Document:

exv4w1

 

EXHIBIT 4.1

STEELCASE INC. RETIREMENT PLAN

As Amended and Restated Effective as of February 28, 2003

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PREAMBLE	 	 	1	 
	ARTICLE I DEFINITIONS; INTERPRETATION	 	 	3	 
	1.1	 	Definitions	 	 	3	 
	 	 	(a)	 	Account	 	 	3	 
	 	 	(b)	 	Act	 	 	3	 
	 	 	(c)	 	Actual Contribution Ratio	 	 	3	 
	 	 	(d)	 	Actual Deferral Ratio	 	 	3	 
	 	 	(e)	 	Administrative Parties	 	 	3	 
	 	 	(f)	 	Anniversary Date	 	 	3	 
	 	 	(g)	 	Annual Addition	 	 	3	 
	 	 	(h)	 	Annuity Contract	 	 	4	 
	 	 	(i)	 	Annuity Starting Date	 	 	4	 
	 	 	(j)	 	Attained Age	 	 	5	 
	 	 	(k)	 	Average Contribution Percentage	 	 	5	 
	 	 	(l)	 	Average Deferral Percentage	 	 	5	 
	 	 	(m)	 	Beneficiary	 	 	5	 
	 	 	(n)	 	BenefitDollars	 	 	5	 
	 	 	(o)	 	Break in Service	 	 	5	 
	 	 	(p)	 	COBRA	 	 	6	 
	 	 	(q)	 	Code	 	 	6	 
	 	 	(r)	 	Committee	 	 	6	 
	 	 	(s)	 	Company	 	 	6	 
	 	 	(t)	 	Company Contributions	 	 	6	 
	 	 	(u)	 	Continuous Employment	 	 	6	 
	 	 	(v)	 	Contract Issuer	 	 	7	 
	 	 	(w)	 	Covered Employee	 	 	7	 
	 	 	(x)	 	Creditable Compensation	 	 	8	 
	 	 	(y)	 	Death Benefit	 	 	9	 
	 	 	(z)	 	Designated Beneficiary	 	 	9	 
	 	 	(aa)	 	Determination Date	 	 	9	 
	 	 	(bb)	 	Direct Rollover	 	 	9	 
	 	 	(cc)	 	Disability Benefit	 	 	9	 
	 	 	(dd)	 	Discretion	 	 	9	 
	 	 	(ee)	 	Discretionary Contributions	 	 	9	 
	 	 	(ff)	 	Discretionary Contribution Account	 	 	9	 
	 	 	(gg)	 	Distributable Account	 	 	9	 
	 	 	(hh)	 	Distributee	 	 	10	 
	 	 	(ii)	 	Distribution Calendar Year	 	 	10	 
	 	 	(jj)	 	Effective Date	 	 	10	 
	 	 	(kk)	 	Elective Deferrals	 	 	10	 
	 	 	(ll)	 	Elective Deferral Account	 	 	10	 
	 	 	(mm)	 	Eligibility Date	 	 	10	 
	 	 	(nn)	 	Eligible Location	 	 	10	 

i

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(oo)	 	Eligible Retirement Plan	 	 	11	 
	 	 	(pp)	 	Eligible Rollover Distribution	 	 	11	 
	 	 	(qq)	 	Employee	 	 	11	 
	 	 	(rr)	 	Employee Contributions	 	 	12	 
	 	 	(ss)	 	Employee Contribution Account	 	 	12	 
	 	 	(tt)	 	Employer	 	 	12	 
	 	 	(uu)	 	Employer Group	 	 	12	 
	 	 	(vv)	 	Excess Contributions	 	 	12	 
	 	 	(ww)	 	Excess Deferrals	 	 	13	 
	 	 	(xx)	 	Excess Elective Deferrals	 	 	13	 
	 	 	(yy)	 	Financial Hardship	 	 	13	 
	 	 	(zz)	 	FMLA	 	 	14	 
	 	 	(aaa)	 	Grandfather Rule	 	 	14	 
	 	 	(bbb)	 	Hardship Distribution	 	 	15	 
	 	 	(ccc)	 	Highly Compensated Employee	 	 	15	 
	 	 	(ddd)	 	Hours of Service	 	 	16	 
	 	 	(eee)	 	Insurance Contract	 	 	18	 
	 	 	(fff)	 	Investment Fund	 	 	19	 
	 	 	(ggg)	 	Investment Manager	 	 	19	 
	 	 	(hhh)	 	Key Employee	 	 	19	 
	 	 	(iii)	 	Leased Employee	 	 	20	 
	 	 	(jjj)	 	Life Expectancy	 	 	20	 
	 	 	(kkk)	 	Limitation Year	 	 	20	 
	 	 	(lll)	 	Matching Contributions	 	 	20	 
	 	 	(mmm)	 	Matching Contribution Account	 	 	20	 
	 	 	(nnn)	 	Merge Date	 	 	21	 
	 	 	(ooo)	 	Merged Plan	 	 	21	 
	 	 	(ppp)	 	Money Purchase Contributions	 	 	22	 
	 	 	(qqq)	 	Money Purchase Contribution Account	 	 	22	 
	 	 	(rrr)	 	Net Profits	 	 	22	 
	 	 	(sss)	 	Nondiscretionary Contributions	 	 	22	 
	 	 	(ttt)	 	Nondiscretionary Contribution Account	 	 	22	 
	 	 	(uuu)	 	Nonforfeitable	 	 	22	 
	 	 	(vvv)	 	Non-Key Employee	 	 	22	 
	 	 	(www)	 	Normal Retirement Age	 	 	23	 
	 	 	(xxx)	 	Normal Retirement Benefit	 	 	23	 
	 	 	(yyy)	 	Normal Retirement Date	 	 	23	 
	 	 	(zzz)	 	Original Effective Date	 	 	23	 
	 	 	(aaaa)	 	Participant	 	 	23	 
	 	 	(bbbb)	 	Participant’s Account Balance	 	 	23	 
	 	 	(cccc)	 	Participation Agreement	 	 	23	 
	 	 	(dddd)	 	Permanent and Total Disability	 	 	24	 
	 	 	(eeee)	 	Plan	 	 	24	 
	 	 	(ffff)	 	Plan Administrator	 	 	24	 
	 	 	(gggg)	 	Plan Year	 	 	24	 
	 	 	(hhhh)	 	Prior 401(k) Plan	 	 	24	 

ii

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(iiii)	 	Prior Money Purchase Plan	 	 	24	 
	 	 	(jjjj)	 	Prior Plan	 	 	24	 
	 	 	(kkkk)	 	Prior Plan Participant	 	 	25	 
	 	 	(llll)	 	Proper	 	 	25	 
	 	 	(mmmm)	 	Qualified	 	 	25	 
	 	 	(nnnn)	 	Required Beginning Date	 	 	25	 
	 	 	(oooo)	 	Retiree	 	 	25	 
	 	 	(pppp)	 	Retiree Health Account	 	 	25	 
	 	 	(qqqq)	 	Retiree Health Effective Date	 	 	25	 
	 	 	(rrrr)	 	Retiree Health Participant	 	 	26	 
	 	 	(ssss)	 	Rule of 80	 	 	26	 
	 	 	(tttt)	 	Spouse or Surviving Spouse	 	 	26	 
	 	 	(uuuu)	 	Termination Benefit	 	 	26	 
	 	 	(vvvv)	 	Testing Compensation	 	 	26	 
	 	 	(wwww)	 	Top Heavy	 	 	26	 
	 	 	(xxxx)	 	Top Heavy Contributions	 	 	26	 
	 	 	(yyyy)	 	Total Compensation	 	 	26	 
	 	 	(zzzz)	 	Transferred Assets	 	 	28	 
	 	 	(aaaaa)	 	Transferred Assets Account	 	 	28	 
	 	 	(bbbbb)	 	Trust and Trust Fund	 	 	28	 
	 	 	(ccccc)	 	Trust Agreement	 	 	28	 
	 	 	(ddddd)	 	Trustee	 	 	29	 
	 	 	(eeeee)	 	Valuation Date	 	 	29	 
	 	 	(fffff)	 	Year of Service	 	 	29	 
	1.2	 	Compliance with the Act and the Code	 	 	29	 
	1.3	 	Governing Law and Rules of Construction	 	 	29	 
	1.4	 	Power to Interpret	 	 	30	 
	1.5	 	Terminated Employees	 	 	30	 
	1.6	 	Profit Sharing Plan	 	 	30	 
	ARTICLE II PARTICIPATION	 	 	31	 
	2.1	 	Eligibility For Participation	 	 	31	 
	 	 	(a)	 	General Rule	 	 	31	 
	 	 	(b)	 	No Application Required	 	 	31	 
	2.2	 	Participation Agreements	 	 	31	 
	 	 	(a)	 	Description	 	 	31	 
	 	 	(b)	 	Limits on Compensation Reduction Elections	 	 	31	 
	 	 	(c)	 	Catch-Up Contributions	 	 	32	 
	2.3	 	Duration of Participation; Participation After Termination of Employment	 	 	32	 
	 	 	(a)	 	General Rule	 	 	32	 
	 	 	(b)	 	Transfer to Noncovered Status	 	 	33	 
	 	 	(c)	 	Participation After Termination of Employment	 	 	33	 
	 	 	 	 	(i)	 	Treatment of Account	 	 	33	 
	 	 	 	 	(ii)	 	Effect of Military Service	 	 	33	 
	ARTICLE III CONTRIBUTIONS	 	 	34	 
	3.1	 	Time and Amount of Company Contributions	 	 	34	 

iii

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(a)	 	Company Contributions	 	 	34	 
	 	 	 	 	(i)	 	Discretionary Contributions	 	 	34	 
	 	 	 	 	(ii)	 	Nondiscretionary Contributions	 	 	34	 
	 	 	 	 	 	 	(A)	 	Amount of Nondiscretionary Contributions	 	 	34	 
	 	 	 	 	 	 	(B)	 	Participants Eligible for Nondiscretionary Contributions	 	 	35	 
	 	 	 	 	 	 	(C)	 	Limit on Compensation Considered	 	 	35	 
	 	 	 	 	(iii)	 	Top Heavy Contributions	 	 	35	 
	 	 	(b)	 	Elective Deferrals	 	 	35	 
	 	 	(c)	 	Matching Contributions	 	 	36	 
	 	 	(d)	 	Deductible Limit	 	 	36	 
	 	 	(e)	 	Time for Contributing Elective Deferrals	 	 	36	 
	 	 	(f)	 	Time for Making Company Contributions (Other Than Elective Deferrals)	 	 	37	 
	 	 	(g)	 	Application of Forfeitures	 	 	37	 
	 	 	(h)	 	Form of Contributions	 	 	37	 
	 	 	(i)	 	No Employee Contributions	 	 	37	 
	3.2	 	Contributions Conditioned Upon Deductibility	 	 	37	 
	 	 	(a)	 	Treatment of Nondeductible Contributions	 	 	37	 
	 	 	(b)	 	Contributions to One or More Qualified Pension or Annuity Plans	 	 	37	 
	3.3	 	Mistake of Fact	 	 	38	 
	ARTICLE IV ALLOCATIONS AND ACCOUNTS	 	 	39	 
	4.1	 	Participants’ Shares of Contributions	 	 	39	 
	 	 	(a)	 	Allocation of Elective Deferrals	 	 	39	 
	 	 	(b)	 	Allocation of Matching Contributions	 	 	39	 
	 	 	(c)	 	Discretionary Contributions	 	 	39	 
	 	 	 	 	(i)	 	Participants Eligible for a Discretionary Contribution	 	 	39	 
	 	 	 	 	(ii)	 	Allocation of Discretionary Contributions	 	 	40	 
	 	 	 	 	(iii)	 	Transfer Among Companies	 	 	40	 
	 	 	 	 	(iv)	 	Limit on Compensation Considered	 	 	41	 
	 	 	(d)	 	Allocation of Nondiscretionary Contributions	 	 	41	 
	 	 	(e)	 	Allocation of Top Heavy Contributions	 	 	41	 
	4.2	 	Limitations on Allocations	 	 	41	 
	 	 	(a)	 	Limitations on Allocations of Elective Deferrals	 	 	41	 
	 	 	 	 	(i)	 	Limit for Highly Compensated Employees	 	 	41	 
	 	 	 	 	(ii)	 	Aggregation of Deferrals	 	 	42	 
	 	 	 	 	(iii)	 	Treatment of Excess Elective Deferrals	 	 	43	 
	 	 	 	 	 	 	(A)	 	Return of Excess Deferrals	 	 	43	 
	 	 	 	 	 	 	(B)	 	Determination of Income	 	 	45	 
	

	 	 	 	 	 	 	 	 	(1	)	 	General Rule
	 	 	45	 
	

	 	 	 	 	 	 	 	 	(2	)	 	For the Plan Year
	 	 	45	 
	

	 	 	 	 	 	 	 	 	(3	)	 	For the Period Between the End of the Plan Year and Distribution
	 	 	45	 
	 	 	(b)	 	Limitations on Allocations of Matching Contributions	 	 	46	 
	 	 	 	 	(i)	 	Limit for Highly Compensated Employees	 	 	46	 
	 	 	 	 	(ii)	 	Aggregation of Contributions	 	 	47	 
	 	 	 	 	(iii)	 	Treatment of Excess Contributions	 	 	47	 
	 	 	 	 	 	 	(A)	 	Return of Excess Contributions	 	 	48	 

iv

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(B)	 	Correction of Excess Contributions	 	 	49	 
	 	 	(c)	 	Order of Applying Limits	 	 	49	 
	4.3	 	Limitations on Annual Contributions and Additions	 	 	49	 
	 	 	(a)	 	Maximum Annual Addition	 	 	49	 
	 	 	(b)	 	Treatment of Excess	 	 	50	 
	 	 	(c)	 	Coordination with Other Defined Contribution Plans	 	 	51	 
	 	 	(d)	 	Compliance with Applicable Law	 	 	51	 
	4.4	 	Periodic Adjustments to Accounts	 	 	51	 
	 	 	(a)	 	Distributions and Expenses	 	 	51	 
	 	 	(b)	 	Gains and Losses	 	 	51	 
	4.5	 	Expenses and Renumeration	 	 	52	 
	 	 	(a)	 	Renumeration	 	 	52	 
	 	 	(b)	 	Expenses	 	 	52	 
	4.6	 	Distributable Accounts	 	 	52	 
	 	 	(a)	 	Adjustments to Distributable Accounts	 	 	53	 
	 	 	(b)	 	Investment	 	 	53	 
	4.7	 	Forfeitures	 	 	53	 
	 	 	(a)	 	No Distribution	 	 	54	 
	 	 	(b)	 	Prior Distribution	 	 	54	 
	 	 	(c)	 	Deemed Distribution	 	 	54	 
	4.8	 	Reinstatement of Account	 	 	54	 
	4.9	 	Separate Accounting	 	 	54	 
	ARTICLE V BENEFITS AND DISTRIBUTIONS	 	 	55	 
	5.1	 	Retirement, Disability and Death Benefits	 	 	55	 
	 	 	(a)	 	Normal Retirement Benefit	 	 	55	 
	 	 	(b)	 	Disability Benefit	 	 	55	 
	 	 	(c)	 	Death Benefit	 	 	55	 
	5.2	 	Termination Benefit	 	 	55	 
	 	 	(a)	 	Vesting	 	 	55	 
	p	 	(b)	 	Change in Vesting Schedules	 	 	56	 
	 	 	(c)	 	Service Counting	 	 	56	 
	 	 	(d)	 	Treatment of Nonvested Amounts	 	 	57	 
	5.3	 	Other Distributions and Payments	 	 	57	 
	 	 	(a)	 	Availability	 	 	57	 
	 	 	(b)	 	Attainment of Age 70-1/2	 	 	57	 
	 	 	(c)	 	Attainment of Age 59-1/2	 	 	57	 
	 	 	(d)	 	Hardship	 	 	58	 
	 	 	 	 	(i)	 	Amount	 	 	58	 
	 	 	 	 	(ii)	 	Alternate Fund Sources Exhausted	 	 	58	 
	 	 	 	 	(iii)	 	Limitation on Future Deferrals	 	 	58	 
	5.4	 	Loans to Participants	 	 	59	 
	 	 	(a)	 	General Rules	 	 	59	 
	 	 	(b)	 	Requirements	 	 	59	 
	 	 	 	 	(i)	 	Maximum Amount	 	 	59	 
	 	 	 	 	(ii)	 	Number of Loans	 	 	60	 
	 	 	 	 	(iii)	 	Source	 	 	60	 

v

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(iv)	 	Term	 	 	60	 
	 	 	 	 	(v)	 	Interest; Security	 	 	60	 
	 	 	 	 	(vi)	 	Amoritization	 	 	61	 
	 	 	 	 	(vii)	 	Repayment	 	 	61	 
	 	 	 	 	(viii)	 	Loan Processing Fee	 	 	61	 
	 	 	 	 	(ix)	 	Loan Statement	 	 	62	 
	 	 	 	 	(x)	 	Effect on Investment Funds	 	 	62	 
	 	 	 	 	(xi)	 	Allocation of Interest	 	 	62	 
	 	 	 	 	(xii)	 	Effect on Distributions	 	 	62	 
	 	 	 	 	(xiii)	 	Acceleration	 	 	63	 
	 	 	 	 	(xiv)	 	Special Rules	 	 	63	 
	 	 	 	 	(xv)	 	Spouse Consent	 	 	63	 
	5.5	 	Payment of Benefits	 	 	64	 
	 	 	(a)	 	Application	 	 	64	 
	 	 	(b)	 	Notice	 	 	64	 
	 	 	(c)	 	Payment of Benefits Other Than Death Benefits	 	 	65	 
	 	 	 	 	(i)	 	Normal Form	 	 	65	 
	 	 	 	 	 	 	(A)	 	General Rule	 	 	65	 
	 	 	 	 	 	 	(B)	 	Money Purchase Normal Form	 	 	65	 
	 	 	 	 	(ii)	 	Optional Forms	 	 	66	 
	 	 	 	 	 	 	(A)	 	Lump Sum	 	 	66	 
	 	 	 	 	 	 	(B)	 	Partial Distribution	 	 	66	 
	 	 	 	 	 	 	(C)	 	Installments	 	 	66	 
	 	 	 	 	 	 	(D)	 	Annuity	 	 	67	 
	 	 	 	 	 	 	(E)	 	Spouse Annuity	 	 	67	 
	 	 	(d)	 	Payment of Death Benefits	 	 	67	 
	 	 	 	 	(i)	 	Form for Payment	 	 	68	 
	 	 	 	 	 	 	(A)	 	Lump Sum	 	 	68	 
	 	 	 	 	 	 	(B)	 	Partial Distribution	 	 	68	 
	 	 	 	 	 	 	(C)	 	Installments	 	 	69	 
	 	 	 	 	 	 	(D)	 	Survivor Annuity	 	 	69	 
	

	 	 	 	 	 	 	 	 	(1	)	 	Waiver of Survivor Annuity
	 	 	70	 
	

	 	 	 	 	 	 	 	 	(2	)	 	Waiver Period
	 	 	70	 
	

	 	 	 	 	 	 	 	 	(3	)	 	Notice Requirements
	 	 	71	 
	 	 	 	 	(ii)	 	Elections	 	 	72	 
	 	 	 	 	(iii)	 	Time for Payment	 	 	72	 
	 	 	 	 	(iv)	 	Designation of Beneficiary by Participant	 	 	72	 
	 	 	 	 	(v)	 	Designation of Beneficiary by Surviving Spouse or Alternate Payee	 	 	74	 
	 	 	(e)	 	Spouse Consent	 	 	75	 
	 	 	(f)	 	Required Distributions	 	 	76	 
	 	 	 	 	(i)	 	General Rules	 	 	76	 
	 	 	 	 	 	 	(A)	 	Effective Date	 	 	76	 
	 	 	 	 	 	 	(B)	 	Precedence	 	 	76	 
	 	 	 	 	 	 	(C)	 	Requirements of Treasury Regulations Incorporated	 	 	76	 
	 	 	 	 	 	 	(D)	 	TEFRA Section 242(b)(2) Elections	 	 	76	 

vi

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(ii)	 	Time and Manner of Distribution	 	 	76	 
	 	 	 	 	 	 	(A)	 	Required Beginning Date	 	 	76	 
	 	 	 	 	 	 	(B)	 	Death of Participant Before Distributions Begin	 	 	76	 
	 	 	 	 	 	 	(C)	 	Forms of Distribution	 	 	78	 
	 	 	 	 	(iii)	 	Required Minimum Distributions During Participant’s Lifetime	 	 	78	 
	 	 	 	 	 	 	(A)	 	Amount of Required Minimum Distribution For Each Distribution Calendar Year	 	 	78	 
	 	 	 	 	 	 	(B)	 	Lifetime Required Minimum Distributions Continue Through Year of Participant’s Death	 	 	79	 
	 	 	 	 	(iv)	 	Required Minimum Distributions After Participant’s Death	 	 	79	 
	 	 	 	 	 	 	(A)	 	Death On or After Date Distributions Begin	 	 	79	 
	

	 	 	 	 	 	 	 	 	(1	)	 	Participant Survived by Designated Beneficiary
	 	 	79	 
	

	 	 	 	 	 	 	 	 	(2	)	 	No Designated Beneficiary
	 	 	80	 
	 	 	 	 	 	 	(B)	 	Death Before Date Distributions Begin	 	 	81	 
	

	 	 	 	 	 	 	 	 	(1	)	 	Participant Survived by Designated Beneficiary
	 	 	81	 
	

	 	 	 	 	 	 	 	 	(2	)	 	No Designated Beneficiary
	 	 	81	 
	

	 	 	 	 	 	 	 	 	(3	)	 	Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin
	 	 	81	 
	 	 	(g)	 	Permanent Elections	 	 	81	 
	 	 	(h)	 	Unclaimed Benefits	 	 	82	 
	 	 	(i)	 	Small Benefits	 	 	82	 
	 	 	(j)	 	Deadline for Payment	 	 	83	 
	 	 	(k)	 	Direct Rollovers	 	 	84	 
	5.6	 	Benefit Recipients	 	 	84	 
	 	 	(a)	 	Distributions to Participants	 	 	84	 
	 	 	(b)	 	Distributions to Minors and Incompetent Individuals	 	 	84	 
	5.7	 	Payment Medium	 	 	84	 
	5.8	 	Distribution of Excess Deferrals	 	 	84	 
	 	 	(a)	 	Notification to Plan Administrator	 	 	85	 
	 	 	(b)	 	Timing of Distribution	 	 	85	 
	5.9	 	Payments Pursuant to a Qualified Domestic Relations Order	 	 	85	 
	ARTICLE VI TOP HEAVY REQUIREMENTS	 	 	86	 
	6.1	 	Applicability	 	 	86	 
	6.2	 	Determination of Top Heavy Status	 	 	86	 
	 	 	(a)	 	General Rule	 	 	86	 
	 	 	(b)	 	Required Aggregation	 	 	86	 
	 	 	(c)	 	Optional Aggregation	 	 	86	 
	 	 	(d)	 	Aggregation Rule	 	 	86	 
	 	 	(e)	 	Special Computation Rules	 	 	87	 
	6.3	 	Top Heavy Restrictions	 	 	89	 
	 	 	(a)	 	Minimum Vesting	 	 	89	 
	 	 	(b)	 	Minimum Required Allocation For Non-Key Employees	 	 	89	 
	 	 	 	 	(i)	 	General	 	 	89	 
	 	 	 	 	(ii)	 	Adjustment for Small Contributions	 	 	90	 
	 	 	 	 	(iii)	 	Alternative Method for Satisfying the Minimum Allocation Requirement	 	 	90	 

vii

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE VII TERMINATION OF EMPLOYMENT	 	 	92	 
	7.1	 	Dissolution	 	 	92	 
	7.2	 	Termination in Other Circumstances	 	 	92	 
	7.3	 	Temporary Absence and Military Service	 	 	92	 
	 	 	(a)	 	Leaves, Illness, Layoffs	 	 	92	 
	 	 	(b)	 	Armed Forces	 	 	92	 
	 	 	(c)	 	Inactive Status	 	 	93	 
	 	 	(d)	 	Short Absences	 	 	93	 
	 	 	(e)	 	Corrective Actions	 	 	93	 
	 	 	(f)	 	Mutual Agreement	 	 	93	 
	7.4	 	No Longer Covered Employee	 	 	93	 
	ARTICLE VIII COMMITTEE AND COMPANY	 	 	94	 
	8.1.	 	Composition of Committee	 	 	94	 
	 	 	(a)	 	Appointment of Members	 	 	94	 
	 	 	(b)	 	Plan Administrator	 	 	94	 
	8.2	 	Removal and Resignation	 	 	94	 
	8.3	 	Actions	 	 	94	 
	8.4	 	Officers	 	 	94	 
	8.5	 	Duties of Employer	 	 	95	 
	 	 	(a)	 	Provide Notification	 	 	95	 
	 	 	(b)	 	Maintain Records	 	 	95	 
	 	 	(c)	 	Furnish Information	 	 	95	 
	 	 	(d)	 	Make Available Materials	 	 	95	 
	 	 	(e)	 	Establish Investment Funds	 	 	95	 
	8.6	 	Duties of Committee	 	 	95	 
	 	 	(a)	 	Maintain Data	 	 	95	 
	 	 	(b)	 	Make Records Available	 	 	96	 
	 	 	(c)	 	Provide Forms	 	 	96	 
	 	 	(d)	 	Accept/Reject Forms	 	 	96	 
	 	 	(e)	 	Furnish Allocation Information	 	 	96	 
	 	 	(f)	 	Furnish Participant Information	 	 	96	 
	 	 	(g)	 	Administer Investment Funds	 	 	96	 
	 	 	(h)	 	Direct Benefit Payments	 	 	96	 
	8.7	 	Duties of the Plan Administrator	 	 	96	 
	 	 	(a)	 	Establish Procedures for Benefit Claims	 	 	97	 
	 	 	(b)	 	Establish Rules for Participation Agreements	 	 	97	 
	 	 	(c)	 	Establish Procedures for Domestic Relations Orders	 	 	97	 
	 	 	(d)	 	Reporting and Disclosure	 	 	97	 
	8.8	 	Claims Procedure	 	 	97	 
	 	 	(a)	 	Notice	 	 	97	 
	 	 	(b)	 	Timing of Determination	 	 	98	 
	 	 	(c)	 	Appeals	 	 	98	 
	8.9	 	Powers	 	 	100	 
	8.10	 	Discretion; Nondiscrimination	 	 	101	 
	8.11	 	Fiduciaries and Named Fiduciaries	 	 	101	 
	 	 	(a)	 	Identity	 	 	101	 

viii

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(b)	 	Responsibility	 	 	101	 
	 	 	(c)	 	Prior Actions	 	 	102	 
	 	 	(d)	 	Allocation of Responsibility	 	 	102	 
	 	 	(e)	 	Multiple Capacities	 	 	102	 
	 	 	(f)	 	No Relief for Fraud	 	 	102	 
	ARTICLE IX RETIREE HEALTH ACCOUNTS	 	 	103	 
	9.1	 	Eligibility for Retiree Health Account	 	 	103	 
	9.2	 	Retiree Health Contributions	 	 	103	 
	 	 	(a)	 	Limitation on Contributions	 	 	103	 
	 	 	(b)	 	Partial Year of Participation	 	 	103	 
	9.3	 	Allocations to Retiree Health Accounts	 	 	103	 
	9.4	 	Earnings and Losses Credited to Retiree Health Account	 	 	104	 
	9.5	 	Retiree Health Account Distributions	 	 	104	 
	 	 	(a)	 	Election	 	 	104	 
	 	 	 	 	(i)	 	Procedures	 	 	104	 
	 	 	 	 	(ii)	 	Retiree’s Failure to Pay Full Required Premiums	 	 	105	 
	 	 	 	 	(iii)	 	Election Between COBRA and Retiree Health Account Distributions	 	 	105	 
	 	 	(b)	 	Transfers Between Locations	 	 	105	 
	 	 	(c)	 	Application of Elected Amounts	 	 	105	 
	 	 	(d)	 	Death of Retiree Health Participant	 	 	106	 
	 	 	 	 	(i)	 	After Rule of 80 or Grandfather Rule is Satisfied	 	 	106	 
	 	 	 	 	(ii)	 	Before Rule of 80 or Grandfather Rule is Satisfied	 	 	106	 
	9.6	 	Failure to Satisfy Rule of 80 or Grandfather Rule or Loss of Coverage	 	 	106	 
	ARTICLE X THE TRUSTEE AND TRUST AGREEMENT; INVESTMENTS	 	 	107	 
	10.1	 	The Trustee	 	 	107	 
	10.2	 	Form and Terms of the Trust Agreement	 	 	107	 
	10.3	 	Fiduciary of Trust Fund	 	 	107	 
	10.4	 	Transfer of Investment Authority	 	 	107	 
	 	 	(a)	 	Transfer to Employer or Steelcase Inc. Investment Committee	 	 	107	 
	 	 	(b)	 	Transfer to Investment Manager	 	 	108	 
	 	 	(c)	 	Transfer to Participants	 	 	108	 
	10.5	 	Bonding	 	 	108	 
	10.6	 	Funding Policy	 	 	108	 
	10.7	 	Investment Funds	 	 	109	 
	 	 	(a)	 	Participants’ Interests in Investment Funds	 	 	109	 
	 	 	(b)	 	Addition or Deletion of Investment Funds	 	 	109	 
	 	 	(c)	 	Participant Elections	 	 	109	 
	 	 	(d)	 	Implementation	 	 	109	 
	ARTICLE XI TERMINATION AND AMENDMENT	 	 	110	 
	11.1	 	Termination of Plan	 	 	110	 
	11.2	 	Liquidation of Plan	 	 	111	 
	11.3	 	Termination of Trust	 	 	111	 
	11.4	 	Amendment	 	 	111	 

ix

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(a)	 	No Increase in Liabilities	 	 	111	 
	 	 	(b)	 	Retroactivity Allowed	 	 	112	 
	 	 	(c)	 	Benefits Preserved	 	 	112	 
	 	 	(d)	 	Vesting Changes	 	 	112	 
	 	 	 	 	(i)	 	Election	 	 	112	 
	 	 	 	 	(ii)	 	Election Period	 	 	112	 
	ARTICLE XII MISCELLANEOUS	 	 	113	 
	12.1	 	No Reversions	 	 	113	 
	12.2	 	Nonforfeitability	 	 	113	 
	12.3	 	Merger, Consolidation,
Etc	 	 	113	 
	 	 	(a)	 	Transfers to Other Plans	 	 	113	 
	 	 	(b)	 	Transfers From Other Plans	 	 	113	 
	12.4	 	Spendthrift Provision	 	 	114	 
	 	 	(a)	 	No Assignment Permitted	 	 	114	 
	 	 	(b)	 	Qualified Domestic Relations Orders	 	 	114	 
	12.5	 	Execution of Instruments	 	 	114	 
	12.6	 	Company Actions	 	 	115	 
	12.7	 	Successors, Etc	 	 	115	 
	12.8	 	Miscellaneous Protective Provisions	 	 	115	 
	12.9	 	Reliance	 	 	116	 
	12.10	 	Common Control and Successorship Situations	 	 	116	 
	 	 	(a)	 	Predecessor and Successor Employers	 	 	116	 
	 	 	(b)	 	Transfers Within Employer Group	 	 	116	 
	 	 	(c)	 	Multiple Employers	 	 	117	 
	12.11	 	Indemnification by Company	 	 	117	 
	12.12	 	Employment Rights Not Enlarged	 	 	117	 
	12.13	 	Correction of Errors and Recoupment	 	 	117	 
	12.14	 	Effect of Participant’s Acceptance of Payments	 	 	117	 
	12.15	 	Notification of Address	 	 	118	 
	12.16	 	Source of Benefit Payments	 	 	118	 
	ARTICLE XIII INSURANCE PROVISIONS	 	 	119	 
	13.1	 	Type and Amount of Insurance Contracts	 	 	119	 
	 	 	(a)	 	Limited Locations	 	 	119	 
	 	 	(b)	 	No Discrimination	 	 	119	 
	 	 	(c)	 	Limit on Investment	 	 	119	 
	 	 	(d)	 	Investment Limit Inapplicable	 	 	120	 
	13.2	 	Application and Ownership	 	 	120	 
	13.3	 	Protective Provisions	 	 	120	 
	ARTICLE XIV TRANSFERRED ASSETS	 	 	122	 
	14.1	 	Right to Transfer	 	 	122	 
	14.2	 	Accounting for Transferred Assets	 	 	122	 
	14.3	 	Nonforfeitability of Transferred Assets	 	 	122	 
	14.4	 	Distribution of Transferred Assets	 	 	122	 

x

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE XV EMPLOYEE CONTRIBUTIONS	 	 	123	 
	15.1	 	Right to Contribute	 	 	123	 
	15.2	 	Accounting	 	 	123	 
	15.3	 	Nonforfeitability	 	 	123	 
	15.4	 	Withdrawals While Employed	 	 	123	 
	ARTICLE XVI EXECUTION	 	 	124	 

xi

 

PREAMBLE

     Steelcase Inc. has adopted and maintains the Steelcase Inc. Employees’
Profit-Sharing Retirement Plan, originally effective as of November 1, 1944, as
most recently amended and restated effective as of March 1, 1998, and as
thereafter amended from time to time (the “Plan”). The Steelcase Inc. 401(k)
Retirement Plan and the Steelcase Inc. Employees’ Money Purchase Plan is merged
with the Plan, and the Plan’s name is changed to the Steelcase Inc. Retirement
Plan, effective February 28, 2003; the assets and liabilities of the Steelcase
Inc. Group Retirement Plan attributable to employer profit-sharing
contributions were merged with this Plan effective September 1, 2000; the
Attwood Corporation Profit-Sharing Plan merged with the Plan March 1, 1994; and
the Vecta Contract Division of Steelcase Inc. Employees’ Profit-Sharing
Retirement Plan merged with this Plan February 28, 1995. Elective deferrals
under the 401(k) feature of the Plan are a component of BenefitSystems, a
cafeteria plan established and maintained by Steelcase Inc.

     The Steelcase Inc. 401(k) Retirement Plan (formerly known as the Steelcase
Inc. BenefitsSystems 401(k) Retirement Plan) was originally adopted effective
March 1, 1985, and, (prior to its merger with the Plan), was most recently
amended and restated effective as of March 1, 1997 (the “401(k) Plan”). Prior
to the merger, the assets and liabilities of the Steelcase Inc. Group
Retirement Plan (originally effective December 31, 1962), other than those
relating to employer profit-sharing contributions, were merged into the 401(k)
Plan effective September 1, 2000; the Vecta 401(k) Retirement Plan was merged
into the 401(k) Plan on February 28, 1995; and the Attwood Corporation 401(k)
Retirement Plan was merged into the 401(k) Plan on March 1, 1994.

     Prior to its September 1, 2000, merger in part with the Plan and merger of
the remainder with the 401(k) Plan, the Steelcase Inc. Group Retirement Plan
was originally established effective December 31, 1962, as the Stow & Davis
Profit Sharing Plan, and was thereafter amended and restated several times. On
October 8, 1992, it was renamed The Steelcase North America, Wood Furniture,
Grand Rapids Profit Sharing Plan, and when was renamed the Steelcase Group
Retirement Plan effective March 1, 1998. The assets and liabilities of the
Stow Davis Furniture, Inc. 401(k) Profit Sharing Plan were merged into the
Group Retirement Plan effective October 1, 1999, and the assets and liabilities
of the Brayton International, Inc. Profit

 

 

Sharing Plan, originally effective July 1, 1978, were merged into the
Group Retirement Plan effective March 1, 1996.

     The Steelcase Inc. Employees’ Money Purchase Plan was originally adopted
effective March 1, 1985, and, prior to its merger with the Plan, was most
recently amended and restated effective as of March 1, 1998 (the “Money
Purchase Plan”). Prior to that merger, the assets and liabilities of the
Steelcase Inc. Group Money Purchase Plan (originally effective March 1, 1998)
were merged into the Money Purchase Plan effective September 1, 2000. The
Attwood Corporation Employees’ Money Purchase Plan was merged into the Money
Purchase Plan on March 1, 1994.

     The provisions of this restated Plan are effective as of February 28,
2003, unless otherwise provided elsewhere in this document. The provisions of
the Creditable Compensation and Total Compensation definitions related to
deemed Code Section 125 compensation are effective for Plan Years and
Limitation Years beginning on and after January 1, 1998, for this Plan, all
Merged Plans, and all Qualified Plans merged into the Merged Plans on or after
January 1, 1998. Employees who terminate their employment before the effective
date of this amendment and restatement shall, unless otherwise specified in
this document, be subject to the terms of the Plan, or the prior merged plan,
as in effect on the date of their termination of employment.

2

 

ARTICLE I

DEFINITIONS; INTERPRETATION

1.1 Definitions. The following words and phrases, wherever capitalized, shall
have the following respective meanings, unless the context otherwise requires:

     (a) “Account” means one (1) or more accounts maintained to record the
interest of a Participant in the Plan, including the aggregate of the
Participant’s Elective Deferral Account, Matching Contribution Account, Money
Purchase Contribution Account, Employee Contribution Account, Discretionary
Contribution Account, Nondiscretionary Contribution Account, and Transferred
Assets Account, if any.

     (b) “Act” means those provisions of the Employee Retirement Income
Security Act of 1974, as amended, not included within the Code, and any
successor laws.

     (c) “Actual Contribution Ratio” means, for any Participant, the amount of
Matching Contributions actually paid to the Plan on his behalf for the Plan
Year expressed as a percentage of his Testing Compensation for such Plan Year.

     (d) “Actual Deferral Ratio” means, for any Participant, the amount of the
Elective Deferrals actually contributed to the Plan on his behalf for the Plan
Year expressed as a percentage of his Testing Compensation for such Plan Year.

     (e) “Administrative Parties” means and includes the Employer, the Trustee,
the Steelcase Inc. Investment Committee and the Committee.

     (f) “Anniversary Date” means the last day of February.

     (g) “Annual Addition” means, with respect to any Participant (for any
Limitation Year), the sum of:

	 	(i)	 	That part of any Company Contributions, Matching
Contributions or Elective Deferrals allocated to the
Participant’s Account with respect to that Limitation Year
(provided such amount is contributed to the Plan not later
than thirty (30) days following the Employer’s due date for
filing its

3

 

	 	 	 	federal income tax return for its taxable year with
or within which that Limitation Year ends).
	 
	 	(ii)	 	The forfeitures and Company Contributions, if
any, allocated to the Participant’s account under any defined
contribution plan maintained by the Employer Group with
respect to that Limitation Year.
	 
	 	(iii)	 	The total amount of any Employee Contributions
made by the Participant to any other Qualified plan maintained
by the Employer Group, if any, for that Limitation Year.
	 
	 	(iv)	 	The total amount of any Company contributions
allocated to the Participant’s Retiree Health Account for that
Limitation Year.
	 
	 	(v)	 	Amounts allocated after March 31, 1984, on behalf
of the Participant during the Limitation Year to an individual
medical account, within the meaning of Section 415(l)(2) of
the Code, which is part of a pension or annuity plan of the
Employer Group.
	 
	 	(vi)	 	If the Participant is or ever has been a Key
Employee, amounts allocated after December 31, 1985 to any
separate account (within the meaning of Section 419A(d)(3) of
the Code) in a welfare benefit fund (within the meaning of
Section 419(e) of the Code) during the Limitation Year for
provision of post-retirement medical benefits for the
Participant.

     (h) “Annuity Contract” means any type of contract with an insurance
company not providing for life insurance protection or risk, other than the
return of premium or the payment of cash surrender value in the event of death.

     (i) “Annuity Starting Date” means the first day of the first period for
which an amount is payable as an annuity, or, in the case of a benefit not
payable in the form of an annuity, the first day on which all events have
occurred which entitle the Participant to that benefit.

4

 

     (j) “Attained Age” means a Participant’s chronological age (not his age on
his nearest birthday).

     (k) “Average Contribution Percentage” means, for any Plan Year, the
average of the Actual Contribution Ratios for the group of Participants
consisting of Highly Compensated Employees and for the group consisting of
Participants who are not Highly Compensated Employees.

     (l) “Average Deferral Percentage” means, for any Plan Year, the average of
the Actual Deferral Ratios determined separately for the group of Participants
consisting of Highly Compensated Employees and for the group consisting of
Participants who are not Highly Compensated Employees.

     (m) “Beneficiary” means the person or persons designated by a Participant
in accordance with Section 5.5(d)(iv) (Designation of Beneficiary by
Participant) to receive payments under the Plan in the event of the
Participant’s death, or the person or persons designated by the Surviving
Spouse or by an alternate payee under a “qualified domestic relations order” in
accordance with Section 5.5(d)(v) (Designation of Beneficiary by Surviving
Spouse or Alternate Payee) to receive payments under the Plan in the event of
the Surviving Spouse’s or alternate payee’s death.

     (n) “BenefitDollars” means amounts credited under Steelcase Inc.
BenefitSystems, a cafeteria plan established by the Employer pursuant to
Section 125 of the Code, either that the Participant has elected to contribute
to the Plan or that are remaining after the Participant’s other elections, if
any, have been made under BenefitSystems.

     (o) “Break in Service” means (and occurs at the beginning of) each
employment year (a twelve (12) month period beginning on the date an
Employee first performs an Hour of Service and ending on each anniversary
thereof) in which an Employee has not completed more than five hundred (500)
Hours of Service; provided, however, that any period of FMLA leave will be
treated as continued service for purposes of determining whether a Break in
Service has occurred and no Break in Service shall occur solely as a result of
an absence which qualifies under the FMLA (if its provisions are applicable to
the Company), but only if he returns to active

5

 

employment after the expiration
of the FMLA-qualified leave. For purposes of determining whether an Employee
for whom the Company does not keep records of hours has incurred a Break in
Service, the Employee shall be credited with forty-five (45) Hours of Service
for each week in which the Employee has one (1) or more Hours of Service. If
the week in which an Employee has one (1) or more Hours of Service extends into
more than one (1) employment year, the Hours of Service shall be allocated
between the periods on a pro rata basis.

     (p) “COBRA” means the Consolidated Omnibus Budget and Reconciliation Act
of 1985, as amended.

     (q) “Code” means the Internal Revenue Code of 1986, as amended, and any
successor laws.

     (r) “Committee” means the administrative committee appointed pursuant to
Section 8.1 (Composition of Committee).

     (s) “Company” means the divisions and locations of the Employer and any of
the Employer’s subsidiaries or affiliates, if any, which, with the approval of
the Board of Directors of the Employer, adopt the Plan. The attached Schedule
A lists the participating subsidiaries, affiliates, divisions and division
locations and the effective date of participation of each.

     (t) “Company Contributions” means the amounts contributed to the Plan by
the Company pursuant to Section 3.1(a) (Company Contributions). As the context
may require, the term Company Contributions may also refer to any other
contributions made to the Plan by the Company.

     (u) “Continuous Employment” means a Participant’s years of employment
measured from the Participant’s most recent employment or reemployment date on
which he first completed an Hour of Service with the Employer Group, either as
a new hire or after a previous termination from employment with the Employer
Group, through the date the Participant terminates employment with the Employer
Group. Any period of time during which a Participant is either on a leave of
absence authorized by the Company or is employed by Workstage LLC shall be
included in determining years of Continuous Employment. A part-time

6

 

year of
employment is counted as Continuous Service to the extent provided under the
Company-sponsored retiree medical coverage available to the Participant.

     (v) “Contract Issuer” means a legal reserve life insurance company from
which the Plan has purchased an Insurance Contract.

     (w) “Covered Employee” means any Employee other than:

	 	(i)	 	An Employee who is on active duty in the armed
forces of any nation or international body (other than as a
member of the Armed Forces of the United States of America).
	 
	 	(ii)	 	An Employee who is covered by a collective
bargaining agreement entered into by the Company unless the
agreement, by specific reference to the Plan, provides for
coverage under the Plan, if there is evidence that retirement
benefits were the subject of good faith bargaining.
	 
	 	(iii)	 	A Leased Employee.
	 
	 	(iv)	 	An Employee of a division or a location of the
Employer, or an Employee of a member of the Employer Group,
that is not listed as participating on the attached Schedule
A.
	 
	 	(v)	 	An Employee who is a non-resident alien and
received no earned income (within the meaning of Section
911(d)(2) of the Code) from the Employer
Group which constitutes income from sources within the United
States (within the meaning of Section 861(a)(3) of the Code).
	 
	 	(vi)	 	An Employee who is classified by the Company as a
summer employee or a cooperative intern employee.
	 
	 	(vii)	 	Any person whose status as an Employee is the
result of a judicial or administrative determination.

7

 

     (x) “Creditable Compensation” means all salary and wages paid to a
Participant by the Company in the Plan Year or other applicable period in
question for services performed for the Company, including vacation pay,
holiday pay, sick pay, jury duty pay, bereavement pay, bonuses and commissions,
any elective salary or other deferrals of wages under any non-qualified
deferred compensation plan maintained by the Company, deferred compensation
actually paid and not previously included in “Creditable Compensation” under
this Section 1.1(x), Elective Deferrals, and any amount that is excluded from
gross income pursuant to Code Section 125 or Code Section 132(f)(4), but
excluding any amount paid subsequent to termination of employment, gifts,
reimbursements or other expense allowances, cash and noncash fringe benefits,
moving expenses, separation pay, cash payments and imputed income from
Steelcase BenefitSystems welfare benefits.

     Creditable Compensation taken into account for any Plan Year shall be
limited to the amount set forth in Section 401(a)(17) of the Code (currently
Two Hundred Thousand Dollars ($200,000)), or such other amount as may be
established by the Commissioner of Internal Revenue as a result of adjustments
to account for the cost of living in accordance with Code Section
401(a)(17)(B). The cost-of-living adjustment in effect for a calendar year
applies to any period, not exceeding twelve (12) months, over which Creditable
Compensation is determined (the "Determination Period") beginning in such
calendar year. If a Determination Period consists of fewer than twelve (12)
months, the limit will be multiplied by a fraction, the numerator of which is
the number of months in the Determination Period, and the denominator of which
is twelve (12). For purposes of Section 3.1(a)(ii)(C) (Limit on Compensation
Considered) and Section 4.1(c)(iv) (Limit on Compensation Considered), the
limit shall be prorated to correspond only to the period of the Participant’s
period of Plan participation.

     For Plan Years beginning on or after January 1, 1998, amounts under
Section 125 of the Code include any amounts not available to a Participant as
cash in lieu of group health coverage because the Participant is unable to
certify that he has other health coverage. An amount will be treated as an
amount under Section 125 of the Code only if the Employer does not request or
collect information regarding the Participant’s other health coverage as a part
of the enrollment process for the health plan. This paragraph shall also apply
to all Merged Plans effective as of

8

 

January 1, 1998, and to all Qualified plans
that were merged into the Merged Plans on or after that date.

     (y) “Death Benefit” means the benefit payable on the death of the
Participant pursuant to Sections 5.1(c) (Death Benefit) and 5.5(d) (Payment of
Death Benefits).

     (z) “Designated Beneficiary” means the individual who is designated as
the Beneficiary under Section 5.5(d)(iv) (Designation of Beneficiary by
Participant) or Section 5.5(d)(v) (Designation of Beneficiary by Surviving
Spouse or Alternate Payee) of the Plan and is the Designated Beneficiary under
Section 401(a)(9) of the Code and Section 1.401(a)(9)-1, Q&A-4, of the Treasury
Regulations.

     (aa) “Determination Date” means, for any Plan Year, the last day of the
preceding Plan Year.

     (bb) “Direct Rollover” means a payment by the Plan to an Eligible
Retirement Plan specified by the Distributee.

     (cc) “Disability Benefit” means the benefit payable under the Plan as a
result of a Participant’s Permanent and Total Disability, as described in
Section 5.1(b) (Disability Benefit).

     (dd) “Discretion” means sole, absolute and uncontrolled discretion.

     (ee) “Discretionary Contributions” means Company Contributions made to the
Plan pursuant to Section 3.1(a)(i) (Discretionary Contributions).

     (ff) “Discretionary Contribution Account” means the account established
for a Participant pursuant to Section 4.1(c) (Discretionary Contributions) to
hold Discretionary Contributions allocable to the Participant, as adjusted for
any earnings and losses.

     (gg) “Distributable Account” means an Account which has become fixed,
vested, and set apart pursuant to Section 4.6 (Distributable Accounts),
regardless of whether the assets of the Account are commingled with any other
Account.

9

 

     (hh) “Distributee” means a Participant or former Participant, a Surviving
Spouse, or a Spouse or former Spouse who is an alternate payee under a
qualified domestic relations order, as defined in Section 414(p) of the Code.

     (ii) “Distribution Calendar Year” means 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 Section 5.5(f)(ii)(B). The required
minimum distribution for the Participant’s first Distribution Calendar Year
will be made on or before the Participant’s Required Beginning Date. The
required minimum distribution for other Distribution Calendar Years, including
the required minimum distribution for the Distribution Calendar Year in which
the Participant’s Required Beginning Date occurs, will be made on or before
December 31 of that Distribution Calendar Year.

     (jj) “Effective Date” means February 28, 2003.

     (kk) “Elective Deferrals” means BenefitDollars and Elective Deferrals made
to the Plan pursuant to a Participant’s Participation Agreement described in
Section 3.1(b) (Elective Deferrals).

     (ll) “Elective Deferral Account” means the account established for a
Participant pursuant to Section 4.1(a) (Allocation of Elective Deferrals) to
hold Elective Deferrals made to the Plan on his behalf, as adjusted for any
earnings and losses.

     (mm) “Eligibility Date” means the first day of each month occurring on or
after the Effective Date.

     (nn) “Eligible Location” means those divisions and locations of the
Company, the Employees of which are eligible for Retiree Health Accounts under
Article IV (Retiree Health Accounts), and includes every location and division
of the Company other than the Attwood Canvas (Eastpoint), a division of Attwood
Corporation; Brayton International Inc.; The

10

 

Designtex Group; the New Paris,
Indiana location of the Wood Division of Steelcase Inc. (f/k/a Stow Davis
Furniture, a division of Steelcase Inc.); and Anderson Desk Inc.

     (oo) “Eligible Retirement Plan” means 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 described in Section
403(a) of the Code, a Qualified plan that accepts the Distributee’s Eligible
Rollover Distribution, an annuity contract described in Section 403(b) of the
Code, or an eligible plan under Section 457(b) of the Code that is maintained
by 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.

     (pp) “Eligible Rollover Distribution” means any distribution of all or any
portion of the balance to the credit of a Distributee, except the following:

	 	(i)	 	Any distribution that is one of a series of
substantially equal periodic payments (paid not less
frequently than annually) made for the life (or life
expectancy) of the Distributee or the joint lives (or joint
life expectancies) of the Distributee and the Distributee’s
designated Beneficiary.
	 
	 	(ii)	 	Any distribution that is one of a series of
distributions paid to the Distributee and his designated
Beneficiary over a specified period of ten years or more.
	 
	 	(iii)	 	Any distribution to the extent such distribution
is required under Section 401(a)(9) of the Code.
	 
	 	(iv)	 	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).
	 
	 	(v)	 	Any distribution which is a Hardship
Distribution.

     (qq) “Employee” means a person who receives Total Compensation, within the
meaning of Section 1.1(yyyy) (Total Compensation), including any Leased
Employee, but excluding any person who is an independent contractor.

11

 

     (rr) “Employee Contributions” means voluntary, after-tax contributions
previously made by a Participant under the Steelcase Inc. Group Retirement Plan
before it merged with the Steelcase Inc. 401(k) Retirement Plan effective
September 1, 2000.

     (ss) “Employee Contribution Account” means the account established for a
Participant who previously participated in the Steelcase Inc. Group Retirement
Plan to hold Employee Contributions made by the Participant to that Plan, as
adjusted for any earnings and losses.

     (tt) “Employer” means Steelcase Inc.

     (uu) “Employer Group” means the Employer and any subsidiary or affiliated
entity which, with the Employer, constitutes a controlled group of corporations
or other entities or an affiliated service group within the meaning of
subsections (b), (c), (m), or (o) of Section 414 of the Code. For purposes of
Section 4.34.3 (Limitations on Annual Contributions and Additions), the
definition of Employer Group shall be modified as required by Section 415(h) of
the Code.

     (vv) “Excess Contributions” means the sum, for all affected Highly
Compensated Employees, of the amounts, determined for each Highly Compensated
Employee, in accordance with the following procedure:

	 	(i)	 	Determine the amount, if any (expressed as a
percentage of the relevant Participant’s Testing
Compensation), by which the Actual Contribution Ratio of the
Highly Compensated Employee with the highest Actual
Contribution Ratio would have to be reduced to satisfy the
limit under Section 4.2(b)(i) (Limit for Highly Compensated
Employees), or, if less, the amount (expressed as a percentage
of the relevant Participant’s Testing Compensation) which
would cause such Actual Contribution Ratio to equal the Actual
Contribution Ratio of the Highly Compensated Employee with the
next highest Actual Contribution Ratio.
	 
	 	(ii)	 	Repeat the procedure in (i) above for each Highly
Compensated Employee until the limit under Section 4.2(b)(i)
(Limit for Highly Compensated Employees) would be satisfied.

12

 

	 	(iii)	 	Multiply the percentage determined for each
Highly Compensated Employee under (i) and (ii) by the relevant
Participant’s Testing Compensation.

     (ww) “Excess Deferrals” means any elective contributions made by a
Participant during a calendar year in excess the dollar limitation set forth in
Code Section 402(g) in effect for any taxable year of the Participant (Twelve
Thousand Dollars ($12,000) for 2003), as adjusted for cost of living by the
Secretary of the Treasury pursuant to Section 402(g) of the Code (which
constitute excess deferrals within the meaning of Section 402(g)(2) of the
Code).

     (xx) “Excess Elective Deferrals” means the sum, for all affected Highly
Compensated Employees, of the amounts, determined for each Highly Compensated
Employee, in accordance with the following procedure:

	 	(i)	 	Determine the amount, if any, (expressed as a
percentage of the relevant Participant’s Testing Compensation)
by which the Actual Deferral Ratio of the Highly Compensated
Employee with the highest Actual Deferral Ratio would have to
be reduced to satisfy the limit under Section 4.2(a)(i) (Limit
for Highly Compensated Employees), or, if less, the amount
(expressed as a percentage of the relevant Participant’s
Testing Compensation) which would cause such Actual Deferral
Ratio to equal the Actual Deferral Ratio of the Highly
Compensated Employee with the next highest Actual Deferral
Ratio.
	 
	 	(ii)	 	Repeat the procedure in (i) above for each Highly
Compensated Employee until the limit under Section 4.2(a)(i)
(Limit for Highly Compensated Employees) would be satisfied.
	 
	 	(iii)	 	Multiply the percentage determined for each
Highly Compensated Employee under (i) and (ii) by the relevant
Participant’s Testing Compensation.

     (yy) “Financial Hardship” shall mean an immediate and heavy financial
need, as determined by the Plan Administrator, that the Participant represents
to the Plan Administrator

13

 

has arisen because the Participant has
experienced one (1) or more of the following circumstances:

	 	(i)	 	Unreimbursed expenses for medical care (as
defined in Code Section 213(d)) incurred by the Participant or
by the Participant’s Spouse or dependents (as defined in Code
Section 152) or necessary for these persons to obtain medical
care described in Code Section 213(d);
	 
	 	(ii)	 	Costs directly related to the purchase (excluding
mortgage payments) of the Participant’s principal residence;
	 
	 	(iii)	 	Payment of tuition, related educational fees, or
room and board for the next twelve (12) months of
post-secondary education for the Participant or
for the Participant’s Spouse, children or dependents (as
defined in Code Section 152);
	 
	 	(iv)	 	Payments necessary to prevent the Participant’s
eviction from his principal residence or foreclosure of the
mortgage on that residence;
	 
	 	(v)	 	Such other circumstances as may from time to time
be deemed to constitute financial hardship by the Commissioner
of the Internal Revenue Service.

     (zz) “FMLA” means the Family and Medical Leave Act of 1993, as amended.

     (aaa) “Grandfather Rule” is satisfied if the Participant was employed by
the Employer at the Grand Rapids, Fletcher, or Tustin locations, or by SC
Transport Inc., both on or before February 1, 1978, and at the time of his
termination of employment with the Employer Group, and at the time of such
termination has reached:

	 	(i)	 	An Attained Age of fifty-five (55) with at least
twenty (20) years of Continuous Employment,
	 
	 	(ii)	 	An Attained Age of fifty-eight (58) with at least
fifteen (15) years of Continuous Employment, or

14

 

	 	(iii)	 	An Attained Age of sixty-five (65).

     (bbb) “Hardship Distribution” means an amount payable from the Plan under
Section 5.3(d) (Hardship) on account of a Financial Hardship.

     (ccc) “Highly Compensated Employee” means any Employee who:

	 	(i)	 	Owned at any time in the current or preceding
Plan Year more than five percent (5%) of the outstanding stock
of the Company or stock which has
more than five percent (5%) of the total combined voting
power of all stock of the Company; or
	 
	 	(ii)	 	Received Total Compensation for the preceding
Plan Year in excess of Eighty Thousand Dollars ($80,000).

     In determining the identity of Highly Compensated Employees, the following
additional rules shall apply:

	 	(iii)	 	The dollar threshold set forth in subparagraph
(ii) shall be increased to reflect any cost of living
adjustments implemented by the Secretary of the Treasury
pursuant to Section 415(d) of the Code. The applicable dollar
amount shall be the dollar amount for the calendar year in
which the relevant Plan Year begins.
	 
	 	(iv)	 	Former Employees who were Highly Compensated
Employees either when they separated from service (or have a
deemed separation within the meaning of regulations
promulgated under Section 414(q) of the Code) or at any time
after reaching an Attained Age of fifty-five (55) shall always
be considered Highly Compensated Employees.

15

 

     (ddd) “Hours of Service” means:

	 	(i)	 	The total of paragraphs (A), (B), (C) and (D) as
follows:

	 	(A)	 	Each hour for which an Employee is
paid, or entitled to payment, by the Company for the
performance of duties. Those hours shall be credited
during the employment year (a twelve (12) consecutive
month period beginning on the date the Employee first
performs an Hour of Service and ending on each
anniversary thereof) in which the duties were performed.
	 
	 	(B)	 	Each hour for which back pay,
irrespective of mitigation of damages, has been either
awarded or agreed to by the Company. Those hours shall
be credited to the employment year to which the award or
agreement pertains; provided, however, that an Employee
shall not be credited with more than one (1) Hour of
Service under Section 1.1(ddd)(i)(A) or Section
1.1(ddd)(i)(C) and this Section 1.1(ddd)(i)(B) with
respect to the same hour nor shall an Employee be
credited with more than five hundred one (501) Hours of
Service under this Section 1.1(ddd)(i)(B) on account of
any single continuous period during which the Employee
did not or would not have performed duties for the
Company (whether or not the period occurs in a single
employment year).
	 
	 	(C)	 	Each hour for which an Employee is
directly or indirectly paid, or entitled to payment, by
the Company for reasons (such as vacation, sickness or
disability) other than for the performance of duties
(irrespective of whether the employment relationship
with the Company has terminated). These hours shall be
credited in the employment year in which payment is
actually made or amounts payable become due, whichever
is earlier; provided, however, that an Employee shall
not be credited with more than five hundred one (501)
Hours of Service under this Section 1.1(ddd)(i)(C) on

16

 

	 	 	 	account of any single continuous period during which
the Employee performs no duties for the Company
(whether or not such period occurs in a single
employment year).

	 	(D)	 	Subject to Section 2.3(c)(ii) (Effect
of Military Service), each hour for which an Employee is
not paid, or entitled to payment, by the Company while
he is on an approved leave for illness, military
service, Family Medical Leave Act, or any other approved
purpose pursuant to Company policy, provided he returns
to active employment with the Company within thirty (30)
days after the approved leave terminates. Following the
Employee’s return to active employment with the Company,
the Employee shall be credited with forty-five (45)
Hours of Service for each week of the Employee’s
approved leave, up to a maximum of fifty-two (52) weeks,
allocated to the employment year (a twelve (12) month
period beginning on the date an Employee first performs
an Hour of Service and ending on each anniversary
thereof) in which each week falls. If a week for which
the Employee is entitled to credit for Hours of Service
under this subparagraph (D) extends into more than one
(1) employment year, the forty-five (45) Hours of
Service shall be allocated between the employment years
on a pro rata basis.

	 	 	 	Hours under this Section 1.1(ddd)(i) shall be calculated and
credited pursuant to Sections 2530.200b-2(b) and (c) of the
Department of Labor Regulations, which are incorporated
herein by this reference.
	 
	 	(ii)	 	Solely for purposes of determining whether a
Break in Service has occurred, in the case of an Employee who
is absent from work because of the pregnancy of the Employee,
the birth of a child of the Employee, the placement of a child
with the Employee in connection with the adoption of that
child by the Employee, or for purposes of caring for that
child for a

17

 

	 	 	 	period beginning immediately following such birth or
placement, and provided the absence commences on or after
the first day of the first Plan Year beginning on or after
January 1, 1985, such Employee’s Hours of Service shall be
deemed to include all hours described in subparagraph (i)
which would have been credited to the Employee but for such
absence or, if those hours cannot be determined, eight (8)
hours for each day of the absence. The Plan Administrator
may require the Employee to certify that his absence is due
to a reason described in this subparagraph (ii) and to
certify the number of days during the absence which were due
to that cause. The total number of hours deemed to be Hours
of Service under this subparagraph (ii) shall not exceed five
hundred and one (501). These hours shall be allocated to the
employment year in which the Employee’s absence begins, but
only if that allocation would, solely because of hours which
are deemed Hours of Service under this subparagraph (ii),
prevent the Employee from incurring a Break in Service for
the employment year. In any other case, these Hours of
Service shall be allocated to the next employment year.
	 
	 	(iii)	 	Service with any member of the Employer Group
shall be treated as Hours of Service to the extent provided in
Section 12.10(b) (Transfers Within Employer Group).
	 
	 	(iv)	 	Service with Steelcase SAS and Steelcase Jeraisy
Company Limited shall be treated as Hours of Service for
purposes of eligibility under Section 2.1 (Eligibility for
Participation) and vesting under Section 5.2(a) (Vesting), up
to but not exceeding five (5) Years of Service.
	 
	 	(v)	 	Service with predecessor or successor employers
shall be treated as Hours of Service to the extent provided in
Section 12.10(a) (Predecessor and Successor Employers).

     (eee) “Insurance Contract” means a contract issued by a legal reserve life
insurance company insuring the life of a Participant.

18

 

     (fff) “Investment Fund” means one or more funds, comprising the Trust
Fund, in which Plan assets may be invested. Investment Funds may include such
funds as may be established from time to time by the Employer in its
Discretion.

     (ggg) “Investment Manager” means a person, firm or entity which:

	 	(i)	 	Is either (A) registered as an investment adviser
under the Investment Advisers Act of 1940, (B) a bank, as
defined in the Investment Advisers Act of 1940, or (C) an
insurance company qualified to manage, acquire and dispose of
the assets of Qualified plans under the laws of more than one
(1) state,
	 
	 	(ii)	 	Has acknowledged in writing that it is a
fiduciary with respect to the Plan, and
	 
	 	(iii)	 	Has been granted the authority and duty to
direct the investment of all or part of the Trust Fund
pursuant to Section 10.4 (Transfer of Investment Authority).

     (hhh) “Key Employee” means any individual described in (i) or (ii) below:

	 	(i)	 	Any Employee or former Employee (including any
deceased Employee) who, at any time during the Plan Year that
includes the Determination Date, was:

	 	(A)	 	An officer having Total Compensation
greater than One Hundred Thirty Thousand Dollars
($130,000) (as adjusted under Section 416(i) of the Code
for Plan Years beginning after December 31, 2002); or
	 
	 	(B)	 	A five percent (5%) owner of the
Company; or
	 
	 	(C)	 	A one percent (1%) owner of the
Company having Total Compensation of more than One
Hundred Fifty Thousand Dollars ($150,000).

19

 

	 	 	 	The determination of who is a Key Employee will be made in
accordance with Section 416(i)(1) of the Code and the
applicable regulations and other guidance of general
applicability thereunder.
	 
	 	(ii)	 	The Beneficiary of a person described in (i).

     (iii) “Leased Employee” means a person who is not an Employee, but who
provides services to the Employer Group which are pursuant to an agreement
between a member of the Employer Group and a leasing organization or between a
member of the Employer Group and another person, the services are performed
under the primary direction or control of a member of the Employer Group, and
the person has performed the services for the Employer Group on a substantially
full-time basis for a period of at least one (1) year. The one (1) year period
is the individual’s initial twelve (12) month period of performing services for
the recipient or any Plan Year beginning during or after the initial twelve
(12) month period. A person who would otherwise be treated as a Leased
Employee pursuant to this Section 1.1(iii) shall not be so treated if the
person is covered by a Qualified plan maintained by the leasing organization
which is a nonintegrated money purchase pension plan with at least a ten
percent (10%) employer contribution rate, and which provides for full and
immediate vesting and immediate participation; provided, however, that this
sentence shall not apply if Leased Employees comprise more than twenty percent
(20%) of the Employer Group’s Employees who are not Highly Compensated
Employees.

     (jjj) “Life Expectancy” means life expectancy as computed by use of the
Single Life Table in Section 1.401(a)(9)-9 of the Treasury Regulations.

     (kkk) “Limitation Year” means the Plan Year.

     (lll) “Matching Contributions” means Matching Contributions described in
Section 3.1(c) (Matching Contributions) which are based on the Participant’s
Elective Deferrals.

     (mmm) “Matching Contribution Account” means the account established for a
Participant pursuant to Section 4.1(b) (Allocation of Matching Contributions)
to hold Matching Contributions made to the Plan on behalf of the Participant,
as adjusted for any earnings and losses.

20

 

     (nnn) “Merge Date” means the date as of which a Merged Plan’s assets and
liabilities are transferred to this Plan, or, as applicable, to the Prior
401(k) Plan or Prior Money Purchase Plan. The Merge Dates are as follows:

	 	(i)	 	For this Plan, February 28, 2003, for the
Steelcase Inc. 401(k) Retirement Plan; February 28, 2003, for
the Steelcase Inc. Employees’ Money Purchase Plan; September
1, 2000, for the Steelcase Inc. Group Retirement Plan (with
respect to those assets and liabilities attributable to profit
sharing accounts); February 28, 1995, for the Vecta Contract
Division of Steelcase Inc. Employees’ Profit-Sharing
Retirement Plan; and March 1, 1994, for the Attwood
Corporation Profit-Sharing Plan.
	 
	 	(ii)	 	For the Prior 401(k) Plan, September 1, 2000, for
the Steelcase Inc. Group Retirement Plan (with respect to
those assets and liabilities not attributable to profit
sharing accounts); February 28, 1995, for the Vecta 401(k)
Retirement Plan; and March 1, 1994, for the Attwood
Corporation 401(k) Retirement Plan.
	 
	 	(iii)	 	For the Prior Money Purchase Plan, September 1,
2000, for the Steelcase Inc. Group Money Purchase Plan; and
March 1, 1994 for the Attwood Corporation Employees’ Money
Purchase Pension Plan.

     (ooo) “Merged Plan” means those plans whose assets and liabilities have
been transferred into this Plan pursuant to Section 12.3(b) (Transfers From
Other Plans), with this Plan as the survivor of the transaction. For this
Plan, the following Plans are
Merged Plans: the Prior 401(k) Plan, the Prior Money Purchase Plan,
Attwood Corporation Profit-Sharing Plan, the Vecta Contract Division of
Steelcase Inc. Employees’ Retirement Plan, and the Steelcase Inc. Group
Retirement Plan (with respect to those assets and liabilities attributable to
profit sharing accounts). With respect to the Prior 401(k) Plan, the following
plans were Merged Plans: The Steelcase Inc. Group Retirement Plan (with
respect to those assets and liabilities not attributable to profit sharing
accounts); the Vecta 401(k) Retirement Plan; and the Attwood Corporation 401(k)
Retirement Plan. With respect to the Prior Money Purchase Plan, the following
plans

21

 

were Merged Plans: Attwood Corporation Employees’ Money Purchase Pension
Plan and the Steelcase Inc. Group Money Purchase Plan.

     (ppp) “Money Purchase Contributions” means contributions previously made
under the Prior Money Purchase Plan before it merged with, and transferred its
assets and liabilities to, the Plan effective February 28, 2003.

     (qqq) “Money Purchase Contribution Account” means the account established
for a Participant who previously participated in the Prior Money Purchase Plan
to hold Money Purchase Contributions allocable to the Participant under that
plan, as adjusted for any earnings and losses.

     (rrr) “Net Profits” means the net income of the Company shown on its
consolidated financial statement, as certified by its independent public
accountants, for its taxable year in question.

     (sss) “Nondiscretionary Contributions” means Company Contributions made to
the Plan pursuant to Section 3.1(a)(ii) (Nondiscretionary Contributions).

     (ttt) “Nondiscretionary Contribution Account” means the account
established for a Participant pursuant to Section 4.1(d) (Allocation of
Nondiscretionary Contributions) to hold Nondiscretionary Contributions
allocable to the Participant, as adjusted for any earnings and losses.

     (uuu) “Nonforfeitable,” when used with respect to a benefit or right under
this Plan, means vested and unconditional.

     (vvv) “Non-Key Employee” means:

	 	(i)	 	a Participant or former Participant who is not
and has never been a Key Employee; and
	 
	 	(ii)	 	the Beneficiary of a person described in (i).

22

 

     (www) “Normal Retirement Age” means the date that is the earliest of:

	 	(i)	 	the date a Participant reaches an Attained Age of
sixty-five (65),
	 
	 	(ii)	 	the first date on which the Participant satisfies
the Rule of 80, or
	 
	 	(iii)	 	the first date on which the Participant
satisfies the Grandfather Rule.

     (xxx) “Normal Retirement Benefit” means the benefit payable at the
Participant’s Normal Retirement Date pursuant to Section 5.1(a) (Normal
Retirement Benefit).

     (yyy) “Normal Retirement Date” means the date the Participant reaches his
Normal Retirement Age.

     (zzz) “Original Effective Date” means the date on which the Prior Plan was
originally established, which is November 1, 1944.

     (aaaa) “Participant” means a Covered Employee who is eligible, and has
qualified, to participate in the Plan in accordance with Article II
(Participation).

     (bbbb) “Participant’s Account Balance” means 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.

     (cccc) “Participation Agreement” means the actual agreement, whether
written or registered via telephonic, electronic or by other methods
approved by the Committee in its discretion, by which a Participant elects
to reduce his Creditable Compensation as described in Section 2.2
(Participation Agreements).

23

 

     (dddd) “Permanent and Total Disability” means a physical or mental
condition, either occupational or non-occupational in cause, which, in the
opinion of the Plan Administrator, pursuant to uniform standards consistently
applied, will totally and permanently prevent the Participant from performing
the duties of his employment. In any case where the Plan Administrator is
required to make a determination with respect to the Permanent and Total
Disability of any Participant, the Plan Administrator shall have the right to
require the Participant to submit to a complete evaluation by a physician,
physicians, or medical clinic selected by the Plan Administrator and to submit
to such reexamination as shall be necessary for the Plan Administrator to make
a determination concerning his physical and mental condition. A Participant
who shall refuse to submit to any physical examination properly requested by
the Plan Administrator shall not be entitled to receive a Disability Benefit.
The decision of the physician, physicians or medical clinic shall be conclusive
as to the physical or mental condition of the Participant and all fees and
expenses of the examination shall be paid by the Company.

     (eeee) “Plan” means the Steelcase Inc. Retirement Plan as herein set forth
or as from time to time amended.

     (ffff) “Plan Administrator” means the Employer.

     (gggg) “Plan Year” means the twelve (12) consecutive month period
beginning on each March 1 and ending on the following February 28/29.

     (hhhh) “Prior 401(k) Plan” means the Steelcase Inc. 401(k) Retirement
Plan, As Amended and Restated Effective as of March 1, 1997, as in effect
through February 28, 2003, and any predecessor retirement plan superceded
thereby.

     (iiii) “Prior Money Purchase Plan” means the Steelcase Inc. Employees’
Money Purchase Plan, As Amended and Restated Effective as of March 1, 1998, as
in effect through February 28, 2003, and any predecessor retirement plan
superceded thereby.

     (jjjj) “Prior Plan” means the Steelcase Inc. Employees’ Profit-Sharing
Retirement Plan, As Amended and Restated Effective as of March 1, 1998, as in
effect through February 28, 2003, and any predecessor retirement plan
superseded thereby.

24

 

     (kkkk) “Prior Plan Participant” means any Employee who was a participant
under the Prior Plan, the Prior 401(k) Plan, or the Prior Money Purchase Plan
as of February 28, 2003.

     (llll) “Proper” means necessary, advisable, desirable, expedient or
convenient.

     (mmmm) “Qualified,” where used with reference to a plan or trust, has the
same meaning as in Section 401(a) of the Code, and when used with reference to
an annuity plan, means a plan which meets the requirements of Section 404(a)(2)
of the Code.

     (nnnn) “Required Beginning Date” means April 1 of the calendar year
following the later of the calendar year in which the Participant reaches an
Attained Age of seventy and one-half (70-1/2) or the calendar year in which his
Company employment terminates. If the Participant is a five percent (5%) owner
of the Company, payment of his Plan benefits shall commence not later than the
April 1 following the calendar year in which he reaches an Attained Age of
seventy and one-half (70-1/2), regardless of whether or not his Company
employment has terminated.

     (oooo) “Retiree” means a Participant who, at the time he separates from
service, is employed at an Eligible Location and has satisfied (i) the Rule of
80, or (ii) the Grandfather Rule.

     (pppp) “Retiree Health Account” means the account established with respect
to a Retiree Health Participant pursuant to Article IX (Retiree Health
Accounts) to reflect the Company’s contributions for retiree health coverage
allocable to such Participant, as adjusted for any earnings and losses.

     (qqqq) “Retiree Health Effective Date” means the later of September 1,
2001, or the earliest date the Committee determines is
administratively feasible following the Employer’s receipt from the
Internal Revenue Service of both a private letter ruling confirming that
distributions from a Participant’s Retiree Health Account shall not be
includible in the taxable income of the Participant or his dependents and a
favorable determination letter with respect to the tax-qualified status of the
Prior Plan.

25

 

     (rrrr) “Retiree Health Participant” means a Participant who is employed at
an Eligible Location.

     (ssss) “Rule of 80” is satisfied if the Participant’s number of years of
Continuous Employment plus his Attained Age equal eighty (80) or more.

     (tttt) “Spouse” or “Surviving Spouse” means the person legally married to
the Participant on the Annuity Starting Date. For purposes of determining
benefit recipients upon the death of the Participant, the Surviving Spouse
shall be the person to whom the Participant is legally married on the date of
the Participant’s death.

     (uuuu) “Termination Benefit” means the benefit payable to a Participant as
a result of his termination of employment with the Company, as described in
Section 5.2 (Termination Benefit).

     (vvvv) “Testing Compensation” means compensation, as defined in any manner
permitted by Section 414(s) of the Code and regulations promulgated thereunder,
including Treas. Reg. Section 1.414(s)-1, other than “rate of compensation” as
defined in Treas. Reg. Section 1.414(s)-1(e), paid during the Plan Year by the
Employer or by any member of the Employer Group to a Participant, while he is a
Participant, for services actually performed. Compensation taken into account
shall be limited as described in Code Section 401(a)(17), as adjusted for the
cost of living by the Secretary of the Treasury.

     (wwww) “Top Heavy” describes the Plan if it meets the conditions described
in Section 6.2 (Determination of Top Heavy Status).

     (xxxx) “Top Heavy Contributions” means those contributions required to be
made to the Plan by the Company pursuant to Section 6.3(b) (Minimum Required
Allocation for Non-Key Employees), if any.

     (yyyy) “Total Compensation” means all amounts paid during the Limitation
Year or other relevant period to an individual by any member of the Employer
Group for services actually performed which includes all wages, salaries, fees
for professional services and other amounts for personal services actually
rendered in the course of employment with any member

26

 

of the Employer Group
(including, but not limited to, commissions paid salesmen, commissions, tips,
bonuses, fringe benefits, and reimbursements or other expense allowances under
a nonaccountable plan (as described in Treas. Reg. Section 1.62-2), including
any amounts that would otherwise be excluded from gross income by reason of the
application of Sections 125, 132(f)(4), 402(g)(3), or 457), but excluding:

	 	(i)	 	contributions made by any member of the Employer
Group to a plan of deferred compensation to the extent that,
before the application of the limits of Section 415 of the
Code, the contributions are not includible in the gross income
of the individual for the taxable year in which contributed;
	 
	 	(ii)	 	contributions made by any member of the Employer
Group on behalf of the individual to a simplified employee
pension plan described in Section 408(k) of the Code to the
extent the contributions are excludable from the individual’s
gross income;
	 
	 	(iii)	 	distributions from a plan of deferred
compensation maintained by any member of the Employer Group
regardless of whether the amounts are includible in the gross
income of the individual when distributed (except amounts
received pursuant to an unfunded non-Qualified plan to the
extent the amounts are includible in the gross income of the
individual);
	 
	 	(iv)	 	amounts realized from the exercise of a
non-qualified stock option or when restricted stock (or
property) held by the individual either becomes freely
transferable or is no longer subject to a substantial risk of
forfeiture;
	 
	 	(v)	 	amounts realized from the sale, exchange or other
disposition of stock acquired under a qualified stock option;
and
	 
	 	(vi)	 	other amounts which receive special tax benefits,
such as premiums for group term life insurance (but only to
the extent that the premiums are not includible in the gross
income of the individual), or contributions made by any member
of the Employer Group (whether or not under a salary 

27

 

	 	 	 	reduction
agreement) towards the purchase of any annuity contract
described in Section 403(b) of the Code (whether or not the
contributions are excludable from the gross income of the
individual).

     For Limitation Years beginning on or after January 1, 1998, amounts under
Section 125 of the Code include any amounts not available to a Participant as
cash in lieu of group health coverage because the Participant is unable to
certify that he has other health coverage. An amount will be treated as an
amount under Section 125 of the Code only if the Employer does not request or
collect information regarding the Participant’s other health coverage as a part
of the enrollment process for the health plan. This paragraph shall also apply
to all Merged Plans effective as of January 1, 1998, and to all Qualified Plans
that were merged into the Merged Plans on or after that date.

     (zzzz) “Transferred Assets” means those funds which constitute rollover
amounts within the meaning of Section 402(c) of the Code transferred from
another Qualified plan to this Plan by the other Qualified plan on behalf of a
Participant; or distributed from another Qualified plan to a Participant and
transferred by the Participant to this Plan; or distributed from another
Qualified plan to a Participant and transferred by the Participant to an
individual retirement account or individual retirement annuity (within the
meaning of Section 408 of the Code) and then to this Plan, provided that the
Participant has not made any contributions to such individual retirement
account or individual retirement annuity other than eligible rollover
contributions within the meaning of Sections 402(c)(4) and 402(c)(5) of the
Code.

     (aaaaa) “Transferred Assets Account” means the account established for a
Participant pursuant to Section 14.1 (Right to Transfer) to hold Transferred
Assets received by the Plan on his behalf, as adjusted for any earnings and
losses.

     (bbbbb) “Trust” and “Trust Fund” mean the trust and trust fund established
pursuant to the Plan as a medium for funding the Plan.

     (ccccc) “Trust Agreement” means the agreement entered into between the
Employer and the Trustee which governs the management and control of Plan
assets.

28

 

     (ddddd) “Trustee” means one (1) or more individuals or corporations
(including banks or trust companies) designated by the Employer to be the
Trustee for the Trust and Trust Fund.

     (eeeee) “Valuation Date” means the date on which the value of Plan assets
is determined and includes each Anniversary Date and any other appraisal dates
that may be designated by the Plan Administrator as well as each business day
on which both the Trustee and the New York Stock Exchange are open for regular
and ordinary course business.

     (fffff) “Year of Service” means an employment year (a twelve (12)
consecutive month period beginning on the date the Employee first performs an
Hour of Service and ending on each anniversary thereof) during which an
Employee has completed at least one thousand (1,000) Hours of Service,
excluding periods that are expressly excluded from the definition of a Year of
Service by reason of the provisions of Section 2.3 (Duration of Participation;
Participation After Termination of Employment); provided, however, that an
Employee for whom the Company does not keep records of hours shall be credited
with forty-five (45) Hours of Service for each week in which the Employee has
one (1) or more Hours of Service. If the week in which the Employee has one
(1) or more Hours of Service extends into more than one (1) employment year,
the forty-five (45) Hours of Service shall be allocated between the employment
years on a pro rata basis. An Employee shall not be credited with more than
one (1) Year of Service for any employment year.

1.2 Compliance with the Act and the Code. This Plan shall be interpreted and
effectuated to comply with the applicable requirements of
the Act and the Code. Accordingly, the Plan shall be operated so as not to
discriminate in favor of Highly Compensated Employees in the provision of
benefits or contributions.

1.3 Governing Law and Rules of Construction. This Plan shall be governed in
all respects, whether as to construction, capacity, validity, performance or
otherwise, by the laws of the United States and, to the extent not superseded
by the laws of the United States, by the laws of the State of Michigan.
Wherever reasonably necessary, pronouns of any gender shall be deemed
synonymous, as shall singular and plural pronouns. The Table of Contents of
the Plan and the headings to the Articles and Sections of the Plan are included
solely for convenience and shall in no event affect, or be used in connection
with, the interpretation of the Plan. Each provision of

29

 

the Plan shall be
treated as severable and if any provision is declared illegal, invalid or
unenforceable, the Plan shall be interpreted, and shall remain in full force
and effect, as though that provision had never been contained in this Plan.

1.4 Power to Interpret. Subject to Section 1.2 (Compliance with the Act and
the Code) and in addition to the obligations imposed on it under Section 8.10
(Discretion; Nondiscrimination) and elsewhere in the Plan, the Plan
Administrator shall have the power and Discretion to construe this Plan, to
determine entitlement to benefits, to correct any defect, supply any omission,
or reconcile any inconsistencies in the manner and to the extent the Plan
Administrator considers Proper to carry the Plan into effect.

1.5 Terminated Employees. The provisions of the Plan shall not apply to
Employees who participated under the Prior Plan, the Prior 401(k) Plan or the
Prior Money Purchase Plan, and whose employment with the Company terminated
before the Effective Date (except as provided in Sections 2.3 (Duration of
Participation; Participation After Termination of Employment) and 7.4 (No
Longer Covered Employee). The benefits for such former Employees shall instead
be determined pursuant to the terms of the Plan as in effect at the time of
their termination of employment with the Employer Group.

1.6 Profit Sharing Plan. This Plan is intended to be a profit sharing plan
and, specifically, not a plan to which Section 412 of the Code applies. This
Plan
also contains cash or deferred features and is intended to comply with the
provisions of Section 401(k) of the Code.

30

 

ARTICLE II

PARTICIPATION

2.1 Eligibility For Participation.

     (a) General Rule. Any Covered Employee shall be eligible to become a
Participant as of the date he first completes an Hour of Service. An Employee
who has fulfilled the eligibility conditions of this Section 2.1(a), but who is
not a Covered Employee on the date he would otherwise become a Participant,
shall become a Participant on the date he becomes a Covered Employee.

     (b) No Application Required. An eligible Covered Employee shall
automatically become a Participant without filing an application or notice with
the Plan Administrator.

2.2 Participation Agreements. A Participant shall not be entitled to receive
an allocation of Elective Deferrals until and unless he shall have filed with
the Plan Administrator a Participation Agreement.

     (a) Description. A Participant’s initial Participation Agreement shall be
effective on his initial date of participation or, if later, as soon as
administratively feasible after the Plan Administrator receives an enforceable
Participation Agreement. An amendment or revocation of a Participation
Agreement shall be effective as soon as administratively feasible after the
Plan Administrator receives an enforceable amended Participation Agreement. A
Participation Agreement shall apply to all Creditable Compensation received
each pay period and shall remain in effect until revoked or amended, except
that the Plan Administrator may temporarily suspend a Participation Agreement
to the extent necessary to limit a Participant’s Elective Deferrals as provided
in Section 5.3(d)(iii) (Limitation on Future Deferrals).

     (b) Limits on Compensation Reduction Elections. A Participant’s election
to reduce his Creditable Compensation
pursuant to a Participation Agreement may be made in one percent (1%)
increments (or such other increments as the Plan Administrator, in its
Discretion, may permit) up to a maximum of fifty percent (50%) of Creditable
Compensation each payroll period for all Participants other than Highly
Compensated Employees, and nine percent (9%) of

31

 

Creditable Compensation each
payroll period for Highly Compensated Employees (ten percent (10%) of
Creditable Compensation each payroll period for all Highly Compensated Employee
Participants who are employed at the following locations: Steelcase North
America, Wood Furniture Grand Rapids; Brayton International Inc.; Anderson Desk
Inc.; Stow Davis Furniture Company, Inc.; and Steelcase Design Partnership).
Notwithstanding the above, except to the extent permitted in Section 2.2(c)
(Catch-Up Contributions) and Section 414(v) of the Code, if applicable,
Elective Deferrals may not exceed the dollar limitation set forth in Code
Section 402(g) in effect for any taxable year of the Participant (Twelve
Thousand Dollars ($12,000) for 2003), or such greater amount as may be
permitted under Section 402(g) of the Code as a result of adjustments made by
the Secretary of the Treasury for the cost of living. The Code Section 402(g)
limitation set forth in the preceding sentence shall apply to all elective
deferrals, within the meaning of Section 402(g)(3) of the Code, made to all
plans of the Employer Group in which such elective deferrals are permitted. An
election must be made before the amount becomes currently available to the
Participant.

     (c) Catch-Up Contributions. Notwithstanding the above, all Participants
who are eligible to make Elective Deferrals under the Plan and who have reached
an Attained Age of fifty (50) before the close of the Plan Year, or are deemed
to have reached such age under regulations (whether proposed, temporary or
final in form) issued at any time by the Treasury Department, shall be eligible
to make catch-up contributions in accordance with, and subject to the
limitations of, Section 414(v) of the Code. Such catch-up contributions shall
not be taken into account for purposes of the provisions of the Plan
implementing the required limitations of Sections 402(g) and 415 of the Code.
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.

2.3 Duration of Participation; Participation After Termination of Employment.

     (a) General Rule. A Covered Employee who becomes a Participant shall
continue to be a Participant through the date on which his employment with the
Employer Group terminates for any reason; provided, however, that, to the
extent required by the Code or the Act, he shall be

32

 

considered a Participant
until the date he is no longer entitled to receive any benefits from the Plan.

     (b) Transfer to Noncovered Status. A Participant who is transferred to
employment with the Employer Group such that he is no longer a Covered Employee
shall not, for such period that he is not a Covered Employee, be entitled to
reduce his Creditable Compensation pursuant to Section 2.2 (Participation
Agreements), shall not, after the Plan Year in which such transfer occurs, be
considered for purposes of performing the testing described in Section 4.2
(Limitations on Allocations), and shall not be entitled to have any
contributions made on his behalf pursuant to Section 3.1 (Time and Amount of
Company Contributions) or to receive an allocation under Section 4.1
(Participants’ Shares of Contributions), although he shall continue to earn
additional Years of Service for vesting purposes pursuant to Section 1.1(fffff)
(Year of Service).

     (c) Participation After Termination of Employment. A former Participant
whose employment with the Employer Group has terminated or whose employment is
deemed to have terminated, and who is later reemployed by the Employer Group,
shall again become eligible to participate in the Plan as of the date on which
he again performs an Hour of Service as a Covered Employee.

	 	(i)	 	Treatment of Account. If a former Participant
whose Distributable Account has not been fully distributed to
him again becomes a Participant, his Account shall be treated
as described in Section 4.8 (Reinstatement of Account).
	 
	 	(ii)	 	Effect of Military Service. Notwithstanding any
provision of this Plan to the contrary,
contributions, benefits and service credit with respect to
qualified military service will be provided in accordance
with Section 414(u) of the Code.

33

 

ARTICLE III

CONTRIBUTIONS

	3.1	 	Time and Amount of Company Contributions. So long as the Plan is in effect
but subject to Article X (Termination and Amendment) the Company shall, for
each Plan Year, contribute to the Plan as follows:

     (a) Company Contributions. The Company shall contribute to the Plan an
amount, determined as follows:

	 	(i)	 	Discretionary Contributions. Each separate
Company entity, division or location separately listed on
Exhibit A may, for each Plan Year, contribute to the Plan, out
of such separate Company entity’s, division’s or location’s
Net Profits for its taxable year ending nearest the last day
of such Plan Year plus accumulated earnings and profits from
prior taxable years, such amount, if any, as may be determined
in the Discretion of such separate Company entity, division or
location.
	 
	 	(ii)	 	Nondiscretionary Contributions.

	 	(A)	 	Amount of Nondiscretionary
Contributions. As long as the Plan is in effect, but
subject to Article X (Termination and Amendment), each
Company entity, division and location listed on Schedule
A as eligible to make Nondiscretionary Contributions
shall contribute to the Plan for each Plan Year an
amount equal to five percent (5%) of the aggregate
Creditable Compensation of each Participant who is
employed at the end of the Plan Year by such entity,
division or location and who is eligible to receive such
Nondiscretionary Contributions, less the amount of any
forfeitures
to be used to reduce the amount of Nondiscretionary
Contributions pursuant to Section 3.1(g) (Application
of Forfeitures); provided, however, that if the
employment of a Participant terminates during but prior
to the last day of the Plan Year because of his death,

34

 

	 	 	 	becoming eligible for a Normal Retirement Benefit, or
Permanent and Total Disability, he shall be deemed to
be employed by the Company as of the last day of the
Plan Year in which his death, eligibility, or Permanent
and Total Disability occurs. Further, any Participant
who is absent on the last day of the Plan Year due to
an absence qualifying under FMLA (if such Act is
applicable to the Company) shall be treated as actively
employed on the last day of the Plan Year for purposes
of this Section 3.1(a)(ii).
	 
	 	(B)	 	Participants Eligible for
Nondiscretionary Contributions. Participants shall be
eligible to receive Nondiscretionary Contributions as of
the Eligibility Date coincident with or next succeeding
the date on which the following conditions are
fulfilled, provided he is a Covered Employee on that
Eligibility Date:

	 	(1)	 	The Participant’s
reaching an Attained Age of twenty-one (21) years
or more, and
	 
	 	(2)	 	The Participant’s
completion of one (1) or more Years of Service,
subject to Section 2.3 (Duration of Participation;
Participation After Termination of Employment).

	 	(C)	 	Limit on Compensation Considered.
For purposes of this Section 3.1(a)(ii), there shall be
taken into account only such Creditable Compensation
which is paid to a Participant while he is eligible to
receive Nondiscretionary Contributions.

	 	(iii)	 	Top Heavy Contributions. The Company shall
contribute to the Plan all required Top Heavy Contributions.

     (b) Elective Deferrals. The Company shall contribute to the Plan an
amount equal to the aggregate Elective Deferrals of Participants for the Plan
Year.

35

 

     (c) Matching Contributions. Each Company entity, division and location
identified on Schedule A as being eligible to make Matching Contributions may
contribute to the Plan an amount, based on the Elective Deferrals of each
Participant who is an eligible Employee of the applicable Company entity,
division or location. Such amount shall be determined under the formula and
measuring period described on Schedule A, subject to such requirements and
limitations as may be imposed by each such Company entity, division or location
as described in Schedule A; provided, however, that only those Employees
identified by the eligible Schedule A Company entities, divisions or locations
as eligible for Matching Contributions for the Plan Year shall be entitled to
share in the Matching Contributions. Such Company entities, divisions or
locations may determine to contribute different amounts, or make no Matching
Contributions, for one or more classifications of Participants. Matching
Contributions shall not be based on Elective Deferrals that are Excess
Deferrals, Excess Contributions, or contributions made pursuant to Section
2.2(c) (Catch-Up Contributions). If specified on Schedule A, a Company entity,
division or location may limit Participants eligible to receive its Matching
Contribution to those employed at the end of the Plan Year; provided, however,
that any Participant who is absent on the last day of the Plan Year due to an
absence qualifying under FMLA shall be treated as actively employed on the last
day of the Plan Year for purposes of this Section 3.1(c).

     (d) Deductible Limit. Notwithstanding the foregoing, the Company
Contributions, when combined with the Matching Contributions made by the
Company for its taxable year ending with or within the Plan Year and the
contribution made pursuant to Section 9.2 (Retiree Health Contributions), shall
not exceed the sum of (i) twenty-five percent (25%) of the aggregate
compensation (within the meaning of Section 404(a)(3) of the Code) during such
taxable year paid to or accrued for persons who were or became
Participants in such taxable year, plus (ii) the amount of any so called
"credit carry-over” available for the taxable year under Section 404(a)(3)(A)
of the Code.

     (e) Time for Contributing Elective Deferrals. All Elective Deferrals
shall be contributed to the Plan by the Company as soon as administratively
possible following the payroll period to which a salary reduction pursuant to a
Participation Agreement applies, but not later than the fifteenth (15th)
business day following the end of the month in which such contributions are
required to be paid to the Participant or were withheld by the Company.

36

 

     (f) Time for Making Company Contributions (Other Than Elective Deferrals).
All contributions to the Plan for a taxable year of the Company shall be made
within the time prescribed by law for the filing of the Company’s federal
income tax return (including extensions) for that taxable year.

     (g) Application of Forfeitures. All forfeitures, including those pursuant
to Sections 4.2(a)(iii) (Treatment of Excess Elective Deferrals),
4.2(b)(iii)(B) (Correction of Excess Contributions), 4.7 (Forfeitures) and
5.2(d) (Treatment of Nonvested Amounts) shall be applied, for the Plan Year for
which such amounts become forfeited, first to restore any amounts required to
be restored pursuant to Section 4.7(b) (Prior Distribution), and next to reduce
any Company Contributions for that Plan Year.

     (h) Form of Contributions. All contributions made to the Plan shall be in
cash.

     (i) No Employee Contributions. All contributions under the Plan shall be
made by the Company and no contributions shall be required or permitted by a
Participant.

3.2 Contributions Conditioned Upon Deductibility.

     (a) Treatment of Nondeductible Contributions. All Company Contributions
are conditioned on their being deductible under Section 404 of the Code. If
the deduction for any Company Contribution for any taxable year shall be
disallowed, the contribution (to the extent of the disallowance) shall be
returned to the Company within one (1) year following the date of the
disallowance. Amounts to be returned to the Company shall not exceed the
excess of the amount contributed over the amount that would have been
contributed had the contribution been limited to the amount deductible after
any disallowance by the Internal Revenue Service. Earnings attributable to the
excess contribution may not be returned to the Company, but losses attributable
thereto must reduce the amount to be so returned. In addition, the amount
returned to the Company must be limited so as to ensure that no Participant’s
Account balance will be reduced below the balance which would have been in his
Account had the nondeductible amount not been contributed.

     (b) Contributions to One or More Qualified Pension or Annuity Plans. If
the Company makes contributions for a taxable year to one or more Qualified
plans (within the

37

 

meaning of Section 404(a)(7) of the Code) whose participants
include one or more Participants in this Plan, the total amount contributed by
the Company to those Qualified plans for the taxable year, together with its
contributions for the taxable year under Section 3.1(a) (Company Contributions)
and 3.1(c) (Matching Contributions), shall not exceed the greater of:

	 	(i)	 	Twenty-five percent (25%) of the compensation
otherwise paid during the taxable year to the participants in
the Qualified pension or annuity plans and the Participants in
this Plan, and
	 
	 	(ii)	 	The amount of Company contributions necessary to
avoid an accumulated funding deficiency (within the meaning of
Section 412(a) of the Code) with respect to the plan years of
those Qualified pension or annuity plans which end with or
within the taxable year; provided, however, that if this
limitation would otherwise be exceeded, the Company
Contributions made pursuant to Section 3.1 (Time and Amount of
Company Contributions)
under the Plan for the taxable year shall be reduced by an
amount equal to the excess.

3.3 Mistake of Fact. If and to the extent that a Company Contribution to the
Trust is made by or under a mistake of fact, it shall be repaid to the Company
upon demand, to the extent of the mistake, within one (1) year after the
contribution was paid, pursuant to rules and regulations promulgated by the
Internal Revenue Service and the Department of Labor. Amounts returned to the
Company shall not exceed the excess of the amount contributed over the amount
that would have been contributed had no mistake of fact occurred. Earnings
attributable to the excess contribution may not be returned to the Company, but
losses attributable thereto must reduce the amount to be so returned. In
addition, the amount returned to the Company must be limited so as to ensure
that no Participant’s Account balance will be reduced below the balance which
would have been in his Account had the mistaken amount not been contributed.

38

 

ARTICLE IV

ALLOCATIONS AND ACCOUNTS

4.1 Participants’ Shares of Contributions. The Committee shall establish and
maintain records of an “Elective Deferral Account”, a “Matching Contribution
Account,” a “Discretionary Contribution Account,” and a “Nondiscretionary
Contribution Account” for each Participant. The Company Contributions made
pursuant to Section 3.1 (Time and Amount of Company Contributions) for a Plan
Year shall be allocated to Participants’ Accounts as follows:

     (a) Allocation of Elective Deferrals. Elective Deferrals shall be
allocated as of the date of receipt by the Trustee to the Elective Deferral
Accounts of the Participants on behalf of whom the Elective Deferrals were
made.

     (b) Allocation of Matching Contributions. Matching Contributions shall be
allocated as soon as administratively feasible after they are received to the
Matching Contribution Accounts of the Participants on behalf of whom Matching
Contributions were made.

     (c) Discretionary Contributions.

	 	(i)	 	Participants Eligible for a Discretionary
Contribution. The Discretionary Contributions of each
separate Company entity, division or location listed on
Schedule A as being eligible to make Discretionary
Contributions for any Plan Year shall be allocated as of the
last day of that Plan Year among the Discretionary
Contribution Accounts of the Participants who are eligible to
receive Discretionary Contributions and who are employed by
the Employer Group at the end of the Plan Year; provided,
however, that if the employment of a Participant with the
Company terminates during but prior to the last day of the
Plan Year because of his death, becoming eligible for a Normal
Retirement Benefit, or Permanent and Total
Disability, he shall be deemed to be employed by the Company
as of the last day of the Plan Year in which his death,
eligibility for a Normal Retirement Benefit, or Permanent and
Total Disability occurs for purposes of this Section 4.1(c);
provided, further, that any Participant, who is absent

39

 

	 	 	 	on the
last day of the Plan Year due to an absence qualifying under
FMLA (if such Act is applicable to the Company) shall be
treated as actively employed on the last day of the Plan Year
for purposes of this Section 4.1(c). Paticipants shall be
eligible to receive Discretionary Contributions as of the
Eligibility Date coincident with or next succeeding the date
on which the following conditions are fulfilled, provided he
is a Covered Employee on that Eligibility Date:

	 	(A)	 	The Participant’s reaching an
Attained Age of twenty-one (21) years or more, and
	 
	 	(B)	 	The Participant’s completion of one
(1) or more Years of Service, subject to Section 2.3
(Duration of Participation; Participation After
Termination of Employment).

	 	(ii)	 	Allocation of Discretionary Contributions. The
Plan Administrator shall allocate to each eligible
Participant’s Discretionary Contribution Account that portion
of each separate Company entity’s, division’s or location’s
Discretionary Contributions for those eligible Participants
employed by that Company entity, division or location during
the Plan Year that bears the same ratio to such Company
entity’s, division’s or location’s Discretionary Contribution
that each such Participant’s Creditable Compensation from the
applicable Company entity, division or location for the Plan
Year bears to the total Creditable Compensation for all
eligible Participants from that Company entity, division or
location for the Plan Year, subject to any maximum
contribution limits specified in Schedule A.
	 
	 	(iii)	 	Transfer Among Companies. If a participant
transfers employment from one Company entity, division or
location to another, the allocation to that Participant’s
Discretionary Contribution Account shall be made first with
respect to the Company entity, division or location that
employed the Participant earliest in the Plan Year and next
with respect to the Company

40

 

	 	 	 	entity, division or location that
subsequently employed the Participant, based on the
Participant’s Creditable Compensation for the portion of the
Plan Year while he was employed by that Company entity,
division or location.
	 
	 	(iv)	 	Limit on Compensation Considered. For purposes
of this Section 4.1(c), there shall be taken into account only
Creditable Compensation that is paid to a Participant while he
is eligible to receive a Discretionary Contribution or, if
applicable, while employed by each Company entity, division or
location from which he is entitled to receive an allocation of
Discretionary Contributions.

     (d) Allocation of Nondiscretionary Contributions. The Nondiscretionary
Contributions for any Plan Year shall be allocated as of the last day of that
Plan Year among the Nondiscretionary Contribution Accounts of the Participants
on behalf of whom a Nondiscretionary Contribution was made for such Plan Year.

     (e) Allocation of Top Heavy Contributions. Top Heavy Contributions shall
be allocated as of the last day of the Plan Year among the Discretionary
Contribution Accounts of all Participants on behalf of whom the Top Heavy
Contributions were made.

4.2 Limitations on Allocations. The following allocation limitations shall
apply. The Plan Administrator may reduce or suspend the Elective Deferrals of
any individual Participant as it deems necessary to ensure that these
limitations are not exceeded.

     (a) Limitations on Allocations of Elective Deferrals. For purposes of
this Section 4.2(a), Matching Contributions and any amounts designated by the
Company as Qualified Nonelective Contributions that are contributed to the Plan
not later than the end of the Plan Year following the Plan Year to which they
relate may be treated as Elective Deferrals.

	 	(i)	 	Limit for Highly Compensated Employees.
Allocations of Elective Deferrals to the Accounts of
Participants who are Highly Compensated Employees shall be
limited to an Average Deferral Percentage for the current Plan
Year which does not exceed the greater of:

41

 

	 	(A)	 	The Average Deferral Percentage for
the preceding Plan Year for Participants who are not
Highly Compensated Employees times 1.25, or
	 
	 	(B)	 	The lesser of (I) the Average
Deferral Percentage for the preceding Plan Year for
Participants who are not Highly Compensated Employees
multiplied by 2.00, or (II) the Average Deferral
Percentage for the preceding Plan Year for Participants
who are not Highly Compensated Employees plus two (2)
percentage points.

	 	 	 	For purposes of calculating this limit, all Participants who
do not meet the minimum age and service requirements set
forth in Code Section 410(a)(1)(A) may be excluded, whether
Highly Compensated Employees or Nonhighly Compensated
Employees, if such Participants are excluded for purposes of
determining whether the Plan meets the coverage provisions of
Code Section 410(b)(1).
	 
	 	(ii)	 	Aggregation of Deferrals. For purposes of
determining a Participant’s Actual Deferral Ratio, the
following salary deferrals made by the Participant to another
plan of the Employer Group shall be aggregated with his
Elective Deferrals.

	 	(A)	 	If the Plan and one or more other
plans maintained by any member of the Employer Group
which include cash or deferred arrangements (as defined
in Section 401(k)(2) of the Code) are considered as one
plan for purposes of Sections 401(a)(4) and 410(b) of
the Code, all salary deferrals by the Participant under
such other plan or plans, if any, during the Plan Year
shall be aggregated with his Elective Deferrals.
	 
	 	(B)	 	If a Participant who is a Highly
Compensated Employee is also a participant in one or
more plans maintained by any member of the

42

 

	 	 	 	Employer
Group, other than the Plan, which contain cash or
deferred arrangements (as defined in Section 401(k)(2)
of the Code), all salary deferrals by the Participant
under such other plan or plans, if any, during the Plan
Year shall be aggregated with his Elective Deferrals.

	 	(iii)	 	Treatment of Excess Elective Deferrals. Each
Highly Compensated Employee’s portion of Excess Elective
Deferrals, and income attributable thereto, shall be returned
to him not later than the end of the Plan Year immediately
following the Plan Year in which the Excess Elective Deferrals
are made. The portion of the Excess Elective Deferrals to be
distributed to any individual shall be reduced by the amount
of any Excess Deferrals previously distributed to that
Employee for that Employee’s taxable year ending with or
within the Plan Year, in accordance with Code Section
402(g)(2), and Excess Deferrals to be distributed for a
taxable year shall be reduced by Excess Elective Deferrals
previously distributed for the Plan Year beginning in such
taxable year. Matching Contributions, and income allocable
thereto, attributable to the portion of Excess Elective
Deferrals distributed to any individual Highly Compensated
Employee shall be immediately forfeited and treated in
accordance with Section 5.2(d) (Treatment of Nonvested
Amounts).

	 	(A)	 	Return of Excess Deferrals. The
portion of the Excess Elective Deferrals to be returned,
with respect to a Highly Compensated Employee, shall be
determined as follows:

	 	(1)	 	Highly Compensated
Employees shall be ranked in descending order
according to the dollar amount of their Elective
Deferrals.
	 
	 	(2)	 	The Elective Deferrals of
the Highly Compensated Employee(s) with the
highest dollar amount of Elective Deferrals shall
be reduced by the lesser of the aggregate

43

 

	 	 	 	amount
of Excess Elective Deferrals or the amount
necessary to cause the dollar amount of those
Highly Compensated Employees’ Elective Deferrals
to equal the dollar amount of the Elective
Deferrals of the Highly Compensated Employee(s)
with the next highest dollar amount of Elective
Deferrals. This amount shall be distributed
equally to those Highly Compensated Employees.
	 
	 	(3)	 	If, after completing the
process described in paragraph (2), the total
amount distributed is less than the total amount
of Excess Elective Deferrals, the remaining dollar
amount of the Excess Elective Deferrals shall be
divided equally to reduce the dollar amount of the
Elective Deferrals of the Highly Compensated
Employee(s) with the next highest dollar amount of
Elective Deferrals by the lesser of the total
amount of Excess Elective Deferrals or the amount
necessary to cause those Highly Compensated
Employees’ Elective Deferrals to equal the amount
of the Elective Deferrals of the Highly
Compensated Employee(s) with the next highest
dollar amount of Elective Deferrals. Those
amounts shall be distributed to the relevant
Highly Compensated Employees. This procedure
shall be repeated to the extent necessary to
eliminate the remaining Excess Elective
Deferrals.
	 
	 	(4)	 	The amount by which a
Highly Compensated Employee’s Elective Deferrals
is reduced under this Section 4.2(a)(iii)(A), if
any, shall constitute that Highly Compensated
Employee’s portion of Excess Elective Deferrals.

44

 

	 	(B)	 	Determination of Income. Income
allocable to the portion of Excess Elective Deferrals
required to be returned to a Participant under this
Section 4.2(a)(iii)(B) may be calculated as follows (or
under any other permissible method):

	 	(1)	 	General Rule. The income
allocable to a Participant’s Excess Elective
Deferrals is equal to the sum of the allocable
gain or loss for the Plan Year in which the Excess
Elective Deferrals were made and the allocable
gain or loss for the period between the end of
that Plan Year and the date of distribution.
Income includes all earnings and appreciation,
including such items as interest, dividends, gains
from the sale of property, and appreciation in the
value of stock and life insurance contracts,
without regard to whether such appreciation has
been realized.
	 
	 	(2)	 	For the Plan Year. The
income allocable to a Participant’s Excess
Elective Deferrals for the Plan Year in which the
Excess Elective Deferrals were made is determined
by multiplying the income for that Plan Year by a
fraction, the numerator of which is the
Participant’s Excess Elective Deferrals and the
denominator of which is the Participant’s Account
balance, reduced by the gain for the Plan Year and
increased by the loss for the Plan Year.
	 
	 	(3)	 	For the Period Between
the End of the Plan Year and Distribution. The
income allocable to a Participant’s Excess
Elective Deferrals for the period between the end
of the Plan Year in which the Excess Elective
Deferrals were made and the distribution date is
equal to ten percent (10%) of the income allocable
to the Elective Deferrals for the Plan Year (as
calculated under Section 4.2(a)(iii)(B)(2)

45

 

	 	 	 	(For
the Plan Year)) multiplied by the number of
calendar months that have elapsed since the end of
the Plan Year. For purposes of determining the
number of calendar months that have elapsed, a
distribution occurring on or before the fifteenth
(15th) day of the month will be treated as having
been made on the last day of the preceding month
and a distribution occurring after the fifteenth
(15th) day of the month will be treated as having
been made on the first day of the next month.

     (b) Limitations on Allocations of Matching Contributions.

	 	(i)	 	Limit for Highly Compensated Employees.
Allocations of Matching Contributions to the Accounts of
Participants who are Highly Compensated Employees shall be
limited to an Average Contribution Percentage for the current
Plan Year which does not exceed the greater of:

	 	(A)	 	The Average Contribution Percentage
for the preceding Plan Year for Participants who are not
Highly Compensated Employees, times 1.25, or
	 
	 	(B)	 	The lesser of (I) the Average
Contribution Percentage for the preceding Plan Year for
Participants who are not Highly Compensated Employees
multiplied by 2.00, or (II) the Average Contribution
Percentage for the preceding Plan Year for Participants
who are not Highly Compensated Employees plus two (2)
percentage points.

	 	 	 	For purposes of calculating this limit, all Participants who
do not meet the minimum age and service requirements set
forth in Code Section 410(a)(1)(A) may be excluded, whether
Highly Compensated Employees or Nonhighly Compensated
Employees, if such Participants are excluded

46

 

	 	 	 	for purposes of
determining whether the Plan meets the coverage provisions of
Code Section 410(b)(1).
	 
	 	 	 	Any contributions that are intended to be treated as
“matching contributions,” within the meaning of Code Section
401(m) and regulations thereunder, shall be contributed to
the Plan not later than the end of the Plan Year following
the Plan Year to which they relate.
	 
	 	(ii)	 	Aggregation of Contributions. For purposes of
determining a Participant’s Actual Contribution Ratio, the
following amounts contributed on behalf of the Participant
under one
or more other plans maintained by any member of the Employer
Group shall be aggregated with his Matching Contributions
under this Plan.

	 	(A)	 	If the Plan, and any other plan
maintained by any member of the Employer Group to which
“matching contributions,” “employee contributions,” or
“elective deferrals” (as those terms are defined in Code
Section 401(m)(4)) are made, are considered as one plan
for purposes of Sections 401(a)(4) and 410(b) of the
Code, then such other plan or plans shall be treated
with this Plan as a single plan.
	 
	 	(B)	 	If one or more other plans maintained
by any member of the Employer Group permit “matching
contributions” or “employee contributions” (as those
terms are defined in Code Section 401(m)(4)) to be
allocated to the account of any Highly Compensated
Employee who is a Participant in this Plan, then such
contributions under that other plan or plans shall be
aggregated with his Matching Contributions.

	 	(iii)	 	Treatment of Excess Contributions. A Highly
Compensated Employee’s portion of Excess Contributions, and
income attributable thereto (determined in the manner
described in Section 4.2(a)(iii)(B)

47

 

	 	 	 	(Determination of
Income)), shall be removed from his Account not later than the
end of the Plan Year immediately following the Plan Year in
which the Excess Contributions are made.

	 	(A)	 	Return of Excess Contributions. The
portion of the Excess Contributions to be returned, with
respect to a Highly Compensated Employee, shall be
determined as follows:

	 	(1)	 	Highly Compensated
Employees shall be ranked in descending order
according to the dollar amount of their Matching
Contributions.
	 
	 	(2)	 	The Matching
Contributions of the Highly Compensated
Employee(s) with the highest dollar amount of
Matching Contributions shall be reduced by the
lesser of the total amount of Excess Contributions
or the amount necessary to cause the dollar amount
of those Highly Compensated Employees’ Matching
Contributions to equal the amount of the Matching
Contributions of the Highly Compensated
Employee(s) with the next highest dollar amount of
Matching Contributions. This amount shall be
distributed equally to those Highly Compensated
Employee(s).
	 
	 	(3)	 	If, after completing the
process described in paragraph (2), the total
amount distributed is less than the total amount
of Excess Contributions, the remaining dollar
amount of the Excess Contributions shall be
divided equally to reduce the dollar amount of the
Matching Contributions of the Highly Compensated
Employee(s) with the next highest dollar amount of
Matching Contributions by the lesser of the total
amount of Excess Contributions or the amount
necessary to cause those Highly Compensated
Employees’ Matching Contributions to equal the
amount of the Matching

48

 

	 	 	 	Contributions of the Highly
Compensated Employee(s) with the next highest
dollar amount of Matching Contributions. Those
amounts shall be distributed to the relevant
Highly Compensated Employee(s). This procedure
shall be repeated to the extent necessary to
eliminate the remaining Excess Contributions.
	 
	 	(4)	 	The amount by which a
Highly Compensated Employee’s Matching
Contributions is reduced under this Section
4.2(b)(iii), if any, shall constitute that Highly
Compensated Employee’s portion of Excess
Contributions.

	 	(B)	 	Correction of Excess Contributions.
A Participant’s Excess Contributions required to be
removed from his Account under this Section 4.2(b)(iii),
and income allocable to such amounts, shall be removed
in the following order, to the extent necessary to
ensure compliance with the limits described in this
Section 4.2(b):

	 	(1)	 	Amounts which are not
Nonforfeitable shall be forfeited.
	 
	 	(2)	 	Amounts which are
Nonforfeitable shall be either forfeited or
distributed to the affected Participants, as the
Plan Administrator shall determine.

     (c) Order of Applying Limits. Notwithstanding anything in this Section
4.2 or Section 2.2(b) (Limits on Compensation Reduction Elections) to the
contrary, the provisions of Section 2.2(b) (Limits on Compensation Reduction
Elections) shall be applied before application of the provisions of either
Section 4.3 (Limitations on Annual Contributions and Additions) or this Section
4.2.

4.3 Limitations on Annual Contributions and Additions.

     (a) Maximum Annual Addition. The Annual Additions (or, for purposes of
applying subparagraph (ii), below, the Annual Additions excluding amounts
allocated to an account

49

 

described in Code Section 419A on behalf of a
Participant to provide benefits after the Participant’s separation from service
with the Employer Group) to a Participant’s Account for any Limitation Year
shall in no event exceed the lesser of:

	 	(i)	 	Forty Thousand Dollars ($40,000), as adjusted for
increased in the cost-of-living under Section 415(d) of the
Code, or
	 
	 	(ii)	 	One hundred percent (100%) of the Participant’s
Total Compensation for the Limitation Year; provided, however,
that this compensation limit shall not apply to any
contribution for medical benefits after separation from
service (within the meaning of Section 401(h) or Section
419A(f)(2) of the Code) which is otherwise treated as an
annual addition.

     (b) Treatment of Excess. If, because of a reasonable error in estimating
a Participant’s Creditable Compensation, or under other circumstances which may
be permitted under Code Section 415, the limitation set forth in Section 4.3(a)
(Maximum Annual Addition) for a Limitation Year would otherwise be exceeded,
the Participant’s Elective Deferrals (and earnings thereon) for the Limitation
Year shall be distributed to such Participant to the extent that the
distribution reduces the excess amounts in the Participant’s Account; provided,
however, that any Matching Contributions (and earnings thereon) attributable to
Elective Deferrals (and earnings thereon) distributed in accordance with this
Section 4.3(b) shall be held in accordance with the remaining provisions of
this Section; provided, further, that the Employer may choose to use any
combination of distributions of Elective Deferrals (and earnings thereon) and
suspense of Matching Contributions (and earnings thereon) which will eliminate
the excess Annual Addition but does not result in discrimination within the
meaning of Code Section 401(a)(4). Excess amounts remaining after the
distributions described above shall be held unallocated in a separate suspense
account, which account shall not share in allocations of earnings or losses of
the Plan, and shall be held therein until the next succeeding Plan Year, during
which it shall be used to reduce, and applied as, Company Contributions. In
the event of the termination of the Plan before the suspense account has been
fully allocated, the suspense account shall revert to the Company to the extent
it may not then be reallocated to any Participant’s Account due to the
limitation of Section 4.3(a) (Maximum Annual Addition).

50

 

     (c) Coordination with Other Defined Contribution Plans. If a Participant
also participates in a defined contribution plan (within the meaning of Code
Section 415(k)) maintained by any member of the
Employer Group, other than the Plan, the limitation set forth in Section
4.3(a) (Maximum Annual Addition) shall apply to the aggregate of the Annual
Additions to the Plan and to such other plan(s). If the limitation set forth
in Section 4.3(a) (Maximum Annual Addition) would otherwise be exceeded when
taking into account such combination of plans, the contributions shall be
reduced or eliminated first under this Plan prior to making any adjustments
under the other plan(s).

     (d) Compliance with Applicable Law. The limitations described in this
Section 4.3 shall be determined and applied in accordance with the provisions
of Section 415 of the Code and regulations promulgated thereunder, which are
incorporated herein by this reference.

4.4 Periodic Adjustments to Accounts. Adjustments shall from time to time be
made to each Participant’s Account as follows:

     (a) Distributions and Expenses. The Plan Administrator shall direct the
Trustee to debit each Account currently in respect of any distributions of
benefits therefrom and any special expenses chargeable thereto under Section
4.5 (Expenses and Remuneration).

     (b) Gains and Losses. As of each Valuation Date, the Trustee shall
compute the profit or loss of the Trust Fund and each Investment Fund since the
last Valuation Date, using a method of accounting selected by the Trustee,
after giving recognition to the appreciation or depreciation of assets as
determined pursuant to the terms of the Trust Agreement. The profit or loss so
computed shall be credited or debited to the Participants’ Accounts invested in
each Investment Fund in the ratio which each portion of an Account invested in
each Investment Fund on the preceding Valuation Date bore to the aggregate of
all portions of Participants’ Accounts invested in that Investment Fund on that
Valuation Date. In determining the Account balances on any Valuation Date,
there shall be included any Company Contributions allocable thereto as of that
date. Upon agreement between the Trustee and the Plan Administrator, any other
reasonable method for allocating profits and losses among Participants’
Accounts may be used.

51

 

4.5 Expenses and Remuneration.

     (a) Remuneration. Members of the Committee shall serve without
remuneration but the Trustee shall be paid fees in an amount and manner
mutually agreed upon in writing between the Trustee and the Employer; provided,
however, that no fees (except for reimbursement of expenses Properly and
actually incurred) shall be paid to a Trustee for any period during which that
person received full time pay from any member of the Employer Group and also
served as Trustee.

     (b) Expenses. The expenses of the Administrative Parties, including but
not limited to the Trustee’s fees, shall (unless the Company shall in its
Discretion elect to pay them) be paid and accounted for as follows:

	 	(i)	 	All such expenses shall be debited to the several
Participants’ Accounts as part of, or in conjunction with, the
posting of profits and losses under Section 4.4(b) (Gains and
Losses).
	 
	 	(ii)	 	Any expenses which the Administrative Parties may
incur with special reference to any Participant or his Account
(including any Distributable Account), other than expenses
related to determining the qualified status of a domestic
relations order, shall first be charged against his Account to
the extent that the Account is sufficient for that purpose.
The remaining balance of the special expenses, if any, shall
then be charged among the other Accounts pursuant to paragraph
(i) above, but shall if possible be later reimbursed to the
other Accounts out of future credits to the relevant
Participant’s Account.

4.6 Distributable Accounts. After a Participant’s employment with the Employer
Group terminates, whether due to his retirement, death, Permanent and Total
Disability or any other cause, he shall cease to be a Participant as of the
date his employment with the Employer Group ends and, except for Discretionary
Contributions or Nondiscretionary Contributions he is entitled to receive under
Sections 3.1(a)(ii) (Nondiscretionary Contributions) or 4.1(c) (Discretionary
Contributions), and benefits payable or
distributable under this Plan, shall cease to have any

52

 

further right, title or
interest in the Plan or Trust Fund. The Participant’s Account shall thereafter
be subject to the following rules.

     (a) Adjustments to Distributable Accounts. His Account shall become fixed
at its Nonforfeitable balance as of the Valuation Date coincident with or next
succeeding the date on which his employment with the Employer Group ceases and
the Nonforfeitable portion of his Account as so fixed shall be his
Distributable Account. Thereafter no further credits or debits shall be made
to said Account, except for matters mentioned in Sections 4.4 (Period
Adjustments to Accounts), 4.5(b) (Expenses), and 4.6(b) (Investment), and
adjustments in respect of Insurance Contracts under Article XIII (Insurance
Provisions).

     (b) Investment. The Trustee shall continue to invest cash and other
assets of the Trust Fund having an aggregate fair market value on the relevant
Valuation Date equal to the balance of the Distributable Account in question,
determined as described in this Section 4.6. Thereafter, unless that
Distributable Account shall have been distributed in full, the Trustee shall
maintain it as separate Account but may commingle the assets thereof with any
other assets of the Trust Fund and shall continue to invest such Accounts;
provided, however, that the Participant shall be entitled to continue to direct
the investment of his Distributable Account to the same extent as any other
Participant.

4.7 Forfeitures. All funds forfeitable pursuant to Section 5.2(d) (Treatment
of Nonvested Amounts) shall remain credited to the Participant’s Account and
shall be forfeited and applied as provided in Section 3.1(g) (Application of
Forfeitures) as of the Valuation Date coincident with or next succeeding the
earlier of the date on which a Participant has incurred five (5) consecutive
Breaks in Service or the date on which he shall have received a distribution of
his entire Distributable Account. If the Participant has received a
distribution of less than his entire Distributable Account, however, the amount
to be so forfeited and allocated shall be limited to an amount determined by
multiplying the forfeitable portion of the Participant’s Account balance as of
the date immediately preceding the distribution by a fraction, the numerator of
which is the amount of the distribution from his Distributable Account, and the
denominator of which is the amount of his Distributable Account as of the date
immediately
prior to such distribution. If the

53

 

Participant is reemployed by a member of
the Employer Group prior to incurring a five (5) consecutive Breaks in Service,
then the following rules shall apply.Please see plan amendment, this section
has changed

     (a) No Distribution. If such Participant has not received a distribution
from his Distributable Account by reason of his prior termination of
employment, the funds forfeited from his Account by reason of his prior
termination of employment shall be restored to his Account.

     (b) Prior Distribution. If the Participant has received a total or
partial distribution of his Distributable Account by reason of his prior
termination of employment and he repays to the Plan the entire amount
distributed to him from the Plan before five (5) years have elapsed after the
date of his reemployment, the portion of his Account that was forfeited shall
be restored to his Account.

     (c) Deemed Distribution. For purposes of this Section 4.7(c), a
Participant shall be deemed to have received a distribution of the entire
balance of his Distributable Account if, at the time of his termination of
employment with the Employer Group, he either has no Nonforfeitable interest in
his Plan Account or he has no Account under the Plan.

4.8 Reinstatement of Account. Subject to Section 4.7 (Forfeitures), in the
case of a former Participant whose Account becomes no longer forfeitable
pursuant to Section 4.7(a) (No Distribution) or has been restored pursuant to
Section 4.7(b) (Prior Distribution), the balance of his Distributable Account
will no longer be subject to the limitations of Sections 4.6(a) (Adjustments to
Distributable Accounts) and 4.6(b) (Investment) and his Account shall be
Nonforfeitable to the same extent as at the time his Account became a
Distributable Account. Any amounts required to be restored to a Participant’s
Account pursuant to Section 4.7(a) (No Distribution) or Section 4.7(b) (Prior
Distribution) shall be obtained either from Fund earnings, forfeitures, or from
additional Company contributions.

4.9 Separate Accounting. The provisions of this Article IV shall be so applied
and interpreted as to provide separate accounting within the meaning of
Section 204(b)(3)(B) of the Act for each Participant’s interest under the Plan.
The fact that an individual account is established for each Participant shall
not be construed to give such Participant any interest in
such account except
as provided in Article V (Benefits and Distributions) and elsewhere in the
Plan.

54

 

ARTICLE V

BENEFITS AND DISTRIBUTIONS

5.1 Retirement, Disability and Death Benefits. A Participant whose employment
terminates by reason of his death or who becomes eligible for a Normal
Retirement Benefit, Disability Benefit or Age 70-1/2 Benefit shall have a one
hundred percent (100%) Nonforfeitable interest in the balance of his
Distributable Account computed pursuant to Section 4.6 (Distributable
Accounts).

     (a) Normal Retirement Benefit. A Participant becomes eligible for a
Normal Retirement Benefit if his employment with the Employer Group terminates
on or after his Normal Retirement Date.

     (b) Disability Benefit. A Participant becomes eligible for a Disability
Benefit if he is Permanently and Totally Disabled.

     (c) Death Benefit. The Beneficiary of a Participant who dies prior to the
date his Account is distributed, whether or not his employment with the Company
or Employer Group has theretofore terminated, shall be eligible to receive a
Death Benefit, consisting of the entire Nonforfeitable balance of the
Participant’s Distributable Account.

5.2 Termination Benefit.

     (a) Vesting. The Distributable Account of a Participant whose employment
with the Employer Group terminates for reasons other than his death, whose
termination constitutes a severance from employment (regardless of when the
severance occurred) and who is not eligible for a Normal Retirement Benefit or
Disability Benefit shall be the sum of the following:

	 	(i)	 	The balance in his Elective Deferral Account.
	 
	 	(ii)	 	The balance in his Matching Contribution Account.
	 
	 	(iii)	 	Amounts, if any, repaid by the Participant
pursuant to Section 4.7(b) (Prior Distribution).

55

 

	 	(iv)	 	The Nonforfeitable percentage of the balance in
his Discretionary Contribution Account and Nondiscretionary
Contribution Account, if any, based upon the number of his
Years of Service as follows:

	 	 	 	 	 
	 	 	Nonforfeitable
	Years of Service
	 	Percentage

	Less than 3
	 	 	0	%
	3 but less than 4
	 	 	20	%
	4 but less than 5
	 	 	40	%
	5 but less than 6
	 	 	60	%
	6 but less than 7
	 	 	80	%
	7 or more
	 	 	100	%

     (b) Change in Vesting Schedules. In the event that the vesting schedule
described above represents a change from that which existed under the
provisions of the Plan prior to the Effective Date or if there is a future
change in the vesting schedule described above, the rules described in Section
11.4(d) (Vesting Changes) shall apply.

     (c) Service Counting. In computing a Participant’s period of service for
purposes of Section 5.2(a) (Vesting) all his Years of Service shall be counted
except:

	 	(i)	 	Years of Service to the extent excludable, in
accordance with Section 411(a)(4)(F) of the Code, under the
Break in Service provisions of the Prior Plan, the Prior
401(k) Plan, or the Prior Money Purchase Plan.
	 
	 	(ii)	 	In the case of a Participant who was a Prior Plan
Participant, Years of Service before the effective date of the
Act, if that service would have been disregarded under the
Prior Plan, the Prior 401(k) Plan, or the Prior Money Purchase
Plan then in effect.
	 
	 	(iii)	 	In the case of an Employee who previously
incurred a Break in Service, if at the time of his prior Break
in Service the Employee either did not have any Account under
the Plan or did not have any Nonforfeitable right to any
portion of his Account, his Years of Service before his Break
in Service shall not be taken into account if the number of
his consecutive Breaks in Service equals or exceeds five (5).

56

 

	(d)	 	Treatment of Nonvested Amounts. The portion of a Participant’s
Account which does not become part of his Distributable Account shall be held
in accordance with Section 4.7 (Forfeitures) and applied as described in
Section 3.1(g) (Application of Forfeitures).

5.3 Other Distributions and Payments.

     (a) Availability. In addition to distributions described in Sections 5.1
(Retirement, Disability and Death Benefits) or Section 5.2 (Termination
Benefit), and withdrawals that may be available to a Participant with respect
to his Transferred Assets under Section 14.4 (Distribution of Transferred
Assets) or Section 15.4 (Withdrawals While Employed), distributions or payments
shall be available in the following circumstances; provided, however, that with
respect to the portion of a Participant’s Account attributable to Money
Purchase Contributions, or if a Participant has elected the optional payment
form under Section 5.5(c)(ii)(D) (Annuity) (and Code Section 401(a)(11)
therefore applies), no portion of the Participant’s Account may be withdrawn
under this Section 5.3 (Other Distributions and Payments) without the consent
of the Participant’s Spouse, if applicable. Spouse consent shall be obtained
no earlier than the beginning of the ninety (90) day period that ends on the
date on which the distribution is made. The consent must be in writing, must
acknowledge the effect of the distribution, and must be witnessed by a Plan
representative or notary public. Such consent shall thereafter by binding with
respect to that distribution.

     (b) Attainment of Age 70-1/2. A Participant who reaches an Attained Age
of seventy and one half (70-1/2) shall be entitled to elect to withdraw a
single sum distribution of all or part of his Money Purchase Contribution
Account and Nondiscretionary Contribution Account, valued as of the Valuation
Date
immediately preceding the date of the election, subject to the provisions
of Section 5.5(c) (Payment of Benefits Other Than Death Benefits), whether or
not his Company employment shall have terminated. No more than one such
withdrawal may be made each Plan Year. Amounts distributed pursuant to this
Section 5.3(b) shall be taken from the Investment Funds pro rata.

     (c) Attainment of Age 59-1/2. A Participant who reaches an Attained Age
of fifty-nine and one-half (59-1/2) shall be entitled to elect to withdraw a
single sum distribution of all or part of his Elective Deferral Account and
Matching Contribution Account, valued as of the

57

 

Valuation Date immediately
preceding the date of the election, less twice the amount of any outstanding
loans, whether or not his Company employment shall have terminated. No such
withdrawal may be made within six (6) months of a prior withdrawal. Amounts
distributed pursuant to this Section 5.3(c) shall be taken from the Investment
Funds pro rata.

     (d) Hardship. A Participant who experiences a Financial Hardship shall be
eligible to receive a distribution from his Elective Deferral Account only,
taken from the Investment Funds pro rata, to the extent necessary to relieve
that Financial Hardship (which may include amounts necessary to pay any
federal, state, or local income taxes or penalties reasonably anticipated to
result from the distribution), subject to the restrictions set forth below.

	 	(i)	 	Amount. The amount available for distribution to
a Participant as a Hardship Distribution under this Section
5.3(d) shall be limited to the amount of the Participant’s
Elective Deferrals, plus earnings on Elective Deferrals
credited prior to January 1, 1989, less twice the amount of
any outstanding loans.
	 
	 	(ii)	 	Alternate Fund Sources Exhausted. A Participant
may request a Hardship Distribution only if he has obtained
all distributions, other than hardship distributions, and all
nontaxable loans available to him as of the date of his
request under
this Plan and all Qualified plans maintained by any member of
the Employer Group.
	 
	 	(iii)	 	Limitation on Future Deferrals. A Participant
who receives a distribution under this Section 5.3(d) on
account of a Financial Hardship, shall be prohibited from
reducing his Creditable Compensation pursuant to a
Participation Agreement and from making elective contributions
and employee contributions to any Qualified or nonqualified
plan, stock option, stock purchase or similar plan, of the
Employer Group for the period beginning on the date of the
distribution and ending six (6) months after receipt of the
distribution.

58

 

5.4 Loans to Participants.

     (a) General Rules. Pursuant to uniform rules consistently applied, the
Plan Administrator may direct the Trustee to make a loan to a Participant who:
(i) is either currently an active Employee or a “party-in-interest” within the
meaning of Section 3(14) of the Act; and (ii) has requested a loan. The Plan
Administrator is responsible for administering all loans and shall make
available to Participants written information describing the rules and
procedures for applying for loans. The procedures shall be in written form and
shall comprise the written document forming part of the Plan within the meaning
of Department of Labor Regulations Section 2550.408(b)-1. The procedures set
forth in that document may be revised at any time by the Plan Administrator,
without requiring an amendment to this Plan document, even if the procedures,
as revised, differ in certain respects from the specifications set forth below.

     (b) Requirements. The Plan Administrator shall in its Discretion
determine the amount, terms and conditions of any loan. All loans to
Participants shall be subject to the following limitations:

	 	(i)	 	Maximum Amount. Any loan to a Participant, when
added to the unpaid balance of any outstanding loans, if any,
made to him pursuant to this Section 5.4 and any outstanding
loan
transferred directly from another Qualified Plan, shall not
exceed the least of:

	 	(A)	 	Fifteen Thousand Dollars ($15,000);
	 
	 	(B)	 	Fifty Thousand Dollars ($50,000),
reduced by the excess (if any) of the Participant’s
highest outstanding balance of loans from the Plan
during the one-year period ending on the day before the
date on which the loan was made, over the outstanding
balance of his loans from the Plan on the date on which
the new loan is to be made); or
	 
	 	(C)	 	One-half (1/2) of the balance of the
Nonforfeitable portion of the Participant’s Elective
Deferral Account, Matching Contribution Account,
Employee Contribution Account, Transferred Assets

59

 

	 	 	 	Account, and Discretionary Contribution Account as of
the Valuation Date immediately preceding the date of the
loan.

	 	 	 	In determining the maximum amount of any loan to be made
under Sections 5.4(b)(i)(B) and (C), all Qualified plans
maintained by any member of the Employer Group shall be
treated as one plan.
	 
	 	(ii)	 	Number of Loans. No more than two (2) loans
shall be outstanding at any time for any Participant, and no
more than one (1) loan shall be issued in any one (1) Plan
Year; provided, however, that

	 	(A)	 	This limit does not apply to loans
made under the Steelcase Inc. Group Retirement Plan
prior to September 1, 2000;
	 
	 	(B)	 	Any loans transferred directly to the
Plan from another Qualified plan may, if the Plan’s loan
procedures so provide, remain outstanding until repaid
in accordance with the terms of the note evidencing its
existence, and
	 
	 	(C)	 	No more than one (1) loan shall be
allowed in any one (1) Plan Year.

	 	(iii)	 	Source. Loans shall be made from the
Participant’s Elective Deferral Account, Matching Contribution
Account, Employee Contribution Account, Transferred Assets
Account, and the Nonforfeitable portion of the Discretionary
Contributions Account, pro rata from each account.
	 
	 	(iv)	 	Term. Any loan must have a specified repayment
date, which may in no event extend beyond four and one-half
(4-1/2) years from the date the loan is made.
	 
	 	(v)	 	Interest; Security. Each loan shall bear
interest at such reasonable rate as may be in effect at the
time the loan is made, as determined by the Committee in the
manner described in written rules established by the Committee
and which are made available to Participants. All loans shall

60

 

	 	 	 	be adequately secured. The Committee shall require the
Participant to assign to the Trustee that portion of the
Nonforfeitable balance of his Account, but not more than fifty
percent (50%) of the Nonforfeitable portion of his Account,
necessary to secure the loan. The Plan Administrator may, in
its Discretion, require the Participant to provide such
additional security as it deems necessary to fully secure the
loan.
	 
	 	(vi)	 	Amortization. Except as determined by the
Committee in accordance with regulations promulgated by the
Secretary of Treasury pursuant to Section 72(p) of the Code,
any loan granted hereunder shall be amortized on a
substantially level basis over its term and payments shall be
required to be made not less frequently than quarterly.
	 
	 	(vii)	 	Repayment. Repayment of a loan made pursuant to
this Section 5.4(b) shall be by payroll deduction wherever
possible. Repayment of a loan by a Participant who is not
actively employed shall be made by cashier’s check or money
order sent monthly to the Plan Administrator. Loan repayment
requirements will be suspended under this Plan during a
Participant’s period of military service, as permitted under
Code Section 414(u)(4), or during a Participant’s unpaid leave
of absence for a period not to exceed twelve (12) months,
although the entire loan repayment term may in no event be
extended beyond five (5) years from the date the loan is made.
After a Participant’s return from an unpaid leave of absence,
repayment of the loan shall resume at two (2) times the
payroll deduction amount in effect before the leave of absence
began, until the payments in arrears have been made, unless
the Participant shall elect to continue payments at the
original payroll deduction amount; provided, however, that any
balance due on the loan must be repaid not later than five (5)
years from the date the loan is made.
	 
	 	(viii)	 	Loan Processing Fee. The Plan may impose a one-time loan
processing fee and/or other reasonable fee to each Participant
who is granted a loan.

61

 

	 	 	 	The Committee shall inform the
Participant of the amount of any fees at the time his loan is
made.
	 
	 	(ix)	 	Loan Statement. Each Participant who receives a
loan shall also receive a clear statement of the charges
involved in such loan transaction, including the dollar amount
and annual rate of finance charge.
	 
	 	(x)	 	Effect on Investment Funds. The amount of any
loan made pursuant to this Section 5.4(b) shall reduce the
Participant’s interest in the Investment Funds, pro rata.
Notwithstanding the preceding rule, Investment Funds may be
reduced in
such other manner as the Committee, in its Discretion, may
determine and make part of the written procedures governing
loans to Participants.
	 
	 	(xi)	 	Allocation of Interest. The unpaid balance of
any loan, whether or not yet due, shall be deducted from the
amount standing to the credit of the Participation in his
Account for purposes of Section 4.4 (Periodic Adjustments to
Accounts); provided, however, that interest paid by the
Participant into the Trust Fund with respect to any such loan
shall be allocated directly to the Participant’s Account.
	 
	 	(xii)	 	Effect on Distributions. No payment out of the
Trust Fund shall be made to or in respect of a Participant or
his Beneficiary (except under Section 5.3(d) (Hardship) or
this Section 5.4) unless and until all unpaid loans to that
Participant or his Beneficiary have been satisfied in full.
Loans in default under a note executed by a Participant
pursuant to the rules and procedures governing Participant
loans will be satisfied on the date the Trustee forecloses
upon that portion of the Participant’s Account which is used
as security for the loan. The Trustee will foreclose upon the
portion of the Participant’s Account that is used as security
for the loan when both the loan is in default and the
Participant incurs an event which would permit him to receive
a distribution under another provision of the Plan (other than
Section 5.3(d) (Hardship)). The foregoing provisions

62

 

	 	 	 	shall
not prevent the Trustee from reporting a loan in default as
income to the Participant at any time permitted or required by
Section 72(p) of the Code.
	 
	 	(xiii)	 	Acceleration. Notwithstanding anything in this Section 5.4
to the contrary, the entire outstanding balance of any loan
shall become due and payable ninety (90) days after: (a) the
date any required payment has not been made, or (b) the
Participant’s death.
	 
	 	(xiv)	 	Special Rules. Anything in this Section 5.4 to
the contrary notwithstanding, additional rules that may apply
to any loan which is to be secured by any portion of a
Participant’s Account which is invested in an Investment Fund
subject to special restrictions. These rules shall be
established by the Committee in accordance with the terms of
the Investment Fund, so long as such portion of his Account is
invested in such Investment Fund.
	 
	 	(xv)	 	Spouse Consent. If a Participant has elected the
optional payment form under Section 5.5(c)(ii)(D) (Annuity)
(and Code Section 401(a)(11) therefore applies) and part or
all of the Participant’s Account balance is to be used as
security for a loan, no portion of the Participant’s Account
balance may be used as security for such loan without consent
by the Participant’s Spouse. Spouse consent shall be obtained
no earlier than the beginning of the ninety (90) day period
that ends on the date on which the loan is to be so secured.
The consent must be in writing, must acknowledge the effect of
the loan, and must be witnessed by a Plan representative or
notary public. Such consent shall thereafter be binding with
respect to that loan. A new consent shall be required if the
Account balance is used for renegotiation, renewal, or other
revision of the loan.

63

 

5.5 Payment of Benefits.

     (a) Application. Except as provided in Section 5.5(f) (Required
Distributions), Section 5.5(i) (Small Benefits) and the small benefit cash out
provisions of Section 5.9 (Payments Pursuant to a Qualified Domestic Relations
Order), Participants, Beneficiaries and other persons eligible for benefits
under the Plan shall make application for benefits on forms provided by the
Plan Administrator and must consent, in writing, to a distribution from the
Plan of benefits to which he is entitled. Notwithstanding anything herein to
the contrary, no benefits shall be payable under the Plan with respect to any
period which is before the date on which application for those benefits is
received by the Plan
Administrator in accordance with procedures established by it, unless the
Plan Administrator determines that the delay was not due to negligence on the
part of the Participant, Beneficiary or other person applying for benefits
hereunder. The Plan Administrator may require any Participant, Beneficiary or
other person applying for benefits to furnish to it any information reasonably
necessary for the Proper administration of the Plan and if the applicant shall
fail to furnish that information, the Plan Administrator may compute his
benefits, if any, on any basis it deems reasonable. No benefits shall be paid
unless proof satisfactory to the Plan Administrator evidencing entitlement to
those benefits is presented to the Plan Administrator by the person or persons
claiming the benefits.

     (b) Notice. At least thirty (30), but not more than ninety (90), days
before the Participant’s Annuity Starting Date, the Plan Administrator shall
notify the Participant of the benefits available to him, the optional forms for
payment, if any, and, if the benefit is immediately distributable, his right,
if any, to defer receipt of the distribution. Such notice shall be given in
accordance with Treas. Reg. Section 1.411(a)-11(c). The Participant’s consent
to the distribution may not be made before the Participant receives the notice
and may not be made more than ninety (90) days before his Annuity Starting
Date. Such distribution may commence less than thirty (30) days after the
notice required under Treas. Reg. Section 1.411(a)-11(c) is given, provided
that:

	 	(i)	 	the Plan Administrator clearly informs the
Participant that the Participant has a right to a period of at
least thirty (30) days after receiving the notice

64

 

	 	 	 	to consider
the decision of whether or not to elect a distribution (and,
if applicable, a particular distribution option),
	 
	 	(ii)	 	the Participant, after receiving the notice,
affirmatively elects a distribution, and
	 
	 	(iii)	 	with respect to a distribution from the
Participant’s Money Purchase Contribution Account, and any
distribution for which the Participant has selected the
annuity form of benefit, the distribution is made at least
seven (7) days after the notice is given.

     (c) Payment of Benefits Other Than Death Benefits. Subject to Sections
5.5(a) (Application), 5.5(f) (Required Distributions), and 5.5(j) (Deadline for
Payment), the Plan Administrator shall direct the Trustee to pay to the
Participant, using the Participant’s entire Distributable Account (reduced by
any prior distributions), valued as of the Valuation Date coincident with or
immediately preceding the date of payment, as promptly as possible after the
Participant becomes eligible for a benefit under Section 5.1 (Retirement,
Disability and Death Benefits), other than Death Benefits, or Section 5.2
(Termination Benefit), as follows:

	 	(i)	 	Normal Form. Unless the Participant shall elect
to have his benefits payable in accordance with Section
5.5(c)(ii) (Optional Forms), the balance of the Participant’s
Distributable Account shall be paid to him as follows:

	 	(A)	 	General Rule. The portion not
attributable to his Money Purchase Contribution Account
shall be paid in a single lump sum;
	 
	 	(B)	 	Money Purchase Normal Form. The
portion that is attributable to his Money Purchase
Contribution Account shall be applied to purchase an
annuity payable monthly for his lifetime; provided,
however, that in the case of a Participant who is
married on his Annuity Starting Date such annuity shall,
unless the Participant has elected and his Spouse has
consented otherwise during the ninety (90) day period
immediately preceding the Annuity Starting Date

65

 

	 	 	 	in the
manner provided in Section 5.5(e) (Spouse Consent), be
paid as a Spouse Annuity as described in Section
5.5(c)(ii)(E) (Spouse Annuity).

	 	(ii)	 	Optional Forms. If the Participant shall elect
by written notice delivered to the Plan Administrator, at any
time within the ninety (90) day period immediately preceding
the Annuity Starting Date (and with his Spouse’s consent as
described in Section 5.5(e)
(Spouse Consent) with respect to the portion attributable to
his Money Purchase Contribution Account), the balance of his
Distributable Account shall be paid to him in one of the
methods described below. A separate election may be made for
the portion of his Distributable Account attributable to his
Money Purchase Contribution Account. Any election under this
paragraph (ii) may be revoked and a new election made during
such ninety (90) day period.

	 	(A)	 	Lump Sum. In a single lump sum.
	 
	 	(B)	 	Partial Distribution. One lump sum
distribution of any part within twelve (12) months after
the Participant’s termination of employment and one
separate distribution of the proceeds of any life
insurance policy on the life of the Participant as soon
as administratively possible following the date of
termination. The remaining balance may then be paid in
the normal or any other optional form.
	 
	 	(C)	 	Installments. In approximately equal
regular installments not less frequently than annually
over a period to be selected by the Participant but not
to exceed a period extending beyond the life expectancy
of the Participant and his Beneficiary. At any time,
the Participant may change the installment payment
schedule (subject to the limitations of Section 5.5(f)
(Required Distributions) or the remainder may be paid in
a single lump sum at any time at the election of the
Participant.

66

 

	 	(D)	 	Annuity. The purchase of an annuity
selected by the Participant providing for payments to be
made over a period not to exceed the life or joint lives
of the Participant and his Beneficiary. Any annuity
distribution method, other than the Spouse Annuity
described below, selected by any Participant who is
married shall not become effective unless his Spouse
shall have
consented to such selection, in the manner described in
Section 5.5(e) (Spouse Consent) during the ninety (90)
day period immediately preceding the Annuity Starting
Date.
	 
	 	(E)	 	Spouse Annuity. The purchase of a
“Spouse Annuity” providing for monthly payments
commencing immediately and payable during the lifetime
of the Participant with fifty percent (50%) to one
hundred percent (100%), as elected by the Participant,
of the amount payable to the Participant continuing to
be paid, after the death of the Participant, to and for
the lifetime of the Participant’s surviving Spouse. If
the Participant fails to elect a specific percentage of
the monthly benefit to be paid to the Spouse, the
percentage shall be fifty percent (50%). Within the
time period described in Section 5.5(b) (Notice), the
Plan Administrator shall provide to each Participant a
written explanation of:

	 	(1)	 	The terms and conditions
of the Spouse Annuity;
	 
	 	(2)	 	the Participant’s right
to waive the Spouse Annuity and the effect
thereof;
	 
	 	(3)	 	the Participant’s right
to revoke his waiver of the Spouse Annuity, and
the effect thereof; and
	 
	 	(4)	 	the rights of the
Participant’s Spouse.

     (d) Payment of Death Benefits. Upon the death of a Participant, the Plan
Administrator shall (except as otherwise provided in Article XIII (Insurance
Provisions) and

67

 

Section 5.5(a) (Application)) direct the Trustee to pay or
arrange as promptly as possible to pay, in the manner described below, the
balance of such Participant’s Distributable Account (reduced by any prior
distributions) to his Surviving Spouse or, if there is no Surviving Spouse or
if the Surviving Spouse has consented in the manner described in Section 5.5(e)
(Spouse Consent), to his Beneficiary, as follows:

	 	(i)	 	Form for Payment. If benefits have begun to be
paid to the Participant prior to his death in a form that
would continue payments to his Beneficiary after his death,
then such payments shall continue according to the method for
payment selected by the Participant, unless the Participant
elected a payment form under Section 5.5(c)(ii)(C)
(Installments), in which case, the Beneficiary may accelerate
the installment payments. If benefit payments have not begun
to be made to the Participant prior to his death, Death
Benefits shall be payable in any of the following methods, at
the election of the Participant or Beneficiary, or, if no
election is made, in a single lump sum payment for that
portion of his Distributable Account not attributable to his
Money Purchase Contribution Account, and as a Survivor Annuity
described in Section 5.5(d)(i)(D) (Survivor Annuity) for the
portion of his Distributable Account attributable to his Money
Purchase Account if the Participant is married upon his death.
A separate election may be made for the portion of his
Distributable Account attributable to his Money Purchase
Account.

	 	(A)	 	Lump Sum. The Participant’s
Distributable Account shall be paid in a single lump sum
payment.
	 
	 	(B)	 	Partial Distribution. One
distribution of any part of the Participant’s
Distributable Account within twelve (12) months after
the Participant’s death and one separate distribution of
the proceeds of any life insurance policy on the life of
the Participant as soon as administratively possible
following the date of death. The

68

 

	 	 	 	remaining balance may
then be paid in the normal or any other optional form.
	 
	 	(C)	 	Installments. The Participant’s
Distributable Account shall be paid in substantially
equal annual installments, as selected by the
Beneficiary, over a period selected
by the Beneficiary, but not to exceed a period
extending beyond the life expectancy of the
Beneficiary.
	 
	 	(D)	 	Survivor Annuity. The portion of the
Participant’s Distributable Account (reduced by any
prior distributions) attributable to his Money Purchase
Contribution Account, or, if the Spouse Annuity form for
payment of retirement benefits has been elected by the
Participant and the Participant dies before the Spouse
Annuity is purchased, unless the Spouse or Participant
has elected otherwise, with the consent of his Spouse
pursuant to Section 5.5(e) (Spouse Consent), the
Participant’s Distributable Account, shall be used, as
promptly as possible, to purchase an annuity for his
Spouse with payments under such annuity payable to such
Surviving Spouse beginning on the first day of the month
following the Participant’s death (or, at the election
of the Surviving Spouse, beginning at such later date as
may be selected (but not later than the date the
Participant would have reached an Attained Age of
70-1/2)) and continuing for the lifetime of the
Surviving Spouse (a “Survivor Annuity”). If there is no
Surviving Spouse or if the Surviving Spouse has
consented in the manner described in Section 5.5(e)
(Spouse Consent), the Plan Administrator shall direct
that such portion of the Participant’s Distributable
Account be paid to the Beneficiary designated by the
Participant in accordance with Section 5.5(d)(iv)
(Designation of Beneficiary by Participant) in the form
elected by the Participant or the Beneficiary, as the
case may be.

69

 

	 	(1)	 	Waiver of Survivor
Annuity. Each Participant to whom the Survivor
Annuity applies shall be entitled to waive the
Survivor Annuity by electing an alternative
payment method during the Waiver Period. Such
election may be
revoked at any time during the Waiver Period.
Any waiver or revocation must be in writing and
must be delivered to the Plan Administrator
during the Waiver Period. Any waiver of the
Survivor Annuity must contain the consent of the
Participant’s Spouse in the manner described in
Section 5.5(e) (Spouse Consent).
	 
	 	(2)	 	Waiver Period. For
purposes of waiving the Survivor Annuity, the
Waiver Period is:

	 	(a)	 	with respect
to the portion of the Participant’s
Distributable Account not attributable to
his Money Purchase Contributions the ninety
(90) day period ending on the Participant’s
Annuity Starting Date;
	 
	 	(b)	 	with respect
to the portion of the Participant’s
Distributable Account attributable to his
Money Purchase Contribution Account, the
period beginning on the date the
Participant’s Plan participation begins and
ending on the Annuity Starting Date. Any
waiver of a Survivor Annuity prior to the
first day of the Plan Year in which the
Participant reaches an Attained Age of
thirty-five (35) becomes invalid on that
date and the Participant must execute a new
waiver and obtain the consent of his Spouse
to such waiver in order to continue the
waiver of the Survivor Annuity in effect
after that date. A Participant who
terminates

70

 

	 	 	 	his Company employment prior to
the first day of the Plan Year in which he
reaches an Attained Age of thirty-five (35)
shall be required to obtain a
waiver or new waiver during the period
beginning on the date which is one (1)
month prior to the date the Participant
separates from service and ending on his
Annuity Starting Date in order for the
waiver to be effective.

	 	(3)	 	Notice Requirements. The
Plan Administrator shall provide to each
Participant a written explanation of the Survivor
Annuity described in Section 5.5(d)(i)(D)
(Survivor Annuity), including:

	 	(a)	 	the terms and
conditions thereof;
	 
	 	(b)	 	the
Participant’s right to make, and the effect
of, a waiver of the Survivor Annuity;
	 
	 	(c)	 	the rights of
the Participant’s Spouse; and
	 
	 	(d)	 	the right to
make, and the effect of, a revocation of any
waiver of the Survivor Annuity.

	 	 	 	The explanations with respect to the portion of
the Participant’s Distributable Account not
attributable to his Money Purchase Contribution
Account shall be provided within the time period
described in Section 5.5(b) (Notice) before the
Participant’s Annuity Starting Date.
	 
	 	 	 	The explanations with respect to the portion of
the Participant’s Distributable Account
attributable to his Money Purchase Contribution
Account, shall be provided

71

 

	 	 	 	on the date the
Employee first becomes a Participant and again
either:

	 	(e)	 	during the
period beginning with the first day of the
Plan Year in which the Participant reaches
an Attained Age of thirty-two (32) and
ending with the close of the Plan Year
preceding the Plan Year in which the
Participant reaches an Attained Age of
thirty-five (35); or
	 
	 	(f)	 	within a
reasonable period after separation from
service, in the case of a Participant who
separates from Company employment before
reaching an Attained Age of thirty-five
(35).

	 	(ii)	 	Elections. A Participant may, at any time prior
to his death, elect, on forms prescribed by the Plan
Administrator, and with the consent of his Spouse, if
required, the manner in which Death Benefits will be paid.
Subject to Section 5.5(g) (Permanent Elections), a
Participant’s Beneficiary can change the manner of payment
after the Participant’s death. In such case, the Beneficiary
may select from the options otherwise available to the
Participant.
	 
	 	(iii)	 	Time for Payment. Payments under this Section
5.5(d) shall be made (or begin) within one (1) year following
the date of the Participant’s death, except that a Surviving
Spouse may elect to delay receipt of such payment until the
date on which the Participant would have reached an Attained
Age of seventy and one-half (70-1/2).
	 
	 	(iv)	 	Designation of Beneficiary by Participant. A
Participant shall have the right to file with the Plan
Administrator, at any time after his Plan participation
commences, a written designation of Beneficiary, which

72

 

	 	 	 	designation may at any time be amended or revoked; provided,
however, that:

	 	(A)	 	No designation, and no amendment or
revocation thereof, shall become effective if filed
after such Participant’s death.
	 
	 	(B)	 	In the case of a married Participant,
his designation of any Beneficiary other than his Spouse
must be consented to by such Spouse in writing in
accordance with the requirements of Section 5.5(e)
(Spouse Consent).
	 
	 	(C)	 	In the absence of an effective
designation of Beneficiary, or if the Beneficiary shall
not survive the Participant, then his Death Benefits
shall be paid to the individual (or to the individuals
in equal shares, per capita) in the first of the
following classes of successive preference Beneficiaries
in which there shall be any individual surviving such
Participant:

	 	(1)	 	His Spouse,
	 
	 	(2)	 	His children (or children
of deceased children, by right of representation),
	 
	 	(3)	 	His parents, or
	 
	 	(4)	 	His brothers and sisters
(or children of deceased brothers and sisters, by
right of representation).

	 	 	 	In the event of the failure of all of the above
categories, then the Death Benefits shall be paid to
the Participant’s estate.
	 
	 	(D)	 	In determining who are “children” for
the purposes of paragraph (c) above, adopted persons
shall be treated as if they were the natural offspring
of their adoptive parents.

73

 

	 	(E)	 	Any designation of the Participant’s
Spouse as a Beneficiary shall automatically immediately
be revoked in the event of the Participant’s divorce
from his Spouse.
	 
	 	(F)	 	In the event the Participant’s
Beneficiary disclaims his interest in any payments from
the Plan, amounts payable as a result of the
Participant’s death shall thereafter be payable from the
Plan as if the Beneficiary had predeceased the
Participant. The Plan Administrator shall have no
obligation to establish the validity of any disclaimer
presented to it.
	 
	 	(G)	 	In the event the Participant’s
primary Beneficiary dies after the Participant, but
before receiving any of the benefits due to him from the
Plan, amounts payable as a result of the Participant’s
death shall thereafter be payable to the Participant’s
surviving contingent Beneficiary, if any. If the
Participant’s primary Beneficiary dies after he begins
receiving benefits from the Plan, or the Participant did
not designate a contingent Beneficiary, any remaining
benefits shall be paid to the primary Beneficiary’s
estate.

	 	 	 	The Participant’s Beneficiary, whether automatically
determined or specified by the Participant shall, in any
case, be a “designated beneficiary” for purposes of
distributions under Code Section 401(a)(9) and Section 5.5(f)
(Required Distributions).
	 
	 	(v)	 	Designation of Beneficiary by Surviving Spouse or
Alternate Payee. The Surviving Spouse of a Participant or an
alternate payee under a “qualified domestic relations order”
shall have the right to file with the Plan Administrator a
designation of Beneficiary under the following circumstances:

74

 

	 	(A)	 	A Participant’s Surviving Spouse may
do so for purposes of Section 5.5(f) (Required
Distributions).
	 
	 	(B)	 	An alternate payee under a “qualified
domestic relations order” may do so to the extent
consistent with such alternate payee’s rights under the
order.

     (e) Spouse Consent. Whenever the consent of a Spouse is required with
respect to any election, revocation of election, or designation of Beneficiary
under Section 5.5(c) (Payment of Benefits Other Than Death Benefits) or 5.5(d)
(Payment of Death Benefits), such consent shall be in writing, shall
acknowledge the effect of the election, revocation or designation, and shall be
witnessed by a notary public or by a Plan representative. There shall be no
need to obtain the Spouse consent described in this Section 5.5(e), however, if
the Participant establishes to the satisfaction of the Plan Administrator that
the required consent may not be obtained because there is no Spouse, or because
the Spouse cannot be located, or because of such other reasons as may be
permitted by regulations promulgated by the Secretary of the Treasury. For
purposes of this paragraph and Section 5.5(c) (Payment of Benefits Other Than
Death Benefits) and Section 5.5(d) (Payment of Death Benefits), a former Spouse
shall be treated as a Spouse to the extent specified in a “qualified domestic
relations order” within the meaning of Section 414(p) of the Code. A Spouse’s
consent hereunder is irrevocable unless the Participant changes his election
and shall be limited to the Beneficiary and form of payment designated. The
Spouse may, nevertheless, be permitted to consent generally to future
Beneficiary changes by the Participant and alternate selections of forms of
payment by the Participant without the need to obtain additional consent from
the Spouse, provided that the general consent acknowledges that the Spouse has
the right to limit consent to a specific Beneficiary and specific form of
benefit, where applicable, and that the Spouse voluntarily relinquishes both
rights. A Spouse’s general consent is irrevocable, except that it must be
given whenever a Participant’s election is required to be given in order to be
or to continue to be effective.

75

 

     (f) Required Distributions.

	 	(i)	 	General Rules.

	 	(A)	 	Effective Date. The provisions of
this Section 5.5(f) 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 calendar
year that are made on or after March 1, 2003.
	 
	 	(B)	 	Precedence. The requirements of this
Section 5.5(f) will take precedence over any
inconsistent provisions of the Plan.
	 
	 	(C)	 	Requirements of Treasury Regulations
Incorporated. All distributions required under this
Section 5.5(f) will be determined and made in accordance
with the Treasury Regulations under Section 401(a)(9) of
the Code, including the incidental death benefit
requirements of Treas. Reg. Section 1.401(a)(9)-2.
	 
	 	(D)	 	TEFRA Section 242(b)(2) Elections.
Notwithstanding the other provisions of this Section
5.5(f), distributions may be made under a designation
made before January 1, 1984, in accordance with Section
242(b)(2) of the Tax Equity and Fiscal Responsibility
Act (TEFRA) and the provisions of the Plan that relate
to Section 242(b)(2) of TEFRA.

	 	(ii)	 	Time and Manner of Distribution.

	 	(A)	 	Required Beginning Date. The
Participant’s entire interest will be distributed, or
begin
to be distributed, to the Participant no later than the
Participant’s Required Beginning Date.
	 
	 	(B)	 	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, by
December 31 of the

76

 

	 	 	 	calendar year immediately following
the calendar year in which the Participant died, except
that:

	 	(1)	 	If the Participant’s
Surviving Spouse is the Participant’s sole
Designated Beneficiary, then distributions to the
Surviving Spouse will begin by December 31 of the
calendar year in which the Participant would have
attained age seventy and one-half (70-1/2), if
later.
	 
	 	(2)	 	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.
	 
	 	(3)	 	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
Section 5.5(f)(ii)(B), other than Section
5.5(f)(ii)(B)(1), will apply as if the Surviving
Spouse were the Participant.

	 	 	 	For purposes of this Section 5.5(f)(ii)(B) and Section
5.5(f)(iv) (Required Minimum Distributions After
Participant’s Death), unless Section 5.5(f)(ii)(B)(3)
applies, distributions are considered to begin on the
Participant’s Required Beginning Date. If Section
5.5(f)(ii)(B)(3) applies, distributions are considered
to begin on the date distributions are required to
begin to the Surviving Spouse under Section
5.5(f)(ii)(B)(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

77

 

	 	 	 	Section
5.5(f)(ii)(B)(1)), the date distributions are
considered to begin is the date distributions actually
commence.
	 
	 	(C)	 	Forms of Distribution. Unless the
Participant’s interest is distributed in the form of an
annuity purchased from an insurance company or in a
single sum on or before the Required Beginning Date, as
of the first Distribution Calendar Year distributions
will be made in accordance with Sections 5.5(f)(iii)
(Required Minimum Distributions During Participant’s
Lifetime) and 5.5(f)(iv) (Required Minimum Distributions
After Participant’s Death). 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.

	 	(iii)	 	Required Minimum Distributions During
Participant’s Lifetime.

	 	(A)	 	Amount of Required Minimum
Distribution For Each Distribution Calendar Year.
During the Participant’s lifetime, the minimum amount
that will be distributed for each Distribution Calendar
Year may be made in any form for
payment of benefits under the Plan, as described in
Section 5.5(c) (Payment of Benefits other than Death
Benefits), but shall not be less than 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 Treasury
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

78

 

	 	 	 	Balance by the number in the Joint and
Last Survivor Table set forth in Section
1.401(a)(9)-9 of the Treasury Regulations, using
the Participant’s and Spouse’s attained ages as of
the Participant’s and Spouse’s birthdays in the
Distribution Calendar Year.

	 	(B)	 	Lifetime Required Minimum
Distributions Continue Through Year of Participant’s
Death. Required minimum distributions will be
determined under this Section 5.5(f)(iii) beginning with
the first Distribution Calendar Year and up to and
including the Distribution Calendar Year that includes
the Participant’s date of death.

	 	(iv)	 	Required Minimum Distributions After
Participant’s Death.

	 	(A)	 	Death On or After Date Distributions
Begin.

	 	(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.

79

 

	 	(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.

80

 

	 	(B)	 	Death Before Date Distributions
Begin.

	 	(1)	 	Participant Survived by
Designated Beneficiary. If the Participant dies
before the date distributions begin and there is a
Designated Beneficiary, the minimum amount that
will be distributed for each Distribution Calendar
Year after the year of the Participant’s death is
the
quotient obtained by dividing the Participant’s
Account Balance by the remaining Life Expectancy
of the Participant’s Designated Beneficiary,
determined as provided in Section 5.5(f)(iv)(A)
(Death On or After Date Distributions Begin).
	 
	 	(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 Section
5.5(f)(ii)(B)(1), this Section 5.5(f)(iv)(B) will
apply as if the Surviving Spouse were the
Participant.

     (g) Permanent Elections. Once benefit payments have commenced under any
provision of this Plan, neither the Participant nor his Beneficiary may change
his election of payment method, except to the extent specifically permitted
under the particular payment method selected. If the Participant dies after
his Annuity Starting Date or after the Trustee has

81

 

irrevocably committed to
purchase an annuity to provide that benefit, the benefit shall be paid as
elected by the Participant in accordance with Section 5.5(c) (Payment of
Benefits Other Than Death Benefits). In any other case, the benefit
payable with respect to a deceased Participant shall be a Death Benefit,
subject to the provisions of Section 5.5(d) (Payment of Death Benefits).

     (h) Unclaimed Benefits. To the extent not inconsistent with applicable
state law, in the event any benefit payment is unclaimed and the Plan
Administrator is unable to determine the whereabouts of a Participant,
Beneficiary or other person whose benefits from the Plan are due and owing
within three (3) years from the date the benefit would otherwise be payable
(which date shall be determined, in the event an application for benefits
pursuant to Section 5.5(a) (Application) shall not have been filed, as if such
application had been filed on the date the Participant’s benefits under the
Plan would have been required to commence pursuant to Section 5.5(f) (Required
Distributions)), the right to the benefit shall be forfeited and revert to and
become a part of the Trust Fund (to be used to reduce any Company Contribution
which coincides with or follows the date such amount is treated as forfeited);
provided, however, that the amount forfeited pursuant to this Section 5.5(h)
shall be reinstated (initially from current contributions and forfeitures) if
the person to whom the benefit is due and owing subsequently makes written
application therefor to the Plan Administrator. The effective date for
reinstatement of the benefit shall be the date that the written application for
benefits is received by the Plan Administrator.

     (i) Small Benefits. Notwithstanding anything in this Section 5.5(i) to
the contrary, if the balance in a Participant’s Distributable Account does not
exceed Five Thousand Dollars ($5,000), then upon the Participant or his
Beneficiary becoming entitled to payment of the Participant’s benefits as a
result of his death, Permanent and Total Disability, retirement, or termination
of employment, the Plan Administrator shall direct the Trustee to pay his
benefit to him or to his Beneficiary, as the case may be, regardless of whether
the Participant or Beneficiary has applied therefor in accordance with Section
5.5(a) (Application) or whether the Participant or the Participant’s Spouse has
consented thereto. Such payment shall be made in a single lump sum payment as
soon as administratively feasible thereafter and shall be made not later than
the end of the second Plan Year following the termination of the Participant’s
employment with the Employer Group; provided, however, that where the
Participant’s Account

82

 

balance at the time of his previous termination of
employment
with the Employer Group, or at the time of any previous distribution or
other distributable event, exceeded the applicable amount then in effect but
does not currently exceed the applicable amount, payment may be made later than
the end of the second Plan Year following the Participant’s termination of
employment with the Employer Group. Payments which have already begun in an
annuity or installment form under Sections 5.5(c) (Payment of Benefits Other
Than Death Benefits) or 5.5(d) (Payment of Death Benefits) shall not be treated
as a small benefit under this Section 5.5(i). The provisions of this Section
5.5(i) shall also apply to amounts payable to an alternate payee pursuant to a
qualified domestic relations order and, in such a case, shall be applied solely
with reference to the amounts payable to the alternate payee.

     (j) Deadline for Payment. If a Participant has not applied under Section
5.5(a) (Application) for benefit commencement under the Plan, the Participant
shall be deemed to have consented to extend the payment of benefits under the
Plan beyond the limits described in this Section 5.5(j). Otherwise, the
payment of benefits under the Plan to a Participant, except as provided in
Section 5.5(f) (Required Distributions), which may require payment of benefits
to begin earlier than required by this Section 5.5(j), shall begin not later
than the sixtieth (60th) day after the close of the Plan Year in which occurs
the latest of the following:

	 	(i)	 	His reaching his Normal Retirement Age.
	 
	 	(ii)	 	The tenth (10th) anniversary of the date he
commenced participation in the Plan.
	 
	 	(iii)	 	The termination of his employment with the
Employer Group.

     Notwithstanding the foregoing, if the amount of the payment required to
commence on the date determined pursuant to this Section 5.5(j) cannot be
ascertained by such date or if the Plan Administrator has been unable to locate
the Participant after making reasonable efforts to do so, a payment retroactive
to such date may be made no later than sixty (60) days after the earliest date
on which the amount of such payment can be ascertained under the Plan or the
date on which the Participant is located (whichever is applicable).

83

 

     (k) Direct Rollovers. A Distributee may elect, at the time and in the
manner prescribed by the Plan Administrator, to have any portion of an Eligible
Rollover Distribution paid directly to an Eligible Retirement Plan specified by
the Distributee in a Direct Rollover.

5.6 Benefit Recipients.

     (a) Distributions to Participants. Except as provided in Section 5.5(k)
(Direct Rollovers) or Section 12.4(b) (Qualified Domestic Relations Orders),
payment of Plan benefits shall be made only to the Participant or, if
applicable, to his Beneficiary.

     (b) Distributions to Minors and Incompetent Individuals. If an individual
to whom benefits shall be distributable hereunder shall be a minor or adjudged
mentally incompetent, the Plan Administrator may in its Discretion direct the
Trustee to distribute all or part of such benefits by one or more of the
following methods:

	 	(i)	 	Directly to such minor or incompetent individual;
	 
	 	(ii)	 	To the legal representative of such individual;
or
	 
	 	(iii)	 	To another person for the use or benefit of such
individual, but only if pursuant to an order of a court of
competent jurisdiction.

Neither the Plan Administrator nor the Trustee shall be required to see to the
application of any such distributions nor to seek the appointment of a legal
representative. Distributions made pursuant to this Section 5.6 shall operate
as a complete discharge of the Committee, Trustee, the Company and the Trust
Fund.

5.7 Payment Medium. Benefits payable pursuant to the Plan shall be paid in
cash.

5.8 Distribution of Excess Deferrals. A Participant who determines that he has
made Excess Deferrals under this Plan or a combination
of this Plan and other retirement plans in which he may participate shall have
the right to notify the Plan Administrator of the Excess Deferrals and receive
a distribution of those Excess Deferrals attributable to the Plan in accordance
with this Section 5.8.

84

 

     (a) Notification to Plan Administrator. The Participant may notify the
Plan Administrator in writing not later than the February 15 next following the
calendar year in which such Excess Deferrals were made that he has allocated
all or a portion of his Excess Deferrals to the Plan; provided, however, that a
Participant is deemed to have notified the Plan of Excess Deferrals to the
extent that the Excess Deferrals arise by taking into account only his Elective
Deferrals to this Plan.

     (b) Timing of Distribution. If a Participant notifies the Plan
Administrator of Excess Deferrals allocable to the Plan in accordance with
Section 5.8(a) (Notification to Plan Administrator), the Plan Administrator
shall distribute the portion of the Excess Deferrals which the Participant has
allocated to the Plan, along with any income attributable to such amount, to
that Participant not later than the April 15th next following the calendar year
in which such Excess Deferrals were made. Income attributable to Excess
Deferrals shall be calculated under any method permitted under Section
4.2(a)(iii)(B) (Determination of Income). The amount of Excess Deferrals to be
distributed shall be reduced by the amount of any Excess Elective Deferrals
previously distributed to the Participant for the Plan Year beginning in the
Participant’s taxable year.

5.9 Payments Pursuant to a Qualified Domestic Relations Order. Notwithstanding
any other provision of the Plan to the contrary, the Plan Administrator may
instruct the Trustee to make payments to an alternate payee, pursuant to the
terms of a qualified domestic relations order (within the meaning of Section
414(p) of the Code), at a time when distributions may not otherwise be
permitted under the Plan. Furthermore, any amount which becomes payable to an
alternate payee which, with reference only to that amount, is described in
Section 5.5(i) (Small Benefits) shall be paid to the alternate payee as soon as
practicable following receipt by the Plan of a qualified domestic relations
order or the earliest date allowed under the qualified domestic relations
order, if later.

85

 

ARTICLE VI

TOP HEAVY REQUIREMENTS

6.1 Applicability. For each Plan Year in which the Plan is Top Heavy within
the meaning of Section 6.2 (Determination of Top Heavy Status), the
restrictions set forth in Section 6.3 (Top Heavy Restrictions) shall apply.

6.2 Determination of Top Heavy Status. For any Plan Year, the determination as
to whether the Plan is Top Heavy shall be made in accordance with the following
rules:

     (a) General Rule. The Plan shall be determined to be Top Heavy if, as of
the Determination Date, the sum of the Account balances of all Participants who
are Key Employees exceeds sixty percent (60%) of the sum of the Account
balances of all Key Employees and Non-Key Employees.

     (b) Required Aggregation. Notwithstanding Section 6.2(a) (General Rule),
however, there shall be aggregated with the Plan, for purposes of determining
the Plan’s Top Heavy status, each other plan of the Company (and of any member
of the Employer Group):

	 	(i)	 	in which a Key Employee is a participant, or
	 
	 	(ii)	 	which enables either the Plan or any plan
described in (i) above to meet the requirements of Section
401(a)(4) or 410(b) of the Code.

     (c) Optional Aggregation. Notwithstanding Section 6.2(a) (General Rule)
or Section 6.2(b) (Required Aggregation), any plan of the Company or of any
member of the Employer Group, other than those which are described in Section
6.2(b) (Required Aggregation), may, at the election of the Plan Administrator,
be considered with the Plan for the purpose of determining the existence of Top
Heavy status, so long as the aggregated plans, considered as a group, would
satisfy the requirements of Sections 401(a)(4) and 410(b) of the Code.

     (d) Aggregation Rule. In the event any other plan is considered with the
Plan for purposes of determining the existence of Top Heavy status whether
pursuant to Section 6.2(b)

86

 

(Required Aggregation) or 6.2(c) (Optional
Aggregation), the Plan shall be considered Top Heavy only if the sum of (i) and
(ii) below exceeds sixty percent (60%) of (iii), where

	 	(i)	 	is the sum of the account balances (within the
meaning of Section 416(g) of the Code) of all Key Employees
under all of the defined contribution plans which are being
aggregated;
	 
	 	(ii)	 	is the sum of the present values of the accrued
benefits (within the meaning of Section 416(g)(4)(F) of the
Code) for Key Employees under all of the defined benefit plans
which are being aggregated; and
	 
	 	(iii)	 	is the sum of the account balances and present
values of accrued benefits (within the meaning of Section
416(g) of the Code) for all Key Employees and Non-Key
Employees under all plans which are being aggregated.

For purposes of this Section 6.2(d), the values of account balances and present
values of accrued benefits for plans being aggregated with the Plan shall be
determined as of the determination date of such plan(s) which falls within the
same calendar year as the Determination Date for the Plan.

     (e) Special Computation Rules. The following rules shall be applied in
determining the Top Heavy status of the Plan under this Section 6.2 and for
purposes of aggregating the Plan with another plan of the Company (or Employer
Group) in order to evaluate the Top Heavy status of such other plan.

	 	(i)	 	The value of an Account for purposes of this
Section 6.2 shall mean its balance as of the Valuation Date
coincident with or next preceding the Determination Date,
including Company Contributions, if any, actually made after
the Valuation Date but on or before the Determination Date.
	 
	 	(ii)	 	The value of an Employee’s (or former Employee’s)
Account shall be increased by the value of all distributions
to that Employee (or former Employee) from the Plan, and from
any plan required to be aggregated with the Plan under Section
6.2(b) (Required Aggregation), or any

87

 

	 	 	terminated plan which,
had it not been terminated, would have been required to be so
aggregated, including any direct transfers to another plan,
but excluding distributions which are rolled over or
transferred by the Employee to another plan maintained by a
member of the Employer Group, occurring during the one (1)
year period ending on the Determination Date, unless the
distribution is already included in the value of the Account
under paragraph (i); provided, however, that the one (1) year
period shall instead be a five (5) year period for
distributions made for a reason other than separation from
service, death or disability.
	 
	(iii)	 	If an Employee has not performed any services
for the Employer Group during the one (1) year period ending
on the Determination Date, his Account shall not be
considered.
	 
	(iv)	 	The value of an Account shall include the
allocable portion of any contribution which is required to be
made under Code Section 412 to any plan which is aggregated
with the Plan pursuant to Section 6.2(b) (Required
Aggregation) or Section 6.2(c) (Optional Aggregation), and
which would be allocated as of any date not later than the
Determination Date, whether or not such contribution has been
made or is due as of the date of computation.
	 
	(v)	 	Transferred Assets shall be excluded in
determining the value of an Employee’s (or former Employee’s)
Account for purposes of this Section 6.2 if the transfer
occurred at the initiation of the Employee (or former
Employee) and did not include funds distributed from a plan
maintained by any member of the Employer Group.
	 
	(vi)	 	The Account of any individual who is a Non-Key
Employee, but who was a Key Employee for any prior Plan Year,
shall not be taken into account.
	 
	(vii)	 	The accrued benefit of a Participant (other than
a Key Employee) shall be determined under the method, if any,
that uniformly applies for accrual

88

 

	 	 	purposes under all defined
benefit plans maintained by the Employer Group, or, if there
is no such uniform method, as if such benefit accrued not more
rapidly than the slowest accrual rate permitted under the
fractional rule of Code Section 411(b)(1)(C).

6.3 Top Heavy Restrictions. For each Plan Year in which the Plan is determined
to be Top Heavy, the following requirements shall become effective,
superseding, for that Plan Year, any other provisions of the Plan to the
contrary.

     (a) Minimum Vesting. Each Participant’s interest in his Plan Account
(other than those portions which have previously become one hundred percent
(100%) Nonforfeitable) shall be determined in accordance with the following
schedule:

	 	 	 	 	 
	 	 	Nonforfeitable
	Years of Service
	 	Percentage

	Less than 2
	 	 	0	%
	2 but less than 3
	 	 	20	%
	3 but less than 4
	 	 	40	%
	4 but less than 5
	 	 	60	%
	5 but less than 6
	 	 	80	%
	6 or more
	 	 	100	%

     Application of this Section 6.3(a) shall not operate to reduce a
Participant’s previously existing Nonforfeitable interest in any portion of his
Account. Notwithstanding any other provision of this Section 6.3 to the
contrary, the modified vesting provisions described in this Section 6.3(a)
shall be effective for the first Plan Year in which the Plan is determined to
be Top Heavy and shall replace the provisions of Section 5.2(a) (Vesting) for
all periods thereafter, unless amended by the Company.

     (b) Minimum Required Allocation For Non-Key Employees.

	(i)	 	General. The Committee shall first allocate
Matching Contributions as provided in Section 4.1(b)
(Allocation of Matching Contributions), Discretionary
Contributions as provided in Section 4.1(c) (Discretionary
Contributions) and Nondiscretionary Contributions as provided
in Section 4.1(d) (Allocation of Nondiscretionary
Contributions). The Committee

89

 

	 	 	shall then allocate to the
Account of each Participant who is a Non-Key Employee, and
who, as of the last day of the Plan Year, has not terminated
his Company employment, whether or not that Participant is
otherwise entitled to an allocation pursuant to Section 4.1
(Participants’ Shares of Contributions), Top Heavy
Contributions equal to the lesser of three percent (3%) or the
percentage determined under subparagraph (ii) (Adjustment for
Small Contributions) multiplied by such Participant’s Total
Compensation, less the amount of Matching Contributions,
Discretionary Contributions, and Nondiscretionary Company
Contributions allocated for such Participant for that Plan
Year. Matching Contributions that are used to satisfy the
minimum contribution requirements of this paragraph shall be
treated as Matching Contributions for purposes of the actual
contribution test and other requirements of Section 401(m) of
the Code.
	 
	(ii)	 	Adjustment for Small Contributions.
Notwithstanding the provisions of Section 6.3(b)(i) (General),
the amount which is required to be allocated to the Accounts
of Participants who are Non-Key Employees need not be greater
than the largest allocation to the Account of a Key Employee
Participant, expressed as a percentage of that Key Employee’s
Total Compensation, as limited by Code Section 401(a)(17). For
purposes of determining the largest allocation to the Account
of a Key Employee Participant, Elective Deferrals shall be
included.
	 
	(iii)	 	Alternative Method for Satisfying the Minimum
Allocation Requirement. In the event a Participant who is a Non-Key Employee (who
is entitled to a minimum allocation pursuant to Section
6.3(b)(i) (General)) participates both in this Plan and
another Qualified plan of the Employer Group, then:

	(A)	 	If the other plan is a defined
contribution plan, any Company contributions made for
the Participant to the other plan may be

90

 

	 	 	considered
contributions made toward the minimum required
allocation for the Participant under this Plan.
	 
	(B)	 	In the event the other plan is a
defined benefit plan, the minimum allocation required to
be provided to the Participant under this Plan shall be
an amount determined by substituting five percent (5%)
in each place where three percent (3%) appears in
Section 6.3(b)(i) (General) and Section 6.3(b)(ii)
(Adjustment for Small Contributions) shall not apply.

91

 

ARTICLE VII

TERMINATION OF EMPLOYMENT

7.1 Dissolution. If a Participant’s employment with the Company terminates by
reason of complete or partial liquidation or dissolution of the Company, then
the Participant’s employment shall be deemed to have terminated under Section
5.1(a) (Normal Retirement Benefit) or Section 5.2 (Termination Benefit), as the
case may be, as of the effective date of the liquidation or dissolution, except
that for purposes of Section 5.2 (Termination Benefit), the Participant’s
Nonforfeitable percentage shall be one hundred percent (100%).

7.2 Termination in Other Circumstances. If a Participant’s employment
terminates for any reason other than the liquidation or dissolution of the
Company under Section 7.1 (Dissolution), he shall be entitled to only such
benefits as are provided by Article V (Benefits and Distributions).

7.3 Temporary Absence and Military Service. Any absence from active
employment, other than during vacations, holidays and nonbusiness hours,
constitutes the termination of employment, except as follows:

     (a) Leaves, Illness, Layoffs. Absence for less than one (1) year on
account of (i) illness, (ii) mental or physical disability (other than
Permanent and Total Disability), (iii) an occurrence for which leave is taken
which qualifies under FMLA (if the provisions of FMLA apply to the Company),
(iv) leave of absence granted in accordance with uniform rules so that all
Employees in similar circumstances are treated alike, or (v) temporary layoff
(whether or not of indefinite duration). If, however, a Participant does not
resume active employment within thirty (30) days from the expiration of the
illness, disability or non-FMLA leave of absence, or if he fails promptly to
report for work upon being recalled from the layoff, his employment or
participation, as the case may be, shall terminate upon his recovery from
illness or disability or the expiration of his leave of absence or his being
recalled from temporary layoff, as the case may be.

     (b) Armed Forces. Absence for the purpose of becoming a member of the
Armed Forces of the United States; provided, however, that if he does not
resume active employment

92

 

within the period during which he has reemployment
rights under the Uniformed Services Employment and Re-employment Rights Act, as
amended or superseded, his employment shall be deemed to have terminated on the
date his absence began.

     (c) Inactive Status. During any period when a Participant or other
Employee is not in fact actively employed by the Company, he shall not be
regarded as receiving any Creditable Compensation except that which the Company
actually pays to him during the period.

     (d) Short Absences. An absence not exceeding twenty (20) working days
shall not constitute a termination of employment if employment is immediately
thereafter resumed and the Plan Administrator shall determine in its Discretion
that the Participant in question had a satisfactory excuse for the absence.

     (e) Corrective Actions. If contributions or other credit or debit items
are allocated to a Participant’s Account due to the provisions of Section
7.3(a) (Leaves, Illness, Layoffs) or 7.3(b) (Armed Forces), and it is later
determined that the Participant’s employment should have terminated, then the
Trustee upon notification thereof shall treat such allocations as erroneous and
shall, within the limits of practicality, endeavor to undo the effects of the
allocation.

     (f) Mutual Agreement. The foregoing provisions of this Section 7.3 shall
not prevent the Company and the Participant or other Employee in question from
mutually determining that his status as an Employee shall terminate at any
designated time, either with or without cause.

7.4 No Longer Covered Employee. During any Plan Year in which a Participant
has at no time been a Covered Employee, he shall not be deemed a Participant
for purposes of allocations under Section 4.1 (Participants’ Shares of
Contributions) even though he may for other purposes still be a Participant;
provided, however, that if such failure is due to absences which are counted as
periods of employment under
Section 7.3 (Temporary Absence and Military Service), then Section 7.3
(Temporary Absence and Military Service) shall be controlling rather than this
Section 7.4.

93

 

ARTICLE VIII

COMMITTEE AND COMPANY

8.1 Composition of Committee.

     (a) Appointment of Members. The Plan shall be administered by a Committee
of three (3) or more Employees (or other individuals familiar with the affairs
and personnel of the Company) who shall be appointed by, and hold office at the
pleasure of, the Board of Directors of Steelcase Inc. Vacancies in the
Committee resulting from death, resignation, removal or otherwise shall be
promptly filled by the Board of Directors of Steelcase Inc., but the Committee
may exercise its powers and authority notwithstanding the existence of
vacancies. At any time that there are no current members of the Committee,
Steelcase Inc. shall perform the functions of the Committee.

     (b) Plan Administrator. Notwithstanding Section 8.1(a) (Appointment of
Members), the Employer shall be the Plan Administrator as defined in the Act.

8.2 Removal and Resignation. A member of the Committee may resign at any time
upon not less than ten (10) days’ written notice to the Board of Directors of
Steelcase Inc. specifying the effective date of the resignation. A member may
be removed or appointed by such Board for any reason or for no reason and at
any meeting of the Board, whether or not called for that purpose.

8.3 Actions. The Committee shall act by a majority of its members at the time
in office, and such action may be taken either by vote at a meeting or in
writing without a meeting. A member of the Committee shall not vote or act on
any matter relating solely to himself.

8.4 Officers. The Committee may appoint from among its number a Chairman to
preside at its meetings and a Secretary, who need not be a member, to keep
records of its meetings and activities and to perform other duties and
functions that the Committee may prescribe. It may in like manner designate any one or more of its members or
its Secretary to execute any instrument or document upon its behalf, and the
action of that person shall have the same force and effect as if taken by the
entire Committee. In the event of such authorization, the Committee shall in

94

 

writing notify the other Administrative Parties of the action, and those
parties shall be entitled to rely upon such notification until the Committee
gives written notification to the contrary.

8.5 Duties of Employer. In addition to its other duties and responsibilities
set forth in this Plan, the Employer shall:

     (a) Provide Notification. Notify Covered Employees of the Plan, including
the basic provisions thereof, and keep them and the other Administrative
Parties advised from time to time of any contributions thereto, any substantial
changes therein, and any discontinuance, suspension or termination thereof, as
well as the identities of, and any changes in, the Committee members and the
Trustee.

     (b) Maintain Records. Maintain records with respect to each Employee
sufficient to determine the benefits due, or which may become due, to such
Employee under the Plan.

     (c) Furnish Information. Furnish the Committee with all information
necessary for the performance of the Committee’s duties under this Plan.

     (d) Make Available Materials. Make available to the Committee for its
inspection, at all reasonable times, all such books and records of the Company
as may be reasonably necessary for the Committee’s performance of its duties
under this Plan, including but not limited to the Company’s personnel records,
annual reports and financial statements; provided, however, that the Committee
shall not be required to make such inspection but may in good faith rely upon
any statement or information furnished by or on behalf of the Company.

     (e) Establish Investment Funds. Establish, from time to time, Investment
Funds consistent with the Plan’s funding policy; provided, however, that
different Investment Funds may be established for assets held in a
Participant’s Elective Deferral Account, Matching Contribution Account,
Money Purchase Contribution Account, Employee Contribution Account,
Discretionary Contribution Account, Nondiscretionary Contribution Account and
Transferred Assets Account.

8.6 Duties of Committee. In addition to its other duties and responsibilities
set forth in this Plan, the Committee shall:

95

 

     (a) Maintain Data. Maintain or cause to be maintained the data and
information necessary for the administration of the Plan, including all
statements, reports and other information furnished to it by the other
Administrative Parties.

     (b) Make Records Available. Make available to each Participant, at all
reasonable times during business hours, a copy of this Plan and such of the
Committee’s records as pertain to such Participant or his Account.

     (c) Provide Forms. Furnish Participants at appropriate times, or upon
request, with forms for designations of Beneficiary and methods of settlement,
as provided in Section 5.5(d) (Payment of Death Benefits) and for election of
distribution options, obtaining Spouse consent, if necessary, explanations of
retirement benefit options and any other form or notice required for the Proper
operation of the Plan.

     (d) Accept/Reject Forms. Indicate acceptance or rejection of designations
of Beneficiaries or methods of settlement.

     (e) Furnish Allocation Information. Promptly furnish to the Trustee the
information necessary to determine the amount allocable to each Participant’s
Account.

     (f) Furnish Participant Information. Furnish to the Trustee such other
certificates, information and documents as the Trustee may reasonably require,
relating (but not limited) to such matters as: the identities and addresses of
all Participants and Beneficiaries; the age, compensation, Normal Retirement
Date, and employment record of every Participant; and the date of, and reasons
for, termination of a Participant’s employment.

     (g) Administer Investment Funds. Establish procedures by which
Participants can elect to invest their Accounts in the Investment Funds
pursuant to Section 10.7 (Investment Funds).

     (h) Direct Benefit Payments. Direct the Trustee as to the recipient, time
payments are to be made or to begin, and the elected form of distribution.

8.7 Duties of the Plan Administrator. In addition to those duties imposed upon
the Plan Administrator by the Act or by other provisions of this Plan, the Plan
Administrator shall:

96

 

     (a) Establish Procedures for Benefit Claims. Adopt and notify all
Participants of the terms of a uniform claims procedure which provides (i) a
procedure for claiming benefits under the Plan; (ii) adequate written notice to
any Participant or Beneficiary whose claim for benefits under the Plan is
denied, setting forth the reasons for such denial; and (iii) a reasonable
opportunity to any Participant or Beneficiary whose claim for benefits is
denied to obtain full and fair review of the decision of the Plan Administrator
denying such claim.

     (b) Establish Rules for Participation Agreements. Establish and
communicate to Covered Employees a procedure for execution and delivery of
Participation Agreements and develop and communicate to Covered Employees
administrative rules concerning designation of participation levels, timing of
designations, and related matters.

     (c) Establish Procedures for Domestic Relations Orders. Establish
reasonable procedures for determining the existence of a "qualified domestic
relations order” within the meaning of Section 414(p) of the Code and notify
affected persons of such procedures.

     (d) Reporting and Disclosure. Prepare, file and/or distribute reports,
notices and statements as may be required under the Code or the Act in
connection with the Plan.

8.8 Claims Procedure.

     (a) Notice. If a claim for benefits under the Plan is denied, in whole or
in part, the claimant shall be notified in writing or electronically of the
denial, the specific reason for the denial, the Plan provisions on which the
denial is based, an explanation of the Plan’s review procedures under Section
8.8(c) (Appeals), including applicable time limits, a description of any
additional materials necessary to perfect the claim with an explanation of why
such material is necessary, and a statement that the claimant has the right to
bring a civil action if there is still an adverse determination after the
review. For Disability Benefit claims, the notice will also include any rule,
guideline, protocol or other similar criteria relied on in making the
determination, and should the adverse determination be based on a matter of
medical judgment or necessity, an explanation of the scientific or clinical
judgment on which the determination was based, or a statement that a copy of
such rule, guideline, protocol or explanation may be obtained upon request at
no charge.

97

 

     (b) Timing of Determination. Generally, notice of the claim determination
shall be issued within ninety (90) days after the claim has been filed with the
Plan Administrator, but a notice of the claim determination for a Disability
Benefit shall be issued within forty-five (45) days. With respect to all
claims, except those for a Disability Benefit, if special circumstances beyond
the control of the Plan Administrator require an extension of time for
processing the claim, the ninety (90) day period may be extended up to an
additional ninety (90) days, to a total of one hundred eighty (180) days,
provided that the claimant is notified of the need for an extension within the
original ninety (90) day period, and the date by which the Plan Administrator
expects to render a final decision. With respect to Disability Benefit claims,
the time period may be extended for a period of up to thirty (30) days if
necessary and due to circumstances beyond the control of the Plan
Administrator, and again, if necessary and due to circumstances beyond the
control of the Plan Administrator, for an additional thirty (30) days, provided
that the claimant is notified of the need for the extension(s) within the
original forty-five (45) day period or the initial thirty (30) day extension
period, whichever is applicable. Where additional information is required, the
claimant will be informed within the original forty-five (45) day period that
he has forty-five (45) days to provide the requested information. In such
circumstances, the original forty-five (45) day period is tolled
and the Plan Administrator will have thirty (30) days from the receipt of
the requested information to make its determination. If the claimant fails to
provide the required information within that forty-five (45) day period, the
claim may be denied or the Plan Administrator may repeat the request for
information and extend the claim period an additional thirty (30) days. If the
Plan Administrator repeats the request, the Plan Administrator will have thirty
(30) days from the date it receives the request information from the
Participant to make its determination.

     (c) Appeals. In the event a claim for benefits under the Plan is denied,
in whole or in part:

	(i)	 	The claimant (or his duly authorized
representative) shall be entitled to request in writing a
review of the denial of his claim by the Plan Administrator
within sixty (60) days (one hundred eighty (180) days for
Disability Benefit claims) after the claimant receives notice
of the denial of his claim.

98

 

	(ii)	 	The claimant (or his duly authorized
representative) may review pertinent Plan documents and submit
issues and comments to the Plan Administrator in writing.
	 
	(iii)	 	Claim reviewers shall grant no deference to the
original determination, but shall assess the information
provided as if initially assessing the claim. Those
individuals reviewing claims shall be different from, and not
subordinate to, those who made the initial claim
determinations.
	 
	(iv)	 	The claimant shall be provided, upon request and
free of charge, reasonable access to, and copies of, all
documents, records, and other information relevant to the
claimant’s claim for benefits.
	 
	(v)	 	The review shall consider all comments,
documents, records, and other information submitted by the
claimant relating to the claim, without regard to whether such
information was submitted or considered in the initial benefit
determination.
	 
	(vi)	 	All claims submitted that are neither granted nor
denied in accordance with Section 8.8(b) (Timing of
Determination) shall be deemed denied and the claimant shall
be deemed to have filed a request for review.
	 
	(vii)	 	The decision of the Plan Administrator on review
shall be rendered within sixty (60) days (forty-five (45) days
for Disability Benefit claim reviews) after the request for
review is received by the Plan Administrator unless special
circumstances require an extension of time for processing the
claim, in which case a decision shall be rendered not later
than one hundred twenty (120) days (ninety (90) days for
Disability Benefit claim reviews) after the Plan Administrator
receives a request for review. The Plan Administrator shall
notify the claimant of the benefit determination as soon as
possible, but not later than five (5) days after the benefit
determination is made.

99

 

	(viii)	 	The claimant shall be furnished with notice of any such
extension of time prior to the commencement of the extension.
The notice shall provide a description of the special
circumstances that necessitate the extension and state the
date the determination on review is expected.
	 
	(ix)	 	If the decision of the Plan Administrator on
review is not furnished within the time specified in paragraph
(vii) above, the claim shall be deemed denied on review.
	 
	(x)	 	The decision of the Plan Administrator on review
shall be in writing or furnished electronically and shall
include specific reasons for the decision and specific
references to the pertinent Plan provisions on which the
decision is based. The decision shall include a statement
that the claimant is entitled to copies of documents relevant
to the claim and a statement describing any voluntary appeal
procedures and the claimant’s right to take the matter to
court. For Disability Benefit claim reviews, the identity of
any medical or vocational expert whose advice was sought will
be provided, even if not relied upon in making the
determination, and should
the adverse determination be based on a scientific or
clinical assessment of a medical judgment, an explanation of
the basis for the assessment will be provided, or a statement
that a copy of such explanation will be provided upon request
at no charge.
	 
	(xi)	 	The decision of the Plan Administrator on review
is final and binding on all persons.

8.9 Powers. The Plan Administrator shall have any and all powers and authority
which shall be Proper to enable it to carry out its duties under this Plan,
including by way of illustration and not limitation (i) the powers and
authority contemplated by the Act and by the Code with respect to Qualified
plans and (ii) the powers and authority to make rules and regulations in
respect of the Plan not inconsistent with this Plan, the Code or the Act and to
determine, consistently therewith, all questions that may arise as to the
status and rights of Participants and Beneficiaries and any other persons. The
Plan Administrator may retain such consultants, attorneys, or

100

 

advisors as it
may deem Proper in order to carry out its duties under the Plan and the fees
and expenses for retaining such attorneys, consultants, or advisors may be
charged as an expense of the Plan.

8.10 Discretion; Nondiscrimination. Wherever it is provided in this Plan that
the Plan Administrator or its delegee may perform or not perform any act, or
permit or consent to any action, nonaction or procedure, or wherever the Plan
Administrator is given discretionary power or authority, the Plan Administrator
shall have exclusive Discretion in the premises; provided, however, that the
Plan Administrator shall not exercise its Discretion in such a manner as to
violate the Code or the Act or knowingly to discriminate either for or against
any Participant, Covered Employee or Beneficiary or any group of such persons.

8.11 Fiduciaries and Named Fiduciaries.

     (a) Identity. The Employer, the Committee, the Trustee and the Steelcase
Inc. Investment Committee shall be named fiduciaries under the Plan, within the
meaning of Section 402(a) of the Act, solely to the extent of their respective
responsibilities
specified in the Plan and the Trust. The Committee shall exercise all
discretionary authority and control which is not specifically granted to the
Employer, the Trustee or the Steelcase Inc. Investment Committee with respect
to management of the Plan.

     (b) Responsibility. Each fiduciary (including named fiduciaries) under
this Plan shall be solely responsible for its own acts or omissions. Except to
the extent required by the Act, no fiduciary shall have the duty to question
whether any other fiduciary is fulfilling all of the responsibilities imposed
upon such other fiduciary by Federal or State law. No fiduciary shall have any
liability for a breach of fiduciary responsibility of another fiduciary with
respect to this Plan unless it participates knowingly in such breach, knowingly
undertakes to conceal such breach, has actual knowledge of such breach and
fails to take reasonable remedial action to remedy said breach or, through its
negligence in performing its own specific fiduciary responsibilities which give
rise to its status as a fiduciary, it enables such other fiduciary to commit a
breach of the latter’s fiduciary responsibility.

101

 

     (c) Prior Actions. No fiduciary shall be liable with respect to a breach
of fiduciary duty if such breach is committed before it became a fiduciary or
after it ceased to be a fiduciary.

     (d) Allocation of Responsibility. The named fiduciaries may allocate
their fiduciary responsibilities (other than trustee responsibility within the
meaning of Section 405(c)(3) of the Act) among themselves and may make
provision for the delegation of fiduciary responsibility (other than trustee
responsibility within the meaning of Section 405(c)(3) of the Act) under the
Plan to persons who are not named fiduciaries of the Plan. Such allocation or
delegation shall be accomplished by a written instrument executed by the named
fiduciary or fiduciaries in question, which instrument may be revoked at any
time by the named fiduciary. If the fiduciary responsibilities (other than
trustee responsibility within the meaning of Section 405(c)(3) of the Act) of a
named fiduciary are allocated or delegated to any other person, the named
fiduciary shall not be liable for the acts or omissions of such person, except
to the extent that the named fiduciary violated Section 404(a)(1) of the Act:

	(i)	 	With respect to such allocation or delegation, or
	 
	(ii)	 	With respect to the establishment or
implementation of the method for accomplishing such allocation
or delegation specified above, or
	 
	(iii)	 	By continuing such allocation or delegation.

     (e) Multiple Capacities. Any person or entity may serve in more than one
(1) fiduciary capacity under the Plan, as, for example, serving on the
Committee and as Trustee.

     (f) No Relief for Fraud. Nothing in this Section 8.11 (Fiduciaries and
Named Fiduciaries) shall be deemed to relieve any person from liability for his
own willful misconduct or fraud.

102

 

ARTICLE IX

RETIREE HEALTH ACCOUNTS

9.1 Eligibility for Retiree Health Account. A “Retiree Health Account” shall
be established with respect to each Retiree Health Participant on or after the
Retiree Health Effective Date.

9.2 Retiree Health Contributions. For each Plan Year ending after the Retiree
Health Effective Date, the Company shall contribute in cash, with respect to
each Retiree Health Participant employed by the Company during that Plan Year,
an amount determined under an age-based formula developed and approved by the
Employer prior to the end of that Plan Year. Such contributions shall be made
no later than the time set forth for other contributions to the Plan under
Section 3.1(f) (Time for Making Company Contributions (Other Than Elective
Deferrals)).

     (a) Limitation on Contributions. During each of the first five (5) Plan
Years of a Participant’s participation in the Plan, the contribution made with
respect to the Participant under this Section 9.2 shall be limited to
twenty-five percent (25%) of the aggregate of the amount allocated to his
Account under Section 4.1(c) (Discretionary Contributions) and the amount
allocated to his Retiree Health Account under this Section 9.2.

     (b) Partial Year of Participation. The amount to be contributed on
behalf of a Retiree Health Participant who completes less than twelve (12)
months of employment during the Plan Year as a Retiree Health Participant shall

be reduced by multiplying the amount otherwise determined under this Section
9.2 by a fraction, the numerator of which is the number of months during the
Plan Year in which the Participant had at least one Hour of Service as a
Retiree Health Participant, and the denominator of which is twelve (12).
Contributions will not be reduced, however, on account of any leave of absence
approved by the Company.

9.3 Allocations to Retiree Health Accounts. The contributions made under
Section 9.2 (Retiree Health Contributions) shall be allocated to the Retiree
Health Accounts of the Participants with respect to whom the contributions are
made. The Retiree Health Accounts serve only as bookkeeping accounts to track
the amount available to a Retiree to pay for

103

 

Company-sponsored retiree health
coverage available to that Participant. Any Participant’s rights thereto are
only as set forth in this Article IX.

9.4 Earnings and Losses Credited to Retiree Health Account. The contributions
allocated to the Retiree Health Account of each Retiree Health Participant
shall be invested in the same manner and in the same Investment Funds as the
Participant’s Discretionary Contribution Account is invested pursuant to
Article X (The Trustee and Trust Agreement; Investments) and shall be adjusted
for income, expenses and losses in the same manner as the Participant’s Account
is adjusted pursuant to Section 4.4 (Periodic Adjustments to Accounts).

9.5 Retiree Health Account Distributions. Retiree Health Accounts may only be
used to pay for Company-sponsored retiree health coverage. Under no
circumstances may any Participant withdraw funds from the Retiree Health
Account for any other purpose. A Participant is eligible for retiree health
coverage sponsored by the Company only if he is a Retiree.

     (a) Election. A Retiree who applies for Company-sponsored retiree health
coverage within the thirty (30) day period prior to or immediately following
actual retirement shall elect the portion of his required premium for such
coverage to be paid from his Retiree Health Account. A retiree may defer
enrollment in Company-sponsored retiree health coverage by submitting to the
Company, within the thirty (30) day period prior to or immediately following
actual retirement, written proof of enrollment in alternative group health
coverage. The Retiree may then subsequently enroll in Company-sponsored
retiree health coverage and make an election under this Section 9.5(a) upon
submitting proof of the loss of the alternative group health coverage, provided
that the proof of such loss is submitted within the thirty (30) day period
prior to or immediately following the effective date of the loss.

	(i)	 	Procedures. The election shall be made in the
manner prescribed by the Plan Administrator, before the first
day of each Plan Year or, for the Plan Year in which the
Retiree retires or loses alternative group coverage, before
the first day of the month following the month in which his
actual retirement occurs or proof of loss of alternative group
health coverage is provided. The election may be made only in
twenty-five percent (25%) increments of the required premium.
A Retiree who fails to make a timely

104

 

	 	 	election under this
Section 9.5(a) shall be deemed to have elected the same
percentage as in effect for the prior Plan Year or, if no
election was in effect for the prior Plan Year, fifty percent
(50%).
	 
	(ii)	 	Retiree’s Failure to Pay Full Required Premiums.
If the Retiree has elected to have less than one hundred
percent (100%) of his required premium paid by the Plan, and
the Retiree in any month fails to pay the remaining portion of
the premium, the Plan shall pay the remaining portion of the
premium from the Retiree’s Retiree Health Account (to prevent
cancellation of coverage), unless the Retiree otherwise
directs the Plan Administrator within the thirty (30) day
period following the date the premium is due.
	 
	(iii)	 	Election Between COBRA and Retiree Health
Account Distributions. If a Retiree elects continuation
coverage under COBRA, the Retiree may not make an election
under Section 9.5(a) (Election). A Retiree may not use his
Retiree Health Account to purchase retiree health coverage
from the Company and receive continuation coverage under
COBRA.

     (b) Transfers Between Locations. A Participant who has a Retiree Health
Account on account of prior employment at an Eligible Location, but who
transfers to a location that is not an Eligible Location, shall not be eligible
for distributions from his Retiree Health Account if at the time of
termination of employment the Participant is employed at a location that is not
an Eligible Location. If the Participant returns to employment at an Eligible
Location and is a Retiree Health Participant at the time of termination of
employment, years of employment within the Employer Group and with Workstage
LLC are counted for purposes of satisfying the Rule of 80 or the Grandfather
Rule.

     (c) Application of Elected Amounts. The Company may establish for a
Retiree Health Participant an unfunded credit account outside the Plan that may
also be used by the Retiree toward his premium payment for retiree health
coverage. If a Retiree has made an election pursuant to Section 9.5(a)
(Election) to have all or a portion of his premium paid by his Retiree Health
Account, such amount shall first be paid or debited from the unfunded credit

105

 

account maintained by the Company until that account is exhausted. Any
remaining premiums or portions thereof shall be paid by the Plan from the
Retiree’s Retiree Health Account. The amounts to be paid by the Plan shall be
paid by the Trustee in cash to the applicable insurer, if the Company-sponsored
retiree health coverage is insured, or to the trust established for the plan
providing such coverage, if not insured, and shall reduce the premium amount
otherwise owed by the Retiree for such coverage.

     (d) Death of Retiree Health Participant. Any eligible dependents covered
under a Company-sponsored health plan at the time of the death of a Retiree
Health Participant shall be eligible to elect as follows:

	(i)	 	After Rule of 80 or Grandfather Rule is
Satisfied. Eligible and covered dependents of a Participant
who, at the time of his death, had satisfied the Rule of 80 or
the Grandfather Rule, shall have access to his Retiree Health
Account on the same basis as would the Participant, had he
survived. The covered dependents who elect continuation
coverage under COBRA, however, may not make an election under
Section 9.5(a) (Election).
	 
	(ii)	 	Before Rule of 80 or Grandfather Rule is
Satisfied. Eligible dependents of a Participant who at the
time of his death, had not satisfied the Rule of 80 or
the Grandfather Rule, shall not have access to the
Participant’s Retiree Health Account.

Any funds remaining allocated to the Participant’s Retiree Health Account after
there are no longer any eligible dependents under Section 9.5(d)(i) (After Rule
of 80 or Grandfather Rule is Satisfied), shall be reallocated to the Retiree
Health Accounts of the remaining Retiree Health Participants as part of the
contribution made pursuant to Section 9.2 (Retiree Health Contributions), and
shall reduce the Company contribution otherwise determined.

9.6 Failure to Satisfy Rule of 80 or Grandfather Rule or Loss of Coverage. A
Participant shall no longer have any right to Plan payments for
Company-sponsored retiree health coverage if (a) he terminates employment with
the Employer Group prior to satisfying the Rule of 80 or Grandfather Rule, or
(b) fails to timely apply pursuant to Section 9.5(a) (Election) for
Company-sponsored retiree health coverage either when he is first eligible (and
has not provided written proof of other group health coverage), or after losing
his alternative group health coverage. Any funds allocated to the Retiree
Health Account maintained with respect to such a Participant or Retiree shall
be reallocated to the Retiree Health Accounts of the remaining Retiree Health
Participants as part of the contribution made pursuant to Section 9.2 (Retiree
Health Contributions), and shall reduce the Company contribution otherwise
determined.

106

 

ARTICLE X

THE TRUSTEE AND TRUST AGREEMENT; INVESTMENTS

10.1 The Trustee. The Employer has entered into a Trust Agreement under the
terms of which a Trust Fund has been established to receive and hold
contributions payable by the Company pursuant to the Plan and the Prior Plan.
The Trustee may be removed and replaced by any successor Trustee, from time to
time by action of Steelcase Inc.

10.2 Form and Terms of the Trust Agreement. The Employer may from time to time
modify the form and terms of the Trust Agreement to accomplish the purposes of
the Plan.

10.3 Fiduciary of Trust Fund. Except to the extent that such authority and
duty are transferred to the Employer, Participants, within the meaning of
Section 404 of the Act, the Steelcase Inc. Investment Committee, or an
Investment Manager pursuant to the Plan or the Trust Agreement, the Trustee
shall be the fiduciary with respect to the investment, management and control
of the Trust Fund with full Discretion, management and control thereof. The
Employer may transfer to itself or the Steelcase Inc. Investment Committee, or
the Steelcase Inc. Investment Committee may transfer to an Investment Manager,
the authority and duty to direct the investment of all or part of the Trust
Fund. Such transfer shall be made by written instrument executed on behalf of
the Employer or the Steelcase Inc. Investment Committee, as the case may be,
and by the party so appointed, who shall thereby acknowledge that he is a
fiduciary under the Plan with respect to investments of the Plan’s assets.
Upon any such transfer of authority and duty, the Employer, the Steelcase Inc.
Investment Committee or the Investment Manager, as the case may be, shall be
the fiduciary with respect to the investment and management of such assets of
the Trust Fund, and the Trustee shall be relieved of all responsibility with
respect to the investment and management thereof.

10.4 Transfer of Investment Authority. In the event that the authority and
duty to direct the investment of all or part of the Trust Fund are transferred
to a party other than the Trustee, the following rules shall apply.

     (a) Transfer to Employer or Steelcase Inc. Investment Committee. If
investment direction is transferred to the Employer, the Steelcase Inc.
Investment Committee or the

107

 

Committee, the Trustee shall not be liable or
responsible for the consequences arising from the Trustee’s compliance with the
directions of the Employer, the Steelcase Inc. Investment Committee or the
Committee which are made in accordance with the terms of the Trust and which
are not contrary to the provisions of applicable law regulating such investment
and management of the assets of an employee benefit trust.

     (b) Transfer to Investment Manager. If investment direction is
transferred to an Investment Manager, the Trustee shall not be liable or
responsible for any consequences arising from the Trustee’s compliance with
investment or management directions received by the Trustee from the Investment
Manager. The Trustee shall be under no duty to question any directions of the
Investment Manager, nor to review in any respect the manner in which the
Investment Manager exercises its authority and discharges its duties with
respect to the assets of the Trust Fund as to which it has been so appointed.

     (c) Transfer to Participants. In the event investment authority has been
transferred to Participants, within the meaning of Section 404(c) of the Act,
the Trustee shall not be liable or responsible for any consequences arising
from the Trustee’s compliance with investment instructions received by the
Trustee from the Participants.

10.5 Bonding. Except as otherwise exempted by Section 412 of the Act, every
fiduciary of the Plan, within the meaning of the Act, and every person who
handles funds or other property of the Plan shall be bonded in accordance with
Section 412 of the Act.

10.6 Funding Policy. The Plan Administrator shall from time to time establish
a funding policy and method consistent with the objectives of the Plan and the
requirements of Title I of the Act. The funding policy and method so
established shall be reviewed by the Plan Administrator at least annually. In
establishing and reviewing such funding policy and method, the Plan
Administrator shall consider the short-term and long-term investment objectives
and financial needs of the Plan, taking into account the need for liquidity
to pay for benefits and the need for investment growth. All actions of the
Plan Administrator in accordance with this Section 10.6 shall be communicated
to the Trustee and to the Employer.

108

 

10.7 Investment Funds.

     (a) Participants’ Interests in Investment Funds. The Trust Fund shall
consist of one or more Investment Funds in which each Participant with any
interest therein shall have an undivided proportionate interest. Each
Participant’s undivided proportionate interest in each Investment Fund shall be
determined according to the ratio that the value of the portion of such
Participant’s Account which is invested in that Investment Fund bears to the
total value of all Participants’ Accounts (or portions of them) invested in
that Investment Fund on the date of determination.

     (b) Addition or Deletion of Investment Funds. The Employer shall have the
right to establish additional Investment Funds and abolish Investment Funds at
any time, in its Discretion, in furtherance of the funding policy and
investment objectives established by the Plan Administrator.

     (c) Participant Elections. Whenever there shall exist two (2) or more
Investment Funds, each Participant may elect the portion of his Account which
is to be invested in each Investment Fund (or change an existing election).
The Employer may make different investment funds available for investment of
assets held in the Participant’s Elective Deferral Account, Matching
Contribution Account, Money Purchase Contribution Account, Employee
Contribution Account, Discretionary Contribution Account, Nondiscretionary
Contribution Account and Transferred Assets Account, if any; provided, however,
that a Participant may only make a single investment election for both the
Discretionary Contribution Account and Nondiscretionary Contribution Account,
and a single investment election for both the Elective Deferral Account and the
Matching Contribution Account. The election (or change of an existing
election) may apply both to the existing Account balance and to future
contributions and earnings thereon or, in the Committee’s Discretion, a
Participant may elect to apply his investment election separately to the
Account and to future contributions and earnings thereon. Such election (or
change in an existing election) shall be accomplished in accordance with
procedures established by the Committee governing the percentage increments in
which elections may be made, the portion of each Participant’s
Account which will be subject to investment by the Participant and the
manner and timing for making such elections.

     (d) Implementation. The Committee may instruct the Trustee to transfer
amounts among the Investment Funds in order to implement the instructions of
Participants concerning investment of their Accounts.

109

 

ARTICLE XI

TERMINATION AND AMENDMENT

11.1 Termination of Plan. It is the present intention of the Company
permanently to maintain the Plan and continue to make contributions under
Section 3.1 (Time and Amount of Company Contributions); provided, however, that
subject to the provisions of Section 12.2 (Nonforfeitability) and the
requirements of the Act and the Code:

     (a) Steelcase Inc., acting through its Board of Directors, or its delegee,
reserves the right at any time to revoke or terminate the Plan in its entirety
or to partially terminate the Plan, or to terminate or temporarily or
permanently suspend its liability to make contributions to the Trust. Each
Company, acting through its Board of Directors, retains the right to terminate
the Plan to the extent that it relates to that Company and its Employees. This
Plan shall automatically terminate and contributions to the trust shall cease
upon the Employer’s legal dissolution, or upon its adjudication as bankrupt or
insolvent, or upon a general assignment by the Employer for the benefit of
creditors, or upon the appointment of a receiver for its assets, or if required
by ERISA or the Code.

     (b) In the event of any termination, partial termination or suspension
under paragraph (a) above, or under operation of applicable law, the Company
shall give such timely notice thereof to the Internal Revenue Service and the
Department of Labor as may be required by provisions of the Act or Code.

     (c) In the event of any termination, partial termination or permanent
suspension under paragraph (a) above, or under operation of applicable law, and
subject to Section 12.2 (Nonforfeitability), the right of each affected
Participant (as to whom the Plan has terminated or with respect to whom a
permanent suspension has occurred) to the amount credited to his Account at the
time of termination, permanent suspension, or partial termination immediately
become Nonforfeitable.

     (d) Termination of the Plan shall not have the effect of reducing or
eliminating any protected benefit, within the meaning of Section 411(d)(6) of
the Code and regulations promulgated thereunder.

110

 

11.2 Liquidation of Plan. In the event of termination of the Plan without
establishment of a successor plan, the Trustee shall proceed as promptly as
possible, subject to any directions from the Committee, to liquidate all
investments, other than Insurance Contracts, and shall thereupon determine the
value of each Participant’s Account under Section 4.6 (Distributable Accounts)
as of the date of termination. After each such Account has been appropriately
adjusted to cover any expenses of distribution and final liquidation costs, the
Trustee shall pay the balance of such Account to the Participant (or, if
deceased, his Beneficiary) in a lump sum or in such other method of
distribution as may be permitted under Section 5.5(c) (Payment of Benefits
Other Than Death Benefits), as selected by the Participant (or Beneficiary).
Any Insurance Contract issued in respect of any Participant shall be delivered
to him or, if deceased, to his Beneficiary at as early a date as is
administratively feasible after termination. For purposes of this Section
11.2, the term "successor plan” means any other defined contribution plan
(other than an employee stock ownership plan) maintained by the Employer that
exists at the time the Plan is terminated or within the period ending twelve
(12) months after distribution of all assets from the Plan. Such other plan
shall not be treated as a successor plan, however, if fewer than two percent
(2%) of the employees who are eligible under this Plan at the time of its
termination are or were eligible under the other plan at any time during the
twenty-four (24) month period beginning twelve (12) months before the time of
the termination.

11.3 Termination of Trust. Notwithstanding termination of the Plan, the Trust
shall terminate when the Trust Fund is entirely paid out and distributed in
accordance with its terms and the terms of this Plan.

11.4 Amendment. Steelcase Inc., acting through its Board of Directors or its
delegee, reserves the right at any time and from time to time, to amend the
Plan, without the consent of any Participant or Beneficiary, or any other
Company in any manner
which it deems to be Proper, whether or not (i) for reasons of business
necessity or (ii) for the purpose of causing the Plan and Trust to be Qualified
or to continue to be Qualified.

     (a) No Increase in Liabilities. No such amendment, except upon written
consent of the affected person, shall increase the duties or liabilities of the
Trustee or the Committee, or diminish their remuneration.

111

 

     (b) Retroactivity Allowed. Any modification, alteration or amendment may
be made effective retroactively within the limits satisfactory to the Internal
Revenue Service and the Department of Labor.

     (c) Benefits Preserved. Notwithstanding anything contained in this
Section 11.4 to the contrary, no amendment to the Plan shall decrease the
Account balance of any Participant or have the effect of eliminating or
reducing any protected benefit within the meaning of Section 411(d)(6) of the
Code or any early retirement benefit or retirement-type subsidy or eliminating
an optional form for payment of benefits with respect to benefits attributable
to service accumulated prior to the amendment.

     (d) Vesting Changes. In the event the Employer adopts an amendment to the
Plan which changes the Plan’s vesting provisions such that the Nonforfeitable
percentage of any Participant, when determined under the Plan as so amended,
would at any time be less than would have been the case absent such amendment,
then the following rules shall apply.

	(i)	 	Election. Each Participant who has completed at
least three (3) years of service (within the meaning of Treas.
Reg. Section 1.411(a)-8T(b)(3)) shall be permitted to elect,
during the election period described in (ii), to have his
Nonforfeitable percentage determined without regard to such
amendment.
	 
	(ii)	 	Election Period. The election described in
paragraph (i) may be made during the period which begins not
later than the date on which the Plan amendment is adopted and
which ends no earlier than the latest of the following dates:

	(A)	 	The date which is sixty (60) days
after the day the Plan amendment is adopted.
	 
	(B)	 	The date which is sixty (60) days
after the day the Plan amendment becomes effective.
	 
	(C)	 	The date which is sixty (60) days
after the day the Participant is issued written notice
of the Plan amendment by the Employer or Plan
Administrator.

112

 

ARTICLE XII

MISCELLANEOUS

12.1 No Reversions. Except as otherwise provided by Section 3.2 (Contributions
Conditioned Upon Deductibility) or Section 4.3 (Limitations on Annual
Contributions and Additions), the assets of the Plan shall never inure to the
benefit of the Company and shall be held for the exclusive purposes of
providing benefits to Participants and their Beneficiaries and defraying
reasonable expenses of administering the Plan; and the Company shall not be
entitled to receive or recover any part of its contributions to the Trust or
the earnings thereon.

12.2 Nonforfeitability. A Participant’s right to his benefits under the Plan
shall be one hundred percent (100%) Nonforfeitable upon his reaching his Normal
Retirement Age; provided, however, that he is then employed by a member of the
Employer Group.

12.3 Merger, Consolidation, Etc.

     (a) Transfers to Other Plans. In no event may the Plan be merged or
consolidated with, or the assets or liabilities of the Plan transferred to, any
other Qualified plan, unless each Participant would (if such other Qualified
plan were terminated after such merger, consolidation or transfer of assets or
liabilities) receive a benefit immediately after such merger, consolidation or
transfer which is not less than the benefit he would have been entitled to
receive (including protected benefits within the meaning of Section 411(d)(6)
of the Code and regulations promulgated thereunder) had the Plan been
terminated immediately before such merger, consolidation or transfer.

     (b) Transfers From Other Plans. The Employer may authorize the acceptance
of a transfer of assets and liabilities directly to the Plan from another
Qualified plan. In any such case the Plan shall preserve any features of the
transferring plan which constitute protected benefits within the meaning of
Code Section 411(d)(6). In no event may the Employer authorize the acceptance
of a transfer of assets and
liabilities from another Qualified plan unless each Participant would (if
these Plans were terminated after such transfer of assets and liabilities)
receive a benefit immediately after such merger, consolidation or transfer
which is not less than the benefit he would have been entitled to receive
(including protected benefits within the

113

 

meaning of Section 411(d)(6) of the
Code and regulations promulgated thereunder) had such other Qualified plan been
terminated immediately before such transfer.

12.4 Spendthrift Provision.

     (a) No Assignment Permitted. To the extent permitted by law, no benefits,
payments, proceeds, claims, rights or interest of any Participant or
Beneficiary in, to or under the Plan, the Trust or any part of the Trust Fund,
shall be liable or subject to the debts, contracts, liabilities, engagements or
torts of any such person, directly or indirectly, or subject to any claim of
any creditor of such person, through legal process or otherwise; nor shall any
such Participant or Beneficiary be able or permitted, voluntarily or
involuntarily, to transfer, encumber, pledge, anticipate, alienate or assign
any such benefits, payments, proceeds, claims, rights or interest, contingent
or otherwise, except as provided in Section 5.4 (Loans to Participants) and
Section 12.4(b) (Qualified Domestic Relations Orders). It is the intention and
purpose of the parties to this Plan to place the absolute title to the Trust
Fund in the Trustee alone, with power and authority to pay out the same only as
provided in this Plan.

     (b) Qualified Domestic Relations Orders. Notwithstanding Section 12.4(a)
(No Assignment Permitted), the Trustee shall honor an assignment to, or an
order to segregate assets for, or instructions to make benefit payments to a
person other than a Participant or Beneficiary if the Plan Administrator so
directs and the Plan Administrator has determined that there exists either (i)
a domestic relations order entered before January 1, 1985, under which payments
are being made or which the Plan Administrator determines should be honored or
(ii) a "qualified domestic relations order", within the meaning of Section
414(p) of the Code, pursuant to which such assignment, segregation, or payment
is required. The Plan Administrator shall establish written procedures for
determining the existence of a "qualified domestic relations order” and for compliance
by the Plan with the applicable provisions thereof.

12.5 Execution of Instruments. Except as otherwise expressly provided in this
Plan, any instrument or document to be delivered or furnished by the Company
shall be sufficiently executed if executed in the name of the Company by any of
its officers; or, where furnished or delivered by the Committee, if executed in
the name of the Committee by any member thereof; or where furnished or
delivered by the Trustee, if executed as follows:

114

 

     (a) If the Trustee consists of two (2) or more persons, if executed in the
Trustee’s name by any such person, and

     (b) In the case of any corporate Trustee (whether or not the sole
Trustee), if executed as Trustee in the name of such corporation by any of its
officers;

provided, further, that any Administrative Party shall be fully protected in
relying upon any instrument or document so executed; and such execution shall
be conclusive proof that any signature is duly authorized and that any
information contained in the instrument or document is true and correct.

12.6 Company Actions. Whenever the Company under this Plan is permitted or
required to do or perform any act or execute any paper or document, it shall be
performed or executed at the direction of the Board of Directors of the
Company, or by duly authorized officers or agents of the Company, and may be
evidenced by resolutions certified by the Secretary of the Company.

12.7 Successors, Etc. This Plan shall be binding upon, and inure to the
benefit of, the Company and subject to Sections 11.1 (Termination of Plan) and
11.4 (Amendment), its successors, the Trustee and its successors, the Committee
as from time to time constituted, and the Participants and Beneficiaries, their
heirs, personal representatives, successors, and assigns, all in accordance
with and subject to the terms of this Plan.

12.8 Miscellaneous Protective Provisions. Except as otherwise provided in this
Plan or the Act:

     (a) Any Administrative Party may request and rely upon an opinion of
counsel, who may or may not be counsel for the Company, and shall be fully
protected for any action taken, suffered or omitted in good faith reliance upon
such opinion.

     (b) No recourse under this Plan, or for any action or nonaction hereunder
or for any loss or diminution of the Trust Fund, or for any payment or
nonpayment of benefits, or for any other reason whatsoever relating to the
Plan, shall be had by any person whomsoever against any stockholder, officer,
director or Employee of the Company as such, past, present or future.

115

 

     (c) Where the establishment of any fact is in question, any Administrative
Party may in its Discretion accept as evidence thereof any properly executed
instrument or document furnished by any other Administrative Party or such
other evidence as may seem reasonable in the circumstances.

12.9 Reliance. The Company and the Plan Administrator shall be entitled to
rely upon all tables, valuations, certificates and reports or any other
information furnished to it by any actuary, accountant, or the Trustee, and
upon the opinions given by any legal counsel, in each case as selected by the
Company.

12.10 Common Control and Successorship Situations. To the extent required by
Section 414 of the Code, the following rules shall apply.

     (a) Predecessor and Successor Employers. The service of Employees who are
hired into the Employer Group from a predecessor employer on account of either
a stock or an asset acquisition shall include service with the predecessor
employer. Service with the Employer Group shall be treated as service with a
successor employer, if the Plan is taken over by such successor.

     (b) Transfers Within Employer Group. For purposes of the participation
and vesting provisions of the Plan, in the event that an
employee of a corporation or other trade or business, whether or not
incorporated, which is a member of the Employer Group is transferred to
employment with the Company (or from employment with the Company to employment
with a member of the Employer Group which has not adopted the Plan), his
service with such member or members of the Employer Group shall be treated as
service with the Company. In the event a Participant is transferred to
employment by an employer which is a member of such Employer Group, the
transferred Participant’s employment by the Company and participation in the
Plan shall not be deemed terminated by reason of such transfer, except that
such transferred Participant’s Account shall not be credited with any portion
of the Company Contributions made pursuant to Section 3.1 (Time and Amount of
Company Contributions) or forfeitures arising with respect to a Plan Year
ending within a taxable year of the Company after the taxable year in which
such transfer occurred. For purposes of eligibility for benefits hereunder, a
Participant so

116

 

transferred shall be deemed to have severed employment with the
Company at the time he is no longer employed by an employer which is a member
of the Employer Group.

     (c) Multiple Employers. If and while the Plan is maintained by more than
one employer, the participation provisions of the Plan shall be applied as if
all employees of each of the employers were employed by a single employer, and
the vesting provisions of the Plan shall be applied as if all such employers
constituted a single employer.

12.11 Indemnification by Company. To the extent permitted by the Act, the
Company shall indemnify and save harmless the Committee members and other
fiduciaries of the Plan who are officers, directors, shareholders or Employees
of the Company against any liabilities incurred by them in the exercise and
performance of their powers and duties under the Plan to the extent that such
protection would be afforded by insurance coverage under Section 410(b)(3) of
the Act.

12.12 Employment Rights Not Enlarged. The Plan as now or may hereafter exist,
shall not be construed as giving any Participant or any other person whomsoever
any legal or equitable right against the Company, or as giving any Participant
the right to be continued in the employ of the Company, and all Employees and
all Participants shall remain subject to discharge to the same extent as if this
Plan had not been adopted.

12.13 Correction of Errors and Recoupment. If any error or change in records
results in any Participant or Beneficiary receiving from the Plan more or less
than the amount to which he would have been entitled to receive had the records
been correct or had the error not been made, the Plan Administrator shall
correct the error by adjusting, as far as practicable, the future payments in
such a manner that the benefits to which such person was correctly entitled
shall be paid. The Plan Administrator shall be entitled to recoup amounts
which are overpaid to a Participant or Beneficiary and may choose to recoup by
requesting repayment from such person either in addition to or instead of
adjusting future benefit payments to such person.

12.14 Effect of Participant’s Acceptance of Payments. Acceptance by any
Participant or Beneficiary of benefit payments from the Plan shall, to the
extent of such payment, constitute a release of the Plan from liability in
connection with such payment.

117

 

12.15 Notification of Address. Each Participant, former Participant and
Beneficiary shall furnish the Plan Administrator with such information as the
Plan Administrator may reasonably require. This information shall include
written notice of his current post office address and any change in that
address. The Company, Committee and Trustee shall be entitled to rely upon the
last post office address furnished to the Plan Administrator by such person for
purposes of providing notice to such person, payment of benefits or any other
purpose.

12.16 Source of Benefit Payments. A Participant, Beneficiary or other person
claiming benefits under the Plan shall be required to look only to the Trust
for payment of his benefits and benefits are payable from the Trust only to the
extent funded through the Trust. Neither the Trustee nor the Company shall
have any liability to provide benefits which cannot be provided with amounts
held in the Trust Fund.

118

 

ARTICLE XIII

INSURANCE PROVISIONS

13.1 Type and Amount of Insurance Contracts. It is contemplated but not
required that all or part of the Trust Fund may from time to time be invested
in Insurance Contracts, at the direction of the Participant for the
Participant’s Account, on the life of a Participant who has been continuously
employed by the Company for at least three (3) years, provided that the
Participant’s share of Discretionary Contributions is sufficient to purchase at
least two thousand five hundred dollars ($2,500) of coverage under an Insurance
Contract. The portion of the Trust Fund to be invested in Insurance Contracts,
the arrangements with respect thereto, and the type of Insurance Contracts to
be purchased, shall be within the Plan Administrator’s Discretion, subject to
the following rules.

     (a) Limited Locations. Only Participants at the following locations shall
be eligible to direct investment in Insurance Contracts: Athens, Alabama, a
division of Steelcase Inc.; Attwood Corporation; East Point, Georgia, a
division of Attwood Corporation; the Fletcher, North Carolina location of the
Wood division of Steelcase Inc.; Grand Rapids, Michigan, a division of
Steelcase Inc.; Hedberg Data Systems, Inc.; Office Details Inc.; SC Development
Inc.; Steelcase Financial Services Inc.; and City of Industry, California, a
division of Steelcase Inc.

     (b) No Discrimination. The Plan Administrator shall exercise such
Discretion in a nondiscriminatory manner among the respective eligible
Participants, subject to insurability and rating rules and policies of the
Contract Issuer.

     (c) Limit on Investment. The maximum portion of any Participant’s Account
which may be invested in life insurance protection for such Participant shall
be:

	(i)	 	Less than one-half (1/2) of the aggregate amount
of the Discretionary Contributions plus forfeitures, if any,
held in his Account for less than two (2) years; or

119

 

	(ii)	 	One hundred percent (100%) of the aggregate
amount of the Discretionary Contributions and forfeitures that
have been held in the Participant’s Account for at least two
(2) years.

     (d) Investment Limit Inapplicable. The limitations contained in Section
13.1(c) (Limit on Investment) above shall not apply to cash value Insurance
Contracts taken out by the Trustee on the lives of key employees of the
Company, the proceeds of which are payable to the Trust for the benefit of the
Trust as a whole.

13.2 Application and Ownership. Applications for Insurance Contracts shall be
made by the Trustee at such time or times, in such manner, and to such Contract
Issuer as the Plan Administrator shall designate. Any such application, and
any Insurance Contract issued as a result thereof, shall provide that legal
ownership of such Insurance Contract shall vest in the Trustee and not in the
Participant in respect of whom it is issued. However, the Trustee shall
exercise all rights, options and privileges under or incident to such Insurance
Contract only in a manner directed and approved by the Plan Administrator. All
proceeds of the policies and earnings on the policies, including dividends or
other credits, shall be applied to premiums or be paid to the Trustee to be
credited to the Participant’s Account and to be distributed to the Participant
or the Participant’s Beneficiary. The Trustee shall not hold a policy after
Plan distributions to the Participant have begun.

13.3 Protective Provisions. No Contract Issuer shall be deemed a party to the
Plan and its obligation shall be measured solely by the terms of any Contracts
issued by it, except as otherwise required by the Act. It is further agreed:

     (a) A Contract Issuer may rely upon the identity of the Trustee as shown
by its records until such time as it shall receive at its home office
satisfactory notification of a change in the Trustee’s identity.

     (b) A Contract Issuer shall deal with the Trustee as the sole and absolute
owner of all Contracts and shall not be obligated to ascertain whether the
Trustee is adhering to the terms of this Plan or the directions of the
Committee.

120

 

     (c) A Contract Issuer may rely upon receipts and releases given by the
Trustee and shall be fully discharged from liability for any action taken or
payment made in accordance with the Trustee’s directions or with the terms of
the Insurance Contract; nor shall a Contract Issuer be obligated to see to the
application of any amount so paid.

     (d) The provisions of Section 12.5 (Execution of Instruments) apply, in
part, for the protection of Contract Issuers. Any signature affixed to an
application or other writing as therein provided shall be conclusive proof to
the Contract Issuer that the individual in respect of whom an application for
an Insurance Contract is being made is eligible to have such Insurance Contract
issued in respect of him as to the form, benefits and amount requested in such
application.

121

 

ARTICLE XIV

TRANSFERRED ASSETS

14.1 Right to Transfer. The Plan Administrator may, in its Discretion, direct
the Trustee to accept Transferred Assets on behalf of a Participant; provided,
however, that the Transferred Assets shall be credited to the account
established for the Participant to receive the Transferred Assets (his
“Transferred Assets Account”).

14.2 Accounting for Transferred Assets. Transferred Assets shall be credited
to the Participant’s Transferred Assets Account within thirty (30) days after
the date they are paid to and accepted by the Trustee and shall be adjusted for

distributions, loans, expenses, profits and losses in the manner described in
Section 4.4 (Periodic Adjustments to Accounts) as if such transferred portion
of the Account in question were, in fact, a separate account.

14.3 Nonforfeitability of Transferred Assets. Transferred Assets shall at all
times be Nonforfeitable.

14.4 Distribution of Transferred Assets. Any balance in a Participant’s
Transferred Assets Account shall be distributed to the Participant (or his
Beneficiary) at the same time and in the same manner as other benefits payable
to him under the Plan.

122

 

ARTICLE XV

EMPLOYEE CONTRIBUTIONS

15.1 Right to Contribute. No Participant shall have the right to make
Employee Contributions to this Plan. Employee Contributions previously were
permitted under the Steelcase Inc. Group Retirement Plan before September 1,
2000, and are transferred to this Plan in connection with the merger of the
Steelcase Inc. Group Retirement Plan with this Plan. Those Employee
Contributions shall be subject to the provisions of this Article XV.

15.2 Accounting. Employee Contributions and earnings transferred from the
Steelcase Inc. Group Retirement Plan shall be held in the Employee Contribution
Accounts of the affected Participants. Solely for purposes of adjustments to a
Participant’s Employee Contribution Account pursuant to Section 4.4 (Periodic
Adjustments to Accounts), all withdrawals during a Plan Year pursuant to
Section 15.4 (Withdrawals While Employed) shall be deemed withdrawn as of the
next preceding Valuation Date; provided, however, that any other reasonable
methodology may be used by the Trustee for accounting for Employee
Contributions for purposes of Employee Contribution Account adjustments, so
long as such methodology is used consistently and in a nondiscriminatory
fashion.

15.3 Nonforfeitability. Employee Contributions shall be Nonforfeitable. Any
balance in a Participant’s Employee Contribution Account resulting from his own
contributions not previously withdrawn shall be paid to him following his
retirement or other termination of employment, or to his Beneficiary in the
event of his death, in the same manner as other benefits payable to him upon
such events.

15.4 Withdrawals While Employed. A Participant may withdraw his Employee
Contributions at any time upon written request to the Committee; provided that
no withdrawal may be made within six (6) months of a prior withdrawal and no
more than two (2) withdrawals are permitted during a Plan Year.

123

 

ARTICLE XVI

EXECUTION

     IN WITNESS WHEREOF, Steelcase Inc. has caused this Plan, captioned
“Steelcase Inc. Retirement Plan,” as amended and restated effective as of
February 28, 2003, to be executed by its duly authorized officer
this 22nd day of January, 2003.

	 	 	 	 	 	 	 
	 	 	STEELCASE INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	 	 	/s/ Nancy W. Hickey
	 
	 	 	 	 	 	

	 
	 	 	 	 	 	 
	

	 	 	 	Its:
	 	Sr. Vice President, Global
Strategic Resources &
Chief Administrative Officer
	 
	 	 	 	 	 	

124

 

SCHEDULE A

PARTICIPATING AFFILIATES, DIVISIONS AND LOCATIONS

OTHER PARTICIPATING AFFILIATES , DIVISIONS AND LOCATIONS

Each of the divisions, locations and entities listed in this Schedule A began
participating in the Plan prior to the Effective Date, unless otherwise
specified, and is eligible to make both Discretionary and Elective Deferral
Contributions. Non-Discretionary and Matching Contributions may be made only
if so noted.

	 	 	 	 	 
	 	 	Eligible For
	 	 	Non-discretionary
	Affiliate/Division/Location Name
	 	Contributions?

	Athens, Alabama, a division of Steelcase Inc.
	 	Yes
	Attwood Corporation (except employees of Attwood Canvas

(Eastpoint), a division of Attwood Corporation)
	 	Yes
	Attwood Canvas (Eastpoint), a division of Attwood Corporation
	 	No
	City of Industry, California, a division of Steelcase Inc.
	 	Yes
	Grand Rapids, Michigan, a division of Steelcase Inc.
	 	Yes
	Hedberg Data Systems, Inc.
	 	No
	Office Details Inc.
	 	Yes
	SC Development Inc.
	 	Yes
	SC Transport Inc.
	 	No
	Steelcase Design Partnership Inc.
	 	No
	Steelcase Financial Services Inc.
	 	Yes
	Wood Division of Steelcase Inc.
	 	 	 	 
	Fletcher, North Carolina
	 	Yes
	Grand Rapids, Michigan
	 	Yes
	New Paris, Indiana
	 	 	 	 
	(f/k/a Stow Davis Furniture, a division of Steelcase Inc.)
	 	No

125

 

SCHEDULE A

PARTICIPATING AFFILIATES, DIVISIONS AND LOCATIONS

(CONTINUED)

ANDERSON DESK INC.

Non-discretionary Contributions – Not eligible.

Matching Contributions:

	•	 	Contribution Formula: Discretionary each Plan Year, expressed as a
specific percentage of Elective Deferrals contributed each pay period
(not including Excess Deferrals or Excess Contributions) or a specific
dollar amount.
	 
	•	 	Eligible Participant: Employees identified as eligible by the
company for the Plan Year.

126

 

SCHEDULE A

PARTICIPATING AFFILIATES, DIVISIONS AND LOCATIONS

(CONTINUED)

BRAYTON INTERNATIONAL INC.

Non-discretionary Contributions – Not eligible.

Matching Contributions:

	•	 	Contribution Formula: Discretionary each Plan Year, expressed as a
specific percentage of Elective Deferrals (not including Excess
Deferrals or Excess Contributions) or a specific dollar amount.
	 
	•	 	Eligible Participant: Employees identified as eligible by the
company for the Plan Year.

127

 

SCHEDULE A

PARTICIPATING AFFILIATES, DIVISIONS AND LOCATIONS

(CONTINUED)

THE DESIGNTEX GROUP, AN AFFILIATE OF STEELCASE INC.

Discretionary Contributions are subject to the maximum contribution limit
described below:

	•	 	Allocation Formula: Contributions will be allocated as
described in the Plan, subject to a maximum contribution of Two
Thousand Dollars ($2,000) each Plan Year per Participant.

Non-discretionary Contributions – Not eligible.

Matching Contributions:

	•	 	Contribution Formula: Twenty-five percent (25%) of Elective
Deferrals, subject to a maximum contribution of Two Thousand Dollars
($2,000) per Participant each Plan Year.
	 
	•	 	Eligible Participant: Salaried, non-union Participants
employed by The Designtex Group.

128

 

SCHEDULE A

PARTICIPATING AFFILIATES, DIVISIONS AND LOCATIONS

(CONTINUED)

VECTA CONTRACT, A DIVISION OF STEELCASE INC.

Non-Discretionary Contributions – Not eligible.

Matching Contributions:

	•	 	Contribution Formula: One hundred percent (100%) of Elective
Deferrals up to three percent (3%) of Creditable Compensation each
payroll period, plus fifty percent (50%) of Elective Deferrals
between three percent (3%) and five percent (5%) of Creditable
Compensation each payroll period.
	 
	•	 	Eligible Participant: Participants employed by Vecta
Contract.

129exv4w2

 

EXHIBIT 4.2

2004-1 AMENDMENT

TO

STEELCASE INC.

RETIREMENT PLAN

     This is an amendment by Steelcase Inc. (“Employer”).

W I T N E S S E T H

     WHEREAS, Steelcase Inc. (the “Company”) has adopted and maintains the
Steelcase Inc. Retirement Plan, as amended and restated effective as of
February 28, 2003 (the “Plan”); and

     WHEREAS, pursuant to Section 11.4 of the Plan, the Company has reserved
the right to amend the Plan at any time; and

     WHEREAS, the Company is desirous of amending the Plan to more accurately
reflect: (1) administrative practices regarding service counting for
participants who have been laid off with seniority; (2) the treatment of
forfeitures; and (3) the maximum amounts available for in-service withdrawals
at age 59-1/2 or for hardship.

     NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES, the Plan is hereby
amended in the following respects:

     1. A new paragraph (vi) is hereby added to Section 1.1(ddd) of the Plan
(“Hour of Service”), effective as of March 1, 2003, to read as follows:

	 	“(vi)	 	A Participant who has
‘Seniority’ as defined in the Company policies, and
is laid off and later rehired before his Seniority
is offset (which shall occur when his lay off
period exceeds his Seniority period, to a maximum
of three (3) years) shall be credited with Hours of
Service during his lay-off period equal to
forty-five (45) Hours of Service for each week of
layoff. A Participant who has Seniority and is
laid off and later rehired after his Seniority is
offset shall not receive any Hours of Service for
any portion of his lay-off period. If a week for
which the Employee is entitled to credit for Hours
of Service under this subparagraph (vi) extends
into more than one (1) employment year, the
forty-five (45) Hours of Service shall be allocated
between the employment years on a pro rata basis.”

     2. The following language is added to the end of Section 1.3 (Governing
Law and Rules of Construction) of the Plan, effective October 1, 2003:

“The Participant is considered to be employed by the entity,
division or location to which he is assigned by the Company,
regardless of the entity, division or location for whom the
Participant may perform services.”

 

     3. Section 4.6(a) of the Plan (“Adjustments to Distributable Amount”) is
hereby amended, effective as of March 1, 2003, to read as follows:

   “(a) Adjustments to Distributable Amount. His Account shall
become fixed at its Nonforfeitable balance as of the Valuation Date
coincident with or next succeeding the date on which his employment
with the Employer Group ceases and the Nonforfeitable portion of his
Account so fixed shall be his Distributable Account. Thereafter no
further credits or debits shall be made to said Account, except for
matters mentioned in Sections 4.4 (Periodic Adjustments to
Accounts), 4.5(b) (Expenses), and 4.6(b) (Investment), 4.7
(Forfeitures) and adjustments in respect of Insurance Contracts
under Article XIII (Insurance Provisions).”

     “4. Section 4.7 of the Plan (“Forfeitures”) is hereby amended, effective as
of March 1, 2003, to read as follows:

4.7 Forfeitures. All funds forfeitable pursuant to Section 5.2(d)
(Treatment of Nonvested Amounts) shall be forfeited as soon as
administratively feasible following the Valuation Date coincident
with or next succeeding the date on which a Participant’s employment
with the Employer Group ceases. If the Participant is reemployed by
a member of the Employer Group prior to incurring five (5)
consecutive Breaks in Service, then the following rules shall apply:

   (a) No Distribution. If such Participant has not received a
distribution from his Distributable Account by reason of his prior
termination of employment, the funds forfeited from his account by
reason of his prior termination of employment, as adjusted for
earnings and losses pursuant to Section 9.6(b) as if it had remained
a part of his Account, shall be restored to his Account.

   (b) Prior Distribution. If the Participant has received a
distribution of all or a portion of his Distributable Account by
reason of his prior termination of employment and he repays the
entire amount distributed to him from the Plan before five (5) years
have elapsed after the date of his reemployment, the funds forfeited
from his account by reason of his prior termination of employment,
as adjusted through the date of the distribution for earnings and
losses pursuant to Section 9.6(b) as if it had remained a part of
his Account, shall be restored to his Account.”

     5. Section 4.8 of the Plan (“Reinstatement of Account”) is hereby amended,
effective as of March 1, 2003, to read as follows:

“4.8 Reinstatement of Account. Subject to Section 4.7
(Forfeitures), in the case of a former Participant whose Account is
restored pursuant to Section 4.7(a) (No Distribution) or Section
4.7(b) (Prior Distribution), the balance of his Distributable
Account will no longer be subject to the limitations of Sections
4.6(a) (Adjustments to Distributable Accounts) and 4.6(b)
(Investment) and his Account shall be Nonforfeitable to the same
extent as any other portion of his Account. Any amounts required to
be restored to a Participant’s Account pursuant to Section 4.7(a)
(No Distribution) or Section 4.7(b) (Prior Distribution) shall be
obtained either from Fund earnings, forfeitures, or from additional
Company contributions.”

2

 

     6. Section 5.2(a)(iii) of the Plan is hereby amended, effective as of
March 1, 2003, to read as follows:

	 	“(iii)	 	Amounts attributable to the Participant’s
Distributable Account if the Participant’s Account
is not restored pursuant to Section 4.7(b)
(Distribution) on account of the Participant’s
failure to repay the entire amount of a prior
distribution.”

     7. Section 5.3(c) of the Plan is hereby amended, effective as of March 1,
2003, to read as follows:

   “(c) Attainment of Age 59-1/2. A Participant who reaches an
Attained Age of fifty-nine and one-half (59-1/2) shall be entitled
to elect to withdraw a single sum distribution of all or part of his
Elective Deferral Account and Matching Contribution Account, valued
as of the Valuation Date immediately preceding the date of the
election, less the portion of any outstanding loan receivable
allocated to the Elective Deferral Account and Matching Contribution
Account pursuant to Section 5.4(b)(iii) (Source).”

     8. Section 5.3(d)(i) of the Plan is hereby amended, effective as of March
1, 2003, to read as follows:

	 	“(i)	 	Amount. The amount available for
distribution to a Participant as a Hardship
Distribution under this Section 5.3(d) shall be
limited to the amount of the Participant’s Elective
Deferrals, plus earnings on Elective Deferrals
credited prior to January 1, 1989, less the portion
of any outstanding loan receivable allocated to the
Elective Deferral Account pursuant to Section
5.4(b)(iii) (Source).”

     IN WITNESS WHEREOF, the Company has caused this 2004-1 Amendment to the
Steelcase Inc. Retirement Plan (as Amended and Restated Effective as of
February 28, 2003) to be executed by its duly authorized representative this
10th day of October 2003.

	 	 	 	 	 
	 	STEELCASE INC.

 	 
	 	By:  	/s/ Nancy W. Hickey
 	 
	 	 	Its:  	Sr. Vice President, Global
Strategic Resources & Chief Administrative Officer 	 
	 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]