b) and 401(a)(4).

 

1.17
The term “Employer”
shall mean Southwest Georgia Financial Corporation, its
successors and assigns, and, subject to the provisions of Section 11.7, any
business into which the Employer
may be merged or consolidated or to which
substantially all of its assets may be
transferred. The term shall also mean Southwest Georgia Bank,
any other
affiliate of Southwest Georgia Financial Corporation which shall, with Southwest Georgia
Financial Corporation’s prior written consent, adopt this Plan, and any
successor or assign of such an Employer.
In the event such an affiliate does so
become a participating employer,
it shall contribute to the Plan, and its
Employees
shall be entitled to benefits thereunder, in accordance with its term, subject to
the following special provisions:

 

(a)
The contribution of each Employer shall be equal to that amount necessary to fund
the benefits accrued by its Employees
in accordance with the funding methods and policies established under Article VII
hereof.

 

(b) In
computing the Hours of Service of a person
who is in the employ of only one
of the Employers
hereunder at the same time, the period of
service of such person with any of the Employers
shall be counted, and a transfer of an
Employee from the employment
of one Employer
to the employment of another shall
not interrupt his service, nor shall such a transfer constitute a termination of employment
under the terms of this Plan.

 

(c)
In the event of
a transfer of any Member from the employment
of one employer to the Employment of another
Employer, he shall be considered and treated thereafter as a Member who is an Employee
of the Employer to which he is transferred,
except, if such Member thereafter forfeits
all or a part
of his interest
under any of
the provisions of
the Plan, the
Plan Administrator shall divide such forfeiture for the
purpose of allocation in an equitable manner, considering all the circumstances, between the two Employers.

 

In
the event of such a transfer, the contribution
of each Employer
with respect to the accrued benefits of such transferring Member shall be an amount
determined by allocating the total contribution
thus necessary to the Employers on the
basis of the amount of wages or
salary earned with each such Employer during its fiscal year
in which the transfer takes place.

 

1.18       The
term “ERISA” shall
mean the Employee
Retirement Income Security Act of

1974, as amended from time
to time, and the regulations established pursuant thereto, as they now exist
or as they may hereafter
be amended. Any
reference herein to a specific section of ERISA
shall be deemed to refer to such section and the regulations established pursuant
thereto, as they now exist or as they may hereafter be amended.

 

1.19
The term “Forfeiture”
shall mean the portion of a Member’s Accrued Benefit which is not vested in
accordance with Section 5.1, and which is applied as
provided in the Plan to reduce Employer
contributions which would otherwise be required.

    	 

    	 

    

1.19A The term “Freeze
Date” shall mean December 31,
2006, the date on which the

Plan is frozen for purposes of new Members and accrual
of benefits, as set forth herein.

 

1.20       The
term “Hour of Service” or “Hour” means:

 

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

 

(b) 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),
jury duty,
military duty or
leave of absence,
provided, however, that
under this paragraph (2):

 

(i) No
more than 500
Hours of Service
shall be credited
for any single
continuous period (whether or not such period occurs in a single computation period)
during which the Employee performs no duties;

 

(ii)
No hours shall be credited if such payment
is made or due under a plan maintained by the
Employer
solely for
purposes of complying with applicable
worker’s compensation, unemployment insurance or disability insurance laws;
and

 

(iii)       No
hours shall be credited for a payment which
reimburses an

Employee
for medical or medically related expenses incurred by the Employee; and

 

(c)
Each hour for which back pay,
irrespective of mitigation of damages, is either awarded or agreed to by
the Employer.
These hours shall be credited to the Employee
for the computation period
to which the
award or agreement
pertains rather than the
period in which
the award, agreement, or payment
is made. The same Hours of Service shall not be credited under paragraphs (a)
or (b), as the case may
be, and this paragraph (c).
Crediting of hours for back pay awarded
or agreed to
with respect to
periods described in paragraph (b) shall be
subject to the limitations of that paragraph.

 

(d) Hours
of Service credited under the Plan shall
be calculated and credited subject to
the rules and restrictions set forth in Department of Labor Regulations Section

2530.200b-2(b),
(c) and (f) which are incorporated herein by this reference.

 

(e)
The method of determining Hours of Service
under the Plan shall be in
accordance with Department of
Labor Regulations Section 2530.200b-3
and shall be
applied in a consistent and non-discriminatory
manner to Employees or classes of Employees.

 

(f)
Notwithstanding the foregoing, neither an Employee
nor a Member shall earn or be credited
with an Hour of Service after the Freeze Date for purposes of determining eligibility
to participate or to calculate such Member’s Accrued Benefit. Following the Freeze Date, Hours of Service shall continue
to be counted for purposes of determining Years of Service to determine a Member’s
Early Retirement Date pursuant to Section 1.12, his Vested Interest

    	 

    	 

    

determined pursuant
to Section 5.1
and his eligibility
for an
Early Retirement benefit
pursuant to

Section 3.4.

 

1.21
The term “Key Employee”
means an Employee defined
in Code Section 416(i) and the Treasury
regulations thereunder. Generally,
they shall include any Employee
or former employee
(and his Beneficiaries) who, at any time
during the Plan Year or any
of the preceding four Plan Years, is:

 

(a)
an officer of the Employer (as that term is defined within the meaning of the regulations
under Code Section 416) for any such Plan Year having 415 Compensation greater than
$135,000 (as adjusted under Code Section 415(i)(1) for that Plan Year).

 

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

 

(c)a
“one percent owner” of the Employer
having an annual 415

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

 

1.22
The term “LateRetirementDate”
shall mean the first day of any
month which is subsequent to the Member’s Normal Retirement Date and which is
coincident with or immediately following
the day the
Member terminates employment
with the Employer for any
reason other than death.

 

1.23
The term “Member” shall
mean any Employee
of the Employer
who has become a Member as provided in Article II hereof.

 

1.24       The
term “Monthly Earnings”
shall mean 1/12th of Earnings as defined in Section

1.13. A Member’s Monthly
Earnings shall be appropriately adjusted by
the Plan Administrator to an annual basis if he receives compensation for less than the full Plan Year.

 

1.25
The term “MonthlyRetirementIncome”
shall mean a monthly income due to, or
with respect to, a Retired Member which shall
commence as of his Early, Normal, or
Late Retirement Date, or which shall commence upon his death pursuant to the terms
of Section 4.1.

    	 

    	 

    

Such “Monthly Retirement
Income” shall continue for the period indicated in Article III
or IV

hereof.

 

1.26
The term “Normal Retirement Date”
shall mean the first day of
the month coincident with or immediately
preceding the Member’s 65th birthday (“Normal Retirement Age”). A Member shall
become fully vested and his Accrued Benefit shall become nonforfeitable as of his Normal
Retirement Age.

 

1.27
The term “Plan” shall mean the pension plan set forth herein, as
amended from time to time, which is known as the Southwest Georgia Financial Corporation
Pension Retirement Plan.

 

1.28
The term “Plan Administrator”
shall mean the individual or entity (which
may be a committee) which will be
appointed by and
serve at the
pleasure of the
Employer
to administer and manage the Plan in accordance
with Article IX. In the event that the
Employer
has not appointed a Plan Administrator,
or in the event that the Plan Administrator appointed by the Employer
has resigned, been removed or is otherwise disabled from serving, the term Plan Administrator
shall mean the Employer.

 

1.29
The term “Plan Year”
shall mean the twelve month period beginning on January 1 and ending on December 31, which shall also serve as the “limitation
year” for purposes of
Section 415 of the Code.

 

1.30
The term “Qualified Joint and Survivor Annuity”
shall mean an annuity for the life of the Member with a survivor annuity
for the life of his Eligible Spouse which is equal to fifty percent
(50%) of the amount of the annuity payable
during the joint lives of the Member and his Eligible Spouse, and which is
the Actuarial Equivalent
of a 5-year
certain annuity for the
life of the Member.

 

1.31
The term “Retired Member”
shall mean any Member of the
Plan who has terminated his employment
after qualifying for retirement under
Section 3.2, 3.3, 3.4, or 3.5. Retirement shall be considered to commence on the day
immediately following the Member’s last day
of employment
by the Employer
or, if later, the last day of
an authorized leave of absence.

 

1.32       The
term “Sylvester
Plan” shall mean the Sylvester
Banking Company Pension

 

Plan.

 

 

1.33       The term “Sylvester
Member” shall
mean Members in this Plan who are former

members of the Sylvester
Plan who became Members in the Plan as of January 1, 2005 following the merger of the Sylvester
Plan into the Plan.

 

1.34
The term “TerminatedMember”
shall mean a Member who does not retire under Section 3.2, 3.3, 3.4,
or 3.5 hereof or die under
Section 4.1, who incurs a one year
Break in Service, and who has not again become an active Member.

 

1.35       The
term “Total and Permanent Disability”
or “Totally
and Permanently Disabled”

shall mean a physical
or mental condition which totally and
presumably permanently prevents a

    	 

    	 

    

Member from engaging
in any substantially
gainful activity and which entitles the
Member to payment
under the Employer-sponsored
long-term
disability insurance program, assuming that such program is then maintained by
the Employer
and covers the Member.

 

1.36       The
term “Trust Agreement” shall mean the Trust Agreement adopted December

9, 1975, as in effect
as of the effective date of this amendment and restatement of the Plan.

 

1.37       The
term “Trustee” shall
mean the trustee or trustees then serving under the Trust

Agreement.

 

1.38
The term “Trust Fund”
or “Fund” shall mean
all contributions to the Trust together
with the earnings and increments thereon, less disbursements made by
the Trustee in accordance with the terms of this Plan.

 

1.39
The term “Year of Service”
shall mean a 12-month computation period
during which an Employee completes 1,000
or more Hours of Service. The computation period initially to be
taken into account
shall be the
12-month period commencing with the Employee’s
first
day of employment
with the Employer,
whether or not such employment
commenced prior to the original effective date of the Plan. Whether or
not the Employee
is credited with at least 1,000

Hours of Service during
this initial 12-month computation period, the computation period shall thereafter
be the first calendar year commencing after
the date such employment began and shall
include each calendar year
thereafter. In the event such Employee
is credited with at least 1,000

Hours of Service during
the initial 12-month computation period as well as
during his first full calendar year
of employment, such Employee
shall be credited with one Year of Service
plus a fraction of a Year of Service, the numerator of such fractional Year of Service
being the number of months during his first partial calendar year
of such employment
during which he was credited with at
least one (1)
Hour of Service,
and the denominator
of which is
twelve (12). If
an Employee
completes at least 1,000 Hours of Service during such initial 12-month
period and such period overlaps two calendar
years in
neither of which
has the Employee
completed at least

1,000 Hours of
Service, he shall nevertheless be credited with a Year of Service for the Plan
Year in which he becomes a Member of the Plan but shall not
be credited with any fractional Year
of Service as described above. However,
in no event shall this definition be applied to
reduce the benefit of a Member under the Plan computed as of December 31, 1987,
using the definition of Years of Service
previously contained in the Plan.

 

Notwithstanding
any provision of this Section 1.39 or the Plan generally
to the contrary, a Member who is not credited with at least one (1) Hour of Service on or after January
1, 1988, shall receive no credit, for purposes of calculating his Monthly
Retirement Income and Accrued Benefit,
for Hours of Service completed after his Normal Retirement Date. Also, again notwithstanding
any provision
of this Section 1.39 or the Plan generally
to the contrary, if a Terminated Member is
subsequently re-employed
and again becomes a Member, or if a Member’s Break in Service ceases where no
termination of employment has occurred, his “Years of
Service” for vesting
and benefit accrual
purposes shall not
include any periods
of employment
prior to such re-employment
or cessation of Break in Service only if
(i) such Member’s vested percentage pursuant to Section 5.1 was zero as of the
date of termination or commencement of Break in Service, and (ii) the Member’s
Breaks in Service as of his re-employment
or cessation

    	 

    	 

    

of Break in Service equals or exceeds the
greater of 5 consecutive years or
his Years of Service for vesting purposes
as of his termination date or commencement of Break in Service.

 

In
computing Years of Service hereunder, the period of an Employee’s
employment with any
other member of
a group of related
employers
which includes the
Employer
shall be counted
for participation and vesting purposes (but not for accrual of benefits purposes unless such other employer
has also adopted
the Plan), and
a transfer of an
Employee
from the employ
of one such
member to the employ of another member
shall not interrupt such Employee’s service. Related employers
shall be determined under Code Section 414(b), (c), (m) and (n), to include members
of a controlled group or corporations, trades or business under common control, members of an
affiliated service group, and entities related through the leasing of employees.

 

Notwithstanding
anything
herein to the contrary, no Member shall be
credited with any Years of Service after
the Freeze Date for purposes of calculating his
Monthly Retirement Income
and Accrued Benefit. A Member shall continue to receive credit for Years
of Service completed after the Freeze Date solely
for purposes of determining the vested interest in his
Accrued Benefit as set forth in Section 1.12 and eligibility for
Early Retirement as set forth in
Section 5.1.

    	 

    	 

    

ARTICLE II

 

MEMBERSHIP IN THE
RETIREMENT PLAN

 

2.1
Initial Membership. An Employee
who was a Member under the prior provisions of this Plan as of the date immediately
preceding the Effective Date shall remain a Member and shall
continue to participate
in accordance with
the provisions of
this amended and
restated Plan. Notwithstanding any
provision to the
contrary, no Employee
shall become a Member in the Plan after the Freeze Date.

 

2.2
ResumptionofMembership. A Retired or Terminated Member who, prior to the Freeze Date, returns to
the employ of the Employer
or completes a Year of
Service after incurring a Break in Service while still employed
by the Employer,
shall again become a Member as of the Anniversary Date occurring within
the Plan Year in which he is re-employed
or in which he completes a Year of
Service following the Break in Service, whichever is applicable. Any
such Member’s benefit payments
shall thereupon be suspended as provided in Section 3.7 of the Plan. If a Retired or Terminated Member is reemployed
as an Employee
prior to the Freeze Date and continues in the employ
of the Employer
through the last day of the Plan Year,
such individual shall resume his Membership for the Plan Year of employment,
even though he completes not more than 500 Hours of Service during such Plan Year.

 

Notwithstanding
anything
herein to the contrary,
a Retired or Terminated Member who, after the Freeze Date, returns to the employ of
the Employer
or completes a Year
of Service after
incurring a Break in Service while still employed
by the Employer,
shall not resume Membership in the Plan; provided, however, such Member may
receive credit for additional Years
of Service upon reemployment
to the extent provided herein.

 

2.3
Termination. Membership in this Plan shall continue until such Member incurs
a Break in Service, retires in accordance with Section 3.2, 3.3, 3.4, or 3.5,
dies or becomes a Terminated Member as contemplated in Section 5.1 of the Plan.

 

2.4       Membership
Requirement Effective as of May 1, 1999. Notwithstanding Section

2.1, effective May 1,
1999, any Employee
who is employed
exclusively on a commissioned basis shall not be eligible to participate in the Plan.

 

2.5       Qualified
Military Services.

 

(a)
USERRA Provisions. Notwithstanding any
provision of this Plan to the contrary,
contributions, benefits, and service credit with respect to qualified military service
will be provided as required under Code Section 414(u).

 

(b)       HEART
Provisions.

 

		(i)	Continued Benefit Accruals. In
the case of death or Total and Permanent Disability occurring on or after January
1, 2007, the Plan shall not provide any
continued benefit accruals under the Plan
in the case of a Participant
who dies or becomes Totally and
Permanently Disabled while performing qualified military service.

    	 

    	 

    

		(ii)	Differential Wage Payments.
Subject to all other provisions of the Plan, for Plan Years
beginning on or after January 1, 2009,
if a Participant on qualified military service receives a differential wage payment
(as defined in Code Section 3401(h)(2)), he or she
shall be treated as an Employee
of the Employer
making the payment,
and the differential wage payment
shall be treated as compensation for all purposes of applying
the Code except for purposes of determining benefit accruals under the Plan.

 

2.6
MoultrieInsuranceAgencyMembership.
Prior to the Freeze Date and subject to Section
2.4, an Employee who had been employed
by Southwest Georgia Insurance Services,
Inc. (a/k/a Moultrie Insurance Agency) on or after May 1, 1999 became a Member on
the date he first was employed by
an Employer
and met the requirements of Section 2.1 where Years of Service included service under
Southwest Georgia Insurance Services, Inc. from and after May
1, 1999 so long as it did not
otherwise duplicate Service under this Plan. No individual can become a Member in
this Plan after the Freeze Date.

 

2.7
WaiverofParticipation. An Employee,
leased employee, independent contractor,
Beneficiary or
other person with any claim
to benefits under the Plan who provided the Plan Administrator with a knowing,
voluntary and irrevocable waiver of benefits
under the Plan in a form satisfactory to the
Plan Administrator was not be eligible to participate in or
receive benefits from the Plan and was for all purposes treated as ineligible.

 

2.8
EmpireFinancialServices,Inc.Membership. Effective January
1, 2002, Empire Financial Services, Inc., a subsidiary company
of Southwest Georgia Financial Corporation, became an adopting Employer
in accordance with Section 1.17 of the Plan. Effective January
1,

2002 and prior to the
Freeze Date, Employees
of Empire Financial Services were eligible to participate in the Plan provided, however,
that service under the Empire Financial Services, Inc. Profit Sharing Plan shall be recognized for eligibility
and vesting but not for accrual of benefits under the Plan. No individual can become
a Member in this Plan after the Freeze Date.

 

2.9
SylvesterBankingCompanyMembership.
Effective as of February 27,
2004, the service of Employees who
were employed
by Sylvester
Banking Company on the immediately preceding
day will be counted as Hours of Service
for purposes of determining eligibility under the Plan. Such Employees
who met the Plan’s eligibility
service requirements on February 27,

2004 were immediately eligible
to participate in
the Plan. In
addition prior service
with Sylvester
Banking Company shall be recognized for
calculating vesting but not for purposes of determining a Member’s
Accrued Benefit under the Plan (except as provided in Section 2.10
with respect to the Member’s benefit under the Sylvester
Plan).

 

2.10       Sylvester
Banking Company Pension Plan. Each
participant in the Sylvester

Banking Company
Pension Plan (the “Sylvester
Plan”) as of
the close of business on December

31, 2004, shall, in connection
with the merger of the Sylvester Plan into
the Plan, become a Member in the Plan effective as
of the earlier of the date specified in
Section 2.9 or the close of business on
December 31, 2004. The Plan Administrator shall maintain records adequate to permit
the determination of the amounts transferred attributable to a Sylvester
Member’s frozen accrued benefit under the Sylvester Plan.

    	 

    	 

    

ARTICLE III

 

MONTHLY RETIREMENT
INCOME

 

3.1
General. Any Member
who terminates his employment with the
Employer on or after his Early,
Normal, or Late Retirement Date or by
reason of Total and Permanent Disability
shall qualify for retirement under Sections 3.2, 3.3,
3.4, or 3.5, and his Accrued Benefit
shall be fully vested. Monthly
Retirement Income payable
under the terms of this Article shall be subject to the restrictions and limitations of Article VI
and shall be paid by
the Trustee only by
or at the direction of the Plan Administrator.
Neither the Employer,
the Plan Administrator, nor the Trustee shall be under any obligation
to pay any
Monthly Retirement Income other than from the Trust Fund.

 

3.2       Normal
Retirement.

 

(a)Benefit
Computations Prior to January 1, 1988 [Historical provision]. Each
Member who is not credited with at least one (1) Hour of Service on or after January
1,

1988, who lives to his Normal
Retirement Date and who retires on such date shall be entitled to a monthly retirement
benefit, commencing on his Normal Retirement Date, equal to the greater of
(1) $100 or (2) 20% of
his Average Monthly Earnings, plus 15% of his Average
Monthly Earnings in excess
of $1,000, plus
.5% of his
Average Monthly Earnings multiplied
by his Years
of Service as of his Normal Retirement
Date. Such monthly retirement
benefit is then multiplied by a fraction,
the numerator of which is such Member’s Years of Service as of the date of calculation and the
denominator of which is such Member’s Years of Service at his Normal Retirement
Date if he were to live and remain in the
employ of the Employer
until his Normal Retirement Date. If the
Member has less than 15 Years of Service,
his monthly retirement benefits as determined
under (1) or (2) above shall be reduced by 1/15th for each Year of Service less than 15, but
such reduction shall in no event reduce
the Member’s monthly retirement
benefit to less than two percent (2%) of his Average Monthly Earnings for
each Year of Service not in excess of ten (10) Years of Service. All
such monthly benefits shall be computed
to nearest dollar, with fifty cents ($.50) being regarded as the next higher dollar.

 

(b)       Benefit
Computations After December 31, 1987 And Prior to January 1,

1989[Historicalprovision].
In the case of a Member who retires on his Normal Retirement Date and who is credited
with at least one (1) Hour of Service on or after January
1, 1988 but is not credited with (1) Hour
of Service on
or after January
1, 1989, such
Member shall be
entitled to a monthly
retirement benefit commencing on his Normal Retirement Date
equal to (1) a basic monthly
benefit of thirty-five
percent (35%) of such Member’s Average Monthly
Earnings plus (2) an excess benefit equal
to three-fourths of one percent (.75%) of such Average Monthly Earnings in excess
of one thousand six hundred
sixty-six
dollars and sixty-seven cents
($1,666.67) multiplied by the Member’s Years of Service not in excess
of thirty-five (35) Years of Service.
Such monthly retirement benefit is then
multiplied by a fraction, the numerator
of which is such Member’s Years of
Service as of the date of calculation and
the denominator of which is such Member’s Years
of Service at his Normal Retirement Date
if he were to live and remain in the employ of the Employer
until his Normal Retirement Date. The Member’s total monthly benefit so computed
shall be reduced by 1/15th for each
Year of Service fewer than 15 credited to such Member. Provided, however, that in
no event shall the application of this

    	 

    	 

    

Section 3.2(b) result
in a Member’s Accrued Benefit on or after January 1,
1988, being less than such Member’s
Accrued Benefit determined as of December 31, 1987, based upon such Member’s
Years of Service and Average Monthly Earnings as of December 31, 1987.

 

(c)Benefit
Computations After December 31, 1988 and Prior to January 1,

2001[Historicalprovision].
In the case of a Member who retires on his Normal Retirement Date (or otherwise terminates
employment) and who is
credited with at least one (1) Hour of Service on or after January
1, 1989 but is not credited with (1) Hour of
Service on or after January 1,

2001, such Member shall
be entitled to a monthly retirement benefit commencing on his Normal

Retirement Date equal
to the sum of (i) and (ii):

 

(i)       a
basic monthly benefit of thirty-five
percent (35%) of such

Member’s Average Monthly Earnings multiplied
by:

 

		(1)	his Years of Service as
of his date of termination of employment
or other termination of Service divided by the
Years of Service he
would have if he continued in employment
to his Normal Retirement Date; and

 

		(2)	a fraction equal
to the Years
of Service he
would have if he continued in employment
to his Normal Retirement Date divided by 15; provided that this fraction is only
applied to a Member if he would have fewer than fifteen (15) Years of Service at his
Normal Retirement Date (or if he is employed
after his Normal Retirement Date, at his Late
Retirement Date);

 

(ii)
an excess benefit equal to .72%, subject to Section 3.2(h), of
such Average Monthly Earnings in excess of one thousand four hundred sixteen dollars
and sixteen cents ($1,416.16) multiplied by the Member’s
Years of Service at his date of termination or other termination of Service not in excess of thirty-five
(35) Years of Service.

 

In
no event shall the application of this Section 3.2(c) result in a Member’s Accrued Benefit on or after January
1, 1989, being less than such Member’s Accrued Benefit determined as of December 31, 1988, based upon such Member’s
Years of Service and Average Monthly Earnings as of December 31, 1988.

 

(d)       Benefit
Computations After December 31, 2000 [Current Provision].
Effective as of the Freeze Date, no additional benefits shall accrue under the Plan.

 

(i) In
the case of a Member who is not a Sylvester
Member and who retires on his Normal Retirement Date (or otherwise terminates employment)
and who is credited with at least one (1) Hour of
Service on or after January
1, 2001, such Member shall be entitled to a monthly retirement
benefit commencing on his Normal Retirement Date equal to the sum of (1) and (2) below.

    	 

    	 

    

		(1)	The Member’s Accrued Benefit as of
December 31, 2000 determined as if such date were a date of termination of employment
but with Average Monthly Earnings determined
as of the date of actual termination of employment.

 

		(2)	46% of the Member’s Average Monthly Earnings multiplied by

 

(A)the
ratio of the Member’s Years of Service since

January
1, 2001 divided by all Years of Service; and

 

		(B)	a fraction equal to the Years
of Service he would have if he continued
in employment to
his Normal Retirement Date divided by 25; provided this fraction is only
applied to a Member if he would have fewer than twenty-five
(25) Years of Service at his Normal
Retirement Date (or
if he is
employed after
his Normal Retirement Date, at his Late Retirement Date).

 

(ii)
Normal Retirement Benefit. Each Sylvester
Member shall be entitled to a monthly retirement
benefit commencing on his Normal Retirement Date
equal to:

 

		(1)	the Member’s frozen accrued benefit under the
Sylvester Planconverted using
the Sylvester Plan’s actuarial assumptions
to a 5-year
certain and life monthly retirement income, plus

 

	(2)	(A)	46% of such Member’s Average Monthly Earnings, multiplied by
	 	
         

        (B)
	
         

        an accrual fraction equal
        to the Member’s Years of Service completed after March 1, 2004, divided by the
        Member’s Years of Service at his Normal Retirement Date, if he were
        to live and remain in the employ of the
        Employer
        until his Normal Retirement Date (excluding any
        years of service performed for Sylvester),
        multiplied by

	 	
         

        (C)
	
         

        an accrual fraction equal
        to the Member’s Years of Service at his Normal Retirement Date not in excess
        of 25, divided by 25.

 

Provided however,
that in no
event shall the
application of this
Section 3.2(d)(ii) result
in a Sylvester
Member’s Accrued Benefit on or after March 1, 2004, being less than such
Sylvester Member’s Accrued
Benefit determined as of February 27, 2004 based upon

    	 

    	 

    

such
Sylvester Member’s Years of Service
and Average Monthly Earnings as of February

27, 2004.

 

(e)
Retired Members Entitled to Greater of Past or Current Benefit Formula.
For Plan Years beginning on or after January
1, 1990, any Member who terminated employment
prior to 1988 and who is entitled to a retirement benefit shall have
his retirement benefit recomputed under both the pre-1988 benefit formula contained
in Section 3.2(a) and the post-

1987 benefit formula contained
in Section 3.2(b), and shall be entitled to receive, prospectively from January 1, 1990 forward only,
the greater of the retirement benefits calculated under Sections 3.2(a) or 3.2(b) above.
In no event shall the recomputation of
a Member’s retirement benefit cause or permit a Member to change the
method of benefit payment
such Member previously elected pursuant to Section 3.6.

 

(f)
FormofNormalRetirementBenefit. The monthly
retirement benefit shall be expressed in the form of a 5-year
certain annuity for
the life of the Member, although the actual
form of payment shall be in accordance with the terms of Section 3.6.

 

(g) Effective
as of January 1,
1989, a Member’s benefit
under this Section
3.2 shall in no event be less than the Member’s early retirement benefit calculated
under Section 3.4.

 

(h) Effective
as of January 1, 1989 and as applicable to a benefit determined under Section 3.2(c),
if the Member commences benefits under the
Plan prior to the Member’s reaching his Social Security
Retirement Age (as hereinafter defined) the
..72% excess integration factor in Section 3.2(c) shall be replaced by
..67% if the Social Security Retirement
Age is 66 and .62% if the Social Security Retirement Age is 67.
The “Social Security Retirement Age” shall be as follows:

 

 

 

1, 2000;

(i)       age
65 in the case of a Member who attains age 62 before
January

 

(ii)       age
66 in the
case of a Member
who attains age 62 after
December

31, 1999, but before January 1, 2017; and

 

 

 

31, 2016.

(iii)       age
67 in the
case of a Member
who attains age 62 after
December

 

(i)
Effective as of January 1, 1989, this subsection shall apply to a Member who is (i) credited with a Year of Service both before
1994 and after 1993; and (ii) whose annual compensation in one or more Plan Years prior to
January 1, 1994 exceeded the limit in Code Section
401(a)(17) in effect on January 1, 1994.
Such Member’s benefit under the Plan shall be
the greater of:

 

(i)       such
Member’s Accrued Benefit as of December 31, 1993; and

 

(ii)
such Member’s Accrued Benefit as of his actual date of
termination of employment
or retirement using the benefit formula in Section 3.2(c) based on the Member’s total Years of Service.

    	 

    	 

    

3.3
Late Retirement. Subject to applicable
law and the
Employer’s personnel policies, a
Member may remain in the employ
of the Employer
after his Normal Retirement Date, in which event
no Monthly Retirement
Income shall be paid prior to the Member’s Late Retirement Date. If
a Member does continue his employment with the Employer
beyond
his Normal Retirement Date, he shall be entitled to a monthly
retirement benefit, commencing on his Late Retirement Date, equal
to the monthly retirement
benefit which he would have received under Section 3.2 if he had
retired on his Normal Retirement Date, taking into account his Years
of Service and Average Monthly Earnings
as of his Normal Retirement Date and assuming that the form of payment
ultimately received under Section 3.6
began as of his Normal Retirement Date; provided, however, that a Member who is credited
with at least one (1) Hour of Service on or after January
1, 1988, shall be entitled on his Late
Retirement Date to the greater of his Monthly Retirement Income
computed in the manner provided in Section 3.2(b), 3.2(c), or 3.2(d) but by taking
into account his Years of Service, including
Years of Service credited after his Normal Retirement
Date, (subject, however, to any
applicable Year of Service maximums) and Average Monthly Earnings
as of his Late Retirement Date or the
Actuarial Equivalent of the monthly retirement benefit which he would have
received under Section 3.2 if he had retired on his Normal Retirement
Date. The monthly retirement benefit shall
be expressed in the form of a 5- year
certain annuity for the life of the Member,
although the actual form of payment
shall be in accordance with the terms
of Section 3.6. Notwithstanding the foregoing, except as otherwise provided in Section
6.5 or under applicable law, effective on
and after the Freeze Date, the Member shall not
be entitled to any additional Actuarial
Equivalent increase in the Monthly Retirement Income to which he otherwise would have
been entitled at his Normal Retirement Date or any
increase in Monthly Retirement Income
based on his
compensation and service
after the Freeze Date.

 

3.4       Early
Retirement. A Member who is at least age 55 and has completed at least 15

Years
of Service shall
be eligible for
early retirement
and thus shall
be fully vested. If
a Member does take early retirement, he
shall be entitled to a monthly retirement
benefit, commencing on his Normal Retirement Date, equal to his Accrued Benefit as
of his Early Retirement
Date. Alternatively,
if the Member elects to have his monthly
retirement benefit begin before his Normal Retirement Date,
such Member shall be entitled to a monthly
retirement benefit equal to the monthly
retirement benefit which would otherwise commence as of his
Normal Retirement Date, reduced by five
twelfths (5/12ths) of one percent (1%) for each month that the commencement date of
such payments precedes the Member’s
Normal Retirement Date. All such monthly benefits shall be computed to the nearest
dollar, with fifty cents
($.50) being regarded as the next
higher dollar. The
monthly retirement benefit
shall be expressed in
the form of a 5-year
certain annuity for the life of
the Member, although the actual form of
payment shall be elected in accordance
with the terms of Section 3.6. Notwithstanding
anything herein to the
contrary, solely for
purposes of determining a Member’s eligibility for
Early Retirement and his Early
Retirement Date, Years of Service shall include Years of Service credited after the
Freeze Date in accordance with the provisions of the Plan.

 

3.5
Disability Retirement. If a Member
becomes Totally and Permanently
Disabled after completing at least 10 Years
of Service and prior to the Freeze Date,
and if he remains Totally and Permanently Disabled until his Normal Retirement Date,
such Member shall be entitled to a monthly retirement
benefit, commencing on his Normal Retirement Date, computed as of the date such Member incurs a Total and Permanent Disability,
in an amount equal to the

    	 

    	 

    

monthly
retirement benefit to which he would have
been entitled under Section 3.2 if he had continued to work until his Normal Retirement Date and his Average Monthly
Earnings continued at the same level as in effect at the time of the Total and Permanent Disability.

 

Total
and Permanent Disability shall be considered
to have ended and entitlement to a disability retirement pension
shall cease if, prior to his Normal Retirement Date, the Member is
reemployed by
the Employer
or loses his entitlement to payments
under all Employer-sponsored
long-term
disability insurance programs
under which he
was covered at the time
of his Total
and Permanent Disability. If
entitlement to a disability retirement pension ceases in accordance with the provisions
of this paragraph for a reason other than reemployment
by the Employer,
such Member shall not be prevented from qualifying for a Monthly
Retirement Income under another provision of the Plan, based upon his Years
of Service, Average Monthly Earnings, and age at the time of disability retirement,
but such Member’s period of Total and Permanent Disability shall not be counted
in calculating his Years of Service. If a Member recovers from Total and Permanent
Disability and returns to employment
with the Employer
prior to the Freeze Date, his subsequent entitlement to a Monthly Retirement
Income shall be determined in accordance with the
provisions of the
Plan, based upon
his Years of
Service, Average Monthly
Earnings, and age,
and the period of Total and Permanent Disability shall be counted in calculating his Years of Service.

 

3.6       Method
of Payment of Retirement Benefits.

 

(a)
Monthly Retirement Benefit of the Normal Form.
Except as otherwise provided with respect to married Members in Section 3.6(b) and the election of an optional form
of payment in Section
3.6(c), a Member entitled to retirement, termination or disability benefits hereunder shall receive such benefits in the form of
a 5-year
certain annuity for the lifetime of
the Member.

 

(b) Qualified
Joint and Survivor Annuity for Married Members. Benefits
of any Member who has
an Eligible Spouse on the Annuity Starting
Date shall be paid, unless the Member otherwise
elects in the manner set forth below, in the form of
a Qualified Joint and Survivor Annuity,
which shall be the Actuarial Equivalent of
the normal form of monthly retirement benefit,
providing periodic payments
for the life of the
Member with a fifty percent (50%) contingent survivor
annuity for the
benefit of his
Eligible Spouse. The Plan Administrator
shall establish an election period of at least one hundred
and eighty (180) days
(ninety (90) days
for elections prior to January 1, 2007) prior to the date on which Qualified Joint
and Survivor Annuity payments
are to commence and shall provide each
Member with a written explanation of (i) the terms and conditions of the Qualified
Joint and Survivor Annuity; (ii) the Member’s right to make, and the
effect of, an election to waive the Qualified
Joint and Survivor Annuity;
(iii) the rights of the Member’s Eligible Spouse; (iv) the right to make, and the effect of, a revocation of a previous
election to waive the Qualified Joint and Survivor Annuity; and (v) the
relative values of the various optional
forms of payment
under the Plan;
provided, however, with
respect to the written explanation of the Qualified Joint and Survivor Annuity
with an Annuity Starting Date on and after February
1, 2006, the relative values of the various
optional forms of benefit under the Plan shall be made in a manner that would satisfy
the notice requirements of Code Section
417(a)(3) and Treasury Regulations Section
1.417(a)-3. For
notices given in Plan Years beginning after
December 31, 2006, such notification shall also include a description of

    	 

    	 

    

the Member’s
right to defer receipt of his or her
benefit and how much larger benefits will be if the commencement of distributions is
deferred. Any election
is revocable by the Member if revoked in a writing delivered to the
Plan Administrator within such election period. A Member who is eligible for a benefit shall be permitted to elect any
of the optional forms in (c) below (subject to the requirements of such forms).

 

(i)       An
election by a married Member to receive his retirement benefits in a form other than a Qualified Joint and Survivor Annuity shall
not take effect unless:

 

		(1)	the Member’s Eligible
Spouse consents in writing to such election, and the Eligible Spouse’s consent acknowledges the effect of
such election and is witnessed by a notary public or an official designated by the
Plan Administrator;

 

		(2)	it is established to the satisfaction
of the Plan Administrator that the Eligible Spouse’s consent cannot be obtained
because there is no Eligible Spouse, because the Eligible Spouse cannot be located,
or because of such other circumstances as the Secretary of the Treasury may
prescribe by Regulations; or

 

		(3)	for elections made on or after
January 1, 2008 with respect to Annuity Starting
Dates beginning on or after January 1,

2008, the optional form of payment
elected by such married

Member is set forth in Section 3.6(c)(iii).

 

Consent
by an Eligible Spouse, or establishment that an Eligible Spouse’s consent cannot
be obtained, shall be effective only with respect to such individual spouse.

 

(c)
Election of Optional Forms of Payment.
A Member entitled to benefits payable
in the form of equal monthly installments for such Member’s life or a married
Member’s electing (with the written consent of such Member’s Eligible Spouse) not to receive
a Qualified Joint and Survivor Annuity, may
elect to have his retirement benefit payable
under one of the Optional Forms of Payment, set forth below, which is the Actuarial
Equivalent of his Normal Retirement Benefit pursuant to Section 3.2 hereof:

 

(i)       An
annuity for the Member’s life alone;

 

 

 

or 10 years;
or

(ii)       An
annuity for the Member’s life, with payments
guaranteed for 5

 

(iii)
An annuity for the Member’s life,
with a survivor annuity for the Member’s
Eligible Spouse which
is 100% or
75% of the
annuity which is payable
during the joint lives
of the Member
and his Eligible
Spouse. Notwithstanding the
foregoing, the written consent
of such Member’s Eligible Spouse is not required to the election by
a Member of the optional form of payment
under this Section 3.6(c)(iii) for distributions with Annuity Starting Dates beginning on or after January 1, 2008.

    	 

    	 

    

(d)
Lump Sum Cash-Out Distribution.
Notwithstanding any other provision of
this Section 3.6, if the Actuarial Equivalent present value of the Member’s
benefit is less than

$5,000,
and if benefit
payments
have not begun
and the Member’s
Annuity Starting Date
has not been reached, the Plan Administrator
shall distribute such benefits in a lump sum to the Member or his Beneficiary.
For these purposes, the present value of the Member’s Monthly
Retirement Income
shall be calculated in accordance with
Section 5.5 of the Plan.
In the event of
a distribution under this Section 3.6(d) in excess of $1,000, if the Member does not elect to have
such distribution paid directly
to an Eligible Retirement Plan specified by the Member in a Direct Rollover in accordance
with Section 11.17 or to receive the distribution directly, then the
Plan Administrator will pay the distribution in a Direct Rollover to an Eligible
Retirement Plan designated by the Plan Administrator.

 

(e)
Election Period. Any election of
a payment
option other than a Qualified Joint and Survivor
Annuity (or a revocation of
same) by a Member must be made in writing
filed with the Plan Administrator within an election period commencing on the date which is nine (9) months prior to the Member’s
retirement date and terminating sixty (60)
days prior to the date upon which his benefits actually commence
(the “Election Period”). Information pertaining to this election shall
be delivered to the Member on or before the commencement date of the Election Period.
The Member must request any additional
information he may desire within a sixty (60)
day period commencing on the date this information is mailed or delivered to him. Notwithstanding anything
in this Section 3.6(e) to the contrary, the Election Period shall in all
cases include the sixty-day period
following the date upon which the additional information timely
requested by a Member was mailed or delivered to him.

 

Notwithstanding the preceding paragraph or Section
3.6(b), effective January 1,

1997, the written explanation
described in Code Section 417(a)(3)(A) may be provided after
the Annuity Starting Date. The 90-day
applicable election period to waive the Joint
and Survivor Annuity described in Code Section 417(a)(6)(A) shall not end before the
30th day after the date on which such
explanation is provided. The Secretary of the Treasury may,
by regulations, limit
the period of time by which the Annuity
Starting Date precedes the provision of the written explanation other than by
providing that the Annuity Starting Date may
not be earlier than termination of employment.

 

Effective
January 1, 1997, a Member may elect
(with any applicable spousal consent)
to waive any requirement that the
written explanation be provided at least 30 days before the Annuity
Starting Date (or to waive the 30-day requirement
under the above paragraph) if the distribution commences more than 7 days after such
explanation is provided.

 

(f)
Death After Commencement of Benefits. If the
Member dies after the commencement of the
distribution of benefits but prior to the distribution of all benefits payable
under the respective settlement option,
the distribution shall
continue to the
Beneficiary pursuant to the form of payment
selected by the Member under this Section 3.6.

 

3.7
Suspension Of Benefits. Except as provided in
Section 3.5, if a Retired or Terminated
Member is receiving benefit payments
from or on behalf of the Plan on account of such retirement or
termination, such benefit payments shall
immediately cease upon re-
employment, and, except as provided in
Section 5.4, the total benefits theretofore paid to such

    	 

    	 

    

Member shall actuarially
reduce any subsequent benefit payments
which may be due or may
become due to such Member under the Plan. Any
benefits thereafter payable
to such Member shall be paid as otherwise provided in the Plan. No payment
will be withheld under this Section unless the Plan notifies the Member, in accordance with the requirements of ERISA
Section

203(a)(3)(B) and the regulations
thereunder, that such Member’s benefits are suspended. To the
extent required by ERISA,
this Section 3.7 shall apply to Members who continue employment
past their Normal Retirement Date as provided in Section 3.3.

    	 

    	 

    

ARTICLE
IV DEATH BENEFITS

4.1       Incidental
Death Benefits for Eligible Spouse.

 

(a)
If a Member dies while actively employed
and prior to becoming a Retired Member or Terminated Member and prior to
the commencement of benefits pursuant to Article III
or V, Death Benefits shall be payable to
the deceased Member’s Eligible Spouse, if any.
The surviving Eligible Spouse may elect between the following:

 

(i) A
monthly retirement benefit, commencing
on what would have been the Member’s Normal Retirement Date (or his Late
Retirement Date if the Member works beyond
his Normal Retirement Date), equal to the amount which would have been payable
to the Spouse under the Qualified Joint and Survivor Annuity provided in
Section 3.6(b) if the Member had terminated his employment
on the date of his death, had then lived until his Normal Retirement Date and begun to receive Monthly Retirement Income
in the form of a Qualified Joint and Survivor
Annuity on that date, and had died on
the day after the commencement of benefits; or

 

(ii)
a monthly retirement benefit, commencing
on the first day of any
month on or after what would have been the Member’s 55th birthday
and before what would
have been the Member’s Normal Retirement date, equal to the amount which would have been payable
to the Eligible Spouse under the Qualified Joint and Survivor Annuity provided in Section
3.6(b) if the Member had terminated his employment
on the date of his death, had then lived until the date
on which benefits actually commence under
this item (ii)
and had begun
to receive Monthly
Retirement Income in
the form of
a Qualified Joint and Survivor Annuity on that date, and had died on the
day after the
commencement of benefits.

 

In
the absence of an affirmative written election by
the Spouse, Death Benefits shall be payable
to the surviving Eligible Spouse in accordance with item (i), above, if the Member dies on or after his Normal Retirement Date.
Otherwise, Death Benefits shall be payable
in accordance with
item (ii), above, with the
payment of benefits
commencing on the
first day of
the month coincident with or immediately following the Member’s 55th
birthday if he dies before age 55 or commencing
on the first day of the month coincident
with or immediately following the date of the Member’s death if he was at least age 55 at the time of his death.

 

All such
monthly benefits shall be computed to the nearest dollar, with fifty cents
($.50) being regarded as the next
higher dollar. The
monthly retirement benefit shall continue
for the life of the Spouse alone. The death of the Spouse, whether before or after the commencement of monthly
benefits, shall terminate the right to
any Death Benefits for any
month after the Spouse’s death.

 

(b) Lump
Sum Cash-Out Distribution. Notwithstanding any other
provision of this Section 4.1 to the contrary,
if the Actuarial Equivalent present value of
the Member’s Death Benefits are less than $5,000, and if benefit payments
have not begun and the Member’s Annuity

    	 

    	 

    

Starting Date has
not been reached, the Plan Administrator, shall distribute such Death Benefits in a lump sum to
the surviving Eligible Spouse of the deceased Member. For
these purposes, the present value of the Member’s Death Benefits shall be calculated
in accordance with Section 5.5 hereof.

 

4.2
DeathBenefitsinAbsenceofSurvivingEligibleSpouse. If
a deceased Member is
not survived by an Eligible Spouse,
no Death Benefits shall be payable under
this Plan with respect to a deceased Member who is not a Retired Member or Terminated
Member at the time of his death and who is not eligible for retirement under Sections
3.2, 3.3, or 3.4 at the time of his death.
If a deceased Member who is not survived by an
Eligible Spouse and who is not a Retired Member or Terminated Member, would have been eligible for normal, late or early retirement
under Sections 3.2, 3.3, or 3.4, respectively,
at the time of his death, his Beneficiary shall receive
as Death Benefits a monthly amount for
60 months equal to the monthly retirement
benefit which the Member would have received if he had retired as
of the date of his death and had begun
to receive Monthly Retirement Income in
the form of a 5-year
certain annuity for the life of the Member,
commencing on the first day of the month following the
month in which his death occurs.

 

4.3
SpecialMilitaryDeathBenefit. Effective as of
January 1, 2007, the death benefit provided in Section 4.1 and 4.2 shall be provided
to any active Member who dies while in
military leave to the extent required by,
and in accordance with the mandatory provisions
of, the Heroes Earnings Assistance and Relief Tax
Act of 2008, including treating any such
Member as if they had returned to active employment
with the Employer and then terminated employment
as a result of death for purposes of any additional survivor benefits provided under
the Plan.

    	 

    	 

    

ARTICLE V

 

VESTING AND TERMINATION
OF EMPLOYMENT

 

5.1
Vested Interest. Whenever a Member, for reasons other than actual retirement under Sections 3.2, 3.3,
3.4, or 3.5 hereof or death under Article IV,
incurs a one year Break in Service, he
shall cease to be an active Member and shall become a Terminated Member. Subject to
the limitations and restrictions of Article VI,
each Terminated Member who is not thereafter credited with any additional Year(s) of Service shall be entitled at his Normal Retirement
Date to receive Monthly Retirement Income
equal to the vested percentage of his Accrued Benefit as of
his date of termination.

 

The
vested percentage of any
Terminated Member who is credited with at least one (1) Hour of Service on or after
January 1, 1989, shall be determined in accordance with the
following schedule:

 

	Completed Years of Service	Vested Percentage
	 Less than 5	 0%
	 5
    or more	 100%

   

The
vested percentage of any
Terminated Member who is not credited with at least one (1) Hour of Service on or
after January 1, 1989 shall
be determined pursuant to the terms of the Plan as it existed on the date of the Terminated
Member’s termination of employment.

 

The
nonvested portion of the Terminated Member’s Accrued Benefit shall
constitute a Forfeiture as of the last day of the Plan Year
in which such Terminated Member’s employment
with the Employer
terminates if the Member has no vested interest in his
Accrued Benefit, or upon the earlier to occur of a fifth consecutive Break in Service
or a distribution of any portion his vested
Accrued Benefit if the Member does have a vested interest in his Accrued
Benefit. Any such Forfeiture shall serve
to reduce the Employer’s
contributions required under Article VII. In the event a distribution is made, the relevant Member shall be afforded the Buy-Back
option described in Section 5.4 of the Plan.

 

If
a Terminated Member has completed at least 15 Years of Service as
of the date of termination, then he shall
be entitled to elect in writing to receive Monthly Retirement
Income, commencing on or after the first day
of the month on or after the Member’s 55th birthday and
before his Normal Retirement Date, equal to the amount otherwise payable
at his Normal Retirement Date, reduced by 5/12ths of
1% for each month that the commencement of
benefits precedes his Normal Retirement Date.

 

Notwithstanding
anything herein to the contrary, for
purposes of determining a Member’s vested interest in his Accrued Benefit under the Plan, Years
of Service shall include Years of
Service credited after the Freeze Date in accordance with the
provisions of the Plan. A Member with no vested interest in
his Accrued Benefit shall not become vested as a result of the freezing of the Plan.

    	 

    	 

    

5.2
Method of Payment
of Benefits to Member Separating from Service before RetirementDate. If
the Member separates from service before retirement or
death, the settlement
options available to the Member will depend upon the Member’s marital
status as of the date on which benefit payments commence or on which the Member dies.

 

(a)
If the Member then has an Eligible Spouse,
the vested portion of his benefit will be paid in the
form of a Qualified 50% Joint and Survivor Annuity as
described in Section 3.6(b) unless the Member and his Eligible Spouse pursuant to
the spousal consent requirements in Section 3.6(b)(2), elect to have the vested portion
of his benefits paid in the form of a 5-year
certain annuity. Payments
under such Qualified Joint and Survivor Annuity
or straight life annuity shall in fact
commence as of the Member’s Normal Retirement Date or, if
the Member has completed at least 15 Years of Service as of his date of termination and so elects in writing, on the first
day of any month on or after the Member’s
55th birthday and before his Normal Retirement Date. If the Member dies before
the commencement of benefits, a 50% survivor
annuity equal to the amount which would
be payable to the
surviving Eligible Spouse under a Qualified Joint
and Survivor Annuity (as though the Member
had lived and begun to receive a Qualified
Joint and Survivor Annuity on the commencement
date) shall be payable to the Surviving
Eligible Spouse. The commencement date of this 50% survivor annuity shall
be the first day of
the month coincident with or immediately
following the later of the Member’s

55th birthday or his date
of death if he has completed at least 15 Years of Service as of his date of termination
and otherwise shall be the Member’s Normal
Retirement Date. The death of the surviving Eligible Spouse shall terminate the right
to any annuity
payments
for any month after the surviving Eligible
Spouse’s death.

 

(b) If
the Member does not have an Eligible Spouse, the Member shall receive the vested portion of his
Accrued Benefit in the form of a 5-year
certain annuity for the life of
the Member, commencing on the Member’s Normal Retirement Date. Alternatively,
if the Member has completed at
least 15 Years of Service as of his date of
termination and so elects in writing, the monthly
benefit otherwise payable
to the Member at the time of his Normal
Retirement Date, reduced by five twelfths
(5/12ths) of one percent (1%) for each month that the commencement of benefits precedes
his Normal Retirement Date, shall be
payable
in the form
of a 5-year
certain annuity for the life of the Member, commencing on the first day of any
month on or after
the Member’s 55th birthday and before
his Normal Retirement Date. The Terminated Member’s death prior to the commencement
of benefits shall terminate any
right to benefits under this Plan with respect to that Terminated Member.

 

5.3
Lump Sum Cash-Out
Distribution. Notwithstanding any
other provision of this Section 5.3 to the contrary, if
the Actuarial Equivalent present value of the
vested portion of a Member’s Accrued Benefit is less than $5,000, and
if benefit payments have not begun
and the Annuity Starting Date of the relevant Member has not been reached, the Plan
Administrator shall distribute such amount in a lump sum to the Member or the Beneficiary of a deceased Member. For
these purposes, the present value of the
vested portion of the Member’s Accrued Benefit shall be calculated in accordance with Section 5.5 hereof.

 

5.4
Buy-Back.
If a Member who has received a distribution
pursuant to Section
5.3 is subsequently reemployed
and again becomes a Member of this Plan, the calculation of his Accrued Benefit and his
Monthly Retirement Income
shall be reduced by the
Actuarial

    	 

    	 

    

Equivalent of such
cash-out unless the amount of such payment
is repaid to the Trust Fund, plus interest at 5%
per annum between the date of payment
and the date of repayment.
This 5% interest rate shall automatically
be adjusted to reflect any regulation
or ruling issued under Code Section 411(c)(2)(D) which
changes such interest rate. If such amount (plus interest) is repaid, the Member’s
Accrued Benefits shall not be reduced by the Actuarial Equivalent of the cash-out.

 

5.5       Determination
Of Present Value

 

(a)
In General. For purposes
of determining whether
the present value of (1) a Member’s Vested Accrued Benefit, (2) a Qualified Joint
and Survivor Annuity within the meaning of Section 417 of the Code, or (3) a Qualified Pre-Retirement
Survivor Annuity within the meaning of Section 417 of the Code exceeds $5,000, the
present value of such benefits or annuities shall be calculated in accordance with
the provisions of Section 1.2 of the Plan.

 

(b) Minimum
Value. In no
event shall the present value of any
benefit or annuity determined under Section 5.5(a) be less than the greater of:

 

(i) The
present value of such benefit or annuity using the Plan provisions (other than this Section 5.5) for determining the present value
of accrued benefits or annuities, or

 

(ii)       The
present value of such benefits or annuities determined under

Section 5.5(a) before application of this subsection
(b).

 

(c)
Coordination with Limitations on Contributions and Benefits. In
no event shall the amount of any benefit or annuity determined
under this Section 5.5 exceed the maximum benefit permitted under Code Section 415.

    	 

    	 

    

ARTICLE VI

 

LIMITATIONS ON BENEFITS,
NON-DISTRIBUTION ALIENATION AND ASSIGNMENT,
AND RIGHTS OF MEMBERS

 

6.1       Limitation
on Benefits for Limitation Years Beginning Before July 1, 2007.

 

(a)
Anything herein to the contrary notwithstanding,
the benefits computed under Article III shall be subject to the following limitations:
The maximum benefit, when expressed as an annual benefit, shall not exceed the
lesser of $170,000 (subject to cost of living adjustments under Code Section 415(d))
or 100% of the Member’s average annual Earnings for
his three highest consecutive years, subject to the following:

 

(i)
The maximum limitation shall apply to a straight life annuity,
with no ancillary benefits;

 

(ii)
If benefits begin prior to the Member’s Social Security
Retirement Age (as hereinafter defined),
the maximum will be adjusted so that it
is the Actuarial Equivalent of an annual benefit of $170,000, multiplied by the cost
of living adjustment factor prescribed by the Secretary of the
Treasury under Code Section 415(d) for years beginning after December 31, 1987. The “Social Security
Retirement Age” shall be the age
used as the retirement age for the Member under Section 216(1) of the Social Security
Act, except that such section shall be applied without regard
to the age increase factor, and as if the early
retirement age under Section 215(1)(2) of such Act were 62.

 

(iii)
If benefits begin after a Member’s Social Security Retirement Age,
the maximum shall be adjusted so that it
is the Actuarial Equivalent of $7,500 per
month beginning at the Social
Security Retirement Age, multiplied by the
cost of living adjustment factor prescribed by
the Secretary of the Treasury
under Code Section 415(d) for years beginning after December 31, 1987, based on the
lesser of the interest rate assumption
used under the Plan or on an assumption of five percent (5%)
per year. Effective as
of January 1,
2000, the benefits
paid in accordance with this
Section shall be
adjusted for the repeal of Code Section 415(e) provided that no increase in benefit is permitted to reflect
the difference between the limitation of Code Section 415(b) and
Code Section 415(e) for the prior limitation years.

 

(iv)
If the Employee
has completed less than ten years of participation
in the Plan, the Member’s Accrued Benefit shall not exceed the maximum multiplied
by a fraction, the numerator of which is the Member’s number of years
(or part thereof) of participation in the Plan, and the denominator of which is ten.

 

(v) The
maximum amount of $170,000 shall be increased as permitted by
Internal Revenue Service
Regulations to reflect cost-of-living
adjustments above the base period and from
and after January
1, 2005 the
benefit paid to
any Member
who is in
payment status
will be adjusted
as of the
first day of
each limitation year
for the increase,
if any, in the dollar limitation indexed under Code Section 415(d).

    	 

    	 

    

(vi)
In addition to other limitations set forth in
the Plan and notwithstanding any other provisions of the Plan, the Accrued Benefit, including the right to any
optional benefit provided in the Plan (and all other defined benefit plans required
to be aggregated with this Plan under the provisions of Code Section 415), shall not
increase to an amount in excess of the amount permitted under Code Section 415.

 

(b) Effective
as of the first day of the first limitation
year beginning on or after January
1, 2000 (the “effective date”), and notwithstanding any
other provision of the Plan, the Accrued
Benefit for any
Member shall be determined by applying
the terms of the Plan implementing the
limitations of Code Section 415
as if the limitations of Code Section 415 continued to include the limitations of
Code Section 415(e) as in effect on the day
immediately prior to the effective date.

 

Notwithstanding any
provision in the Plan to the contrary,
the preceding provision does not apply to any
Employee participating in the
Plan who has completed one Hour of Service on or after January 1, 2000.

 

(c)
In the event that a Member’s benefits under this Plan and any
other plan exceed the limitations specified in Section 6.1(a) or (b),
appropriate reductions in such benefits shall be made by
the Plan Administrator in the following order:

 

(i)       First,
any benefits from this Plan, and

 

(ii)
to the extent that additional reductions are necessary,
such reductions shall be made to any defined contribution plan maintained by the Employer.

 

(d) For
purposes of this Section 6.1, the following
definitions and rules of interpretation shall apply:

 

(i) “Projected
Annual Benefit” means the Annual Benefit to which a Member would be entitled under a defined benefit plan (after giving effect
to any limitation on such benefit contained in such plan that may
be applicable to the Member) on the assumptions
that he continues Employment
until his Normal Retirement Date thereunder, that his Compensation continues at
the same rate as
in effect for the Plan Year under consideration until such Normal Retirement Date,
and that all other relevant factors used to determine benefits under such Plan
remain constant for all future Plan Years.

 

(ii)
The “Annual Addition” of a Member means amounts treated as Employer
contributions, plus the Member’s contributions (if any),
provided that for Plan Years ending before December 31, 1986, only the lesser of:
(1) the portion of this Member contributions (if any)
during such year
in excess of 6% of his compensation, within the meaning of
Code Section 415(c)(3), or (2) one-half of
his Member contributions during such Year shall be treated as Annual Additions. With
respect to defined contribution plans under which forfeitures can occur, Annual Additions
shall also include any forfeitures allocable
during the Plan
Year. Further, amounts allocated
in Plan Years
beginning after March 31, 1984, to an individual medical account, as defined in
Code Section 415(1), which is part of a defined benefit plan maintained by
the Employer

    	 

    	 

    

shall be treated as
Annual Additions to a defined contribution plan. Also, amounts derived from contributions paid or accrued after December 31, 1985,
which are attributable to post-retirement
medical benefits allocated to the separate
account of a Key
Employee, under a welfare benefit
fund, as defined in Code Section 419(e), maintained by the
Employer, shall be
treated as Annual Additions to a defined contribution plan. In no event shall this be construed as applying
the limitations of Code Section 415(c)(1)(B) to individual medical accounts or postretirement
medical benefits.

 

(iii)       The
“Annual Benefit” of a Member means the annual amount payable
under a defined benefit plan computed in accordance with the following rules:

 

		(1)	where the benefit payable
under a defined benefit plan is other than in the
form of either a straight life annuity
or a qualified joint and survivor annuity within the meaning of Code Section 401(a)(11)(G)(iii),
it shall be adjusted to the Actuarial Equivalent
benefit in the form of a straight life
annuity on the basis of reasonable actuarial assumptions;

 

		(2)	in the case of a benefit under
a defined benefit plan which begins before age 62, such benefit shall be adjusted to the Actuarial
Equivalent of a benefit commencing at age 62 on the basis of reasonable actuarial
assumptions;

 

		(3)	in the case of a benefit under
a defined benefit plan which begins after age 65,
such benefit shall be adjusted to the Actuarial
Equivalent of a benefit commencing at age 65 on
the basis of reasonable actuarial assumptions. The
adjustment described in (2) above shall not increase the
value of a Member’s Annual Benefit above $170,000 (this amount shall be
adjusted automatically in accordance with regulations promulgated by
the Secretary of Treasury) if
the Member’s benefit under the defined benefit plan does not exceed $75,000
commencing at or after age 55, or the
Actuarial Equivalent of $75,000 at age 55
in the case of
a benefit commencing before age 55.

 

		(4)	“Dollar Limitation” means the limitation provided in Code
Section415(c)(1)(A) (adjusted in accordance with regulations of the
Secretary of the
Treasury) as in
effect for the particular Plan Year.

 

		(5)	“Prior Year” means a year,
preceding the current Plan Year, in which the Member was in the service of
the Employer. For
purposes of the preceding sentence, year shall mean (in the event the Plan was in
existence during such year) a Plan Year,
or (in the event the Plan was not in existence
during

    	 

    	 

    

such year)
a 12-month period
which begins and
ends on the
same dates as the Plan Year.

 

		(6)	For purposes of computing the
maximum allocation under either Section 6.1(a) or Section 6.1(b), all defined benefit
plans (whether or not terminated) of the Employer
shall be treated as one defined benefit plan, and all defined contribution plans as defined in Code Section 414(i) (whether or
not terminated) of the Employer
shall be treated as one defined contribution plan.

 

(e)EGTRRA
Limitation on Benefits.

 

(i)
This Section 6.1(e) shall be effective for limitation years ending after December
31, 2001, and thus effective as of January 1, 2002.

 

(ii)
Effect on Members. Benefit increases resulting from the increase in the limitations of Code
Section 415(b) shall be provided to all
Members who are Members and who have one
Hour of Service on or after January 1, 2002.

 

(iii)       Definitions.

 

		(1)	Defined benefit dollar limitation. The “defined benefit dollar limitation”
is $160,000, as adjusted, effective January 1 of each year,
under Code Section 415(d) in such manner as the Secretary of the
Treasury shall prescribe, and payable
in the form of a straight life annuity.
A limitation as adjusted under Code Section 415(d) will
apply to limitation years ending with or
within the calendar year
for which the adjustment applies. Effective January 1, 2005, the “defined benefit
dollar limitation” is $170,000.

 

		(2)	Maximum permissible benefit. The “maximum permissible benefit”
is the defined benefit dollar limitation (adjusted where required,
as provided in
(A) and, if
applicable, in (B)
or (C) below, and limited, if applicable, as provided in (D)
below).

 

		(A)	If the Member has fewer than
10 years of participation in the Plan,
the defined benefit dollar limitation shall be multiplied by a fraction,
the numerator of which is the
number of years (or part thereof) of participation
in the Plan and the denominator of which is 10. In
the case of a Member who
has fewer than 10 Years of
Service withthe Employer,
the defined benefit compensation limitation shall be multiplied by a fraction, (i) the
numerator of which is the number of

    	 

    	 

    

Years (or part thereof) of Service with
the Employer and (ii) the denominator of
which is 10.

 

		(B)	If the benefit of a Member begins
prior to age 62, the defined benefit dollar limitation applicable to the Member at such earlier age
is an annual benefit payable in the form
of a straight life annuity beginning at the earlier age
that is the Actuarial Equivalent of the defined benefit dollar limitation applicable to the Member at age
62 (adjusted under (A) above, if required). The defined benefit dollar limitation
applicable at an age prior to age 62 is determined as the lesser of (1) the Actuarial Equivalent (at such age) of
the defined benefit dollar limitation computed using the interest rate
andmortality table (or other tabular factor) specified in the Plan, and
(2) the Actuarial Equivalent (at such age) of the defined benefit dollar limitation
computed using a 5% interest rate and the
applicable mortality table as specified in Section 1.2 of the Plan. Any decrease in
the defined benefit dollar limitation determined in accordance with this paragraph (B) shall not reflect a mortality decrement
if benefits are not forfeited upon the death of the Member. If any
benefits are forfeited upon death, the
full mortality decrement is taken into account.

 

		(C)	If the benefit of a Member begins
after the Member attains age 65, the
defined benefit dollar limitation applicable to the Member at the later age is the annual
benefit payable in
the form of a straight life annuity beginning at the later age
that is the Actuarial Equivalent to the
defined benefit dollar limitation applicable to the Member at age 65 (adjusted under
(A) above, if required). The Actuarial Equivalent of
the defined benefit dollar limitation applicable at
an age after age 65 is determined as (1)
the lesser of the Actuarial Equivalent (at
such age) of the defined benefit dollar limitation computed using the
interest rate andmortality table (or other tabular factor) specified in the Plan,
and (2) the Actuarial Equivalent (at such age) of the defined benefit dollar limitation
computed using a 5% interest rate and the
applicable mortality table specified in Section
1.2 of the Plan. For these purposes,

    	 

    	 

    

mortality between age
65 and the age at which benefits commence shall be ignored.

 

(f)
PFEA Limitations On Benefits. Effective for distributions in Plan Years
beginning after December 31, 2003, the determination of Actuarial Equivalent
of forms of benefit other than a straight life annuity shall
be made in accordance with paragraph (i) or (ii) below.

 

(i) BenefitFormsNotSubjecttoSection417(e)(3)oftheCode:
The straight life annuity that is
the Actuarial Equivalent
to the Member’s
form of benefit
shall be determined under this paragraph (i) if the form of the Member’s benefit
is either (A) a nondecreasing annuity
(other than a straight life annuity) payable
for a period of not less than the life of the Member (or, in the case
of a qualified preretirement survivor annuity,
the life of the surviving spouse), or (B) an
annuity that decreases during the life of
the Member merely because of (i) the death
of the survivor annuitant (but only
if the reduction is not below 50% of the benefit payable before the death of
the survivor annuitant), or (ii) the cessation or reduction of
Social Security supplements or qualified disability payments
(as defined in Section 401(a)(11) of the Code).

 

	 	(1)	
        Limitation Years
        beginning before July 1, 2007. For Limitation
        Years beginning before July 1, 2007, the Actuarial Equivalent straight life annuity
        is equal to the annual amount of the straight life annuity
        commencing at the same Annuity Starting Date that has the same actuarial present value
        as the Member’s form of benefit computed using whichever of the
        following produces the greater annual amount: (i) the applicable interest rate
        and applicable mortality table specified in Section 1.2 of the Plan
        for adjusting benefits
        in the same
        form; and (ii)
        a five- percent interest rate assumption
        and the applicable mortality table (or other tabular factor) defined in Section

        1.2 of the Plan for
        that Annuity Starting Date.

	
         

        (2)
	
         

        Limitation Years beginning
        on or after July 1, 2007. For
        Limitation Years beginning on or after July
        1, 2007, the applicable provisions of Annex A shall apply.

	
         

        (ii)
	
         

        Bene
	
         

        fit Forms Subject to Section 417(e)(3) of
        the Code: The

straight life annuity
that is the Actuarial Equivalent to the
Member’s form of
benefit shall

be determined under this
paragraph (ii) if the form of the Member’s benefit is other than a benefit form described in
paragraph (i). In this case, the Actuarial Equivalent straight life annuity shall be
determined as follows:

 

(1)       Annuity
Starting Date in Plan Years Beginning After
2005.

If
the Annuity Starting Date of the Member’s
form of benefit is in a Plan Year beginning after 2005, the Actuarial Equivalent straight life annuity is equal to the greatest
of

    	 

    	 

    

the Annual Benefit
in the form of the straight life annuity commencing at the
same Annuity Starting
Date that has
the same actuarial present value as the
Member’s form of benefit, computed using
the applicable interest rate and applicable mortality
table (or other tabular factor) defined in Section 1.2 of the Plan for adjusting benefits
in the same form; (ii) the annual amount of the straight life annuity commencing at
the same Annuity
Starting Date that
has the same actuarial present value as
the Member’s benefit, computed using a 5.5 percent interest rate assumption and the applicable mortality
table defined in Section 1.2 of the Plan and (iii) the annual amount of the straight
life annuity commencing at the same Annuity
Starting Date that
has the same actuarial present value as
the Member’s form of benefit, computed using
the applicable interest rate and applicable mortality table
defined in Section
1.2 of the Plan for adjusting benefits in the same form, divided by
1.05.

 

(2)       Annuity
Starting Date in Plan Years Beginning in
2004 or

2005. If
the Annuity Starting Date of the Member’s
form of benefit is in a Plan Year beginning in 2004 or 2005, the Actuarial Equivalent
straight life annuity is equal to the Annual Benefit in the form of the straight life
annuity commencing at the same
Annuity Starting Date
that has the
same actuarial present value as the Member’s form of
benefit, computed using whichever of the following produces the greater annual
amount: (i) applicable interest rate and applicable mortality
table defined in Section 1.2 of
the Plan for adjusting benefits in the same form; and (ii) a

5.5 percent interest rate
assumption and the applicable mortality table defined in Section 1.2 of the Plan.

 

		(3)	Annuity Starting Date on
or after First Day of First Plan Year
Beginning in 2004 and Before December 31, 2004. If
the Annuity Starting Date of the Member’s benefit is on or after
the first day of the first Plan Year
beginning in 2004 andbefore December 31, 2004, the application of subparagraph
(2) shall not cause the amount payable
under the Member’s form of benefit to be less than the benefit calculatedunder the
Plan, taking into account the limitations of this Article, except that the Actuarial Equivalent straight life annuity is equal
to the annual amount of
the straight life
annuity commencing at the
same Annuity Starting Date that
has the same actuarial present value as the Member’s form of benefit, computed
using whichever of the following produces the greatest annual amount: (i) applicable
interest rate and applicable mortality

    	 

    	 

    

table specified in
Section 1.2 of the Plan for adjusting benefits in the same form; (ii) the applicable interest rate and applicable mortality table
(or other tabular factor) defined in Section 1.2 of the Plan; and (iii) the applicable interest rate (as
in effect on
the last day
of the last
plan year
beginning before January 1, 2004, under provisions of the
Plan then adopted and in effect) and the applicable mortality table defined
in Section 1.2 of the Plan.

 

6.2
Limitation on Benefits for Limitation Years
Beginning On or After July 1, 2007.
Anything herein to the contrary notwithstanding,
the benefits computed under Article III with Annuity
Starting Dates beginning on or after January
1, 2008 shall be subject to the limitations set forth in Annex A to this Plan.

 

6.3       Special
Rules for Benefits Payable to Highly Compensated
Employees.

 

(a)
An Employee
shall be deemed an “Affected Employee”
subject to this Section 6.3 if he is a Highly
Compensated Employee, and is one of
the twenty-five
(25) Employees paid the greatest
compensation in the current or any prior Plan Year.

 

(b) In
the event of Plan termination, the benefit of any Affected
Employee is
limited to a benefit that is nondiscriminatory under Code Section 401(a)(4).

 

(c)
The annual payments
to an Affected Employee
are restricted
to an amount equal to the payment
that would be made on behalf of the Affected
Employee under (i) a single life annuity
that is the Actuarial Equivalent of the
sum of the Affected Employee’s
Accrued Benefit and other benefits payable
to the Affected Employee
under the Plan, and (ii) the amount of the payments
that the Affected Employee
is entitled to receive under a social security supplement. The restrictions in this
paragraph do not apply, however, if:

 

(i)
After payment to an Affected Employee
of all benefits payable to
the Affected Employee
under the Plan, the value of plan assets
equals or exceeds 110% of the value of current liabilities, as defined in Code Section
412(1)(7),

 

(ii)       The
value of benefits payable
to the Affected Employee under the

Plan is less
than 1 percent of the value of current liabilities before distribution, or

 

(iii)
The value of the benefits payable
to the Affected Employee
under the Plan does not exceed the amount described in Code Section 411(a)(11)(A).

 

For
purposes of subparagraphs (i), (ii) and (iii) above the value of Plan assets and the
value of current liabilities must be determined as of the same date. For
purposes of this subsection, the term “benefit” includes, among other benefits,
loans in excess of the amounts set forth
in Code Section 72(p)(2)(A), any periodic
income, any withdrawal values payable
to a living employee, and any death benefits not provided for by insurance on the
Employee’s life.

 

6.4
NoAssignmentofBenefits. None of the benefits under the Plan shall be subject to
the claims of creditors of Members, Terminated Members, Retired Members, Eligible Spouses,

    	 

    	 

    

or Beneficiaries, and
such benefits shall not be subject to attachment, garnishment, or any other legal process
whatsoever. No Member, Terminated Member, Retired Member, Eligible Spouse, or Beneficiary
may assign,
sell, borrow on, or otherwise encumber any
of his beneficial interest in the Plan and Trust Fund, nor shall any
such benefits be in any manner liable
for or subject to the deeds, contracts, liabilities, engagements, or
torts of any Member, Terminated Member,
Retired Member, Eligible Spouse, or Beneficiary. If
any such Member, Terminated Member, Retired
Member, Eligible Spouse, or Beneficiary shall become bankrupt or attempt to anticipate,
sell, alienate, transfer, pledge, assign, encumber, or charge
any benefit specifically
provided for herein, or if a court of competent
jurisdiction enters an order purporting to subject such interest to the claim of any
creditor, then such benefit shall be terminated and the Trustee
shall hold or apply such benefit to or for the benefit of such Member, Terminated member,
Retired Member, Eligible Spouse, or Beneficiary in such manner as
the Plan Administrator, in its sole discretion, may deem proper under the circumstances.

 

However,
the foregoing provision against the assignment of a Member’s benefit under
the Plan shall not apply in the case
of (i) qualified domestic relations order which is determined by the
Plan Administrator to meet the requirements of Code Section 414(p) (“QDRO”), or (ii) the Member’s liability
to the Plan due to: (A) the Member’s conviction of a crime involving the Plan,
(B) a judgment, consent order, or decree in action for violation of fiduciary standards,
or (C) a settlement involving the Department of Labor
or Pension Benefit Guaranty Corporation.

 

Effective
as of April 6, 2007, a domestic relations order that otherwise satisfies the
requirements for a QDRO will not fail to be a QDRO solely
because the order revises another domestic relations order or QDRO or solely
because of the time at which the order is issued, including issuance after the Annuity Starting Date or after the Member’s
death.

 

6.5
Commencement of Benefits. Notwithstanding any provision to the contrary,
the payment
of benefits to the Member shall begin not later than 60 days
after the last day of the Plan Year in which the latest of (a), (b), or (c) occurs:

 

(a)The
Member’s Normal Retirement Date;

 

 

 

Member; or

(b)       The
10th anniversary of the date on which such Member first becomes a

 

(c)The
date on which such Member terminates his service with the Employer.

 

Otherwise, the
payment
of benefits shall commence as of any
earlier date specified in this Plan. Payment
of a Member’s benefits shall commence not later than April 1 of
the calendar year that follows:

 

(i)       for
a Member who is a 5% owner (as defined in Code Section

416(i)(1)), the calendar year in which the Member
reaches age 701/2, and

 

(ii)       for
each other Member, the later of the calendar year in which the

Member (1) reaches age 70 1/2, or (2) retires.

    	 

    	 

    

Notwithstanding
any provision of the Plan to the
contrary and
prior to January 1, 2003, all distributions
from the Plan shall be made in accordance with the requirements of the regulations
under Code Section 401(a)(9), including the minimum incidental benefit distribution requirements under Section 1.401(a)(9)-2
of the Proposed Regulations. With respect to distributions
under the Plan made for calendar years
beginning on or after January 1, 2001 and prior to January 1, 2003, the Plan will apply
the minimum distribution requirements
of Code Section 401(a)(9) in accordance with regulations under such section that were
proposed on January 17, 2001, notwithstanding any
provision of the Plan to the contrary.
This provision shall continue in effect until the
end of the last calendar year
beginning before the effective date of final regulations under Code Section 401(a)(9) or such other date as
may be specified in guidance published by
the Internal Revenue Service.

 

With
respect to distributions under the Plan required to be
made under Code Section

401(a)(9) for calendar years
2003 and later, the Plan will apply the
minimum distribution requirements of Code Section 401(a)(9) in accordance with the final regulations under Code
Section 401(a)(9) that were issued on April 17, 2002, in accordance with Rev.
Proc. 2002-29.

 

A Member’s
Accrued Benefit will be actuarially increased to take into account certain periods
after age 70-1/2
for which the
Member does not
receive any benefits
under the Plan.
The actuarial increase applies for the period (1) that begins on the April 1 following
the calendar year in which the Member
attains age 70-1/2
(January 1, 1997 in the case of a Member who
attains age 70-1/2
prior to 1996) (the “Start Date”), and (2) that ends on the date on which
benefits commence in an amount sufficient to satisfy Code Section 401(a)(9) (the “End
Date). After applying the actuarial increase,
an affected Member’s Accrued Benefit as
of the End Date must be no less than the Actuarial Equivalent as of the End Date of
the Member’s Accrued Benefit as of the Start Date plus the
Actuarial Equivalent as of the End Date of additional benefits accrued after the
Start Date, reduced by
the Actuarial Equivalent
of any distributions made after the Start
Date. Any actuarial increase provided
by this subsection is the same as, and not in addition to,
the actuarial increase required for that same period under Code Section 411,
except that the actuarial increase required under this paragraph must be provided
even during a period during which an Employee
is in ERISA Section 203(a)(3)(B) Service. The actuarial adjustment in this
subsection does not apply in the case of a 5-percent owner.

 

Effective
as of January 1, 2003, required minimum distributions shall be made in accordance
with Section 6.6 of this Plan. Notwithstanding
any other provision of this Plan, nothing
contained in this Section 6.5 or the following Section 6.6 shall be construed as providing any
optional form of payment that is not available under the other distribution provisions
of the Plan.

 

6.6       Minimum
Distribution Requirements:

 

(a)
Effective Date: This Section 6.6 applies for purposes of determining required
minimum distributions for distribution calendar years beginning with the 2003 calendar
year.

 

(b) Precedence:
The requirements of this Section will take precedence over
any inconsistent provisions of the Plan.

    	 

    	 

    

(c)
Requirements of Treasury Regulations
Incorporated: All distributions required under this Section will be determined and made in accordance with the Treasury Regulations
under Code Section 401(a)(9).

 

(d) TEFRA
Section 242(b)(2) Elections: Notwithstanding the other provisions of this Section, other than Section 6.6(c), distributions
may be made under a designation made before January 1, 1984, in accordance with Section
242(b)(2) of the Tax Equity and Fiscal Responsibility
Act (TEFRA) and the provisions of the Plan that relate to Section 242(b)(2) of TEFRA.

 

(e)Time
and Manner of Distribution:

 

(i) Required
Beginning Date: The Member’s entire interest will be
distributed, or begin to be distributed, to the Member no
later than the Member’s Required Beginning Date.

 

(ii)
DeathofMemberBeforeDistributionsBegin: If
the Member dies before distributions begin,
the Member’s entire interest will be distributed, or begin to be
distributed, no later than as follows:

 

		(1)	If the Member’s surviving
spouse is the Member’s sole Designated Beneficiary, then, except as provided
in the Plan, distributions to the surviving spouse will
begin by December 31 of the calendar year
immediately following the calendar year
in which the Member died, or by December 31
of the calendar year
in which the Member would have attained age 701/2, if later.

 

		(2)	If the Member’s surviving
spouse is not the Member’s sole Designated Beneficiary,
then, except as provided in the Plan, distributions to the Designated Beneficiary will
begin by December 31 of the calendar year
immediately following the calendar year
in which the Member died.

 

		(3)	If there
is no Designated Beneficiary as
of September 30
of the year
following the year of
the Member’s death, the Member’s entire
interest will be distributed by December

31 of the calendar year
containing the fifth anniversary of the Member’s death.

 

		(4)	If the Member’s surviving
spouse is the Member’s sole Designated Beneficiary and the surviving spouse
dies after the Member but before distributions to the surviving spouse begin,this Section 6.6(e)(ii), other than Section

6.6(e)(ii)(1), will apply
as if the surviving spouse were the

Member.

    	 

    	 

    

		(5)	For purposes of this Section 6.6(e)(ii) and Section 6.6(h)(ii), distributions
are considered to begin on the Member’s Required Beginning Date (or, if
Section 6.6(e)(ii)(4) applies, the date distributions are required to begin to the
surviving spouse under Section 6.6(e)(ii)(1)). If annuity
payments
irrevocably commence to the Member before
the Member’s Required Beginning Date (or to the Member’s surviving spouse
before the date distributions are required to
begin to the
surviving spouse under Section 6.6(e)(ii)(1)), the date distributions are
considered to begin is the date distributions actually commence.

 

(iii)
Form of Distribution: Unless the Member’s interest is distributed in the form of an annuity purchased from an insurance
company or in a single sum on or
before the Required Beginning Date, as of the first distribution calendar year
distributions will be made in accordance with Sections 6.6(f), 6.6(g),
and 6.6(h)(ii). If the Member’s interest is distributed in the form of an annuity
purchased from an insurance company, distributions
thereunder will be made in accordance with the requirements of Code Section 401(a)(9)
and the Treasury Regulations
thereunder. Any part of the
Member’s interest which is in the form of an individual account described in Code Section 414(k) will
be distributed in
a manner satisfying
the requirements of
Code Section 401(a)(9) and the Treasury
Regulations that apply to individual accounts.

 

(f)Determination
of Amount to be Distributed Each Year:

 

(i)
GeneralAnnuityRequirements: If
the Member’s interest is paid in the form of annuity distributions under the
Plan, payments
under the annuity will satisfy the following requirements:

 

		(1)	the annuity distributions will
be paid in periodic payments
made at uniform intervals not longer than one year;

 

		(2)	the distribution period will be over a life (or lives) or over a period certain
not longer than the period described in Section 6.6(g) or (h)(ii);

 

		(3)	once payments
have begun over
a period, the period
certain will not be changed even if the
period certain is shorter than the maximum period;

 

		(4)	payments
will either be nonincreasing or increase
only as follows:

 

		(A)	by an
annual percentage increase that does not exceed the annual percentage increase in
a cost-of- living index that is based on
prices in the year
during which the increase occurs or the prior year;

    	 

    	 

    

		(B)	by a percentage increase that
occurs at specified times (e.g., at specified ages) and does not exceed the cumulative
total of annual percentage increases in a cost-of-living
index since the Annuity Starting Date, or
if later, the date of the most recent percentage
increase. In cases providing such a cumulative
increase, an actuarial increase may not
be provided to reflect the fact that increases were not provided in the interim
years;

 

		(C)	to the extent of the reduction in the amount of the
Member’s payments to
provide for a survivor benefit upon death, but only
if the Beneficiary whose life was being used to determine the distribution period described in Section 6.6(g)
dies or is no longer the Member’s Beneficiary pursuant to a qualified domestic
relations order within the meaning of Code Section 414(p);

 

		(D)	to allow a Beneficiary to convert a survivor portion of a joint and survivor
annuity into a single sum distribution upon the Member’s death;

 

		(E)	to pay increased benefits that
result from a Plan amendment;

 

		(F)	by a constant percentage, applied
not less frequently than annually,
at a rate that is less than five percent (5%) per year;

 

		(G)	to provide a final payment
upon the death of the Member that does not exceed the excess of the
actuarial present value of the Member’s Accrued Benefit (within the meaning of Code Section

411(a)(7)) calculated
as of the Annuity Starting Date using the
applicable interest rate and the applicable mortality
table described in Section 1.2 or Annex
A as applicable (or, if greater, the total amount of employee
contributions) over the total of payments
before the death of the Member; or

 

		(H)	as a result of dividend or other
payments
that result from Actuarial Gains, provided:

 

(i)ActuarialGainismeasurednotless
frequently than annually;

    	 

    	 

    

		(ii)	The resulting dividend or other payments
are either paid no later than the year
following the year for which the actuarial experience is measured or paid in the same form as the
payment
of the annuity over the remaining period of the annuity (beginning
no later than the year following the year
for which the actuarial experience is measured);

 

		(iii)	The Actuarial Gain taken into account is limited to actuarial gain from investment
experience;

 

		(iv)	The assumed interest rate used
to calculate such Actuarial Gains is not less than 3 percent; and

 

		(v)	The annuity payments
are not also being increasedby a constant
percentage as described in Section 6.6(f)(i)(4)(F) above.

		(ii)	Amount Required to be Distributed by Required Beginning Date:
(1)The amount that must be distributed on or
before the

Member’s Required
Beginning Date (or, if the Member dies
before distributions begin, the date distributions are
required to begin under Section 6.6(e)(ii)(1) or (2) is the payment
that is required for one payment interval.
The second payment
need not be made until the end of the next
payment
interval even if that payment
interval ends in the next calendar year.
Payment intervals are the periods for which payments
are received, e.g., bi-monthly,
monthly, semi-annually,
or annually. All of the Member’s
benefit accruals as of the last day
of the first distribution calendar
year will be included in the calculation
of the amount of the annuity payments
for payment
intervals ending on or after the Member’s Required Beginning Date.

 

		(2)	In the case
of a single sum distribution of a Member’s entire Accrued Benefit during a Distribution
Calendar Year, the amount that is the required minimum distribution for the Distribution
Calendar Year (and thus not eligible for rollover under Code Section 402(c)) is determined
under this Section 6.6(f)(ii)(2). The portion
of the single sum distribution that is a required minimum distribution is
determined by treating the single sum distribution as a distribution from an
individual account Plan and treating

    	 

    	 

    

the amount of the
single sum distribution as the Member’s account balance as of the end of the
relevant valuation calendar year.
If the single sum distribution is being
made in the calendar year containing the Required Beginning Date and the required
minimum distribution for the Member’s first Distribution Calendar Year has
not been distributed, then the
portion of the single sum distribution that represents the required minimum distribution
for the Member’s first and second Distribution Calendar Years is not eligible
for rollover.

 

(iii)
Additional Accruals After First Distribution Calendar Year:
Any additional benefits accruing to the
Member in a calendar year after the first distribution calendar year
will be distributed beginning with the first payment
interval ending in the calendar year
immediately following the calendar year
in which such amount accrues. Notwithstanding the preceding, the Plan will not fail
to satisfy the requirements of this Section 6.6(f)(iii) and Code Section 401(a)(9)
merely because there is an
administrative delay in the commencement of the distribution of the additional benefits
accrued in a calendar year,
provided that the actual payment
of such amount commences as soon as practicable.
However, payment
must commence no
later than the
end of the first calendar
year following the calendar year
in which the additional benefit accrues, and the total amount paid during such first calendar year
must be no less than the total amount that was
required to be paid during that year under
this Section 6.6(f)(iii).

 

(g)       Requirements
For Annuity Distributions That Commence
During the

Member’s Lifetime:

 

(i) Joint
Life
Annuities Where the Beneficiary is the Member’s Spouse: If
distributions commence under a distribution option that is in the form of a joint
and survivor annuity for the joint lives of the Member and the Member’s spouse,
the minimum distribution incidental benefit requirement will not be satisfied as of
the date distributions commence unless, under the distribution option, the periodic
annuity payment
payable to the survivor does not at any
time on and after the Member’s Required Beginning Date exceed the annuity payable
to the Member. In the case of an annuity that provides for increasing payments,
the requirement of this Section 6.6(g)(i) will not be violated merely because
benefit payments
to the Beneficiary increase, provided the increase
is determined in the same manner for the Member and the Beneficiary. If
the form of distribution combines a joint and survivor annuity for
the joint lives of the Member and the
Member’s spouse and a period certain annuity,
the preceding requirements will apply to annuity payments
to be made to the Designated Beneficiary after the expiration of the period certain.

 

(ii)
JointLifeAnnuitiesWheretheDesignatedBeneficiaryIsNotthe
Member’sSpouse: If the
Member’s interest is
being distributed in
the form of a joint
and survivor annuity for the
joint lives of the Member and a nonspouse Beneficiary,
annuity payments
to be made on or after the Member’s Required Beginning Date to the Designated Beneficiary after the Member’s death
must not exceed the “applicable

    	 

    	 

    

percentage” of
the annuity payment
for such period that would have been payable
to the Member determined by using the methodology and
the table set forth in Treasury Regulations Section 1.401(a)(9)-6,
Q&A-2(c)(2), in the manner described
in Q&A-

2(c)(1), to determine the
applicable percentage. If the form of distribution
combines a joint and survivor annuity for
the joint lives of the Member and a nonspouse Beneficiary and a period certain annuity,
the requirement in the preceding sentence will apply to annuity
payments
to be made to the Designated Beneficiary after
the expiration of the period certain.

 

(iii)
Period Certain Annuities: Unless the Member’s spouse is the sole
Designated Beneficiary and the form of distribution is a period certain and no life annuity,
the period certain for an annuity distribution commencing during the
Member’s lifetime may not exceed the applicable distribution period for the Member
under the Uniform Lifetime Table set forth in Treasury Regulations Section 1.401(a)(9)-9,
Q&A-2 for the calendar year
that contains the Annuity Starting Date.
If the Annuity Starting Date precedes the
year in which the Member reaches age 70,
the applicable distribution period for the Member is the distribution period for age 70 under the Uniform Lifetime
Table set forth in Treasury Regulations Section 1.401(a)(9)-9, Q&A-2, plus the
excess of 70 over the age of the Member as of the Member’s birthday in the year
that contains the Annuity Starting Date. If the
Member’s spouse is the Member’s sole Designated Beneficiary and the form
of distribution is a period certain and no life annuity, the period certain may not
exceed the longer of the Member’s applicable distribution period, as determined
under this Section 6.6(g)(iii), or the joint life and last survivor expectancy of the
Member and the Member’s spouse as determined under the Joint
and Last Survivor Table set forth in Treasury Regulations
Section 1.401(a)(9)-9, Q&A-3, using
the Member’s and spouse’s attained ages as of the Member’s and spouse’s
birthdays in the calendar year
that contains the Annuity Starting Date.

 

(h)       Requirements
for Minimum Distributions After the Member’s Death:

 

(i) DeathAfterDistributionBegins:
If the Member dies
after the date distributions begin in
the form of an annuity meeting the requirements
of this Section, the remaining portion of the Member’s interest will continue
to be distributed over the remaining period over which distributions commenced.

 

(ii)       Death
Before Distributions Begin:

 

		(1)	Member’s Survived by
Designated Beneficiary: Except as provided in the
Plan, if the Member dies before the date
distribution of his interest begins and there is a Designated Beneficiary,
the Member’s entire interest will be distributed beginning no later than the time described in 6.6(e)(ii)(1) or (2) over
the life of the Designated Beneficiary or over a period certain not exceeding:

 

(A)unless
the Annuity Starting Date is the date before
thefirstdistributioncalendaryear,thelife

    	 

    	 

    

expectancy of the
Designated Beneficiary determined using the Beneficiary’s
age as of the
Beneficiary’s birthday in
the calendar year immediately following
the calendar year
of the Member’s death; or

 

		(B)	if the Annuity Starting Date
is before the first distribution calendar year,
the life expectancy of the DesignatedBeneficiary determined using the
Beneficiary’s age
as of the
Beneficiary’s
birthday in the calendar year
that contains the Annuity Starting Date.

 

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

 

		(3)	Death of Surviving Spouse Before
Distributions to Surviving Spouse Are
Required to Begin: If the Member dies
before the date distribution of his interest begins,
the Member’ssurviving spouse is the Member’s sole
Designated Beneficiary, and the surviving spouse dies before
distributions to the surviving spouse begin, this Section 6.6(h) will apply as if
the surviving spouse were the Member, except that the time by
which distributions mustbegin will be
determined without regard to

6.6(e)(ii)(1). (i)Definitions:

(i)       Designated
Beneficiary: The individual who is
designated as the Beneficiary under
the Plan and
is the designated
beneficiary under Code Section 401(a)(9) and Treasury Regulations Section 1.401(a)(9)-4.

 

(ii)
DistributionCalendarYear: A calendar year
for which a minimum distribution is required. For distributions beginning before the
Member’s death, the distribution calendar year
is the calendar year
immediately preceding the calendar year
which contains the Member’s Required
Beginning Date. For
distributions beginning after
the Member’s death, the first distribution calendar year
is the calendar year
in which distributions are required to begin under Section 6.6(e)(ii).

 

(iii)       Life
Expectancy: Life expectancy as computed by use of the Single

Life Table in Treasury Regulations Section 1.401(a)(9)-9,
Q&A-1.

    	 

    	 

    

(iv)       Required
Beginning Date: The required beginning date for a Member who is a five-percent
(5%) owner (within the meaning of Code Section 416(i)(1)) is April 1 of the calendar year
next following the calendar year
in which the Member attains age 70-1/2.
The required beginning date for any other Member is April 1 of the
calendar year next following
the later to occur of the calendar year
of his attainment of age 70-1/2 or the calendar year
of his retirement.

 

(v) Actuarial
Gain: Actuarial Gain means the difference between an amount determined using the
actuarial assumptions (i.e., investment return, mortality, expense, and other similar
assumptions) used to calculate the initial payments
before adjustment for any
increases and the
amount determined under
the actual experience with respect to those factors. Actuarial Gain also includes differences
between the amount determined using actuarial assumptions when an annuity was purchased or
commenced and such amount determined using actuarial assumptions used in calculating payments
at the time the Actuarial Gain is determined.

 

6.7       Reversion.
Employer contributions are
to revert to the Employer under the
following conditions:

 

(a)
Mistake of Fact. In the case of an Employer contribution which is made by the
Employer
by reason
of a mistake of fact, such contribution shall be returned to the Employer
within one year after the payment of
the contribution.

 

(b) DisqualificationofPlan.
If this Plan does not initially qualify
under Code Section 401(a), Employer
contributions attributable to a period for which the Plan is disqualified shall be
returned to the Employer
within one year
after the date of denial of qualification of the Plan.

 

(c)
Nondeductible Contribution. If any
Employer contribution is determined by
the Internal Revenue Service to be nondeductible
under Code Section 404, then such Employer
contribution, to the extent that is determined to be nondeductible, shall be returned to the
Employer within one year after the disallowance
of the deduction.

 

(d)       Plan
Termination. Upon termination of the
Plan, as provided in Section

8.6 of the Plan.

    	 

    	 

    

ARTICLE VII
CONTRIBUTIONS BY THE EMPLOYER

7.1       Employer
Contributions. The Plan benefits to Members, Terminated Members,

Retired Members, Spouses,
and Beneficiaries of the Plan shall be satisfied to the extent that contributions
by the Employer
to the Trust Fund and investment earnings on the Trust Fund shall so permit. Employer
contributions during any Plan Year
shall be determined by the Board (a) on the
basis of the actuarial statement submitted by the Actuary employed
by the Plan Administrator on behalf of Members, Terminated Members, Retired Members,
Spouses, and Beneficiaries, (b) on the basis of the Plan’s investment policy,
and (c) within the range of the minimum and
maximum amounts required and permitted by law,
on the basis of the Employer’s
financial position as determined by the Board from time to time. So long as the
Plan has not been terminated or revoked and the Employer
is financially able, the contribution made by
the Employer during any
Plan Year shall be at least the amount of
the contribution certified by the Actuary
as necessary to avoid an accumulated funding deficiency.

 

7.2
FundingandInvestmentPolicy. From
time to time, the Plan Administrator or its delegate shall furnish the Trustee with an estimate
of the amounts required during at least the next three Plan Years to
provide benefit payments
to Members, Terminated Members, Retired Members, Eligible Spouses, and Beneficiaries. On
the basis of this estimate, and also taking into account estimated administrative
expenses of the Plan and any known or
contemplated events that are expected
to have significant
financial effects on
the Plan, the
Trustee shall determine
the short-term and long-term
liquidity needs of
the Plan. In addition to making the ultimate
investment decisions, the
Trustee shall determine
the broad investment policy with
respect to the
Plan on the basis of the Plan’s liquidity needs,
on the basis of reasonable goals as to the appropriate rate of investment return and
degree of investment risk, and on the
basis of the nonbinding recommendations of the Employer.
It is expected that this broad investment policy
shall be revised from time to time to recognize changing conditions. Alternatively,
any or all of the responsibilities allocated
to the Trustee in this Section may
be delegated by the Board of Directors
to an investment manager within the meaning of ERISA Section 3(38).

 

7.3
Payment of
Expenses. All expenses of administering this Plan and the Trust as
may be mutually agreed upon from time to time or that may arise in connection
with the Plan and Trust shall be paid from the Trust Fund, unless the Employer
pays such expenses.

    	 

    	 

    

ARTICLE VIII

 

AMENDMENT AND
TERMINATION OF PLAN

 

8.1
RighttoAmend. The Employer
reserves the right
to amend this
Plan or the
Trust, by a resolution adopted by
the Board of Directors, without the consent of any Member,
Terminated Member, Retired Member, Eligible Spouse, or Beneficiary, provided, however,
that no amendment of this Plan or the
Trust shall deprive any Member, Terminated
Member, Retired Member, Eligible Spouse, or Beneficiary of any
vested equitable interest herein nor shall such amendment increase the duties and obligations
of the Trustee except with its consent.

 

8.2
Right to Terminate. Although it
is the intention of the Employer
that this Plan shall be continued and that contributions shall be made regularly thereto
each year,
the Employer,
by a resolution adopted by
the Board of Directors, may terminate this Plan or permanently discontinue contributions
at any time.

 

8.3
Allocation upon Termination.
If this Plan is terminated, the value of the
Trust Fund remaining after providing for the expenses of administration of the Plan and Trust shall be
allocated among the Members, Terminated Members, Retired Members, Eligible Spouses,
and Beneficiaries in the order of precedence and amounts specified in ERISA Section 4044 and the
regulations thereunder.

 

The
allocation of the Trust Fund in accordance with this Section shall be
based on the method of payment
of Monthly Retirement
Income or Death Benefits specified in this Plan and shall be calculated as of
the date on which this Plan is terminated. In the
event that the Trust Fund assets on or after the date of termination are insufficient
to fund all benefits within any class, the benefits of all higher orders of precedence
shall be funded, the benefits of all lower orders of precedence shall be unfunded,
and the assets remaining shall be allocated among the Members of such partially funded
class on the
basis of their
respective actuarial reserves, subject to the provisions of ERISA Section 4044 and
any regulations thereunder.

 

8.4
VestinguponTerminationorPartialTermination. In the event of the termination
of the Plan, the Accrued Benefit as of the date of termination of each Member who has
not terminated his employment
as of the date of termination of the Plan
shall be fully vested in his Accrued Benefit.
Similarly, in the event of a partial termination of the Plan, each Member who is affected
by such partial termination shall be fully
vested in his Accrued Benefit.

 

8.5
Distributions upon Termination. The Employer
shall file timely notice of the termination
with the Internal Revenue Service in order to obtain a determination letter from the
Internal Revenue Service that the Plan is qualified upon termination under Code Section 401(a). Within
a reasonable period of time following the
receipt of a determination letter from the Internal Revenue Service, the interest of
each Member, Terminated Member, Retired Member, Eligible Spouse or
Beneficiary shall be distributable in the
form of a non-transferable
annuity commencing at age 62 or 65, which
annuity shall be purchased with the assets
allocated for the benefit of such person
upon termination or shall be provided for
in some other manner as determined by
the Plan Administrator; provided, however, that each Member may be
offered the option of a lump sum distribution with the consent of his Eligible Spouse,
if any.

    	 

    	 

    

8.6
Reversions upon Termination. Any assets
remaining after the satisfaction of all liabilities under the Plan as of the date of
termination to Members, Terminated Members, Retired Members, Eligible Spouses, and Beneficiaries, which funds remain by
reason of erroneous actuarial computation, shall be returned to the Employer.

    	 

    	 

    

ARTICLE IX

 

PLAN ADMINISTRATOR

 

9.1
Designation. The Employer shall
serve as the Plan Administrator, in which capacity it shall generally
have all the powers, duties and responsibilities
as set forth in ERISA.
It is anticipated that the Employer
shall delegate its rights, duties and responsibilities as Plan Administrator to an
administrative committee consisting
of one or
more persons designated
from time to time by the Board, and the Employer
hereby authorizes such delegation.

 

The
President of the Employer
(or in the event of the President’s
inability or failure to act, any
Vice President of such company) shall
certify in writing to the Trustee, as promptly as
practicable after any change in the membership
of the administrative committee, the names of the persons then serving as members of the
committee. The Trustee shall be entitled to rely
on the names so certified as being the authorized and acting members of
the committee until notified of any change
by subsequent certification.

 

The
administrative committee may act at a
meeting or by unanimous written consent without a meeting. The administrative committee
shall elect one of its members as chairman, appoint a secretary,
who may or
may not be a committee member, and advise the Trustee of such actions in writing. The
secretary shall keep a record of all meetings and forward all necessary communications
to the Employer or the
Trustee. A quorum of the committee shall consist of not
less than two-thirds
of the members
thereof, and a majority
vote of those
present shall control
on all matters acted upon at
a meeting of the committee. A dissenting
committee member who, within a reasonable time after he has
knowledge of any action or failure to
act by the majority,
registers his dissent in writing delivered to the other committee members,
the Employer,
and the Trustee, shall not be responsible for any such action or failure to act.

 

9.2
Compensation and Records. The Plan Administrator shall serve until the designation
of a replacement by the Board of the Employer.
No compensation shall be paid the Plan Administrator from the Trust Fund for its services.
The Plan Administrator shall keep a permanent record of its actions with respect to the Plan, which shall be available for inspection
by appropriate parties as provided in the Code and ERISA.

 

9.3
Duties and Powers; Claims Review Procedures. Subject to the limitations of the Plan, the Plan Administrator shall from time
to time establish rules for the administration
of the Plan and transaction of its business. The records of the Employer,
as certified to the Plan Administrator, shall be conclusive with respect to any and
all factual matters dealing with the employment
of a Member. The Plan Administrator shall have the
exclusive discretionary power to construe and interpret the Plan, and to determine
all questions that may arise
thereunder relating to (a)
the eligibility of
individuals to participate
in the Plan,
(b) the amount
of benefits to
which any Member or Beneficiary may become
entitled hereunder, and (c) any situation
not specifically covered by the provisions of
the Plan, and the Plan Administrator’s
decisions on such matters shall be final and binding on all parties. Any interpretation
or determination made pursuant to such discretionary authority
will be upheld on judicial review, unless it is shown to be in abuse of discretion
(i.e., arbitrary and capricious).

    	 

    	 

    

The
Plan Administrator shall pass upon any
written claim for benefits under this Plan, which claim shall be submitted by
the Member, Terminated Member, Retired Member, Eligible Spouse, or Beneficiary
upon a form furnished to such claimant by
the Plan Administrator. In the
event that the claim of any
person to all or any
part of any payment
or benefit under this Plan shall be denied,
the Plan Administrator shall
provide to the
claimant, within 90 days
after receipt of such
claim (unless special
circumstances require an
extension of time
for processing, in
which written notice of such extension shall be provided to the claimant and such
decision should be rendered as soon as possible, but in no event
later than 180 days after receipt of such
claim), a written notice setting forth, in a manner calculated to be understood by the claimant:

 

(a)The
specific reason or reasons for the denial;

 

 

 

based;

(b)       Specific
references to the pertinent Plan provisions on which the
denial is

 

(c)
A description of any additional material
or information necessary for the claimant
to perfect the claim and an explanation as to why
such material or information is necessary; and

 

(d) A
description of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the
claimant’s right to bring a civil action under Section 502(a) of ERISA following
an adverse benefit determination upon review.

 

Within
60 days after
receipt of the above material, the claimant shall have a reasonable opportunity to
appeal the claim denial to the Plan Administrator for a full and fair review. The claimant
or his duly authorized representative;

 

(e)May
request a review upon written notice to the Plan Administrator;

 

(f)
May review and obtain copies of
pertinent documents, records and other information relevant to the claimant’s claim for benefits; and

 

(g) May
submit issues and comments in writing, documents, records and other information relating to the claim for benefits.

 

A decision
by the Plan Administrator shall be made
not later than 60 days after receipt of
a request for review, unless special circumstances require an extension of time for processing, in which written notice of such
extension shall be provided to the claimant and such decision
should be rendered as soon as possible, but in no event later than
120 days after
receipt of such claim. The Plan Administrator’s
decision on review shall be written and shall include specific reasons for the
decision, written in a manner calculated to be understood by the
claimant, with specific references to the pertinent Plan provisions on which the decision is based. The decision upon review
shall also include a statement that the claimant is entitled to receive, upon request and free of charge,
reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits
and a statement of the claimant’s right to bring an action under Section 502(a) of ERISA.

    	 

    	 

    

All
determinations with respect to questions arising in the administration, interpretation,
and application of the Plan, including the review of denied claims, shall be conclusive and binding on all persons, subject, however,
to the provisions of the Code and ERISA.

 

9.4
Authorization of Payments.
The Plan Administrator shall direct the Trustee in writing to make payments
from the Trust Fund to any Member, Terminated
Member, Retired Member, Eligible Spouse, or Beneficiary who
qualifies for such payments hereunder.
Such written order to the Trustee shall specify at
least the name of such person, his address, his Social Security number, and the amount and frequency of such payments.

 

9.5
No Discrimination. The Plan Administrator shall not take action or direct the
Trustee to take any action with
respect to any of the benefits provided
hereunder or otherwise in pursuance of the powers conferred herein upon
the Plan Administrator which would be discriminatory in favor of Members or employees who are officers, shareholders, or highly
compensated employees
or which would
result in benefiting one
Member, or group of
Members, at the expense of another, or
in the application of different rules to substantially similar sets of
facts.

 

9.6
Retention of Agents. The Plan Administrator may
delegate its responsibilities under this Article IX to one or more of its employees and may employ
such counsel, accountants, Actuaries, or other agents as it shall deem advisable. The Employer
shall pay,
or cause to
be paid from the Trust Fund, the
compensation of such counsel, accountants,
Actuaries, and other agents and any
other expenses incurred by the Plan Administrator in the administration of the Plan
and Trust.

    	 

    	 

    

ARTICLE X

 

THE TRUST FUND
AND TRUSTEE

 

10.1
General. The Employer has entered
into a Trust Agreement with the Trustee to hold
the funds necessary to provide the benefits as set forth in this Plan.

 

10.2
DispositionofTrustFund. The Trust Fund shall be received, held in Trust, and
disbursed by the Trustee in accordance with
the provisions of the Trust Agreement and the
provisions as set forth in this Plan. No part of the
Trust Fund shall be used for, or diverted
to, purposes other than for the exclusive benefit of Members, Terminated Members, Retired
Members, Eligible Spouses, and Beneficiaries under this Plan prior to the satisfaction of all
liabilities hereunder with respect to such persons. No person shall have any
interest in or right to the Trust Fund or any
part thereof, except as specifically provided for in
this Plan or the Trust Agreement.

 

10.3
Right of Removal. The Board of the Employer
may remove the Trustee at any
time upon the notice required by the terms
of the Trust Agreement and, upon such removal or upon the resignation of the Trustee, the Employer
shall designate and appoint a successor Trustee.

 

10.4
PowersofTrustee. The Trustee shall have such powers to hold, invest, reinvest,
control, and disburse funds as at that time shall be set forth in the Trust Agreement. In exercising such powers, the Trustee may
request instructions in writing from the Plan Administrator on any
matters affecting the Trust and may rely and act thereon.

 

10.5
Interest-Bearing Deposit With Employer.
The investment of all or part of the Trust
Fund in deposits which bear a reasonable rate of interest in Southwest Georgia Bank or any other bank or financial institution
which is supervised by the United States or a State and which is a fiduciary for the
Plan is expressly authorized.

 

10.6
Integration of Trust Agreement. The Trust Agreement shall be deemed to form
a part of the Plan, and all rights of Members
or others under this Plan shall be subject to the
provisions of the Trust Agreement to the extent such provisions are not contradicted by
specific provisions of this Plan.

    	 

    	 

    

ARTICLE XI
MISCELLANEOUS PROVISIONS

11.1       Prohibition
Against Diversion. There shall be no diversion of any
portion of the

assets of the
Trust Fund other than for the exclusive benefit of Members, Terminated Members, Retired Members, Eligible Spouses, and Beneficiaries,
except as provided in Section 8.6 at the time of termination of the
Plan and Trust, or except
as may otherwise be permissible under the
Code and Regulations issued thereunder.

 

11.2
PrudentManRule. For purposes of Part 4 of
Title I of ERISA, the Employer, the Trustee, and the Plan Administrator shall each
be named fiduciaries and shall each discharge their respective duties hereunder with
the care, skill, prudence and diligence under the circumstances then
prevailing that a prudent man acting
in a like capacity and familiar with such
matters would use in the conduct of an enterprise of a like character and with
like aims. Without limiting the
generality of the above,
it is specifically
provided that the
appointment and retention of any parties
pursuant to Article IX of the Plan are “duties” of the Employer for purposes of this Section.

 

11.3
Responsibilities of Parties. The Employer
shall be responsible for the administration and management of
the Plan except for those duties specifically allocated to the Trustee or Plan Administrator.
The Trustee shall have exclusive responsibility for the management and control of
the responsibility for
all matters specifically delegated to it
by the Employer
in the Plan. The Employer
shall be deemed the Plan Sponsor for all purposes of ERISA.

 

11.4
Reports Furnished Members. The Plan Administrator shall cause to be furnished
to each Member, and to each Terminated
Member, Retired Member, Eligible Spouse, or Beneficiary receiving
benefits under this
Plan, in the manner
and within the
time limits specified
in the Code and ERISA, each of the following:

 

(a)A
summary plan description and periodic revisions; (b)Notification of amendments to the Plan; and

(c)An
annual funding notice.

 

11.5
ReportsAvailabletoMembers. The Plan Administrator shall make copies of the allowing documents available at the
principal office of Employer
for examination by any
Member, Terminated Member, Retired Member, Eligible Spouse, or Beneficiary:

 

(a)The
Plan and Trust Agreement;

 

(b)       The
summary plan description; and

 

(c)The
latest annual report.

    	 

    	 

    

11.6
Reports Upon Request. The Plan Administrator shall furnish to any Member,
Terminated Member, Retired Member, Eligible Spouse, or Beneficiary who so requests
in writing, once during any 12-month period,
a statement indicating, on the basis of the latest available information:

 

(a)The
total benefits accrued; and

 

(b) The
nonforfeitable benefits, if any, which have accrued,
or the earliest date on which benefits will become nonforfeitable.

 

The Plan
Administrator shall also furnish to any
Member, Terminated Member, Retired Member, Eligible Spouse, or Beneficiary who
so requests in writing, at a reasonable charge to be prescribed
by regulation of the Secretary of Labor,
any document referred to in Section 11.5.

 

11.7
MergerorConsolidationofEmployer.
If the Employer
is merged or consolidated with another organization, or another organization acquires
all or substantially all
of the Employer’s
assets, such organization may, but shall
not be required to, become the Employer
hereunder by action of
its governing board. Such change in Employers
shall not be deemed a termination of the Plan by either the predecessor or successor Employer.

 

11.8
PlanContinuanceVoluntary. Although
it is the
intention of the
Employer
that this Plan shall be continued and its
contributions made regularly, this Plan is entirely voluntary on the part of the Employer,
and the continuance of the Plan and the payments
thereunder are not assumed as a contractual
obligation of the Employer.

 

11.9
SuspensionofContributions. The Employer
specifically reserves the right, in its sole and uncontrolled discretion, to modify
or suspend contributions to the Plan (in
whole or in part) at
any time or
from time to
time and for
any period or
periods, or to
discontinue at any
time the contributions under this Plan.

 

11.10
Agreement Not An Employment Contract.
This Plan shall not be deemed to constitute a contract between the
Employer and any
Member or to be a consideration or
an inducement for the employment
of any
Member or Employee. Nothing contained
in this Plan shall be deemed to give any
Member or Employee the right to be retained in the service of the Employer
or to interfere with the right of the Employer
to discharge any
Member or Employee
at any time regardless of
the effect which such discharge shall have upon
such individual as a Member in the Plan.

 

11.11
Facility of Payments.
In making any
distribution to or
for the benefit
of any minor
or incompetent Member, Terminated Member, Retired Member, Eligible Spouse, or Beneficiary or for the benefit of any
other Member, Terminated Member, Retired Member, Eligible Spouse, or Beneficiary who, in the
opinion of the Plan Administrator, is incapable of properly
using, expending, investing, or otherwise disposing of such
distribution, then the
Plan Administrator, in
its sole, absolute, and uncontrolled discretion may,
but need not, order the Trustee to make
such distribution to a legal or natural guardian or other relative of
such minor or court appointed committee of any
incompetent, or to any adult
with whom such person temporarily or permanently
resides; and any such guardian, committee, relative, or other person shall have full

    	 

    	 

    

authority and
discretion to expend such distribution for the use and benefit of such person; and the
receipt of such guardian, committee, relative or other person shall
be a complete discharge
to the Trustee, without any
responsibility on its part or on the part of the Plan
Administrator to see to the application thereof.

 

11.12
Unclaimed Benefits. If any benefits
payable to, or
with respect to, a Member are not claimed for a period of 7 years
from the date of entitlement, as determined
by the Plan
Administrator, and following a diligent effort to locate such person, the person shall be presumed dead and the post-death
benefits, if any under this
Plan, shall be paid pursuant to the law of intestate succession of the State of Georgia, as in effect on the date of payment, provided
that the Member’s benefits shall
be reinstated in the event that such person later files claim for such benefits with the Plan Administrator and in the event that
the Member or his Eligible Spouse or other Beneficiary has
not previously received the Actuarial
Equivalent of such benefits. No benefits shall be paid retroactively to the date of
entitlement if the member cannot be located at
such time after a diligent search
but later is
found; instead, benefits
with respect to
such Member shall be paid prospectively
from the first date of the month coincident with or immediately following the date
on which the Member files a claim therefore with the Plan Administrator. Nothing in this Section shall be construed to prohibit
the Plan Administrator, in its sole discretion, from paying benefits prior to the
expiration of such 7-year
period to any surviving Eligible Spouse
or other Beneficiary of a Member who cannot be located after
a diligent search has been conducted.

 

11.13
GoverningLaw. This Plan shall be administered in the United States of
America, and its validity, construction, and all rights hereunder shall be governed
by the laws of the United States of America under ERISA.
To the extent that ERISA
shall not be held to have preempted local
law, the Plan shall be administered under
the laws of the State of Georgia. If
any provision of the Plan
shall be held
invalid or unenforceable,
the remaining provisions
hereof shall continue
to be fully effective.

 

11.14
Headings No Part of Agreement. Headings of articles, sections, and subsections of the Plan are inserted for convenience
of reference. They constitute no part of the Plan and are not to be considered in the construction thereof.

 

11.15
Merger or Consolidation of Plan. This Plan and
Trust shall not be merged or consolidate with, nor shall any
assets or liabilities be transferred to,
any other plan, unless the benefits payable
to each Member
if the Plan
was terminated immediately
after such action
would be equal to or greater than the benefits to which such Member would have been
entitled if this Plan had been terminated immediately before
such action. Effective as of the close of business on December 31, 2004, the
Plan shall accept the merger of the
Sylvester Plan into the Plan, and, as soon as administratively practicable
thereafter, the related trust-to-trust
transfer of assets and liabilities, in accordance with the requirements of Code Section
414(1). The merger of the Sylvester Plan with and into the Plan shall not decrease
a Member’s vested interest and shall not reduce a Member’s benefits in
violation of Code Section 411(d)(6). The Company and the Plan
Administrator shall have the authority to take such actions as may be necessary
to effectuate the merger of the Sylvester
Plan with and into the Plan and the related transfer of assets and liabilities.

    	 

    	 

    

11.16
Indemnification. The Employer
hereby agrees to indemnify any
Employee or
Member of the Board of the Employer
to the full extent of any expenses, penalties,
damages, or other pecuniary loss which such Employee
or member may suffer as a result of his
responsibilities, obligations, or duties in connection with the Plan. Such indemnification shall be
paid by the Employer
to the Employee
or member to the extent that fiduciary liability insurance is not available to cover
the payment of such items,
but in no event shall such items be paid out
of Plan assets.

 

11.17 Direct Transfer of Eligible Rollover Distributions.

 

(a)
Notwithstanding any provision
of the Plan to the contrary, with respect to any
distribution made on or after January 1,
1993, a Distributee 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 Distributee in a Direct Rollover.

 

 

 

apply:

(b)       For
the purposes of this Section 11.17, the following
definitions shall

 

(i)
“Eligible Rollover Distribution” shall mean any
distribution of all or any portion of
the balance to the credit of the Distributee, except that an Eligible Rollover Distribution
shall not include: any distribution that
is one of a series of substantially equal periodic payments
(not less frequently than annually) made for the life (or life expectancy)
of the Distributee or the
joint lives (or joint life expectancies) of the
Distributee and the Distributee’s designated Beneficiary,
or for a specified period of ten
years or more; any
distribution to the extent such
distribution is required under Code Section 401(a)(9); any
hardship distribution described in Code Section 401(k)(2)(B) (i)(IV); or the portion
of any distribution that is not includable in gross
income (determined without regard to the exclusion for net unrealized appreciation with respect to
employer
securities). Effective as of January 1, 2007,
an Eligible Rollover
Distribution shall include any
after-tax
contributions credited to the Distributee, provided, however, that the
Eligible Retirement Plan
to which such
contributions would be
transferred to in
a Direct Rollover agrees to account separately for such amounts so
transferred (including interest thereon), including accounting separately for the
portion of the distribution which is includible
in gross income
and the portion
of the distribution
which is not
includible in gross income.

 

(ii)       “Eligible
Retirement Plan” shall mean an individual
retirement account described in Code Section 408(a), an individual retirement annuity described
in Code Section 408(b), an annuity plan
described in Code Section 403(a), or a qualified trust described in Code Section 401(a), that accepts the Distributee’s
Eligible Rollover Distribution. However, in the case of
an Eligible Rollover Distribution to the surviving spouse, an Eligible Retirement Plan shall mean only
an individual retirement account or individual retirement annuity. 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) which 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 which agrees
to separately

    	 

    	 

    

account for amounts
transferred into such plan from this Plan. The definition of Eligible Retirement Plan
shall also apply in the case
of a distribution to
a surviving spouse, or
to a spouse or former spouse who is the alternate payee
under a qualified domestic relation order, as defined in Code Section 414(p). For distributions made on or after January
1,

2008, Eligible Retirement
Plan shall also include a Roth IRA described in Code Section

408A(b).

 

(iii)
“Distributee” shall
mean an Employee or former Employee.
In addition, the Employee’s
or former Employee’s surviving spouse
and the Employee’s or former Employee’s
spouse or former spouse who is the alternate payee
under a qualified domestic relations order, as defined in Code Section 414(p), are
Distributees with regard to the interest of the spouse or former spouse. Effective
as of January 1, 2010, a non- spouse beneficiary who is a “designated beneficiary”
under Code Section 401(a)(9)(E) and the regulations thereunder (a “Non Spouse
Beneficiary”) shall
be a Distributee with respect to the rights set forth in Section 11.17(c).

 

(iv)
“DirectRollover” shall
mean a payment
to the Eligible Retirement Plan specified by
the Distributee either by direct transfer from the Plan, or by
delivery of the distribution
check by the
Distributee, provided such
check is made
out in a manner
to ensure that it is negotiable only by
the trustee of the Eligible Retirement Plan.

 

(c)
Non-Spouse Beneficiary Rollover Right.
For distributions beginning
on or after
January 1, 2010, a Non-Spouse Beneficiary
by a direct trustee to trustee transfer may
roll over all or any
part of his or her distribution to an
Eligible Retirement Plan which is an individual retirement account described in Code
Section 408(a) or an individual retirement annuity described in Code
Section 408(b) (collectively, an “IRA”) established on behalf of
the Non-Spouse Beneficiary for purposes
of receiving the distribution, provided the distribution qualifies as an Eligible Rollover
Distribution. To the extent provided under applicable law and for purposes provided under this paragraph, a trust
maintained for the benefit of one or more designated
beneficiaries shall be treated in the same manner as a trust designated beneficiary.

 

(i)
Trust Beneficiary. If the
Member’s named Beneficiary is a trust, the Plan may make a direct rollover to
an IRA on
behalf of the trust, provided the trust satisfies the requirements to be a designated
Beneficiary within the meaning of Code Section
401(a)(9)(E).

 

(ii)
Required Minimum Distributions Not Eligible for Rollover. A Non-Spouse
Beneficiary may not rollover an amount that is a required
minimum distribution, as determined under the applicable Treasury Regulations and other
Internal Revenue Service guidance. If the
Member dies before his or her Required
Beginning Date (as defined in
Section 6.6) and
the Non-Spouse
Beneficiary rolls
over to an
IRA the maximum amount eligible
for rollover, the Beneficiary may elect
to use either the 5-year rule or the life
expectancy rule, pursuant to Treasury Regulations
Section 1.401(a)(9)-3, A-4(c),
in determining the required minimum distributions from the IRA that receives the Non-Spouse
Beneficiary’s distribution.

    	 

    	 

    

ARTICLE XII

 

TOP-HEAVY
PROVISIONS

 

12.1
Application. For Plan Years beginning January
1, 1984 or later, in the event that the
Plan is determined to be a Top-Heavy Plan
as hereinafter defined, this Article XII shall become effective as of the first day
of the Plan Year in which the Plan is a Top-Heavy
Plan.

 

12.2       Definitions.

 

(a)
Top Heavy Compensation. For
purposes of this Section of the Plan, Top- Heavy
Compensation means an individual’s compensation (as determined under Code Section

415(c)(3)) from the Employer
for the Plan Year, as adjusted pursuant to Code Section 415(d); provided, however,
that for purposes of determining Key
Employees, Top-Heavy
Compensation shall be increased by elective
contributions under a cafeteria plan (Code Section 125), elective deferrals (Code Sections 401(k) and 401(a)(8)), and contributions
to a SEP (Code Section

402(h)(1)(B)), and, in
the case of Employer
contributions made pursuant to a salary reduction agreement, increased by
contributions to a tax-sheltered annuity
(Code Section 403(b)).

 

(b) Minimum
Benefit. The accrued benefit equal to two percent (2%) of a Member’s average
Top Heavy Compensation for each Year of
Service disregarding Years of Service when the Plan was not a Top-Heavy
Plan.

 

(c)
Top-Heavy Plan.
A plan that is required in such year
to satisfy the
requirements of Code Section 416 because the aggregate of the
Accrued Retirement Benefits of all Key Employees
in the Plan exceeds sixty percent (60%) of
the aggregate of the Accrued Retirement Benefits of all
Members in the Plan, such determination to be made in accordance with the procedures
described in Code Section 416(g) and
the regulations thereunder as of the Annual Valuation Date immediately preceding such
Plan Year (or in the case of the
first Plan Year, as
of the last
day of such Plan Year). The Accrued Retirement Benefit of any Member
who has not performed any
services for the Employer
in the past five years
shall not be included. For purposes of determining whether the Plan is a Top-Heavy
Plan, the Plan shall be aggregated with all other plans maintained by the Employer
which are required to be aggregated with the Plan
in order for the Plan to meet the requirements of Code Sections 401(a)(4) and 410, and all other plans maintained by
the Employer
in which a Key Employee
is a Member (the “Required Aggregation Group.”) The Plan may also
be aggregated with any
other plans maintained by the Employer
(the “Permissive Aggregation Group”) so long as such aggregation would not prevent the aggregated group from satisfying
the requirements of Code Sections 401(a)(4) and 410.

 

12.3
Accrual of Minimum Benefit. For
any Plan Year in which the Plan is a Top-
Heavy Plan, the Minimum
Benefit as defined in Section 12.2(b) shall be accrued for each
Member who is not a Key Employee, provided that the total Minimum Benefit accrued
for a non-Key Employee under this provision
shall not exceed 20% of his Top Heavy Compensation.

 

Effective
January 1, 2007, any minimum benefits required
by this Article XII will be
provided under one or more of the defined contribution plans maintained by the Employer.

    	 

    	 

    

12.4
Vesting. If for any
Plan Year or
Years the Plan is a Top-Heavy
Plan, an Employee’s
vested interest in his Accrued Benefit for such Plan Year
and all preceding Plan Years shall not be less than as determined under the following vesting schedule:

 

	
        Years of Service

         

        Less
        than 2
	
        Vested Percentage

         

        0%
	
        Forfeited Percentage

         

        100%

	2	20%	80%
	3	40%	60%
	4	60%	40%
	5	80%	20%
	6	100%	0%

 

 

If the Plan ceases to
be a Top-Heavy Plan, the vesting schedule
in this Section 12.4 shall revert to the provisions in Section 5.1; provided that any portion of the accrued benefit that was nonforfeitable
before the Plan ceases to be a Top-Heavy
Plan shall remain nonforfeitable, and further provided that any Member who has three
(3) or more Years of Service at the time the Plan ceases to be a Top-Heavy
Plan shall have the right to elect during the Election Period (as hereinafter defined)
to continue to have his vested interest determined in accordance with the vesting schedule contained in this Section 12.4.

 

For
the purposes of this Section 12.4, Years of Service shall include Service prior to
the Effective Date, and shall include Service during the Election Period. The Election
Period shall be the period during which such Members may make
such vesting schedule
election and shall
begin on the date of the adoption of the amendment which changes the vesting schedule
and shall end on the later of:

 

(i)       The
date which is 60 days
after the adoption of the amendment which
changes the vesting schedule;

 

(ii)       The
date which is 60 days after the effective
date of the amendment which changes the vesting schedule; or

 

(iii)       The
date which is 60 days after the date such Member is notified in writing of the amendment which changes the vesting schedule.

 

12.5       Post-EGTRRA
Top-Heavy Provisions.

 

(a)
Effective date. This Section 12.5
shall apply for purposes of determining whether the Plan is a Top-Heavy
Plan under Code Section 416(g) for Plan Years
beginning after December 31, 2001, and whether the Plan satisfies the minimum benefits requirements of Code
Section 416(c) for such years. This Section 12.5 amends Sections 12.1 through 12.4
of the Plan.

 

(b)       Determination
of Top-Heavy Status.

 

(i)       Key
Employee.
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 an officer of the Employer having
annual compensation greater than $135,000 (as adjusted under Code Section 416(i)(1)
for Plan Years beginning after December 31, 2005), a 5% owner of
the Employer,
or a 1% owner of the Employer
having annual compensation of more than $150,000. For this
purpose, annual compensation means compensation
within the meaning
of Code Section
415(c)(3). The determination of who is a Key Employee
will be made in accordance with Code Section 416(i)(1) and the applicable regulations
and other guidance of general applicability issued thereunder.

 

(ii)Determination of Present Values and
Amounts.This Section

2.5(b)(ii) shall apply
for purposes of determining the present value of accrued benefits of

Employees
as of the determination date.

 

		(1)	Distributions During Year
Ending on the Determination Date.
The present value of accrued benefits 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 Code Section 416(g)(2) 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 Code Section 416(g)(2)(A)(i).
In the case
of a distribution made for a reason other than separation from service or, effective
as of January 1, 2002, severance from employment,
death, or disability, this provision shall be
applied by substituting “5-year
period” for “1-year
period.”

 

		(2)	Employees
Not Performing Services During Year Ending on the Determination Date. The accrued
benefits of any individual who has not performed services for the
Employing Unit during the 1-year
period ending on the determination date shall not be taken into account.

 

(c)
Minimum Benefits. For purposes of satisfying
the minimum benefit requirements of Code Section 416(c)(1), in determining Years of
Service with the Employer, any
Service with the Employer shall be disregarded to the extent that such Service
occurs during a Plan Year when the Plan
benefits (within the meaning of Code Section 410(b)) no Key Employee
or former Employee.

    	 

    	 

    

IN
WITNESS
WHEREOF, the Employer
has caused this amended and restated

Plan to be executed and
effective as of January 1, 2015.

 

EMPLOYER:

 

SOUTHWEST GEORGIA FINANCIAL CORPORATION

 

 

 

Date: January 21, 2015

By:
/s/DeWitt Drew

 

Title:
President and Chief Executive Officer

    	 

    	 

    

ANNEX A

 

AMENDMENTS
REQUIRED UNDER SECTION 415 REGULATIONS, PFEA AND WRERA

 

I. PREAMBLE AND EFFECTIVE
DATE

 

This Annex A to
the Plan is adopted to reflect certain provisions of the final regulations under Section 415 of
the Code, the Pension Funding Equity Act
of 2004, and the Worker, Retiree and Employer
Recovery Act of 2008. This Annex A shall
be effective as stated herein and shall modify,
amend, and supersede the provisions of Section 6.1 of the Plan to the extent
those provisions are inconsistent with the provisions of this Annex A.

 

This Annex A shall apply
in Limitation Years beginning on or after July
1, 2007, except as otherwise provided herein.

 

II. MAXIMUM PERMISSIBLE
BENEFIT

 

Notwithstanding any
other provision of the Plan, in no event
shall the annual accrued benefit accrued by
a Member nor the annual benefit payable
to a Member under this Plan attributable
to Employer contributions and payable
as a straight life annuity at Normal Retirement Age exceed the lesser of
the Defined Benefit Dollar Limitation or the Defined Benefit Compensation Limitation.

 

		A.	Applicable Mortality Table.
For purposes of the Annex A, the term Applicable
Mortality Table shall be the applicable mortality table
described under Code Section 417 (e)(3)(B).

 

		B.	Defined Benefit Compensation Limitation:
100% of a Member’s High Three- Year
Average Compensation, payable in the form of a straight life annuity.

 

		C.	Defined Benefit Dollar Limitation: Effective for Limitation
Years ending after December 31, 2005, the Defined Benefit Dollar Limitation
is $170,000, automatically adjusted under Code
Section 415(d) and as provided in G. below, effective
January 1 of each year,
as published in the Internal Revenue Bulletin, and payable
in the form of a straight life annuity. The new limitation shall apply to Limitation
Years ending with or within the calendar year
of the date of the adjustment, but a Member’s benefits shall not
reflect the adjusted limit prior to
January 1 of that calendar year.

 

		D.	Adjustment for Less Than 10 Years of Participation or Service:
If the Member has less than 10 years of participation in the Plan, the Defined Benefit
Dollar Limitation shall be multiplied by
a fraction -- (i) the numerator of
which is the number of Years (or part thereof, but not less than one year)
of participation in the Plan, and (ii) the denominator of which is 10. In
the case of a Member who has less than
ten years
of Years of Service with the
Employer, the
Defined Benefit Compensation Limitation shall be multiplied by
a fraction -- (i) the numerator of

    	 

    	 

    

which is the number
of years (or part thereof, but not less than one year)
of Years of Service with the Employer,
and (ii) the denominator of which is 10.

 

		E.	Adjustment of Defined Benefit Dollar Limitation
for Benefit Commencement Before Age 62 or after Age 65: The Defined Benefit Dollar Limitation shall be adjusted if the
Annuity Starting Date of the Member’s
benefit is before age 62 or
after age 65. If the Annuity
Starting Date is before age 62, the Defined Benefit Dollar Limitation
shall be adjusted under Section III. If the Annuity Starting Date is after age 65,
the Defined Benefit Dollar Limitation
shall be adjusted under Section IV.

 

		F.	High Three-Year
Average Compensation: The average Compensation for the three consecutive years
of Years of Service (or, if the Member
has less than three consecutive years
of Years of Service, the Member’s longest consecutive period
of Years of Service, including fractions of
years, but not less than one year)
with the Employer
that produces the highest average. Any
rehired Member’s High Three-Year
Average Compensation will be the amount determined under this Section II.F.
or, if greater, the amount determined under Treas. Reg. Section

1.415(d)-1(a)(2)(iii).

 

Compensation for purposes
of this Annex A means regular compensation for services during the Employee’s
regular working hours, or compensation for services outside the Employee’s
regular working hours (such as overtime or shift differential), commissions, bonuses
or other similar payments, must
be counted as
annual Compensation if such payment
is made within two and one-half (2 1/2) months after
severance from employment with the Employer
and the payment
would have been paid to the Employee if the employment
had continued.

 

Back pay,
within the meaning of Treasury Regulations
Section 1.415(c)-2(g)(8), shall be treated
as annual Compensation for the Limitation Year to which the back pay relates
to the extent that back pay represents
wages and compensation that would otherwise
be included under this definition.

 

		G.	Annual Adjustment of Limitations:
The Defined Benefit Compensation Limitation and the Defined Benefit Dollar Limitation
shall be adjusted annually permitting an increase in a Member’s periodic payments
effective for payments
due on or after January 1 of the
Limitation Year for which the increase in the
Limitation Year is effective. The adjusted limitation shall be equal to the greater of the amount that would be permitted
without regard to the adjustment multiplied by a fraction,
the numerator of which is the Defined Benefit Dollar Limitation or
Defined Benefit Compensation Limitation, whichever is less, taking into account
the adjustment and the denominator of which is the limitation in effect for the
immediately preceding Limitation Year.

 

		(1)	The Defined Benefit Dollar Limitation shall
be adjusted for each Limitation Year by multiplying
the limitation applicable for the immediately preceding
Limitation Year by an annual adjustment
factor,

    	 

    	 

    

with any
result that is not a multiple of $5,000 rounded down to
the next lowest multiple of $5,000. For purposes of this Section G.(1), the “annual
adjustment factor” is a fraction, the numerator of which is the value of the
“applicable index” for the calendar quarter ending September 30
of the calendar year
preceding the calendar year
for which the adjustment is being made and the denominator of which is the
value of such index for the calendar quarter beginning July
1, 2001; provided that if the fraction determined under this sentence is less than one (1), then such fraction shall be deemed
to be equal to (1).

 

		(2)	The Defined Benefit Compensation Limitation
shall be adjusted for each Limitation Year after the Member’s termination of
employment by
multiplying the
limitation applicable for the immediately preceding Limitation Year by
an annual adjustment factor. For purposes of this
Section G. (2), the “annual adjustment factor” is a fraction, the
numerator of which is the value of the “applicable index” for the calendar
quarter ending September 30 of the calendar year preceding the calendar year
for which the adjustment is being made and the denominator of which is the
value of such index for the September 30 of the calendar year
prior to the calendar year
used in the numerator; provided that if the fraction determined under this sentence is less than one (1), then such fraction shall
be deemed to be equal to one (1) and the adjustment factor for future calendar years
will be determined in accordance with guidance prescribed by the
Commissioner of the
Internal Revenue Service
and published in
the Internal Revenue Bulletin.

 

		(3)	For purposes of this Section
G., the “applicable index” is determined consistent with the procedures
to adjust benefit amounts under Section

215(i)(2)(A) of the
Social Security Act.

 

		H.	If the Member is, or has
ever been, a participant in another qualified defined benefit plan (without regard
to whether the plan has been terminated) maintained by the
Employer or
a predecessor employer,
the sum of the Member’s annual benefits
from all such plans may not exceed the maximum permissible benefit.

 

III.ADJUSTMENTOFDEFINEDBENEFITDOLLARLIMITATIONFOR
BENEFIT COMMENCEMENT BEFORE AGE 62

 

A.       Limitation
Years Beginning Before July 1, 2007.
The applicable provisions of

Section 6.1 shall apply.

 

B.       Limitation
Years Beginning On or After July 1, 2007.

 

		(1)	Plan Does Not Have Immediately Commencing
Straight Life Annuity Payable
at Both Age 62 and the Age of Benefit Commencement. If
the Annuity Starting Date for the Member’s benefit is prior to age
62 and occurs in a Limitation Year beginning
on or after July 1, 2007, and the

    	 

    	 

    

Plan does not have
an immediately commencing straight life
annuity payable
at both age 62 and the age
of benefit commencement, the Defined Benefit Dollar Limitation for the Member’s
Annuity Starting Date is the annual amount
of a benefit payable in the form of a
straight life annuity commencing at the Member’s Annuity Starting Date that is
the actuarial equivalent of the
Defined Benefit Dollar Limitation (adjusted
under Section II.D. for years of
participation less than
10, if required),
computed using a five-percent
interest rate assumption and the Applicable Mortality
Table for the Annuity Starting Date (and
expressing the Member’s age based
on completed calendar months as of the Annuity Starting Date).

 

		(2)	Plan Has Immediate Commencing
Straight Life Annuity Payable
at Both Age 62 and the Age of Benefit Commencement. If the Annuity Starting
Date for the Member’s benefit is prior to age 62 and occurs in a Limitation Year
beginning on or after July 1, 2007, and the Plan has an immediately commencing straight life annuity payable
at both age 62 and the age of
benefit commencement, the Defined Benefit Dollar Limitation
for the Member’s Annuity Starting Date is the lesser of the limitation determined
under the above paragraph and the Defined Benefit Dollar Limitation (adjusted under Section II.D. for years
of participation less than 10, if required) multiplied by the ratio of the annual
amount of the immediately commencing straight life annuity under the Plan at the Member’s
Annuity Starting Date to the annual amount of the immediately commencing
straight life annuity under the Plan at age 62, both determined
without applying the limitations of Article VI, as modified by this Annex A.

 

IV.ADJUSTMENTOFDEFINEDBENEFITDOLLARLIMITATIONFOR
BENEFIT COMMENCEMENT AFTER AGE 65

 

		A.	Limitation Years Beginning Before July 1, 2007.
The provisions of Section 6.1 shall apply.

 

B.       Limitation
Years Beginning On or After July 1, 2007.

 

		(1)	Plan Does Not Have Immediately Commencing
Straight Life Annuity PayableatAge65andtheAgeofBenefitCommencement.
If the Annuity Starting Date for the
Member’s benefit is after age 65
and occurs in a Limitation Year beginning on or after July
1, 2007, and the Plan does not have an immediately
commencing straight life annuity
payable at both
age

65 and the age of
benefit commencement, the Defined Benefit Dollar Limitation at the
Member’s Annuity Starting
Date is the
annual amount of
a benefit payable in the form of
a straight life annuity commencing at
the Member’s Annuity Starting Date that is the actuarial equivalent of
the Defined Benefit Dollar Limitation (adjusted under Section II.D.
for years of participation less
than 10, if required), computed using a five-percent interest rate
assumption and the Applicable Mortality Table for that

    	 

    	 

    

Annuity Starting
Date (and expressing the Member’s age based on completed calendar months as of
the Annuity Starting Date).

 

(2) Plan Has Immediately
Commencing Straight Life Annuity Payable
at Age

65 and the Age of
Benefit Commencement. If the Annuity
Starting Date for the Member’s benefit is after
age 65 and occurs in a Limitation Year
beginning on or after July 1, 2007, and
the Plan has an immediately commencing straight life annuity payable
at both age 65 and the age of
benefit commencement, the Defined Benefit Dollar Limitation at the Member’s
Annuity Starting Date is the lesser of the limitation determined in the paragraph immediately
above and the Defined Benefit Dollar Limitation (adjusted under Section II.D. for
years of participation less than

10, if required) multiplied
by the ratio of
the annual amount of the
adjusted immediately commencing straight life annuity
under the Plan at the Member’s Annuity Starting Date to the annual amount of
the adjusted immediately commencing straight life annuity under
the Plan at age 65, both determined without
applying the limitations of this paragraph. For this purpose, the adjusted
immediately commencing straight life annuity under the Plan at the Member’s
Annuity Starting Date is the annual amount of such annuity payable
to the Member, computed disregarding the Member’s accruals after age 65 but
including actuarial adjustments even if those actuarial adjustments are
used to offset accruals; and the adjusted
immediately commencing straight life annuity
under the Plan at age 65 is the annual
amount of such annuity that would be payable
under the Plan to a hypothetical Member who is age 65 and has the same accrued benefit
as the Member.

 

V.       LIMITATIONS
ON BENEFITS

 

The determination of actuarial equivalent of
forms of benefit other than a straight life annuity shall be made in accordance with paragraph A or B below.

 

		A.	Benefit Forms Not Subject
to Section 417(e)(3) of the Code: The straight
life annuity that is actuarially equivalent
to the Member’s form of benefit shall be determined under this paragraph A if
the form of the Member’s benefit is either (A)
a nondecreasing annuity (other than a
straight life annuity) payable for a period of not less than the life of
the Member (or, in the case of a Qualified Preretirement Survivor Annuity, the life of
the surviving spouse), or (B) an
annuity that decreases during the life of
the Member merely because of (i) the
death of the survivor annuitant (but only if the reduction is not below 50%
of the benefit payable before the death of the survivor annuitant), or (ii) the cessation or reduction of
Social Security supplements or qualified
disability payments (as defined in Section 401(a)(11) of the Code).

 

For
Limitation Years beginning on or after July 1, 2007,
the actuarially equivalent
straight life annuity is equal to the greater of (i) the annual amount of the straight
life annuity (if any)
payable to the Member under the Plan commencing
at the

    	 

    	 

    

same Annuity
Starting Date as the Member’s form
of benefit; and (ii) the annual amount of the straight life annuity commencing
at the same Annuity Starting Date that
has the same actuarial present value as the Member’s form of benefit, computed
using a five-percent interest rate assumption
and the applicable mortality table (or other tabular factor) defined in Section 1.2
for that Annuity Starting Date.

 

		B.	For purposes of adjustments under Section V.,
no actuarial adjustment to the benefit shall be made for:

 

		(1)	survivor benefits payable
to a surviving Spouse
under a qualified joint
and survivor annuity to the extent such benefits would not be payable
if the Member’s benefit were paid in another form;

 

		(2)	ancillary benefits that
are not directly related to retirement benefits (such as a qualified disability benefit,
pre-retirement incidental death benefits,
and post-retirement medical benefits); or

 

		(3)	the inclusion in the form of benefit of an automatic benefit increase feature,
provided the form of benefit is not subject to Code
Section 417(e)(3) and would otherwise satisfy the limitations of this Annex A, and the Plan provides that the amount payable
under the form of benefit in any Limitation Year shall
not exceed the limits of this
Annex A applicable at the Annuity Starting Date, as increased in subsequent years
pursuant to Code Section 415(d). For this purpose, an
automatic benefit increase feature is included in a form of benefit if the form of benefit provides for automatic, periodic increases
to the benefits paid in that form.

    	 

    	 

    

ANNEX B

 

FUNDING-BASED
LIMITS ON BENEFITS AND BENEFIT ACCRUALS

 

I. PREAMBLE

 

This Annex B to the Plan
is adopted to reflect certain provisions of the Pension Protection Act of

2006
(“PPA”) and the
Worker, Retiree and Employer
Recovery Act of 2008. This
Annex B shall be effective as stated herein
and shall supersede the provisions of the Plan
to the extent those
provisions are inconsistent with the provisions of this Annex B. Notwithstanding anything
in this Annex B to the contrary, the provision
of Code Section 436 and the regulations thereunder are incorporated herein by
reference. Also, notwithstanding any
language set forth in this Annex B of the
Plan, effective as of December 31, 2006,
the Plan was amended
to freeze all future benefit accruals.

 

II. EFFECTIVE DATE AND
APPLICATION OF ANNEX B

 

The provisions of this
Annex B apply to Plan
Years beginning after December 31, 2007. For purposes of this Annex
B, the term Plan shall include any
predecessor plan. If the Plan has
a valuation date other than the first day of
the Plan Year, the provisions of Code
Section 436 and this Annex B will applied in accordance with the regulations thereunder.

 

		III.	FUNDING-BASED
LIMITATION ON SHUTDOWN BENEFITS AND OTHER UNPREDICTABLE CONTINGENT EVENT BENEFITS

 

		A.	In General: If
a Member is entitled to an “unpredictable contingent event benefit” payable
with respect to any event occurring during
any Plan Year, then such benefit may
not be provided if the “adjusted funding target attainment percentage” for such Plan Year:

 

(1)       is
less than sixty percent (60%) or,

 

		(2)	would be less than sixty
percent (60%) percent taking into account
such occurrence.

 

		B.	Exemption: Paragraph A. shall cease to apply with respect to
any Plan
Year, effective as of the first day of
the Plan Year, upon payment
by the Employer
of a contribution (in addition to any minimum required contribution under Code Section
430) equal to:

 

		(1)	in the
case of A.(1)
above, the amount
of the increase
in the funding
target of the Plan (under Code Section 430) for the
Plan Year attributable to the occurrence
referred to in paragraph A, and

 

		(2)	in the case of
A.(2) above, the amount sufficient to result in an “adjusted funding target attainment percentage” of sixty percent
(60%).

    	 

    	 

    

		C.	Unpredictable Contingent Event Benefit: For purposes of this Section,
the term “unpredictable contingent event benefit” means any benefit payable
solely by reason of:

 

(1)       a plant
shutdown (or similar event, as determined by the Secretary of the

Treasury),
or

 

		(2)	an event other than the attainment of any
age, performance of any
service, receipt or derivation of any compensation,
or occurrence of death or disability.

 

		IV.	LIMITATIONS ON PLAN
AMENDMENTS INCREASING LIABILITY FOR BENEFITS

 

The Employer
reserves the right to modify,
amend or terminate the Plan as provided in Article

VIII; provided, however, the following shall apply:

 

		A.	In General: No
amendment which has the effect of increasing
liabilities of the Plan by reason
of increases in benefits, establishment of new benefits, changing the rate of benefit accrual, or changing the
rate at which benefits become nonforfeitable may take effect during any
Plan Year if
the “adjusted funding target attainment percentage” for such Plan Year
is:

 

(1)       less
than eighty percent (80%), or

 

		(2)	would be less than eighty percent
(80%) taking into account such amendment.

 

		B.	Exemption: Paragraph A. above shall cease to apply with respect to
any Plan Year, effective as of the first day of the Plan Year
(or if later, the effective date of the amendment), upon payment
by the Employer
of a contribution (in addition to any minimum required contribution under Code Section 430) equal to:

 

		(1)	in the case of paragraph A.(1)
above, the amount of the increase in the funding target of the Plan (under Code Section
430) for the Plan Year attributable to the amendment, and

 

(2)       in
the case of paragraph A.(2) above, the
amount sufficient to result in an

“adjusted funding target attainment
percentage” of eighty percent (80%).

 

		C.	Exception for Certain Benefit Increases:
Paragraph A. shall not apply to any amendment which provides for an increase in benefits under a formula which is not based on
a Member’s compensation, but only if the rate of such increase is not in excess of the contemporaneous rate
of increase in average wages of Members covered by
the amendment.

    	 

    	 

    

V.       LIMITATIONS
ON ACCELERATED BENEFIT DISTRIBUTIONS

 

The following shall apply
to the payment of benefits under the Plan
except to the
extent the Plan is exempt from the requirements of this Section V by reason of Code Section 436(d)(4):

 

		A.	Funding Percentage Less Than Sixty
Percent (60%): If
the Plan’s “adjusted funding target attainment percentage” for a Plan Year
is less than sixty percent (60%), then the Plan may
not pay any “prohibited
payment” after the valuation date for the Plan Year.

 

		B.	Bankruptcy: During any
period in which the Employer
is a debtor in a case under Title 11, United States Code, or similar Federal or State law, the Plan
may not pay
any “prohibited payment.”
The preceding sentence shall not apply on or
after the date on which the enrolled actuary
of the Plan certifies that the “adjusted funding target attainment percentage”
of the Plan is not less than one hundred
percent (100%).

 

C.       Limited
Payment if Percentage at Least Sixty Percent (60%) but Less Than Eighty

Percent (80%):

 

		(1)	In General: If
the Plan’s “adjusted funding target attainment percentage” for a
Plan Year is sixty percent (60%) or greater but less than eighty
percent (80%), then the Plan may not pay
any “prohibited
payment” after the valuation date for the Plan Year to the
extent the amount of the payment exceeds the lesser of:

 

		(i)	fifty (50)
percent of the amount of the payment
which could be made without regard to this Section, or

 

		(ii)	the present value (determined under guidance prescribed by
the Pension Benefit Guaranty Corporation,
using the interest and mortalityassumptions
under Code Section 417(e)) of the maximum guarantee with respect to the Member under
ERISA Section 4022.

 

(2)       One-Time
Application:

 

		(i)	In General: Only
one “prohibited payment”
meeting the requirements of subparagraph
C.(1) may be made with respect to any
Member during any
period of consecutive Plan Years to
which the limitations under either paragraph
A. or B. or this paragraph applies.

 

		(ii)	Treatment of Beneficiaries: For
purposes of this subparagraph, a Member and any
Beneficiary (including an alternate payee,
as defined in Code Section
414(p)(8)) shall be treated
as one Member.
If the Accrued Benefit of a Member is allocated to such an
alternate payee
and one or more other persons, the amount under

    	 

    	 

    

subparagraph C.(1)
shall be allocated among such persons in the same manner as the Accrued Benefit is
allocated unless the qualified domestic relations order (as defined in Code Section

414(p)(1)(A)) provides
otherwise.

 

		D.	Exception: This Section shall not apply for
any Plan Year
if the terms of the Plan (as in effect
for the period
beginning on September
1, 2005, and
ending with such Plan Year) provide for
no benefit accruals with respect to any
Member during such period.

 

E.       “Prohibited
Payment”: For
purposes of this
Section, the term
“prohibited payment”

means:

 

		(A)	any payment,
in excess of the monthly amount paid under
a single life annuity (plus any
Social Security supplements
described in the last sentence of Code
Section 411(a)(9)), to a Member or Beneficiary whose Annuity Starting
Date occurs during any
period a limitation under paragraph A. or B. is in effect,

 

		(B)	any payment
for the purchase of an irrevocable commitment from an
insurer to pay benefits, and

 

		(C)	any other payment
specified by the Secretary of the Treasury
in regulations under Code Section 436(d)(5)(C).

 

Such term shall not include the payment
of a benefit which under Code Section

411(a)(11) may be immediately distributed without
the consent of the Member.

 

VI.LIMITATIONONBENEFITACCRUALSFORPLANSWITHSEVERE
FUNDING SHORTFALLS

 

Notwithstanding any other provision of
the Plan, effective as of December 31, 2006, the

Plan was amended to freeze all future benefit
accruals.

 

		A.	In General: If
the Plan’s “adjusted funding target attainment percentage” for a Plan Year
is less than sixty percent (60%), benefit accruals under the Plan shall
cease as of the valuation date for the Plan Year.

 

		B.	Exemption: Paragraph (1) shall cease
to apply with respect to any
Plan Year, effective as of the first day
of the Plan Year, upon payment
by the Employer
of a contribution (in addition to any minimum required contribution under Code Section
430) equal to the amount sufficient to result in an “adjusted funding target attainment percentage” of sixty percent
(60%).

    	 

    	 

    

		VII.	RULES RELATING TO CONTRIBUTIONS REQUIRED TO
AVOID BENEFIT LIMITATIONS

 

A.       Provision
of Security:

 

		(1)	In General: For
purposes of this Annex B, the “adjusted
funding target attainment percentage” shall
be determined by treating as an asset of the Plan
any security
provided by the Employer
in a form meeting the requirements of subparagraph
(2).

 

		(2)	Form of Security:
The security required under subparagraph
(1) shall consist of:

 

		(i)	a bond issued by a corporate surety
company that is an acceptable surety for
purposes of ERISA Section 412,

 

		(ii)	cash, or United States obligations which mature in three (3) years
or less, held in escrow by a bank or similar financial institution, or

 

		(iii)	such other form of security
as is satisfactory to the Secretary and
the parties involved.

 

		(3)	Enforcement: Any security
provided under subparagraph (1) may be perfected and enforced at any time after the
earlier of:

 

(i)       the
date on which the Plan terminates,

 

		(ii)	if there is a failure to make a payment
of the minimum required contribution for any
Plan Year beginning after the security is provided,
the due date for the payment under Code
Section 430(j), or

 

		(iii)	if the “adjusted funding target attainment percentage” is less
than sixty percent (60%) for a consecutive
period of 7 years,
the valuation date for the last year in
the period.

 

		(4)	Release of Security:
The security shall be released (and any
amounts thereunder shall be refunded
together with any
interest accrued thereon) at
such time as the Secretary may prescribe
in Regulations, including Regulations for partial releases of the security by
reason of increases in the “adjusted funding target attainment percentage.”

 

		B.	Prefunding Balance or Funding standard Carryover
Balance May Not be Used: No prefunding balance
or funding standard
carryover
balance under Code
Section

430(f) may
be used under Sections III., IV.
or VI to satisfy
any payment
an Employer
may make under any
such Section to avoid or terminate the application of any limitation under such Section.

    	 

    	 

    

C.       Deemed
Reduction of Funding Balances:

 

	 	(1)	
        In
        General: Subject to subparagraph (3), in any
        case in which a benefit limitation under Section III.,
        IV., V., or VI
        would (but for this subparagraph and determined without regard to subsection III.B., IV.B., or VI.B.)
        apply to such Plan for the Plan Year, the Employer
        shall be treated for purposes of this title as having made an
        election under Code Section

        430(f) to reduce the
        prefunding balance or funding standard carryover
        balance by such amount as is necessary
        for such benefit limitation to not apply to the Plan for such Plan Year.

	
         

        (2)
	
         

        Exception for Insufficient
        Funding Balances: Subparagraph (1) shall not apply with respect to a benefit limitation
        for any Plan Year if the
        application of subparagraph (1) would not result in the benefit limitation not
        applying for such Plan Year.

	
         

        VIII.
	
         

        PRESUME
	
         

        D UNDERFUNDING FOR PURPOSES OF BENEFIT LIMITATIONS

 

		A.	Presumption of Continued Underfunding:
In any case
in which a benefit limitation under Section III., IV., V., or VI has been applied to a Plan with respect to the Plan Year
preceding the current Plan Year, the “adjusted funding target attainment percentage” of
the Plan for the current Plan Year shall be presumed to
be equal to the “adjusted
funding target attainment
percentage” of the
Plan for the
preceding Plan Year until the enrolled actuary of the Plan certifies the
actual “adjusted funding target attainment percentage” of the Plan for
the current Plan Year.

 

		B.	Presumption of Underfunding after Tenth Month:
In any
case in which no certification
of the “adjusted
funding target attainment
percentage” for the
current Plan Year is made with respect to the
Plan before the first day of the 10th month
of such year, for purposes of Section
III., IV., V., or VI,
such first day shall be deemed, for purposes
of such Section, to be the valuation date of the Plan for the current Plan Year and
the Plan’s “adjusted funding target attainment percentage” shall be conclusively
presumed to be
less than sixty
percent (60%) as of such
first day.

 

		C.	Presumption of Underfunding after Fourth Month for Nearly
Underfunded Plans: In any case in which:

 

		(1)	a benefit limitation under Section III.,
IV., V., or
VI did not apply to a Plan with
respect to the
Plan Year preceding
the current Plan
Year, but the
“adjusted funding target attainment percentage” of the Plan for
such preceding Plan Year was not more than ten (10) percentage points greater than
the percentage which would have caused such Section to apply to the
Plan with respect to such preceding Plan Year, and

 

		(2)	as of the first day of the
4th month of the current Plan Year, the enrolled actuary of
the Plan has not certified the actual “adjusted funding target

    	 

    	 

    

attainment percentage”
of the Plan for the current Plan Year, until the enrolled actuary
so certifies, such first day shall be deemed, for purposes of such Section, to be
the valuation date of the Plan for the
current Plan Year and the “adjusted
funding target attainment percentage” of the Plan as of such first day
shall, for purposes of such Section, be
presumed to be equal to ten
(10) percentage points less than the “adjusted
funding target attainment percentage” of the Plan for such preceding Plan Year.

 

		IX.	TREATMENT OF PLAN
AS OF CLOSE OF PROHIBITED OR CESSATION
PERIOD

 

		A.	Operation of Plan after Period: Unless the Plan otherwise
provides, payments
and accruals will resume effective as of the day
following the close of
the period for which any
limitation of payment
or accrual of benefits under Section V.
or VI. applies.

 

		B.	Treatment of Affected Benefits: Nothing in this Section shall be
construed as affecting the Plan’s treatment of benefits which would have been paid or
accrued but for this Annex B.

 

X.       DEFINITIONS
AND MISCELLANEOUS

 

		A.	“Funding Target Attainment
Percentage” has the same meaning
given such term by Code
Section 430(d)(2), except as otherwise provided herein. However, in the
case of Plan Years beginning in 2008, the “funding target attainment
percentage” for the preceding Plan Year may be determined using such methods
of estimation as the Secretary of the Treasury may
provide from time to time.

 

		B.	“Adjusted Funding
Target Attainment Percentage” means the “funding target attainment percentage”
which is determined under paragraph A. by increasing each
of the amounts under subparagraphs (A)
and (B) of Code Section 430(d)(2) by the aggregate amount of purchases of annuities
for employees
other than highly compensated employees
(as defined in Code Section 414(q)) which were made by
the Plan during the preceding two (2) Plan Years.

 

C.       Application
to Plans Which are Fully Funded Without
Regard to Reductions for

Funding Balances:

 

		(1)	In General: In
the case of a Plan for any
Plan Year, if the “funding target attainmentpercentage” is one hundred
percent (100%) or more (determined and without regard
to the reduction in the value of assets under Code Section 430(0(4)), the “funding
target attainment percentage” for
purposes of paragraphs A. and B. shall be determined without regard to such reduction.

 

		(2)	Transition Rule: Subparagraph (1) shall be
applied to Plan Years beginning after 2007 and before 2011 by
substituting for “one hundred

    	 

    	 

    

percent
(100%)” the applicable percentage determined in accordance with the following table:

 

 

	
        In the case of a Plan Year beginning
in calendar year:
	
        The applicable percentage is

	2008	92%
	2009	94%
	2010	96%

 

 

		(3)	Subparagraph (2) shall not apply
with respect to any Plan
Year beginning after 2008 if the Plan was subject to the Deficit Reduction Contribution for the Plan Year beginning in 2007.

 

 

    

    

    

FIRST AMENDMENT TO THE

SOUTHWEST GEORGIA FINANCIAL CORPORATION 

PENSION RETIREMENT PLAN

 

WHEREAS, Southwest
Georgia Financial Corporation (the “Company”) sponsors the Southwest Georgia Financial Corporation Pension
Retirement Plan, as amended and restated effective January 1, 2015 (the “Plan”), to provide retirement benefits
to eligible employees of the Company and their beneficiaries; and

 

WHEREAS, the Company
has reserved the authority to amend the Plan pursuant to Section 8.1 thereof; and

 

WHEREAS, the Company
now desires to amend the Plan to provide that (i) vested Members who have attained age 62 but remain employed may elect to receive
their benefits under the Plan in the form of an immediate lump sum or any other permitted form of distribution and (ii) Retired
Members and Terminated Members not in pay status may elect to receive their benefits in the form of an immediate lump sum distribution;
and

 

WHEREAS, the Company
has approved this First Amendment to the Plan (the “First Amendment”).

 

NOW, THEREFORE,
the Company hereby amends the Plan as follows, to be effective as of December 1, 2016:

 

1.

 

The Plan is hereby amended by deleting Section
3.6(c) in its entirety and inserting in lieu thereof the following new Section 3.6(c):

 

“(c)Election
of Optional Forms of Payment. A Member entitled to benefits payable in the form of equal monthly installments for such Member’s
life or a married Member’s electing (with the written consent of such Member’s Eligible Spouse) not to receive a Qualified
Joint and Survivor Annuity, may elect to have his retirement benefit payable under one of the Optional Forms of Payment, set forth
below, which is the Actuarial Equivalent of his Normal Retirement Benefit pursuant to Section 3.2 hereof:

(i)       An
annuity for the Member’s life alone;

(ii)       An
annuity for the Member’s life, with payments guaranteed for 5 or 10 years;

(iii)       An
annuity for the Member’s life, with a survivor annuity for the Member’s Eligible Spouse which is 100% or 75% of the
annuity which is payable during the joint lives of the Member and his Eligible Spouse. Notwithstanding the foregoing, the written
consent of such Member’s Eligible Spouse is not required to the election by a Member of the optional form of payment under
this Section 3.6(c)(iii) for distributions with Annuity Starting Dates beginning on or after January 1, 2008; or

(iv)       A
single lump sum distribution to the Member.”

2.

 

The Plan is hereby amended
by deleting Sections 4.1 and 4.2 in their entirety and inserting in lieu thereof the following new Sections 4.1 and 4.2:

 

“4.1Incidental
Death Benefits for Eligible Spouse.

(a)       If
a Member dies while actively employed and prior to becoming a Retired Member or Terminated Member and prior to the commencement
of benefits pursuant to Article III or V, Death Benefits shall be payable to the deceased Member’s Eligible Spouse, if any.
The surviving Eligible Spouse may elect among the following:

(i)                
A monthly retirement benefit, commencing on what would have been the Member’s Normal Retirement Date (or his Late
Retirement Date if the Member works beyond his Normal Retirement Date), equal to the amount which would have been payable to the
Spouse under the Qualified Joint and Survivor Annuity provided in Section 3.6(b) if the Member had terminated his employment on
the date of his death, had then lived until his Normal Retirement Date (or his Late Retirement Date if the Member works beyond
his Normal Retirement Date) and begun to receive Monthly Retirement Income in the form of a Qualified Joint and Survivor Annuity
on that date, and had died on the day after the commencement of benefits;

(ii)              
A monthly retirement benefit, commencing on the first day of any month on or after the Member’s death and before what
would have been the Member’s Normal Retirement Date, equal to the amount which would have been payable to the Eligible Spouse
under the Qualified Joint and Survivor Annuity provided in Section 3.6(b) if the Member had terminated his employment on the date
of his death, had then lived until the date on which benefits actually commence under this item (ii) and had begun to receive Monthly
Retirement Income in the form of a Qualified Joint and Survivor Annuity on that date, and had died on the day after the commencement
of benefits; or

(iii)            
A single lump sum distribution, to be made as soon as administratively practicable after the surviving Eligible Spouse elects
to receive the lump sum distribution provided benefit payments have not begun and the Annuity Starting Date has not been reached,
equal to the Actuarial Equivalent of the amount defined in item (i) or (ii) above, as applicable.

In the absence of
an affirmative written election by the Spouse, Death Benefits shall be payable to the surviving Eligible Spouse in accordance with
item (i), above, if the Member dies on or after his Normal Retirement Date. Otherwise, Death Benefits shall be payable in accordance
with item (ii) above, with the payment of benefits commencing on the first day of the month coincident with or immediately following
the Member’s 55th birthday if he dies before age 55 or commencing on the first day of the month following the
date of the Member’s death if he was at least age 55 at the time of his death.

All such monthly benefits
shall be computed to the nearest dollar, with fifty cents ($.50) being regarded as the next higher dollar. The monthly retirement
benefit (if not payable as a single lump sum) shall continue for the life of the Spouse alone. The death of the Spouse, whether
before or after the commencement of monthly benefits or the lump sum distribution, shall terminate the right to any Death Benefits
for any month or time after the Spouse’s death.

(b)       Notwithstanding
any other provision of this Section 4.1 to the contrary, if the Actuarial Equivalent present value of the Member’s Death
Benefits is less than $5,000, and if benefit payments have not begun and the Member’s Annuity Starting Date has not been
reached, the Plan Administrator, shall distribute such Death Benefits in a lump sum to the surviving Eligible Spouse of the deceased
Member. For these purposes, the present value of the Member’s Death Benefits shall be calculated in accordance with Section
5.5 hereof.

4.2       Death
Benefits in Absence of Surviving Eligible Spouse.

(a)       If
a deceased Member is not survived by an Eligible Spouse, no Death Benefits shall be payable under this Plan with respect to a deceased
Member who is not a Retired Member or Terminated Member at the time of his death and who is not eligible for retirement under Sections
3.2, 3.3, or 3.4 at the time of his death. If a deceased Member who is not survived by an Eligible Spouse and who is not a Retired
Member or Terminated Member, would have been eligible for normal, late or early retirement under Sections 3.2, 3.3, or 3.4, respectively,
at the time of his death, his Beneficiary may elect between the following:

(i)                
a monthly amount for 60 months equal to the monthly retirement benefit which the Member would have received if he had retired
as of the date of his death and had begun to receive Monthly Retirement Income in the form of a 5-year certain annuity for the
life of the Member, commencing on the first day of the month following the month in which his death occurs; or

(ii)              
a single lump sum distribution, to be made as of the first day of the month following the month in which the Member’s
death occurs, equal to the Actuarial Equivalent of the benefit in (i) above.

(b)       Notwithstanding
any other provision of this Section 4.2 to the contrary, if the Actuarial Equivalent present value of the Member’s Death
Benefits is less than $5,000, and if benefit payments have not begun and the Member’s Annuity Starting Date has not been
reached, the Plan Administrator, shall distribute such Death Benefits in a lump sum to the Beneficiary of the deceased Member.
For these purposes, the present value of the Member’s Death Benefits shall be calculated in accordance with Section 5.5 hereof.

3.

 

The Plan is hereby amended
by deleting Sections 5.1 and 5.2 in their entirety and inserting in lieu thereof the following new Sections 5.1 and 5.2:

 

“5.1Vested
Interest. Whenever a Member, for reasons other than actual retirement under Sections 3.2, 3.3, 3.4, or 3.5 hereof or death
under Article IV, incurs a one year Break in Service, he shall cease to be an active Member and shall become a Terminated Member.
Subject to the limitations and restrictions of Article VI, each Terminated Member who is not thereafter credited with any additional
Year(s) of Service shall be entitled at his Normal Retirement Date to receive Monthly Retirement Income equal to the vested percentage
of his Accrued Benefit as of his date of termination.

The vested percentage
of any Terminated Member who is credited with at least one (1) Hour of Service on or after January 1, 1989, shall be determined
in accordance with the following schedule:

	Completed Years of Service	Vested Percentage
	Less than 5	0%
	5 or more	100%

The vested percentage
of any Terminated Member who is not credited with at least one (1) Hour of Service on or after January 1, 1989 shall be determined
pursuant to the terms of the Plan as it existed on the date of the Terminated Member’s termination of employment.

The nonvested portion
of the Terminated Member’s Accrued Benefit shall constitute a Forfeiture as of the last day of the Plan Year in which such
Terminated Member’s employment with the Employer terminates if the Member has no vested interest in his Accrued Benefit,
or upon the earlier to occur of a fifth consecutive Break in Service or a distribution of any portion his vested Accrued Benefit
if the Member does have a vested interest in his Accrued Benefit. Any such Forfeiture shall serve to reduce the Employer’s
contributions required under Article VII. In the event a distribution is made, the relevant Member shall be afforded the Buy-Back
option described in Section 5.4 of the Plan.

In lieu of Monthly
Retirement Income commencing at his Normal Retirement Date, a Terminated Member may elect in writing to receive Monthly Retirement
Income commencing on or after the first day of the month following the date the Member becomes a Terminated Member and before his
Normal Retirement Date, equal in amount to the Actuarial Equivalent of his Monthly Retirement Income otherwise commencing at his
Normal Retirement Date.

Notwithstanding
and in lieu of the foregoing, if a Terminated Member has completed at least 15 Years of Service as of the date of termination,
then he shall be entitled to elect in writing to receive Monthly Retirement Income, commencing on or after the first day of the
month on or after the Member’s 55th birthday and before his Normal Retirement Date, equal to the amount otherwise payable
at his Normal Retirement Date, reduced by 5/12ths of 1% for each month that the commencement of benefits precedes his Normal Retirement
Date.

Notwithstanding
the foregoing, a Terminated Member shall be entitled to elect in writing to have his retirement benefit paid in the form of a single
lump sum distribution, to be made as of the first day of the month following the month in which the Member becomes a Terminated
Member and elects to receive the lump sum distribution and before his Normal Retirement Date, provided benefit payments have not
begun and the Annuity Starting Date has not been reached, equal to the Actuarial Equivalent of the Monthly Retirement Income otherwise
commencing at the Terminated Member’s Normal Retirement Date or, if the Terminated Member has completed at least 15 Years
of Service as of the date of termination and elects to receive his lump sum on or after the first day of the month on or after
the Member’s 55th birthday and prior to his Normal Retirement Date, such amount, if greater, equal to the amount
payable at his Normal Retirement Date, reduced by five twelfths (5/12ths) of one percent (1%) for each month that the date of the
single lump sum distribution precedes his Normal Retirement Date.

Notwithstanding
anything herein to the contrary, for purposes of determining a Member’s vested interest in his Accrued Benefit under the
Plan, Years of Service shall include Years of Service credited after the Freeze Date in accordance with the provisions of the Plan.
A Member with no vested interest in his Accrued Benefit shall not become vested as a result of the freezing of the Plan.

5.2       Method
of Payment of Benefits to Member Separating from Service before Retirement Date. If the Member separates from service before
retirement or death, the settlement options available to the Member will depend upon the Member’s marital status as of the
date on which benefit payments commence or on which the Member dies.

(a)       If
the Member then has an Eligible Spouse, the vested portion of his benefit will be paid in the form of a Qualified 50% Joint and
Survivor Annuity as described in Section 3.6(b) unless the Member and his Eligible Spouse, pursuant to the spousal consent requirements
in Section 3.6(b)(2), elect to have the vested portion of his benefits paid in (i) the form of a 5-year certain and life annuity
or (ii) in a single lump sum distribution. Payments under such Qualified Joint and Survivor Annuity or 5-year certain and life
annuity shall in fact commence as of the Member’s Normal Retirement Date or, if the Member so elects in writing, on the first
day of any month following the Member becoming a Terminated Member and before his Normal Retirement Date. If the Member dies before
the commencement of benefits, a 50% survivor annuity equal to the amount which would be payable to the surviving Eligible Spouse
under a Qualified Joint and Survivor Annuity (as though the Member had lived and begun to receive a Qualified Joint and Survivor
Annuity and died on the commencement date) shall be payable to the surviving Eligible Spouse, unless the surviving Eligible Spouse
elects in writing to receive a single lump sum distribution equal to the Actuarial Equivalent of the 50% survivor annuity otherwise
payable commencing on that date. The commencement date of the 50% survivor annuity shall be the first day of the month following
the month which includes the date of the Member’s death unless a lump sum distribution is elected. Payment of the single
lump sum distribution shall be made as soon as administratively practicable after the Terminated Member's or surviving Eligible
Spouse’s, as applicable, election to receive a single lump sum distribution provided benefit payments have not begun and
the Annuity Starting Date has not been reached. The death of the surviving Eligible Spouse shall terminate the right to any payments
after the surviving Eligible Spouse’s death.

(b)       If
the Member does not have an Eligible Spouse, the Member shall receive the vested portion of his Accrued Benefit in the form of
(i) a 5-year certain and life annuity, commencing on the Member’s Normal Retirement Date or (ii) a single lump sum distribution.
Payments of the 5-year certain and life annuity shall in fact commence as of the Member's Normal Retirement Date or, if the Member
so elects in writing, on the first day of any month following the Member becoming a Terminated Member and before his Normal Retirement
Date. Payment of the single lump sum distribution shall be made as soon as administratively practicable after the Terminated Member's
election to receive a single lump sum distribution provided benefit payments have not begun and the Annuity Starting Date has not
been reached. The Terminated Member’s death prior to the commencement of benefits shall terminate any right to benefits under
this Plan with respect to that Terminated Member.

4.

The Plan is hereby amended
by adding the following new Section 3.8 to the end of Article III of the Plan:

 

“3.8In-Service
Retirement Income.

(a)       Subject
to the maximum overall benefit limitations of Article VI, a Member who remains employed after reaching age 62 may elect to commence
payment of his retirement income as provided in this Section 3.8.

(b)       The
election to commence payment of a Member’s retirement income must be made by the Member on forms provided by the Plan Administrator
for such purpose.

(c)       Payment
of the Member’s retirement income with respect to an election under this Section 3.8 shall be made in any of the settlement
options set forth in the Plan as if the Member terminated employment at such time, subject to applicable consent requirements.”

 

5.

 

All parts of the Plan not
inconsistent herewith are hereby ratified and affirmed.

    	 

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this First Amendment to be executed the 28 day of September, 2016, to be effective as of the 1st
day of December, 2016.

 

 

 SOUTHWEST GEORGIA FINANCIAL
CORPORATION

 

By: /s/DeWitt Drew 

 

Title: President and Chief
Executive Officer

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