Document:

exv4w32

 

EXHIBIT 4.32

Savings and Profit Sharing Plan

For Employees of

First Interstate BancSystem, Inc.

2002 Restatement

	 	 	 	 	 
	 	 	
Article I. The Plan	 	 
	1.1	 	
Plan History and Effective Dates
	 	  1
	1.2	 	
Purposes of the Plan
	 	  1
	 	 	
Article II. Definitions	 	 
	2.1	 	
Definitions
	 	  2
	2.2	 	
Gender and Number
	 	11
	 	 	
Article III. Participation	 	 
	3.1	 	
Date of Participation
	 	12
	3.2	 	
Eligibility Service
	 	12
	3.3	 	
Duration of Participation
	 	13
	3.4	 	
Reemployment
	 	13
	3.5	 	
Leased Employees
	 	13
	3.6	 	
Transferred Employees
	 	13
	 	 	
Article IV. Contributions	 	 
	4.1	 	
Employer Profit Sharing Contributions
	 	14
	4.2	 	
Allocation of Employer Profit Sharing Contributions
	 	14
	4.3	 	
Before-Tax and Matching Contributions
	 	14
	4.4	 	
After-Tax Contributions
	 	16
	4.5	 	
Contingency of Contributions on Profits
	 	16
	4.6	 	
Application of Forfeitures
	 	16
	4.7	 	
Limitation of Elective Deferrals
	 	16
	4.8	 	
Actual Deferral Percentage Test
	 	17
	4.9	 	
Adjustment to Actual Deferral Percentage Test
	 	20
	4.10	 	
Actual Contribution Percentage Test
	 	22

i

 

	 	 	 	 	 
	4.11	 	
Adjustment to Actual Contribution Percentage Test
	 	24
	4.12	 	
Limitations on Annual Account Additions
	 	26
	4.13	 	
Rollover Contributions
	 	28
	4.14	 	
Applicable Minimum Employer Contributions
	 	29
	4.15	 	
Specified Minimum Employer Contribution
	 	31
	 	 	
Article V. Vesting in Accounts	 	 
	5.1	 	
After-Tax, Before-Tax and Rollover Contributions Accounts
	 	33
	5.2	 	
Employer Profit Sharing and Matching
Contributions Accounts
	 	33
	5.3	 	
Vesting Service
	 	34
	5.4	 	
Forfeiture of Nonvested Amounts
	 	35
	 	 	
Article VI. Distributions and Withdrawals	 	 
	6.1	 	
Distribution upon Retirement, Death, or Disability
	 	36
	6.2	 	
Distribution upon Termination of Employment for Reasons
other than Retirement, Death, or Disability
	 	38
	6.3	 	
Consent to Early Distributions
	 	38
	6.4	 	
Time of Distribution
	 	39
	6.5	 	
Required Minimum Distributions
	 	40
	6.6	 	
Withdrawals
	 	45
	6.7	 	
Loans
	 	48
	6.8	 	
Financial Hardship
	 	51
	6.9	 	
Eligible Rollover Distribution
	 	51
	 	 	
Article VII. Investment Elections	 	 
	7.1	 	
Investment of Accounts
	 	53
	7.2	 	
Model Portfolios
	 	53
	7.3	 	
Investment Elections
	 	54
	7.4	 	
Transfer of Assets
	 	54
	7.5	 	
Consequence of Investment Elections
	 	54

ii

 

	 	 	 	 	 
	 	 	
Article VIII. Company Stock	 	 
	8.1	 	
An Investment Fund
	 	54
	8.2	 	
Purchase of Shares
	 	54
	8.3	 	
Valuing Stock
	 	55
	8.4	 	
Crediting of Stock to Account
	 	55
	8.5	 	
Dividends
	 	55
	8.6	 	
Transfers from Company Stock Investment Fund
	 	55
	8.7	 	
Distributions and Stock
	 	56
	8.8	 	
Withdrawals of Company Stock
	 	56
	8.9	 	
Loans and Stock
	 	56
	8.10	 	
Voting of Stock
	 	56
	8.11	 	
Tender Offers
	 	56
	 	 	
Article IX. Accounts and Records of the Plan	 	 
	9.1	 	
Accounts and Records
	 	57
	9.2	 	
Trust Fund
	 	57
	9.3	 	
Valuation and Allocation of Expenses
	 	57
	9.4	 	
Allocation of Earnings and Losses
	 	57
	 	 	
Article X. Financing	 	 
	10.1	 	
Financing
	 	58
	10.2	 	
Contributions
	 	58
	10.3	 	
Nonreversion
	 	58
	10.4	 	
Rights in the Trust Fund
	 	58
	 	 	
Article XI. Committee and Administration	 	 
	11.1	 	
Committee
	 	58
	11.2	 	
Organization
	 	58
	11.3	 	
Manner of Action
	 	59
	11.4	 	
Self-Interest
	 	59
	11.5	 	
Compensation and Expenses
	 	59
	11.6	 	
Powers
	 	59
	11.7	 	
Information
	 	60
	11.8	 	
Claim Procedure
	 	60
	11.9	 	
Notice of Address
	 	63
	11.10	 	
Application for Benefits and Data
	 	64
	11.11	 	
Indemnity for Liability
	 	64
	11.12	 	
Effect of a Mistake
	 	64

iii

 

	 	 	 	 	 
	11.13	 	
Missing Persons
	 	64
	11.14	 	
Appointment of Investment Manager
	 	64
	11.15	 	
Allocation of Fiduciary Responsibility
	 	65
	11.16	 	
Agency
	 	65
	 	 	
Article XII. Amendment and Termination	 	 
	12.1	 	
Amendment and Termination
	 	65
	12.2	 	
Limitations on Amendments
	 	66
	12.3	 	
Effect of Bankruptcy and Other Contingencies
Affecting the Employer
	 	66
	12.4	 	
Limitation on Employer Liability
	 	66
	12.5	 	
Amendment of Vesting Schedule
	 	67
	 	 	
Article XIII. Miscellaneous	 	 
	13.1	 	
Beneficiary Designation
	 	67
	13.2	 	
Incompetency
	 	68
	13.3	 	
Nonalienation
	 	69
	13.4	 	
Employment Rights
	 	69
	13.5	 	
Applicable Law
	 	69
	13.6	 	
Participation in the Plan by an Affiliate
	 	69
	13.7	 	
Merger, Consolidation, or Transfer
	 	70
	13.8	 	
Veterans’ Reemployment Rights
	 	70
	 	 	
Article XIV. Top-Heavy Provisions	 	 
	14.1	 	
Application of Top-Heavy Provisions
	 	70
	14.2	 	
Definitions
	 	71
	14.3	 	
Minimum Contribution
	 	72
	14.4	 	
Active Participant
	 	73

iv

 

Article I. The Plan

     1.1 Plan History and Effective Dates. First Interstate BancSystem, Inc.,
formerly known as First Interstate BancSystem of Montana, Inc., formerly known
as Security Banks of Montana (the “Company”) heretofore established and
maintained a savings plan, known as the “Savings Plan for Employees of First
Interstate BancSystem of Montana, Inc.” (the “Savings Plan”), for the benefit
of its eligible Employees, effective as of July 1, 1983. Said Savings Plan was
thereafter further amended and restated, effective as of January 1, 1987.

     Additionally, the Company heretofore established and maintained a profit
sharing plan, known as the “Profit Sharing Plan for Employees of First
Interstate BancSystem of Montana, Inc.” (the “Profit Sharing Plan”), for the
benefit of its eligible Employees, effective as of January 1, 1983. Said Profit
Sharing Plan was thereafter further amended and restated, effective as of
January 1, 1987.

     Effective as of January 1, 1991, the Profit Sharing Plan was merged into
the Savings Plan and the resulting plan was renamed the “Savings and Profit
Sharing Plan for Employees of First Interstate BancSystem of Montana, Inc.”
(the “Plan”).

     Said Plan is hereby further amended and restated as set forth herein
effective as of January 1, 2002 or such other dates as stated herein or as
required by law.

     The amendments contained in section 6.5 hereof (“Required Minimum
Distributions”) and section 11.8 (“Claim Procedure”) shall be effective as of
January 1, 2003.

     As provided in Article 5 of the First Amendment To Savings And Profit
Sharing Plan for Employees of First Interstate BancSystem, Inc., heretofore
adopted on March 28, 2002 (the “Amendment”), the provisions of said Amendment
were adopted on and remain subject to a condition that the Internal Revenue
Service does not determine, by ruling or determination letter, that the
Amendment would result in the Plan’s failure to be “qualified” in the meaning
of Section 401(a) of the Internal Revenue Code of 1986, as amended, and exempt
from taxation under Section 501(a) of the Code. If the Internal Revenue
Service does determine that said Amendment would disqualify the Plan and it
appears that no modification to it which would be satisfactory to the Employer
would also be acceptable to the Service, then so much of the Amendment that
cannot be so modified shall be void and of no effect. Furthermore this
restatement rescinds the amendment of Section 2.1(kk) heretofore adopted
pursuant to Article 1 of the Amendment, effective for Plan Years beginning
after December 31, 2001.

     1.2 Purposes of the Plan. The purposes of the Plan are to enable
Participants to share in the profitable operations of the Company and to
provide a convenient way for Participants to save on a regular and long-term
basis for retirement.

1

 

Article II. Definitions

     2.1 Definitions. Whenever used in the Plan, the following terms shall
have the respective meanings set forth below unless otherwise expressly
provided herein, and when the defined meaning is intended the term is
capitalized.

	 	(a)	 	“Account” means the separate account maintained for
each Member which represents his total proportionate interest
in the Trust Fund as of any Valuation Date and which consists
of the sum of the following subaccounts:
	 

	 	(1)	 	“After-Tax Contributions Account” means
that portion of such Member’s Account which evidences
the value of the After-Tax Contributions made by the
Member prior to January 1, 1989, including the net
worth of the Trust Fund attributable thereto.
	 
	 	(2)	 	“Before-Tax Contributions Account” means
that portion of such Member’s Account which evidences
the value of the Before-Tax Contributions made on his
behalf by an Employer, including the net worth of the
Trust Fund attributable thereto.
	 
	 	(3)	 	“Employer Profit Sharing Contributions
Account” means that portion of such Member’s Account
which evidences the value of the Employer Profit
Sharing Contributions made on his behalf by an
Employer, including the net worth of the Trust Fund
attributable thereto.
	 
	 	(4)	 	“Matching Contributions Account” means
that portion of such Member’s Account which evidences
the value of the Matching Contributions made on his
behalf by an Employer, including the net worth of the
Trust Fund attributable thereto.
	 
	 	(5)	 	“Rollover Contributions Account” means
that portion of such Member’s Account which evidences
the value of a Member’s Rollover Contributions made by
the Member pursuant to section 4.13, including the net
worth of the Trust Fund attributable thereto.
	 

	 	(b)	 	“Affiliate” means—
	 

	 	(1)	 	any corporation other than the Company,
i.e., either a subsidiary corporation or an affiliated
or associated

2

 

	 	 	 	corporation of the Company, which together with the
Company is a member of a “controlled group” of
corporations (as defined in section 414(b) of the
Code);
	 
	 	(2)	 	any organization which together with the
Company is under “common control” (as defined in
section 414(c) of the Code);
	 
	 	(3)	 	any organization which together with the
Company is an “affiliated service group” (as defined
in section 414(m) of the Code); or
	 
	 	(4)	 	any other entity required to be
aggregated with the Company pursuant to Regulations
under section 414(o) of the Code.
	 

	 	(c)	 	“After-Tax Contributions” means the voluntary
contributions made by a Member prior to January 1, 1989 as
described in section 4.4.
	 
	 	(d)	 	“Before-Tax Contributions” means the contributions
made by an Employer on behalf of a Participant pursuant to
his election to reduce his Compensation as described in
section 4.3(a).
	 
	 	(e)	 	“Beneficiary” means the person or persons designated
by a Member pursuant to section 13.1.
	 
	 	(f)	 	“Board” means the Board of Directors of the Company.
	 
	 	(g)	 	“Break in Service” means the cessation of crediting
Hours of Service when the Employee—
	 

	 	(1)	 	resigns;
	 
	 	(2)	 	is discharged;
	 
	 	(3)	 	fails to report to work within the
period required under the law pertaining to veterans’
reemployment rights after the Employee is released
from military duty with the armed forces of the United
States, in which case the Employee’s Break in Service
shall be deemed to have occurred on the first day of
the Employee’s authorized leave of absence for such
military duty;
	 
	 	(4)	 	is on an authorized leave of absence and
fails to return to employment, in which case the
Employee’s Break in Service shall be deemed to have
occurred on the first day of the Employee’s authorized
leave of absence; or

3

 

	 	(5)	 	retires or dies.
	 

	 	(h)	 	“Code” means the Internal Revenue Code of 1986, as
amended.
	 
	 	(i)	 	“Committee” means the committee described in section
11.1.
	 
	 	(j)	 	“Company” means First Interstate BancSystem, Inc.
(formerly known as “First Interstate BancSystem of Montana,
Inc.” and previously “Security Banks of Montana”), or any
successor.
	 
	 	(k)	 	“Compensation” means a Participant’s pay, determined
as follows:
	 

	 	(1)	 	Plan Compensation. For all purposes of
the Plan, except as otherwise specified, Compensation
means the base pay, excluding bonuses, overtime, and
incentive pay, actually received by a Participant from
an Employer during any Plan Year, and including
commission paid to mortgage and real estate personnel
and brokers’ commissions received after June 30, 1999,
all determined prior to any election to reduce his
Compensation under Code section 401(k) as described in
section 4.3(a) and determined prior to any salary
reductions under Code section 125 related to the First
Interstate BancSystem of Montana, Inc. Flexible
Compensation Program, provided however that an
Employee’s Compensation for any period under this
paragraph (1) shall be limited in accordance with the
Annual Compensation Limit provided in paragraph (4)
hereof. For purposes of sections 4.2 and 4.3, only
Compensation an individual receives while a
Participant shall be taken into account.
	 
	 	(2)	 	Section 414(s) Compensation. Section
414(s) Compensation means an Employee’s compensation,
as defined in section 415(c)(3) of the Code and the
applicable Regulations plus, in Plan Years ending
before January 1, 1998 (i.e., before the following
amounts are included in the definition of “Section 415
Compensation”), elective contributions that are made
by the Employer on behalf of the Employee which are
excludable from the Employee’s income under Code
section 125 or section 402(h).
	 
	 	 	 	For purposes of sections 4.8, 4.9, 4.10 and 4.11,
the Company may elect to use the definition of
Section 415 Compensation under paragraph (3) below
or any alternative definition permitted under
Regulations in lieu of this definition.

4

 

	 	 	 	An Employee’s Section 414(s) Compensation for
any period shall be limited in accordance with the
Annual Compensation Limit provided in paragraph (4)
hereof.
	 
	 	(3)	 	Section 415 Compensation. For purposes
of applying the limits of section 415 of the Code, as
described in section 4.12, Compensation means an
Employee’s compensation as defined in section
415(c)(3) of the Code and the applicable Regulations
thereunder including, in Plan Years ending after
December 31, 1997, elective contributions that are
made by the Employer on behalf of the Employee which
are excludable from the Employee’s income under Code
section 125 or section 402(h). For Plan Years
beginning on and after January 1, 2001, Section 415
Compensation paid or made available during such years
shall include elective amounts that are not includible
in the gross income of the Employee by reason of Code
Section 132(f)(4).
	 
	 	(4)	 	Annual 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, as defined in
paragraphs (1) and (2) hereof, during the Plan Year or
such other consecutive 12-month period over which
Compensation is otherwise determined under the plan
(the “Determination Period”). 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.

	 	(l)	 	“Disability” means a physical or mental injury or
disease which causes an Employee to be permanently incapable
of rendering satisfactory service to an Employer, as
determined by the Plan Administrator under rules consistently
and uniformly applied to all Employees.
	 
	 	(m)	 	“Distribution Date” means a date as of which a
Member’s Account may be distributed, or commence to be
distributed, to him. The business day coinciding with or
next following the fifteenth day of each calendar month shall
be a distribution date.
	 
	 	(n)	 	“Effective Date” means July 1, 1983, as to the
Company, and also means the date, if other than July 1, 1983,
as of which the Plan is
made effective as to any other Employer.

5

 

	 	(o)	 	“Eligibility Service” means the Service described in
section 3.2.
	 
	 	(p)	 	“Employee” means any person who is employed by the
Company or another Employer which has adopted the Plan.
	 
	 	(q)	 	“Employer” means the Company and any Affiliate which
adopts the Plan pursuant to section 13.6.
	 
	 	(r)	 	“Employer Profit Sharing Contributions” means the
contributions made by an Employer on behalf of a Participant
as described in section 4.1.
	 
	 	(s)	 	“Employment Commencement Date” means the first day on
which an Employee first performs an Hour of Service for the
Company or an Affiliate, or, if applicable, the first day
following a Break in Service or a Severance from Service, on
which an Employee performs an Hour of Service for the Company
or an Affiliate.
	 
	 	(t)	 	“ERISA” means the Employee Retirement Income Security
Act of 1974, as amended.
	 
	 	(u)	 	“Excess Before-Tax Contributions” means, with respect
to a Plan Year, the excess of Before-Tax Contributions made
on behalf of Highly Compensated Participants for the Plan
Year over the maximum amount of such contributions permitted
under section 4.8. Excess Before-Tax Contributions shall be
treated as Annual Additions pursuant to section 4.12.
	 
	 	(v)	 	“Excess Elective Deferrals” has the meaning set forth
in Section 4.7.
	 
	 	(w)	 	“Excess Matching Contributions” means, with respect to
a Plan Year, the excess of Matching Contributions made on
behalf of Highly Compensated Participants for the Plan Year
over the maximum amount of such contributions permitted under
section 4.10. Excess Matching Contributions shall be treated
as Annual Additions pursuant to section 4.12.
	 
	 	(x)	 	“Forfeitures” means those portions of Accounts which
are forfeited as described in sections 5.4 and 11.13.
	 
	 	(y)	 	“Highly Compensated Employee” means, an Employee who
performed services for the Employer during the Determination
Year and is in one or more of the following groups:

	 	(1)	 	was a Five Percent Owner of the Employer
at any time

6

 

	 	 	 	during the Determination Year or Look-Back
Year. “Five Percent Owner” means any person who owns
(or is considered as owning within the meaning of Code
section 318) more than five percent of the outstanding
stock of the Employer or stock possessing more than
five percent of the total combined voting power of all
stock of the Employer or, in the case of an
unincorporated business, any person who owns more than
five percent of the capital or profits interest in the
Employer. In determining percentage ownership
hereunder, Employers that would otherwise be
aggregated under Code sections 414(b), (c), (m) and
(o) shall be treated as separate Employers; or
	 
	 	(2)	 	received Section 415 Compensation during
the Look-Back Year from the Employer in excess of
$80,000;

	 	 	 	The “Determination Year” shall be the Plan Year for which
testing is being performed, and the “Look-Back Year” shall
be the immediately preceding twelve-month period.
	 
	 	 	 	For purposes of this section, the determination of Section
415 Compensation shall be based only on Section 415
Compensation which is actually paid, and for Plan Years
beginning before January 1, 1998 shall be made without
regard to Code sections 125, 402(e)(3), 402(h)(1)(B) and,
in the case of Employer contributions made pursuant to a
salary reduction agreement, without regard to Code section
403(b). Additionally, the dollar threshold amount
specified in subsection (2) shall be adjusted at such time
and in such manner as is provided in Regulations. In the
case of such an adjustment, the dollar limit which shall be
applied is that for the calendar year in which the
Look-Back Year begins.
	 
	 	 	 	In determining who is a Highly Compensated Employee, all
Affiliates shall be taken into account as a single Employer
and leased employees within the meaning of Code sections
414(n)(2) and 414(o)(2) shall be considered Employees
unless such leased employees are covered by a plan
described in Code section 414(n)(5) and are not covered in
any qualified plan maintained by the Employer.
	 
	 	 	 	A Highly Compensated Employee shall include a former
employee who separated from service prior to the Plan Year
and who was an active Highly Compensated Employee for
either (i) the year the employee separated from service, or
(ii) any Plan Year ending on or after the employee’s
fifty-fifth birthday.
	 
	 	(z)	 	“Highly Compensated Participant” means any Highly

7

 

	 	 	 	Compensated Employee who is eligible to participate in the
Plan.
	 
	 	(aa)	 	“Hour of Service” means—

	 	(1)	 	Each hour for which an Employee is
directly or indirectly paid, or entitled to payment,
by the Company or an Affiliate for—

	 	(A)	 	the performance of duties; or
	 
	 	(B)	 	the nonperformance of
duties, including, but not limited to,
vacation, holidays, sickness, disability,
layoff, and similar paid periods of nonworking
time; provided, however, no such Hours of
Service shall be credited if a payment is made
or due under a plan maintained solely to comply
with applicable worker’s compensation,
unemployment compensation, or disability
insurance laws, or if a payment solely
reimburses an Employee for medically related
expenses incurred by such Employee;

	 	(2)	 	Each hour for which back pay,
irrespective of mitigation of damages, is either
awarded or agreed to by the Company or an Affiliate,
with no duplication of credit for hours.

	 	 	 	The Plan Administrator shall determine Hours of Service in
accordance with reasonable standards and policies adopted
by it and shall credit Hours of Service in accordance with
Department of Labor regulation section 2530.200b-2.
	 
	 	(bb)	 	“Income” means, for purposes of determining the amount of any
corrective distribution under Section 4.7, 4.9 or 4.11, the sum of
the gain or loss for the taxable year of the individual which is
allocable to Excess Elective Deferrals, Excess Before-Tax
Contributions and Excess Matching Contributions as applicable, and
not including the allocable gain or loss for the period between the
end of the taxable year and the date of distribution.
	 
	 	(cc)	 	“Investment Fund” means any investment fund established by
the Plan Administrator as an investment medium for the Trust Fund,
including, effective January 1, 1995 or as soon as practicable
thereafter, the stock fund described in Article VIII. The Plan
Administrator shall have the discretion to establish and terminate
such funds as it shall deem appropriate; and also to determine such
restrictions on the investment of the Account (or any portion
thereof) in any investment fund as it shall

8

 

	 	 	 	deem appropriate, provided that any such restriction shall be
applied in a uniform and nondiscriminatory manner.
	 
	 	(dd)	 	“Matching Contributions” means the contributions made
by an Employer on behalf of a Participant, conditioned on the
making of Before-Tax Contributions, as described in section
4.3(b).
	 
	 	(ee)	 	“Member” means a Participant, or a former Participant
who still has a balance in his Account.
	 
	 	(ff)	 	“Non-Highly Compensated Participant” means any
Participant who is not a Highly Compensated Employee.
	 
	 	(gg)	 	“One-Year Break in Service” means a Plan Year during
which an Employee who has had a Break in Service does not
have more than 500 Hours of Service. Solely for purposes of
determining whether an Employee has incurred a One-Year Break
in Service, an Employee who is absent from work for reasons
of maternity or paternity leave shall be credited with the
number of Hours of Service (not in excess of 501) equal to—

	 	(1)	 	the number of Hours of Service which
otherwise would normally have been credited to such
Employee for such absence, or
	 
	 	(2)	 	in any case in which the number of Hours
of Service described in paragraph (1) cannot be
determined, eight Hours of Service per each day of
such absence.

	 	 	 	An absence for maternity or paternity reasons means an
absence by reason of the pregnancy of the Employee, by
reason of the birth of a child of the Employee, by reason
of placement of a child with the Employee in connection
with the adoption of such child by the Employee, or for
purposes of caring for such child for a period immediately
following such birth or placement. Effective as of August
5, 1993, the foregoing definition shall also apply to an
absence from employment, not to exceed 12 weeks, for which
an Employee is entitled to leave under section 102(a) of
the Family and Medical Leave Act of 1993 for maternity or
paternity reasons stated above or—

	 	(A)	 	for purposes of caring for a spouse,
child, or parent (but not parent-in-law) who has a
serious health condition, or
	 
	 	(B)	 	because of the Employee’s own serious
health condition.

	 	 	 	The Hours of Service described in this section shall be
credited

9

 

	 	 	 	only in the employment year (or Plan Year, if applicable)
in which the absence from work begins if the Employee would
be prevented from incurring a One-Year Break in Service in
such year solely because of this section or, in any other
case, in the immediately following employment year (or Plan
Year, if applicable).
	 
	 	(hh)	 	“Participant” means any Employee who meets the
eligibility requirements to become a Participant as set forth
in section 3.1.
	 
	 	(ii)	 	“Plan” means the Savings and Profit Sharing Plan for
Employees of First Interstate BancSystem, Inc. as set forth
herein and as amended from time to time.
	 
	 	(jj)	 	“Plan Administrator” means the entity which has been
designated as the “plan administrator” as provided in Article
XI.
	 
	 	(kk)	 	“Plan Year” means the calendar year beginning each
January 1.
	 
	 	(ll)	 	“Regulation” means the Income Tax Regulations as
promulgated by the Secretary of the Treasury or his delegate,
and as amended from time to time.
	 
	 	(mm)	 	“Retirement Age” means the date a Participant attains
his fifty-fifth birthday.
	 
	 	(nn)	 	“Rollover Contribution” means those contributions made
by an Employee as described in section 4.13.
	 
	 	(oo)	 	“Section 414(s) Compensation” means Compensation as
defined in section 2.1(k)(2).
	 
	 	(pp)	 	“Section 415 Compensation” means Compensation as
defined in section 2.1(k)(3).
	 
	 	(qq)	 	“Service” means employment with an Employer, an
Affiliate, or a predecessor thereof.
	 
	 	(rr)	 	“Trust Agreement” means any agreement establishing a
trust, which forms part of the Plan, to receive, hold,
invest, and dispose of the Trust Fund.
	 
	 	(ss)	 	“Trustee” means the corporation, or individual or
individuals, or combination thereof, acting as trustee under
the Trust Agreement at any time of reference.
	 
	 	(tt)	 	“Trust Fund” means the assets of every kind and
description held under the Trust Agreement.

10

 

	 	(uu)	 	“Valuation Date” means the last business day of each
calendar quarter, and such other date or dates as the Plan
Administrator shall declare as a Valuation Date for the Plan
or for any Account, category of Accounts, Investment Fund, or
shares of Company stock. With respect to each Investment
Fund other than the Company stock Investment Fund, each
business day during the Plan Year shall be a Valuation Date.
	 
	 	(vv)	 	“Vesting Service” means Service credited for vesting
purposes in accordance with section 5.3.
	 
	 	(ww)	 	“Applicable Estimated Tax Annualization Period” means
any tax annualization period within the Tax Year of the
Employer relating to the Employer’s calculation and payment
of estimated income taxes.
	 
	 	(xx)	 	“Tax Year” means the Fiscal Tax Year of the Employer
that begins on January 1 and ends on December 31.
	 
	 	(yy)	 	“Applicable Tax Year” means the Tax Year in which the
Plan Year begins.
	 
	 	(zz)	 	“Applicable Minimum Employer Contribution” means an
amount contributed by the Employer to the Trust pursuant to
Section 4.14 of the Plan for each Plan Year beginning on or
after January 1, 2002.
	 
	 	(aaa)	 	“Specified Minimum Employer Contribution” means an
amount contributed by the Employer to the Trust pursuant to
Section 4.15 of the Plan for each Plan Year beginning on or
after January 1, 2002.
	 
	 	(bbb)	 	“Last Day Participant” means any Employee who is an
Employee and a Participant on the last day of the Applicable
Estimated Tax Annualization Period.”

     2.2 Gender and Number. The masculine pronoun whenever used shall include
the feminine and neuter pronoun, and the singular shall include the plural
where the context requires it.

11

 

Article III. Participation

     3.1 Date of Participation. Each Employee who was a Participant on
December 31, 2001 shall continue to be a Participant in this Plan. Each other
Employee shall become a Participant on the first day of the month next
following the date the Employee is classified as a regular status
(non-temporary) Employee and has begun working a regular schedule of at least
20 hours per week for an Employer, or if sooner, the first January 1 or July 1
next following the completion of one year of Eligibility Service.

     An Employee shall be eligible to make a Rollover Contribution before
becoming a Participant; provided, however, he shall be deemed a Participant to
the extent of the Employee’s Rollover Contribution only and not for any other
purposes until the Employee otherwise is eligible to be and becomes a
Participant for all purposes hereunder.

     3.2 Eligibility Service. An Employee shall receive credit for one year
of Eligibility Service upon the first to occur of (a) or (b) below:

	 	(a)	 	the completion of his initial 12-month period of
employment with the Company and/or one or more Affiliates,
provided he has completed at least 1,000 Hours of Service
during such 12-month period; or
	 
	 	(b)	 	the completion of any Plan Year beginning after his
Employment Commencement Date during which he has completed at
least 1,000 Hours of Service for the Company and/or one or
more Affiliates.

     In the case of Employees who were employed by First Citizens Bank of
Bozeman, Montana on January 1, 1995, Eligibility Service shall include Hours of
Service performed for First Citizens Bank of Bozeman, Montana prior to the time
it became an Affiliate. In the case of Employees who were employed by First
National Park Bank, N.A. on July 1, 1995, Eligibility Service shall include
Hours of Service performed for First National Park Bank, N.A. prior to the time
it became an Affiliate. In the case of Employees who were employed in either
the Helena, Montana or Belgrade, Montana branch of the First National Bank of
Montana on the date on which substantially all the operating assets of such
branch were acquired by Company or an Affiliate, Eligibility Service shall
include Hours of Service performed for First National Bank of Montana prior to
such date.

     For purposes of determining the Eligibility Service of an individual who
is an employee of First Interstate Bank of Wyoming, N.A., First Interstate Bank
of Montana, N.A., Mountain Bank, Security State Bank Shares, Security State
Bank and Trust Company, Equality State Bank, Equality Bankshares and
Subsidiaries,or United States National Bank of Red Lodge on the date such
organization first becomes an Affiliate, service previously completed by the
individual as an employee of such organization (including service for any
affiliated or predecessor entity taken into account for eligibility

12

 

 purposes in a qualified pension or profit sharing plan maintained by such
organization) shall be taken into account to the same extent as service
completed for an Employer.

     3.3 Duration of Participation. Participant shall continue to be a
Participant until he terminates his employment with all Employers; thereafter,
he shall be a Member for as long as he has an Account.

     3.4 Reemployment. A former Participant shall again become a Participant
immediately upon resuming employment with an Employer. A former Employee who
had a termination of employment and was not a Participant at such termination
of employment shall, upon resuming employment as an Employee, receive credit
for the Hours of Service he had prior to such termination of employment for
purposes of determining his eligibility to become a Participant, and such a
former Employee who had completed one year of Eligibility Service prior to his
termination of employment but had not yet become a Participant in the Plan by
reason of his termination before the next occurring January 1, April 1, July 1,
or October 1 shall, upon resuming employment as an Employee after such date,
immediately participate in the Plan.

     3.5 Leased Employees. A person who is not an Employee of an Employer or
nonparticipating Affiliate and who performs services for an Employer or a
nonparticipating Affiliate, hereinafter referred to as the “Recipient,” shall
be considered a “leased employee” if:

	 	(a)	 	such services are provided pursuant to an agreement
between the Recipient and any other person, corporation or
other entity;
	 
	 	(b)	 	such person has performed such services for the
Recipient and/or one or more “related persons” within the
meaning of Code section 144(a)(3) on a substantially
full-time basis for a period of at least one year; and
	 
	 	(c)	 	such services are performed under primary direction or
control by the Recipient.

     A person who is considered a “leased employee” of the Employer or
nonparticipating Affiliate shall not be considered an Employee for purposes of
the Plan. However, if such a person participates in the Plan as a result of
subsequent employment with the Company or participating Affiliate, he shall
receive Eligibility Service and Vesting Service for his period of employment as
a leased employee.

     3.6 Transferred Employees. An Employee who is transferred from an
Affiliate into employment where he becomes a Participant hereunder shall be
credited with Eligibility Service and Vesting Service for all of his employment
with the Company and the Affiliate, before and after such transfer. Such
Service shall be credited in accordance with this Article III and Article V.

13

 

Article IV. Contributions

     4.1 Employer Profit Sharing Contributions. For the Plan Year, the
Employer shall make an Employer Profit Sharing Contribution to the Plan in such
amount (which may be zero) as the Board shall determine by resolution, either
specifying a fixed amount or specifying a definite basis or formula by which a
fixed amount can be determined, and Participants shall be notified of said
fixed amount or basis or formula by any form of communication the Employer
considers convenient. The Employer Profit Sharing Contribution shall be paid to
the Trustee not later than the time prescribed by law for obtaining a federal
income tax deduction for such contribution.

     In no event shall an Employer make an Employer Profit Sharing Contribution
for any Plan Year which, when added to Before-Tax and Matching Contributions
for such Plan Year, is greater than the maximum amount deductible from income
under the applicable provisions of the Code.

     4.2 Allocation of Employer Profit Sharing Contributions. The Employer
Profit Sharing Contributions for each Plan Year shall be allocated and credited
as of the last day of each Plan Year quarter for which the Employer Profit
Sharing Contribution was made to Employer Profit Sharing Contributions Accounts
of Members who are in the employ of the Employer as of that date or who are
Members who retired, died, or incurred a Disability during the Plan Year
quarter, in the proportion of the Compensation of each such Member for that
Plan Year quarter bears to the total of the Compensation of all such Members
for that Plan Year quarter. Only Compensation an individual receives while a
Participant shall be taken into account under this section.

     4.3 Before-Tax and Matching Contributions. For each Plan Year, each
Employer shall contribute an amount equal to the sum of (a) Before-Tax
Contributions and (b) Matching Contributions; the amount of each of which is as
follows:

	 	(a)	 	Before-Tax Contributions. Each Participant may elect,
on a form provided by the Plan Administrator, to reduce his
Compensation by whole number percentage (not to exceed 15
percent in Plan Years beginning before January 1, 2002) and
to have the amount by which his Compensation is reduced
contributed on his behalf by his Employer as a Before-Tax
Contribution to the Plan.
	 
	 	 	 	In the case of a Participant who first becomes an Employee
after December 31, 2000, and any Participant who first
becomes an Employee during the Plan Year ended December 31,
2000 and makes the election provided in the last sentence
of section 5.2(a), if the individual does not affirmatively
elect to either (1) reduce his Compensation by a specified
amount to be contributed to the Plan in accordance with the
preceding paragraph, or (2) not reduce his Compensation in
accordance with the preceding paragraph, then his or her
Compensation shall be automatically reduced by 1

14

 

	 	 	 	percent and this amount shall be contributed on his behalf
by his Employer as a Before-Tax Contribution to the Plan.
	 
	 	 	 	Within a reasonable time after an Employee described in the
preceding paragraph is hired, and before the date the
Employee becomes a Participant, the Employer shall provide
the Employee with a notice that explains the automatic
Compensation reduction election described in the preceding
paragraph, and the Employee’s right to elect to have no
such Compensation reduction contributions made to the Plan
as Before-Tax Contributions, or to alter the amount of
those contributions, including the procedure for exercising
that right and the timing for implementation of any such
election. Each Participant shall be notified annually of
his or her Compensation reduction percentage and the
participant’s right to change the percentage, including the
procedure for exercising that right and the timing for
implementation of any such election.
	 
	 	 	 	A Participant may elect, on a form provided by the Plan
Administrator, to increase or decrease his Compensation
reductions (within the percentage limits stated above) or
to cease future Compensation reductions as of the first
payday in any month, provided the Participant files such
form with the Plan Administrator prior to the first day of
the month. The Plan Administrator may adopt rules
concerning the administration of this subsection.
	 
	 	 	 	The Before-Tax Contributions made on behalf of each
Participant shall be paid to the Trustee every pay period,
at the earliest date on which they can reasonably be
segregated from the Employer’s general assets, not later
than the 15th business day of the month following the month
in which such amounts would otherwise have been payable to
the Participant in cash, and shall be allocated to such
Participant’s Account as of the date on which they are
received by the Trustee.
	 
	 	(b)	 	Matching Contributions. Each Employer shall make a
Matching Contribution on behalf of each Participant equal to
125 percent of the first 4 percent of Before-Tax
Contributions made with respect to such Participant. The
Matching Contributions made on behalf of each Participant
shall be paid to the Trustee every pay period and allocated
to such Participant’s Matching Contributions Account as of
the date on which they are received by the Trustee. The
amount of Matching Contributions shall be adjusted on or
before the close of the Plan Year, so that the total amount
of Matching Contributions made on behalf of each Participant
for the Plan Year equals 125 percent of the first four
percent of

15

 

	 	 	 	Compensation contributed by the Participant as a Before-Tax
Contribution during the Plan Year.
	 
	 	(c)	 	Catch-Up Contributions. All Participants who are
eligible to make Elective Contributions under this Plan and
who would attain Age 50 by the end of the taxable 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 401(a)(30)
and 415(c) of the Code. 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. This
Section 3.1(c) shall apply to contributions after December
31, 2001. No Matching Contributions shall be made with
respect to such catch-up contributions.

     4.4 After-Tax Contributions. Prior to January 1, 1989, each Participant
was allowed to contribute through payroll deductions, in addition to or in lieu
of any Before-Tax Contributions he was making under the Plan, certain specified
percentages of his Compensation (before reduction for Before-Tax Contributions)
to the Plan. Effective January 1, 1989, no additional After-Tax Contributions
shall be allowed under the Plan. After-Tax Contributions made prior to January
1, 1989 shall continue to be held in each Member’s After-Tax Contributions
Account until distributed in accordance with the provisions of Article VI.

     4.5 Contingency of Contributions on Profits. This Plan is designed as a
profit sharing plan under section 401(a) of the Code. However, payment by an
Employer of contributions to the Plan shall not be contingent on the existence
of current or accumulated profits of the Employer.

     4.6 Application of Forfeitures. Forfeitures occurring during any Plan
Year shall be used to reduce future Employer Profit Sharing and Matching
Contributions made under section 4.1 or due under section 4.3(b).

     4.7 Limitation of Elective Deferrals. The “Elective Deferrals” (as
defined herein) made on behalf of any Participant in any calendar year under
this Plan and all other plans, contracts or arrangements of the Company or any
Affiliate shall not exceed the amount of the limitation in effect under Code
section 402(g)(1) for taxable years beginning in such calendar year.

     With respect to any taxable year, a Participant’s “Elective Deferrals” are
defined as the sum of all employer contributions made on the Participant’s
behalf pursuant to an election to defer under any qualified cash or deferred
arrangement under Code section

16

 

 401(k) (including Before-Tax Contributions under this Plan, except
“catch-up Contributions” under Section 4.3(c)), any simplified employee pension
cash or deferred arrangement described in Code section 402(h)(1)(B), any plan
described in Code section 501(c)(18), and any employer contributions made for
the purchase of an annuity contract for the Participant under Code section
403(b) pursuant to a salary reduction agreement.

     Notwithstanding any other provision of the Plan, “Excess Elective
Deferrals” (as defined herein), adjusted for any Income allocable thereto,
shall be distributed no later than April 15 to any Participant to whose Account
Excess Elective Deferrals were allocated for the preceding year. The amount
distributed shall not exceed the Participant’s Before-Tax Contributions under
the Plan for the taxable year.

     “Excess Elective Deferrals” shall mean those Elective Deferrals that are
includable in a Participant’s gross income under section 402(g) of the Code to
the extent such Participant’s Elective Deferrals for a taxable year exceed the
dollar limitation under such Code section, taking into account only Elective
Deferrals under this Plan and any other plans of the Company and any Affiliate.

     The amount of Excess Elective Deferrals that may be distributed under this
section with respect to a Participant for a taxable year is reduced by any
Excess Before-Tax Contributions previously distributed pursuant to section 4.9
with respect to the Participant for the Plan Year beginning with or within the
taxable year.

     A corrective distribution of Excess Elective Deferrals under this section
shall include Income allocable to such Excess Elective Deferrals for the Plan
Year in which such excess occurred, to be determined in accordance with
Regulations under Code section 402(g). In lieu of using the safe harbor method
or the alternative method in the Regulations for allocating such Income, the
Plan Administrator may use any reasonable method for computing such Income,
provided that such method does not violate Code section 401(a)(4), is used
consistently for all Participants and for all corrective distributions under
the Plan for the Plan Year, and is used by the Plan for allocating Income to
Participant’s Accounts.

     4.8 Actual Deferral Percentage Test.

	 	(a)	 	Maximum Annual Allocation: Subject to section 4.9,
for each Plan Year the annual allocation derived from
Before-Tax Contributions to Participants’ Accounts shall
satisfy one of the following tests:

	 	(1)	 	The Actual Deferral Percentage for the
Highly Compensated Participant group for the current
Plan Year shall not be more than the Actual Deferral
Percentage of the Non-Highly Compensated Participant
group for the current Plan Year multiplied by 1.25, or
	 
	 	(2)	 	The excess of the Actual Deferral
Percentage for the Highly Compensated Participant
group for the current Plan

17

 

	 	 	 	Year over the Actual Deferral Percentage for the
Non-Highly Compensated Participant group for the
current Plan Year shall not be more than two
percentage points. Additionally, the Actual
Deferral Percentage for the Highly Compensated
Participant group for the current Plan Year shall
not exceed the Actual Deferral Percentage for the
Non-Highly Compensated Participant group for the
current Plan Year multiplied by 2. The provisions
of Code section 401(k)(3) and Regulations section
1.401(k)-1(b) are incorporated herein by reference.

	 	(b)	 	For the purposes of this section “Actual Deferral
Percentage” means, with respect to the Highly Compensated
Participant group and Non-Highly Compensated Participant
group for a Plan Year, the average of the ratios, calculated
separately for each Participant in such group, of the amount
of Before-Tax Contributions allocated to each Participant’s
Account for such Plan Year, to such Participant’s Section
414(s) Compensation for such Plan Year. The actual deferral
ratio for each Participant and the Actual Deferral Percentage
for each group shall be calculated to the nearest
one-hundredth of one percent. Before-Tax Contributions
allocated to each Non-Highly Compensated Participant’s
Account shall be reduced by Excess Elective Deferrals, as
defined in section 4.7, to the extent such Excess Elective
Deferrals are made under this Plan.
	 
	 	(c)	 	The determination of an Employee’s actual deferral
ratio shall take into account only the Employee’s Section
414(s) Compensation earned while the Employee is a Plan
Participant, unless the Plan Administrator determines that
Excess Before-Tax Contributions would be reduced by taking
into account each Employee’s Section 414(s) Compensation for
the entire Plan Year.
	 
	 	(d)	 	For the purposes of section 4.8(a) and 4.9, a Highly
Compensated Participant and a Non-Highly Compensated
Participant shall include any Employee eligible to make a
deferral election pursuant to section 4.3(a), whether or not
such deferral election was made or suspended pursuant to
section 4.3(a).
	 
	 	(e)	 	For the purposes of this section and Code sections
401(a)(4), 410(b) and 401(k), if two or more plans of the
Company or an Affiliate which have the same plan year and
which include cash or deferred arrangements are considered
one plan for the purposes of Code section 401(a)(4) or
410(b), other than Code section 410(b)(2)(A)(ii), the cash or
deferred arrangements included in such plans shall be treated
as one arrangement. In addition, two or

18

 

	 	 	 	more cash or deferred arrangements contained in plans which
have the same plan year may be considered as a single
arrangement for purposes of determining whether or not such
arrangements satisfy Code sections 401(a)(4), 410(b) and
401(k). In such a case, the cash or deferred arrangements
included in such plans and the plans including such
arrangements shall be treated as one arrangement and as one
plan for purposes of this section and Code sections
401(a)(4), 410(b) and 401(k).
	 
	 	 	 	Notwithstanding the above, an employee stock ownership plan
described in Code section 4975(e)(7) may not be combined
with this Plan for purposes of determining whether the
employee stock ownership plan or this Plan satisfies this
section and Code sections 401(a)(4), 410(b) and 401(k).
	 
	 	(f)	 	For the purposes of this section, if a Highly
Compensated Participant is a Participant under two or more
cash or deferred arrangements (other than cash or deferred
arrangement which is part of an employee stock ownership plan
as defined in Code section 4975(e)(7)) of the Company or an
Affiliate, all such cash or deferred arrangements shall be
treated as one cash or deferred arrangement for the purpose
of determining the actual deferral ratio with respect to such
Highly Compensated Participant. However, if the cash or
deferred arrangements have different plan years, this
paragraph shall be applied by treating all cash or deferred
arrangements ending with or within the same calendar year as
a single arrangement.
	 
	 	(g)	 	In accordance with Code section 401(k)(3)(F), the Plan
Administrator may, in its discretion, elect to apply this
section separately to each of two groups of Participants:

	 	(1)	 	Non-Highly Compensated participants who
have not completed one Year of Service, or have not
attained age 21; and
	 
	 	(2)	 	All other Participants.

	 	 	 	If a Participant is described in both (1) and (2) above for
different portions of the Plan Year, the Participant,
together with his or her Compensation and Before-Tax
Contributions, if any, shall be taken into account under
(1) above as if he or she were a Participant solely for pay
periods beginning prior to attainment of age 21 and
completion of one Year of Service, whichever occurs later,
and shall be taken into account under (2) above as if he or
she were a Participant solely for pay periods beginning
after attainment of age 21 and completion of one Year of
Service, whichever occurs later.

19

 

	 	(h)	 	The Plan Administrator may take such additional action
as it shall consider appropriate to ensure compliance with
the requirements of this section, and section 4.9. Such
action may include, but is not limited to, reducing the
maximum amount of Before-Tax Contributions under section 4.3
that can be contributed on behalf of or by any group of
Highly Compensated Participants.

     4.9 Adjustment to Actual Deferral Percentage Test. If the initial
allocations of the Before-Tax Contributions made pursuant to section 4.3 do not
satisfy one of the tests set forth in section 4.8(a), the Plan Administrator
shall adjust Excess Before-Tax Contributions in the manner set forth below,
whereupon the requirements of section 4.8(a) shall be deemed satisfied:

	 	(a)	 	On or before the fifteenth day of the third month
following the end of each Plan Year, the Plan Administrator
shall determine and direct the Trustee to distribute Excess
Before-Tax Contributions in accordance with the following
rules:

	 	(1)	 	The Plan Administrator shall calculate the
dollar amount of Excess Before-Tax Contributions for
each Highly Compensated Participant. For each Highly
Compensated Participant, the amount of Excess
Before-Tax Contributions is equal to the Before-Tax
Contributions on behalf of such Highly Compensated
Participant (determined prior to the application of
this section) minus the amount of Before-Tax
Contributions which would remain if the Before-Tax
Contributions on behalf of all Highly Compensated
Participants were adjusted as follows:

	 	(A)	 	By reducing the Before-Tax
Contributions on behalf of the Highly
Compensated Participant(s) having the highest
actual deferral ratio until one of the tests
set forth in section 4.8(a) is satisfied, or
until his actual deferral ratio equals the
actual deferral ratio of the Highly Compensated
Participant(s) having the second highest actual
deferral ratio; and
	 
	 	(B)	 	By repeating this process
until one of the tests set forth in section
4.8(a) is satisfied.

	 	(2)	 	The Plan Administrator shall compute the
total dollar amount of Excess Before-Tax Contributions
for all Highly Compensated Participants determined
under paragraph (1), and shall distribute this amount
as provided in paragraphs (3) and (4).
	 
	 	(3)	 	The Before-Tax Contributions of the
Highly Compensated

20

 

	 	 	 	Participant with the highest dollar amount of
Before-Tax Contributions shall be reduced by the
amount required to cause that Highly Compensated
Participant’s Before-Tax Contributions to equal the
dollar amount of the Before-Tax Contributions of the
Highly Compensated Participant with the next highest
dollar amount of Before-Tax Contributions. This
amount is then distributed to the Highly Compensated
Participant with the highest dollar amount.
However, if a lesser reduction, when added to the
total dollar amount already distributed under this
step, would equal the total Excess Before-Tax
Contributions, the lesser reduction amount shall be
the amount distributed.
	 
	 	(4)	 	If the total amount distributed is less
than the total Excess Before-Tax Contributions, the
step described in paragraph (3) shall be repeated
until the total Excess Before-Tax Contributions have
been distributed.
	 
	 	(5)	 	However, in determining the amount of
Excess Before-Tax Contributions to be distributed with
respect to an affected Highly Compensated Participant
as determined herein, such amount shall be reduced by
any Excess Elective Deferrals previously distributed
from this Plan to such affected Highly Compensated
Participant for his taxable year ending with or within
such Plan Year.

	 	(b)	 	With respect to the distribution of Excess Before-Tax
Contributions pursuant to (a) above, such distribution:

	 	(1)	 	shall be made first from unmatched
Before-Tax Contributions, and, thereafter,
simultaneously from Before-Tax Contributions which are
matched and Matching Contributions which relate to
such Before-Tax Contributions;
	 
	 	(2)	 	shall be made from Employer Profit
Sharing Contributions only to the extent that the
amount required to be distributed to the Participant
exceeds the balance in the Participant’s Account
attributable to Before-Tax Contributions and Employer
Matching Contributions made pursuant to sections
4.3(a) and 4.3(b);
	 
	 	(3)	 	shall be adjusted for Income as provided
in paragraph (c) below; and
	 
	 	(4)	 	shall be designated by the Employer as a
distribution of Excess Before-Tax Contributions (and
Income).

21

 

	 	(c)	 	A corrective distribution of Excess Before-Tax
Contributions under this section shall include Income
allocable to such Excess Before-Tax Contributions for the
Plan Year in which such excess occurred, to be determined in
accordance with Regulations under Code section 401(k). In
lieu of using the safe harbor method or the alternative
method in the Regulations for allocating such Income, the
Plan Administrator may use any reasonable method for
computing such Income, provided that such method does not
violate Code section 401(a)(4), is used consistently for all
Participants and for all corrective distributions under the
Plan for the Plan Year, and is used by the Plan for
allocating Income to Participant’s Accounts.

     4.10 Actual Contribution Percentage Test.

	 	(a)	 	Maximum Annual Allocation: Subject to section 4.11,
for each Plan Year the annual allocation derived from
Matching Contributions to Participants’ Accounts shall
satisfy one of the following tests:

	 	(1)	 	The Actual Contribution Percentage for
the Highly Compensated Participant group for the
current Plan Year shall not be more than the Actual
Contribution Percentage of the Non-Highly Compensated
Participant group for the current Plan Year multiplied
by 1.25, or
	 
	 	(2)	 	The excess of the Actual Contribution
Percentage for the Highly Compensated Participant
group for the current Plan Year over the Actual
Contribution Percentage for the Non-Highly Compensated
Participant group for the current Plan Year shall not
be more than two percentage points. Additionally, the
Actual Contribution Percentage for the Highly
Compensated Participant group for the current Plan
Year shall not exceed the Actual Contribution
Percentage for the Non-Highly Compensated Participant
group for the current Plan Year multiplied by 2. The
provisions of Code section 401(m) and Regulations
section 1.401(m)-1(b) are incorporated herein by
reference.

	 	(b)	 	For the purposes of this section “Actual Contribution
Percentage” means, with respect to the Highly Compensated
Participant group and Non-Highly Compensated Participant
group for a Plan Year, the average of the ratios, calculated
separately for each Participant in such group, of the amount
of Matching Contributions allocated to each Participant’s
Account for such Plan Year, to such Participant’s Section
414(s) Compensation for such Plan Year. The actual
contribution ratio for each Participant and the Actual

22

 

	 	 	 	Contribution Percentage for each group shall be calculated
to the nearest one-hundredth of one percent.
	 
	 	(c)	 	The determination of an Employee’s actual contribution
ratio shall take into account only the Employee’s Section
414(s) Compensation earned while the Employee is a Plan
Participant, unless the Plan Administrator determines that
Excess Matching Contributions would be reduced by taking into
account each Employee’s Section 414(s) Compensation for the
entire Plan Year.
	 
	 	(d)	 	For the purposes of section 4.10(a) and 4.11, a Highly
Compensated Participant and a Non-Highly Compensated
Participant shall include any Employee eligible to make a
deferral election under section 4.3(a) and thereby become
entitled to have Matching Contributions made for him pursuant
to section 4.3(b), whether or not such deferral election was
made or suspended pursuant to section 4.3(a).
	 
	 	(e)	 	For the purposes of this section and Code sections
401(a)(4), 410(b) and 401(m), if two or more plans of the
Company or an Affiliate which have the same plan year and to
which matching contributions, employee contributions, or both
are made are considered one plan for the purposes of Code
section 401(a)(4) or 410(b), other than the average benefits
test under Code section 410(b)(2)(A)(ii), such plans shall be
treated as one plan. In addition, two or more plans of the
Employer to which matching contributions, employee
contributions, or both are made which have the same plan year
may be considered as a single plan for purposes of
determining whether or not such plans satisfy Code sections
401(a)(4), 410(b) and 401(m). In such a case, aggregated
plans must satisfy this section and Code sections 401(a)(4),
410(b) and 401(m) as though such aggregated plans were a
single plan.
	 
	 	 	 	Notwithstanding the above, an employee stock ownership plan
described in Code section 4975(e)(7) may not be combined
with this Plan for purposes of determining whether the
employee stock ownership plan or this Plan satisfies this
section and Code sections 401(a)(4), 410(b) and 401(m).
	 
	 	(f)	 	For the purposes of this section, if a Highly
Compensated Participant is a Participant under two or more
plans (other than cash or deferred arrangement which is part
of an employee stock ownership plan as defined in Code
section 4975(e)(7)) which are maintained by the Employer or
an Affiliate and to which matching contributions, employee
contributions, or both are made, all such contributions on
behalf of such Highly Compensated Participant shall be
aggregated for the purpose of determining the actual

23

 

	 	 	 	contribution ratio with respect to such Highly Compensated
Participant. However, if the plans have different plan
years, this paragraph shall be applied by treating all such
plans ending with or within the same calendar year as a
single plan.
	 
	 	(g)	 	In accordance with Code section 401(m)(5)(C), the Plan
Administrator may, in its discretion, elect to apply this
section separately to each of two groups of Participants:

	 	(1)	 	Non-Highly Compensated participants who
have not completed one Year of Service, or have not
attained age 21; and
	 
	 	(2)	 	All other Participants.

	 	 	 	If a Participant is described in both (1) and (2) above for
different portions of the Plan Year, the Participant,
together with his or her Compensation and Matching
Contributions, if any, shall be taken into account under
(1) above as if he or she were a Participant solely for pay
periods beginning prior to attainment of age 21 and
completion of one Year of Service, whichever occurs later,
and shall be taken into account under (2) above as if he or
she were a Participant solely for pay periods beginning
after attainment of age 21 and completion of one Year of
Service, whichever occurs later.
	 
	 	(h)	 	The Plan Administrator may take such additional action
as it shall consider appropriate to ensure compliance with
the requirements of this section, and section 4.11. Such
action may include, but is not limited to, reducing the
maximum amount of Before-Tax Contributions under section 4.3
that can be contributed on behalf of or by any group of
Highly Compensated Participants.

     4.11 Adjustment to Actual Contribution Percentage Test. If the initial
allocations of the Matching Contributions made pursuant to section 4.3 do not
satisfy one of the tests set forth in section 4.10(a), the Plan Administrator
shall adjust Excess Matching Contributions in the manner set forth below,
whereupon the requirements of section 4.10(a) shall be deemed satisfied:

	 	(a)	 	On or before the fifteenth day of the third month
following the end of each Plan Year, the Plan Administrator
shall determine and direct the Trustee to distribute and/or
forfeit Excess Matching Contributions in accordance with the
following rules:

	 	(1)	 	The Plan Administrator shall calculate the
dollar amount of Excess Matching Contributions for each
Highly Compensated Participant. For each Highly
Compensated Participant, the amount of Excess Matching
Contributions is

24

 

	 	 	 	equal to the Matching Contributions on behalf of such
Highly Compensated Participant (determined prior to
the application of this section) minus the amount of
Matching Contributions which would remain if the
Matching Contributions on behalf of all Highly
Compensated Participants were adjusted as follows:

	 	(A)	 	By reducing the Matching
Contributions on behalf of the Highly
Compensated Participant(s) having the highest
actual contribution ratio until one of the
tests set forth in section 4.10(a) is
satisfied, or until his actual contribution
ratio equals the actual contribution ratio of
the Highly Compensated Participant(s) having
the second highest actual contribution ratio;
and
	 
	 	(B)	 	By repeating this process
until one of the tests set forth in section
4.10(a) is satisfied.

	 	(2)	 	The Plan Administrator shall compute the
total dollar amount of Excess Matching Contributions
for all Highly Compensated Participants determined
under paragraph (1), and shall distribute and/or
forfeit this amount as provided in paragraphs (3) and
(4).
	 
	 	(3)	 	The Matching Contributions of the Highly
Compensated Participant with the highest dollar amount
of Matching Contributions shall be reduced by the
amount required to cause that Highly Compensated
Participant’s Matching Contributions to equal the
dollar amount of the Matching Contributions of the
Highly Compensated Participant with the next highest
dollar amount of Matching Contributions. This amount
is then distributed to the Highly Compensated
Participant with the highest dollar amount, to the
extent such Participant is vested in his Matching
Contributions Account, and is otherwise treated as a
forfeiture. However, if a lesser reduction, when
added to the total dollar amount already distributed
under this step, would equal the total Excess Matching
Contributions, the lesser reduction amount shall be
the amount distributed and/or forfeited.
	 
	 	(4)	 	If the total amount distributed and/or
forfeited is less than the total Excess Matching
Contributions, the step described in paragraph (3)
shall be repeated until the total Excess Matching
Contributions have been distributed and/or forfeited.

25

 

	 	(b)	 	Any distribution of less than the entire amount of
Excess Matching Contributions and Income shall be treated as
a pro rata distribution of Excess Matching Contributions and
Income. Any distribution of Excess Matching Contributions
(and Income) shall be designated as such by the Employer.
Forfeitures of Excess Matching Contributions shall be treated
in accordance with section 5.4.
	 
	 	(c)	 	Excess Matching Contributions, including forfeited
Matching Contributions shall be treated as Employer
contributions for purposes of Code sections 404 and 415 even
if distributed from the Plan.
	 
	 	(d)	 	The determination of the amount of Excess Matching
Contributions with respect to any Plan Year shall be made
after first determining the Excess Before-Tax Contributions
and resulting adjustments under sections 4.8 and 4.9.
	 
	 	(e)	 	A corrective distribution of Excess Matching
Contributions under this section shall include Income
allocable to such Excess Matching Contributions for the Plan
Year in which such excess occurred, to be determined in
accordance with Regulations under Code section 401(m). In
lieu of using the safe harbor method or the alternative
method in the Regulations for allocating such Income, the
Plan Administrator may use any reasonable method for
computing such Income, provided that such method does not
violate Code section 401(a)(4), is used consistently for all
Participants and for all corrective distributions under the
Plan for the Plan Year, and is used by the Plan for
allocating Income to Participant’s Accounts.

     4.12 Limitations on Annual Account Additions.

	 	(a)	 	Annual Account Addition. “Annual Account Addition”
means for any Participant for any Plan Year, which shall also
be the limitation year, the sum of —

	 	(1)	 	employer contributions made for him
under any defined contribution plan for such Plan
Year;
	 
	 	(2)	 	such Participant’s contributions to any
defined contribution plan for such Plan Year;
	 
	 	(3)	 	forfeitures allocated to him under any
defined contribution plan for such Plan Year; and
	 
	 	(4)	 	contributions allocated on his behalf to
any individual

26

 

	 	 	 	medical account as described under Code sections
401(h)(6) and 419(A)(d).

	 	 	 	“Any defined contribution plan” means all defined
contribution plans of the Company and Affiliates considered
as one plan. For purposes of this section, “Affiliate”
shall have the meaning prescribed in section 2.1(b), except
that the phrase “more than 50 percent” shall be substituted
for the phrase “at least 80 percent” each place it appears
in Code section 1563(a)(1). Repayments of a loan or a
restored Forfeiture pursuant to section 11.13 or a Rollover
Contribution pursuant to section 4.9 shall not be included
as part of any Participant’s Annual Account Addition.
	 
	 	(b)	 	Limitation. A Participant’s Annual Account Addition
for any Plan Year shall not exceed the lesser of —

	 	(1)	 	$40,000, as adjusted for increases in
the cost of living under Section 415(d) of the Code,
such adjusted limitation to be effective as of January
1st of each calendar year and applicable to Plan Years
ending with or within that calendar year; or
	 
	 	(2)	 	100 percent of such Participant’s
Section 415 Compensation for such Plan Year.

	 	(c)	 	Reduction in Annual Account Additions. If in any Plan
Year a Participant’s Annual Account Addition exceeds the
limitation determined under subsection (b) above, such excess
shall not be allocated to his accounts in any defined
contribution plan but shall be handled in the following
manner and order until such excess is eliminated:

	 	(1)	 	the portion of the Participant’s
Before-Tax Contributions that has not been matched
under section 4.3(b) shall be refunded to the
Participant.
	 
	 	(2)	 	the portion of the Participant’s
Before-Tax Contributions that has been matched under
section 4.3(b) shall be refunded to the Participant
and the corresponding portion of Matching
Contributions made with respect to such refunded
Before-Tax Contributions shall be placed in a suspense
account.
	 
	 	(3)	 	the portion of the Participant’s
Employer Profit Sharing Contributions shall be placed
in a suspense account.
	 
	 	 	 	The amount held in such suspense account shall be
treated

27

 

	 	 	 	as a Matching Contribution in the next following
Plan Year and allocated to the Matching
Contributions Accounts of all Participants pursuant
to section 4.3(b). Such suspense account shall share
in the gains and losses of the Trust Fund on the
same basis as other Accounts.

	 	 	 	If Before-Tax Contributions are refunded to any
Participant, his share of earnings and gains allocable to
such Before-Tax Contributions shall also be refunded to
him.
	 
	 	 	 	The above reductions shall be applied to this Plan first,
and thereafter to any other defined contribution plan.

     4.13 Rollover Contributions. A Participant may, with the approval of the
Plan Administrator in accordance with procedures established by the Plan
Administrator, contribute the following amounts to the Plan, which shall be
credited to his Rollover Contributions Account:

	 	(a)	 	a direct rollover of an eligible rollover
distribution, excluding after-tax contributions, from (i) a
qualified plan described in Code section 401(a) or 403(a),
(ii) an annuity contract or plan described in Code section
403(b), or (iii) an eligible plan under Code section 457(b)
which is maintained by a state, political subdivision of a
state, or any agency or instrumentality of a state or
political subdivision of a state; or
	 
	 	(b)	 	amounts distributed to the Participant from a conduit
individual retirement account and transferred by the
Participant to this Plan within sixty (60) days of his
receipt thereof from such conduit individual retirement
account, provided that the conduit individual retirement
account has no assets other than assets which

	 	(1)	 	were previously distributed to the
Participant by another plan described in subsection
(a) hereof;
	 
	 	(2)	 	were eligible for tax-free rollover to such plan, and
	 
	 	(3)	 	were directly rolled over from such plan
to the conduit individual retirement account or were
deposited in such conduit individual retirement
account within sixty (60) days of receipt thereof; or
	 
	 	(4)	 	constitute earnings on assets described
in paragraphs (1) through (3).

     If the Participant has received the distribution, the related Rollover
Contribution must be paid over to the Trustee on or before the sixtieth day
after receipt. In the case of a

28

 

direct rollover, the related Rollover Contribution must be transferred
directly from said plan.

     Prior to accepting any transfer to which this Section applies, the Plan
Administrator may require the Participant to establish by that the amounts to
be transferred to this Plan meet the requirements of this Section. If the Plan
Administrator determines that a contribution previously accepted by the Plan as
a Rollover Contribution was not a valid Rollover Contribution within the
meaning of subsections (a) and (b) hereof, the Plan Administrator shall direct
the Trustee to distribute the amount of the invalid Rollover Contribution, plus
any earnings attributable thereto, to the contributing Participant within a
reasonable time after such determination.

     4.14
Applicable Minimum Employer Contributions. Notwithstanding any
provision of the Plan to the contrary, the following provisions shall govern
the treatment of Applicable Minimum Employer Contributions:

	 	(a)	 	Frequency and Eligibility. For each Plan Year
beginning on or after January 1, 2002, the Employer shall
make a discretionary Applicable Minimum Employer Contribution
on behalf of the group of Employees who are Last Day
Participants during the Applicable Estimated Tax
Annualization Period. The Applicable Minimum Employer
Contribution will be based on Compensation earned by the Last
Day Participants in the Applicable Estimated Tax
Annualization Period. The Applicable Minimum Employer
Contribution for each Plan Year shall be in an amount
determined by the Board of Directors by appropriate
resolution on or before the last day of the Applicable
Estimated Tax Annualization Period.
	 
	 	(b)	 	Allocation Method. Each Last Day Participant’s share
shall be determined as follows:

	 	(1)	 	The Applicable Minimum Employer
Contribution shall be allocated during the Plan Year
as Before-Tax Contributions described in Section 4.3
of the Plan, Matching Contributions described in
Section 4.3 of the Plan and Employer Profit Sharing
Contributions, described in Section 4.1 of the Plan,
to the Before-Tax Contributions Account, Matching
Contributions Account and Employer Profit Sharing
Contributions Accounts, respectively, of each Last Day
Participant pursuant to Article IV of the Plan.
	 
	 	(2)	 	Second, if any of the Applicable Minimum
Employer Contribution remains after the allocation in
paragraph (1), above, the remainder shall, to the
extent allowable under

29

 

	 	 	 	Section 415 of Code, be allocated as an additional
Matching Contribution on the last day of the Plan
Year to each Last Day Participant’s Matching
Contributions Account, in the ratio that such Last
Day Participant’s Before-Tax Contributions during
the Plan Year bears to the Before-Tax Contributions
of all Last Day Participants during the Plan Year.
	 
	 	 	 	The Applicable Minimum Employer Contributions
allocated as an additional Matching Contribution
shall be treated in the same manner as Matching
Contributions for all purposes of the Plan.
	 
	 	(3)	 	Third, any balance of the Applicable
Minimum Employer Contribution remaining unallocated
after the allocation in paragraphs (1) and (2), above,
shall be allocated as an Employer Profit Sharing
Contribution to each Last Day Participant’s Employer
Profit Sharing Contributions Account, in the ratio
that the Last Day Participant’s Compensation during
the Plan Year bears to the total Compensation of all
Last Day Participants during the Plan Year.
	 
	 	(4)	 	The Administrator shall reduce the
proportionate allocation under paragraphs (1), (2) and
(3) above, to Participants who are Highly Compensated
Employees, to the extent necessary to comply with the
provisions of Section 401(a)(4) of the Code and the
regulations thereunder. Any such amount will be
allocated and reallocated to the remaining
Participants to the extent allowed under Section 415
of the Internal Revenue Code.

	 	 	 	Notwithstanding any other provision of the Plan to the
contrary, any allocation of Before-Tax Contributions to a
Last Day Participant’s Before-Tax Contributions Account
shall be made under Section 4.3 or this Section, as
appropriate, but not both sections. Similarly, any
allocation of Matching Contributions or Employer Profit
Sharing Contributions to a Last Day Participant’s Matching
Contributions Account or Employer Profit Sharing
Contributions Account shall be made under Sections 4.3 or
4.1, respectively, or this Section, as appropriate, but not
both sections.
	 
	 	(c)	 	Timing, Medium and Posting. The Employer shall make
the Applicable Minimum Employer Contribution in cash, in one
or more installments without interest, at any time during the
Plan Year, and for purposes of deducting such Contribution,
not later than the Employer’s federal tax filing date,
including extensions,

30

 

	 	 	 	for its Tax Year that ends within such Plan Year. The
Trustee shall post such amount to each Last Day
Participant’s Before-Tax Contributions Account, Matching
Contributions Account or Employer Profit Sharing
Contributions Account, as appropriate, once the allocations
under Section 4.14(b), above, are determined.
	 
	 	 	 	The Applicable Minimum Employer Contribution shall be held
in a suspense account until posted. Such suspense account
shall not participate in the allocation of investment
gains, losses, income and deductions of the trust as a
whole, but shall be invested separately. All gains,
losses, income and deductions attributable to such suspense
account shall be applied to reduce Plan fees and expenses.
In no event will amounts remain in the suspense account
after the end of the Plan Year.
	 
	 	(d)	 	Deduction Limitation. In no event shall the
Applicable Minimum Employer Contribution, when aggregated
with other Employer and Participant contributions for the
Employer’s Tax Year that ends within such Plan Year, exceed
the amount deductible by the Employer for federal income tax
purposes for such Tax Year.”

     4.15 Specified Minimum Employer Contribution. Notwithstanding any
provision of the Plan to the contrary, the following provisions shall govern
the treatment of Specified Minimum Employer Contributions.

	 	(a)	 	Frequency and Eligibility. For each Plan Year
beginning on or after January 1, 2002, the Employer shall
make a discretionary Specified Minimum Employer Contribution
on behalf of the group of Employees who are Employees and
Plan Participants from the first day through the last day of
the Applicable Tax Year (First Day Participants). The
Specified Minimum Employer Contribution will be based on
Compensation earned by the First Day Participants in the
Applicable Tax Year. The Specified Minimum Employer
Contribution for each Plan Year shall be in an amount
determined by the Board of Directors by appropriate
resolution on or before the last day of the Applicable Tax
Year.
	 
	 	(b)	 	Allocation Method. Each First Day Participant’s share
shall be determined as follows:

	 	(1)	 	The Specified Minimum Employer
Contribution shall be allocated during the Plan Year
as Before-Tax Contributions described in Section 4.3
of the Plan, Matching Contributions described in
Section 4.3 of the Plan and Employer Profit Sharing
Contributions described in

31

 

	 	 	 	Section 4.1 of the Plan, to the Before-Tax
Contributions Account, Matching Contributions
Account and Employer Profit Sharing Contributions
Account, respectively, of each First Day Participant
pursuant to Article IV of the Plan.
	 
	 	(2)	 	Second, if any of the Specified Minimum
Employer Contribution remains after the allocation in
paragraph (1), above, the remainder shall, to the
extent allowable under Section 415 of the Code, be
allocated as an additional Matching Contribution on
the last day of the Plan Year to each First Day
Participant’s Matching Contributions Account, in the
ratio that such First Day Participant’s Before-Tax
Contributions during the Plan Year bears to the
Before-Tax Contributions of all First Day Participants
during the Plan Year.
	 
	 	 	 	The Specified Minimum Employer Contributions
allocated as an additional Matching Contribution
shall be treated in the same manner as Matching
Contributions for all purposes of the Plan.
	 
	 	(3)	 	Third, any balance of the Specified
Minimum Employer Contribution remaining unallocated
after the allocation in paragraphs (1) and (2), above,
shall be allocated as an Employer Profit Sharing
Contribution to each First Day Participant’s Employer
Profit Sharing Contributions Account, in the ratio
that the First Day Participant’s Compensation during
the Plan Year bears to the total Compensation of all
First Day Participants during the Plan Year.
	 
	 	(4)	 	The Administrator shall reduce the
proportionate allocation under paragraphs (1), (2) and
(3), above, to Participants who are Highly Compensated
Employees to the extent necessary to comply with the
provisions of Section 401(a)(4) of the Code and the
regulations thereunder. Any such amount will be
allocated and reallocated to the remaining
Participants to the extent allowed under Section 415
of the Code.

	 	 	 	Notwithstanding any other provision of the Plan to the
contrary, any allocation of Before-Tax Contributions to a
First Day Participant’s Before-Tax Contributions Account
shall be made under Section 4.3 or this Section, as
appropriate, but not both sections. Similarly, any
allocation of Matching Contributions or Employer Profit
Sharing Contributions to a First Day Participant’s Matching
Contributions Account or Employer Profit Sharing

32

 

	 	 	 	Contributions Account shall be made under Sections 4.3 or
4.1, respectively, or this Section, as appropriate, but not
both sections.
	 
	 	(c)	 	Timing, Medium and Posting. The Employer shall make
the Specified Minimum Employer Contribution in cash, in one
or more installments without interest, at any time during the
Plan Year, and for purposes of deducting such Contribution,
not later than the Employer’s federal tax filing date,
including extensions, for its Tax Year that ends within such
Plan Year. The Trustee shall post such amount to each First
Day Participant’s Before-Tax Contributions Account, Matching
Contributions Account and Employer Profit Sharing
Contributions Account, as appropriate, once the allocations
under Section 4.15 above, are determined.
	 
	 	 	 	The Specified Minimum Employer Contribution shall be held
in a suspense account until posted. Such suspense account
shall not participate in the allocation of investment
gains, losses, income and deductions of the trust as a
whole, but shall be invested separately. All gains,
losses, income and deductions attributable to such suspense
account shall be applied to reduce Plan fees and expenses.
In no event will amounts remain in the suspense account
after the end of the Plan Year.
	 
	 	(d)	 	Deduction Limitation. In no event shall the Specified
Minimum Employer Contribution, when aggregated with other
Employer and Participant contributions for the Employer’s Tax
Year that ends within such Plan Year, exceed the amount
deductible by the Employer for federal income tax purposes
for such Tax Year .”

Article V. Vesting in Accounts

     5.1 After-Tax, Before-Tax and Rollover Contributions Accounts. A Member
shall at all times be fully vested and have a nonforfeitable interest in his
After-Tax Contributions Account, his Before-Tax Contributions Account and his
Rollover Contributions Account.

     5.2 Employer Profit Sharing and Matching Contributions Accounts

	 	(a)	 	General. A Member who (1) became a Participant prior
to January 1, 2001, or (2) was an Employee on or before
January 1, 2000 and became a Participant on January 1, 2001
after completion of one year of Eligibility Service, or (3)
was an Employee prior to January 1, 2001 and became a
Participant after that date pursuant to section 3.1(a), shall
at all times have a 100 percent vested and nonforfeitable
interest in his Employer Profit Sharing and Matching
Contributions Accounts.

33

 

	 	 	 	A Member not described in the preceding sentence shall have
a zero percent vested and nonforfeitable interest in his
Employer Profit Sharing and Matching Contributions Accounts
until the date the Member completes three years of Vesting
Service, and shall become 100 percent vested in such
Accounts on that date. Such Member includes an individual
who first became an Employee during the Plan Year ending
December 31, 2000 and pursuant to Plan provisions in effect
on that date made an election to become a Participant on
January 1, 2001 and to be subject to the three-year vesting
schedule provided in this section 5.2(a) with respect to
Employer Matching Contributions and Employer Profit Sharing
Contributions
	 
	 	(b)	 	Accelerated Vesting. Notwithstanding subsection (a)
above, a Member shall be fully vested and have a
nonforfeitable interest in his entire Employer Profit Sharing
and Matching Contributions Accounts on the earliest date on
which —

	 	(1)	 	he attains his Retirement Age while
employed by the Company or an Affiliate;
	 
	 	(2)	 	he dies or suffers a Disability while
employed by the Company or an Affiliate; or
	 
	 	(3)	 	while he is employed by the Company or
an Affiliate, contributions to the Plan are completely
discontinued or the Plan is terminated, or the Plan is
partially terminated and such Member is affected by
such partial termination.

     5.3 Vesting Service. A Member shall be credited with one year of Vesting
Service for each Plan Year in which the individual completed at least 1000
Hours of Service, subject to the following rules:

	 	(a)	 	Years of Vesting Service completed after
a period of One-Year Breaks in Service shall not be
required to be taken into account for purposes of
determining the non-forfeitable percentage of a
Member’s accrued benefit derived from contributions
which occurred prior to such period if the number of
consecutive One-Year Breaks in Service within such
period equals or exceeds five.
	 
	 	(b)	 	In the case of a Participant who does
not have any nonforfeitable right to an accrued
benefit under the Plan, Years of Service with the
Employer before a One-Year Break in Service shall not
be taken into account if the number of consecutive
One-Year Breaks in Service equals or exceeds five, or
if greater, the aggregate number of

34

 

	 	 	 	Years of Service before such period. If any Years
of Service are not required to be taken into account
by reason of a period of One-Year Breaks in Service
to which this paragraph applies, such Years of
Service shall not be taken into account in applying
this paragraph to a subsequent period of One-Year
Breaks in Service.
	 
	 	(c)	 	For purposes of determining the Vesting
Service of an individual who is an employee of United
States National Bank of Red Lodge on the date such
organization first becomes an Affiliate, service
previously completed by the individual as an employee
of such organization (including service for any
affiliated or predecessor entity taken into account
for eligibility purposes in a qualified pension or
profit sharing plan maintained by such organization)
shall be taken into account to the same extent as
service completed for an Employer.

     5.4 Forfeiture of Nonvested Amounts. If any portion of a Participant’s
Account is non-vested upon the Participant’s separation from Service, the
non-vested amount shall be retained in such Account until the earlier of the
following events:

	 	(a)	 	the terminated Participant incurs five consecutive
One-Year Breaks in Service, or
	 
	 	(b)	 	prior to the close of the second Plan Year following
the Plan Year in which the Participant separates from
Service, the terminated Participant receives a distribution
of his entire nonforfeitable accrued benefit under the Plan.

     Upon the occurrence of the earlier of the events specified in (a) and (b),
the non-vested portion of the terminated Participant’s Account shall be
immediately forfeited and shall be transferred to a separate Forfeiture account
until reallocated in accordance with this section.

     In the event the non-vested portion of a terminated Participant’s Account
is forfeited upon a distribution of such Participant’s entire nonforfeitable
accrued benefit, the amount forfeited shall be restored to the Participant’s
Account, unadjusted for gains or losses of the Trust subsequent to the
distribution, if the Participant is reemployed by the Employer or an Affiliate
and repays the amount of the distribution before the earlier of five years
after the date on which the Participant is first subsequently reemployed by the
Employer or Affiliate, or the close of the first period of five consecutive
One-Year Breaks in Service commencing after the distribution.

     For purposes of this section, a Participant who has no vested interest in
his Account at the time of separation from Service shall be deemed to have
received a distribution of his entire nonforfeitable accrued benefit under the
Plan at such time, and

35

 

shall be deemed to have repaid the amount of such distribution at the time
of any subsequent employment of the individual by the Employer or an Affiliate.

     Amounts forfeited hereunder during any Plan Year shall be reallocated, as
of the last day of the Plan Year, among the Accounts of reemployed Participants
to the extent this section 5.4 requires the restoration to such Accounts of
amounts previously forfeited. If amounts forfeited during the Plan Year do not
equal or exceed the amount of restorations required for the Plan year, the
Employer shall contribute, in addition to the contributions provided in
sections 4.1 and 4.3, the amount necessary to fund such required restorations.
The Employer’s contribution shall be made no later than the close of the Plan
Year next following the Plan Year during which such restorations are required.
To the extent not reallocated among the Accounts of reemployed Participants,
amounts forfeited under this paragraph shall be applied to reduce future
Employer Matching and/or Employer Profit Sharing Contributions.

Article VI. Distributions and Withdrawals

     6.1 Distribution Upon Retirement, Death, or Disability. Subject to
section 6.3, upon a Member’s separation from Service after his Retirement Age
or because of his Disability or death, the full amount of Member’s Before-Tax,
After-Tax and Rollover Contributions Accounts and the vested portion of his
Employer Profit Sharing and Matching Contributions Accounts shall be
distributed or made available to the Member, or in the case of death of the
Member, to his Beneficiary. The distribution shall be made in a lump sum or in
installments as determined by the Member, or by his Beneficiary (except that a
Member may direct prior to his death the method by which his Account shall be
payable in the event of his death).

     At the time of electing a distribution in installments, a Member or
Beneficiary must elect which of the following methods shall govern the
determination of the amount of each installment in the series:

	 	(a)	 	Fixed Period Method. Under this method, a fixed
number of annual installments must be elected, and the amount
of each installment shall equal the quotient obtained by
dividing the vested Account at the beginning of the year by
the number of unpaid annual installments remaining (including
the installment being calculated). The Member or Beneficiary
may elect (1) to receive each annual installment on a single
Distribution Date each calendar year; (2) to receive the
annual installment for a year in four equal quarterly
payments, payable on the first Distribution Date in each
calendar quarter; or (3) to receive the annual installment in
twelve equal payments, on each Distribution Date during the
year. This method of distribution shall cease to be
applicable if the amount of any payment is less than $25.
	 
	 	(b)	 	Fixed Amount Method. Under this method, the amount of
each annual, quarterly or monthly installment shall be a
single fixed

36

 

	 	 	 	dollar amount elected by the Member or Beneficiary, which,
shall not exceed the “Applicable Percentage” of the
Member’s vested Account at the time the series of
distributions commences. In the case of an annual,
quarterly or monthly distribution, the “Applicable
Percentage” shall be 10%, 2.5% or 0.83%, respectively. The
installment amount shall be paid to the Member or
Beneficiary (1) on a single Distribution Date each calendar
year; in the case of an annual installments; (2) on the
first Distribution Date in each calendar quarter; in the
case of quarterly installments; or (3) on each Distribution
Date during the year, in the case of monthly installments.
Installment payments shall continue until the balance of
the vested Account on the applicable Distribution Date is
less than or equal to the installment amount elected by the
Member or Beneficiary, whereupon the remainder of the
vested Account shall be distributed as the final
installment. If the aggregate amount of the installments
to be distributed during a calendar year under this method
is less than the amount, if any, required to be distributed
to the Member or Beneficiary during the year under section
6.5, the Plan Administrator shall cause the Trustee to
distribute the difference to the Member or Beneficiary
within the time required by section 6.5.
	 
	 	(c)	 	Minimum Distribution Method. If distribution of the
Member’s vested Account is commenced during a calendar year
in which a minimum distribution is required under section
6.5, the Member or Beneficiary may elect to receive an amount
each year which is equal to the required minimum distribution
for the year. The Member or Beneficiary may elect to receive
the annual amount in one annual, four quarterly or twelve
monthly payments as provided in paragraph (a).

     A Member or Beneficiary who has elected an installment distribution may
elect to withdraw an additional amount at the time of receiving any single
installment, by so notifying the Plan Administrator at least three days and not
more than 60 days in advance of the date on which the installment would
otherwise become payable, or may elect to change the method of distribution of
future installments by making a new election in accordance with paragraph (a),
(b) or (c) hereof. For purposes of applying paragraphs (a), (b) and (c) when
there is a change in the method of computing future installments, the series of
installments shall be deemed to commence with the first installment for which
the change is to be made effective. All installment distributions shall be
subject to the requirements of section 6.5, and Code section 401(a)(9) and the
Regulations thereunder.

     The portion of an Account which has not been distributed to a Member or
Beneficiary under an installment distribution shall continue to be subject to
periodic revaluation under section 9.4. If a Member entitled to receive or
receiving distribution under this section 6.1 should die prior to the time he
has received the full distribution

37

 

from the Plan to which he is entitled, then the amount to which he is
entitled at the date of his death shall be distributed to the Member’s
Beneficiary by any of the methods specified above.

     6.2 Distribution upon Termination of Employment for Reasons Other Than
Retirement, Death, or Disability. Subject to section 6.3, upon a Member’s
separation from Service for any reason other than his retirement, death, or
Disability, the full amount of the Member’s Before-Tax, After-Tax and Rollover
Contributions Accounts, and the vested portion of his Employer Profit Sharing
and Matching Contributions Accounts shall be distributed or made available to
him.

     When a Member receives a distribution of the entire vested portion of his
Accounts pursuant to this section 6.2, the portions of his Employer Profit
Sharing and Matching Contributions Accounts which are not vested as of his
termination of employment shall become a Forfeiture if and to the extent
provided in section 5.4.

     Distributions pursuant to this section 6.2 shall be made to the Member in
a lump sum.

     If a former Participant dies after such separation from Service but prior
to receiving the full distribution from the Trust Fund to which he is entitled
under this section 6.2 as specified above, any unpaid balance thereof at the
time of his death shall be distributed to the Member’s Beneficiary in a lump
sum, to be distributed as soon as practicable after his death.

     6.3 Consent to Early Distributions.

	 	(a)	 	No Consent Required. If a Member separates from
Service and his vested Account balance is not in excess of
$5,000, the Member will receive a distribution of the value
of that vested portion of his Account without his consent.
	 
	 	(b)	 	Consent Required. Where the Member’s vested Account
balance is in excess of $5,000, any payment to the Member
under the Plan prior to the Member’s sixty-second birthday
may not be made without the Member’s written consent. A
Member’s consent to an early distribution shall not be valid
unless the Member has received notice containing a general
description of the material features and an explanation of
the relative values of the optional forms of benefit
available under the Plan (if any) and information regarding
the Member’s right, if any, to defer receipt of the
distribution. Such information must be provided to a Member
no less than 30 days and no more than 90 days before payment
under the Plan is scheduled to begin. The Member’s written
consent must not be made more than 90 days before payment
under the Plan is scheduled to begin. Notwithstanding the
foregoing, such

38

 

	 	 	 	distribution may commence less than 30 days after the
notice is given, provided that—
	 

	 	(1)	 	the Plan Administrator clearly informs
the Member that the Member has a right to a period of
at least 30 days after receiving the notice to
consider the decision of whether or not to elect a
distribution (and, if applicable, a particular
distribution option), and
	 
	 	(2)	 	the Member, after receiving the notice,
affirmatively elects a distribution.
	 

	 	(c)	 	For distributions made after December 31, 2001 with
respect to Participants who separated from service after such
date, for purposes of determining whether a Participant’s
nonforfeitable Account Balance exceeds $5,000 under this
Section 6.3, 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 income 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 less than or equal to $5,000, the plan shall
immediately distribute the participant’s entire
nonforfeitable Account balance pursuant to paragraph (a)
hereof.

     6.4 Time of Distribution. A distribution under section 6.1 or 6.2 shall
be made or commence as of the first Distribution Date following the month in
which the Member separated from Service or, if the distribution is subject to
section 6.3(b), any Distribution Date thereafter as elected by the Member or
the Beneficiary of a deceased Member.

     Unless the Member otherwise elects, distribution of the Member’s Account
balance shall commence not later than the 60th day after the close of the Plan
Year in which the latest of the following events occurs:

	 	(a)	 	The attainment by the Member of his Retirement Age;
	 
	 	(b)	 	The 10th anniversary of the date on which the Member
commenced participation in the Plan:
	 
	 	(c)	 	The termination of the Member’s Service;

provided, however, that the foregoing shall not require the commencement of
benefits prior to the “Required Beginning Date” described in section 6.5 unless
the Participant has filed a claim for benefits with the Plan Administrator.

39

 

     6.5 Required Minimum Distributions.

	 	(a)	 	Effective Date. The provisions of this Section will
apply for purposes of determining required minimum
distributions for calendar years beginning with the 2003
calendar year, as well as required minimum distributions for
the 2002 Distribution Calendar Year that are made on or after
January 1, 2003. Required minimum distributions for calendar
years prior to January 1, 2003 shall be governed by the Plan
provisions in effect prior to that date.
	 
	 	(b)	 	Precedence. The requirements of this Section will
take precedence over any inconsistent provisions of the Plan.
	 
	 	(c)	 	Requirements of Treasury Regulations Incorporated.
All distributions required under this Section will be
determined and made in accordance with the Regulations under
section 401(a)(9) of the Internal Revenue Code.
	 
	 	(d)	 	Required Beginning Date. A Participant’s entire
interest will be distributed, or begin to be distributed, to
the Participant no later than the Participant’s Required
Beginning Date.
	 
	 	(e)	 	Death of Participant Before Distributions Begin. If
the Participant dies before distributions begin, the
Participant’s entire interest will be distributed, or begin
to be distributed, no later than as follows:
	 

	 	(1)	 	If the Participant’s surviving spouse is
the Participant’s sole Designated Beneficiary, then,
except as provided in subsection (e)(3), distributions
to the surviving spouse will begin by December 31 of
the calendar year immediately following the calendar
year in which the Participant died, or by December 31
of the calendar year in which the Participant would
have attained age 70 1/2, if later.
	 
	 	(2)	 	If the Participant’s surviving spouse is
not the Participant’s sole Designated Beneficiary,
then, except as provided in the subsection (e)(3),
distributions to the Designated Beneficiary will begin
by December 31 of the calendar year immediately
following the calendar year in which the Participant
died.
	 
	 	(3)	 	Participants or Beneficiaries may elect
on an individual basis whether the 5-year rule or the
Life Expectancy rule in subsection (j)(1) applies to
distributions after the death of a Participant who has
a Designated Beneficiary. The election

40

 

	 	 	 	must be made no later than the earlier of September
30 of the calendar year in which distribution would
be required to begin under subsections (e)(1) and
(e)(2), or by September 30 of the calendar year
which contains the fifth anniversary of the
Participant’s (or, if applicable, surviving
spouse’s) death. If neither the Participant nor
Beneficiary makes an election under this paragraph,
distributions will be made in accordance with
subsections (e)(1), (e)(2) and (j)(1).
	 
	 	(4)	 	If there is no Designated Beneficiary as
of September 30 of the year following the year of the
Participant’s death, the Participant’s entire interest
will be distributed by December 31 of the calendar
year containing the fifth anniversary of the
Participant’s death.
	 
	 	(5)	 	If the Participant’s surviving spouse is
the Participant’s sole Designated Beneficiary and the
surviving spouse dies after the Participant but before
distributions to the surviving spouse begin, this
subsection (e), other than subsection (e)(1), will
apply as if the surviving spouse were the Participant.
	 

	 	 	 	For purposes of this subsection (e) and subsections (i) and
(j), unless subsection (e)(5) applies, distributions are
considered to begin on the Participant’s Required Beginning
Date. If subsection (e)(5) applies, distributions are
considered to begin on the date distributions are required
to begin to the surviving spouse under subsection (e)(1).
If distributions under an annuity purchased from an
insurance company irrevocably commence to the Participant
before the Participant’s Required Beginning Date (or to the
Participant’s surviving spouse before the date
distributions are required to begin to the surviving spouse
under subsection (e)(1)), the date distributions are
considered to begin is the date distributions actually
commence.
	 
	 	(f)	 	Forms of Distribution. Unless the Participant’s
interest is distributed in the form of an annuity purchased
from an insurance company or in a single sum on or before the
Required Beginning Date, as of the first Distribution
Calendar Year distributions will be made in accordance with
subsections (g) through (j) of this Section. If the
Participant’s interest is distributed in the form of an
annuity purchased from an insurance company, distributions
thereunder will be made in accordance with the requirements
of section 401(a)(9) of the Code and the Treasury
regulations.

41

 

	 	(g)	 	Amount of Required Minimum Distribution For Each
Distribution Calendar Year During Participant’s Lifetime.
During the Participant’s lifetime, the minimum amount that
will be distributed for each Distribution Calendar Year is
the lesser of:
	 

	 	(1)	 	The quotient obtained by dividing the
Participant’s Account Balance by the distribution
period in the Uniform Lifetime Table set forth in
section 1.401(a)(9)-9 of the Regulations, using the
Participant’s age as of the Participant’s birthday in
the Distribution Calendar Year; or
	 
	 	(2)	 	If the Participant’s sole Designated
Beneficiary for the Distribution Calendar Year is the
Participant’s spouse, the quotient obtained by
dividing the Participant’s Account Balance by the
number in the Joint and Last Survivor Table set forth
in section 1.401(a)(9)-9 of the Regulations, using the
Participant’s and spouse’s attained ages as of the
Participant’s and spouse’s birthdays in the
Distribution Calendar Year.
	 

	 	(h)	 	Lifetime Required Minimum Distributions Continue
Through Year of Participant’s Death. Required minimum
distributions will be determined under subsection (g)
beginning with the first Distribution Calendar Year and up to
and including the Distribution Calendar Year that includes
the Participant’s date of death.
	 
	 	(i)	 	Death On or After Date Distributions Begin. If the
Participant dies on or after the date distributions begin,
required minimum distributions shall be determined as
follows:
	 

	 	(1)	 	Participant Survived by Designated
Beneficiary. If the Participant dies on or after the
date distributions begin and there is a Designated
Beneficiary, the minimum amount that will be
distributed for each Distribution Calendar Year after
the year of the Participant’s death is the quotient
obtained by dividing the Participant’s Account Balance
by the longer of the remaining Life Expectancy of the
Participant or the remaining Life Expectancy of the
Participant’s Designated Beneficiary, determined as
follows:
	 

	 	(A)	 	The Participant’s
remaining Life Expectancy is calculated using
the age of the Participant in the year of
death, reduced by one for each subsequent year.

42

 

	 	(B)	 	If the Participant’s
surviving spouse is the Participant’s sole
Designated Beneficiary, the remaining Life
Expectancy of the surviving spouse is
calculated for each Distribution Calendar Year
after the year of the Participant’s death using
the surviving spouse’s age as of the spouse’s
birthday in that year. For Distribution
Calendar Years after the year of the surviving
spouse’s death, the remaining Life Expectancy
of the surviving spouse is calculated using the
age of the surviving spouse as of the spouse’s
birthday in the calendar year of the spouse’s
death, reduced by one for each subsequent
calendar year.
	 
	 	(C)	 	If the Participant’s
surviving spouse is not the Participant’s sole
Designated Beneficiary, the Designated
Beneficiary’s remaining Life Expectancy is
calculated using the age of the Beneficiary in
the year following the year of the
Participant’s death, reduced by one for each
subsequent year.
	 

	 	(2)	 	No Designated Beneficiary. If the
Participant dies on or after the date distributions
begin and there is no Designated Beneficiary as of
September 30 of the year after the year of the
Participant’s death, the minimum amount that will be
distributed for each Distribution Calendar Year after
the year of the Participant’s death is the quotient
obtained by dividing the Participant’s Account Balance
by the Participant’s remaining Life Expectancy
calculated using the age of the Participant in the
year of death, reduced by one for each subsequent
year.
	 

	 	(j)	 	Death Before Date Distributions Begin. If the
Participant dies before the date distributions begin,
required minimum distributions shall be determined as
follows:
	 

	 	(1)	 	Participant Survived by Designated
Beneficiary. Except as provided in subsection (e)(3),
if the Participant dies before the date distributions
begin and there is a Designated Beneficiary, the
minimum amount that will be distributed for each
Distribution Calendar Year after the year of the
Participant’s death is the quotient obtained by
dividing the Participant’s Account Balance by the
remaining Life Expectancy of the Participant’s
Designated Beneficiary, determined as provided in
subsection (i).

43

 

	 	(2)	 	No Designated Beneficiary. If the
Participant dies before the date distributions begin
and there is no Designated Beneficiary as of September
30 of the year following the year of the Participant’s
death, distribution of the Participant’s entire
interest will be completed by December 31 of the
calendar year containing the fifth anniversary of the
Participant’s death.
	 
	 	(3)	 	Death of Surviving Spouse Before
Distributions to Surviving Spouse Are Required to
Begin. If the Participant dies before the date
distributions begin, the Participant’s surviving
spouse is the Participant’s sole Designated
Beneficiary, and the surviving spouse dies before
distributions are required to begin to the surviving
spouse under subsection (e)(1), this subsection (j)
will apply as if the surviving spouse were the
Participant.
	 

	 	(k)	 	Definitions. The following definitions shall be
applicable for purposes of this Section 4.6:
	 

	 	(1)	 	“Designated Beneficiary” shall mean the
individual who is designated as the Beneficiary under
Section 4.4 of the Plan and is the Designated
Beneficiary under section 401(a)(9) of the Internal
Revenue Code and section 1.401(a)(9)-1, Q&A-4, of the
Regulations.
	 
	 	(2)	 	“Distribution Calendar Year” shall mean
a calendar year for which a minimum distribution is
required. For distributions beginning before the
Participant’s death, the first Distribution Calendar
Year is the calendar year immediately preceding the
calendar year which contains the Participant’s
Required Beginning Date. For distributions beginning
after the Participant’s death, the first Distribution
Calendar Year is the calendar year in which
distributions are required to begin under subsection
(e). The required minimum distribution for the
Participant’s first Distribution Calendar Year will be
made on or before the Participant’s Required Beginning
Date. The required minimum distribution for other
Distribution Calendar Years, including the required
minimum distribution for the Distribution Calendar
Year in which the Participant’s Required Beginning
Date occurs, will be made on or before December 31 of
that Distribution Calendar Year.
	 
	 	(3)	 	“Life Expectancy” shall mean Life
Expectancy as computed by use of the Single Life Table
in section

44

 

	 	 	 	1.401(a)(9)-9 of the Treasury regulations.
	 
	 	(4)	 	“Participant’s Account Balance” shall
mean the Account Balance as of the last Valuation Date
in the calendar year immediately preceding the
Distribution Calendar Year (valuation calendar year)
increased by the amount of any contributions made and
allocated or forfeitures allocated to the Account
Balance as of dates in the valuation calendar year
after the valuation date and decreased by
distributions made in the valuation calendar year
after the valuation date. The Account Balance for the
valuation calendar year includes any amounts rolled
over or transferred to the Plan either in the
valuation calendar year or in the Distribution
Calendar Year if distributed or transferred in the
valuation calendar year.
	 
	 	(5)	 	“Required Beginning Date” shall mean
April 1st of the calendar year following the later of
(1) the calendar year in which the Member attains age
70-1/2 or (2) the calendar year in which the Member
retires, provided, however, that this clause (2) shall
not apply in the case of a Member who is a “Five
Percent Owner” (as defined in Code section
416(i)(1)(B)) with respect to the Plan Year ending in
the calendar year in which he attains age 70-1/2, and,
in the case of a Member who becomes a Five Percent
Owner during any subsequent Plan Year, clause (2)
shall no longer apply and the Required Beginning Date
shall be the April 1st of the calendar year following
the calendar year in which such subsequent Plan Year
ends.
	 

	 	(l)	 	TEFRA Section 242(b) Elections. Notwithstanding the
other provisions of this Section 4.6, distributions may be
made under a designation made before January 1, 1984, in
accordance with Section 242(b)(2) of the Tax Equity and
Fiscal Responsibility Act (“TEFRA”) and Section 4.13 of the
Plan.

     6.6 Withdrawals.

	 	(a)	 	General. Each request for a withdrawal shall be
submitted on a form prescribed by the Plan Administrator.
Subject to section 6.3, the Plan Administrator may require
that a request for a withdrawal be submitted within a certain
period of time prior to a Distribution Date; and that each
withdrawal be made as soon as administratively possible after
such Distribution Date.

45

 

	 	(b)	 	Withdrawals.
	 

	 	(1)	 	Each Member may request a partial or
total withdrawal of his After-Tax Contributions
Account as of any Distribution Date.
	 
	 	(2)	 	Each Member may request a partial or
total withdrawal of the vested portion of his Matching
Contributions Account and/or his Employer Profit
Sharing Contributions Account prior to the Member’s
termination of employment as of any January 15, but
only if one of the following conditions is met:
	 

	 	(A)	 	the withdrawal is made
after the Employee has been a Participant in
the Plan for five years or more; or
	 
	 	(B)	 	the withdrawal represents
a Matching Contribution amount or an Employer
Profit Sharing Contribution amount that has
been a part of the Trust Fund for at least two
years.
	 

	 	 	 	In addition, each Member who has attained age
591⁄2 may request a partial or total withdrawal of
the vested portion of his Matching Contributions
Account and/or Employer Profit Sharing Contributions
Account as of any Distribution Date.
	 
	 	(3)	 	Each Member may request a partial or
total withdrawal of the vested portion of his Matching
Contributions Account and/or his Employer Profit
Sharing Contributions Account prior to the Member’s
termination of employment, but only if the withdrawal
is made on account of a financial hardship as
described in section 6.8 below.
	 
	 	(4)	 	Each Member may request a partial or
total withdrawal of his Before-Tax Contributions
Account, but only if the withdrawal is after his
attainment of age 591⁄2 or is because of a financial
hardship. Financial hardship shall be limited to the
situations described in section 6.8 below.
	 
	 	 	 	In addition, a Member’s request for a withdrawal on
account of financial hardship must be accompanied or
supplemented by such evidence of hardship as the
Plan Administrator may reasonably require. Such
evidence will include representations from the
Participant that the need cannot be relieved—

46

 

	 	(A)	 	through reimbursement or
compensation by insurance or otherwise,
	 
	 	(B)	 	by reasonable liquidation
of the Participant’s assets, to the extent such
liquidation would not itself cause an immediate
and heavy financial need;
	 
	 	(C)	 	by cessation of Before-Tax
Contributions under the Plan; or
	 
	 	(D)	 	by other distributions or
nontaxable (at the time of the loan) loans from
plans maintained by the Employer, or any
employer, or by borrowing from commercial
sources on reasonable commercial terms.
	 

	 	 	 	For purposes of these requirements, the
Participant’s resources shall be deemed to include
the assets of the Participant’s spouse and minor
children that are reasonably available to the
Participant.
	 
	 	 	 	Approval or disapproval of such withdrawal request
shall be within the sole discretion of the Plan
Administrator. The Plan Administrator shall be
entitled to reasonably rely upon such representation
by the Participant and shall not make an independent
investigation of the Participant’s financial
affairs. The amount of the withdrawal shall be
limited to that amount necessary to meet the
immediate financial needs created by the hardship.
	 
	 	 	 	Upon the withdrawal of any part of a Member’s
Before-Tax Contributions Account under this
paragraph (4), any election of Before-Tax
Contributions by that Member shall be cancelled.
The Member shall next be permitted to have
Before-Tax Contributions made on his behalf as
follows:
	 

	 	(i)	 	A Member who receives a
distribution of Before-Tax Contributions before
calendar year 2002 on account of “financial
hardship” shall next be permitted to have
Before-Tax Contributions made on his behalf on
or after the January 1, April 1, July 1, or
October 1 coincident with or next following the
first anniversary of such withdrawal, by making
a new election in accordance with section
4.3(a).
	 
	 	(ii)	 	A Member who receives a
distribution of Before-

47

 

	 	 	 	Tax Contributions after December 31, 2001, on
account of “financial hardship” shall be
prohibited from having Before Tax
Contributions made on his account under this
Plan, and shall be prohibited from making
elective deferrals and employee contributions
under all other plans of the Employer, for six
months after receipt of the distribution. The
Participant may resume having Before-Tax
Contributions made on his behalf as of the
first day of any month following the six-month
period of suspension, by making a new election
in accordance section 4.3(a).
	 

	 	 	 	A distribution from a Member’s Before-Tax
Contributions Account which is made on account of
“financial hardship” may not include earnings
credited to a Member’s Before-Tax Contributions
Account on or after January 1, 1989.
	 
	 	(5)	 	Each Member may request a partial or
total withdrawal of part or all of his Rollover
Contributions Account as of any Distribution Date.
	 

	 	(c)	 	Accounting for After-Tax Contributions. The Plan
Administrator may establish and maintain such accounts as may
be deemed advisable to determine the Participant’s After-Tax
Contributions (and any earnings on such After-Tax
Contributions) for taxation of any such withdrawals made
pursuant to this section 6.6.

     6.7 Loans. Each Member or beneficiary of a Member (collectively referred
to in this section as “borrower”) may, with the approval of the Plan
Administrator, borrow amounts from the borrower’s Account, but only if the loan
is because of the circumstances set forth in subsection (a) below. The Plan
Administrator shall promulgate and may, from time to time, amend a loan
procedure document which is incorporated by reference herein. The Plan
Administrator may also adopt rules limiting the number of loans that may be
made in any Plan Year by each borrower, may prescribe a minimum amount that may
be borrowed, and may establish other rules relating to loans made under this
section. Each request for a loan shall be submitted on a form prescribed by the
Plan Administrator. Each loan shall be made as of a Valuation Date coincident
with or next following the request for the loan; the Plan Administrator may
require that a request for a loan be submitted within a certain period of time
prior to such Valuation Date; and each loan shall be made as soon as
administratively possible after such Valuation Date. The Plan Administrator, in
its sole discretion, may direct the Trustee to make a loan to a borrower,
secured by 50 percent of the vested amount in the borrower’s Account. The terms
of such loan shall be determined in the sole discretion of the Plan
Administrator, subject to the following conditions:

48

 

	 	(a)	 	Loans shall only be made in the event of-
	 

	 	(1)	 	the purchase, construction, or
remodeling of a primary residence,
	 
	 	(2)	 	the payment of tuition and other
educational expenses for a family member of the
borrower for the next 12 months,
	 
	 	(3)	 	the payment of financial obligations
incurred because of sickness, accident, death, or
disability in the borrower’s immediate family,
	 
	 	(4)	 	any other event that would be considered
a financial hardship by the Plan Administrator
pursuant to uniform guidelines applied in a
nondiscriminatory fashion.
	 

	 	(b)	 	A borrower’s Account may be used as security for such
loan to the extent that 50 percent of the sum of the
borrower’s vested Account is sufficient to cover such loan as
of the date of the loan (when added to the outstanding
balance of all other loans to the borrower for such
borrower’s Account).
	 
	 	(c)	 	The term of such loan shall not exceed five years (15
years in the case of a loan for the acquisition of a
principal residence of the borrower). To the extent that
such borrower’s Account becomes payable, such unpaid amount
shall be deducted from the amount otherwise payable from the
borrower’s Account.
	 
	 	(d)	 	Such loan shall bear a reasonable rate of interest,
which shall be commensurate with the interest rates being
charged at the time such loan is made under similar
circumstances by financial institutions in the community in
which the Employer’s principal office is then located.
	 
	 	(e)	 	The amount of such loan (when added to the outstanding
balance of all other loans to the borrower from the
borrower’s Account) shall not exceed the lesser of—
	 

	 	(1)	 	$50,000, reduced by the excess (if any) of —
	 

	 	(A)	 	the highest outstanding
balance of loans from the Plan during the
one-year period ending on the day before the
loan was made, over
	 
	 	(B)	 	the outstanding balance of
loans from the Plan on the date the loan is
made; or
	 

	 	(2)	 	50 percent of the vested and
nonforfeitable portion of such

49

 

		
	 	     borrower’s Account at the relevant time.

	 	 	 	Notwithstanding the preceding provisions of this
subsection, in no event shall the outstanding balance of
such loan exceed 50 percent of such borrower’s vested
Account, or such lower percentage as the Plan Administrator
in its sole discretion may impose by the adoption of a
rule.
	 
	 	(f)	 	Such loan shall be evidenced by a promissory note, in
such form and containing such terms and conditions as the
Plan Administrator from time to time directs.
	 
	 	(g)	 	Payments of principal and interest shall be made by
approximately equal payments, at least quarterly, on a basis
that would permit such loan to be levelly amortized over its
term. Prepayments of principal and interest may be made, in
whole or in part, at any time without penalty. Payments from
Participants (other than prepayments) shall be made by
payroll deduction.
	 
	 	(h)	 	Appropriate disclosure shall be made pursuant to the
Truth in Lending Act to the extent applicable.
	 
	 	(i)	 	Amounts of principal and interest received on a loan
shall be credited to such borrower’s Account, and the
outstanding loan balance shall be considered an investment of
the assets of such Account.
	 
	 	(j)	 	Loans shall be deemed to have been made on a pro rata
basis from the available funds of each of the Investment
Funds in which such borrower’s Account is invested, except
that amounts invested in the Company stock Investment Fund
shall not be taken into account unless requested by the
borrower. All loan repayments shall be reinvested in
accordance with the borrower’s current investment directive
in effect under section 7.3.
	 
	 	(k)	 	Foreclosure on an Account used as security for a loan
shall be deferred until a permissible distribution may occur
under the terms of the Plan. If a default in the payment of
any loan or installment thereon remains uncured for thirty
days after written notice of such default is either hand
delivered or mailed to the borrower by certified mail, return
receipt requested, and the borrower has retired, become
disabled, separated from Service, has attained age 59-1/2, or
is a beneficiary of a deceased Member with respect to the
Account which secures the loan, then the Plan Administrator
shall direct the Trustee to reduce the borrower’s Account by
the unpaid balance of the loan, including interest, to the
extent of the security interest held by the Plan, and to teat the amount
of such 

50

 

	 	 	 	reduction as a payment on the loan. Such reduction
of the borrower’s Account shall be considered a
distribution and shall be subject to the consent
requirements set forth in section 6.3; provided, however,
that pursuant to Regulations under Code sections 401(a)(11)
and 411 such consent requirements shall be deemed satisfied
as of the time the borrower agreed to use his Account as
security for the loan.

     6.8 Financial Hardship. For purposes of sections 6.6(b)(3) and
6.6(b)(4), financial hardship means one of the following situations:

	 	(a)	 	Financial obligations incurred by a Member because of
sickness, accident, death, or disability in his immediate
family which he is not able to pay for out of liquid assets
or current cash flow.
	 
	 	(b)	 	Inability to purchase out of liquid assets or current
cash flow, or otherwise reasonably finance, the purchase of a
primary residence for a Member’s immediate family.
	 
	 	(c)	 	Inability to pay out of liquid assets or current cash
flow, or otherwise reasonably finance, an education for a
person in a Member’s immediate family.
	 
	 	(d)	 	Situations permitted by final Regulations under Code
section 401(k).
	 
	 	(e)	 	Situations permitted by written hardship guidelines
approved by the Plan Administrator.

     6.9
Eligible Rollover Distribution.

	 	(a)	 	Notwithstanding any provision of the Plan to the
contrary that would otherwise limit a distributee’s election
under this section, a distributee may elect, at the time and
in the manner prescribed by the Plan Administrator, to have
any portion of an eligible rollover distribution from this
Plan paid directly to an eligible retirement plan specified
by the distributee in a direct rollover.
	 
	 	(b)	 	Definitions—
	 

	 	(1)	 	An eligible rollover distribution is any
distribution of all or any portion of the balance to
the credit of the distributee, except that an eligible
rollover distribution does not include:
	 

	 	(A)	 	Any distribution that is
one of a series of substantially equal periodic payments (not
less

51

 

	 	 	 	frequently than annually) made for the
life (or life expectancy) of the distributee
or the joint lives (or joint life
expectancies) of the distributee and the
distributee’s designated beneficiary, or for a
specified period of ten years or more;
	 
	 	(B)	 	Any distribution to the
extent such distribution is required under Code
section 401(a)(9);
	 
	 	(C)	 	Any distribution made
after December 31, 2001 on account of a
Member’s financial hardship; and
	 
	 	(D)	 	The portion of any
distribution that is not includible in gross
income (determined without regard to the
exclusion for net unrealized appreciation with
respect to employer securities).
Notwithstanding the foregoing, 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.
	 

	 	(2)	 	An eligible retirement plan is an
individual retirement account described in Section
408(a) of the Code, an individual retirement annuity
described in Section 408(b) of the Code, an annuity
plan or contract described in Section 403(a) or 403(b)
of the Code, or a qualified trust described in Section
401(a) of the Code, that accepts the distributee’s
eligible rollover distribution. “Eligible retirement
plan” shall also mean 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.
However, in the case of an eligible rollover
distribution to the surviving spouse prior to January 1, 2002, an eligible retirement plan

52

 

	 	 	 	is limited to an individual
retirement account or individual retirement annuity.
	 
	 	(3)	 	A distributee includes an Employee or
former Employee. In addition, the Employee’s or former
Employee’s surviving spouse and the Employee’s or
former Employee’s spouse or former spouse who is the
alternate payee under a qualified domestic relations
order, as defined in Code section 414(p), are
distributees with regard to the interest of the spouse
or former spouse.
	 
	 	(4)	 	A direct rollover is a payment by the
Plan to the eligible retirement plan specified by the
distributee.

Article VII. Investment Elections

     7.1 Investment of Accounts. At the times and in the manner provided in
section 7.3, each Member may elect to have his Account, other than the portion
thereof which is invested in Company stock, be invested in any one or more of
the Investment Funds, either by electing one of the model portfolios, if any,
offered by the Plan Administrator pursuant to section 7.2, or by self-directing
the specific percentages of the Account to be invested in each Investment Fund.
Self-directed investment of the Account in one or more Investment Funds and/or
model portfolios shall be in such increments as may be permitted by the Plan
Administrator on a uniform and nondiscriminatory basis. The Member’s election
shall apply to the investment of his Account, if any, existing at the time of
such election, other than the portion thereof which is invested in Company
stock, and to future After-Tax, Before-Tax, Employer Profit Sharing, Matching
and Rollover Contributions made on his behalf, until the Member changes his
election as provided in section 7.3. A Member may direct the investment of a
portion of his Account in Company stock only through an investment transfer
governed by Article VIII.

     7.2 Model Portfolios. The Plan Administrator may from time to time
establish one or more model portfolios each of which is offered to Members as a
specific investment option. Each model portfolio shall consist of a mix, in
specified percentages, of some or all of the Investment Funds, not including
the stock fund described in Article VIII. If a Member chooses to invest his
Account in a model portfolio, the Member shall be deemed to have instructed the
Plan Administrator to direct the investment of his Account, other than any
portion thereof invested in Company stock, and any future After-Tax,
Before-Tax, Employer Profit Sharing, Matching and Rollover Contributions made
on his behalf, in the specific Investment Funds and in the respective
percentages designated for that model portfolio, and to rebalance his Account
according to the same percentages from time to time under rules established by
the Plan Administrator for periodic rebalancing of model portfolio Accounts,
until the member changes his election pursuant to section 7.3.

53

 

     7.3 Investment Elections. Each Member may make the elections described
in section 7.1 and change such elections within a reasonable time after first
becoming a Participant, and from time to time in accordance with procedures
established by the Plan Administrator. The Plan Administrator may permit the
making and changing of such elections through the completion and filing of
election forms, or through internet and/or voice response facilities, or any
combination of the foregoing, provided that the election procedures shall
permit Members and Beneficiaries to give investment instructions no less
frequently than once within any three month period. If a Member fails to make
an election, that Member shall be deemed to have elected to invest in a default
Investment Fund or model portfolio selected by the Plan Administrator.

     7.4 Transfer of Assets. The Plan Administrator shall direct the Trustee
to transfer moneys or other property from the appropriate Investment Fund to
the other Investment Fund as may be necessary to carry out the aggregate
transfer transactions after the Plan Administrator has caused the necessary
entries to be made in the Members’ Accounts in the Investment Funds and has
reconciled offsetting transfer elections, in accordance with uniform rules
established by the Plan Administrator.

     7.5 Consequence of Investment Elections. In accordance with section
404(c) of ERISA and regulations thereunder, the provisions of this Article VII
are intended to protect the Plan, the Employer, the Plan Administrator and the
Trustee from liability for investment results where a Member exercises control
over the assets in his Plan Account. In complying with such section of ERISA,
the Plan Administrator shall be the fiduciary designated to provide information
to Members, receive Member’s investment instructions, and provide written
confirmation of investment elections to Members.

Article VIII. Company Stock

     8.1 An Investment Fund. Notwithstanding anything to the contrary in this
Plan, the Investment Fund consisting of Company stock, established as of
January 1, 1995 under section 2.1(cc), shall be governed by the provisions of
this Article.

     8.2 Purchase of Shares. The shares of Company stock available for
purposes of the Plan shall be purchased by the Trustee from the Company or from
such other person or persons and at such time or times as the Trustee may in
its sole discretion determine. Company stock may or may not be available for
purchase in a given Plan Year.

     If available, full shares of Company stock may be purchased (effective as
of such date as designated by the Plan Administrator) by the Member’s election
(made during the time period designated by the Plan Administrator) to transfer
assets from other Investment Funds into Company stock; provided, however, that—

	 	(a)	 	Rollover Contributions Account assets shall not be
used to purchase stock; and

54

 

	 	(b)	 	the maximum investment in Company stock shall, at the
time of the election, in no event exceed 50 percent of the
Member’s Account balance less the Rollover Contributions
Account.

     The purchase price shall be the price of the Company stock as determined
by an independent financial appraisal firm as of the last preceding Valuation
Date for which an appraisal has been issued.

     In the event the total request for purchase of Company stock when offered
exceeds the amount available at that time, the shares of available Company
stock will be allocated on a proportionate basis with each Member receiving a
number of shares equal to the number of shares available multiplied by a
fraction, the numerator of which is the number of shares such Member requested,
and the denominator of which is the total number of shares requested by all
Members.

     The Plan Administrator, in its discretion may set a limit for the minimum
number of shares that must be purchased to participate in the offering. This
amount shall be set by the Plan Administrator for administrative purposes.

     The Plan Administrator may limit the class of Members who shall be
eligible to request the purchase of Company stock at the time of any offering
thereof, to those who are active Participants in the Plan.

     8.3 Valuing Stock. When valuing Company stock for any purpose under this
Plan, except as otherwise specifically provided in section 8.2, the price of
the Company stock, as determined by an independent financial appraisal firm as
of the last preceding Valuation Date for which an appraisal has been issued
before the effective date of any transfer, distribution, withdrawal, or loan,
shall be used in determining the equivalent cash value (for the purpose of an
investment transfer, distribution, withdrawal or loan) of Company stock shares.

     8.4 Crediting of Stock to Account. As of the end of each calendar
quarter, the Account (or appropriate subaccount) of each Member shall be
credited with the value of shares of Company stock, adjusted for appreciation
or depreciation as determined by an independent financial appraisal firm.

     8.5 Dividends. As of the end of each calendar quarter, any cash stock
dividend declared during such calendar quarter shall be invested on the
Member’s behalf in accordance with the Member’s current investment directive in
effect under section 7.3.

     8.6 Transfers From Company Stock Investment Fund. A Member may transfer
assets held in the Company stock Investment Fund to one or more other
Investment Funds as described in section 7.1, based upon the equivalent cash
value of the Company stock described in section 8.3.

55

 

     8.7 Distributions and Stock. In the event of a distribution under
Article VI, such shares of Company stock used as the source of the distribution
shall be converted to cash, based on the value of said stock as described in
section 8.3.

     8.8 Withdrawals of Company Stock. In the event of a permissible
withdrawal under section 6.6, such shares of Company stock used as the source
of the withdrawal shall be converted to cash, based on the value of said stock
as described in section 8.3.

     8.9 Loans and Stock. In the event of a loan under section 6.7, such
shares of Company stock used as the source of the loan shall be converted to
cash, based on the value of said stock as described in section 8.3.

     Repayments of the loan shall not be invested in Company stock, but shall
be invested as described in section 6.7(j)—that is, based upon the borrower’s
current investment election under section 7.1.

     8.10 Voting of Stock.

	 	(a)	 	Prior to each meeting of stockholders of the
Company, each Member will be furnished any proxy material
relating to such meeting, together with a form to be sent to
the Trustee on which may be set forth the Member’s
instructions as to the manner of voting the shares of Company
stock then held by the Trustee under the Plan to the extent
of the Member’s proportionate interest therein. Upon receipt
of such instructions, the Trustee shall vote such shares in
accordance therewith.
	 
	 	(b)	 	If, within such reasonable period of time prior
to such stockholders’ meeting as may be specified by the
Trustee, no instructions have been received by the Trustee
from a Member, the Trustee shall vote such shares, in person
or by proxy, in accordance with the voting instructions
received from a majority of the Members for which it holds
shares.

     8.11 Tender Offers. As soon as practicable after being informed of the
commencement of a tender offer or exchange offer (“Offer”) for shares of
Company stock, the Company shall use reasonable best efforts to cause each
Member, whose Account has credited to it any shares of Company stock, to be
advised in writing of the terms of the Offer, together with forms by which the
Member may instruct the Trustee, or revoke such instruction, to tender shares
credited to his Account, to the extent permitted under the terms of any such
Offer. The Trustee shall follow the directions of each Member but the Trustee
shall not tender such shares for which no instructions are received. The number
of shares of Company stock with respect to which a Member may provide
instructions shall be the total number of shares of Company stock credited to
the Member’s Account, whether or not the shares are vested, as of the last
Valuation Date for which an appraisal has been issued before the month during
which the Offer commenced or such other date which may be designated by the
Company, in its sole discretion, as it

56

 

deems appropriate for reasons of administrative convenience. The giving of
the instructions to the Trustee to tender shares and the tender thereof shall
not be deemed a withdrawal or suspension from the Plan or a forfeiture of any
portion of the Member’s interest in the Plan. Any securities received by the
Trustee as a result of a tender of shares of Company stock hereunder shall be
held, and any cash so received shall be invested in short-term investments, for
the account of each Member with respect to whom shares of Company stock were
tendered pending any reinvestment by the Trustee, as it may deem appropriate,
consistent with the purposes of the Plan, or in any investment option of the
Plan as the Member may direct under the terms of the Plan.

Article IX. Accounts and Records of the Plan

     9.1 Accounts and Records. The Accounts and records of the Plan shall be
maintained by the Plan Administrator and shall accurately disclose the status
of the Accounts of each Member or his Beneficiary in the Plan.

     Each Member shall be advised from time to time, at least once during each
Plan Year, as to the status of his Account.

     9.2 Trust Fund. Each Member shall have an undivided proportionate
interest in the Trust Fund which shall be measured by the proportion that the
value of his Account bears to the total value of all Accounts as of the date
that such interest is being determined.

     9.3 Valuation and Allocation of Expenses. As of each Valuation Date, the
Plan Administrator, with the assistance of the Trustee, shall determine the
fair market value of the Trust Fund after first deducting any expenses which
have not been paid by the Employers and the Members. Unless paid by the
Employers, all reasonable costs and expenses incurred in connection with the
general administration of the Plan and Trust shall be chargeable to the Trust
Fund. Administrative expenses incurred in connection with the processing of
any loan, distribution or withdrawal, other than a distribution pursuant to a
qualified domestic relations order, shall be charged to the Member’s or
Beneficiary’s Account from which the loan or distribution is made.

     9.4 Allocation of Earnings and Losses. As of each Valuation Date, the
Plan Administrator, with the assistance of the Trustee, shall allocate the net
earnings and gains or losses of each Investment Fund of the Trust Fund since
the preceding Valuation Date to each Member’s Account in the same proportion
that the value of his Account invested in such Investment Fund bears to the
total value of all Accounts invested in such Investment Fund; and, for this
purpose, the Plan Administrator shall adopt uniform rules which conform to
generally accepted accounting practices. The foregoing shall not apply to the
loan fund which shall be accounted for separately such that interest on a
Member’s loan is credited solely to such Member’s Account.

57

 

Article X. Financing

     10.1 Financing. The Company shall enter into a Trust Agreement in order
to implement and carry out the provisions of the Plan and to finance the
benefits under the Plan. All rights which may accrue to any person under the
Plan shall be subject to all the terms and provisions of such Trust Agreement,
except to the extent any term or provision of such Trust Agreement may conflict
with the terms of the Plan. The Company may modify the Trust Agreement from
time to time to accomplish the purposes of the Plan.

     10.2 Contributions. The Employers shall make such contributions to the
Trust Fund as are required by the provisions of the Plan, subject to the right
of the Company to discontinue the Plan at any time and for any reason.

     10.3 Nonreversion. No Employer shall have any right, title, or interest
in the contributions made to the Trust Fund, and no part of the Trust Fund
shall revert to any Employer, except that if a contribution is made to the
Trust Fund by an Employer by a mistake of fact, then such contribution may be
returned to such Employer within one year after the payment of the
contribution; and if any part or all of a contribution is disallowed as a
deduction under Code section 404 (and the Employer hereby conditions all
contributions upon deductibility under the Code), then to the extent such
contribution is disallowed as a deduction it will be returned to such Employer
within one year after the disallowance.

     10.4 Rights in the Trust Fund. Persons eligible for benefits under the
Plan are entitled to look only to the Trust Fund for the payment of such
benefits and have no claim against any Employer, the Plan Administrator, or any
other person. No person has any right or interest in the Trust Fund except as
expressly provided in the Plan.

Article XI. Committee and Administration

     11.1 Committee. The Board may appoint a Committee of three or more
members, to hold office at the pleasure of the Board, for the purpose of
administering the Plan. If so appointed, the Committee shall be the “plan
administrator” of the Plan in accordance with ERISA (the “Plan Administrator”),
and shall be a fiduciary under the Plan and Trust Agreement and a named
fiduciary in accordance with ERISA. Provided, however, that should the Board
not appoint a Committee as provided herein, or if at any time all the Committee
seats are vacant due to resignation, death or removal of all Committee members,
the Company shall constitute the Plan Administrator and named fiduciary and
shall have all of the powers and duties herein otherwise conferred upon the
Committee.

     11.2 Organization. The Committee shall choose from its members a
chairman and a secretary. The secretary shall keep minutes of the Committee’s
proceedings and shall keep all dates, records, and documents pertaining to the
Committee’s administration of the Plan. The Committee may employ and suitably
compensate such attorneys and

58

 

advisors and such clerical and other services as it may deem necessary in
the performance of its duties.

     11.3 Manner of Action. A majority of the members of the Committee at the
time in office shall constitute a quorum for the transaction of business.
Action of the Committee at any meeting shall be determined by the vote of a
majority of those members present at such meeting. Upon the written concurrence
of a majority of the members at the time in office, action of the Committee may
be taken without a meeting. Either the chairman or the secretary may execute
any certificate or other written direction on behalf of the Committee.

     11.4 Self-Interest. A member of the Committee who is also a Member shall
not vote on any question relating specifically to himself.

     11.5 Compensation and Expenses.

	 	(a)	 	A member of the Committee shall serve without
compensation for his services as such if he is an Employee;
however, he may receive reimbursement of expenses properly
and actually incurred.
	 
	 	(b)	 	All reasonable expenses of the Plan Administrator, the
Committee or a member of the Committee which are properly and
actually incurred shall be chargeable to the Trust Fund as
administrative expenses unless paid by the Employers.

     11.6 Powers. The Plan Administrator, on behalf of the Members, shall
enforce the Plan in accordance with the terms of the Plan and Trust Agreement
and shall have all powers necessary and the sole and absolute discretion to
accomplish that purpose including, but not by way of limitation, the following:

	 	(a)	 	to determine conclusively all questions of fact,
including those relating to the eligibility of Employees to
become Participants;
	 
	 	(b)	 	to compute and certify to the Trustee the amount and
kind of benefits payable to Members;
	 
	 	(c)	 	to authorize all disbursements by the Trustee from the
Trust Fund;
	 
	 	(d)	 	to discuss the investment of the Trust Fund with the
Trustee;
	 
	 	(e)	 	to interpret conclusively the terms and provisions of
the Plan;
	 
	 	(f)	 	to make and publish such uniform and nondiscriminatory
rules for the Plan as are not inconsistent with the
provisions hereof; and
	 
	 	(g)	 	to make or cause to be made all reports and filings
necessary to meet its responsibilities under ERISA concerning
reporting and

59

 

	 	 	 	disclosure requirements.

     11.7 Information. To enable the Plan Administrator to perform its
functions, the Employers shall supply full and timely information to the Plan
Administrator of all matters relating to the compensation of all Members, their
retirement, death, or other cause for termination of employment, and such other
pertinent facts as the Plan Administrator may require. The Plan Administrator
shall advise the Trustee of such of the foregoing facts as may be pertinent to
the Trustee’s duties.

     11.8 Claim Procedure. If any person believes he is being denied any
rights or benefits under the Plan, such person (the “Claimant”) may file a
claim in writing ( a “Claim”) with the Committee, and the Committee will review
and make a determination with respect to such Claim in accordance with the
following procedures:

	 	(a)	 	Claim not Involving Determination of Disability. If
the Claim does not require the Committee to make a
determination regarding the existence of a condition of
disability (i.e., is not a “Disability Claim as hereinbelow
defined), the Committee will notify the Claimant of its
determination within 90 days after the Claim was filed. If
special circumstances require an extension of time for
processing the Claim, the 90-day period may be extended to
180 days, in which case the Committee shall notify the
Claimant within the first 90 days, and the notice of
extension shall state the circumstances which require the
extension and the date by which the Committee expects to make
a decision.
	 
	 	(b)	 	Claim Involving Determination of Disability. If the
Claim requires the Committee to make a determination
regarding the existence of a condition of disability (a
“Disability Claim”), the Committee will notify the Claimant
of its determination within 45 days after the Claim was
filed. If special circumstances outside the control of the
Committee require an extension of time for processing the
Claim, the 45-day period may be extended to 75 days, in which
case the Committee shall notify the Claimant within the first
45 days, and the notice of extension shall state the
following:
	 

	 	(1)	 	The circumstances which require the
extension;
	 
	 	(2)	 	The date by which the Committee expects
to make a decision;
	 
	 	(3)	 	The standards on which the Claimant’s
entitlement to a benefit is based; and
	 
	 	(4)	 	The additional information needed to
resolve those issues.

60

 

	 	 	 	The Claimant will be given at least 45 days to provide any
additional information requested in the notice of
extension. If necessary due to circumstances outside the
control of the Committee, the Committee may extend the
period for making the decision for an additional 30 days,
by notifying the Claimant in the same manner before the end
of the initial 30-day period.
	 
	 	(c)	 	Notice of Denial of Claim. If any Claim is wholly or
partially denied, the Committee will notify the Claimant of
its decision in writing. Such notification will be written
in a manner calculated to be understood by such person and
will contain:
	 

	 	(1)	 	The specific reason or reasons for the denial;
	 
	 	(2)	 	Specific reference to the pertinent plan
provisions on which the denial is based;
	 
	 	(3)	 	A description of any additional material
or information, if any, the Claimant must provide in
order to have a valid Claim and an explanation of why
such material or information is necessary;
	 
	 	(4)	 	A description of the Plan’s review
procedures and the time limits that apply to those
procedures, including a statement of the Claimant’s
right to file a lawsuit if the Claim is denied on
review; and
	 
	 	(5)	 	In the case of a denied Disability
Claim, a copy of any internal rule, guideline,
protocol or similar guideline which the Committee
relied upon to reach its decision, or a statement that
upon request the Claimant will be provided such copy
free of charge.
	 

	 	(d)	 	Request for Review of Denied Claim. Within 60 days
after the Claimant receives notice of the Committee’s denial
of a Claim, (180 days in the case of a denied Disability
Claim) the Claimant may appeal the decision of the Committee
by giving the Committee written notice requesting a review of
the Claim. The Committee will then review the Claim and make
a decision on it.
	 
	 	(e)	 	Access to Documents and Submission of Comments. A
Claimant who requests review of a denied Claim must be
provided, free of charge, access to, and copies of, all
documents, records, and other information relevant to the
Claim (“Information”). Information is considered “relevant”
to the claim if it meets any of the following requirements:

61

 

	 	(1)	 	The Information was relied upon by the
Committee in reaching its decision; or
	 
	 	(2)	 	The Information was submitted to the
Committee, or considered by the Committee, or
generated in the process of the Committee reaching its
decision; or
	 
	 	(3)	 	The Information demonstrates that the
Committee complied with administrative processes and
safeguards that ensure that its decision was made in
accordance with the Plan and that, where appropriate,
the Plan provisions have been applied consistently to
other individuals in similar circumstances; or
	 
	 	(4)	 	The Information is a statement of policy
or guidance concerning the denial of Plan benefits for
Disability with respect to the Claimant’s medical
diagnosis, whether or not the Committee relied on this
information in deciding the Claim.

	 	 	Prior to the review by the Committee, the Claimant and any
representative selected by the Claimant shall be given an
opportunity to submit written comments, documents, records
and other information relating to the Claim.

	 	(f)	 	Review of Claim. The Committee’s review of a denied
Claim will take into account all comments, documents, records
and other information submitted by or on behalf of the
Claimant and relating to the Claim, whether or not the
information was submitted to the Committee or considered by
it when the Claim was initially denied.
	 
	 	(g)	 	Review of Denied Disability Claim. In reviewing a
denied Disability Claim, the Committee will consult with a
health care professional who has appropriate medical training
and experience for purposes of making any determination that
is based in whole or in part on medical judgment. The health
care professional must not be an individual who was consulted
by the Committee in connection with the original denial of
the Claim, or a subordinate of such a person. The Committee
will identify any medical or vocational experts whose advice
was obtained in connection with the denial of the Claim,
whether or not their advice was relied upon by the Committee.
	 
	 	(h)	 	Final Decision on Reviewed Claim. The Committee’s
final decision on review of a denied Claim shall be in
writing. If the Claim is denied on review, the written decision will
provide the

62

 

	 	 	Claimant with the following information:

	 	(1)	 	The specific reasons for the decision;
	 
	 	(2)	 	Reference to the specific Pan provisions
on which the decision is based;
	 
	 	(3)	 	A statement that the Claimant is
entitled to receive, on request, all Information
relevant to the Claim (determined in accordance with
subsection (e));
	 
	 	(4)	 	A statement of the Claimant’s right to
file a lawsuit under ERISA; and
	 
	 	(5)	 	In the case of a denied Disability
Claim, a copy of any internal rule, guideline,
protocol or similar guideline which the Committee
relied upon to reach its decision, or a statement that
upon request the Claimant will be provided such copy
free of charge.

	 
	 	(i)	 	Time Period for Review of Denied Claim. The decision
of the Committee shall be made within 60 days after the date
the Committee receives the initial request for review, or 45
days in the case of a Disability Claim. If special
circumstances require an extension of the time for processing
the request for review, the 60-day period may be extended to
120 days (90 days in the case of a Disability Claim). If the
Committee decides an extension is required, it shall notify
the Claimant before the initial period for review has
expired, and the notification shall inform the Claimant of
the circumstances which require the extension, and the date
by which the Committee expects to reach a decision.
	 
	 	(j)	 	Request for Further Information. If the Committee
extends the time period for deciding a Claim or reviewing a
denied claim due to the Claimant’s failure to submit
information needed for the decision, the notice of extension
will specify the information needed. The time period for the
Committee’s initial decision or decision on review (including
the extension) will be increased by the period from the date
the notice of extension is sent to the Claimant until the
date on which the Claimant responds to the request for
additional information.

     11.9 Notice of Address. Each person entitled to benefits from the Trust
Fund must file with his Employer or the Plan Administrator, in writing, his
post office address and each change of post office address. Any communication,
statement, or notice addressed to such a person at his latest reported post
office address will be binding upon

63

 

 him for all purposes of the Plan, and neither the Plan Administrator nor
any Employer or Trustee shall be obliged to search for or ascertain his
whereabouts.

     11.10 Application for Benefits and Data. All persons claiming benefits
from the Trust Fund must make application and furnish to the Plan Administrator
or its designated agent such documents, evidence, or information as the Plan
Administrator or its designated agent considers necessary or desirable for the
purpose of administering the Plan. Each such person must furnish such
information promptly and sign such documents as the Plan Administrator or its
designated agent may require before any benefits become payable from the Trust
Fund.

     11.11 Indemnity for Liability. The Company shall indemnify each member
of the Committee against any and all claims, losses, damages, and expenses,
including counsel fees, incurred by the Committee and against any liability,
including any amounts paid in settlement with the Committee’s approval, arising
from the member’s or Committee’s action or failure to act in connection with
the member’s or Committee’s duties and responsibilities under the Plan, except
when the same is judicially determined to be attributable to the gross
negligence or willful misconduct of such member. The Company shall also
indemnify each of its officers, directors and employees in the same manner as
provided for members of the Committee, or of the Company if acting as Plan
Administrator under section 11.1, which have been delegated to or assumed by
such individual.

     11.12 Effect of a Mistake. In the event of a mistake or misstatement as
to the eligibility or participation or Compensation of any Member, or the
amount of payments made or to be made to a Member or Beneficiary, the Plan
Administrator shall, if possible, cause to be withheld or accelerated or
otherwise make adjustment of such amounts of payments as will in its sole
judgment entitle the Member or Beneficiary to the proper amount of payments
under the Plan.

     11.13 Missing Persons. If the Plan Administrator shall be unable to
locate a Member or Beneficiary within two years after an Account becomes
payable, the Plan Administrator may mail a notice by registered mail to the
last known address of such person outlining the following action to be taken
unless such person makes written reply to the Plan Administrator within 60 days
from the mailing of such notice: The Plan Administrator may direct that the
amount of such Account shall be treated as a Forfeiture for the current Plan
Year; provided, however, that in the event of the subsequent reappearance of
such Member or Beneficiary prior to termination of the Plan, such Forfeiture
shall be restored to such Account. (Such restored Forfeiture shall be paid from
current Forfeitures to the extent they are sufficient, and thereafter from an
additional Employer contribution.)

     11.14 Appointment of Investment Manager. The Plan Administrator may
appoint any individual or entity which qualifies as an “investment manager”
within the meaning of section 3(38) of ERISA to serve as the investment manager
of the Trust Fund. The investment manager, prior to exercising its functions as
such, shall acknowledge its fiduciary status with respect to the Plan in
writing.

64

 

     11.15 Allocation of Fiduciary Responsibility. The Plan Administrator
shall be responsible for the duties and obligations imposed upon it pursuant to
the Plan and the Trust Agreement, including, but not limited to, the
administration of the Plan, the appointment of an investment manager, and
consultation with the Trustee as to the investment of the Trust Fund. The
Trustee shall be responsible for the duties and responsibilities assigned to it
pursuant to the Plan and the Trust Agreement; provided, however, that if an
investment manager is appointed, the Trustee shall be relieved of any and all
liability for the acts or omissions of the investment manager and shall not be
under any obligation to invest or otherwise manage any asset of the Trust Fund
which is subject to the management of the investment manager. The investment
manager shall be responsible for the investment of the portion of the Trust
Fund subject to its management, in accordance with the Trust Agreement. This
section is intended to allocate to each fiduciary the individual responsibility
for the prudent execution of the functions assigned to it, and none of such
responsibilities or any other responsibilities shall be shared by two or more
of the fiduciaries unless such sharing is specifically called for by a
provision of the Plan or the Trust Agreement. Whenever one fiduciary is
required by the Plan or the Trust Agreement to follow the directions of another
fiduciary, the two fiduciaries shall not be deemed to have been assigned a
shared responsibility. Rather, the giving of the directions shall be deemed to
be the sole responsibility of the fiduciary so charged, and the responsibility
of the fiduciary receiving those directions shall be to follow them insofar as
such instructions are on their face proper under applicable law.

     11.16 Agency. The Company and the Plan Administrator shall act as agent
for each Employer in the administration of the Plan.

Article XII. Amendment and Termination

     12.1
Amendment and Termination.

	 	(a)	 	The Company does hereby expressly and specifically
reserve the sole and exclusive right at any time and for any
reason, and from time to time, by action of its Board by
resolution at a corporate meeting or by corporate consent, to
amend, modify, or terminate the Plan. The Company’s right of
amendment, modification, or termination as aforesaid shall
not require the assent, concurrence, or any other action by
any other Employer, notwithstanding that such action by the
Company may relate in whole or in part to persons in the
employ of any Employer (including the Company).
	 
	 	(b)	 	While each Employer contemplates carrying out the
provisions of the Plan indefinitely with respect to its
Employees, no Employer shall be under any obligation or
liability whatsoever to maintain the Plan for any minimum or
other period of time.
	 
	 	(c)	 	Upon any termination of the Plan in its entirety, or
with respect to any Employer, the Company shall give written
notice thereof to the

65

 

	 	 	 	Trustee and any Employer involved, and such termination
shall be effective as of the later to occur of the date
specified in such notice or the date such notice is
delivered to the Trustee, subject to the provisions of the
law.
	 
	 	(d)	 	Except as provided by law, upon any termination of the
Plan, no Employer with respect to whom the Plan is terminated
(including the Company) shall thereafter be under any
obligation, liability, or responsibility whatsoever to make
any contribution or payment to the Trust Fund, the Plan, any
Member, any Beneficiary, or any other person, trust or fund
whatsoever, for any purpose whatsoever under or in connection
with the Plan, regardless of whether or not such Employer has
theretofore made the payments provided for under section 10.2
or under any other provision of the Plan.

     12.2 Limitations on Amendments. The provisions of this section are
subject to and limited by the following restrictions:

	 	(a)	 	No amendment shall operate either directly or
indirectly to give any Employer any interest whatsoever in
any funds or property held by the Trustee under the terms
hereof, or to permit corpus or income of the Trust to be used
for or diverted to purposes other than the exclusive benefit
of Members or their Beneficiaries.
	 
	 	(b)	 	Except as otherwise permitted by law or regulations,
no such amendment shall have the effect of eliminating or
reducing an early retirement benefit or a retirement type
subsidy or eliminating an optional form of benefit with
respect to benefits attributable to service before the
amendment.

     12.3 Effect of Bankruptcy and Other Contingencies Affecting the Employer.
In the event an Employer terminates its connection with the Plan, or in the
event an Employer is dissolved, liquidated, or shall by appropriate legal
proceedings be adjudged a bankrupt, or in the event judicial proceedings of any
kind result in the involuntary dissolution of an Employer, the Plan shall be
terminated with respect to such Employer. The merger, consolidation, or
reorganization of an Employer, or the sale by it of all or substantially all of
its assets, shall not terminate the Plan if there is delivery to such Employer
by the successor to such Employer or by the purchaser of all or substantially
all of its assets, a written instrument requesting that it be substituted for
the Employer and agreeing to perform all the provisions hereof which such
Employer is required to perform. Upon the receipt of said instrument, with the
approval of the Company, the successor or the purchaser shall be substituted
for such Employer herein, and such Employer shall be relieved and released from
any obligations of any kind, character, or description herein or in any trust
agreement imposed upon it.

     12.4 Limitation on Employer Liability. The adoption of the Plan is
strictly a voluntary undertaking on the part of the Employers and shall not be
deemed to constitute

66

 

 a contract between the Employers and any Employee or Member, or to be
consideration for, an inducement to or a condition of the employment of any
Employee. A Member, Employee, or Beneficiary shall not have any right to
retirement or other benefits except to the extent provided herein.

     12.5 Amendment of Vesting Schedule. If the Plan is amended to provide a
different vesting schedule, each person adversely affected—

	 	(a)	 	who is a Participant during the election period below;
and
	 
	 	(b)	 	who has completed at least three years of Service may
elect to have such amendment disregarded in determining the
vested percentage of his Employer Profit Sharing and Matching
Contributions Accounts. That election must be in writing and
delivered to the Plan Administrator

within the election period. Upon delivery, his election will be irrevocable.
The election period begins on the date such amendment is adopted and ends 60
days after the latest of the date—

	 	(1)	 	the amendment is adopted;
	 
	 	(2)	 	the amendment becomes effective; or
	 
	 	(3)	 	the Plan Administrator delivers a written notice of
the amendment to the Participant.

No amendment to the Plan’s vesting schedule may decrease the vesting which any
Member has earned as of the date of the amendment.

Article XIII. Miscellaneous

     13.1 Beneficiary Designation

	 	(a)	 	Each unmarried Member may designate, on a form
provided for that purpose by the Plan Administrator, a
Beneficiary or Beneficiaries to receive his interest in the
Plan in the event of his death, but such designation shall
not be effective for any purpose until it has been filed by
him during his lifetime with the Plan Administrator. He may,
from time to time during his lifetime, on a form approved by
and filed with the Plan Administrator, change his Beneficiary
or Beneficiaries. In the event that he fails to designate a
Beneficiary, or if for any reason such designation shall be
legally ineffective, or if all designated Beneficiaries
predecease him or die simultaneously with him, distribution
shall be made to his spouse; or if none, to his children; or
if none, to his parents; or if none, to his estate. If any
such Beneficiary shall die prior to

67

 

	 	 	 	receiving the distribution that would have been made to
such Beneficiary had such Beneficiary’s death not occurred,
then, for the purposes of the Plan, the distribution that
would have been received by such Beneficiary shall be made
to such Beneficiary’s estate.
	 
	 	(b)	 	The Beneficiary of each Member who is married shall be
the surviving spouse of such Member, unless such spouse
consents in writing to the designation of another Beneficiary
or Beneficiaries. Each married Member may, from time to time,
change his designation of Beneficiary; provided, however,
that the Member may not change his Beneficiary without the
written consent of his spouse, unless such spouse’s prior
consent expressly permits designations by the Member without
any requirement of further consent by the spouse.
	 
	 	(c)	 	The written consent described in subsection (b) of
this section shall acknowledge the effect of such election
and shall be witnessed by a Plan representative designated by
the Plan Administrator or a notary public.
	 
	 	(d)	 	Notwithstanding the foregoing, the spouse’s consent to
the designation or change of designation of a Beneficiary by
a Member shall not be required if it is established to the
satisfaction of the Plan Administrator that the consent may
not be obtained because there is no spouse, because the
spouse cannot be located, or because of such other
circumstances as the Secretary of the Treasury may by
Regulations prescribe.
	 
	 	(e)	 	If a Member’s interest is required to be distributed
to more than one Beneficiary, then unless otherwise provided
in the Member’s designation of Beneficiaries, the Member’s
interest shall be divided among the Beneficiaries in equal
shares (or such other proportionate shares as may be
specified in the designation of Beneficiaries) and a separate
Account shall be established for each such Beneficiary with
respect to the Beneficiary’s share until such share has been
entirely distributed to the Beneficiary. To the extent
permitted under applicable Regulations and the Plan, each
Beneficiary shall be entitled to elect any form of
distribution or other option provided by the Plan with
respect to the Beneficiary’s separate Account, without the
consent of any other Beneficiary.

     13.2 Incompetency. Whenever and as often as any person entitled to
receive a distribution under the Plan shall be under a legal disability or, in
the sole judgment of the Plan Administrator, shall otherwise be unable to care
for such distributions to his own best interest and advantage, the Plan
Administrator, in the exercise of its discretion, may direct such distributions
to be made in any one or more of the following ways:

68

 

	 	(a)	 	directly to such person;
	 
	 	(b)	 	to his spouse;
	 
	 	(c)	 	to his legal guardian or conservator; or
	 
	 	(d)	 	any other person to be held and used for his benefit.

The decision of the Plan Administrator shall, in each case, be final and
binding upon all parties, and any distribution made pursuant to the power
herein conferred on the Plan Administrator shall, to the extent so made, be a
complete discharge of the obligations under the Plan of the Employers, the
Trustee, and the Plan Administrator in respect of such person.

     13.3 Nonalienation. Except as provided in Code section 401(a)(13), no
benefit payable at any time under the Plan shall be subject in any manner to
alienation, sale, transfer, assignment, pledge, attachment, garnishment, or
encumbrance of any kind. Any attempt to alienate, sell, transfer, assign,
pledge, or otherwise encumber any such benefit, whether presently or thereafter
payable, shall be void. No benefit nor the Trust Fund shall in any manner be
liable for or subject to the debts or liabilities of any Member or of any other
person entitled to any benefit. The Plan Administrator shall establish
procedures to determine whether domestic relations orders are “qualified
domestic relations orders” and to administer distributions under such qualified
domestic relations orders.

     After September 22, 1993, if a Domestic Relations Order is presented to
the Plan and is determined to be a “Qualified Domestic Relations Order,” and if
such Order provides for distribution to an Alternate Payee of such Alternate
Payee’s entire interest under the Order in a single lump sum as of any
Valuation Date, the Plan shall make such distribution on or as soon as
administratively feasible after such specified Valuation Date. Except as
otherwise provided in the preceding sentence, distribution of benefits to an
Alternate Payee pursuant to a Qualified Domestic Relations Order shall be made
only at such time and in such manner as may be permitted by the Plan and by
applicable provisions of ERISA and the Code. For purposes of this section, the
terms “Domestic Relations Order,” “Qualified Domestic Relations Order,” and
“Alternate Payee” shall have the meanings given to such terms by Code section
414(p).

     13.4 Employment Rights. An Employer’s right to discipline or discharge
its Employees shall not be affected by reason of any of the provisions of the
Plan.

     13.5 Applicable Law. The Plan and all rights hereunder shall be governed
by and construed in accordance with the laws of Montana and of the United
States of America.

     13.6 Participation in the Plan by an Affiliate. Any Affiliate which
desires to become an Employer may, with the approval of the Board and subject
to such terms and conditions as the Board may prescribe, adopt the Plan and
Trust Agreement. In addition, any company which is not an Affiliate may become
an adopting employer with respect to

69

 

 its own employees, with the approval of the Board and subject to such
terms and conditions as the Board may prescribe.

     13.7 Merger, Consolidation, or Transfer. In the case of any merger or
consolidation of the Plan with, or in the case of any transfer of assets or
liabilities of the Plan to or from, any other plan, each Member shall receive a
benefit immediately after the merger, consolidation, or transfer (if the Plan
had then terminated) which is equal to or greater than the benefit he would
have been entitled to receive immediately before the merger, consolidation, or
transfer (if the Plan had then terminated), and any protected benefit under
Code section 411(d)(6) shall be preserved.

     13.8
Veterans’ Reemployment Rights. Notwithstanding any provision of the
Plan to the contrary, contributions, benefits and service credit with respect
to qualified military service will be provided in accordance with Code section
414(u).

Article XIV. Top-Heavy Provisions

     14.1 Application of Top-Heavy Provisions

	 	(a)	 	Single Plan Determination. Except as provided in
subsection (b)(2) below, for Plan Years beginning January 1,
1984, if as of a Determination Date, the sum of the amount of
the section 416 Accounts of Key Employees and the
Beneficiaries of deceased Key Employees exceeds 60 percent of
the amount of the section 416 Accounts of all Members and
Beneficiaries other than former Key Employees, the Plan is
top-heavy and the provisions of this Article will become
applicable.
	 
	 	(b)	 	Aggregation Group Determination.

	 
	 	(1)	 	If as of a Determination Date this Plan is part
of an Aggregation Group which is top-heavy, the provisions of
this Article will become applicable. Top-heaviness for the
purpose of this subsection will be determined with respect to
the Aggregation Group in the same manner as described in
subsection (a) above except that if the Aggregation Group
includes a defined benefit plan, the section 416 Account will
include the present value of the accrued benefit of a
participant or a beneficiary under that plan.
	 
	 	(2)	 	If this Plan is top-heavy under subsection (a)
above, but the Aggregation Group is not top-heavy, this
Article will not be applicable.

	 
	 	(c)	 	Responsibility. The Plan Administrator shall have
responsibility to make all calculations to determine whether
this Plan is top-heavy.

70

 

     14.2 Definitions.

	 	(a)	 	“Aggregation Group” means this Plan and all other
plans maintained by the Company and Affiliates which cover a
Key Employee and any other plan that enables a plan covering

a Key Employee to meet the requirements of Code sections
401(a)(4) or 410. In addition, at the election of the Plan
Administrator, the Aggregation Group may be expanded to
include any other qualified plan maintained by the Company or
an Affiliate if the expanded Aggregation Group meets the
requirements of Code sections 401(a)(4) and 410.
	 
	 	(b)	 	“Determination Date” means the last day of the Plan
Year immediately preceding the Plan Year for which
top-heaviness is to be determined, or in the case of the
first Plan Year of a new plan, the last day of such Plan
Year.
	 
	 	(c)	 	“Key Employee” means an 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 Section 415 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 Section 415 Compensation of more than
$150,000. The determination of who is a Key Employee will be
made in accordance with Code Section 416(i)(1) and the
applicable Regulations and other guidance of general
applicability issued thereunder. Any Member who is not a Key
Employee shall be a “non-Key Employee” for purposes of this
Article XIV.
	 
	 	(d)	 	“Section 416 Account” means—

	 
	 	(1)	 	the amount credited to a Member’s or
Beneficiary’s Account under the Plan or to an account under
any other qualified defined contribution plan which is part
of an Aggregation Group as of a Determination Date; plus
	 
	 	(2)	 	the present value of the accrued benefit
credited to a Member or Beneficiary under a qualified defined
benefit plan which is part of the Aggregation Group; and
	 
	 	(3)	 	the amount of distributions to the Member or
Beneficiary during the one-year period ending on a
Determination Date other than a distribution which is a
tax-free rollover contribution (or similar transfer) that is
not initiated by the Member or that is contributed

71

 

	 	 	 	to a plan which is maintained by the Company or an
Affiliate (except that in the case of a distribution made
for a reason other than separation from employment, death,
or disability, this provision shall be applied by
substituting “5-year period” for “1-year period); reduced
by

	 
	 	(4)	 	the amount of rollover contributions (or
similar transfer) and earnings thereon credited as of a
Determination Date under the Plan or a plan forming part of
an Aggregation Group which is attributable to rollover
contributions (or similar transfer) initiated by the Member
and derived from plans not maintained by the Company or an
Affiliate.

	 	 	The Account of a Member who was a Key Employee and who
subsequently meets none of the conditions of section
14.2(c) for the Plan Year containing the Determination Date
and the preceding four Plan Years is not a Section 416
Account and will be excluded from all computations under
this Article. Furthermore, if a Member has not performed
any services for the Company or an Affiliate during the
one-year period ending on the Determination Date, any
account of such Member (and any accrued benefit of such
Member) shall not be taken into account in computing
top-heaviness under this Article.

     14.3 Minimum Contribution.

	 	(a)	 	General. If this Plan is determined to be top-heavy
under the provisions of section 14.1 with respect to a Plan
Year, the sum of Employer Profit Sharing and Matching
Contributions and Forfeitures allocated under the Plan to the
account of each Active Participant (as defined in section
14.5) who is not a Key Employee and who is otherwise eligible
for such an allocation under the provisions of sections 4.2
and 4.3(b) of the Plan, together with employer contributions
(other than pay reduction contributions) and forfeitures
allocated to the accounts of the Participant under all other
qualified defined contribution plans in the Aggregation
Group, will not be less than 3 percent of the Active
Participant’s compensation (as defined in Regulation section
1.415-2(d)). This section will not apply to a Participant who
is also covered under a top-heavy defined benefit plan
maintained by the Company or an Affiliate which provides the
benefit specified by Code section 416(c)(1).
	 
	 	(b)	 	Exception. The contribution rate specified in
subsection (a) above will not exceed the percentage at which
employer contributions (including pay reduction
contributions) and forfeitures are

72

 

	 	 	 	allocated under the defined contribution plans of the
Aggregation Group to the account of the Key Employee for
whom such percentage is the highest for the Plan Year. For
the purpose of this subsection, the percentage for each Key
Employee will be determined by dividing the employer
contributions and forfeitures for the Key Employee by the
amount of his compensation (as defined in Treasury
Regulation section 1.415-2(d)) for the year.

     14.4 Active Participant. For the purpose of this Article XIV, an “Active
Participant” shall mean any Participant regardless of whether such Active
Participant is employed on the last day of the top-heavy Plan Year, and
regardless of whether such Active Participant made Before-Tax contributions
during the top-heavy Plan Year.

*   *   *   *   *   *   *   *   *   *

     In
Witness Whereof, the authorized officers of the Company have signed
this document on December 23, 2002, but effective as of January 1, 2002, or
such other dates as set forth herein or required by law.

	 	 	 	 	 
	 	 	First Interstate BancSystem, Inc.
	 	 	 	 	 
	 	 	
By
	 	   /s/ ROBERT A. JONES
	 	 	 	 	

	 	 	 	 	ROBERT A. JONES
	 	 	 	 	Senior Vice President, HAMG

73exv4w33

 

EXHIBIT 4.33

FIRST AMENDMENT TO SAVINGS AND PROFIT SHARING PLAN FOR

EMPLOYEES OF FIRST INTERSTATE BANCSYSTEM, INC. – 2002 RESTATEMENT

     The Savings and Profit Sharing Plan for Employees of First Interstate
BancSystem, Inc., as restated effective January 1, 2002 (the “Plan”), is hereby
amended as follows:

ARTICLE 1

     Paragraphs (3) and (4) of Section 2.1(k) of the Plan, “Compensation,” are
amended to read as follows, effective January 1, 1997 (i.e., as if included in
the January 1, 2001 restatement of the plan pursuant to the effective date
provisions contained in Section 1.1 thereof):

	 	(3)	 	Section 415 Compensation. For purposes of applying
the limits of section 415 of the Code, as described in
section 4.12, Compensation means an Employee’s compensation
as defined in section 415(c)(3) of the Code and the
applicable Regulations thereunder including, in Plan Years
ending after December 31, 1997, elective contributions that
are made by the Employer on behalf of the Employee which are
excludable from the Employee’s income under Code section 125
or section 402(h). For Plan Years beginning on and after
January 1, 2001, Section 415 Compensation paid or made
available during such years shall include elective amounts
that are not includible in the gross income of the Employee
by reason of Code Section 132(f)(4).
	 
	 	(4)	 	Annual Compensation Limit. For Plan Years beginning
on or after January 1, 1994 and prior to January 1, 2002, the
Annual Compensation of each Employee taken into account under
the Plan shall not exceed the OBRA ’93 annual compensation
limit. The OBRA ’93 Annual Compensation limit is $150,000, as
adjusted by the Secretary of the Treasury for increases in
the cost of living in accordance with section 401(a)(17)(B)
of the Code. 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, as defined in paragraphs (1)
and (2) hereof, during the Plan Year or such other
consecutive 12-month period over which Compensation is
otherwise determined under the plan (the “Determination
Period”). 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.

1

 

ARTICLE 2

     The fifth unlettered paragraph in subsection (b)(4) of Section 6.6 of the
Plan, “Withdrawals,” is amended to insert the phrase “on account of financial
hardship” after “under this paragraph (4),” and as so amended the entirety of
said paragraph (including subparagraphs (i) and (ii) thereof) shall read as
follows:

	 	 	Upon the withdrawal of any part of a Member’s Before-Tax
Contributions Account under this paragraph (4) on account of
“financial hardship,” any election of Before-Tax Contributions by
that Member shall be cancelled. The Member shall next be
permitted to have Before-Tax Contributions made on his behalf as
follows:

	 	(i)	 	A Member who receives a distribution of Before-Tax
Contributions before calendar year 2002 on account of
“financial hardship” shall next be permitted to have
Before-Tax Contributions made on his behalf on or after the
January 1, April 1, July 1, or October 1 coincident with or
next following the first anniversary of such withdrawal, by
making a new election in accordance with section 4.3(a).
	 
	 	(ii)	 	A Member who receives a distribution of Before-Tax
Contributions after December 31, 2001, on account of
“financial hardship” shall be prohibited from having Before
Tax Contributions made on his account under this Plan, and
shall be prohibited from making elective deferrals and
employee contributions under all other plans of the Employer,
for six months after receipt of the distribution. The
Participant may resume having Before-Tax Contributions made
on his behalf as of the first day of any month following the
six-month period of suspension, by making a new election in
accordance section 4.3(a).

ARTICLE 3

	 	 	Except as modified herein, all provisions of the Plan shall remain in full
force and effect.
DATED this 4th day of August, 2003.

	 	 	 	 	 
	 	 	FIRST INTERSTATE BANCSYSTEM, INC.
	 	 	 	 	 
	 	 	
By:
	 	   /s/ ROBERT A. JONES
	 	 	 	 	

	 	 	 	 	Senior Vice President, HAMG

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]