Document:

Exhibit 10.17

 

 

WELLS
FARGO BANK MINNESOTA, N.A.

 

TRUSTEE
FOR THE

 

 

BRYAN,
PENDLETON, SWATS & MCALLISTER, LLC

DEFINED
CONTRIBUTION PROTOTYPE PLAN AND TRUST

 

 

NONSTANDARDIZED
401(k) PROFIT SHARING PLAN

 

 

ADOPTED
BY

 

 

MSC.SOFTWARE
CORPORATION 

 

 

AS
THE

 

 

MSC.SOFTWARE
CORPORATION

RETIREMENT PLAN

 

 

TABLE OF CONTENTS

NONSTANDARDIZED 401(k) PROFIT
SHARING PLAN

 

	
  ITEM

  	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  I — DEFINITIONS

  	
   

  	
   

  
	
  1

  	
   

  	
  PLAN

  	
   

  	
  1

  	
   

  
	
  2

  	
   

  	
  TRUSTEE

  	
   

  	
  1

  	
   

  
	
  3

  	
   

  	
  EMPLOYEE

  	
   

  	
  1

  	
   

  
	
  4

  	
   

  	
  COMPENSATION

  	
   

  	
  1

  	
   

  
	
  5

  	
   

  	
  PLAN
  YEAR/LIMITATION YEAR

  	
   

  	
  2

  	
   

  
	
  6

  	
   

  	
  EFFECTIVE DATE

  	
   

  	
  2

  	
   

  
	
  7

  	
   

  	
  HOUR OF
  SERVICE/ELAPSED TIME METHOD

  	
   

  	
  3

  	
   

  
	
  8

  	
   

  	
  PREDECESSOR
  EMPLOYER SERVICE

  	
   

  	
  3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  II — ELIGIBILITY REQUIREMENTS

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  ELIGIBILITY

  	
   

  	
  3

  	
   

  
	
  10

  	
   

  	
  YEAR OF SERVICE –
  ELIGIBILITY

  	
   

  	
  5

  	
   

  
	
  11

  	
   

  	
  PARTICIPATION –
  BREAK IN SERVICE

  	
   

  	
  5

  	
   

  
	
  12

  	
   

  	
  ELECTION NOT TO
  PARTICIPATE

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  III — EMPLOYER CONTRIBUTIONS, DEFERRAL CONTRIBUTIONS AND FORFEITURES

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  AMOUNT AND TYPE

  	
   

  	
  6

  	
   

  
	
  14

  	
   

  	
  DEFERRAL
  CONTRIBUTIONS

  	
   

  	
  7

  	
   

  
	
  15

  	
   

  	
  MATCHING
  CONTRIBUTIONS

  	
   

  	
  7

  	
   

  
	
  16

  	
   

  	
  CONTRIBUTION ALLOCATION

  	
   

  	
  9

  	
   

  
	
  17

  	
   

  	
  FORFEITURE ALLOCATION

  	
   

  	
  10

  	
   

  
	
  18

  	
   

  	
  ALLOCATION CONDITIONS

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV — PARTICIPANT CONTRIBUTIONS

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  EMPLOYEE (AFTER
  TAX) CONTRIBUTIONS

  	
   

  	
  11

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  V — VESTING REQUIREMENTS

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  NORMAL/EARLY
  RETIREMENT AGE

  	
   

  	
  11

  	
   

  
	
  21

  	
   

  	
  PARTICIPANT’S
  DEATH OR DISABILITY

  	
   

  	
  11

  	
   

  
	
  22

  	
   

  	
  VESTING SCHEDULE

  	
   

  	
  11

  	
   

  
	
  23

  	
   

  	
  YEAR OF SERVICE –
  VESTING

  	
   

  	
  13

  	
   

  
	
  24

  	
   

  	
  EXCLUDED YEARS
  OF SERVICE – VESTING

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VI — DISTRIBUTION OF ACCOUNT BALANCE

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  TIME OF PAYMENT
  OF ACCOUNT BALANCE

  	
   

  	
  13

  	
   

  
	
  26

  	
   

  	
  DISTRIBUTION
  METHOD

  	
   

  	
  15

  	
   

  
	
  27

  	
   

  	
  JOINT AND
  SURVIVOR ANNUITY REQUIREMENTS

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  IX — PLAN ADMINISTRATOR – DUTIES WITH RESPECT TO PARTICIPANTS’ ACCOUNTS

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  ALLOCATION OF
  NET INCOME, GAIN OR LOSS

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  X — TRUSTEE AND CUSTODIAN, POWERS AND DUTIES

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  INVESTMENT
  POWERS

  	
   

  	
  17

  	
   

  
	
  30

  	
   

  	
  VALUATION OF
  TRUST

  	
   

  	
  17

  	
   

  

 

 

Nonstandardized 401(k) Profit
Sharing Plan

 

ADOPTION
AGREEMENT #005

NONSTANDARDIZED 401(k) PROFIT SHARING PLAN

 

The undersigned, MSC.Software
Corporation (“Employer”), by
executing this Adoption Agreement, elects to
establish a retirement plan and trust (“Plan”) under the Bryan, Pendleton,
Swats & McAllister, LLC Defined Contribution Prototype Plan (basic
plan document # 01).  The Employer,
subject to the Employer’s Adoption Agreement elections, adopts fully the
Prototype Plan and Trust provisions. 
This Adoption Agreement, the basic plan document and any attached
appendices or addenda, constitute the Employer’s entire plan and trust
document.  All section
references within this Adoption Agreement are Adoption Agreement section
references unless the Adoption Agreement or the context indicate
otherwise.  All article references are
basic plan document and Adoption Agreement references as applicable.  Numbers in parenthesis which follow headings
are references to basic plan document sections. 
The Employer makes the following elections granted under the
corresponding provisions of the basic plan document.

 

ARTICLE I

DEFINITIONS

 

	
  1.

  	
   

  	
  PLAN (1.21). The name of the Plan as adopted by the
  Employer is MSC.Software Corporation Retirement Plan

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  TRUSTEE (1.33). The
  Trustee executing this Adoption Agreement is (Choose
  one of (a), (b) or (c)):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (a)

  	
  A discretionary Trustee. See Plan Section 10.03[A].

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (b)

  	
  A nondiscretionary Trustee. See Plan Section 10.03[B].

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (c)

  	
  A Trustee under a separate
  trust agreement. See
  Plan Section 10.03[G].

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  EMPLOYEE (1.11). The
  following Employees are not eligible to participate in the Plan (Choose (a) or one or more of (b) through (g) as applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (a)

  	
  No exclusions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (b)

  	
  Collective bargaining
  Employees.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (c)

  	
  Nonresident
  aliens.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (d)

  	
  Leased Employees.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (e)

  	
  Reclassified Employees.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (f)

  	
  Classifications:   Employees
  classified as “temporary” employees; interns; co-op students; international
  employees working in the United States on an “exchange” or “project” basis;
  employees of the Employer who are not citizens of the United States of
  America; employees of non-participating employers of the controlled group.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (g)

  	
  Exclusions by types of
  contributions. The
  following classification(s) of Employees are not eligible for the specified
  contributions:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Employee classification:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Contribution type:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  COMPENSATION (1.07). The
  Employer makes the following election(s) regarding the definition of
  Compensation for purposes of the contribution allocation formula under
  Article III (Choose one of (a), (b) or (c)):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (a)

  	
  W-2 wages increased by Elective
  Contributions.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (b)

  	
  Code §3401(a) federal income
  tax withholding wages increased by Elective Contributions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (c)

  	
  415 compensation.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Note: Each of the Compensation
  definitions in (a), (b) and (c) includes Elective Contributions. See Plan
  Section 1.07(D). To exclude Elective Contributions, the Employer must elect
  (g).]

  
														

 

1

 

	
   

  	
   

  	
  Compensation taken into
  account. For the Plan
  Year in which an Employee first becomes a Participant, the Plan Administrator
  will determine the allocation of Employer contributions (excluding deferral
  contributions) by taking into account (Choose one of (d) or
  (e)):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (d)

  	
  Plan Year. The Employee’s Compensation for the entire Plan
  Year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (e)

  	
  Compensation while a
  Participant. The
  Employee’s Compensation only for the portion of the Plan Year in which the
  Employee actually is a Participant.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Modifications to Compensation
  definition. The
  Employer elects to modify the Compensation definition elected in (a), (b) or
  (c) as follows. (Choose one or more of (f) through (n)
  as applicable. If the Employer elects to allocate its nonelective
  contribution under Plan Section 3.04 using permitted disparity, (i), (j), (k)
  and (l) do not apply):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (f)

  	
  Fringe benefits. The Plan excludes all reimbursements or other
  expense allowances, fringe benefits (cash and noncash), moving expenses,
  deferred compensation and welfare benefits.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (g)

  	
  Elective
  Contributions. The Plan excludes a Participant’s Elective Contributions. See Plan
  Section 1.07(D).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (h)

  	
  Exclusion. The Plan excludes Compensation in excess of: excludes all amounts paid as or for medical
  reimbursements, severance pay, auto allowances, all other forms of extra
  compensation and compensation not paid by the Employer.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (i)

  	
  Bonuses. The Plan excludes bonuses.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (j)

  	
  Overtime. The Plan excludes overtime.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (k)

  	
  Commissions. The Plan excludes commissions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (l)

  	
  Nonelective contributions. The following modifications apply to the
  definition of Compensation for nonelective contributions:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (m)

  	
  Deferral contributions. The following modifications apply to the
  definition of Compensation for deferral contributions:   includes bonuses.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (n)

  	
  Matching contributions. The following modifications apply to the
  definition of Compensation for matching contributions: includes
  bonuses.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  PLAN YEAR/LIMITATION YEAR (1.24). Plan
  Year and Limitation Year mean the 12-consecutive month period (except for a
  short Plan Year) ending every (Choose one of (a) or
  (b). Choose (c) if applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (a)

  	
  December 31.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (b)

  	
  Other:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (c)

  	
  Short Plan Year: commencing on:

  	
   

  	
   and ending on:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  EFFECTIVE DATE (1.10). The
  Employer’s adoption of the Plan is a (Choose one of (a) or
  (b)):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (a)

  	
  New Plan. The Effective Date of the Plan is:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (b)

  	
  Restated
  Plan. The restated Effective Date is:  August 1, 2004

  
	
   

  	
   

  	
   

  	
   

  	
  This Plan is an amendment and
  restatement of an existing retirement plan(s) originally established
  effective as of:  February
  1, 1976

  
														

 

2

 

	
  7.

  	
   

  	
  HOUR OF SERVICE/ELAPSED TIME
  METHOD (1.15). The crediting method for Hours of Service is (Choose one or more of (a) through (d) as applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (a)

  	
  Actual Method. See Plan Section 1.15(B).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (b)

  	
  Equivalency Method. The Equivalency Method is:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  [Note: Insert “daily,”
  “weekly,” “semi-monthly payroll periods” or “monthly.”] See Plan
  Section 1.15(C).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (c)

  	
  Combination method. In lieu of the Equivalency Method specified in
  (b), the Actual Method applies for purposes of:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (d)

  	
  Elapsed Time Method. In lieu of crediting Hours of Service, the
  Elapsed Time Method applies for purposes of crediting Service for (Choose one or more of (1), (2) or (3) as applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  Eligibility under Article II.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Vesting under Article V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  (3)

  	
  Contribution allocations under
  Article III.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  PREDECESSOR EMPLOYER SERVICE (1.30). In
  addition to the predecessor service the Plan must credit by reason of Section
  1.30 of the Plan, the Plan credits as Service under this Plan service, with
  the following predecessor employer(s):

  
	
   

  	
   

  	
  Knowledge Revolution, AES, MDI,
  PDA Engineering, Silverado Consulting, Marc Analysis, Research Corp, and
  Universal Analytics, Inc.

  
	
   

  	
   

  	
  [Note: If the Plan does not
  credit any additional predecessor service under this Section 1.30, insert “N/A”
  in the blank line. The Employer also may elect to credit predecessor service
  with specified Participating Employers only. See the Participation
  Agreement.] Service
  with the designated predecessor employer(s) applies (Choose
  one or more of (a) through (d) as applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (a)

  	
  Eligibility. For eligibility under Article II. See Plan
  Section 1.30 for time of Plan entry.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (b)

  	
  Vesting. For vesting under Article V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (c)

  	
  Contribution
  allocation. For
  contribution allocations under Article III.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (d)

  	
  Exceptions. Except for the following Service:

  
								

 

ARTICLE II

ELIGIBILITY REQUIREMENTS

 

	
  9.

  	
   

  	
  ELIGIBILITY (2.01).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Eligibility conditions. To become a Participant in the Plan, an
  Employee must satisfy the following eligibility conditions (Choose one or more of (a) through (e) as applicable): [Note: If the Employer does not elect (c), the Employer’s elections
  under (a) and (b) apply to all types of contributions. The Employer as to
  deferral contributions may not elect (b)(2) and may not elect more than 12
  months in (b)(4) and (b)(5).]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (a)

  	
  Age. Attainment of age          (not
  to exceed age 21).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (b)

  	
  Service. Service requirement. (Choose
  one of (1) through (5)):

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ý

  	
  (1)

  	
  One Year of Service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Two Years of Service, without
  an intervening Break in Service. See Plan Section 2.03(A).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  (3)

  	
  One Hour of Service (immediate
  completion of Service requirement). The Employee satisfies the Service
  requirement on his/her Employment Commencement Date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  (4)

  	
             Months
  (not exceeding 24).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  (5)

  	
  An Employee must complete                  
  Hours of Service within the                          
  time period following the Employee’s Employment Commencement Date. If an
  Employee does not complete the stated Hours of Service during the specified
  time period (if any), the Employee is subject to the One Year of Service
  requirement. [Note: The number of hours may not exceed
  1,000 and the time period may not exceed 24 months. If the Plan does not
  require the Employee to satisfy the Hours of Service requirement within a
  specified time period, insert “N/A” in the second blank line.]

  
									

 

3

 

	
   

  	
   

  	
  ý

  	
  (c)

  	
  Alternative 401(k)/401(m) eligibility
  conditions. In lieu of
  the elections in (a) and (b), the Employer elects the following eligibility
  conditions for the following types of contributions (Choose
  (1) or (2) or both if the Employer wishes to impose less restrictive
  eligibility conditions for deferral/Employee contributions or for matching
  contributions):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ý

  	
  (1)

  	
  Deferral/Employee contributions
  (Choose
  one of a. through d. Choose e. if applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
  a.

  	
  One Year of Service

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
  b.

  	
  One Hour of Service (immediate
  completion of Service requirement)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ý

  	
  c.

  	
  3 months (not exceeding 12)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
  d.

  	
  An Employee must complete                Hours
  of Service within the                         time
  period following an Employee’s Employment Commencement Date. If an Employee
  does not complete the stated Hours of Service during the specified time
  period (if any), the Employee is subject to the One Year of Service
  requirement. [Note: The number of hours may not exceed
  1,000 and the time period may not exceed 12 months. If the Plan does not
  require the Employee to satisfy the Hours of Service requirement within a
  specified time period, insert “N/A” in the second blank line.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
  e.

  	
  Age        (not
  exceeding age 21)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ý

  	
  (2)

  	
  Matching contributions: (Choose one of f. through i.
  Choose j. if applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
  f.

  	
  One Year of Service

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
  g.

  	
  One Hour of Service (immediate
  completion of Service requirement)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ý

  	
  h.

  	
  3 months (not exceeding 24)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
  i.

  	
  An Employee must complete                Hours
  of Service within the                     time
  period following an Employee’s Employment Commencement Date. If an Employee
  does not complete the stated Hours of Service during the specified time
  period (if any), the Employee is subject to the One Year of Service
  requirement. [Note: The number of hours may not exceed
  1,000 and the time period may not exceed 24 months. If the Plan does not
  require the Employee to satisfy the Hours of Service requirement within a
  specified time period, insert “N/A” in the second blank line.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
  j.

  	
  Age        
  (not exceeding age 21)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (d)

  	
  Service requirements: Any
  Employee employed on January 1, 2004, is eligible for matching contributions
  without regard to the 3-month service requirement.

  
	
   

  	
   

  	
   

  	
   

  	
  [Note: Any Service requirement
  the Employer elects in (d) must be available under other Adoption Agreement
  elections or a combination thereof.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (e)

  	
  Dual eligibility. The eligibility conditions of this Section 2.01
  apply solely to an Employee employed by the Employer after
                                       .
  If the Employee was employed by the Employer by the specified date, the
  Employee will become a Participant on the latest of: (i) the Effective Date;
  (ii) the restated Effective Date; (iii) the Employee’s Employment
  Commencement Date; or (iv) on the date the Employee attains age                       
  (not exceeding age 21).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Plan Entry Date.  “Plan Entry Date” means the Effective Date and (Choose
  one of (f) through (j).  Choose (k) if
  applicable):  [Note: If the Employer does not elect (k), the elections under (f)
  through (j) apply to all types of contributions.  The Employer must elect at least one Entry
  Date per Plan Year.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (f)

  	
  Semi-annual Entry Dates. The first day of the Plan Year and the first
  day of the seventh month of the Plan Year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (g)

  	
  The first day of the Plan Year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (h)

  	
  Employment Commencement Date (immediate eligibility).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (i)

  	
  The first day of each: month (e.g., “Plan Year quarter”).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (j)

  	
  The following Plan Entry Dates:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
												

 

4

 

	
   

  	
   

  	
  o

  	
  (k)

  	
  Alternative 401(k)/401(m) Plan
  Entry Date(s). For the
  alternative 401(k)/401(m) eligibility conditions under (c), Plan Entry Date
  means (Choose (1) or (2) or both as applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  Deferral/Employee contributions

  	
  o

  	
  (2)

  	
  Matching contributions

  
	
   

  	
   

  	
   

  	
   

  	
  (Choose one of a. through d.):

  	
   

  	
   

  	
  (Choose one of e. through h.):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  a.

  	
  Semi-annual Entry Dates

  	
  o

  	
  e.

  	
  Semi-annual Entry Dates

  
	
   

  	
   

  	
   

  	
  o

  	
  b.

  	
  The first day of the Plan Year

  	
  o

  	
  f.

  	
  The first day of the Plan Year

  
	
   

  	
   

  	
   

  	
  o

  	
  c.

  	
  Employment Commencement Date
  (immediate eligibility)

  	
  o

  	
  g.

  	
  Employment Commencement Date
  (immediate eligibility)

  
	
   

  	
   

  	
   

  	
  o

  	
  d.

  	
  The first day of each:

  	
  o

  	
  h.

  	
  The first day of each:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Time of participation. An Employee will become a Participant, unless
  excluded under Section 1.11, on the Plan Entry Date (if employed on that
  date) (Choose one of (l), (m) or (n). Choose (o) if
  applicable): [Note: If the Employer
  does not elect (o), the election under (l), (m) or (n) applies to all types
  of contributions.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (l)

  	
  Immediately following or
  coincident with

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (m)

  	
  Immediately preceding or
  coincident with

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (n)

  	
  Nearest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (o)

  	
  Alternative 401(k)/401(m)
  election(s) (Choose (1) or (2) or both as applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  Deferral contributions

  	
  o

  	
  (2)

  	
  Matching contributions

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Choose one of b.,c. or d.):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  a.

  	
  Immediately following or

  coincident with

  	
  o

  	
    b.

  	
  Immediately following

  or coincident with

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
    c.

  	
  Immediately preceding

  or coincident with

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
    d.

  	
  Nearest 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  the date the Employee
  completes the eligibility conditions described in this Section 2.01. [Note: Unless otherwise excluded under Section 1.11, an Employee must
  become a Participant by the earlier of: (1) the first day of the Plan Year
  beginning after the date the Employee completes the age and service
  requirements of Code §410(a); or (2) 6 months after the date the Employee
  completes those requirements.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  YEAR OF SERVICE – ELIGIBILITY (2.02). (Choose (a) and (b) as applicable): [Note: If the Employer does not
  elect a Year of Service condition or elects the Elapsed Time Method, the
  Employer should not complete (a) or (b).]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (a)

  	
  Year of Service. An Employee must complete 1,000 Hour(s)
  of Service during an eligibility computation period to receive credit for a
  Year of Service under Article II: [Note: The number may
  not exceed 1,000. If left blank, the requirement is 1,000.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (b)

  	
  Eligibility computation period.
  After the initial
  eligibility computation period described in Plan Section 2.02, the Plan
  measures the eligibility computation period as (Choose
  one of (1) or (2)):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ý

  	
  (1)

  	
  The Plan Year beginning with
  the Plan Year which includes the first anniversary of the Employee’s
  Employment Commencement Date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  The 12-consecutive month
  period beginning with each anniversary of the Employee’s Employment
  Commencement Date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  PARTICIPATION – BREAK IN
  SERVICE (2.03). The one year hold-out rule described in Plan
  Section 2.03(B) (Choose one of (a), (b) or (c)):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  (a)

  	
  Not applicable. Does not apply to the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (b)

  	
  Applicable. Applies to the Plan and to all Participants.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  (c)

  	
  Limited application. Applies to the Plan, but only to a Participant
  who has incurred a Separation from Service.

  
																	

 

5

 

	
  12.

  	
  ELECTION NOT TO PARTICIPATE  (2.06).  The Plan (Choose one of (a) or (b)):

  
	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Election not permitted.  Does not permit an eligible Employee to elect not to participate.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (b)

  	
  Irrevocable election.  Permits an Employee to elect not to participate if the Employee makes a
  one-time irrevocable election prior to the Employee’s Plan Entry Date.

  
					

 

ARTICLE III

EMPLOYER CONTRIBUTIONS, DEFERRAL CONTRIBUTIONS AND FORFEITURES

 

	
  13.

  	
  AMOUNT AND TYPE  (3.01).  The amount
  and type(s) of the Employer’s contribution to the Trust for a Plan Year or
  other specified period will equal (Choose one or more of
  (a) through (f) as applicable):

  
	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Deferral contributions (401(k)
  arrangement).  The dollar or percentage amount by which each
  Participant has elected to reduce his/her Compensation, as provided in the
  Participant’s salary reduction agreement and in accordance with Section 3.02.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (b)

  	
  Matching contributions (other
  than safe harbor matching contributions under Section 3.01(d)).  The matching contributions made in accordance with Section 3.03.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (c)

  	
  Nonelective contributions
  (profit sharing).  The following nonelective contribution (Choose (1) or (2) or both as applicable): [Note: The Employer may designate as a qualified nonelective
  contribution, all or any portion of its nonelective contribution.  See Plan Section 3.04(F).]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (1)

  	
  Discretionary.  An amount the Employer in its sole discretion may determine.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Fixed.  The following amount:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (d)

  	
  401(k) safe harbor
  contributions.  The following 401(k) safe harbor contributions
  described in Plan Section 14.02(D) (Choose one of (1), (2)
  or (3).  Choose (4) if applicable):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  Safe harbor nonelective
  contribution.  The safe harbor nonelective contribution equals
                %
  of a Participant’s Compensation [Note: the amount in the
  blank must be at least 3%.].

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Basic safe harbor matching
  contribution.  A matching contribution equal to 100% of each
  Participant’s deferral contributions not exceeding 3% of the Participant’s
  Compensation, plus 50% of each Participant’s deferral contributions in excess
  of 3% but not in excess of 5% of the Participant’s Compensation.  For this purpose, “Compensation” means
  Compensation for: 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Note: The Employer must
  complete the blank line with the applicable time period for computing the
  Employer’s basic safe harbor match, such as “each payroll period,” “each
  month,” “each Plan Year quarter” or “the Plan Year.”]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (3)

  	
  Enhanced safe harbor matching
  contribution. (Choose
  one of a. or b.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  a.

  	
  Uniform percentage.  An amount equal to             
  % of each Participant’s 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  deferral contributions not
  exceeding               
  % of the Participant’s 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Compensation.  For this purpose, “Compensation” means
  Compensation for: 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  [See the Note in (d)(2).]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  b.

  	
  Tiered formula.  An amount equal to the specified matching percentage for the
  corresponding level of each Participant’s deferral contribution
  percentage.  For this purpose, “Compensation”
  means Compensation for:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  [See the Note in (d)(2).]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Deferral
  Contribution Percentage

  	
   

  	
  Matching Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [Note: The matching percentage
  may not increase as the deferral contribution percentage increases and the
  enhanced matching formula otherwise must satisfy the requirements of Code
  §§401(k)(12)(B)(ii) and (iii).  If the
  Employer wishes to avoid ACP testing on its enhanced safe harbor matching
  contribution, the Employer also must limit deferral contributions taken into
  account (the “Deferral Contribution Percentage”) for the matching
  contribution to 6% of Plan Year Compensation.]

  
																	

 

6

 

	
   

  	
   

  	
   

  	
  o

  	
  (4)

  	
  Another plan.  The Employer will satisfy the 401(k) safe harbor contribution in the
  following 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  plan:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (e)

  	
  Davis-Bacon contributions.  The amount(s) specified for the applicable Plan Year or other
  applicable period in the Employer’s Davis-Bacon contract(s).  The Employer will make a contribution only
  to Participants covered by the contract and only with respect to Compensation
  paid under the contract.  If the
  Participant accrues an allocation of nonelective contributions (including
  forfeitures) under the Plan in addition to the Davis-Bacon contribution, the
  Plan Administrator will (Choose one of (1) or
  (2)):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  Not
  reduce the Participant’s nonelective contribution allocation by the
  Davis-Bacon contribution.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Reduce the Participant’s
  nonelective contribution allocation by the Davis-Bacon contribution.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (f)

  	
  Frozen Plan.  This Plan is a frozen Plan effective: 

  	
   

  
	
   

  	
   

  	
   

  	
  For any period following the
  specified date, the Employer will not contribute to the Plan, a Participant
  may not contribute and an otherwise eligible Employee will not become a
  Participant in the Plan.

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  DEFERRAL CONTRIBUTIONS  (3.02).  The
  following limitations and terms apply to an Employee’s deferral contributions
  (If the Employer elects Section 3.01(a), the
  Employer must elect (a).  Choose (b) or
  (c) as applicable):

  
	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Limitation on amount.  An Employee’s deferral contributions are subject to the following limitation(s)
  in addition to those imposed by the Code (Choose (1), (2) or (3)
  as applicable):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (1)

  	
  Maximum deferral amount:

  	
  25

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (2)

  	
  Minimum deferral amount:

  	
  2

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (3)

  	
  No limitations.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  For the Plan Year in which an
  Employee first becomes a Participant, the Plan Administrator will apply any
  percentage limitation the Employer elects in (1) or (2) to the Employee’s
  Compensation (Choose one of (4) or (5) unless the
  Employer elects (3)):

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (4)

  	
  Only for the portion of the
  Plan Year in which the Employee actually is a Participant.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (5)

  	
  For the entire Plan Year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (b)

  	
  Negative deferral
  election.  The Employer will withhold                 %
  from the Participant’s Compensation unless
  the Participant elects a lesser percentage (including zero) under his/her
  salary reduction agreement.  See Plan
  Section 14.02(C).  The negative
  election will apply to (Choose one of (1) or
  (2)):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  All Participants who have not
  deferred at least the automatic deferral amount as of:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Each Employee whose Plan Entry
  Date is on or following the negative election effective date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (c)

  	
  Cash or deferred
  contributions.  For each Plan Year for which the Employer makes
  a designated cash or deferred contribution under Plan Section 14.02(B), a
  Participant may elect to receive directly in cash not more than the following
  portion (or, if less, the 402(g) limitation) of his/her proportionate share
  of that cash or deferred contribution (Choose one of (1) or
  (2)):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  All or any portion.  

  	
   

  	
  o

  	
  (2)

  	
   

  	
  %.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Modification/revocation of
  salary reduction agreement.  A Participant prospectively may modify or
  revoke a salary reduction agreement, or may file a new salary reduction
  agreement following a prior revocation, at least once per Plan Year or during
  any election period specified by the basic plan document or required by the
  Internal Revenue Service.  The Plan
  Administrator also may provide for more frequent elections in the Plan’s
  salary reduction agreement form.

  
	
   

  	
   

  
	
  15.

  	
  MATCHING CONTRIBUTIONS
  (INCLUDING ADDITIONAL SAFE HARBOR MATCH UNDER PLAN SECTION 14.02(D)(3))  (3.03).  The
  Employer matching contribution is (If the Employer elects
  Section 3.01(b), the Employer must elect one or more of (a), (b) or (c) as
  applicable.  Choose (d) if applicable):

  
	
   

  	
   

  
	
   

  	
  o

  	
  (a)

  	
  Fixed formula.  An amount equal to
                   %
  of each Participant’s deferral contributions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (b)

  	
  Discretionary formula.  An amount (or additional amount) equal to a matching percentage the
  Employer from time to time may deem advisable of the Participant’s deferral
  contributions.  The Employer, in its
  sole discretion, may designate as a qualified matching contribution, all or
  any portion of its discretionary 

  
																		

 

7

 

	
   

  	
   

  	
   

  	
  matching contribution.  The portion of the Employer’s discretionary
  matching contribution for a Plan Year not designated as a qualified matching
  contribution is a regular matching contribution.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (c)

  	
  Multiple level formula.  An amount equal to the following percentages for each level of the
  Participant’s deferral contributions.  [Note: The matching percentage only will apply to deferral
  contributions in excess of the previous level and not in excess of the stated
  deferral contribution percentage.]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Deferral
  Contributions

  	
   

  	
  Matching Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (d)

  	
  Related Employers.  If two or more Related Employers contribute to this Plan, the Plan Administrator
  will allocate matching contributions and matching contribution forfeitures
  only to the Participants directly employed by the contributing Employer.  The matching contribution formula for the
  other Related 

  
	
   

  	
   

  	
   

  	
  Employer(s) is: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [Note: If the Employer does not
  elect (d), the Plan Administrator will allocate all matching contributions
  and matching forfeitures without regard to which contributing Related
  Employer directly employs the Participant.]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Time period for matching
  contributions.  The Employer will determine its matching
  contribution based on deferral contributions made during each (Choose one of (e) through (h)):

  
	
   

  	
   

  
	
   

  	
  ý

  	
  (e)

  	
  Plan Year.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (f)

  	
  Plan Year quarter.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (g)

  	
  Payroll period.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (h)

  	
  Alternative time period: 

  	
   

  	
  [Note: Any alternative time
  period 

  
	
   

  	
   

  	
   

  	
  the Employer elects in (h) must
  be the same for all Participants and may not exceed the Plan Year.]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Deferral contributions taken
  into account.  In determining a Participant’s deferral
  contributions taken into account for the above-specified time period under
  the matching contribution formula, the following limitations apply (Choose one of (i), (j) or (k)):

  
	
   

  	
   

  
	
   

  	
  o

  	
  (i)

  	
  All deferral
  contributions.  The Plan Administrator will take into account
  all deferral contributions.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (j)

  	
  Specific limitation.  The Plan Administrator will disregard deferral contributions exceeding  5% of the

  
	
   

  	
   

  	
   

  	
  Participant’s
  Compensation.  [Note: To
  avoid the ACP test in a safe harbor 401(k) plan, the Employer must limit
  deferrals and Employee contributions which are subject to match to 6% of Plan
  Year Compensation.]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (k)

  	
  Discretionary.  The Plan Administrator will take into account the deferral
  contributions as a percentage of the Participant’s Compensation as the Employer
  determines.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Other matching contribution
  requirements.  The matching contribution formula is subject to
  the following additional requirements (Choose (l) or (m) or
  both as applicable):

  
	
   

  	
   

  
	
   

  	
  o

  	
  (l)

  	
  Matching contribution
  limits.  A Participant’s matching contributions may not
  exceed (Choose one of (1) or (2)):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
   

  	
  [Note: The Employer may elect
  (1) to place an overall dollar or 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  percentage limit on matching
  contributions.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  4% of a Participant’s
  Compensation for the Plan Year under the discretionary matching contribution
  formula.  [Note: The
  Employer must elect (2) if it elects a discretionary matching formula with
  the safe harbor 401(k) contribution formula and wishes to avoid the ACP
  test.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (m)

  	
  Qualified matching
  contributions.  The Plan Administrator will allocate as
  qualified matching 

  
	
   

  	
   

  	
   

  	
  contributions, the matching
  contributions specified in Adoption Agreement Section: 

  	
   

  	
  .

  	 

	
   

  	
   

  	
   

  	
  The Plan Administrator will
  allocate all other matching contributions as regular matching
  contributions.  [Note: If
  the Employer elects two matching formulas, the Employer may use (m) to
  designate one of the formulas as a qualified matching contribution.]

  
																					

 

8

 

	
  16.

  	
  CONTRIBUTION ALLOCATION (3.04).

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Employer nonelective contributions (3.04(A)). The Plan Administrator will allocate the
  Employer’s nonelective contribution under the following contribution
  allocation formula (Choose one of (a),
  (b) or (c). Choose (d) if applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (a)

  	
  Nonintegrated (pro rata) allocation formula.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (b)

  	
  Permitted disparity. The following permitted disparity formula and definitions apply to the
  Plan (Choose one of (1) or (2). Also choose (3)):

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (1)

  	
  Two-tiered allocation formula.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Four-tiered allocation formula.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (3)

  	
  For purposes of Section 3.04(b), “Excess Compensation” means
  Compensation in excess of (Choose one of a. or b.):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  ý

  	
  a.

  	
  100% of the
  taxable wage base in effect on the first day of the Plan Year, rounded to the
  next highest $1 (not exceeding the taxable wage
  base).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
  b.

  	
  The following integration level:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Note: The integration level cannot exceed the taxable wage base in
  effect for the Plan Year for which this Adoption Agreement first is
  effective.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (c)

  	
  Uniform points allocation formula. Under the uniform points allocation formula, a
  Participant receives (Choose (1) or both
  (1) and (2) as applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
                           point(s)
  for each Year of Service. Year of Service means:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  One point for each $                         [not to exceed $200] increment of Plan Year Compensation.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (d)

  	
  Incorporation of contribution formula. The Plan Administrator will allocate the
  Employer’s nonelective contribution under Section(s) 3.01(c)(2),
  (d)(1) or (e) in accordance with the contribution formula adopted
  by the Employer under that Section.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Qualified nonelective contributions. (3.04(F)). The Plan Administrator will allocate the
  Employer’s qualified nonelective contributions to (Choose
  one of (e) or (f)):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (e)

  	
  Nonhighly Compensated Employees only.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (f)

  	
  All Participants.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Related Employers. (Choose (g) if applicable)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (g)

  	
  Allocate only to directly employed Participants. If two or more Related Employers adopt this
  Plan, the Plan Administrator will allocate all nonelective contributions and
  forfeitures attributable to nonelective contributions only to the Participants
  directly employed by the contributing Employer. If a Participant receives
  Compensation from more than one contributing Employer, the Plan Administrator
  will determine the allocations under this Section 3.04 by prorating the
  Participant’s Compensation between or among the participating Related
  Employers. [Note: If the Employer does not elect
  3.04(g), the Plan Administrator will allocate all nonelective contributions
  and forfeitures without regard to which contributing Related Employer
  directly employs the Participant. The Employer may not elect
  3.04(g) under a safe harbor 401(k) Plan.]

  
											

 

9

 

	
  17.

  	
  FORFEITURE ALLOCATION  (3.05).  The Plan Administrator will allocate a
  Participant forfeiture (Choose one or more of
  (a), (b) or (c) as applicable): [Note:
  Even if the Employer elects immediate vesting, the Employer should complete Section 3.05.  See Plan Section 9.11.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Matching contribution forfeitures. 
  To the extent
  attributable to matching contributions (Choose one of (1) through
  (4)):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  As a discretionary matching contribution.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (2)

  	
  To reduce matching contributions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (3)

  	
  As a discretionary nonelective contribution.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (4)

  	
  To reduce nonelective contributions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (b)

  	
  Nonelective contribution forfeitures. 
  To the extent
  attributable to Employer nonelective contributions (Choose
  one of (1) through (4)):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (1)

  	
  As a discretionary nonelective contribution.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  To reduce nonelective contributions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (3)

  	
  As a discretionary matching contribution.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (4)

  	
  To reduce matching contributions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (c)

  	
  Reduce administrative expenses. 
  First to reduce
  the Plan’s ordinary and necessary administrative expenses for the Plan Year
  and then allocate any remaining forfeitures in the manner described in
  Sections 3.05(a) or (b), as applicable.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Timing of forfeiture allocation. 
  The Plan
  Administrator will allocate forfeitures under Section 3.05 in the Plan
  Year (Choose one of (d) or (e)):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (d)

  	
  In which the forfeiture occurs.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (e)

  	
  Immediately following the Plan Year in which the forfeiture occurs.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  ALLOCATION CONDITIONS  (3.06).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allocation conditions.  The Plan does not apply any allocation conditions to deferral
  contributions, 401(k) safe harbor contributions (under Section 3.01(d))
  or to Davis-Bacon contributions (except as the Davis-Bacon contract
  provides).  To receive an allocation of
  matching contributions, nonelective contributions, qualified nonelective
  contributions or Participant forfeitures, a Participant must satisfy the
  following allocation condition(s) (Choose one or more of (a) through
  (i) as applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Hours of Service condition.  The Participant must complete at least the
  specified number of Hours of Service (not exceeding 1,000) during the Plan
  Year: 1,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (b)

  	
  Employment condition.  The Participant must be employed by the
  Employer on the last day of the
                                               (designate time period).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (c)

  	
  No allocation conditions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (d)

  	
  Elapsed Time Method.  The Participant must complete at least the
  specified number (not exceeding 182) of consecutive calendar days of
  employment with the Employer during the Plan Year:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (e)

  	
  Termination of Service/501 Hours of Service coverage rule.  The Participant either must be employed by the Employer on the last day
  of the Plan Year or must complete at least 501 Hours of Service during the
  Plan Year.  If the Plan uses the
  Elapsed Time Method of crediting Service, the Participant must complete at
  least 91 consecutive calendar days of employment with the Employer during the
  Plan Year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (f)

  	
  Special allocation conditions for matching contributions.  The Participant must complete at least
                 Hours
  of Service during the                                              (designate time period) for the matching contributions
  made for that time period.

  

 

10

 

	
   

  	
  o

  	
  (g)

  	
  Death, Disability or Normal Retirement Age.  Any condition specified in Section 3.06               applies
  if the Participant incurs a Separation from Service during the Plan Year on
  account of:                                        
          (e.g.,
  death, Disability or Normal Retirement Age).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (h)

  	
  Suspension of allocation conditions for coverage.  The suspension of allocation conditions of Plan Section 3.06(E) applies
  to the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (i)

  	
  Limited allocation conditions. 
  The Plan does
  not impose an allocation condition for the following types of contributions: matching contributions

  [Note: Any election to limit the Plan’s
  allocation conditions to certain contributions must be the same for all
  Participants, be definitely determinable and not discriminate in favor of
  Highly Compensated Employees.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
  PARTICIPANT CONTRIBUTIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  EMPLOYEE (AFTER TAX)
  CONTRIBUTIONS  (4.02).  The following elections apply to Employee
  contributions (Choose one of (a) or (b).  Choose (c) if applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Not permitted.  The Plan does not permit Employee contributions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (b)

  	
  Permitted.  The Plan permits Employee contributions subject to the following
  limitations:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [Note: Any designated
  limitation(s) must be the same for all Participants, be definitely
  determinable and not discriminate in favor of Highly Compensated Employees.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (c)

  	
  Matching contribution.  For each Plan Year, the Employer’s matching contribution made with
  respect to 

  
	
   

  	
   

  	
   

  	
  Employee contributions is:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
  VESTING REQUIREMENTS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
  NORMAL/EARLY RETIREMENT AGE  (5.01).  A
  Participant attains Normal Retirement Age (or Early Retirement Age, if applicable)
  under the Plan on the following date (Choose one of (a) or
  (b).  Choose (c) if applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Specific age.  The date the Participant attains age 65.  [Note: The age may not
  exceed age 65.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (b)

  	
  Age/participation.  The later of the date the Participant attains
                  years
  of age or the                  anniversary
  of the first day of the Plan Year in which the Participant commenced participation
  in the Plan.  [Note: The
  age may not exceed age 65 and the anniversary may not exceed the 5th.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (c)

  	
  Early Retirement Age.  Early Retirement Age is the later of: (i) the date a Participant
  attains age          or (ii) the
  date a Participant reaches his/her                     anniversary
  of the first day of the Plan Year in which the Participant commenced
  participation in the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
  PARTICIPANT’S DEATH OR
  DISABILITY  (5.02).  The 100% vesting rule under Plan Section 5.02
  does not apply to (Choose (a) or (b) or
  both as applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (a)

  	
  Death.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (b)

  	
  Disability.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
  VESTING SCHEDULE  (5.03).  A Participant has a 100% Vested interest at
  all times in his/her deferral contributions, qualified nonelective
  contributions, qualified matching contributions, 401(k) safe harbor
  contributions and Davis-Bacon contributions (unless otherwise indicated in
  (f)).  The following vesting schedule applies
  to Employer regular matching contributions and to Employer nonelective
  contributions (Choose (a) or choose one or more of (b) through
  (f) as applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Immediate vesting.  100% Vested at all times.  [Note: The Employer must elect (a) if the Service condition
  under Section 2.01 exceeds One Year of Service or more than twelve
  months.]

  
									

 

11

 

	
   

  	
  o

  	
  (b)

  	
  Top-heavy vesting
  schedules.  [Note: The Employer must choose
  one of (b)(1), (2) or (3) if it does not elect (a).]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  6-year graded as specified in the Plan

  	
   

  	
   

  	
  o 

  	
  (3)

  	
  Modified top-heavy schedule

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  3-year cliff as specified in the Plan

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Years of Service

  	
   

  	
  Vested

  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Less than 1

  	
   

  	
  a.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  b.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  c.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
  d.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  e.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
  f.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6 or more

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (c)

  	
  Non-top-heavy vesting
  schedules.  [Note: The Employer may elect
  one of (c)(1), (2) or (3) in addition to (b).]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  7-year graded as specified in the Plan

  	
   

  	
   

  	
  o 

  	
  (3)

  	
  Modified non-top-heavy
  schedule

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  5-year cliff as specified in the Plan

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Years of Service

  	
   

  	
  Vested

  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Less than 1

  	
   

  	
  a.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  b.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  c.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
  d.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  e.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
  f.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6

  	
   

  	
  g.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7 or more

  	
   

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If the Employer does not elect
  (c), the vesting schedule elected in (b) applies to all Plan
  Years.  [Note: The
  modified top-heavy schedule of (b)(3) must satisfy Code §416.  If the Employer elects (c)(3), the modified
  non-top-heavy schedule must satisfy Code §411(a)(2).]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (d)

  	
  Separate vesting election for
  regular matching contributions.  In lieu of the election under (a), (b) or
  (c), the following vesting schedule applies to a Participant’s regular
  matching contributions (Choose one of (1) or
  (2)): 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  100% Vested at all times.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (2)

  	
  Regular matching vesting
  schedule:  less than
  1 year = 0%; 1 yr + 25%; 2 yrs = 50%;

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  3 yrs = 100%.  Same schedule shall apply if plan is
  top heavy.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Note: The vesting schedule completed
  under (d)(2) must comply with Code §411(a)(4).]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (e)

  	
  Application of top-heavy
  schedule.  The non-top-heavy schedule elected under (c) applies
  in all Plan Years in which the Plan is not a top-heavy plan.  [Note: If the Employer
  does not elect (e), the top-heavy vesting schedule will apply for the
  first Plan Year in which the Plan is top-heavy and then in all subsequent
  Plan Years.]

  
															

 

12

 

	
   

  	
  o

  	
  (f)

  	
  Special vesting provisions:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [Note: Any special vesting
  provision must satisfy Code §411(a). 
  Any special vesting provision must be definitely determinable, not
  discriminate in favor of Highly Compensated Employees and not violate
  Code §401(a)(4).]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
  YEAR OF SERVICE – VESTING  (5.06).  (Choose (a) and (b)): [Note: If
  the Employer elects the Elapsed Time Method or elects immediate vesting, the
  Employer should not complete (a) or (b).]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Year of Service.  An Employee must complete at least 1,000 Hours
  of Service during a vesting computation period to receive credit for a Year
  of Service under Article V.  [Note: The number may not exceed 1,000.  If left blank, the requirement is 1,000.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (b)

  	
  Vesting computation
  period.  The Plan measures a Year of Service on the basis
  of the following 12-consecutive month period (Choose
  one of (1) or (2)):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (1)

  	
  Plan Year.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Employment year (anniversary
  of Employment Commencement Date).

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
  EXCLUDED YEARS OF SERVICE –
  VESTING  (5.08).  The Plan excludes the following Years of
  Service for purposes of vesting (Choose (a) or
  choose one or more of (b) through (f) as applicable):

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  None.  None other than as specified in Plan Section 5.08(a).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (b)

  	
  Age 18.  Any Year of Service before the Year of Service during which the
  Participant attained the age of 18.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (c)

  	
  Prior to Plan
  establishment.  Any Year of Service during the period the
  Employer did not maintain this Plan or a predecessor plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (d)

  	
  Parity Break in Service.  Any Year of Service excluded under the rule of parity.  See Plan Section 5.10.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (e)

  	
  Prior Plan terms.  Any Year of Service disregarded under the terms of the Plan as in
  effect prior to this restated Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (f)

  	
  Additional exclusions.  Any Year of Service before:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [Note: Any exclusion specified
  under (f) must comply with Code §411(a)(4).  Any exclusion must be definitely
  determinable, not discriminate in favor of Highly Compensated Employees and
  not violate Code §401(a)(4).  If the
  Employer elects immediate vesting, the Employer should not complete Section 5.08.]

  
											

 

ARTICLE VI

DISTRIBUTION OF ACCOUNT BALANCE

 

	
  25.

  	
  TIME OF PAYMENT OF ACCOUNT
  BALANCE  (6.01).  The following time of distribution
  elections apply to the Plan:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Separation from Service/Vested
  Account Balance not exceeding $5,000.  Subject to the limitations of Plan Section 6.01(A)(1),
  the Trustee will distribute in a lump sum (regardless of the Employer’s
  election under Section 6.04) a separated Participant’s Vested Account
  Balance not exceeding $5,000 (Choose one of (a) through
  (d)):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Immediate.  As soon as administratively practicable following the Participant’s
  Separation from Service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (b)

  	
  Designated Plan Year.  As soon as administratively practicable in the            Plan
  Year beginning after the Participant’s Separation from Service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (c)

  	
  Designated Plan Year
  quarter.  As soon as administratively practicable in the
                                                 
  Plan Year quarter beginning after the Participant’s Separation from Service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (d)

  	
  Designated distribution.  As soon as administratively practicable in the
                                                      
  

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  following the Participant’s
  Separation from Service.  [Note: The designated distribution time must be the same for all
  Participants, be definitely determinable, not discriminate in favor of Highly
  Compensated Employees and not violate Code §401(a)(4).]

  

 

13

 

	
   

  	
  Separation from Service/Vested
  Account Balance exceeding $5,000.  A separated Participant whose Vested Account
  Balance exceeds $5,000 may elect to commence distribution of his/her Vested
  Account Balance no earlier than (Choose one of (e) through
  (i).  Choose (j) if applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (e)

  	
  Immediate.  As soon as administratively practicable following the Participant’s
  Separation from Service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (f)

  	
  Designated Plan Year.  As soon as administratively practicable in the
                              
  Plan Year beginning after the Participant’s Separation from Service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (g)

  	
  Designated Plan Year
  quarter.  As soon as administratively practicable in the
                                              
  Plan Year quarter following the Plan Year quarter in which the Participant
  elects to receive a distribution.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (h)

  	
  Normal Retirement Age.  As soon as administratively practicable after the close of the Plan
  Year in which the Participant attains Normal Retirement Age and within the
  time required under Plan Section 6.01(A)(2).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (i)

  	
  Designated distribution.  As soon as administratively practicable in the 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  following the Participant’s
  Separation from Service.  [Note: The designated distribution time must the same for all
  Participants, be definitely determinable, not discriminate in favor of Highly
  Compensated Employees and not violate Code §401(a)(4).]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (j)

  	
  Limitation on Participant’s
  right to delay distribution.  A Participant may not elect to delay
  commencement of distribution of his/her Vested Account Balance beyond the
  later of attainment of age 62 or Normal Retirement Age.  [Note: If the Employer
  does not elect (j), the Plan permits a Participant who has Separated from
  Service to delay distribution until his/her required beginning date.  See Plan Section 6.01(A)(2).]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Participant elections prior to
  Separation from Service.  A Participant, prior to Separation from Service
  may elect any of the following distribution options in accordance with Plan Section 6.01(C).  (Choose (k) or choose
  one or more of (l) through (o) as applicable): [Note: If the Employer elects any in-service distribution option, a
  Participant may elect to receive one in-service distribution per Plan Year
  unless the Plan’s in-service distribution form provides for more frequent
  in-service distributions.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (k)

  	
  None.  A Participant does not have any distribution option prior to Separation
  from Service, except as may be provided under Plan Section 6.01(C).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (l)

  	
  Deferral contributions.  Distribution of all or any portion (as permitted by the Plan) of a
  Participant’s Account Balance attributable to deferral contributions if (Choose one or more of (1), (2) or (3) as applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (1)

  	
  Hardship (safe harbor hardship
  rule).  The Participant has incurred a hardship in
  accordance with Plan Sections 6.09 and 14.11(A).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (2)

  	
  Age.  The Participant has attained age 591⁄2 .  (Must be at least age 591⁄2.)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (3)

  	
  Disability.  The Participant has incurred a Disability.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (m)

  	
  Qualified nonelective
  contributions/qualified matching contributions/safe harbor
  contributions.  Distribution of all or any portion of a
  Participant’s Account Balance attributable to qualified nonelective
  contributions, to qualified matching contributions, or to 401(k) safe harbor
  contributions if (Choose (1) or (2) or
  both as applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  Age.  The Participant has attained age
               .  (Must be at least age
  591⁄2.)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Disability.  The Participant has incurred a Disability.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (n)

  	
  Nonelective
  contributions/regular matching contributions. 
  Distribution of
  all or any portion of a Participant’s Vested Account Balance attributable to
  nonelective contributions or to regular matching contributions if (Choose one or more of (1) through (5):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  Age/Service conditions (Choose one or more of a.  through d. 
  as applicable):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
  a.

  	
  Age.  The Participant has attained age
             .

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
  b.

  	
  Two-year allocations.  The Plan Administrator has allocated the contributions to be
  distributed, for a period of not less than                           
  Plan Years before the distribution date. 
  [Note: The minimum number of years is 2.]

  

 

14

 

	
   

  	
   

  	
   

  	
  o

  	
  c.

  	
  Five years of participation.  The Participant has participated in the Plan
  for at Least           Plan
  Years.  [Note: The
  minimum number of years is 5.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  d.

  	
  Vested.  The Participant is                
   % Vested in his/her Account Balance. 
  

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  See Plan Section 5.03(A).  [Note: If an Employer makes more than one election under Section 6.01(n)(1),
  a Participant must satisfy all conditions before the Participant is eligible
  for the distribution.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Hardship.  The Participant has incurred a hardship in
  accordance with Plan Section 6.09.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (3)

  	
  Hardship (safe harbor hardship rule). 
  The Participant
  has incurred a hardship in accordance with Plan Sections 6.09 and 14.11(A).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (4)

  	
  Disability.  The Participant has incurred a Disability.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (5)

  	
  Designated condition.  The Participant has satisfied the following
  condition(s):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Note: Any designated condition(s) must be the same for all
  Participants, be definitely determinable and not discriminate in favor of
  Highly Compensated Employees.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (o)

  	
  Participant contributions.  Distribution of all or any portion of a Participant’s Account Balance
  attributable to the following Participant contributions described in Plan Section 4.01
  (Choose one of (1), (2) or (3)):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  All Participant contributions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Employee contributions only.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (3)

  	
  Rollover contributions only.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Participant loan default/offset. 
  See Section 6.08
  of the Plan.

  
	
   

  	
   

  
	
  26.

  	
  DISTRIBUTION METHOD  (6.03).  A separated Participant whose Vested
  Account Balance exceeds $5,000 may elect distribution under one of the
  following method(s) of distribution described in Plan Section 6.03 (Choose one or more of (a) through (d) as applicable):

  
	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Lump sum.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (b)

  	
  Installments.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (c)

  	
  Installments for required minimum distributions only.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (d)

  	
  Annuity distribution option(s):

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [Note: Any optional method of distribution may not be subject to
  Employer, Plan Administrator or Trustee discretion.]

  
	
   

  	
   

  	
   

  	
   

  
	
  27.

  	
  JOINT AND SURVIVOR ANNUITY REQUIREMENTS  (6.04).  The joint
  and survivor annuity distribution requirements of Plan Section 6.04 (Choose one of (a) or (b)):

  
	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Profit sharing plan exception. 
  Do not apply to
  a Participant, unless the Participant is a Participant described in Section 6.04(H) of
  the Plan.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (b)

  	
  Applicable.  Apply to all Participants.

  
														

 

ARTICLE IX

PLAN ADMINISTRATOR – DUTIES WITH RESPECT TO PARTICIPANTS’ ACCOUNTS

 

	
  28.

  	
  ALLOCATION OF NET INCOME, GAIN OR LOSS  (9.08).  For each
  type of contribution provided under the Plan, the Plan allocates net income,
  gain or loss using the following method (Choose one or more of (a) through
  (e) as applicable):

  
	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Deferral contributions/Employee contributions (Choose one or more of (1) through
  (5) as applicable):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (1)

  	
  Daily valuation method.  Allocate on each business day of the Plan Year
  during which Plan assets for which there is an established market are valued
  and the Trustee is conducting business.

  

 

15

 

	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Balance forward method.  Allocate using the balance forward method.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (3)

  	
  Weighted average method.  Allocate using the weighted average method,
  based on the following weighting period:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  See Plan Section 14.12.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (4)

  	
  Balance forward method with adjustment.  Allocate pursuant to the balance forward method, except treat as part
  of the relevant Account at the beginning of the valuation period                 %
  of the contributions made during the following valuation period:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (5)

  	
  Individual account method.  Allocate using the individual account
  method.  See Plan Section 9.08.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (b)

  	
  Matching contributions.  (Choose one or more of (1) through
  (5) as applicable):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (1)

  	
  Daily valuation method.  Allocate on each business day of the Plan Year
  during which Plan assets for which there is an established market are valued
  and the Trustee is conducting business.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Balance forward method.  Allocate using the balance forward method.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (3)

  	
  Weighted average method.  Allocate using the weighted average method,
  based on the following weighting period:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  See Plan Section 14.12.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (4)

  	
  Balance forward method with adjustment.  Allocate pursuant to the balance forward method, except treat as part
  of the relevant Account at the beginning of the valuation period     % of the contributions made during the
  following valuation period:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (5)

  	
  Individual account method.  Allocate using the individual account
  method.  See Plan Section 9.08.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (c)

  	
  Employer nonelective contributions. (Choose one or more of (1) through
  (5) as applicable):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ý

  	
  (1)

  	
  Daily valuation method.  Allocate on each business day of the Plan Year
  during which Plan assets for which there is an established market are valued
  and the Trustee is conducting business.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Balance forward method.  Allocate using the balance forward method.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (3)

  	
  Weighted average method.  Allocate using the weighted average method,
  based on the 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  following weighting period:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  See Plan Section 14.12.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (4)

  	
  Balance forward method with adjustment.  Allocate pursuant to the balance forward method, except treat as part
  of the relevant Account at the beginning of the valuation period            %
  of the contributions made during the following valuation period:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (5)

  	
  Individual account method.  Allocate using the individual account
  method.  See Plan Section 9.08.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (d)

  	
  Specified method.  Allocate pursuant to the following method:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [Note: The specified method must be a definite predetermined formula
  which is not based on Compensation, which satisfies the nondiscrimination
  requirements of Treas. Reg. §1.401(a)(4) and which is applied uniformly to
  all Participants.]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (e)

  	
  Interest rate factor.  In accordance with Plan Section 9.08(E),
  the Plan includes interest at the following rate on distributions made more
  than 90 days after the most recent valuation date:

  
	
   

  	
   

  	
   

  	
   

  

 

16

 

ARTICLE X

TRUSTEE AND CUSTODIAN, POWERS AND DUTIES

 

	
  29.

  	
  INVESTMENT POWERS  (10.03).  The
  following additional investment options or limitations apply under Plan 

  
	
   

  	
  Section 10.03:

  	
   

  
	
   

  	
   

  	
  [Note: Enter “N/A” if not
  applicable.]

  
	
   

  	
   

  	
   

  
	
  30.

  	
  VALUATION OF TRUST (10.15).  In addition to the last day of the Plan
  Year, the Trustee must value the Trust Fund on the following valuation
  date(s) (Choose one of (a) through (d)):

  
	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Daily valuation dates.  Each business day of the Plan Year on which Plan assets for which there
  is an established market are valued and the Trustee is conducting business.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (b)

  	
  Last day of a specified
  period.  The last day of each

  	
   

  	
  of the Plan Year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (c)

  	
  Specified dates:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (d)

  	
  No additional valuation dates.

  
											

 

17

 

EXECUTION PAGE

 

	
  The Trustee (and Custodian, if applicable), by executing this Adoption
  Agreement, accepts its position and agrees to all of the obligations,
  responsibilities and duties imposed upon the Trustee (or Custodian) under the
  Prototype Plan and Trust.  The Employer
  hereby agrees to the provisions of this Plan and Trust, and in witness of its
  agreement, the Employer by its duly authorized officers, has executed this
  Adoption Agreement, and the Trustee (and Custodian, if applicable) has
  signified its 

  
	
  acceptance, on:

  	
   

  	
  .

  

 

	
  Name of Employer:

  	
  MSC.SOFTWARE CORPORATION

  
	
  Employer’s EIN:

  	
  95-2239450

  
	
  Signed:

  	
     /s/ Louis A. Greco

  
	
   

  	
   

  
	
   

  	
  [Name/Title]

  
	
  Name(s) of Trustee:

  	
   

  
	
   

  	
  WELLS FARGO BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Trust EIN (Optional):

  	
   

  
	
   

  	
   

  
	
  Signed:

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name/Title]

  
	
  Signed:

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name/Title]

  
	
  Signed:

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name/Title]

  
	
  Name of Custodian (Optional):

  	
   

  
	
   

  	
   

  
	
  Signed:

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name/Title]

  
									

 

	
  31.

  	
  Plan Number.  The 3-digit plan number the Employer assigns to
  this Plan for ERISA reporting purposes (Form 5500 

  
	
   

  	
  Series) is:  001

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Use of Adoption Agreement.  Failure to complete properly the elections in
  this Adoption Agreement may result in disqualification of the Employer’s
  Plan.  The Employer only may use this
  Adoption Agreement in conjunction with the basic plan document referenced by
  its document number on Adoption Agreement page one.

  
	
   

  
	
  Execution for Page Substitution Amendment Only.  If this paragraph is completed, this Execution Page documents an 

  
	
  amendment to Adoption Agreement Section(s)

  	
   

  	
  effective

  	
   

  
	
  by substitute Adoption Agreement page number(s)

  	
   

  
	
   

  	
   

  
	
  Prototype Plan Sponsor.  The Prototype Plan Sponsor identified on the
  first page of the basic plan document will notify all adopting employers
  of any amendment of this Prototype Plan or of any abandonment or
  discontinuance by the Prototype Plan Sponsor of its maintenance of this
  Prototype Plan.  For inquiries
  regarding the adoption of the Prototype Plan, the Prototype Plan Sponsor’s
  intended meaning of any Plan provisions or the effect of the opinion letter
  issued to the Prototype Plan Sponsor, please contact the Prototype Plan
  Sponsor at the following address and telephone number:  

  
	
  BPSM, LLC, 5301 Virginia Way, Suite 400,
  Brentwood, TN 37027, (615) 665-1640

  
	
   

  
	
  Reliance on Sponsor Opinion Letter. 
  The Prototype
  Plan Sponsor has obtained from the IRS an opinion letter specifying the form
  of this Adoption Agreement and the basic plan document satisfy, as of the
  date of the opinion letter, Code §401. 
  An adopting Employer may rely on the Prototype Sponsor’s IRS opinion
  letter only to the extent provided in
  Announcement 2001-77, 2001-30 I.R.B. 
  The Employer may not rely on the opinion letter in certain other
  circumstances or with respect to certain qualification requirements, which
  are specified in the opinion letter and in Announcement 2001-77.  In order to have reliance in such
  circumstances or with respect to such qualification requirements, the
  Employer must apply for a determination letter to Employee Plans
  Determinations of the Internal Revenue Service.

  
								

 

18

 

PARTICIPATION AGREEMENT

 

o            Check here if not applicable and do not complete this page.

 

	
  The undersigned Employer, by executing this Participation Agreement,
  elects to become a Participating Employer in the Plan identified in Section 1.21
  of the accompanying Adoption Agreement, as if the Participating Employer were
  a signatory to that Adoption Agreement. 
  The Participating Employer accepts, and agrees to be bound by, all of
  the elections granted under the provisions of the Prototype Plan as made by
  the Signatory Employer to the Execution Page of the Adoption Agreement,
  except as otherwise provided in this Participation Agreement.

  
	
   

  
	
  32.

  	
  EFFECTIVE DATE  (1.10).  The
  Effective Date of the Plan for the Participating Employer is: August 1, 2004

  
	
   

  	
   

  	
   

  
	
  33.

  	
  NEW PLAN/RESTATEMENT.  The Participating Employer’s
  adoption of this Plan constitutes (Choose one of (a) or
  (b)):

  
	
   

  	
   

  
	
   

  	
  o

  	
  (a)

  	
  The adoption of a new plan by the Participating Employer.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (b)

  	
  The adoption of an amendment and restatement of a plan currently
  maintained by the Participating 

  
	
   

  	
   

  	
   

  	
  Employer, identified as: MSC.Software Corporation Retirement Plan

  
	
   

  	
   

  	
   

  	
  and having an original
  effective date of:  July 20, 2001, as to this Participating
  Employer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34.

  	
  PREDECESSOR EMPLOYER SERVICE  (1.30).  In addition to the predecessor service
  credited by reason of Section 1.30 of the Plan, the Plan credits as
  Service under this Plan, service with this Participating Employer (Choose one or more of (a) through (d) as applicable):
  [Note: If the Plan does not credit any additional predecessor service under Section 1.30
  for this Participating Employer, do not complete this election.]

  
	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  Eligibility.  For eligibility under Article II.  See Plan Section 1.30 for time of Plan
  entry.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (b)

  	
  Vesting.  For vesting under Article V.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (c)

  	
  Contribution allocation.  For contribution allocations under Article III.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (d)

  	
  Exceptions.  Except for the following Service: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name of Plan:

  	
   

  	
  Name of Participating Employer:

  
	
  MSC.Software Corporation Retirement Plan

  	
   

  	
  MSC.Software Sales

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signed:

  	
  /s/ Louis A. Greco

  
	
   

  	
   

  	
  [Name/Title]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Date]

  
	
   

  	
   

  	
  Participating Employer’s EIN:

  	
  33-0669359

  
	
   

  	
   

  	
   

  	
   

  
	
  Acceptance by the Signatory Employer to the Execution Page of
  the Adoption Agreement and by the Trustee.

  
	
   

  
	
   

  
	
  Name of Signatory Employer:

  	
  MSC.Software Corporation

  	
   

  	
  Name(s) of Trustee:

  	
  Wells Fargo Bank, N.A.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Name/Title]

  	
   

  	
  [Name/Title]

  
	
  Signed:

  	
  /s/ Louis A. Greco

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
   

  
	
  [Date]

  	
   

  	
  [Date]

  
	
   

  	
   

  	
   

  
	
  [Note: Each Participating Employer must execute a separate
  Participation Agreement.  If the Plan
  does not have a Participating Employer, the Signatory Employer may delete
  this page from the Adoption Agreement.]

  
														

 

19

 

APPENDIX A

TESTING ELECTIONS/EFFECTIVE DATE ADDENDUM

 

	
  35.

  	
  The following testing elections and special effective dates apply (Choose one or more of (a) through (n) as applicable):

  
	
   

  	
   

  
	
   

  	
  o

  	
  (a)

  	
  Highly Compensated Employee (1.14).  For
  Plan Years beginning after

  	
   

  	
  ,

  
	
   

  	
   

  	
   

  	
  the Employer makes the following election(s) regarding the definition
  of Highly Compensated Employee:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  Top paid group election.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Calendar year data election (fiscal year plan).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (b)

  	
  401(k) current year testing.  The Employer will apply the current year
  testing method in applying the 

  
	
   

  	
   

  	
   

  	
  ADP and ACP tests effective
  for Plan Years beginning after  1997

  
	
   

  	
   

  	
   

  	
  [Note:  For Plan Years
  beginning on or after the Employer’s execution of its “GUST” restatement, the
  Employer must use the same testing method within the same Plan Year for both
  the ADP and ACP tests.]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (c)

  	
  Compensation.  The Compensation definition under Section 1.07
  will apply for Plan Years beginning after:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (d)

  	
  Election not to participate.  The election not to participate under Section 2.06
  is effective:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (e)

  	
  401(k) safe harbor.  The 401(k) safe harbor provisions under Section 3.01(d) are
  effective:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (f)

  	
  Negative election.  The negative election provision under Section 3.02(b) is
  effective:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (g)

  	
  Contribution/allocation formula. 
  The specified
  contribution(s) and allocation method(s) under 

  
	
   

  	
   

  	
   

  	
  Sections 3.01 and 3.04 are effective:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (h)

  	
  Allocation conditions.  The allocation conditions of Section 3.06
  are effective:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (i)

  	
  Benefit payment elections.  The distribution elections of Section(s)

  	
   

  
	
   

  	
   

  	
   

  	
  are effective:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (j)

  	
  Election to continue pre-SBJPA required beginning date.  A Participant may not elect to defer commencement of the distribution
  of his/her Vested Account Balance beyond the April 1 following the
  calendar year in which the Participant attains age 701⁄2.  See Plan Section 6.02.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (k)

  	
  Elimination of age 701⁄2 in-service distributions.  The Plan eliminates a Participant’s (other than a more than 5% owner)
  right to receive in-service distributions on April 1 of the calendar
  year following the year in 

  
	
   

  	
   

  	
   

  	
  which the Participant attains age 701⁄2 for Plan Years beginning after:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (l)

  	
  Allocation of earnings.  The earnings allocation provisions under Section 9.08
  are effective: 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (m)

  	
  Elimination of optional forms of benefit.  The Employer elects prospectively to eliminate the following optional
  forms of benefit (Choose one or more of
  (1), (2) and (3) as applicable):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  QJSA and QPSA benefits as described in Plan Sections 6.04, 6.05 and
  6.06 effective:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Installment distributions as described in Section 6.03 effective:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (3)

  	
  Other optional forms of benefit (Any election to
  eliminate must be consistent with Treas. Reg. 
  

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  §1.411(d)-4):

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ý

  	
  (n)

  	
  Special effective date(s):  Item 9(c)(2) effective January 1,
  2004.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  For periods prior to the above-specified special effective date(s), the
  Plan terms in effect prior to its restatement under this Adoption Agreement
  will control for purposes of the designated provisions.  A special effective date may not result in
  the delay of a Plan provision beyond the permissible effective date under any
  applicable law.

  
														

 

20

 

APPENDIX B

GUST REMEDIAL AMENDMENT PERIOD ELECTIONS

 

	
  36.

  	
  The following GUST restatement elections apply (Choose one or more of (a) through (j) as applicable):

  
	
   

  	
   

  
	
   

  	
  o

  	
  (a)

  	
  Highly Compensated Employee elections.  The
  Employer makes the following remedial amendment period elections with respect
  to the Highly Compensated Employee definition:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (1)

  	
  1997:

  	
  o

  	
  Top paid group election.

  	
   

  	
  o

  	
  Calendar year election.

  
	
   

  	
   

  	
   

  	
  (2)

  	
  1998:

  	
  o

  	
  Top paid group election.

  	
   

  	
  o

  	
  Calendar year data election.

  
	
   

  	
   

  	
   

  	
  (3)

  	
  1999:

  	
  o

  	
  Top paid group election.

  	
   

  	
  o

  	
  Calendar year data election.

  
	
   

  	
   

  	
   

  	
  (4)

  	
  2000:

  	
  o

  	
  Top paid group election.

  	
   

  	
  o

  	
  Calendar year data election.

  
	
   

  	
   

  	
   

  	
  (5)

  	
  2001:

  	
  o

  	
  Top paid group election.

  	
   

  	
  o

  	
  Calendar year data election.

  
	
   

  	
   

  	
   

  	
  (6)

  	
  2002:

  	
  o

  	
  Top paid group election.

  	
   

  	
  o

  	
  Calendar year data election.

  
	
   

  	
   

  	
   

  	
  (7)

  	
  2003

  	
  o

  	
  Top paid group election.

  	
   

  	
  o

  	
  Calendar year data election.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (b)

  	
  401(k) testing methods.  The Employer makes the following remedial
  amendment period elections with respect to the ADP test and the ACP test: [Note: The Employer may use a different testing method for the ADP
  and ACP tests through the end of the Plan Year in which the Employer executes
  its GUST restated Plan.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  ADP Test

  	
   

  	
  ACP Test

  
	
   

  	
   

  	
   

  	
  (1)

  	
  1997:

  	
  o

  	
  prior year

  	
  o

  	
  current year

  	
  1997:

  	
  o

  	
  prior year

  	
  o

  	
  current year

  
	
   

  	
   

  	
   

  	
  (2)

  	
  1998:

  	
  o

  	
  prior year

  	
  o

  	
  current year

  	
  1998:

  	
  o

  	
  prior year

  	
  o

  	
  current year

  
	
   

  	
   

  	
   

  	
  (3)

  	
  1999:

  	
  o

  	
  prior year

  	
  o

  	
  current year

  	
  1999:

  	
  o

  	
  prior year

  	
  o

  	
  current year

  
	
   

  	
   

  	
   

  	
  (4)

  	
  2000:

  	
  o

  	
  prior year

  	
  o

  	
  current year

  	
  2000:

  	
  o

  	
  prior year

  	
  o

  	
  current year

  
	
   

  	
   

  	
   

  	
  (5)

  	
  2001:

  	
  o

  	
  prior year

  	
  o

  	
  current year

  	
  2001:

  	
  o

  	
  prior year

  	
  o

  	
  current year

  
	
   

  	
   

  	
   

  	
  (6)

  	
  2002:

  	
  o

  	
  prior year

  	
  o

  	
  current year

  	
  2002:

  	
  o

  	
  prior year

  	
  o

  	
  current year

  
	
   

  	
   

  	
   

  	
  (7)

  	
  2003

  	
  o

  	
  prior year

  	
  o

  	
  current year

  	
  2003

  	
  o

  	
  prior year

  	
  o

  	
  current year

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (c)

  	
  Delayed application of SBJPA required beginning date.  The Employer elects to delay the effective date for the required
  beginning date provision of Plan Section 6.02 until Plan Years beginning
  after: 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (d)

  	
  Model Amendment for required minimum distributions.  The Employer adopts the IRS Model 

  
	
   

  	
   

  	
   

  	
  Amendment in Plan Section 6.02(E) effective

  	
   

  
	
   

  	
   

  	
   

  	
  [Note: The date must not be earlier than January 1, 2001.]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Defined Benefit Limitation

  
	
   

  	
   

  
	
   

  	
  o

  	
  (e)

  	
  Code §415(e) repeal.  The repeal of the Code §415(e) limitation
  is effective for Limitation Years beginning 

  
	
   

  	
   

  	
   

  	
  after

  	
   

  	
  [Note: If the Employer does not make an election under 

  
	
   

  	
   

  	
   

  	
  (e), the repeal is effective for Limitation Years beginning after December 31,
  1999.]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Code
  §415(e) limitation.  To the extent necessary to satisfy the
  limitation under Plan Section 3.17 for Limitation Years beginning prior
  to the repeal of Code §415(e), the Employer will reduce (Choose
  one of (f) or (g)):

  
	
   

  	
   

  
	
   

  	
  o

  	
  (f)

  	
  The Participant’s projected annual benefit under the defined benefit
  plan.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (g)

  	
  The Employer’s contribution or allocation on behalf of the Participant
  to the defined contribution plan and then, if necessary, the Participant’s
  projected annual benefit under the defined benefit plan.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Coordination with top-heavy
  minimum allocation.  The Plan Administrator will apply the top-heavy
  minimum allocation provisions of Article XII with the following modifications
  (Choose (h) or choose (i) or (j) or
  both as applicable):

  
	
   

  	
   

  
	
   

  	
  o

  	
  (h)

  	
  No modifications.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (i)

  	
  For Non-Key Employees participating only in this Plan, the top-heavy
  minimum allocation is the minimum 

  
	
   

  	
   

  	
   

  	
  allocation determined by substituting

  	
   

  	
  % (not less than 4%) for “3%,” except 

  
	
   

  	
   

  	
   

  	
  (Choose one of (1) or (2)):

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  No exceptions.

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  Plan Years in which the top-heavy ratio exceeds 90%.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (j)

  	
  For Non-Key Employees also participating in the defined benefit plan,
  the top-heavy minimum is (Choose one of (1) or
  (2)):

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  5% of Compensation irrespective of the contribution rate of any Key
  Employee (Choose one of a. or b.):

  
	
   

  	
   

  	
   

  	
  o

  	
  a.

  	
  No exceptions.

  
	
   

  	
   

  	
   

  	
  o

  	
  b.

  	
  Substituting “71⁄2%” for “5%” if the top-heavy ratio does not exceed 90%.

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  0%.  [Note: The
  defined benefit plan must satisfy the top-heavy minimum benefit requirement
  for these Non-Key Employees.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Actuarial assumptions for top-heavy calculation.  To determine the top-heavy ratio, the Plan Administrator will use the
  following interest rate and mortality assumptions to value accrued benefits
  under a defined benefit plan:

  
	
   

  	
   

  
																									

 

21

 

ADDENDUM I

TO THE ADOPTION AGREEMENT

 

	
   

  	
  Effective August 1, 2004

  	
   

  
	
   

  	
  (unless a different date is
  indicated below)

  	
   

  

 

The
Prototype Plan permits the Employer to make certain additions or revisions to
the Plan by attaching addenda to the Adoption Agreement.  This form lists some of the permitted addenda
and provides a means of memorializing such addenda as part of the Plan.  Only those items checked and/or completed
below shall be considered part of and incorporated into the Plan.  Use of this form shall not preclude the
Employer from attaching additional addenda as allowed by the Plan.

 

	
  1.

  	
  Disability (1.08).  Unless
  elected otherwise, the Employer shall require medical evidence to confirm a
  Participant’s Disability (choose another option
  or a combination as applicable):

  
	
   

  	
   

  
	
   

  	
  o

  	
  No medical evidence will be required; employer will make determination
  on disability.

  
	
   

  	
   

  
	
   

  	
  In addition to medical
  evidence, the Employer may:

  
	
   

  	
   

  
	
   

  	
  ý

  	
  Allow receipt of Social Security disability benefits to be conclusive
  evidence of disability.

  
	
   

  	
  o

  	
  Allow receipt of any insured disability benefits to be conclusive
  evidence of disability.

  
	
   

  	
   

  
	
   

  	
  o

  	
  Notwithstanding the definition of Disability as described in Plan section 1.08
  receipt of (choose one or both options):

  
	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  Social Security disability
  benefits

  
	
   

  	
   

  	
  o

  	
  any insured disability
  benefits

  
	
   

  	
   

  
	
   

  	
  shall be required as exclusive evidence of disability[Optional]effective as of the date of execution of the
  Adoption Agreement.

  
	
   

  	
   

  
	
  2.

  	
  Employer Contributions
  (3.01(A)).  Unless elected otherwise, the Employer need
  not have net profits to make a contribution under the Plan.

  
	
   

  	
   

  
	
   

  	
  o

  	
  Net profits required

  
	
   

  	
   

  
	
  3.

  	
  Top-Heavy Minimum Allocation
  (3.04(C)).  Unless elected otherwise, the top-heavy
  minimum allocation requirement shall be satisfied by this Plan.

  
	
   

  	
   

  
	
   

  	
  o

  	
  The top-heavy minimum allocation requirement shall be satisfied by the
  other qualified plan, which is not maintained under this basic plan
  document.  Plan Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  4.

  	
  Qualified Replacement Plan
  (3.04(G)).  Unless elected otherwise, the Plan
  Administrator will allocate the transferred amounts under Section 3.04(G) in
  the same manner as the Plan Administrator allocates Employer nonelective
  contributions.  Otherwise (select one):

  
	
   

  	
   

  
	
   

  	
  o

  	
  Such transferred amounts shall be applied toward the Plan’s
  administrative expenses.

  
	
   

  	
  o

  	
  For a 401(k) Plan, such transferred amounts shall be used as matching
  contributions.

  
	
   

  	
   

  
	
  5.

  	
  Suspension of Allocation
  Conditions Under a Nonstandardized Plan (3.06(E)).  Unless
  elected otherwise, the terms of the Plan document shall apply.

  
	
   

  	
   

  
	
   

  	
  o

  	
  Use the Average Benefit Percentage Test described in Code §410(b)(2).

  
	
   

  	
   

  
	
  6.

  	
  Annual Additions (3.14 and
  3.16).  Unless elected otherwise, the terms of this
  plan shall apply.  Otherwise, Annual 

  
	
   

  	
  Additions shall be limited as
  follows:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  7.

  	
  Defined benefit plan fraction
  (3.18(j)).  Unless elected otherwise, Year of Service shall
  mean a Plan Year with at least 1,000 hours of service.

  
	
   

  	
   

  
	
   

  	
  o

  	
  A Year of Service shall mean:

  	
   

  
						

 

22

 

	
  8.

  	
  100% Limitation (3.18(l)).  Unless elected otherwise, for a Standardized Plan, the 100% limitation
  applies in all Limitation Years. 
  Otherwise, the 125% limitation applies and the Plan satisfies the
  extra minimum benefit requirements of Code §416(h) as follows:

  
	
   

  	
   

  
	
   

  	
  o

  	
   

  
	
   

  	
   

  
	
  9.

  	
  “Grossed-Up” Vesting Formula
  (5.03(A)).  Unless elected otherwise the Plan
  Administrator shall apply the standard formula pursuant to the Plan document.

  
	
   

  	
   

  
	
   

  	
  o

  	
  Use modified formula pursuant to the Plan document

  
	
   

  	
   

  
	
  10.

  	
  Time and Method of Forfeiture
  Restoration (5.04(B)).  Unless elected otherwise, the Plan
  Administrator will complete the restoration of forfeitures pursuant to the
  Plan document; otherwise the sources of restoration, and the order of
  priority, shall be as follows (indicate order of priority by number, with one
  (1) being the initial source; use zero (0) if you wish to eliminate a
  source):

  
	
   

  	
   

  
	
   

  	
  o

  	
  The amount, if
  any, of Participant forfeitures the Plan Administrator otherwise would
  allocate under Section 3.05;

  
	
   

  	
  o

  	
  The amount, if
  any, of the Trust Fund net income or gain for the Plan Year; 

  
	
   

  	
  o

  	
  The Employer
  contribution for the Plan Year to the extent made under a discretionary
  formula.

  
	
   

  	
   

  
	
  11.

  	
  Deemed Cash-out of 0% Vested
  Participant (5.04(C)).  Unless elected otherwise, the deemed
  cash-out rule applies to any 0% Vested Participant.

  
	
   

  	
   

  
	
   

  	
  o

  	
  Alternative:

  	
   

  
	
   

  	
   

  
	
  12.

  	
  Qualified Preretirement
  Survivor Annuity (QPSA) (6.04(B)).  Unless elected otherwise, the
  one year of marriage requirement shall apply.

  
	
   

  	
   

  
	
   

  	
  o

  	
  The one year of marriage requirement does not apply.

  
	
   

  	
   

  
	
  13.

  	
  State Law (7.11).  Unless
  elected otherwise, the law of the state of the Employer’s principal place of
  business will determine all questions arising with respect to the provisions
  of the Plan, except to the extent superceded by ERISA or other federal law.

  
	
   

  	
   

  
	
   

  	
  o

  	
  Subject to applicable law, the law of the state of 

  	
   

  	
  shall apply.

  
	
   

  	
   

  
	
  14.

  	
  Beneficiary Designation (8.01).  Unless
  elected otherwise, a divorce decree, or a decree of legal separation, revokes
  the Participant’s designation, if any, of his/her spouse as his/her
  Beneficiary under the Plan unless the decree or a QDRO provides otherwise.
  (Choose all that apply.)

  
	
   

  	
   

  
	
   

  	
  o

  	
  A divorce decree will not revoke a Participant’s designation.

  
	
   

  	
  o

  	
  A decree of legal separation will not revoke a Participant’s
  designation.

  
	
   

  	
   

  
	
  15.

  	
  No Beneficiary
  Designation/Death of Beneficiary (8.02).  Unless
  elected otherwise, the Trustee will pay the Participant’s Vested Account
  Balance in accordance with Section 8.02 of the Plan document.  Alternatively, the order of priority shall
  be as follows:

  
	
   

  	
   

  
	
   

  	
  1.

  	
   

  
	
   

  	
  2.

  	
   

  
	
   

  	
  3.

  	
   

  
	
   

  	
   

  
	
   

  	
  Unless elected otherwise, if the Beneficiary survives the Participant,
  but dies prior to distribution of the Participant’s entire Vested Account
  Balance, the Trustee will pay the Participant’s Vested Account Balance in
  accordance with Section 8.02 of the Plan document.  Alternatively, the Vested Account Balance
  shall be paid as follows:

  
	
   

  	
   

  
	
   

  	
  o

  	
   

  
	
   

  	
  o

  	
   

  
	
   

  	
  o

  	
   

  
						

 

23

 

	
  16.

  	
  Investment in Group Trust Fund
  (10.17).  If this Section is applicable, the
  authorization of this Section applies to the following group trust
  fund(s):

  
	
   

  	
   

  
	
   

  	
  o

  	
   

  
	
   

  	
   

  
	
  17.

  	
  Post Termination Procedure and
  Distribution (13.06(B)).  Unless elected otherwise, the provisions of
  this Section shall apply.

  
	
   

  	
   

  
	
   

  	
  o

  	
  Section 13.06(B) does not apply.

  
	
   

  	
   

  
	
  18.

  	
  Safe Harbor Contributions/ADP test
  safe harbor (14.02(D)(2) and 14.06(E)).  Unless
  elected otherwise, the Plan Administrator must allocate the safe harbor
  contribution to all Participants.

  
	
   

  	
   

  
	
   

  	
  o

  	
  Limit the safe harbor allocation to Nonhighly Compensated Employees
  only.

  
	
   

  	
   

  
	
  19.

  	
  Allocable Income (14.07(C),
  14.08(F), and 14.09(E)).  Unless elected otherwise, for purposes of
  these Sections, allocable income shall not include allocable income for the
  time period between the close of the Plan Year and the distribution date
  (i.e., the “GAP” period).  Otherwise, 

  
	
   

  	
   

  
	
   

  	
  o

  	
  GAP income shall be included for plan years beginning prior to the
  first day of the plan year of adoption of this current Plan document.

  
	
   

  	
   

  
	
  20.

  	
  Calculation of ADP (14.08(A)).  Unless
  elected otherwise, for the first Plan Year the Employer permits elective
  deferrals and the Plan is not a successor plan (as provided in the Code or in
  other applicable guidance), under prior year testing, the prior year ADP for
  the Nonhighly Compensated Group is 3%.

  
	
   

  	
   

  
	
   

  	
  o

  	
  Use the actual first year ADP for the Nonhighly Compensated Group.

  
	
   

  	
   

  
	
  21.

  	
  Calculation of ACP (14.09(A)).  Unless
  elected otherwise, for the first Plan Year the Plan permits matching
  contributions or Employee contributions and the Plan is not a successor plan
  (as defined in the Code or in other applicable guidance), under prior year
  testing, the prior year ACP for the Nonhighly Compensated Group is 3%.

  
	
   

  	
   

  
	
   

  	
  o

  	
  Use the actual first year ACP for the Nonhighly Compensated Group.

  
	
   

  	
   

  
	
  22.

  	
  Hardship Distributions from
  Deferral Contributions Account (14.11(A)(2)).  Unless
  elected otherwise, the Plan does not permit hardship withdrawals of qualified
  matching contributions and qualified nonelective contributions, and any
  earnings on such contributions, credited as of December 31, 1988.

  
	
   

  	
   

  
	
   

  	
  o

  	
  Include the above stated contributions and earnings

  
	
   

  	
  o

  	
  Include the above stated contributions and earnings, but substitute December 31,
  1988 with 

  	
   

  
	
   

  	
   

  	
  (Note:  Date cannot be later
  than the end of the last Plan Year ending before July 1, 1989.)

  

 

24

 

CHECKLIST OF EMPLOYER INFORMATION

AND EMPLOYER ADMINISTRATIVE ELECTIONS

 

	
  Commencing  August 1, 2003

  	
   

  
	
   

  	
   

  	
   

  
	
  The Prototype Plan permits the Employer to make certain administrative
  elections not reflected in the Adoption Agreement. This form lists those
  administrative elections and provides a means of recording the Employer’s
  elections.  This
  checklist is not part of the Plan document.

  
	
   

  
	
  1.

  	
  Employer Information.

  
	
   

  	
  MSC.Software Corporation

  
	
   

  	
  [Employer Name]

  
	
   

  	
  2 MacArthr Place

  	
   

  	
   

  
	
   

  	
  [Physical Address]

  	
   

  	
  [Mailing Address]

  
	
   

  	
  Santa Ana, CA 92707

  	
   

  	
   

  
	
   

  	
  [City, State and Zip Code]

  	
   

  	
  [City, State and Zip Code]

  
	
   

  	
  (714) 540-8900

  	
   

  	
   

  
	
   

  	
  [Telephone Number]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Form of Business.

  
	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  C Corporation

  	
  o

  	
  (b)

  	
  S Corporation

  
	
   

  	
  o

  	
  (c)

  	
  Limited Liability Entity

  	
  o

  	
  (d)

  	
  Sole Proprietorship

  
	
   

  	
   

  	
   

  	
  o

  	
  (1)

  	
  taxed as Corporation

  	
  o

  	
  (e)

  	
  Partnership

  
	
   

  	
   

  	
   

  	
  o

  	
  (2)

  	
  taxed as Partnership

  	
  o

  	
  (f)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Surety bond company:

  	
   

  	
  Surety bond amount: $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Section 1.07(D) –
  §132(f)(4) Compensation.  Amounts described in §132(f)(4) are not
  Elective Contributions until Plan Years beginning on or after January 1,
  2001 unless otherwise indicated.

  
	
   

  	
   

  
	
   

  	
  o

  	
  (b)

  	
  January 1, 2001 shall be replaced with:

  	
   

  
	
   

  	
   

  	
   

  	
  (Note:  effective date can be
  no earlier than January 1, 1998)

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Section 1.07(F) –
  Nondiscriminatory definition of Compensation. 
  When testing
  nondiscrimination under the Plan, the Plan permits the Employer to make
  elections regarding the definition of Compensation.  [Note: This election
  solely is for purposes of nondiscrimination testing.  The election does not affect the Employer’s
  elections under Section 1.07 which apply for purposes of allocating
  Employer contributions and Participant forfeitures.]  (Choose either (a) or (b) of
  each item (1), (2) and (3)).

  
	
   

  	
   

  
	
   

  	
  o

  	
  1(a)

  	
  The Plan will “gross up” Compensation for Elective Contributions.

  
	
   

  	
  o

  	
  1(b)

  	
  The Plan will exclude Elective Contributions.

  
	
   

  	
   

  
	
   

  	
  o

  	
  2(a)

  	
  The Plan will not exclude items excludable under §414(s)

  
	
   

  	
  o

  	
  2(b)

  	
  The Plan will exclude items excludable under §414(s)

  
	
   

  	
   

  
	
   

  	
  o

  	
  3(a)

  	
  The Plan will use Compensation only for the portion of the Plan Year
  the Employee was a Participant (or for which the Plan or 401(k) arrangement
  was in effect).

  
	
   

  	
  o

  	
  3(b)

  	
  The Plan will use Compensation for the entire Plan Year.

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Section 3.02 and 14.02(A) –
  Deferral/Employee contributions commencement dates. 
  Deferral/Employee contributions begin as of the first payroll period
  concurrent with or following (choose as many as apply):

  
	
   

  	
   

  
	
   

  	
  o

  	
  (a)

  	
  the first day of the Plan Year

  
	
   

  	
  o

  	
  (b)

  	
  the first day of the seventh month of the Plan Year

  
	
   

  	
  ý

  	
  (c)

  	
  any date

  
	
   

  	
  o

  	
  (d)

  	
  other:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
																	

 

1

 

	
  7.

  	
  Section 3.02 and 14.02(A) –
  Changing Deferral/Employee contributions.  A
  Participant’s election to change his Deferral/Employee contributions is
  effective the first payroll period concurrent with or following (choose as
  many as apply):

  
	
   

  	
   

  
	
   

  	
  o

  	
  (a)

  	
  the first day of the Plan Year

  
	
   

  	
  o

  	
  (b)

  	
  the first day of the seventh month of the Plan Year

  
	
   

  	
  ý

  	
  (c)

  	
  any date

  
	
   

  	
  o

  	
  (d)

  	
  other:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Section 3.02 and 14.02(A) –
  Terminating Deferral/Employee contributions.  A
  Participant’s election to terminate his Deferral/Employee contributions is
  effective:

  
	
   

  	
   

  
	
   

  	
  o

  	
  (a)

  	
  the first day of the Plan Year

  
	
   

  	
  o

  	
  (b)

  	
  the first day of the seventh month of the Plan Year

  
	
   

  	
  o

  	
  (c)

  	
  as soon as administratively feasible upon providing written notice to
  the Plan Administrator

  
	
   

  	
  o

  	
  (d)

  	
  other:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  9.

  	
  Section 3.02 and 14.02(A) –
  Elective deferrals on bonuses.  A Participant’s election for
  Deferral/Employee contributions will apply to bonuses as follows:

  
	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  does not apply

  
	
   

  	
  o

  	
  (b)

  	
  will apply automatically

  
	
   

  	
  o

  	
  (c)

  	
  participant must make special election

  
	
   

  	
  o

  	
  (d)

  	
  other:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Section 3.02 and 14.02(A) –
  Elective deferrals amounts.  Elective deferrals shall be
  made (select (a) and/or (b) or (c)):

  
	
   

  	
   

  
	
   

  	
  o

  	
  (a)

  	
  in whole percentages

  
	
   

  	
  o

  	
  (b)

  	
  in whole dollar amounts

  
	
   

  	
  o

  	
  (c)

  	
  no restrictions on increments

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Section 3.03 – Matching of
  elective deferral amounts.  Elective deferrals which are
  withdrawn prior to the allocation date:

  
	
   

  	
   

  
	
   

  	
  o

  	
  (a)

  	
  shall be eligible for matching contributions.

  
	
   

  	
  o

  	
  (b)

  	
  shall not be eligible for matching contributions.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  For this purpose, any partial withdrawal will first be
  considered a withdrawal of current elective deferrals.

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  Section 3.04(F) –
  Qualified Nonelective Contributions.  Qualified nonelective
  contributions shall be allocated as follows:

  
	
   

  	
   

  
	
   

  	
  o

  	
  to eligible Participants pro rata in relation to Compensation

  
	
   

  	
  o

  	
  to eligible Participants in the same amount without regard to
  Compensation (flat dollar)

  
	
   

  	
  o

  	
  under the reverse allocation or other similar method (explain):

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  13.

  	
  Section 4.02 – Employee
  contributions (after-tax, voluntary).  Employee contributions shall be made by the
  following method:

  
	
   

  	
   

  
	
   

  	
  o

  	
  (a)

  	
  via payroll deduction

  
	
   

  	
  o

  	
  (b)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  Section 4.04 – Rollover
  contributions.

  
	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  The Plan accepts rollover contributions.

  	
  Describe:

  
	
   

  	
   

  	
   

  	
  ý

  	
  (1)

  	
  From eligible plans (or IRAs holding monies from eligible plans)
  excluding after-tax contributions.

  
	
   

  	
   

  	
   

  	
  ý

  	
  (2)

  	
  From any eligible employee even if not a participant.

  
	
   

  	
  o

  	
  (b)

  	
  The Plan does not accept
  rollover contributions.

  
												

 

2

 

	
  15.

  	
  Section 8.06 – Participant direction of investment/404(c).  The Plan authorizes Participant direction of investment with Trustee
  consent.  If the Trustee permits
  Participant direction of investment, the Employer and the Trustee should
  adopt a policy which establishes the applicable conditions and limitations,
  including whether they intend the Plan to comply with ERISA §404(c).

  
	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  The Plan permits Participant direction of investment and is a 404(c) plan.

  
	
   

  	
  o

  	
  (b)

  	
  The Plan permits Participant direction of investment but is a non-404(c) plan.

  
	
   

  	
  o

  	
  (c)

  	
  The Plan does not permit
  Participant direction of investment.

  
	
   

  	
   

  
	
  16.

  	
  Section 9.04[A] –
  Participant loans.  The Plan Administrator must adopt a written
  loan policy to permit Participant loans.

  
	
   

  	
   

  
	
   

  	
  ý

  	
  (a)

  	
  The Plan permits Participant loans subject to the following conditions:

  
	
   

  	
   

  	
   

  	
  ý

  	
  (1)

  	
  Minimum loan amount: $1,000

  
	
   

  	
   

  	
   

  	
  ý

  	
  (2)

  	
  Maximum number of outstanding
  loans:   2

  
	
   

  	
   

  	
   

  	
  o

  	
  (3)

  	
  Reasons for which a Participant may request a loan:

  
	
   

  	
   

  	
   

  	
  o

  	
  a.

  	
  Any purpose.

  
	
   

  	
   

  	
   

  	
  o

  	
  b.

  	
  Hardship events.

  
	
   

  	
   

  	
   

  	
  o

  	
  c.

  	
  Other:

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  (4)

  	
  Suspension of loan repayments:

  
	
   

  	
   

  	
   

  	
  o

  	
  a.

  	
  Not permitted.

  
	
   

  	
   

  	
   

  	
  o

  	
  b.

  	
  Permitted for non-military leave of absence.

  
	
   

  	
   

  	
   

  	
  o

  	
  c.

  	
  Permitted for military service leave of absence.

  
	
   

  	
   

  	
   

  	
  o

  	
  (5)

  	
  The Participant must be a party in interest.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  (b)

  	
  The Plan does not permit
  Participant loans.

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  Section 11.01 – Life insurance. 
  The Plan with
  Employer approval authorizes the Trustee to acquire life insurance.

  
	
   

  	
   

  
	
   

  	
  o

  	
  (a)

  	
  The Plan will invest in life insurance contracts.

  
	
   

  	
  ý

  	
  (b)

  	
  The Plan will not invest in
  life insurance contracts.

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  Section 14.11(A)(1) – Salary Deferral Limit Following a
  Hardship Distribution.  The IRC section 402(g) special limit
  restriction on salary deferrals made in the year following a hardship
  distribution was lifted by IRS Notice 2002-4 (EGTRRA Technical Corrections)
  and is optional for 401(k) plans that are not safe harbor
  plans.  Safe harbor plans described in
  Code sec. 401(k) (12) or 401(m)(11) that rely on matching contributions to
  meet testing requirements cannot impose the special limit.  Plan section 14.11 describes the limit
  as: The  IRC section 402(g) limit
  applicable for the year following the year of a participant’s hardship
  distribution reduced by salary deferrals made by the participant during the
  year of the hardship distribution.  The
  Plan shall be administered as follows:

  
	
   

  	
   

  
	
   

  	
  o

  	
  (a)

  	
  Impose the special limit as described in the plan. 

  
	
   

  	
  o

  	
  (b)

  	
  Not impose the special limit as described in the plan.

  
	
   

  	
  o

  	
  (c)

  	
  The plan is a safe harbor 401(k) plan and the 402(g) special limit
  cannot be imposed.

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  Control Group/Affiliated Service Group Members.  

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Adopting Plan?

  	
   

  
	
   

  	
  CG

  	
   

  	
  ASG

  	
   

  	
  Member Name

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
   

  	
  ý

  	
   

  	
  o

  	
   

  	
  MSC.Software Sales

  	
   

  	
  ý

  	
   

  	
  o

  	
   

  
	
   

  	
  o

  	
   

  	
  o

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  o

  	
   

  
	
   

  	
  o

  	
   

  	
  o

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  o

  	
   

  
	
   

  	
  o

  	
   

  	
  o

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  o

  	
   

  
	
   

  	
  o

  	
   

  	
  o

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  o

  	
   

  
	
   

  	
   

  
	
  20.

  	
  Additional Information. (e.g. rollover contributions prior to
  participation, in-kind distributions, etc.)

  
	
   

  	
  Loans are available only from a participant’s salary deferral account
  and rollover account.

  
	
   

  	
   

  
	
   

  	
   

  
																	

 

3

 

EGTRRA

AMENDMENT TO THE

BRYAN, PENDLETON, SWATS &
MCALLISTER, LLC

DEFINED CONTRIBUTION PROTOTYPE
PLAN AND TRUST

 

 

ARTICLE I

PREAMBLE

 

	
  1.1

  	
  Adoption and
  effective date of amendment.  This amendment of the plan is adopted to
  reflect certain provisions of the Economic Growth and Tax Relief Reconciliation
  Act of 2001 (“EGTRRA”).  This amendment
  is intended as good faith compliance with the requirements of EGTRRA and is
  to be construed in accordance with EGTRRA and guidance issued thereunder.  Except as otherwise provided, this
  amendment shall be effective as of the first day of the first plan year
  beginning after December 31, 2001. 
  This amendment amends and restates an existing good faith amendment
  implemented for the purposes set forth in this Section 1.1, and
  originally adopted on December 20, 2001.

  
	
   

  	
   

  
	
  1.2

  	
  Adoption by
  prototype sponsor. 
  Except as otherwise provided herein, pursuant to Section 5.01 of
  Revenue Procedure 2000-20 (or pursuant to the corresponding provision in
  Revenue Procedure 89-9 or Revenue Procedure 89-13), the sponsor hereby adopts
  this amendment on behalf of all adopting employers.

  
	
   

  	
   

  
	
  1.3

  	
  Supersession of
  inconsistent provisions. 
  This amendment shall supersede the provisions of the plan to the
  extent those provisions are inconsistent with the provisions of this
  amendment.

  

 

ARTICLE II

ADOPTION AGREEMENT ELECTIONS

	
   

  	
   

  
	
   

  	
  The
  questions in this Article II only need to be completed in order to
  override the default provisions set forth below.  If all of the default provisions will
  apply, then these questions should be skipped and the employer  does not need to execute this amendment.

  
	
   

  	
   

  
	
   

  	
  Unless
  the employer elects otherwise in this Article II, the following defaults
  apply:

  
	
   

  	
  1)

  	
  The
  vesting schedule for matching contributions will be a 6 year graded schedule (if
  the plan currently has a graded schedule that does not satisfy EGTRRA)
  or a 3 year cliff schedule (if the plan currently has a cliff schedule that
  does not satisfy EGTRRA), and such schedule will apply to all matching
  contributions (even those made prior to 2002).

  
	
   

  	
  2)

  	
  Rollovers
  are automatically excluded in determining whether the $5,000 threshold has
  been exceeded for automatic cash-outs (if the plan is subject to the
  qualified joint and survivor annuity rules and provides for automatic
  cash-outs).  This is applied to all
  participants regardless of when the distributable event occurred.

  
	
   

  	
  3)

  	
  The
  suspension period after a hardship distribution is made will be 6 months and
  this will only apply to hardship distributions made after 2001.

  
	
   

  	
  4)

  	
  Catch-up
  contributions will be allowed and, if applicable, will be eligible for
  matching contributions, without regards to the limits set forth in Code section 402(g).

  
	
   

  	
  5)

  	
  For
  target benefit plans, the increased compensation limit of $200,000 will be
  applied retroactively (i.e., to years prior to 2002).

  

 

	
  2.1

  	
  Vesting
  Schedule for Matching Contributions

  
	
   

  	
   

  
	
   

  	
  If there are
  matching contributions subject to a vesting schedule that does not
  satisfy EGTRRA, then unless otherwise elected below, for participants who
  complete an hour of service in a plan year beginning after December 31,
  2001, the following vesting schedule will apply to all matching
  contributions subject to a vesting schedule:

  
	
   

  	
   

  
	
   

  	
  If the plan has
  a graded vesting schedule (i.e., the vesting schedule includes a
  vested percentage that is more than 0% and less than 100%) the following will
  apply:

  

 

	
  Years of vesting service

  	
   

  	
  Nonforfeitable percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
   

  	
  20

  	
  %

  
	
  3

  	
   

  	
   

  	
  40

  	
  %

  
	
  4

  	
   

  	
   

  	
  60

  	
  %

  
	
  5

  	
   

  	
   

  	
  80

  	
  %

  
	
  6

  	
   

  	
   

  	
  100

  	
  %

  

 

	
   

  	
  If the plan does
  not have a graded vesting schedule, then matching contributions will be
  nonforfeitable upon the completion of 3 years of vesting service.

  

 

2

 

	
   

  	
  In lieu of the
  above vesting schedule, the employer elects the following schedule:

  
	
   

  	
  a.

  	
  o

  	
  3 year cliff (a
  participant’s accrued benefit derived from employer matching contributions
  shall be nonforfeitable upon the participant’s completion of three years of
  vesting service).

  	 

	
   

  	
  b.

  	
  o

  	
  6 year graded schedule (20%
  after 2 years of vesting service and an additional 20% for each year thereafter).

  	 

	
   

  	
  c.

  	
  o

  	
  Other (must be
  at least as liberal as a. or the b. above):

  	 

 

	
  Years of vesting service

  	
   

  	
  Nonforfeitable percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  %

  

 

	
   

  	
  The vesting schedule set
  forth herein shall only apply to participants who complete an hour of service
  in a plan year beginning after December 31, 2001, and, unless the option
  below is elected, shall apply to all matching
  contributions subject to a vesting schedule.

  
	
   

  	
  d.

  	
  o

  	
  The vesting schedule will
  only apply to matching contributions made in plan years beginning after  December 31, 2001 (the prior schedule will
  apply to matching contributions made in prior plan years).

  
	
   

  	
   

  
	
  2.2

  	
  Exclusion
  of Rollovers in Application of Involuntary Cash-out Provisions (for profit
  sharing and 401(k) plans only).  If
  the plan is not subject to the qualified joint and survivor annuity rules and
  includes involuntary cash-out provisions, then unless one of the options
  below is elected, effective for distributions made after December 31,
  2001, rollover contributions will be excluded in determining the value of the
  participant’s nonforfeitable account balance for purposes of the plan’s
  involuntary cash-out rules.

  
	
   

  	
  a.

  	
  o

  	
  Rollover
  contributions will not be excluded.

  
	
   

  	
  b.

  	
  o

  	
  Rollover
  contributions will be excluded only with respect to distributions made after 

  (Enter a date no earlier than December 31, 2001).

  	
   

  
	
   

  	
  c.

  	
  o

  	
  Rollover
  contributions will only be excluded with respect to participants who
  separated from service after

  
	
   

  	
   

  	
   

  	
   

  	
  .  (Enter a date.  The date may be earlier than December 31,
  2001.)

  
	
   

  	
   

  
	
  2.3

  	
  Suspension
  period of hardship distributions.  If
  the plan provides for hardship distributions upon satisfaction of the safe
  harbor (deemed) standards as set forth in Treas. Reg. Section 1.401(k)-1(d)(2)(iv),
  then, unless the option below is elected, the suspension period following a
  hardship distribution shall only apply to hardship distributions made after December 31,
  2001.  

  
	
   

  	
   

  	
  o

  	
  With regard to
  hardship distributions made during 2001, a participant shall be prohibited
  from making elective deferrals and employee contributions under this and all
  other plans until the later of January 1, 2002, or  6 months after receipt of distribution.

  
	
   

  	
   

  
	
  2.4

  	
  Catch-up
  contributions (for 401(k) profit sharing plans only): The
  plan permits catch-up contributions and such catch-up contributions are
  eligible for a matching contribution, to the extent applicable and without
  regards to the limits set forth in Code section 402(g).  (Article VI unless one of the options
  below is elected)

  
	
   

  	
   

  	
  o

  	
  The plan does
  not permit catch-up contributions to be made.

  
	
   

  	
   

  	
  o

  	
  The plan permits
  catch-up contributions to be made, but such catch-up contributions are  not eligible
  for a matching contribution.

  
	
   

  	
   

  	
  o

  	
  The plan permits
  catch-up contributions to be made, but only that portion of a catch-up
  contribution which does not exceed the limits set forth in Code section 402(g) shall
  be eligible for a matching contribution.

  
	
   

  	
   

  	
  o

  	
  Other:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  2.5

  	
  For
  target benefit plans only: The increased compensation limit
  ($200,000 limit) shall apply to years prior to 2002 unless the option below
  is elected.

  
	
   

  	
   

  	
  o

  	
  The increased
  compensation limit will not apply to years prior to 2002.

  
								

 

ARTICLE III

VESTING OF MATCHING CONTRIBUTIONS

 

	
  3.1

  	
  Applicability.  This Article shall apply to
  participants who complete an Hour of Service after December 31, 2001,
  with respect to accrued benefits derived from employer matching contributions
  made in plan years beginning after December 31, 2001.  Unless otherwise elected by the employer in
  Section 2.1 above, this Article shall also apply to all such
  participants with respect to accrued benefits derived from employer matching
  contributions made in plan years beginning prior to January 1, 2002.

  

 

3

 

	
  3.2

  	
  Vesting schedule.  A participant’s accrued benefit derived
  from employer matching contributions shall vest as provided in Section 2.1
  of this amendment.

  

 

ARTICLE IV

INVOLUNTARY CASH-OUTS

 

	
  4.1

  	
  Applicability
  and effective date. 
  If the plan provides for involuntary cash-outs of amounts less than
  $5,000, then unless otherwise elected in Section 2.2 of this amendment,
  this Article shall apply for distributions made after December 31,
  2001, and shall apply to all participants. 
  However, regardless of the preceding, this Article shall not
  apply if the plan is subject to the qualified joint and survivor annuity
  requirements of Sections 401(a)(11) and 417 of the Code.

  
	
   

  	
   

  
	
  4.2

  	
  Rollovers
  disregarded in determining value of account balance for involuntary
  distributions.  For
  purposes of the Sections of the plan that provide for the involuntary
  distribution of vested accrued benefits of $5,000 or less, the value of a
  participant’s nonforfeitable account balance shall be determined without
  regard to that portion of the account balance that is attributable to
  rollover contributions (and earnings allocable thereto) within the meaning of
  Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16) of
  the Code.  If the value of the participant’s
  nonforfeitable account balance as so determined is $5,000 or less, then the
  plan shall immediately distribute the participant’s entire nonforfeitable
  account balance.

  

 

ARTICLE V

HARDSHIP DISTRIBUTIONS

 

	
  5.1

  	
  Applicability
  and effective date. 
  If the plan provides for hardship distributions upon satisfaction of
  the safe harbor (deemed) standards as set forth in Treas. Reg. Section 1.401(k)-1(d)(2)(iv) then
  this Article shall apply for calendar years beginning after 2001.

  
	
   

  	
   

  
	
  5.2

  	
  Suspension
  period following hardship distribution.  A participant who receives a distribution
  of elective deferrals after December 31, 2001, on account of hardship
  shall be prohibited from making elective deferrals and employee contributions
  under this and all other plans of the employer for 6 months after receipt of
  the distribution.  Furthermore, if
  elected by the employer in Section 2.3 of this amendment, a participant
  who receives a distribution of elective deferrals in calendar year 2001 on
  account of hardship shall be prohibited from making elective deferrals and
  employee contributions under this and all other plans until the later of January 1,
  2002, or 6 months after receipt of the distribution.

  

 

ARTICLE VI

CATCH-UP CONTRIBUTIONS

 

Catch-up
Contributions.  Unless
otherwise elected in Section 2.4 of this amendment, all employees who are
eligible to make elective deferrals under this plan and who have attained age
50 before the close of the plan year shall be eligible to make catch-up
contributions in accordance with, and subject to the limitations of, Section 414(v) of
the Code.  Such catch-up contributions
shall not be taken into account for purposes of the provisions of the plan
implementing the required limitations of Sections 402(g) and 415 of the
Code.  Unless otherwise elected in Section 2.4
of this amendment, and to the extent applicable, catch-up contributions will be
eligible for a matching contribution under the plan.  The plan shall not be treated as failing to
satisfy the provisions of the plan implementing the requirements of Section 401(k)(3),
401(k)(11), 401(k)(12), 410(b), or 416 of the Code, as applicable, by reason of
the making of such catch-up contributions.

 

ARTICLE VII

INCREASE IN COMPENSATION LIMIT

 

Increase in
Compensation Limit. 
The annual compensation of each participant taken into account in
determining allocations 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.  Annual compensation 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).  If this is a target benefit plan, then except
as otherwise elected in Section 2.5 of this amendment, for purposes of
determining benefit accruals in a plan year beginning after December 31,
2001, compensation for any prior determination period shall be limited to
$200,000.  The cost-of-living adjustment
in effect for a calendar year applies to annual compensation for the
determination period that begins with or within such calendar year.

 

ARTICLE VIII

PLAN LOANS

 

Plan loans for
owner-employees or shareholder-employees.  If the plan permits loans to be made to
participants, then effective for plan loans made after December 31, 2001,
plan provisions prohibiting loans to any owner-employee or shareholder-employee
shall cease to apply.

 

4

 

ARTICLE IX

LIMITATIONS ON CONTRIBUTIONS (IRC SECTION 415 LIMITS)

 

	
  9.1

  	
  Effective date.  This Section shall be effective for
  limitation years beginning after December 31, 2001.

  
	
   

  	
   

  
	
  9.2

  	
  Maximum annual
  addition.  Except to
  the extent permitted under Article XIV of this amendment and Section 414(v) of
  the Code, if applicable, the annual addition that may be contributed or
  allocated to a participant’s account under the plan for any limitation year
  shall not exceed the lesser of:

  
	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  $40,000, as
  adjusted for increases in the cost-of-living under Section 415(d) of
  the Code, or

  
	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  100 percent of
  the participant’s compensation, within the meaning of Section 415(c)(3) of
  the Code, for the limitation year.

  
	
   

  	
   

  
	
   

  	
  The compensation
  limit referred to in b. shall not apply to any contribution for medical
  benefits after separation from service (within the meaning of Section 401(h) or
  Section 419A(f)(2) of the Code) which is otherwise treated as an
  annual addition.

  

 

ARTICLE X

MODIFICATION OF TOP-HEAVY RULES

 

	
  10.1

  	
  Effective date.  This Article shall apply for purposes
  of determining whether the plan is a top-heavy plan under Section 416(g) of
  the Code for plan years beginning after December 31, 2001, and whether
  the plan satisfies the minimum benefits requirements of Section 416(c) of
  the Code for such years.  This Article amends
  the top-heavy provisions of the plan.

  
	
   

  	
   

  
	
  10.2

  	
  Determination of
  top-heavy status.

  
	
   

  	
   

  
	
  10.2.1

  	
  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 $130,000 (as adjusted under Section 416(i)(1) of
  the Code for plan years beginning after December 31, 2002), a 5-percent
  owner of the employer, or a 1-percent owner of the employer having annual compensation
  of more than $150,000.  For this
  purpose, annual compensation means compensation within the meaning of Section 415(c)(3) of
  the Code.  The determination of who is
  a key employee will be made in accordance with Section 416(i)(1) of
  the Code and the applicable regulations and other guidance of general
  applicability issued thereunder.

  
	
   

  	
   

  
	
  10.2.2

  	
  Determination of
  present values and amounts. 
  This Section 10.2.2 shall apply for purposes of determining the
  present values of accrued benefits and the amounts of account balances of
  employees as of the determination date.

  
	
   

  	
   

  
	
   

  	
  a.

  	
  Distributions
  during year ending on the determination date.  The present values of accrued benefits and
  the amounts of account balances of an employee as of the determination date shall
  be increased by the distributions made with respect to the employee under the
  plan and any plan aggregated with the plan under Section 416(g)(2) of
  the Code during the 1 -year period ending on the determination date.  The preceding sentence shall also apply to
  distributions under a terminated plan which, had it not been terminated,
  would have been aggregated with the plan under Section 416(g)(2)(A)(i) of
  the Code.  In the case of a
  distribution made for a reason other than separation from service, death, or
  disability, this provision shall be applied by substituting “5-year period”
  for “1-year period.”

  
	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Employees not
  performing services during year ending on the determination date.  The accrued benefits and accounts of any
  individual who has not performed services for the employer during the 1-year
  period ending on the determination date shall not be taken into account.

  
	
   

  	
   

  
	
  10.3

  	
  Minimum
  benefits.

  
	
   

  	
   

  
	
  10.3.1

  	
  Matching
  contributions. 
  Employer matching contributions shall be taken into account for purposes
  of satisfying the minimum contribution requirements of Section 416(c)(2) of
  the Code and the plan.  The preceding
  sentence shall apply with respect to matching contributions under the plan
  or, if the plan provides that the minimum contribution 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 actual contribution percentage test and other requirements of
  Section 401(m) of the Code.

  

 

5

 

	
  10.3.2

  	
  Contributions
  under other plans. 
  The employer may provide, in an addendum to this amendment, that the
  minimum benefit requirement shall be met in another plan (including another
  plan that consists solely of a cash or deferred arrangement which meets the
  requirements of Section 401(k)(12) of the Code and matching
  contributions with respect to which the requirements of Section 401(m)(11)
  of the Code are met).  The addendum
  should include 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.

  

 

ARTICLE XI

DIRECT ROLLOVERS

 

	
  11.1

  	
  Effective date.  This Article shall apply to
  distributions made after December 31, 2001.

  
	
   

  	
   

  
	
  11.2

  	
  Modification of
  definition of eligible retirement plan.  For purposes of the direct rollover
  provisions of the plan, an eligible retirement plan shall also mean an annuity
  contract described in Section 403(b) of the Code and an eligible
  plan under Section 457(b) of the Code 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 Section 414(p) of the Code.

  
	
   

  	
   

  
	
  11.3

  	
  Modification of
  definition of eligible rollover distribution to exclude hardship
  distributions.  For
  purposes of the direct rollover provisions of the plan, any amount that is
  distributed on account of hardship shall not be an eligible rollover
  distribution and the distributee may not elect to have any portion of such a
  distribution paid directly to an eligible retirement plan.

  
	
   

  	
   

  
	
  11.4

  	
  Modification of
  definition of eligible rollover distribution to include after-tax employee
  contributions.  For
  purposes of direct rollover provisions in the plan, a portion of a
  distribution shall not fail to be an eligible rollover distribution merely
  because the portion consists of after-tax employee contributions which are
  not includible in gross income. 
  However, such portion may be transferred only to an individual
  retirement account or annuity described in Section 408(a) or (b) of
  the Code, or to a qualified defined contribution plan described in Section 401
  (a) or 403 (a) of the Code that agrees to separately account for
  amounts so transferred, 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.

  

 

ARTICLE XII

ROLLOVERS FROM OTHER PLANS

 

Rollovers from
other plans.  The
employer, operationally and on a nondiscriminatory basis, may limit the source
of rollover contributions that may be accepted by this plan.

 

ARTICLE XIII

REPEAL OF MULTIPLE USE TEST

 

Repeal of Multiple
Use Test.  The multiple
use test described in Treasury Regulation Section 1.401(m)-2 and the plan
shall not apply for plan years beginning after December 31, 2001.

 

ARTICLE XIV

ELECTIVE DEFERRALS

 

	
  14.1

  	
  Elective
  Deferrals - Contribution Limitation.  No participant shall be permitted to have
  elective deferrals made under this plan, or any other qualified plan
  maintained by the employer during any taxable year, in excess of the dollar
  limitation contained in Section 402(g) of the Code in effect for
  such taxable year, except to the extent permitted under Article VI of
  this amendment and Section 414(v) of the Code, if applicable.

  
	
   

  	
   

  
	
  14.2

  	
  Maximum Salary
  Reduction Contributions for SIMPLE plans.  If this is a SIMPLE 401 (k) plan, then
  except to the extent permitted under Article VI of this amendment and Section 414(v) of
  the Code, if applicable, the maximum salary reduction contribution that can
  be made to this plan is the amount determined under Section 408(p)(2)(A)(ii) of
  the Code for the calendar year.

  

 

ARTICLE XV  

SAFE HARBOR PLAN PROVISIONS

 

Modification of
Top-Heavy Rules.  The
top-heavy requirements of Section 416 of the Code and the plan shall not
apply in any year beginning after December 31, 2001, in which the plan
consists solely of a cash or deferred arrangement which meets the requirements
of Section 401(k)(12) of the Code and matching contributions with respect
to which the requirements of Section 401(m)(11) of the Code are met.

 

6

 

ARTICLE XVI 

DISTRIBUTION UPON SEVERANCE OF EMPLOYMENT

 

	
  16.1

  	
  Effective date.  This Article shall apply for
  distributions and transactions made after December 31, 2001, regardless
  of when the severance of employment occurred.

  
	
   

  	
   

  
	
  16.2

  	
  New
  distributable event. 
  A participant’s elective deferrals, qualified nonelective
  contributions, qualified matching contributions, and earnings attributable to
  these contributions shall be distributed on account of the participant’s severance
  from employment.  However, such a
  distribution shall be subject to the other provisions of the plan regarding
  distributions, other than provisions that require a separation from service
  before such amounts may be distributed.

  

 

	
  Except with
  respect to any election made by the employer in Article II, this
  amendment is hereby adopted by the prototype sponsor on behalf of all
  adopting employers on August 8, 2002.

  
	
   

  
	
  Sponsor Name:

  	
  
  Bryan, Pendleton, Swats &
  McAllister, LLC

  

  	 

	
   

  	
   

  	 

	
  By:

  	
  
   

  

  	 

				

 

NOTE: The employer only needs to execute this amendment if an election has
been made in Article II of this amendment.

 

This amendment has been
executed this        day
of                                       ,              .

 

	
  Name of
  Employer:

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  EMPLOYER

  	
   

  
	
   

  
	
  Name of Plan:

  	
   

  	
   

  
					

 

7Exhibit 10.18

 

THE MSC.SOFTWARE CORPORATION

 

Supplemental Retirement and Deferred Compensation
Plan

 

TABLE OF CONTENTS

 

	
  ARTICLE I
  - INTRODUCTION

  	
  1

  
	
   

  	
   

  
	
  ARTICLE II
  - DEFINITIONS

  	
  1

  
	
   

  	
   

  
	
  ARTICLE III
  - ELIGIBILITY

  	
  3

  
	
  3.1  General Rules

  	
  3

  
	
  3.2  Level A Supplemental Benefit

  	
  3

  
	
  3.3  Level B Supplemental Benefit

  	
  3

  
	
  3.4  Deferral Benefit

  	
  4

  
	
   

  	
   

  
	
  ARTICLE IV
  - BENEFITS

  	
  4

  
	
  4.1  Level A Supplemental Benefit

  	
  4

  
	
  4.2  Level B Supplemental Benefit

  	
  4

  
	
  4.3  Deferral Benefit

  	
  4

  
	
  4.4  Vesting

  	
  5

  
	
   

  	
   

  
	
  ARTICLE V
  - PARTICIPANT ACCOUNTS

  	
  5

  
	
  5.1  Establishment of Accounts

  	
  5

  
	
  5.2  Credits, Charges and Expenses

  	
  5

  
	
  5.3  Earnings Tied to Investment Vehicles

  	
  5

  
	
  5.4  Account Statements

  	
  5

  
	
   

  	
   

  
	
  ARTICLE VI
  - DISTRIBUTIONS

  	
  6

  
	
  6.1  Hardship Distributions

  	
  6

  
	
  6.2  Pre-Retirement Deferral Benefit Distributions

  	
  6

  
	
  6.3  Death Distributions

  	
  6

  
	
  6.4  Termination and Retirement Distributions

  	
  7

  
	
  6.5  Cash Payments Only

  	
  7

  
	
   

  	
   

  
	
  ARTICLE VII
  - ADMINISTRATION

  	
  7

  
	
  7.1  Plan Administrator

  	
  7

  

 

1

 

	
  7.2  Amendment and Termination

  	
  7

  
	
  7.3  Indemnification

  	
  8

  
	
  7.4  Claims Procedure

  	
  8

  
	
   

  	
   

  
	
  ARTICLE VIII
  - FUNDING

  	
  8

  
	
  8.1  Funding

  	
  8

  
	
  8.2  Nonalienation

  	
  8

  
	
  8.3  Limitation of Rights

  	
  9

  
	
  8.4  Governing Law

  	
  9

  
	
   

  	
   

  
	
  APPENDIX
  A

  	
   

  

 

2

 

The MSC.Software Corporation

 

SUPPLEMENTAL RETIREMENT

AND

DEFERRED COMPENSATION PLAN

 

Effective as of January 1, 1994

 

 

The MSC.Software Corporation

Supplemental Retirement and Deferred Compensation
Plan

 

ARTICLE I

INTRODUCTION

 

The MSC.Software Corporation hereby establishes The
MSC.Software Corporation Supplemental Retirement and Deferred Compensation Plan
effective as of January 1, 1994, for the purpose of providing certain of
its employees with the opportunity to defer the receipt of compensation.  The MSC.Software Corporation intends to
maintain this plan primarily for the purpose of providing deferred compensation
for a select group of management or highly compensated employees within the
meaning of §§201(2), 301(a)(3) and 401(a)(1) of the Employee
Retirement Income Security Act of 1974, as amended.  The provisions of this plan, including any
appendices that may be attached, shall be interpreted in a manner consistent
with these purposes and intentions.  This
Plan is the exclusive arrangement under which nonqualified deferred
compensation is provided to the employees of MSC.Software Corporation.

 

ARTICLE II

DEFINITIONS

 

The terms set forth below have the indicated meanings
unless a contrary meaning is plainly intended by the context.

 

2.1                           Account
means the total of all Level A Supplemental Benefits, Level B Supplemental
Benefits and Elective Deferral Benefits credited to a Participant under Article IV,
as appropriately adjusted for earnings and distributions.

 

2.2                           Beneficiary
means the individual(s) or entity designated by a Participant (or otherwise
under this section) to receive any benefit payable upon the death of a
Participant or Beneficiary.  A
Beneficiary designation must be signed by the Participant and delivered to the Plan
Administrator on such form as specified by the Plan Administrator.  In the absence of a valid or effective
Beneficiary designation, the Beneficiary will be the Participant’s surviving
spouse, or if there is no surviving spouse, the Participant’s estate.  The spouse of a married Participant must
consent irrevocably in writing if, while married to the spouse, the Participant
designates a beneficiary other than the spouse.

 

2.3                           Board
means the Board of Directors of the Company.

 

2.4                           Code
means the Internal Revenue Code of 1986, as amended.

 

A-1

 

2.5                           Company
means The MSC.Software Corporation, a corporation organized under the laws of
the state of Delaware, any successor of The MSC.Software Corporation, and any
affiliate thereto designated by the Board as a participating employer.

 

2.6                           Compensation
Limitation means the annual limitation on compensation, as adjusted,
prescribed under Code §401(a)(17).

 

2.7                           Deferral
Agreement means an agreement entered into by a Participant and the Company
to reduce the Participant’s Deferral Compensation for a specific period and
contribute such amounts to the Plan, pursuant to Section 4.3.

 

2.8                           Deferral
Benefit means an amount deferred pursuant to a Deferral Agreement.

 

2.9                           Deferral
Compensation means “compensation” as defined under the Profit Sharing Plan
for purposes of determining a Participant’s 401(k) contribution under such
plan, computed (i) without regard to the Compensation Limitation and (ii) before
deduction for Deferral Benefits.

 

2.10                    Disability
means “disability” (or similar term) as defined in the Company’s long-term
disability program and which results in payments to the Participant under such
program.

 

2.11                    Early
Retirement Age means age 55 with 10 years of Service.

 

2.12                    Eligible
Employee means an Employee who meets the eligibility requirements set forth
under Section 3.1.

 

2.13                    Employee
means a common law employee of the Company.

 

2.14                    ERISA
means the Employee Retirement Income Security Act of 1974, as amended.

 

2.15                    Excess
Benefit Percentage means that percentage applied to the Participant’s
Profit Sharing Compensation in excess of the social security wage base when
determining the Participant’s allocation for the Plan Year under the Profit
Sharing Plan.

 

2.16                    Level
A Supplemental Benefit means a benefit provided under Section 4.1.

 

2.17                    Level
B Supplemental Benefit means a benefit provided under Section 4.2.

 

2.18                    Participant
means an Eligible Employee or a person with an Account balance.

 

A-1

 

2.19                    Plan
means The MSC.Software Corporation Supplemental Retirement and Deferred
Compensation Plan, as set forth in this document, as it may be amended.

 

2.20                    Plan
Administrator means the administrator of the Plan as described in Section 7.1.

 

2.21                    Plan
Year means the calendar year.

 

2.22                    Profit
Sharing Compensation means “compensation” as defined under the Profit
Sharing Plan for purposes of determining a Participant’s allocation of the
Company’s profit sharing contribution under such plan for the Plan Year, computed
(i) without regard to the Compensation Limitation and (ii) before
deduction for Deferral Benefits.

 

2.23                    Profit
Sharing Plan means The MSC.Software Corporation Profit Sharing Plan, an
employee pension benefit plan qualified (or intended to qualify) under Code
§401(a).

 

2.24                    Retirement
Age means age 65.

 

2.25                    Year
of Service means, with respect to a Participant, a Year of Service as
defined in the Profit Sharing Plan.

 

ARTICLE III

ELIGIBILITY

 

3.1                           General
Rules.  An Employee shall be eligible
for benefits under the Plan as an Eligible Employee if (i) his Profit
Sharing Compensation for a Plan Year is expected to exceed the Compensation
Limit and (ii) he is a member of a select group of management or highly
compensated employees as described under §§201(2), 301(a)(3) and 401(a)(1) of
ERISA.  The Plan Administrator may,
however, notify any Employee in writing he shall not be an Eligible Employee,
and such Employee shall be treated as not having met the requirements of this
paragraph.  An Eligible Employee shall be
eligible only for those benefits for which he qualifies as provided in Sections
3.2, 3.3 and 3.4., and only for the period he is an Eligible Employee.

 

3.2                           Level
A Supplemental Benefit.  An Eligible
Employee shall be eligible for a Level A Supplemental Benefit under Section 4.1
provided he (i) is eligible for a profit sharing allocation under the
Profit Sharing Plan, (ii) is an Employee on the last day of the Plan Year
and (iii) has been designated in writing by the Plan Administrator as
being eligible for a Level A Supplemental Benefit.

 

3.3                           Level
B Supplemental Benefit.  An Eligible
Employee shall be eligible for a Level B Supplemental Benefit under Section 4.2
provided he (i) is eligible for a profit

 

A-1

 

sharing allocation under the Profit Sharing Plan, (ii) is
an Employee on the last day of the Plan Year and (iii) has not been
designated in writing by the Plan Administrator as being eligible for a Level A
Supplemental Benefit.

 

3.4                           Deferral
Benefit.  Any Eligible Employee shall
be eligible for a Deferral Benefit under Section 4.3 provided he also is
eligible to make a 401(k) deferral election under the Profit Sharing Plan.

 

ARTICLE IV

BENEFITS

 

4.1                           Level
A Supplemental Benefit.  A
Participant eligible for a Level A Supplemental Benefit for a Plan Year shall
be credited with an amount equal to (i) 133-1/3% of his Excess Benefit
Percentage multiplied by his Profit Sharing Compensation, minus (ii) his
Excess Benefit Percentage multiplied by the amount of compensation actually
taken into account for purposes of computing his allocation under the Profit
Sharing Plan.

 

4.2                           Level
B Supplemental Benefit.  A
Participant eligible for a Level B Supplemental Benefit for a Plan Year shall
be credited with an amount equal to his Excess Benefit Percentage multiplied by
the difference between (i) his Profit Sharing Compensation and (ii) the
amount of compensation actually taken into account for purposes of computing
his allocation under the Profit Sharing Plan.

 

4.3                           Deferral
Benefit.

 

(a)                              General Rule.  Any
Eligible Employee may elect to defer the receipt of up to 40% of his Deferral
Compensation described in paragraph (b), that otherwise would be paid to the
Employee as salary, a bonus or commissions, under a Deferral Agreement.  Amounts deferred under this subsection shall
be credited to the Participant’s Account within 30 days of the date the amount
would have been paid to the Participant’s Account but for the Participant’s
deferral election.

 

(b)                             Deferral Agreement.  A
Participant making an election to defer under subsection (a) shall
enter into a deferral agreement to defer the receipt of any Deferral
Compensation.  The Company shall withhold
amounts deferred by the Participant in accordance with the Deferral
Agreement.  A Deferral Agreement must be
made, on such form and in such manner as prescribed by the Plan Administrator,
before the first day of the Plan Year for which the Deferral Compensation to be
deferred is to be earned, except that an individual who becomes eligible to
make a deferral for the first time shall be permitted, within the 30-day period
that begins on the day the individual first became eligible, to make an
election to defer Deferral Compensation that will be earned after the effective
date of such election.  A Deferral
Agreement must be contemplated to defer the receipt of at least $4,000 of
Deferral Compensation.  A Deferral
Agreement shall be

 

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effective for one Plan Year and shall be irrevocable,
except that a Participant may terminate a Deferral Agreement prospectively if
he can establish the existence of a hardship as described in Section 6.1.  A Deferral Agreement shall cease to be
effective immediately upon the Participant’s termination of employment with the
Company (other then by reason of the Participant’s death), and accordingly
shall not be effective for Deferral Compensation paid thereafter.  A Deferral Agreement for a Participant who
has incurred a Disability will continue in effect only so long as the
Participant continues to receive Deferral Compensation from regular
payroll.  At the time a Participant
enters into a Deferral Agreement, he shall elect the time of distribution (as
provided under Section 6.2) of Deferral Benefits attributable to the
Deferral Agreement for that Plan Year.

 

4.4                           Vesting.  A Participant’s Account shall be fully vested
at all times.

 

ARTICLE V

PARTICIPANT ACCOUNTS

 

5.1                           Establishment
of Accounts.  The Plan Administrator
shall establish and maintain an Account on behalf of each Participant.  Such Accounts will exist primarily for
accounting purposes and will not restrict the operation of the Plan or require
separate earmarked assets to be allocated to any Account.  The establishment of an Account will not give
any Participant the right to receive any assets held by the Company in
connection with the Plan or otherwise.

 

5.2                           Credits,
Charges and Expenses.  The Plan
Administrator will credit to a Participant’s Account the amount of any benefit
earned by the Participant under Article IV as of the date required under Article IV.  Amounts credited to an Account which relate
to a Deferral Benefit for a particular Plan Year shall be accounted for
separately from any other amount in the Account.  Expenses incurred in connection with the
administration of the Plan may, at the discretion of the Company, be charged to
Participant Accounts on any reasonable basis as determined by the Plan
Administrator.

 

5.3                           Earnings
Tied to Investment Vehicles. 
Earnings and losses shall be credited or charged, as the case may be, on
the same basis as that of an investment vehicle (e.g.
mutual fund) selected by the Participant from a group of investment vehicles
designated by the Plan Administrator in advance.  The Plan Administrator may change
periodically the number, identity or composition of the designated investment
vehicles in such manner as the Plan Administrator deems appropriate.  The Plan Administrator may credit earnings to
an Account by applying a designated investment vehicle’s actual rate of return,
whether or not any specified assets were actually invested in such designated
investment vehicle.

 

5.4                           Account
Statements.  The Plan Administrator
shall provide a statement of each Participant’s Account as soon as is practicable
after the end of each calendar quarter. 
Neither the Company nor the Plan Administrator to any extent warrants,
guarantees or

 

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represents that the value of any Participant’s Account
at any time will equal or exceed the amount previously allocated or contributed
to the Account.

 

ARTICLE VI

DISTRIBUTIONS

 

6.1                           Hardship
Distributions.

 

(a)                              General Rule.  A
Participant who is not eligible for a distribution under Sections 6.2, 6.3 or
6.4, but who qualifies for a hardship distribution, may obtain a hardship
distribution of any portion of his Account. 
The Participant qualifies for a hardship distribution if he has
experienced an unforeseeable and unanticipated emergency caused by an event
beyond his control, and which will result in severe financial hardship to the
Participant if a distribution is not permitted. 
Hardship requests will be evaluated by the Plan Administrator in
accordance with the terms of Treasury Regulation §1.457-2(h)(4).  The amount of any hardship distribution shall
not exceed the amount required to meet the hardship, including any taxes or
penalties due on the distribution.

 

(b)                             Procedures.  To obtain
a hardship distribution the Participant must submit a written request to the
Plan Administrator on such form and in such manner as the Plan Administrator
prescribes.  The request must (i) certify
as to the hardship condition and the severe financial need and (ii) state
whether the Participant requests a withdrawal of all or a portion of his
Account to meet the hardship.  The
Company shall terminate a Participant’s existing Deferral Agreement upon
approving the Participant’s hardship distribution.  The Participant may make a new Deferral
Agreement for the succeeding Plan Year, subject to the generally applicable
provisions of the Plan.  A hardship
distribution shall be made in a single sum cash payment as soon as is
practicable after the Plan Administrator approves the hardship request.

 

6.2                           Pre-Retirement
Deferral Benefit Distributions.  The portion
of a Participant’s Account attributable to Deferral Benefits shall be
distributed to the Participant in a single sum during the 30-day period
beginning on any anniversary (as elected by the Participant under Section 4.3(b))
of the effective date of the Deferral Agreement pursuant to which the Deferral
Benefit was deferred, provided that such anniversary occurs no earlier than the
fifth, and no later than the tenth, anniversary of the effective date of the
Deferral Agreement.

 

6.3                           Death
Distributions.  The Account of a
deceased Participant shall be distributed to the Participant’s Beneficiary in a
single sum as soon as is practicable after the Participant’s death, but no
earlier than 60 days after the Participant’s death.  The Plan Administrator may require reasonable
evidence of the Participant’s death (e.g., a death
certificate) from the Beneficiary before distribution.  Should the Participant’s Beneficiary not be
the Participant’s spouse, the Plan Administrator shall make reasonable efforts
to notify the Participant’s surviving spouse, if any, of an anticipated
distribution under this

 

A-1

 

section.  Within
60 days of such notification, the surviving spouse must either (i) file an
action with a competent court for a determination of his or her rights in the
Participant’s Account (in which case the Plan Administrator shall withhold
distribution of the Account pending the resolution of the matter by settlement
or court order) or (ii) enter into a binding agreement with the
Participant’s Beneficiary (in which case the Account shall be distributed
pursuant to the agreement).  If the
surviving spouse fails to satisfy the preceding sentence, the Account shall be
distributed to the Participant’s Beneficiary upon expiration of the 60-day
notification period, and the Plan shall have no further liability with respect
to the Participant’s Account.  The Plan
Administrator shall have no duty to notify any former spouse of the Participant
of the Participant’s death, though the procedures otherwise applicable to a
surviving spouse will be applied to a surviving former spouse during the 60-day
period beginning on the Participant’s death.

 

6.4                           Termination
and Retirement Distributions.  A
Participant’s Account shall be distributed in a single sum during the 60-day
period commencing on the Participant’s termination of employment with the
Company (including by reason of retirement, but not by reason of death).  If a January 1 falls within such 60-day
period, then such distribution shall not occur earlier than such January 1.

 

6.5                           Cash
Payments Only.  All distributions
under the Plan shall be made in cash by check.

 

ARTICLE VII

ADMINISTRATION

 

7.1                           Plan
Administrator.   The Board shall appoint a committee of one or
more individuals to be the “plan administrator” within the meaning of ERISA
§3(16)(A).  The Plan Administrator shall
have sole authority to control and manage the operation and administration of
the Plan and have all powers authority and discretion necessary or appropriate
to carry out the Plan provisions, and to interpret and apply the terms of the
Plan to particular cases or circumstances. 
All decisions, determinations and interpretations of the Plan
Administrator will be binding on all interested parties, subject to the claims
and appeal procedures necessary to satisfy the minimum standard of ERISA §503,
and will be given the maximum deference allowed by law.  The Plan Administrator may delegate in
writing its responsibilities.  Plan
Administrator members who are Participants will abstain from voting on any Plan
matters that relate primarily to themselves or that would cause them to be in
constructive receipt of amounts credited to their respective Deferral
Account.  The Board may identify in
writing one or more individuals to serve as a temporary replacement of any
abstaining Plan Administrator member.

 

7.2                           Amendment
and Termination.   The Board, by resolution or written consent,
may amend all or any provision of the Plan, and may terminate the Plan in its
entirety, at any time and for any reason. 
No amendment or termination of the Plan will reduce any

 

A-1

 

Participant’s Account as of the effective date of such
amendment or termination.  Any amendment
which substantially revises the manner in which a Participant’s Account will
earn interest shall become effective no earlier than 30 days after the
Participant has been notified in writing of the change.

 

7.3                           Indemnification.  The Company will and hereby does
indemnify and hold harmless any of its employees, officers, directors or
members of the Plan Administrator who have fiduciary or administrative
responsibilities with respect to the Plan from and against any and all losses,
claims, damages, expenses, and liabilities (including reasonable attorneys’
fees and amounts paid, with the approval of the Board, in settlement of any
claim) arising out of or resulting from the implementation of a duty, act or
decision with respect to the Plan, so long as such duty, act or decision does
not involve gross negligence or willful misconduct on the part of any such
individual.

 

7.4                           Claims
Procedure.   A Participant or his beneficiary (the “Claimant”)
may file a written claim for benefits under the Plan with the Plan
Administrator.  Within 60 days of the
filing of the claim, the Plan Administrator shall notify the Claimant of the
Plan Administrator’s decisions whether to approve the claim.  Such notice shall include specific reasons
for any denial of the claim.  Within 60
days of the date the Claimant was notified of the denial of a claim, the
Claimant may appeal the Plan Administrator’s decision by making a written
submission containing any pertinent information.  Any decision not appealed within such 60-day
period shall be final, binding and conclusive. 
The Plan Administrator shall receive information submitted with an
appeal and render a decision within 60 days of the submission of the
appeal.  If it is not feasible for the
Plan Administrator to render a decision on an appeal within the prescribed 60-day
period, the period may be extended to a 120-day period.

 

ARTICLE VIII

MISCELLANEOUS

 

8.1                           Funding.  The Company may, but is not required to,
earmark a portion of its general assets as assets which may be used to satisfy
the Company’s liability to pay benefits with respect to a Participant’s
Account.  Any such earmarked assets shall
at all times remain part of the Company’s general assets and be subject to the
claims of the Company’s general creditors. 
Participants and Beneficiaries shall have no right against the Company
with respect to the payment of any portion of the Participant’s Account, except
as a general unsecured creditor of the Company.

 

8.2                           Nonalienation.

 

(a)                              General Rules.  No
benefit or interest of any Participant (including his spouse and Beneficiary)
under the Plan will be subject to assignment, alienation, anticipation, sale,
transfer, pledge, or encumbrance, whether voluntary or involuntary.  Before distribution of a Participant’s
Account, no Account balance will be subject to the debts,

 

A-1

 

contracts, liabilities, engagements or torts of the
Participant.  (See subsection (b) below
for distributions pursuant to a domestic relations order, and Section 6.3
for distributions upon the Participant’s death.)

 

(b)                             Domestic Relations Orders.  The
Plan Administrator shall honor a court order affecting a Participant’s Account,
provided the order would satisfy the requirements of a qualified domestic
relations order under ERISA §206(d) if the Plan were subject to Part II
of Title I of ERISA.  The Plan
Administrator shall apply procedures substantially similar to those procedures
applicable to domestic relations orders submitted to the administrator of the
Profit Sharing Plan.

 

8.3                           Limitation
of Rights.  Nothing in this Plan will
be construed to give a Participant the right to continue in the employ of the
Company at any particular position or to interfere with the right of the
Company to discharge, lay off or discipline a Participant at any time and for
any reason, or to give the Company the right to require any Participant to
remain in its employ or to interfere with the Participant’s right to terminate
his or her employment.

 

8.4                           Governing
Law.  The Provisions of the Plan will
be construed, enforced and administered in accordance with the laws of
California, except to the extent preempted by ERISA.

 

IN WITNESS WHEREOF, the Company by its duly authorized
officer has executed this plan, The MSC.Software Corporation Supplemental
Retirement and Deferred Compensation Plan, on this
                        
day of January, 1995.

 

 

	
   

  	
  The MSC.Software Corporation

  
	
   

  	
   

  
	
   

  	
   By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

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