Document:

Prepared by MERRILL CORPORATION

Ex 10.1 (al)

THIRD AMENDMENT

To

The Sauer-Sundstrand

LaSalle Factory Employee Savings Plan

(AS AMENDED AND RESTATED,

EFFECTIVE JANUARY 1, 1998)

 

                By virtue and in exercise of the amending

power reserved to Sauer-Danfoss, Inc. (the "Company") by Section 14.1

of the Sauer-Sundstrand LaSalle Factory Employee Savings Plan, Amended and

Restated as of January 1, 1998 (the "Plan"), and pursuant to the

authority delegated to the undersigned officer of the Company by resolution of

its Board of Directors, the Plan is hereby amended, as of the dates indicated

below, as follows:

 

                1.             Effective

January 1, 1998, by substituting the following for Section 1.6 of the Plan:

 

"1.6    Break in Service.  A 'Break in Service' means each

12-consecutive month period beginning on a Participant's Settlement Date and

ending on each anniversary of such date, provided that the Participant does not

perform an Hour of Service during such period. 

Solely for purposes of determining whether a Break in Service has

occurred, in the case of a Participant who is absent from employment with the

Employer beyond the first anniversary of the first date of an absence and the

absence is for leave for maternity or paternity reasons, the Participant's

Settlement Date shall be the second anniversary of the Participant's absence

from employment with the Employer.  The

period between the first and second anniversaries will not constitute

Service.  For purposes of this Section

1.6, an absence from employment with an Employer 'for maternity or paternity

reasons' means an absence (1) by reason of pregnancy of the Employee, (2) by

reason of the birth of a child of the Employee, (3) by reason of the placement

of a child with the Employee in connection with the adoption of such child by

such Employee, or (4) for purposes of caring for such child for a period

beginning immediately following such birth or placement."

 

                2.             Effective

January 1, 2001, all references in the Plan to Sauer-Sundstrand Company are

changed to Sauer-Danfoss (US) Company and Section 1.9 is amended specifically

to read in its entirety as follows:

 

                "1.9         The

"Company" shall mean Sauer-Danfoss (US) Company (formerly

known as Sauer-Danfoss, Inc. and Sauer-Sundstrand Company), a Delaware

corporation, or any successor thereto."

                3.             Effective January 1, 1998, by

deleting the phrase "per year" from the first and last sentences of

Section 1.13 and replacing them with "in an Employment Year[.]"

 

                4.             Effective

January 1, 2001, the name of the Plan is changed to Sauer-Danfoss LaSalle

Factory Employee Savings Plan and all references in the Plan to the name of the

Plan are changed accordingly. 

Furthermore, Section 1.28 is amended specifically to read in its

entirety as follows:

 

                "1.28   

The "Plan" shall mean this Sauer-Danfoss LaSalle

Factory Employee Savings Plan (formerly known as the Sauer-Sundstrand LaSalle

Factory Employee Savings Plan), as amended from time-to-time.  For purposes of Code Section 401(a)(27)(B),

the Plan is a profit sharing plan."

 

5.             Effective January 1, 1998, by

substituting the following for Section 1.19:

 

"1.19       'Highly Compensated Employee'

shall mean:

 

(a)           For Plan Years beginning before

January 1, 1997, a Highly Compensated Employee as determined under the

provisions of Section 414(q) of the Code as then in effect.

 

(b)           For Plan Years beginning on and after

January 1, 1997, a Highly Compensated Employee shall mean any Employee:

 

(i)    who is a 5-percent owner

(within the meaning of Section 416(i)(1)(A)(iii) of the Code) at any time

during the Determination Year of Look-Back Year; and

 

(ii)   received compensation

during the Look-Back Year in excess of $80,000 (or as may be adjusted by the

Secretary of the Treasury for the Look-Back Year), and was in the Top-Paid

Group of Employees for the Look-Back Year.

 

For purposes of this definition, (a) the

'Determination Year' is the Plan Year in which the determination of Highly

Compensated Employees is being made; (b) the 'Look-Back Year' is the

immediately preceding Plan Year; (c) the 'Top-Paid Group' is the top 20% of

Employees of the Employer when ranked on the basis of compensation received

during the year, but excluding Employees who have not completed 6 months of

service, employees who work fewer than 17 1⁄2 hours per week, employees who

normally work during not more than 6 months in any year, and Employees who have

not attained age 21; and (d) 'compensation' is compensation within the meaning

of Section 1.8 of the Plan.

 

Notwithstanding

the foregoing, the determination of which Employees are Highly Compensated

Employees shall at all times be subject to the rules of Section 414(q) of the

Code.  Former Employees who were Highly

Compensated Employees during the year in which such Employee separated from

service or any year after such Employee attained age 55 shall also be included

in the determination of a Highly Compensated Employee."

 

6.             Effective January 1, 1998, by

substituting the following for Section 1.25:

 

                "1.25   

'Normal Retirement Date' shall mean, for all purposes of the Plan

other than vesting under Section 12.2, the last day of the month in which the

Participant attains age 65, and for purposes of vesting under Section 12.2,

shall mean the actual date on which the Participant attains age 65."

 

 

                7.             Effective

January 1, 1998, by deleting the phrase "per year" from subsection

2.1(b) and replacing it with "in an Employment Year[.]"

 

8.             Effective September 1, 2001, a new

subsection (d) is added to Section 2.1 to read in its entirety as follows:

 

"(d)         An Employee who

makes a "Special Election for Coverage Under Cash Balance Formula"

(the "Special Election") under Section 4.4(b) of the Factory Pension

Plan of Sauer-Danfoss (LaSalle) and International Union, United Automobile,

Aerospace and Agricultural Implement Workers of America, and Its Local Union

No. 285 (the "LaSalle Factory Pension Plan"), thereby waiving his

right to accrue additional benefits under the LaSalle Factory Pension Plan

(other than pursuant to the cash balance formula set forth in Appendix D of

such plan), shall be eligible to participate in the Plan as of the date of such

Special Election."

 

9.             Effective January 1, 1998, by

substituting the following sentence for the first sentence of Section 2.2:

 

"Subject

to the provisions of Sections 3.4 and 3.5, if the active employment of an

Eligible Employee is terminated and such Employee thereafter is reinstated by

an Employer, such Employee shall again be an Eligible Employee on the date of

reinstatement and any prior years of Service upon re-employment shall be taken

into account."

 

10.           Effective January 1, 1998, by

substituting the following for Section 2.3:

 

"2.3         Changes in Employment Status.

 

                (a)           Loss

of Eligible Employee Status.  If an

Eligible Employee ceases to be an Employee, but continues in the employment of

(i) the Employer in some other capacity, or (ii) a Related Employer, he shall

nevertheless continue as an Eligible Employee and as a Participant until his

status as a Participant is otherwise terminated in accordance with the

provisions of the Plan; provided, however, that such Participant shall not be

permitted to make Participant Contributions at any time during which he is

employed in any capacity other than as an Employee.

 

                (b)           Attainment

of Eligible Employee Status. If an Employee employed by the Employer or a

Related Employer does not or did not qualify as an Eligible Employee and later

attains Eligible Employee Status under this Article II, such Employee's prior

Service with the Employer and/or Related Employer shall be fully counted for

purposes of determining such Employee's eligibility and vesting under the Plan."

 

                11.           Effective

September 1, 2001, a new sentence is added to the end of Section 3.1 as

follows:

 

"An Eligible Employee who makes a Special Election under Section

2.1(d) shall become a Participant in Employer and Matching Contributions under

Section 5.1 as of the date he makes such Special Election."

 

                12.           Effective

January 1, 1998, by substituting the following for the second sentence in

Section 6.3:

 

"If the

Annual Additions to a Participant's Accounts for any Limitation Year would

exceed the Maximum Permissible Amount, such Annual Additions shall be reduced

to the extent necessary to comply with the requirements of the regulations

issued under Code Section 415 (the '415 Regulations'). Any such reduction shall

be made in accordance with the applicable regulations issued the 415

Regulations."

 

                13.           Effective

January 1, 1998, by substituting "as adjusted under Code Section

415(d)" for the clause "or, if greater, 25% of the defined benefit

dollar limitation in effect under Section 415(b)(1)(A) of the Code" in

Section 6.3(f)(viii)(A) of the Plan.

 

                14.           Effective

January 1, 1998, by substituting the following for subsection 6.5(d)(i):

 

"(i)  Allocation

to the Participant Contribution Accounts of the Nonhighly Compensated Employee

Group of any 'Qualified Nonelective Contributions' (as defined in the 401(k)

Regulations) made by the Employer, in the Employer's sole discretion; provided,

however, that if the prior year testing method is used in calculating the ADP

Test for the Nonhighly Compensated Employee Group, then the Qualified

Nonelective Contributions shall be contributed to the Plan no later than the

last day of the applicable testing year; or"

 

 

                15.           Effective

January 1, 1998, by substituting the following for Section 6.6(d)(i):

 

"(i)  Allocation

to the Participant Contribution Accounts of the Nonhighly Compensated Employee

Group of any Qualified Nonelective Contributions (as defined in the 401(m)

Regulations) made by the Employer, in the Employer's sole discretion; provided,

however, that if the prior year testing method is used in calculating the ACP

Test for the Nonhighly Compensated Employee Group, then the Qualified

Nonelective Contributions shall be contributed to the Plan no later than the

last day of the applicable testing year; or"

 

                16.           Effective

January 1, 1998, by substituting "Participant" for

"Matching" in the second sentence of subsection 6.6(e).

 

                17.           Effective

January 1, 1998, by adding the following to the end of Section 6.7:

 

"Provided,

however, that if the prior year testing method is used in calculating the ACP

tests for the Nonhighly Compensated Employee Group, then the Qualified

Nonelective Contributions shall be contributed to the Plan no later than the

last day of the applicable testing year."

 

                18.           Effective

January 1, 1998, by substituting the following for Section 12.10 of the Plan:

 

                "12.10. Distribution After Age 55.

A Participant who does not immediately receive the vested portion of his

Accounts following his Settlement Date, may, upon attaining age 55, elect to

receive all or a portion of his vested Accounts under any of the forms of

distribution specified in subsection 12.4(a). The number of such elections

shall not be limited; provided, however, that any such election:

 

(a)           shall be made in

accordance with Section 12.6;

 

(b)           shall result in

either a minimum lump sum of $500 or an installment distribution of the

Participant's entire vested Account balance; and

 

(c)           shall not apply to

any portion of the Participant's Accounts held in the Transamerica Life

Insurance Fund."

 

19.           Effective January 1,

1998, by substituting the following for subsection 12A.2(a):

 

"(a)         An

'eligible rollover distribution' is any distribution of all or any portion of

the balance to the credit of the distributee, except that an eligible rollover

distribution does not include: any distribution that is one of a series of

substantially equal

periodic payments (not less frequently than annually) made for the

life (or life expectancy) of the distributee or the joint lives (or joint life

expectancies) of the distributee and the distributee's designated beneficiary,

or for a specified period of ten years or more; any distribution to the extent

such distribution is required under Section 401(a)(9) of the Code; any hardship

distribution described in Section 401(k)(2)(B)(i)(IV) of the Code; and 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)."

 

 

	

  IN WITNESS WHEREOF, the above amendment is

  adopted this 6th day of June, 2001.

  
	

   

  
	

   

  	

  SAUER-DANFOSS (US) Company

  
	

   

  
	

   

  
	

   

  	

  By:

  	

  /s/ Kenneth

  D. McCuskey

  	

   

  
	

   

  	

  Its:

  	

  Vice

  President - FinancePrepared by MERRILL CORPORATION

Exhibit 10.1 (am)

 

 

SAUER–DANFOSS RACINE EMPLOYEES' SAVINGS

PLAN

 

 

ADOPTION

AGREEMENT  # 005

NONSTANDARDIZED

CODE §401(k) PROFIT SHARING PLAN

 

                The undersigned, Sauer-Danfoss

("Employer") by executing this Adoption Agreement, elects to become a

participating Employer in the INVESCO Trust Company Defined Contribution

Master Plan (basic plan document # 01 ) by adopting the accompanying

Plan and Trust in full as if the Employer were a signatory to that

Agreement.  The Employer makes the

following elections granted under the provisions of the Master Plan.

 

ARTICLE

I

DEFINITIONS

 

                1.02         TRUSTEE. The Trustee executing

this Adoption Agreement is: (Choose (a) or

(b))

 

o            (a)           A

discretionary Trustee.  See Section

10.03 [A] of the Plan.

 

ý            (b)           A

nondiscretionary Trustee. See Section 10.03 [B] of the Plan.  [Note: The

Employer may not elect Option (b) if a Custodian executes the Adoption

Agreement.]

 

                1.03 PLAN.

The name of the Plan as adopted by the Employer is Sauer-Danfoss Racine

Employees' Savings Plan.

 

                1.07 EMPLOYEE.

The following Employees are not eligible to participate in the Plan. (Choose (a)

or at least one of (b) through (g))

 

o            (a)          No

exclusions.

 

o            (b)           Collective

bargaining employees (as defined in Section 1.07 of the Plan). [Note: If the Employer excludes union employees from the Plan, the Employer must be able to

provide evidence that retirement benefits were the subject of good faith

bargaining.]

 

o            (c)          Nonresident

aliens who do not receive any earned income (as defined in Code §911(d)(2))

from the Employer which constitutes United States source income (as defined in

Code §861(a)(3)).

 

o            (d)          Commission

Salesmen.

 

ý            (e)           Any Employee

compensated on a salaried basis.

 

o            (f)           Any

Employee compensated on an hourly basis.

 

o            (g)          (Specify)

___.

 

Leased Employees. Any

Leased Employee treated as an Employee under Section 1.31 of the Plan, is: (Choose (h)

or (i))

 

o            (h)          Not

eligible to participate in the Plan.

 

ý            (i)            Eligible

to participate in the Plan, unless excluded by reason of an exclusion

classification elected under this Adoption Agreement Section 1.07.

 

 

Related Employers.

If any member of the Employer's related group (as defined in Section 1.30 of

the Plan) executes a Participation Agreement to this Adoption Agreement, such member's Employees are

eligible to participate in this Plan,

unless excluded by reason of an exclusion classification elected under this

Adoption Agreement Section 1.07.  In

addition:  (Choose (j) or (k))

 

ý            (j)            No other related group

member's Employees are eligible to participate in the Plan.

 

o            (k)           The following

nonparticipating related group member's Employees are eligible to participate

in the Plan unless excluded by reason of an exclusion classification elected

under this Adoption Agreement Section 1.07:___.

 

                1.12         COMPENSATION.

 

Treatment of elective contributions.

(Choose

(a) or (b))

 

ý            (a)           "Compensation" includes elective contributions

made by the Employer on the Employee's behalf.

 

o            (b)           ''Compensation'' does not include

elective contributions.

 

Modifications

to Compensation definition. (Choose (c) or at least one of (d) through (j))

 

o            (c)          No

modifications other than as elected under Options (a) or (b).

 

o            (d)          The

Plan excludes Compensation in excess of $___.

 

ý            (e)           In lieu of the definition in Section

1.12 of the Plan, Compensation means any earnings reportable as W–2 wages

for Federal income tax withholding purposes, subject to any other election

under this Adoption Agreement Section 1.12.

 

o            (f)           The

Plan excludes bonuses.

 

o            (g)          The

Plan excludes overtime.

 

o            (h)          The

Plan excludes Commissions.

 

o            (i)            Compensation

will not include Compensation from a related employer (as  defined in Section

1.30 of the Plan) that has not executed a Participation Agreement in this Plan  unless, pursuant to Adoption

Agreement Section 1.07, the Employees of that related employer are eligible to

participate in this Plan.

 

ý            (j)            (Specify)  Exclude severance pay; allowances for auto, office

and relocation expenses; taxable portion of fringe benefits such as Country

Club expenses, life insurance, clothing and safety glasses, and disability and

sick pay, and tuition reimbursement.

 

If, for any Plan Year, the Plan uses permitted disparity in the

contribution or allocation formula elected under Article III, any election of

Options (f), (g), (h) or (j) is ineffective for such Plan Year with respect to

any Nonhighly Compensated Employee.

 

Special definition

for matching contributions. "Compensation"

for purposes of any matching contribution formula under Article III means:  (Choose (k) or (l) only if

applicable)

 

ý            (k)           Compensation

as defined in this Adoption Agreement Section 1.12.

 

o            (l)            (Specify) ________.

 

 

Special

definition for salary reduction contributions.  An Employee's salary reduction

agreement applies to his Compensation determined prior to the reduction

authorized by that salary reduction agreement, with the following exceptions: (Choose (m) or at least one of (n) or (o), if

applicable)

 

ý            (m)          No

exceptions.

 

o            (n)           If

the Employee makes elective contributions to another plan maintained by the

Employer, the Advisory Committee will determine the amount of the Employee's

salary reduction contribution for the withholding period: (Choose (1) or (2))

 

                o            (1)       After

the reduction for such period of elective contributions to the other plan(s).

 

                o            (2)       Prior

to the reduction for such period of elective contributions to the other

plan(s).

 

o            (o)           (Specify) ___.

 

                1.17        PLAN

YEAR/LIMITATION YEAR.

 

Plan Year.  Plan Year means: (Choose (a) or (b))

 

ý            (a)           The 12

consecutive month period ending every December 31.

 

o            (b)           (Specify) 

___.

 

Limitation Year. The

Limitation Year is: (Choose (c) or (d))

 

ý            (c)           The

Plan Year.

 

o            (d)          The

12 consecutive month period ending every ___.

 

                1.18        EFFECTIVE DATE.

 

New

Plan. The "Effective Date" of the Plan is December

1, 2000.

 

Restated Plan. The

restated Effective Date is ___. 

This Plan is a substitution and amendment of an existing retirement

plan(s) originally established ___. [Note:  See the Effective Date Addendum.]

 

                1.27        HOUR OF SERVICE. The crediting method for Hours of Service

is: (Choose (a) or (b))

 

ý            (a)           The

actual method.

 

o            (b)          The

___ equivalency method, except:

 

                o           (1)     No

exceptions.

 

                o           (2)     The

actual method applies for purposes of: (Choose at least one)

 

                                o            (a)           Participation under Article II.

 

                                o            (b)           Vesting under Article V.

 

                                o            (c)           Accrual

of benefits under Section 3.06.

 

[Note: On the blank line, insert

"daily," "weekly," "semi-monthly payroll periods"

or "monthly"]

 

                1.29         SERVICE FOR PREDECESSOR EMPLOYER.

In addition to the predecessor service the Plan must credit by reason of

Section 1.29 of the Plan, the Plan credits Service with the following

predecessor employer(s): ___.  Service

with the designated predecessor employer(s) applies: (Choose at least one of (a) or (b); (c)

is available only in addition to (a) or (b))

 

o            (a)          For

purposes of participation under Article II.

 

o            (b)          For

purposes of vesting under Article V.

 

o            (c)           Except

the following Service:___.

 

[Note: If the Plan does not credit any

predecessor service under this provision, insert "N/A " in the first

blank line. The

Employer may attach a schedule to this Adoption Agreement, in the same

format as this Section 1.29, designating

additional predecessor employers and the applicable service crediting

elections.]

 

                1.31         LEASED EMPLOYEES. If a Leased

Employee is a Participant in the Plan and also participates in a plan

maintained by the leasing organization: (Choose (a) or (b))

 

ý            (a)           The Advisory Committee will determine

the Leased Employee's allocation of Employer contributions under Article III

without taking into account the Leased Employee's

allocation, if any, under the leasing organization's plan.

 

o            (b)           The

Advisory Committee will reduce the Leased Employee's allocation of Employer

nonelective contributions (other than designated qualified nonelective contributions)

under this Plan by the Leased Employee's allocation under the leasing

organization's plan, but only to the extent that allocation is attributable to

the Leased Employee's service provided to the Employer. The leasing

organization's plan:

 

                o            (1)           Must

be a money purchase plan which would

satisfy the definition under Section 1.31 of a safe harbor plan,

irrespective of whether the safe harbor exception applies.

 

                o            (2)           Must

satisfy the features and, if a defined benefit plan, the method of reduction

described in an addendum to this Adoption Agreement, numbered 1.31.

 

 

ARTICLE II

EMPLOYEE PARTICIPANTS

 

                2.01         ELIGIBILITY.

 

Eligibility conditions.

To become a Participant in the Plan, an Employee must satisfy the following

eligibility conditions: (Choose (a) or (b)

or both; (c) is optional as an additional election)

 

ý            (a)           Attainment

of age 18 (specify age, not exceeding

21).

 

ý            (b)           Service

requirement. (Choose one of (1) through (3))

 

                o            (1)           One

Year of Service.

 

                ý            (2)           1

months (not exceeding 12) following the Employee's Employment Commencement

Date.

 

                o            (3)           One

Hour of Service.

 

ý            (c)           Special

requirements for non-401(k) portion of plan. (Make

elections under (1) and under (2))

 

                (1)           The requirements of this Option (c)

apply to participation in: (Choose at least

one of (a) through (c))

 

                ý            (a)           The

allocation of Employer nonelective contributions and Participant forfeitures.

 

                ý            (b)           The

allocation of Employer matching contributions (including forfeitures allocated

as matching        contributions).

 

                ý            (c)           The

allocation of Employer qualified nonelective contributions.

 

                (2)           For participation in

the allocations described in (1), the eligibility conditions are:  (Choose

at least one of (a)                 through

(d))

 

                o            (a)           ___

(one or two) Year(s) of Service, without an intervening Break in Service (as

described in Section 2.03 (A) of the Plan) if the requirement is two Years of

Service.

 

                ý            (b)           6

months (not exceeding 24) following the Employee's Employment Commencement

Date.

 

                o            (c)           One

Hour of Service.

 

                ý            (d)           Attainment

of age 18 (Specify age, not exceeding

21).

 

Plan Entry Date.  "Plan Entry Date" means the

Effective Date and:  (Choose (d), (e) or (f))

 

o            (d)           Semi-annual

Entry Dates.  The first day of the Plan

Year and the first day of the seventh month 

of the Plan Year.

 

o            (e)           The

first day of the Plan Year.

 

ý            (f)            (Specify entry dates) the first day of

the month.

 

Time of Participation.

An Employee will become a Participant (and, if applicable, will participate in

the allocations described in Option (c)(1)), unless excluded under Adoption

Agreement Section 1.07, on the Plan Entry Date (if employed on that date):  (Choose

(g), (h) or (i))

 

ý            (g)           immediately

following

 

o            (h)           immediately

preceding

 

o            (i)            nearest

 

the date the Employee completes the eligibility conditions described in

Options (a) and (b) (or in Option (c)(2) if applicable) of this Adoption

Agreement Section 2.01.  [Note:  The

Employer must coordinate the selection of (g), (h) or (i) with the "Plan

Entry Date" selection in (d), (e) or (f). 

Unless otherwise excluded under Section 1.07, the Employee must  become a Participant by the earlier of: (1)

the first day of the Plan Year beginning after the date the Employee completes

the age and service requirements of Code §410(a); or (2) 6 months after the

date the Employee completes those requirements.]

 

Dual eligibility.  The eligibility conditions of this Section

2.01 apply to: (Choose (j) or (k))

 

ý            (j)            All Employees of the Employer,

except:  (Choose (1) or (2))

 

                ý            (1)           No

exceptions.

 

                o            (2)           Employees

who are Participants in the Plan as of the Effective Date.

 

o            (k)           Solely

to an Employee employed by the Employer after ___.  If the Employee was employed by the Employer on or before the

specified date, the Employee will become a Participant: (Choose (1), (2) or (3))

 

                o            (1)           On

the latest of the Effective Date, his Employment Commencement Date or the date

he attains age ___ (not to exceed 21).

 

                o            (2)           Under

the eligibility conditions in effect under the Plan prior to the restated

Effective Date.  If the restated Plan

required more than one Year of Service to participate, the eligibility

condition under this Option (2) for participation in the Code §401(k)

arrangement under this Plan is one Year of Service for Plan Years beginning

after December 31, 1988.  [For restated plans only]

 

                o            (3)           (Specify) ___.

 

                2.02  YEAR

OF SERVICE - PARTICIPATION.

 

Hours

of Service.  An

Employee must complete:  (Choose (a) or (b))

 

o            (a)           1,000 Hours of Service

 

ý            (b)           n/a Hours of Service

 

during an eligibility

computation period to receive credit for a Year of Service. [Note: The Hours of Service requirement may not exceed

1,000.]

 

Eligibility

computation period. 

After the initial eligibility computation period described in Section

2.02 of the Plan, the Plan measures the eligibility computation period as:  (Choose

(c) or (d))

 

o            (c)           The

12 consecutive month period beginning with each anniversary of an Employee's

Employment Commencement Date.

 

ý            (d)           The

Plan Year, beginning with the Plan Year which includes the first anniversary of

the Employee's Employment Commencement Date.

 

 

                2.03         BREAK IN SERVICE - PARTICIPATION.  The Break in Service rule described in

Section 2.03 (B) of  the Plan:  (Choose

(a) or (b))

 

ý            (a)           Does

not apply to the Employer's Plan.

 

o            (b)           Applies

to the Employer's Plan.

 

                2.06         ELECTION NOT TO PARTICIPATE.  The Plan: 

(Choose (a) or (b))

 

ý            (a)           Does

not permit an eligible Employee or a Participant to elect not to participate.

 

o            (b)           Does

permit an eligible Employee or a Participant to elect not to participate in

accordance with Section 2.06 and with the following rules:  (Complete

(1), (2), (3) and (4))

 

                (1)           An election is effective for a Plan

Year if filed no later than ___.

 

                (2)           An election not to participate must

be effective for at least ___ Plan Year(s).

 

                (3)           Following a re-election to

participate, the Employee or Participant:

 

                o            (a)           May

not again elect not to participate, for any subsequent Plan Year.

 

                o            (b)           May

again elect not to participate, but not earlier than the ___ Plan Year

following the Plan Year in which the re-election first was effective.

 

                (4)           (Specify)

___ [Insert "N/A" if no other

rules apply].

 

 

ARTICLE III

EMPLOYER CONTRIBUTIONS AND FORFEITURES

 

                3.01 AMOUNT.

 

Part I. [Options (a ) through (g)] Amount of

Employer's contribution.  The Employer's annual contribution to the Trust will equal the

total amount of deferral contributions, matching contributions, qualified

nonelective contributions and nonelective contributions, as determined under

this Section 3.01. (Choose any combination

of  (a), (b), (c) and (d), or choose

(e))

 

ý            (a)           Deferral contributions (Code §401(k) arrangement).  (Choose

(1) or (2) or both)

 

                ý            (1)           Salary

reduction arrangement.  The Employer

must contribute the amount by which the Participants have reduced their

Compensation for the Plan Year, pursuant to their salary reduction agreements

on file with the Advisory Committee.  A

reference in the Plan to salary reduction contributions is a reference to these

amounts.

 

                o            (2)           Cash

or deferred arrangement.  The Employer

will contribute on behalf of each Participant the portion of the Participant's

proportionate share of the cash or deferred contribution which he has not

elected to receive in cash.  See Section

14.02 of the Plan.  The Employer's cash

or deferred contribution is the amount the Employer may from time to time deem

advisable which the Employer designates as a cash or deferred contribution

prior to making that contribution to the Trust.

 

ý            (b)           Matching contributions.  The Employer will make matching

contributions in accordance with the formula(s) elected in Part II of this

Adoption Agreement Section 3.01.

 

ý            (c)           Designated qualified nonelective contributions.  The Employer, in its sole discretion, may

contribute an amount which it designates as a qualified nonelective contribution.

ý            (d)           Nonelective

contributions.  (Choose any combination of (1) through (4))

 

                ý            (1)           Discretionary

contribution.  The amount (or additional

amount) the Employer may from time to time deem advisable.

 

                o            (2)           The

amount (or additional amount) the Employer may from time to time deem

advisable, separately determined for each of the following classifications of

Participants:  (Choose (a) or (b))

 

                                o            (a)           Nonhighly

Compensated Employees and Highly Compensated Employees.

 

                                o            (b)           (Specify classifications)___.

 

                                                Under this Option (2), the Advisory Committee

will allocate the amount contributed for each Participant classification in

accordance with Part II of Adoption Agreement Section 3.04, as if the

Participants in that classification were the only Participants in the Plan.

 

                o            (3)           __%

of the Compensation of all Participants under the Plan, determined for the

Employer's taxable year for which it makes the contribution [Note:  The

percentage selected may not exceed 15%.]

 

                o            (4)           __%

of Net Profits but not more than $___.

 

o            (e)           Frozen Plan.  This Plan is a frozen Plan effective ___.  The Employer will not contribute to the Plan

with respect to any period following the stated date.

 

Net

Profits.  The

Employer (Choose (f) or (g))

 

ý            (f)            Need not have Net Profits to make

its annual contribution under this Plan.

 

o            (g)           Must

have current or accumulated Net Profits exceeding $___ to make the following

contributions: (Choose at least one)

 

                o            (1)           Cash

or deferred contributions described in Option (a)(2).

 

                o            (2)           Matching

contributions described in Option (b), except: 

___.

 

                o            (3)           Qualified

nonelective contributions described in Option (c).

 

                o            (4)           Nonelective

contributions described in Option (d).

 

The term "Net

Profits" means the Employer's net income or profits for any taxable year

determined by the Employer upon the basis of its books of account in accordance

with generally accepted accounting practices consistently applied without any

deductions for Federal and state taxes upon income or for contributions made by

the Employer under this Plan or under any other employee benefit plan the

Employer maintains.  The term "Net

Profits" specifically excludes.  [Note:  Enter

"N/A" if no exclusions apply.]

 

If the Employer requires Net

Profits for matching contributions and the Employer does not have sufficient

Net Profits under Option (g), it will reduce the matching contribution under a

fixed formula on a prorata basis for all Participants.  A Participant's share of the reduced contribution

will bear the same ratio as the matching contribution the Participant would

have received if Net Profits were sufficient bears to the total matching

contribution all Participants would have received if Net Profits were

sufficient.  If more than one member of

a related group (as defined in Section 1.30) execute this Adoption Agreement,

each participating member will determine Net Profits separately but will not

apply this reduction unless, after combining the separately determined Net

Profits, the aggregate Net Profits are insufficient to satisfy the matching

contribution liability.  "Net

Profits" includes both current and accumulated Net Profits.  

Part

II.  [Options (h) through (j)] Matching

contribution formula. 

[Note:  If the Employer elected Option (b), complete Options (h), (i) and

(j).]

 

ý            (h)           Amount of matching contributions.  For each Plan Year, the Employer's matching

contribution is:  (Choose any combination of (1), (2), (3), (4) and

(5))

 

                o            (1)           An

amount equal to __% of each Participant's eligible contributions for the Plan

Year.

 

                o            (2)           An

amount equal to __% of each Participant's first tier of eligible contributions

for the Plan Year, plus the following matching percentage(s) for the following

subsequent tiers of eligible contributions for the Plan Year: ___.

 

                ý            (3)           Discretionary

formula.

 

                                ý            (a)           An

amount (or additional amount) equal to a matching percentage the Employer from

time to time may deem advisable of the Participant's eligible contributions for

the Plan Year.

 

                                o            (b)           An

amount (or additional amount) equal to a matching percentage the Employer from

time to time may deem advisable of each tier of the Participant's eligible

contributions for the Plan Year.

 

                o            (4)           An

amount equal to the following percentage of each Participant's eligible

contributions for the Plan Year, based on the Participant's Years of Service:

 

	

  Number of Years of Service

  	

   

  	

  Matching Percentage

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  

 

                                The Advisory Committee will apply this

formula by determining Years of Service as follows: ___.

 

                o            (5)           A

Participant's matching contributions may not: 

(Choose (a) or (b))

 

                                o            (a)           Exceed

___.

 

                                o            (b)           Be

less than ___.

 

                Related

Employers.  If two or more

related employers (as defined in Section 1.30) contribute to this Plan, the

related employers may elect different matching contribution formulas by

attaching to the Adoption Agreement a separately completed copy of this Part

II.  Note:  Separate matching contribution formulas

create separate current benefit structures that must satisfy the minimum

participation test of Code §401(a)(26).]

 

ý            (i)            Definition of eligible contributions.  Subject to the requirements of Option (j),

the term "eligible contributions" means: (Choose any combination of (1) through (3))

 

                ý            (1)           Salary

reduction contributions.

 

                o            (2)           Cash

or deferred contributions (including any part of the Participant's

proportionate share of the cash or deferred contribution which the Employer

defers with the Participant's election).

 

 

                o            (3)           Participant

mandatory contributions, as designated in Adoption Agreement Section 4.01.  See Section 14.04 of the Plan.

 

ý            (j)            Amount of eligible contributions taken into account.  When determining a Participant's eligible

contributions taken into account under the matching contributions formula(s),

the following rules apply:  (Choose any combination of (1) through (4))

 

                ý            (1)           The

Advisory Committee will take into account all eligible contributions credited

for the Plan Year.

 

                o            (2)           The

Advisory Committee will disregard eligible contributions exceeding ___.

 

                o            (3)           The

Advisory Committee will treat as the first tier of eligible contributions, an

amount not exceeding:  ___.
                The subsequent tiers of

eligible contributions are:  ___.

 

                o            (4)           (Specify) ___.

 

Part III. 

[Options (k) and (l)].  Special

rules for Code §401(k) Arrangement.  (Choose

(k) or (l), or both, as applicable)

 

ý            (k)           Salary Reduction Agreements.  The following rules and restrictions apply

to an Employee's salary reduction agreement: 

(Make a selection under (1), (2), (3)

and (4))

 

                (l)            Limitation on

amount.  The Employee's salary reduction

contributions:  (Choose (a) or at least one of (b) or (c))

 

                o            (a)           No

maximum limitation other than as provided in the Plan.

 

                ý            (b)           May

not exceed 15% of Compensation for the Plan Year, subject to the annual

additions limitation described in Part 2 of Article III and the 402(g)

limitation described in Section 14.07 of the Plan.

 

                o            (c)           Based

on percentages of Compensation must equal at least ___.

 

                (2)           An Employee may

revoke, on a prospective basis, a salary reduction agreement:  (Choose (a),

(b), (c) or (d))

 

                o            (a)           Once

during any Plan Year but not later than ___ of the Plan Year.

 

                o            (b)           As

of any Plan Entry Date.

 

                ý            (c)           As

of the first day of any month.

 

                o            (d)           (Specify, but must be at least once per Plan Year)

___.

 

                (3)           An Employee who

revokes his salary reduction agreement may file a new salary reduction

agreement with an effective date:  (Choose (a), (b), (c) or (d))

 

                o            (a)           No

earlier than the first day of the next Plan Year.

 

                o            (b)           As

of any subsequent Plan Entry Date.

 

                ý            (c)           As

of the first day of any month subsequent to the month in which he revoked an

Agreement.

 

                o            (d)           (Specify, but must be at least once per Plan Year

following the Plan Year of revocation) ___.

 

 

                (4)           A

Participant may increase or may decrease, on a prospective basis, his salary

reduction percentage or dollar amount:  (Choose (a), (b), (c) or (d))

 

                o            (a)           As

of the beginning of each payroll period.

 

                ý            (b)           As

of the first day of each month.

 

                o            (c)           As

of any Plan Entry Date.

 

                o            (d)           (Specify, but must permit an increase or a decrease

at least once per Plan Year) ___.

 

o            (l)            Cash

or deferred contributions. 

For each Plan Year for which the Employer makes a designated cash or

deferred contribution, a Participant may elect to receive directly in cash not

more than the following portion (or, if less, the 402(g) limitation described

in Section 14.07 of the Plan) of his proportionate share of that cash or

deferred contribution:  (Choose (1) or (2))

 

                o            (1)           All

or any portion.

 

                o            (2)           __%.

 

                3.04         CONTRIBUTION

ALLOCATION.  The Advisory Committee

will allocate deferral contributions, matching contributions, qualified

nonelective contributions and nonelective contributions in accordance with

Section 14.06 and the elections under this Adoption Agreement Section 3.04.

 

Part

I.  [Options (a) through (d)].  Special Accounting Elections.  (Choose

whichever elections are applicable to the Employer's Plan)

 

ý            (a)           Matching Contributions Account.  The Advisory will allocate matching

contributions to a Participant's:  (Choose (1) or (2); (3) is available only in addition

to (1))

 

                ý            (1)           Regular

Matching Contributions Account.

 

                o            (2)           Qualified

Matching Contributions Account.

 

                o            (3)           Except,

matching contributions under Option(s) ___ of Adoption Agreement Section 3.01

are allocable to the Qualified Matching Contributions Account.

 

ý            (b)           Special Allocation Dates for Salary Reduction

Contributions.  The Advisory

Committee will allocate salary reduction contributions as of the Accounting

Date and as of the following additional allocation dates:  any business day on which the U.S.

financial markets are open.

 

ý            (c)           Special Allocation Dates for Matching Contributions.  The Advisory Committee will allocate

matching contributions as of the Accounting Date and as of the following

additional allocation dates:  any

business day on which the U.S. financial markets are open.

 

ý            (d)           Designated Qualified Nonelective Contributions -

Definition of Participant. 

For purposes of allocating the designated qualified nonelective

contribution, "Participant" means: 

(Choose (1) or (2))

 

                o            (1)           All

Participants.

 

                ý            (2)           Participants

who are Nonhighly Compensated Employees for the Plan Year.

 

                o            (3)           (Specify)

___.

 

 

Part II. 

Method of Allocation - Nonelective Contribution.  Subject to any restoration allocation

required under Section 5.04, the Advisory Committee will allocate and credit

each annual nonelective contribution (and Participant forfeitures created as

nonelective contributions) to the Employer Contributions Account of each

Participant who satisfies the conditions of Section 3.06, in accordance with

the allocation method selected under this Section 3.04.  If the Employer elects Option (e)(2), Option

(g)(2) or Option (h), for the first 3% of Compensation allocated to all

Participants, "Compensation" does not include any exclusions elected

under Adoption Agreement Section 1.12 (other than the exclusion of elective

contributions), and the Advisory Committee must take into account the

Participant's Compensation for the entire Plan Year.  (Choose an allocation method

under (e), (f), (g) or (h); (i) is mandatory if the Employer elects (f), (g) or

(h); (j) is optional in addition to any other election.)

 

ý            (e)           Nonintegrated

Allocation Formula.  (Choose (1) or (2))

 

                ý            (1)           The

Advisory Committee will allocate the annual nonelective contributions in the

same ratio that each Participant's Compensation for the Plan Year bears to the

total Compensation of all Participants for the Plan Year.

 

                o            (2)           The

Advisory Committee will allocate the annual nonelective contributions in the

same ratio that each Participant's Compensation for the Plan Year bears to the

total Compensation of all Participants for the Plan Year.  For purposes of this Option (2),

"Participant" means, in addition to a Participant who satisfies the

requirements of Section 3.06 for the Plan Year, any other Participant entitled

to a top heavy minimum allocation under Section 3.04(B), but such Participant's

allocation will not exceed 3% of his Compensation for the Plan Year.

 

o            (f)            Two-Tiered Integrated Allocation Formula - Maximum

Disparity.  First, the

Advisory Committee will allocate the annual Employer nonelective contributions

in the same ratio that each Participant's Compensation plus Excess Compensation

for the Plan Year bears to the total Compensation plus Excess Compensation of

all Participants for the Plan Year.  The

allocation under this paragraph, as a percentage of each Participant's

Compensation plus Excess Compensation, must not exceed the applicable percentage

(5.7%, 5.4% or 4.3%) listed under the Maximum Disparity Table following Option

(i).

 

                The Advisory

Committee then will allocate any remaining nonelective contributions in the

same ratio that each Participant's Compensation for the Plan Year bears to the

total Compensation of all Participants for the Plan Year.

 

o            (g)           Three-Tiered Integrated Allocation Formula.  First, the Advisory Committee will allocate

the annual Employer nonelective contributions in the same ratio that each

Participant's Compensation for the Plan Year bears to the total Compensation of

all Participants for the Plan Year.  The

allocation under this paragraph, as a percentage of each Participant's

Compensation may not exceed the applicable percentage (5.7%, 5.4% or 4.3%)

listed under the Maximum Disparity Table following Option (i).  Solely for purposes of the allocation in

this first paragraph, "Participant" means, in addition to a

Participant who satisfies the requirements of Section 3.06 for the Plan Year.  (Choose

(1) or (2))

 

                o            (1)           No

other Participant.

 

                o            (2)           Any

other Participant entitled to a top heavy minimum allocation under Section

3.04(B), but such Participant's allocation under this Option (g) will not

exceed 3% of his Compensation for the Plan Year.

 

                As a second tier allocation, the Advisory Committee will allocate the

nonelective contributions in the same ratio that each Participant's Excess

Compensation for the Plan Year bears to the total Excess Compensation of all

Participants for the Plan Year.  The

allocation under this paragraph, as a percentage of each Participant's Excess

Compensation, may not exceed the allocation percentage in the first paragraph.

 

 

Finally, the

Advisory Committee will allocate any remaining nonelective contributions in the

same ratio that each Participant's Compensation for the Plan Year bears to the

total Compensation of all Participants for the Plan Year.

 

o            (h)           Four-Tiered Integrated Allocation Formula.  First, the Advisory Committee

will allocate the annual Employer nonelective contributions in the same ratio

that each Participant's Compensation for the Plan Year bears to the total

Compensation of all Participants for the Plan Year, but not exceeding 3% of

each Participant's Compensation.  Solely

for purposes of this first tier allocation, a "Participant" means, in

addition to any Participant who satisfies the requirements of Section 3.06 for

the Plan Year, any other Participant entitled to a top heavy minimum allocation

under Section 3.04(B) of the Plan.

 

As a second

tier allocation, the Advisory Committee will allocate the nonelective

contributions in the same ratio that each Participant's Excess Compensation for

the Plan Year bears to the total Excess Compensation of all Participants for

the Plan Year, but not exceeding 3% of each Participant's Excess Compensation.

 

As a third tier

allocation, the Advisory Committee will allocate the annual Employer

contributions in the same ratio that each Participant's Compensation plus

Excess Compensation for the Plan Year bears to the total Compensation plus

Excess Compensation of all Participants for the Plan Year. The allocation under

this paragraph, as a percentage of each Participant's Compensation plus Excess

Compensation, must not exceed the applicable percentage (2.7%, 2.4% or 1.3%)

listed under the Maximum Disparity Table following Option (i).

 

The Advisory

Committee then will allocate any remaining nonelective contributions in the

same ratio that each Participant's Compensation for the Plan Year bears to the

total Compensation of all Participants for the Plan Year.

 

o            (i)            Excess Compensation.  For purposes of Option (f), (g) or (h),

"Excess Compensation" means Compensation in                                              excess of the following

Integration Level: (Choose (1) or (2))

 

                o            (1)           __%

(not exceeding 100%) of the taxable wage base, as determined under Section 230

of the Social Security Act, in effect on the first day of the Plan Year: Choose any combination of (a) and (b) or choose (c))

 

                                o            (a)           Rounded

to __ (but not exceeding the taxable wage base).

 

                                o            (b)           But

not greater than $__.

 

                                o            (c)           Without

any further adjustment or limitation.

 

                o            (2)           $__

[Note: Not exceeding the taxable wage base

for the Plan Year in which this Adoption Agreement first is                                              effective.]

 

 

Maximum

Disparity Table. For purposes of Options (f), (g) and

(h), the applicable percentage is:

 

	

  Integration Level (as

  percentage of taxable wage base)

  	

   

  	

  Applicable Percentages

  for Option (f) or Option (g)

  	

   

  	

  Applicable Percentages

  for Option (h)

  	

   

  
	

  100%

  	

   

  	

  5.7%

  	

   

  	

  2.7%

  	

   

  
	

  More than 80% but less than 100%

  	

   

  	

  5.4%

  	

   

  	

  2.4%

  	

   

  
	

  More than 20% (but not less than $10,001)

  and not more than 80%

  	

   

  	

  4.3%

  	

   

  	

  1.3%

  	

   

  
	

  20% (or $10,000, if greater) or less

  	

   

  	

  5.7%

  	

   

  	

  2.7%

  	

   

  

 

o            (j)            Allocation offset. 

The Advisory Committee will reduce a Participant's allocation

otherwise made under Part II of this Section 3.04 by the Participant's

allocation under the following qualified plan(s) maintained by the Employer:__.

 

                The Advisory Committee will determine this

allocation reduction: (Choose (1) or (2))

 

o            (1)           By

treating the term "nonelective contribution" as including all amounts

paid or accrued by the Employer during the Plan Year to the qualified plan(s)

referenced under this Option (j). If a Participant under this Plan also

participates in that other plan, the Advisory Committee will treat the amount

the Employer contributes for or during a Plan Year on behalf of a particular

Participant under such other plan as an amount allocated under this Plan to

that Participant's Account for that Plan Year. The Advisory Committee will make

the computation of allocation required under the immediately preceding sentence

before making any allocation of nonelective contributions under this Section

3.04.

 

                o            (2)           In

accordance with the formula provided in an addendum to this Adoption Agreement,

numbered 3.04(j).

 

Top

Heavy Minimum Allocation - Method of Compliance.  If a Participant's allocation under this

Section 3.04 is less than the top heavy minimum allocation to which he is

entitled under Section 3.04(B): (Choose (k)

or (l))

 

ý            (k)           The

Employer will make any necessary additional contribution to the Participant's Account,

as described in Section    3.04(B)(7)(a)

of the Plan.

 

o            (l)            The

Employer will satisfy the top heavy minimum allocation under the following

plan(s) it maintains: __. However, the Employer will make any necessary

additional contribution to satisfy the top heavy minimum allocation for an

Employee covered only under this Plan and not under the other plan(s)

designated in this Option (l). See Section 3.04(B)(7)(b) of the Plan.

 

If the Employer maintains

another plan, the Employer may provide in an addendum to this Adoption

Agreement, numbered Section 3.04, any modifications to the Plan necessary to

satisfy the top heavy requirements under Code §416.

 

Related

employers.  If

two or more related employers (as defined in Section 1.30) contribute to this

Plan, the Advisory Committee must allocate all Employer nonelective

contributions (and forfeitures treated as nonelective contributions) to each

Participant in the Plan, in accordance with the elections in this Adoption

Agreement Section 3.04: (Choose (m) or (n))

 

o            (m)          Without

regard to which contributing related group member employs the Participant.

 

 

ý            (n)           Only

to the Participants directly employed by the contributing Employer. If a

Participant receives Compensation from more than one contributing Employer, the

Advisory Committee will determine the allocations under this Adoption Agreement

Section 3.04 by prorating among the participating Employers the Participant's

Compensation and, if applicable, the Participant's Integration Level under

Option (i).

 

                3.05         FORFEITURE ALLOCATION.  Subject to any restoration allocation

required under Sections 5.04 or 9.14, the Advisory Committee will allocate a

Participant forfeiture in accordance with Section 3.04: (Choose (a) or (b); (c) and (d) are optional in

addition to (a) or (b))

 

o            (a)           As

an Employer nonelective contribution for the Plan Year in which the forfeiture

occurs, as if the Participant forfeiture were an additional nonelective

contribution for that Plan Year.

 

ý            (b)           To

reduce the Employer matching contributions and nonelective contributions for

the Plan Year:
                (Choose (1) or (2))

 

                o            (1)           in

which the forfeiture occurs.

 

                ý            (2)           immediately

following the Plan Year in which the forfeiture occurs.

 

ý            (c)           To

the extent attributable to matching contributions: (Choose (1), (2) or (3))

 

                o            (1)           In

the manner elected under Options (a) or (b).

 

                ý            (2)           First

to reduce Employer matching contributions for the Plan Year: (Choose (a) or (b))

 

                                o            (a)           in

which the forfeiture occurs,

 

                                ý            (b)           immediately

following the Plan Year in which the forfeiture occurs, then as elected in 

Options (a) or (b).

 

                o            (3)           As

a discretionary matching contribution for the Plan Year in which the forfeiture

occurs, in lieu of the manner elected under Options (a) or (b).

 

o            (d)           First

to reduce the Plan's ordinary and necessary administrative expenses for the

Plan Year and then will allocate any remaining forfeitures in the manner

described in Options (a), (b) or (c), whichever applies. If the Employer elects

Option (c), the forfeitures used to reduce Plan expenses: (Choose (1) or (2))

 

                o            (1)           relate

proportionately to forfeitures described in Option (c) and to forfeitures

described in Options (a) or (b).

 

                o            (2)           relate

first to forfeitures described in Option __.

 

Allocation of forfeited excess aggregate

contributions. 

The Advisory Committee will allocate any forfeited excess aggregate

contributions (as described in Section 14.09): (Choose

(e), (f) or (g))

 

                ý            (e)           To

reduce Employer matching contributions for the Plan Year: (Choose (1) or (2))

 

                o            (1)           in

which the forfeiture occurs.

 

                ý            (2)           immediately

following the Plan Year in which the forfeiture occurs.

 

o            (f)            As

Employer discretionary matching contributions for the Plan Year in which

forfeited, except the Advisory Committee will not allocate these forfeitures to

the Highly Compensated Employees who incurred the forfeitures.

 

 

o            (g)           In

accordance with Options (a) through (d), whichever applies, except the Advisory

Committee will not allocate these forfeitures under Option (a) or under Option

(c)(3) to the Highly Compensated Employees who incurred the forfeitures.

 

                3.06         ACCRUAL OF BENEFIT.

 

Compensation taken into account.  For the Plan Year in which the Employee

first becomes a Participant, the Advisory Committee will determine the

allocation of any cash or deferred contribution, designated qualified

nonelective contribution by taking into account: (Choose (a) or (b))

 

o            (a)           The

Employee's Compensation for the entire Plan Year.

 

ý            (b)           The

Employee's Compensation for the portion of the Plan Year in which the Employee

actually is a Participant in the Plan.

 

Accrual Requirements.  Subject to the suspension of accrual

requirements of Section 3.06(E) of the Plan, to receive an allocation of cash

or deferred contributions, matching contributions, designated qualified

nonelective contributions, nonelective contributions and Participant

forfeitures, if any, for the Plan Year, a Participant must satisfy the

conditions described in the following elections: (Choose (c), or at least one of (d) through (f))

 

ý            (c)           Safe harbor rule.  If the Participant is employed by the Employer on the last day of

the Plan Year, the Participant must complete at least one Hour of Service for

that Plan Year. If the Participant is not employed by the Employer on the last

day of the Plan Year, the Participant must complete at least 501 Hours of

Service during the Plan Year.

 

o            (d)           Hours of Service condition. The Participant

must complete the following minimum number of Hours of Service during the Plan

Year: (Choose at least one of (1) through

(5))

 

                o            (1)           1,000

Hours of Service.

 

                o            (2)           (Specify, but the number of Hours of Service may not

exceed 1,000) __.

 

                o            (3)           No

Hour of Service requirement if the Participant terminates employment during the

Plan Year on account of: (Choose (a), (b) or

(c))

 

                                o            (a)           Death.

 

                                o            (b)           Disability.

 

                                o            (c)           Attainment

of Normal Retirement Age in the current Plan Year or in a prior Plan Year.

 

                o            (4)           __

Hours of Service (not exceeding 1,000) if the Participant terminates employment

with the Employer during the Plan Year, subject to any election in Option (3).

 

                o            (5)           No

Hour of Service requirement for an allocation of the following contributions:

__.

 

o            (e)           Employment condition.  The Participant must be employed by the

Employer on the last day of the Plan Year, irrespective of whether he satisfies

any Hours of Service condition under Option (d), with the following exceptions:

(Choose (1) or at least one of (2) through

(5))

 

                o            (1)           No

exceptions.

 

                o            (2)           Termination

of employment because of death.

 

 

                o            (3)           Termination

of employment because of disability.

                o            (4)           Termination

of employment following attainment of Normal Retirement Age.

                o            (5)           No

employment condition for the following contributions: _____.

o            (f)            (Specify other conditions, if applicable): _____.

Suspension Accrual Requirements.

The suspension of accrual requirements of Section 3.06(E) of the Plan: (Choose (g), (h) or (i))

ý            (g)           Applies

to the Employer's Plan.

o            (h)           Does

not apply to the Employer's Plan.

o            (i)            Applies

in modified form to the Employer's Plan, as described in an addendum to this

Adoption Agreement, numbered Section 3.06(E).

Special accrual requirements for matching

contributions. If the Plan allocates matching

contributions on two or more allocation dates for a Plan Year, the Advisory

Committee, unless otherwise specified in Option (1), will apply any Hours of

Service condition by dividing the required Hours of Service on a prorata basis

to the allocation periods included in that Plan Year. Furthermore, a

Participant who satisfies the conditions described in this Adoption Agreement

Section 3.06 will receive an allocation of matching contributions (and

forfeitures treated as matching contributions) only if the Participant

satisfies the following additional condition(s): (Choose (j) or at least one of (k) or (l)).

ý            (j)            No additional conditions.

o            (k)           The

Participant is not a Highly Compensated Employee for the Plan Year. This Option

(k) applies to: (Choose (1) or (2))

                o            (1)           All

matching contributions.

                o            (2)           Matching

contributions described in Option(s) __ of Adoption Agreement Section 3.01.

o            (l)            (Specify) ___.

                3.15         MORE THAN ONE PLAN

LIMITATION.  If the provisions of

Section 3.15 apply, the Excess Amount attributed to this Plan equals: (Choose (a), (b) or (c))

o            (a)           The

product of:

                                (1)           the

total Excess Amount allocated as of such date (including any amount which the

Advisory Committee would have allocated but for the limitations of Code §415),

times

                                (2)           the

ratio of (1) the amount allocated to the Participant as of such date under this

Plan divided by (2) the total amount allocated as of such date under all

qualified defined contribution plans (determined without regard to the

limitations of Code §415).

ý            (b)           The

total Excess Amount.

o            (c)           None

of the Excess Amount.

 

 

                3.18         DEFINED BENEFIT

PLAN LIMITATION.

Application of limitation.

The limitation under Section 3.18 of the Plan: (Choose

(a) or (b))

ý            (a)           Does

not apply to the Employer's Plan because the Employer does not maintain and

never has maintained a defined benefit plan covering any Participant in this

Plan.

o            (b)           Applies

to the Employer's Plan. To the extent necessary to satisfy the limitation under

Section 3.18, the Employer will reduce: (Choose

(1) or (2))

                o            (1)           The

Participant's projected annual benefit under the defined benefit plan under

which the Participant participates.

                o            (2)           Its

contribution or allocation on behalf of the Participant to the defined

contribution plan under which the Participant participates and then, if

necessary, the Participant's projected annual benefit under the defined benefit

plan under which the Participant participates.

[Note: If

the Employer selects (a), the remaining options in this Section 3.18 do not apply to the Employer's Plan.]

Coordination with top heavy minimum

allocation.  The

Advisory Committee will apply the top heavy minimum allocation provisions of

Section 3.04(B) of the Plan with the following modifications:  (Choose

(c) or at least one of (d) or (e))

o            (c)           No

modifications.

o            (d)           For

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

allocation is the minimum allocation described in Section 3.04(B) determined by

substituting __% (not less than 4%) for "3%," except:  (Choose

(1) or (2))

                o            (1)           No

exceptions.

                o            (2)           Plan

Years in which the top heavy ratio exceeds 90%.

o            (e)           For

Non-Key Employees also participating in the defined benefit plan, the top heavy

minimum is:  (Choose (1) or (2))

                o            (1)           5%

of Compensation (as determined under Section 3.04(B) of the Plan) irrespective

of the contribution rate of any Key Employee, except:  (Choose (i) or (ii))

                                o            (a)           No

exceptions.

                                o            (b)           Substituting

"71⁄2%" for "5%" if the top heavy ratio does not exceed 90%.

                o            (2)           0%.

[Note: 

The Employer may not select this Option (2) unless the defined benefit

plan satisfies the top heavy minimum benefit requirements of Code §416 for

these Non-Key Employees.]

Actuarial Assumptions for Top Heavy

Calculation.  To determine the top heavy ratio,

the Advisory Committee will use the following interest rate and mortality

assumptions to value accrued benefits under a defined benefit plan: _____.

If the elections under this Section 3.18 are

not appropriate to satisfy the limitations of Section 3.18, or the top heavy

requirements under Code §416, the Employer must provide the appropriate

provisions in an addendum to this Adoption Agreement.

 

 

ARTICLE

IV

PARTICIPANT CONTRIBUTIONS

                4.01         PARTICIPANT

NONDEDUCTIBLE CONTRIBUTIONS. The Plan: (Choose

(a) or (b); (c) is available only with (b))

ý            (a)           Does

not permit Participant nondeductible contributions.

o            (b)           Permits

Participant nondeductible contributions, pursuant to Section 14.04 of the Plan.

o            (c)           The

following portion of the Participant's nondeductible contributions for the Plan

Year are mandatory contributions under Option (i)(3) of Adoption Agreement

Section 3.01: (Choose (1) or (2))

                o            (1)           The

amount which is not less than: ____.

                o            (2)           The

amount which is not greater than: ____.

Allocation dates.

The Advisory Committee will allocate nondeductible contributions for each Plan

Year as of the Accounting Date and the following additional allocation dates: (Choose (d) or (e))

o            (d)           No

other allocation dates.

o            (e)           (Specify) ___.

As of an allocation date, the Advisory

Committee will allocate nondeductible contributions made for the relevant

allocation period. Unless otherwise specified in (e), a nondeductible

contribution relates to an allocation period only if actually made to the Trust

no later than 30 days after that allocation period ends.

                4.05         PARTICIPANT

CONTRIBUTION - WITHDRAWAL/DISTRIBUTION.  Subject to the restrictions of Article VI, the following

distribution options apply to a Participant's Mandatory Contributions Account,

if any, prior to his Separation from Service: (Choose

(a) or at least one of (b) through (d))

o            (a)           No

distribution options prior to Separation from Service.

o            (b)           The

same distribution options applicable to the Deferral Contributions Account

prior to the Participant's Separation from Service, as elected in Adoption

Agreement Section 6.03.

o            (c)           Until

he retires, the Participant has a continuing election to receive all or any

portion of his Mandatory Contributions Account if: (Choose (1) or at least one of (2) through (4))

                o            (1)           No

conditions.

                o            (2)           The

mandatory contributions have accumulated for at least ___ Plan Years since the

Plan Year for which contributed.

                o            (3)           The

Participant suspends making nondeductible contributions for a period of ___

months.

                o            (4)           (Specify) ___.

o            (d)           (Specify) ___.

 

 

ARTICLE

V

TERMINATION OF SERVICE - PARTICIPANT VESTING

                5.01         NORMAL RETIREMENT.  Normal Retirement Age under the Plan is: (Choose (a) or (b))

ý            (a)           65;

early retirement age of 55 and completion of 10 Years of Service [State age, but may not exceed age 65].

o            (b)           The

later of the date the Participant attains ___ years of age or the __

anniversary of the first day of the Plan Year in which the Participant

commenced participation in the Plan. [The

age selected may not exceed age 65 and the anniversary selected may not exceed

the 5th.]

                5.02         PARTICIPANT DEATH

OR DISABILITY. The 100% vesting rule under Section 5.02 of the Plan: (Choose (a) choose one or both of (b) and (c))

o            (a)           Does

not apply.

ý            (b)           Applies

to death.

ý            (c)           Applies

to disability.

                5.03         VESTING SCHEDULE.

Deferral Contributions Account/Qualified

Matching Contributions Account/Qualified Nonelective Contributions

Account/Mandatory Contributions Account. A Participant

has a 100% Nonforfeitable interest at all times in his Deferral Contributions

Account, his Qualified Matching Contributions Account, his Qualified

Nonelective Contributions Account and in his Mandatory Contributions Account.

Regular Matching Contributions

Account/Employer Contribution Account. With respect to

a Participant's Regular Matching Contributions Account and Employer

Contributions Account, the Employer elects the following vesting schedule: (Choose (a) or (b); (c) and (d) are available only as

additional options)

o            (a)           Immediate

vesting. 100% Nonforfeitable at all times. [Note:

The Employer must elect Option (a) if the eligibility conditions under Adoption

Agreement Section 2.01(c) require 2 years of service or more than 12 months of

employment.]

ý            (b)           Graduated

Vesting Schedules.

 

	

  Top Heavy Schedule 

  (Mandatory)

  	

   

  	

  Non Top Heavy Schedule

  (Optional)

  	

   

  
	

  Years of

  	

   

  	

  Nonforfeitable

  	

   

  	

  Years of

  	

   

  	

  Nonforfeitable

  	

   

  
	

  Service

  	

   

  	

  Percentage

  	

   

  	

  Service

  	

   

  	

  Percentage

  	

   

  
	

  Less than 1

  	

   

  	

  0

  	

  %

  	

  Less than 1

  	

   

  	

  __

  	

  %

  
	

  1

  	

   

  	

  20

  	

  %

  	

  1

  	

   

  	

  __

  	

  %

  
	

  2

  	

   

  	

  40

  	

  %

  	

  2

  	

   

  	

  __

  	

  %

  
	

  3

  	

   

  	

  60

  	

  %

  	

  3

  	

   

  	

  __

  	

  %

  
	

  4

  	

   

  	

  80

  	

  %

  	

  4

  	

   

  	

  __

  	

  %

  
	

  5

  	

   

  	

  100

  	

  %

  	

  5

  	

   

  	

  __

  	

  %

  
	

  6 or more

  	

   

  	

  100

  	

  %

  	

  6

  	

   

  	

  __

  	

  %

  
	

   

  	

   

  	

   

  	

   

  	

  7 or more

  	

   

  	

  100

  	

  %

  

 

 

o            (c)           Special

vesting election for Regular Matching Contributions Account.  In lieu of the election under Options (a) or

(b), the Employer elects the following vesting schedule for a Participant’s

Regular Matching Contributions Account: (Choose

(1) or (2))

 

o            (1)           100%

Nonforfeitable at all times.

 

o            (2)           In

accordance with the vesting schedule described in the addendum to this Adoption

Agreement, numbered

5.03(c). [Note: If the Employer elects this

Option (c )(2), the addendum must designate the applicable vesting schedule(s)

using the same format as used in Option (b).]

 

[Note: Under Options (b) and (c )(2), the

Employer must complete a Top Heavy Schedule which satisfies Code §416.  The Employer, at its option, may complete a

Non Top Heavy Schedule.  The Non Top

Heavy Schedule must satisfy Code §411(a)(2). 

Also see Section 7.05 of the Plan.]

 

o            (d)           The

Top Heavy Schedule under Option (b) (and, if applicable, under Option (c)(2))

applies: (Choose (1) or (2))

 

                o            (1)           Only

in a Plan Year for which the Plan is top heavy.

 

o            (2)           In

the Plan Year for which the Plan first is top heavy and then in all subsequent

Plan Years. [Note: The Employer may not

elect Option (d) unless it has completed a Non Top Heavy Schedule.]

 

Minimum vesting.  (Choose

(e) or (f))

 

ý            (e)           The

Plan does not apply a minimum vesting rule.

 

o            (f)            A

Participant’s Nonforfeitable Accrued Benefit will never be less than the lesser

of $____ or his entire Accrued Benefit, even if the application of a graduated

vesting schedule under Options (b) or (c) would result in a smaller Nonforfeitable

Accrued Benefit.

 

Life Insurance Investments.  The Participant’s Accrued Benefit

attributable to insurance contracts purchased on his behalf under Article XI

is: (Choose (g) or (h))

 

o            (g)           Subject

to the vesting election under Options (a), (b) or (c).

 

ý            (h)           100%

Nonforfeitable at all times, irrespective of the vesting election under Options

(b) or (c)(2).

 

                5.04         CASH-OUT DISTRIBUTIONS TO

PARTIALLY-VESTED PARTICIPANTS/RESTORATION OF FORFEITED ACCRUED BENEFIT.  The deemed cash-out rule described in Section

5.04(C) of the Plan: (Choose (a) or (b))

 

o            (a)           Does

not apply.

 

ý            (b)           Will

apply to determine the timing of forfeitures for 0% vested Participants.  A Participant is not a 0% vested Participant

if he has a Deferral Contributions Account.

 

 

                5.06         YEAR OF

SERVICE-VESTING.

 

Vesting computation period.  The Plan measures a

Year of Service on the basis of the following 12 consecutive month periods:  (Choose (a)

or (b))

 

ý            (a)           Plan

Years.

 

o            (b)           Employment

Years.  An Employment Year is the 12

consecutive month period measured from the Employee’s Employment Commencement

Date and each successive 12 consecutive month period measured from each

anniversary of that Employment Commencement Date.

 

Hours of Service.  The minimum number of Hours of Service an

Employee must complete during a vesting computation period to receive credit

for a Year of Service is:  (Choose (c) or (d))

 

ý            (c)           1,000

Hours of Service.

 

o            (d)           ___

Hours of Service. [Note:  The Hours of Service requirement may not

exceed 1,000.]

 

                5.08         INCLUDED

YEARS OF SERVICE-VESTING.  The

Employer specifically excludes the following Years of Service:  (Choose

(a) or at least one of (b) through (e))

 

ý            (a)           None

other than as specified in Section 5.08(a) of the Plan.

 

o            (b)           Any

Year of Service before the Participant attained the age of ___. [Note:  The age

selected may not exceed age 18.]

 

o            (c)           Any

Year of Service during the period the Employer did not maintain this Plan or a

predecessor plan.

 

o            (d)           Any

Year of Service before a Break in Service if the number of consecutive Breaks

in Service equals or exceeds the greater of 5 or the aggregate number of the

Years of Service prior to the Break. 

This exception applies only if the Participant is 0% vested in his

Accrued Benefit derived from Employer contributions at the time he has a Break

in Service.  Furthermore, the aggregate

number of Years of Service before a Break in Service do not include any Years

of Service not required to be taken into account under this exception by reason

of any prior Break in Service.

 

o            (e)           Any

Year of Service earned prior to the effective date of ERISA if the Plan would

have disregarded that Year of Service on account of an Employee’s Separation

from Service under a Plan provision in effect and adopted before January 1,

1974.

 

ARTICLE VI

TIME

AND METHOD OF PAYMENTS OF BENEFITS

 

Code §411(d)(6) Protected Benefits.  The elections under this Article VI may not

eliminate Code §411(d)(6) protected benefits. 

To the extent the elections would eliminate a Code §411(d)(6) protected

benefit, see Section 13.02 of the Plan. 

Furthermore, if the elections liberalize the optional forms of benefit

under the Plan, the more liberal options apply on the later of the adoption

date or the Effective Date of this Adoption Agreement.

 

6.01         TIME

OF PAYMENT OF ACCRUED BENEFIT.

 

Distribution date.  A distribution date under the Plan means

any business day on which the U.S financial markets are open. [Note:  The

Employer must specify the appropriate date(s). 

The specified distribution dates primarily establish annuity starting

dates and the notice and consent periods prescribed by the Plan.  The Plan allows the Trustee an

administratively practicable period of time to make the actual distribution

relating to a particular distribution date.]

 

 

Nonforfeitable Accrued Benefit Not Exceeding

$3,500.  Subject to the limitations of Section 6.01(A)(1), the distribution

date for distribution of a Nonforfeitable Accrued Benefit not exceeding $3,500

is:  (Choose

(a), (b), (c), (d) or (e))

 

o            (a)           ___

of the ___ Plan Year beginning after the Participant’s Separation from Service.

 

ý            (b)           as

soon as administratively feasible following the Participant’s Separation

from Service.

 

o            (c)           ___

of the Plan Year after the Participant incurs ___ Break(s) in Service (as

defined in Article V).

 

o            (d)           ___

following the Participant’s attainment of Normal Retirement Age, but not

earlier than ___ days following his Separation from Service.

 

o            (e)           (Specify) ___.

 

Nonforfeitable Accrued Benefits Exceeds

$3,500.  See

the elections under Section 6.03.

 

Disability. 

The distribution date, subject to Section

6.01(A)(3), is: (Choose (f), (g) or (h))

 

o            (f)            ___  after the Participant terminates employment

because of disability.

 

ý            (g)           The

same as if the Participant had terminated employment without disability.

 

o            (h)           (Specify) ___.

 

Hardship.  (Choose

(i) or (j))

 

ý            (i)            The

Plan does not permit a hardship distribution to a Participant who has separated

from Service.

 

o            (j)            The

Plan permits a hardship distribution to a Participant who has separated from

Service in accordance with the hardship distribution policy stated in:  (Choose

(1), (2) or (3))

 

                o            (1)           Section

6.01(A)(4) of the Plan.

 

                o            (2)           Section

14.11 of the Plan.

 

                o            (3)           The

addendum to this Adoption Agreement, numbered Section 6.01.

 

Default on a Loan.  If a Participant or Beneficiary defaults

on a loan made pursuant to a loan policy adopted by the Advisory Committee

pursuant to Section 9.04, the Plan:  (Choose (k), (l) or (m))

 

ý            (k)           Treats

the default as a distributable event. 

The Trustee, at the time of the default, will reduce the Participant’s

Nonforfeitable Accrued Benefit by the lesser of the amount in default (plus

accrued interest) or the Plan’s security interest in that Nonforfeitable

Accrued Benefit.  To the extend the loan

is attributable to the Participant’s Deferral Contributions Account, Qualified

Matching Contributions Account or Qualified Nonelective Contributions Account,

the Trustee will not reduce the Participant’s Nonforfeitable Accrued Benefit

unless the Participant has separated from Service or unless the Participant has

attained age 59 1/2.

 

o            (l)            Does

not treat the default as a distributable event.  When an otherwise distributable event first occurs pursuant to

Section 6.01 or Section 6.03 of the Plan, the Trustee will reduce the

Participant’s Nonforfeitable Accrued Benefit by the lesser of the amount in

default (plus accrued interest) or the Plan’s security interest in that

Nonforfeitable Accrued Benefit.

 

o            (m)          (Specify) ___.

 

 

                6.02         METHOD OF PAYMENT OF ACCRUED BENEFIT.  The Advisory Committee will apply Section

6.02 of the Plan with the following modifications:  (Choose (a) or at least one

of  (b), (c), (d) and (e))

 

ý            (a)           No

modifications.

 

o            (b)           Except

as required under Section 6.01 of the Plan, a lump sum distribution is not

available:  ___.

 

o            (c)           An

installment distribution:  (Choose (1) or at least one of (2) or (3))

 

                o            (1)           Is

not available under the Plan.

 

                o            (2)           May

not exceed the lesser of ___ years or the maximum period permitted under

Section 6.02.

 

                o            (3)           (Specify)

___.

 

o            (d)           The

Plan permits the following annuity options: ___.

 

                Any

Participant who elects a life annuity option is subject to the requirements of

Sections 6.04(A), (B), (C) and (D) of the Plan.  See Section 6.04(E). [Note:  The Employer may specify additional annuity

options in an addendum to this Adoption Agreement, numbered 6.02(d).]

 

o            (e)           If

the Plan invests in qualifying Employer securities, as described in Section

10.03(F), a Participant eligible to elect distribution under Section 6.03 may

elect to receive that distribution in Employer securities only in accordance

with the provisions of the addendum to this Adoption Agreement, numbered

6.02(e).

 

6.03         BENEFIT

PAYMENT ELECTIONS.

 

Participant Elections After Separation from

Service.  A

Participant who is eligible to make distribution elections under Section 6.03

of the Plan may elect to commence distribution of his Nonforfeitable Accrued

Benefit:  (Choose at least one of (a) through (c))

 

o            (a)           As

of any distribution date, but not earlier than __ of the __ Plan Year beginning

after the Participant’s Separation from Service.

 

ý            (b)           As

of the following date(s):  (Choose at least one of Options (1) through (6))

 

o            (1)           Any

distribution date after the close of the Plan Year in which the Participant

attains Normal Retirement Age.

 

ý            (2)           Any

distribution date following his Separation from Service with the Employer.

 

o            (3)           Any

distribution date in the __ Plan Year(s) beginning after his Separation from

Service.

 

o            (4)           Any

distribution date in the Plan Year after the Participant incurs __ Break(s) in

Service (as defined in Article V)

 

ý            (5)           Any

distribution date following attainment of age 55 and completion of at

least 10 Years of Service (as defined in Article V)

 

o            (6)           (Specify) ___.

 

o            (c)           (Specify) ___.

 

 

                The

distribution events described in the election(s) made under Options (a), (b) or

(c) apply equally to all Accounts maintained for the Participant unless

otherwise specified in Option (c).

 

Participant Elections Prior to Separation

from Service – Regular Matching Contributions Account and Employer

Contributions Account.  Subject to the restrictions of Article VI, the following

distribution options apply to a Participant’s Regular Matching Contributions

Account and Employer Contributions Account prior to his Separation from

Service.  (Choose (d) or at least one of (e) through (h))

 

o            (d)           No

distribution options prior to Separation from Service.

 

ý            (e)           Attainment

of Specified Age.  Until he retires, the

Participant has a continuing election to receive all or any portion of his

Nonforfeitable interest in these Accounts after he attains:  (Choose

(1) or (2))

 

                o            (1)           Normal

Retirement Age.

 

                ý            (2)           59

1/2 years of age and is at least 100% vested in these Accounts. [Note:  If the

percentage is less than 100%, see the special vesting formula in Section 5.03.]

 

o            (f)            After

a Participant has participated in the Plan for a period of not less than __

years and is 100% vested in these Accounts, until he retires, the Participant

has a continuing election to receive all or any portion of the Accounts. [Note:  The

number in the blank space may not be less than 5.]

 

o            (g)           Hardship.  A Participant may elect a hardship

distribution prior to his Separation from Service in accordance with the

hardship distribution policy:  (Choose (1), (2) or (3); (4) is available only as an

additional option)

 

                o            (1)           Under

Section 6.01(A)(4) of the Plan.

 

                o            (2)           Under

Section 14.11 of the Plan.

 

                o            (3)           Provided

in the addendum to this Adoption Agreement, numbered Section 6.03.

 

                o            (4)           In

no event may a Participant receive a hardship distribution before he is at

least __% vested in these Accounts. [Note:  If the percentage in the blank is less than

100%, see the special vesting formula in Section 5.03.]

 

o            (h)           (Specify) __.

 

[Note: 

The Employer may use an addendum, numbered 6.03, to provide additional

language authorized by Options (b)(6), (c), (g)(3) or (h) of this Adoption

Agreement Section 6.03.]

 

Participant Elections Prior to Separation

from Service – Deferral Contributions Account, Qualified Matching Contributions

Account and Qualified Nonelective Contributions Account.  Subject to the

restrictions of Article VI, the following distribution options apply to a

Participant’s Deferral Contributions Account, Qualified Matching Contributions

Account and Qualified Nonelective Contributions Account prior to his Separation

from Service.  (Choose (i) or at least one of (j) through (l))

 

o            (i)            No

distribution options prior to Separation from Service.

 

ý            (j)            Until

he retires, the Participant has a continuing election to receive all or any

portion of these Accounts after he attains: 

(Choose (1) or (2))

 

                o            (1)           The

later of Normal Retirement Age or age 59 1/2.

 

 

                ý            (2)           Age

59 1/2 (at least 59 1/2)

 

o            (k)           Hardship.

A Participant, prior to this Separation from Service, may elect a hardship

distribution from his Deferral Contributions Account in accordance with the

hardship distribution policy under Section 14.11 of the Plan.

 

o            (l)            (Specify) ____. 

[Note: Option (l) may not

permit in service distributions prior to age 59 1⁄2 (other than hardship) and may

not modify the hardship policy described in Section 14.11.]

 

Sale of trade or business/subsidiary. If

the Employer sells substantially all of the assets (within the meaning of Code

§409(d)(2)) used in a trade or business or sells a subsidiary (within the

meaning of Code §409(d)(3)), a Participant who continues employment with the

acquiring corporation is eligible for distribution from his Deferral

Contributions Account, Qualified Matching Contributions Account and Qualified

Nonelective Contributions Account: (Choose

(m) or (n))

 

o            (m)          Only

as described in this Adoption Agreement Section 6.03 for distributions prior to

Separation from Service.

 

ý            (n)           As

if he has a Separation from Service. After March 31, 1988, a distribution

authorized solely by reason of this Option (n) must constitute a lump sum

distribution, determined in a manner consistent with Code §401(k)(10) and the

applicable Treasury regulations.

 

                6.04         ANNUITY DISTRIBUTIONS TO

PARTICIPANTS AND SURVIVING SPOUSES. The annuity distribution requirements

of Section 6.04: (Choose (a) or (b))

 

ý            (a)           Apply

only to a Participant described in Section 6.04(E) of the Plan (relating to the

profit sharing exception to the joint and survivor requirements).

 

o            (b)           Apply

to all Participants.

 

ARTICLE IX

ADVISORY COMMITTEE – DUTIES WITH RESPECT TO

PARTICIPANTS’ ACCOUNTS

 

                9.10         VALUE OF PARTICIPANT'S ACCRUED

BENEFIT.  If a distribution (other

than a distribution from a segregated Account and other than a corrective

distribution described in Sections 14.07, 14.08, 14.09 or 14.10 of the Plan)

occurs more than 90 days after the most recent valuation date, the distribution

will include interest at: (Choose (a), (b)

or (c))

 

ý            (a)           0%

per annum. [Note: The percentage may equal

0%.]

 

o            (b)           The

90 day Treasury bill rate in effect at the beginning of the current valuation

period.

 

o            (c)           (Specify) ____.

 

                9.11         ALLOCATION AND DISTRIBUTION OF NET

INCOME GAIN OR LOSS.  Pursuant to

Section 14.12, to determine the allocation of net income, gain or loss: (Complete only those items, if any, which are

applicable to the Employer's Plan)

 

ý            (a)           For

salary reduction contributions, the Advisory Committee will: (Choose (1), (2), (3), (4) or (5))

 

                ý            (1)           Apply

Section 9.11 without modification.

 

                o            (2)           Use

the segregated account approach described in Section 14.12.

 

                o            (3)           Use

the weighted average method described in Section 14.12, based on a        weighting period.

 

                o           (4)               Treat

as part of the relevant Account at the beginning of the valuation period        % of the salary reduction contributions: (Choose (a) or (b))

 

                                o            (a)           made

during that valuation period.

 

                                o            (b)           made

by the following specified time: ____.

 

                o            (5)           Apply

the allocation method described in the addendum to this Adoption Agreement

numbered 9.11(a).

 

ý            (b)           For

matching contributions, the Advisory Committee will: (Choose (1), (2) (3) or (4))

 

                ý            (1)           Apply

Section 9.11 without modification.

 

                o            (2)           Use

the weighted average method described in Section 14.12, based on a        weighting period.

 

                o           (3)               Treat

as part of the relevant Account at the beginning of the valuation period        % of the matching contributions allocated during the valuation

period.

 

                o            (4)           Apply

the allocation method described in the addendum to this Adoption Agreement

numbered 9.11(b).

 

o            (c)           For

Participant nondeductible contributions, the Advisory Committee will: (Choose (1), (2), (3) or (4))

 

                o            (1)           Apply

Section 9.11 without modification.

 

                o            (2)           Use

the segregated account approach described in Section 14.12.

 

                o            (3)           Use

the weighted average method described in Section 14.12, based on a        weighting period.

 

                o           (4)               Treat

as part of the relevant Account at the beginning of the valuation period        % of the Participant nondeductible contributions: (Choose (a) or (b))

 

                                o            (a)           made

during that valuation period.

 

                                o            (b)           made

by the following specified time:         .

 

                o            (5)           Apply

the allocation method described in the addendum to this Adoption Agreement

numbered 9.11(c).

 

ARTICLE X

TRUSTEE AND CUSTODIAN, POWERS AND DUTIES

 

                10.03       INVESTMENT POWERS.  Pursuant to Section 10.03[F] of the Plan,

the aggregate investments in qualifying Employer securities and in qualifying

Employer real property: (Choose (a) or (b))

 

o            (a)           May

not exceed 10% of Plan assets.

 

ý            (b)           May

not exceed 0% of Plan assets. [Note:

The percentage may not exceed 100%.]

 

                10.14       VALUATION

OF TRUST.  In addition to each

Accounting Date, the Trustee must value the Trust Fund on the following

valuation date(s): (Choose (a) or (b))

 

o            (a)           No other mandatory valuation dates.

 

ý            (b)           (Specify)

any business day on which the U. S. financial markets are open.

 

 

EFFECTIVE DATE ADDENDUM

(Restated Plans Only)

 

                The Employer must complete this addendum only

if the restated Effective Date specified in Adoption Agreement Section 1.18 is

different than the restated effective date for at least one of the provisions

listed in this addendum. In lieu of the restated Effective Date in Adoption

Agreement Section 1.18, the following special effective dates apply: (Choose whichever elections apply)

 

o            (a)           Compensation definition.  The Compensation definition of Section 1.12

(other than the $200,000 limitation) is effective for Plan Years beginning

after        . [Note:

May not be effective later than the first day of the first Plan Year beginning

after the Employer executes this Adoption Agreement to restate the Plan for the

Tax Reform Act of 1986, if applicable.]

 

o            (b)           Eligibility conditions.  The eligibility conditions specified in

Adoption Agreement Section 2.01 are effective for Plan Years beginning after        .

 

o            (c)           Suspension of Years of Service.  The suspension of Years of Service rule

elected under Adoption Agreement Section 2.03 is effective for Plan Years

beginning after        .

 

o            (d)           Contribution/allocation formula.  The contribution formula elected under

Adoption Agreement Section 3.01 and the method of allocation elected under

Adoption Agreement Section 3.04 is effective for Plan Years beginning after        .

 

o            (e)           Accrual requirements.  The accrual requirements of Section 3.06 are

effective for Plan Years beginning after        .

 

o            (f)            Employment condition.  The employment condition of Section 3.06 is

effective for Plan Years beginning after        .

 

o            (g)           Elimination of Net Profits.  The requirement for the Employer not to have

net profits to contribute to this Plan is effective for Plan Years beginning

after        . [Note:

The date specified may not be earlier than December 31, 1985.]

 

o            (h)           Vesting Schedule.  The vesting schedule elected under Adoption Agreement Section

5.03 is effective for Plan Years beginning after        .

 

o            (i)            Allocation of Earnings.  The special allocation provisions elected

under Adoption Agreement Section 9.11 are effective for Plan Years beginning

after        .

 

o            (j)            (Specify)        . 

 

                For Plan Years prior to the special Effective

Date, the terms of the Plan prior to its restatement under this Adoption

Agreement will control for purposes of the designated provisions. A special

Effective Date may not result in the delay of a Plan provision beyond the

permissible Effective Date under any applicable law requirements.

 

Execution

Page

 

                The Trustee (and Custodian, if applicable),

by executing this Adoption Agreement, accepts its position and agrees to all of

the obligations, responsibilities and duties imposed upon the Trustee (or

Custodian) under the Master Plan and Trust. The Employer hereby agrees to the

provisions of this Plan and Trust, and in witness of its agreement, the

Employer by its duly authorized officers, has executed this Adoption Agreement,

and the Trustee (and Custodian, if applicable) signified its acceptance, on

this 14th day of

 December, 2000.

 

	

  Name and EIN

  of Employer:

  
	

  Sauer-Danfoss

  
	

  42-1345015

  	

   

  
	

   

  
	

  Signed: 

  	

  /s/ Richard

  Jarboe

  
	

   

  
	

   

  
	

   

  
	

  Name(s) of

  Trustee:

  
	

  Institutional

  Trust Company (formerly INVESCO Trust Company)

  
	

   

  
	

  Signed:

  	

   

  
				

 

Plan

Number.  The

3-digit plan number the Employer assigns to this Plan for ERISA reporting

purposes (Form 5500 Series) is:  001.

 

Use

of Adoption Agreement:  Failure to complete properly the elections in this Adoption

Agreement may result in disqualification of the Employer's Plan. The 3-digit

number assigned to this Adoption Agreement (see page 1) is solely for the

Master Plan Sponsor's recordkeeping purposes and does not necessarily

correspond to the plan number the Employer designated in the prior paragraph.

 

Master

Plan Sponsor. 

The Master Plan Sponsor identified on the first page of the basic plan

document will notify all adopting employers of any amendment of this Master Plan

or of any abandonment or discontinuance by the Master Plan Sponsor of its

maintenance of this Master Plan. For inquiries regarding the adoption of the

Master Plan, the Master Plan Sponsor's intended meaning of any plan provisions

or the effect of the opinion letter issued to the Master Plan Sponsor, please

contact the Master Plan Sponsor at the following address and telephone

number:  7800 East Union Ave., Denver,

CO 80237  303 930 6400.

 

Reliance

on Opinion Letter. 

The Employer may not rely on the Master Plan Sponsor's opinion letter

covering this Adoption Agreement. For reliance on the Plan's qualification, the

Employer must obtain a determination letter from the applicable IRS Key

District office.

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