Document:

EXHIBIT 10.17

 

ZIONS BANCORPORATION PENSION PLAN

 

As Restated Effective January 1, 2001

Including Amendments Adopted Through January
31, 2002

 

February 19, 2002 Edition

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
  INTRODUCTION

  	
  1

  
	
   

  	
   

  
	
  ARTICLE
  1  DEFINITIONS

  	
  3

  
	
  1.1

  	
  Accrued Benefit

  	
  3

  
	
  1.2

  	
  Accrued Benefit Attributable to the Old
  Plan Account

  	
  3

  
	
  1.3

  	
  Accrued Benefit Attributable to Company
  Contributions

  	
  3

  
	
  1.4

  	
  Actuarial Equivalence or Actuarial
  Equivalent

  	
  3

  
	
  1.5

  	
  Affiliate or Subsidiary

  	
  4

  
	
  1.6

  	
  Authorized Period of Absence

  	
  4

  
	
  1.7

  	
  Beneficiary

  	
  4

  
	
  1.8

  	
  Break in Service

  	
  5

  
	
  1.9

  	
  Cash Balance Account

  	
  6

  
	
  1.10

  	
  Code

  	
  6

  
	
  1.11

  	
  Commerce Participant

  	
  6

  
	
  1.12

  	
  Commerce
  Plan

  	
  6

  
	
  1.13

  	
  Committee or Retirement Committee

  	
  6

  
	
  1.14

  	
  Company

  	
  6

  
	
  1.15

  	
  Compensation

  	
  6

  
	
  1.16

  	
  Disability Retirement Date

  	
  7

  
	
  1.17

  	
  Early Retirement Date and Earliest
  Retirement Date

  	
  7

  
	
  1.18

  	
  Earnings

  	
  7

  
	
  1.19

  	
  Eligibility Computation Period

  	
  9

  
	
  1.20

  	
  Eligible Employee

  	
  10

  
	
  1.21

  	
  Eligible Spouse

  	
  10

  
	
  1.22

  	
  Eligibility Computation Period

  	
  10

  
	
  1.23

  	
  Employee

  	
  10

  
	
  1.24

  	
  Employer

  	
  11

  
	
  1.25

  	
  Employment Date

  	
  11

  
	
  1.26

  	
  ERISA

  	
  11

  
	
  1.27

  	
  Grossmont Participant

  	
  11

  
	
  1.28

  	
  Grossmont
  Plan

  	
  11

  
	
  1.29

  	
  Hour
  of Service

  	
  11

  
	
  1.30

  	
  Investment Manager

  	
  13

  
	
  1.31

  	
  Late Retirement Date

  	
  13

  
	
  1.32

  	
  Nonvested Former Participant

  	
  13

  
	
  1.33

  	
  Normal Retirement Age

  	
  13

  
	
  1.34

  	
  Normal Retirement Date

  	
  14

  
	
  1.35

  	
  Old Plan Account

  	
  14

  
	
  1.36

  	
  Participant

  	
  14

  
	
  1.37

  	
  Participation Date

  	
  14

  
	
  1.38

  	
  Plan

  	
  14

  
	
  1.39

  	
  Plan
  Year

  	
  15

  
	
  1.40

  	
  Qualified Domestic Relations Order

  	
  15

  
	
  1.41

  	
  Qualified Military Service

  	
  15

  
	
  1.42

  	
  Retirement Date

  	
  15

  
	
  1.43

  	
  Single Life Annuity

  	
  15

  
	
  1.44

  	
  Sumitomo Participant

  	
  15

  
	
  1.45

  	
  Sumitomo
  Plan

  	
  16

  
	
  1.46

  	
  Termination of Employment

  	
  16

  
	
  1.47

  	
  Trust Agreement

  	
  16

  
	
  1.48

  	
  Trust
  Fund

  	
  16

  
	
  1.49

  	
  Trustee

  	
  16

  
	
  1.50

  	
  Year of Vesting Service

  	
  16

  
	
  1.51

  	
  Zions

  	
  18

  
	
   

  	
   

  
	
  ARTICLE
  2  PARTICIPATION

  	
  19

  
	
  2.1

  	
  Participation Date

  	
  19

  
	
  2.2

  	
  Reinstatement of Active Participation

  	
  20

  
	
   

  	
   

  
	
  ARTICLE 3 
  ESTABLISHMENT AND MAINTENANCE OF CASH BALANCE ACCOUNT 

  	
  21

  
	
  3.1

  	
  Initial Establishment of Cash Balance
  Account

  	
  21

  
	
  3.2

  	
  Earnings Credits

  	
  23

  
	
  3.3

  	
  Interest Credits

  	
  24

  
	
  3.4

  	
  Maintenance of Account after Termination of
  Employment until Benefit Commencement

  	
  25

  
	
  3.5

  	
  Establishment of New Account if Re-employed
  After Benefit Commencement

  	
  26

  
	
   

  	
   

  
	
  ARTICLE 4  ACCRUED BENEFIT

  	
  27

  
	
  4.1

  	
  Accrued
  Benefit

  	
  27

  
	
  4.2

  	
  Cash Balance Accrued Benefit

  	
  27

  
	
  4.3

  	
  Minimum Accrued Benefit

  	
  28

  
	
  4.4

  	
  Grandfathered Minimum Accrued Benefit

  	
  28

  
	
  4.5

  	
  Accrued Benefit Attributable to the Old Plan Account

  	
  28

  
	
  4.6

  	
  Accrued Benefit Attributable to Company
  Contributions

  	
  28

  
	
  4.7

  	
  Old
  Plan Account

  	
  28

  
	
   

  	
   

  
	
  ARTICLE 5 AMOUNT OF RETIREMENT INCOME

  	
  30

  
	
  5.1

  	
  Monthly Retirement Income

  	
  30

  
	
  5.2

  	
  Normal Retirement Income

  	
  30

  
	
  5.3

  	
  Early Retirement Income

  	
  30

  
	
  5.4

  	
  Late Retirement Income

  	
  31

  
	
  5.5

  	
  Disability Retirement Income

  	
  32

  
	
  5.6

  	
  Application for Retirement Income

  	
  32

  
	
  5.7

  	
  Forms of Retirement Income

  	
  33

  
	
  5.8

  	
  Payment of Small Benefits

  	
  38

  
	
  5.9

  	
  Eligible Rollover Distribution

  	
  38

  
	
  5.10

  	
  Re-employment After Retirement

  	
  39

  
	
  5.11

  	
  Commencement of Benefits

  	
  39

  
	
  5.12

  	
  Delay of Payment Due to Administrative
  Error

  	
  41

  
	
  5.13

  	
  Suspension of Benefits for Active
  Participants at Normal Retirement Date

  	
  42

  
	
  5.14

  	
  Benefits Under a Qualified Domestic
  Relations Order (QDRO)

  	
  43

  
	
   

  	
   

  
	
  ARTICLE 6 
  TERMINATION AND VESTING

  	
  44

  
	
  6.1

  	
  Vesting

  	
  44

  
	
  6.2

  	
  Termination Benefit

  	
  44

  
	
  6.3

  	
  Re-employment After Termination of
  Employment

  	
  45

  
	
  6.4

  	
  Termination Benefits and Re-employment for
  Commerce Participants

  	
  46

  
	
  6.5

  	
  Special Termination Benefit for Sumitomo
  Participants

  	
  46

  
	
   

  	
   

  
	
  ARTICLE 7 DISABILITY BENEFITS

  	
  47

  
	
  7.1

  	
  Determination of Disability

  	
  47

  
	
  7.2

  	
  Eligibility for Disability Benefits

  	
  47

  
	
  7.3

  	
  Disability Retirement Date

  	
  47

  
	
  7.4

  	
  Disability Retirement Income

  	
  47

  
	
   

  	
   

  
	
  ARTICLE
  8  DEATH BENEFITS

  	
  48

  
	
  8.1

  	
  Death after Commencement of Benefits

  	
  48

  
	
  8.2

  	
  Death Prior to Commencement of Benefits

  	
  48

  
	
  8.3

  	
  Effect of Old Plan Account

  	
  49

  
	
  8.4

  	
  Return of Old Plan Account

  	
  49

  
	
   

  	
   

  
	
  ARTICLE 9 
  FINANCING THE PLAN

  	
  50

  
	
  9.1

  	
  Company Contributions

  	
  50

  
	
  9.2

  	
  Return of Company Contributions

  	
  50

  
	
  9.3

  	
  Employee Contributions

  	
  50

  
	
   

  	
   

  
	
  ARTICLE
  10  TERMINATION OF THE PLAN

  	
  51

  
	
  10.1

  	
  Termination of Plan

  	
  51

  
	
  10.2

  	
  Procedures Upon Termination of Plan

  	
  51

  
	
   

  	
   

  
	
  ARTICLE 11 
  INTERNAL REVENUE CODE LIMITATIONS ON BENEFITS

  	
  52

  
	
  11.1

  	
  Earnings Limitation under Code Section
  401(a)(17)

  	
  52

  
	
  11.2

  	
  Maximum Retirement Benefit under Code
  Section 415

  	
  52

  
	
  11.3

  	
  Additional Benefit Limits for Highly
  Compensated Employees

  	
  56

  
	
  11.4

  	
  Top-Heavy Provisions

  	
  58

  
	
   

  	
   

  
	
  ARTICLE 12  ADMINISTRATION OF
  THE PLAN

  	
  63

  
	
  12.1

  	
  Administration

  	
  63

  
	
  12.2

  	
  Records

  	
  64

  
	
  12.3

  	
  Payment of Expenses

  	
  64

  
	
  12.4

  	
  Delegation of Authority

  	
  64

  
	
  12.5

  	
  Information Available

  	
  64

  
	
  12.6

  	
  Claims and Appeals Procedure

  	
  64

  
	
  12.7

  	
  Fiduciary Capacity

  	
  65

  
	
  12.8

  	
  Committee Liability

  	
  65

  
	
   

  	
   

  
	
  ARTICLE 13 
  GENERAL PROVISIONS

  	
  66

  
	
  13.1

  	
  Amendment of Plan

  	
  66

  
	
  13.2

  	
  Employment Status

  	
  66

  
	
  13.3

  	
  Mergers or Consolidations

  	
  66

  
	
  13.4

  	
  Provision Against Anticipation

  	
  67

  
	
  13.5

  	
  Facility of Payment

  	
  67

  
	
  13.6

  	
  Construction

  	
  67

  
	
  13.7

  	
  Legal
  Actions

  	
  67

  
	
   

  	
   

  
	
  SIGNATURE
  PAGE

  	
  68

  
	
   

  	
   

  
	
  APPENDIX I: FACTORS FOR SPOUSE OPTION UNDER
  SECTION 5.7(A)

  	
  69

  
	
   

  	
   

  
	
  APPENDIX II: ACTUARIAL EQUIVALENCE FOR
  MONTHLY BENEFITS AND  LUMP SUMS

  	
  70

  
	
   

  	
   

  
	
  APPENDIX III:  MINIMUM ACCRUED BENEFIT

  	
  72

  
	
   

  	
   

  
	
  APPENDIX IV: ACQUISITION EFFECTIVE DATES

  	
  77

  
	
   

  	
   

  
	
  APPENDIX V:  DEFINITION OF “COMPANY”

  	
  78

  

 

 

INTRODUCTION

 

The Zions Bancorporation Pension Plan became effective on January 1,
1968. The Plan has been amended and restated from time to time.

 

Except where an effective date is expressly stated in the text of this
Plan, this document amends and restates the Plan, effective January 1, 2001;
provided, however:  (1) provisions
pertaining to the establishment and maintenance of Cash Balance Accounts shall
be effective April 1, 1997; (2) provisions pertaining to Grossmont Participants
and former participants of the Grossmont Plan shall be effective January 1,
1998; (3) provisions pertaining to Sumitomo Participants and former
participants of the Sumitomo Plan shall be effective October 1, 1998; and (4)
provisions pertaining to Commerce Participants and former participants of the
Commerce Plan shall be effective January 1, 1999.

 

The prior restatement of this Plan was effective as of April 1, 1997,
and included the terms and conditions of a cash balance account feature, which
was established as of January 1, 1997, for Active and Disabled Participants in
the Plan as of March 31, 1997.

 

This January 1, 2001 restatement incorporates the terms of Amendments 1
through 4 to the April 1, 1997 restatement and other modifications approved by
Zions Bancorporation through January 31, 2002. This restatement furthermore
incorporates modifications resulting from changes in the Internal Revenue Code
(the “Code”) and other provisions of federal law that were enacted or became
effective on various dates from 1994 through 2000 (sometimes referred to
collectively as “GUST” changes in law). Moreover, effective January 1, 2002,
this restatement contains less restrictive legal limitations on pension
benefits, as authorized by the Economic Growth and Tax Reduction Reconciliation
Act of 2001 (“EGTRRA”).

 

Effective at the close of business December 31, 1997, the Grossmont
Bank Restated Defined Benefit Pension Plan and Trust (the “Grossmont Plan”),
restated effective January 1, 1996, is merged into this Plan. Nothing in this
Plan shall be construed to provide a benefit under this Plan for a period of
service for which he or she has received a benefit under the Grossmont Plan.
The eligibility for and the amount of benefit of a former employee who
terminated or retired under the Grossmont Bank Restated Defined Benefit Pension
Plan and Trust prior to January 1, 1998, and who does not participate in this
Plan on or after January 1, 1998, shall be determined exclusively by the
provisions of the Grossmont Plan that were in effect as of the earlier of the
former employee’s date of termination or retirement, except as specifically
stated otherwise in the Grossmont Plan. With respect to the merger, this Plan
shall be interpreted and administered to comply with ERISA Section 204(g) and
Code Sections 411(d)(6) and 414(l).

 

Effective at the close of business October 31, 1998, the Sumitomo Bank
of California Pension Plan (“Sumitomo Plan”), restated effective January 1,
1989, is merged into this Plan. Nothing in this Plan shall be construed to
provide a benefit under this Plan for a period of service for which he or she
has received a benefit under the Sumitomo Plan. The eligibility for and the
amount of benefit of a former employee who terminated under the Sumitomo Plan
prior to October 1, 1998, and who does not actively participate in this Plan on
or after October 1, 1998, shall be determined exclusively by the provisions of
that plan. With respect to the merger, this Plan shall be interpreted and
administered to comply with ERISA Section 204(g) and Code Sections 411(d)(6)
and 414(l).

 

 

Effective at the close of business December 31, 1998, the Commerce
Bancorporation Defined Benefit Pension Plan (“Commerce Plan”), restated
effective July 21, 1994, is merged into this Plan. Nothing in this Plan shall
be construed to provide a benefit under this Plan for a period of service for
which he or she has received a benefit under the Commerce Plan. The eligibility
for and the amount of benefit of a former employee who terminated under the
Commerce Plan prior to January 1, 1999, and who does not actively participate
in this Plan on or after January 1, 1999, shall be determined exclusively by
the provisions of that plan. With respect to the merger, this Plan shall be
interpreted and administered to comply with ERISA Section 204(g) and Code
Sections 411(d)(6) and 414(l).

 

Except as specifically provided in the Plan, the rights and benefits of
any Participant who terminates, dies or retires prior to the effective date of
this restatement or any other amendment to the Plan will be determined pursuant
to the provisions of the Plan in effect on the earlier of his or her date of
retirement, death or termination.

 

The Plan and Trust thereunder are created and maintained for the
primary purpose of providing retirement benefits for eligible employees of the
Zions Bancorporation and its affiliates. It is intended that the Plan and Trust
qualify under Sections 401(a) and 501(a) of the Internal Revenue Code of 1986,
as amended, and that they meet the requirements of the Employee Retirement
Income Security Act of 1974, as amended.

 

2

 

 

Article 1

 

DEFINITIONS

 

1.1           Accrued Benefit

 

Accrued Benefit means the monthly amount of
benefit credited to a Participant in accordance with Article 4 on the basis of
an annuity payable for life beginning on his or her Normal Retirement Date, or
the current date, if later.

 

1.2           Accrued Benefit Attributable to the
Old Plan Account

 

Accrued Benefit Attributable to the Old Plan
Account is defined in Section 4.5.

 

1.3           Accrued Benefit Attributable to
Company Contributions

 

Accrued Benefit Attributable to Company
Contributions is defined in Section 4.6.

 

1.4           Actuarial Equivalence or Actuarial
Equivalent

 

Actuarial Equivalence or Actuarial Equivalent
means equality in value of the aggregate amounts expected to be received under different
forms of payment computed on the following bases:

 

(a)                                  For purposes of
determining (i) the monthly annuity benefits under Sections 4.2, 4.5, 5.3(b)
and 8.2, and (ii) the value of lump sum payments under Sections 5.7(d) and 5.8,
Actuarial Equivalence will be calculated in accordance with Appendix II.

 

(b)                                 For purposes of
determining the maximum retirement benefit in Section 11.2, Actuarial
Equivalence will be calculated using the following bases:

 

(1)                                  The mortality
assumption is the “Applicable Mortality Table as defined in subsection (a) of
Appendix II.

 

(2)                                  Except as otherwise
specified in Section 11.2, effective on or after January 1, 1995, for a benefit
in the form of an annuity, the interest assumption (to adjust for age and for
the form of the benefit) shall be 5%. Notwithstanding any provision of Section
11.2 to the contrary, for a benefit payment after May 31, 1995 that is in a
form that is subject to Code Section 417(e) (for example, a lump sum), the
interest assumption to adjust for age will be the “Applicable Interest Rate”
specified in subsection (b) of Appendix II, and the interest assumption to
adjust for the form of the benefit shall be 5%.

 

(c)                                  For the purposes of
determining the maximum retirement benefit in Section 11.2 for a Grossmont
Participant who retires between January 1, 1998 and December 31, 1998,
Actuarial Equivalence will never be less than the amount the Grossmont
Participant would have received under the Grossmont Plan.

 

3

 

(d)                                 Except as otherwise
specified in the Plan, for all other purposes actuarial equivalency will be
calculated using the following basis:

 

(1)                                  The mortality
assumption will be the 1984 Unisex Pensioners Mortality Table.

 

(2)                                  The interest
assumption will be 6%.

 

1.5           Affiliate or Subsidiary

 

Affiliate or Subsidiary means Zions
Bancorporation and each member of a controlled group of corporations (as
defined in Code Section 1563(a), determined without regard to Code Sections
1563(a)(4) and (e)(3)(C)), a group of trades or businesses (whether
incorporated or not) which are under common control within the meaning of Code
Section 414(c), or an affiliated service group (as defined in Code Sections
414(m) or 414(o)), of which Zions Bancorporation is a part. With respect to the
Maximum Retirement Benefit defined in Section 11.2, in determining whether a
corporation is a member of a controlled group of corporations the phrase “more
than 50 percent” will be substituted for the phrase “at least 80 percent” each
place it appears in Code Section 1563(a)(1).

1.6           Authorized Period of Absence

 

Authorized Period of Absence means an absence
authorized by the Company for one or more of the following reasons:

 

(a)           Approved
leave of absence;

 

(b)           Pregnancy;

 

(c)           Jury
duty;

 

(d)           Qualified
Military Service; or

 

(e)                                  Illness or injury,
including disability, and including a period of absence legally authorized to
be taken, under the facts and circumstances applicable to the Participant, in
accordance with the terms of the Family and Medical Leave Act.

 

Any discretion of the Company under the
provisions of this definition will be exercised without discrimination and in
accordance with definitely established rules uniformly applicable to Employees
or Participants whose approved periods of absence were occasioned by similar
circumstances.

 

1.7           Beneficiary

 

(a)           Beneficiary
of Retirement Income of a Married Participant

 

For purposes of a post-retirement survivor
benefit for a Participant who is married to an Eligible Spouse on the date of
commencing his or her Retirement Income, the Beneficiary shall be the Eligible
Spouse, except to the extent that either: (a) the benefit is payable pursuant
to the mandatory lump sum provisions of Section 5.8 (in which case there shall
be no Beneficiary), (b) the Participant, with the written and notarized consent
of the Eligible Spouse, elects to receive a benefit in 

 

4

 

the form of a Single Life Annuity (with or
without a Level Income Option) or a lump sum (in which case there shall be no
Beneficiary), or (c) is eligible for and elects a form of benefit under
subsection (e)(1), (e)(2) or (f)(1) of Section 5.7 with a designated
Beneficiary other than the Eligible Spouse (in which case the Beneficiary shall
be the person (or persons, under Section 5.7(e)(1) or (e)(2)) designated by the
Participant with the consent of the Eligible Spouse at the time of commencing
the Retirement Income).

 

(b)           Beneficiary
of Retirement Income of an Unmarried Participant

 

For purposes of a Retirement Income benefit
for a Participant who has no Eligible Spouse on the date of commencing his or
her Retirement Income, the Beneficiary means either (a) the living person
designated by the Participant at the time of commencing his or her Retirement
Income, if the Participant is eligible for and elects a form of benefit
pursuant to Section 5.7(e)(1), (e)(2) or (f)(1) (in which case the Beneficiary
shall be the person (or persons, under Section 5.7(e)(1) or (e)(2)) designated
by the Participant, or (b) there shall be no Beneficiary if either the benefit
is payable pursuant to the mandatory lump-sum provisions of Section 5.8 or the
Participant elects to receive a benefit in the form of a Single Life Annuity or
lump sum.

 

(c)           Beneficiary
of a Pre-Retirement Survivor’s Death Benefit

 

For purposes
of any pre-retirement death benefit which may be payable under Section 8.2 of
the Plan, Beneficiary means the Eligible Spouse (if any, as of the date of the
Participant’s death prior to receiving Retirement Income under this Plan), or,
if no Eligible Spouse survives the Participant, then the benefit under Section
8.2 shall be paid in a lump sum to the Participant’s estate.

 

(d)           Beneficiary
of Unpaid Balance of Old Plan Account

 

In the case of any death benefit which may be
applicable under the terms of Section 8.4, Beneficiary means the person or
persons designated by a Participant for such purpose, or, if no Beneficiary is
designated (or if any and all designated Beneficiaries fail to survive the
Participant and the Eligible Spouse, if any), any death benefit payable under
Section 8.4 shall be payable to the estate of the last to die of the
Participant or Eligible Spouse (if any).

 

1.8           Break in Service

 

Break in Service means an interruption in
service due to a person’s failure to complete at least 501 Hours of Service
during a calendar year or during an Eligibility Computation Period. A Break in
Service will not occur during an Authorized Period of Absence unless the
Employee fails to return to work for at least 30 days with the Company or any
member of the Employer after the expiration of the Authorized Period of Absence
(or, in the case of an absence due to Qualified Military Service, unless the
Employee fails to return to work within the applicable period of time allowed
pursuant to Code Section 414(u)).

 

5

 

1.9           Cash Balance Account

 

Cash Balance Account means the separate
bookkeeping account established and maintained for each Participant as provided
in Article 3.

 

1.10         Code

 

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

 

1.11         Commerce Participant

 

“Commerce Participant” means a Participant in
the Commerce Plan who became a Participant in this Plan on January 1, 1999 as
the result of the December 31, 1998 merger of the Commerce Plan into this Plan.
Based upon his or her status in the Commerce Plan on December 31, 1998, and
based upon whether or not he or she became an Eligible Employee on January 1,
1999, a Commerce Participant described in this Section shall be deemed an
Active Participant, an Inactive Participant, a Terminated Vested Participant, a
Disabled Participant or a Retired Participant in this Plan, as defined in
Section 1.36, on January 1, 1999.

 

1.12         Commerce Plan

 

“Commerce Plan” means the Commerce
Bancorporation Defined Benefit Plan as in effect immediately prior to January
1, 1999.

 

1.13         Committee or Retirement Committee

 

Committee or Retirement Committee means the
Committee which will administer the plan as described in Article 12.

 

1.14         Company

 

Company means Zions Bancorporation and any
Affiliate or Subsidiary which adopts this Plan with the consent of the Board of
Directors of Zions Bancorporation. The Affiliates and Subsidiaries listed on
Appendix V, as it may be revised from time to time, have adopted this Plan and
are, as of the date or dates stated on Appendix V, a participating Company in
the Plan.

 

1.15         Compensation

 

“Compensation” for any tax year has the
meaning set forth in Treasury Regulations Section 1.415-2(d). Effective January
1, 1998, Compensation shall also include any elective deferrals as defined in
Code Section 402(g)(3) made by the Participant during a Plan Year and any
pre-tax Employee contributions made by the Employer on behalf of the Employee
for the Plan Year, pursuant to Code Section 125 and/or Code Section 132(f)(4).

 

For Plan Years prior to January 1, 1997, in
determining the Compensation of a Participant for purposes of determining
whether he or she is a Highly Compensated Employee (as defined in Section
11.3(a)(3)), the family aggregation rules of former Code Section 414(q)(6)
shall apply, except that in applying such rules, the term “family” shall
include

 

6

 

only the Eligible Spouse of the Participant
and any lineal descendants of the Participant who have not attained age 19
before the close of the year.

 

1.16         Disability Retirement Date

 

Disability Retirement Date is defined in
Section 7.3.

 

1.17         Early Retirement Date and Earliest
Retirement Date

 

Early Retirement Date shall have the meaning
stated in subsections (a) through (d) below, whichever is applicable to a
particular Participant. Earliest Retirement Date means the earliest date that
would satisfy all of the conditions of the definition of Early Retirement Date
that is applicable to the Participant.

 

(a)                                  Except as otherwise
provided in subsections (b), (c) and (d), a Participant may retire prior to his
or her Normal Retirement Date on an Early Retirement Date which, subject to his
or her election, may be the first day of any month coincident with or following
the latest of:

 

(1)                                  the Participant’s
55th birthday,

 

(2)                                  the date on which the
Participant completes 10 Years of Vesting Service, or

 

(3)                                  the date of the
Participant’s Termination of Employment.

 

(b)                                 A Grossmont
Participant may retire prior to his or her Normal Retirement Date on an Early
Retirement Date which, subject to his or her election, may be the first day of
any month coincident with or following the date of his or her Termination of
Employment on or after reaching age 55 and completing three Years of Vesting
Service.

 

(c)                                  A Sumitomo
Participant may retire prior to his or her Normal Retirement Date on an Early
Retirement Date, which subject to his or her election, may be the first day of
any month coincident with or following the date of his or her Termination of
Employment on or after reaching age 55 and completing five Years of Vesting
Service.

 

(d)                                 A Commerce Participant
may retire prior to his or her Normal Retirement Date and receive his or her
entire Accrued Benefit on an Early Retirement Date which, subject to his or her
election, may be the first day of any month coincident with or following the
date of his or her Termination of Employment on or after reaching age 55 and
completing three Years of Vesting Service.

 

1.18         Earnings

 

(a)           Earnings
for a Participant for a Plan Year includes the sum of:

 

(1)                                  the Participant’s
wages, salaries, fees for professional service and other amounts received
(without regard to whether or not an amount is paid in cash) for personal
services actually rendered in the course of employment

 

7

 

with the Company to the extent that the
amounts are includible in gross income (including, but not limited to,
commissions paid salesmen, compensation for services on insurance premiums,
tips, and bonuses);

 

(2)                                  the Participant’s
“elective deferrals” (as defined in Code Section 402(g)) to a plan with a Code
Section 401(k) cash or deferral arrangement maintained by an Affiliate or
Subsidiary;

 

(3)                                  the Participant’s
pre-tax contributions to any health or welfare benefit program under Code
Section 125 or any qualified public transit and parking program under Code
Section 132(f)(4);

 

(4)                                  effective on and
after January 1, 2001, compensation that the Participant elects to defer to a
nonqualified deferred compensation plan maintained by an Affiliate or
Subsidiary, but under no circumstances shall the amount of Earnings that is
recognized under this paragraph (a)(4) cause the Participant’s overall Earnings
for the Plan Year to increase by more than 15% of the amount of Earnings
determined without reference to this paragraph (a)(4), nor shall it cause
overall Earnings to exceed the applicable limitation under subsection (c)
below; and

 

(5)                                  for each month in
which a Participant is entitled to credit for Qualified Military Service, the
Participant will be considered, for purposes of determining the Accrued Benefit
under this Plan, to have Earnings equal to the Participant’s average monthly Earnings
during the 12 months (or, if less, the number of months of prior employment
with the Employer) immediately preceding his or her period of Qualified
Military Service.

 

(b)           The
term “Earnings” does not include the types of remuneration described in the following
paragraphs.

 

(1)                                  except to the extent
included in Earnings under clause (a)(2) or (a)(4) above,

 

(A)                              Company contributions to
a plan of deferred compensation to the extent that, before the application of
the Code Section 415 limitations to that plan, the contributions are not
includible in the gross income of the Participant for the taxable year in which
contributed; and

 

(B)                                any distributions from
a plan of deferred compensation regardless of whether such amounts are
includible in the gross income of the Participant when distributed.

 

(2)                                  amounts realized from
the exercise of a nonqualified stock option, or income realized when restricted
stock (or property) held by the Participant either becomes freely transferable
or is no longer subject to a substantial risk of forfeiture;

 

8

 

(3)                                  amounts realized by
the Participant from the sale, exchange or other disposition of stock acquired
under a qualified stock option;

 

(4)                                  except to the extent
included in Earnings pursuant to Code Section 125 or 132(f)(4) in accordance
with clause (a)(3) above,

 

(A)                              other amounts which
receive special tax benefits, such as premiums for group term life insurance
(without regard to whether the premiums are includible in the gross income of
the Participant); and

 

(B)                                reimbursements or other
expense allowances, fringe benefits (cash and non-cash), moving expenses,
welfare benefits, and any lump sum amounts paid at Termination of Employment
(on account of such termination), such as severance pay, vacation and sick
leave cash-outs; and

 

(5)                                  fees for service as a
member of a board of directors, if any, paid to “Highly Compensated Employees”
(as defined in Section 11.3(a)(3)).

 

(c)           Limitations
on Earnings under Code Section 401(a)(17).

 

For each Plan Year, the amount of annual
Earnings that shall be taken into account for purposes of determining benefit
accruals under the Plan shall not exceed the limit that is in effect for that
Plan Year under Code Section 401(a)(17), after taking into account any
amendment of that Code Section that is enacted into law and any adjustment to
that limit that is authorized by the Secretary of the Treasury for the calendar
year that coincides with that Plan Year (for example, the limit shall be $170,000
for Plan Year 2001 and $200,000 for Plan Year 2002).

 

If a period over which Earnings is determined
under the Plan (determination period) is less than 12 months, the otherwise
applicable dollar limit under Code Section 401(a)(17) for that calendar year will
be multiplied by a fraction, the numerator of which is the number of months in
the determination period, and the denominator of which is 12, determined in a
manner consistent with Treas. Reg. Section 1.401(a)(17)-1(b)(3).

 

1.19         Eligibility Computation Period

 

Eligibility Computation Period, for purposes
of determining under Section 2.1(b) whether an Employee has accrued 1,000 Hours
of Service during such a period in order to become eligible to participate in
the Plan, means the period of 12 consecutive months commencing on the
Employment Date and ending on the first anniversary of such date, or, if 1,000
Hours of Service are not accrued during that 12-month period, the Eligibility
Computation Period shall be the 12-month period commencing on the first day of
each Plan Year that occurs after the Employment Date.

 

9

 

1.20         Eligible Employee

 

Subject to the exclusions stated in the
following paragraph, Eligible Employee means an Employee of the Company.

 

“Eligible Employee” does not include:
(a) an Employee of an Affiliate or Subsidiary that is not a Company that has
adopted the Plan and is participating in the Plan; (b) an Employee who is
covered under a collective bargaining agreement where retirement benefits were
the subject of good faith bargaining which does not provide for retirement
benefits under this Plan; (c) a person who performs services for a Company but
is compensated for such services by means of the payroll of a third party
employee leasing organization; (d) any “leased employee” within the meaning of
Code Section 414(n)(2), or (e) a person who is not treated by the Participating
Company as an employee for payroll tax purposes, whether or not such person is
subsequently determined by a government agency, by the conclusion or settlement
of threatened or pending litigation, or otherwise to be (or to have been) a
common law employee of the Company. In the event of any determination by any
court, governmental agency or other party that a person excluded under clause
“(c)”, “(d)” or “(e)” should be treated as a common-law employee of the Company
for payroll tax purposes, the individual shall not be treated as an Eligible
Employee unless and until the date on which the individual is first
recharacterized as an Employee for payroll tax purposes on the payroll system
of the Company, and not as of any retroactive effective date of such
recharacterization.

 

1.21         Eligible Spouse

 

Eligible Spouse means the legal spouse of the
Participant at the time the Participant commences his or her Retirement Income
under the Plan (or the Participant’s date of death, if earlier), or, if
applicable, a former spouse who is designated as the alternate payee with the
right to be treated as the spouse Beneficiary of a Participant according to the
terms of a Qualified Domestic Relations Order.

 

1.22         Eligibility Computation Period

 

Eligibility Computation Period means a
12-consecutive-month period beginning on an Employee’s Employment Date.
However, if such Employee fails to complete at least 1,000 Hours of Service
during his or her initial 12-consecutive-month period, the Eligibility
Computation Period becomes the Plan Year commencing with the Plan Year in which
such initial period ends.

 

1.23         Employee

 

Employee means any person who is employed as
a common law employee by any Affiliate or Subsidiary, and any “leased employee”
within the meaning of Code Section 414(n)(2); provided, however, if leased
employees constitute 20% or less of the Employer’s non-highly compensated work
force, the term “Employee” shall not include a leased employee who is covered
by a plan maintained by the leasing organization which meets the requirements
of Code Section 414(n)(5).

 

10

 

1.24         Employer

 

Employer means, collectively, any and all
companies that satisfy the definition of an “Affiliate or Subsidiary” (as
defined in Section 1.5). All Employees of the Employer will be treated as
employed by a single employing company for purposes of applying the requirements
for qualification of the Plan under Code Section 401(a).

 

1.25         Employment Date

 

Employment Date means the date on which an
Employee first performs an Hour of Service for any member of the Employer.

 

1.26         ERISA

 

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

 

1.27         Grossmont Participant

 

“Grossmont Participant” means a participant
in the Grossmont Plan who became a Participant in this Plan effective January
1, 1998 as a result of the merger of the Grossmont Plan into this Plan.

 

Based upon his or her status in the Grossmont
Plan on December 31, 1997, and based on whether or not the Grossmont
Participant becomes an Eligible Employee on January 1, 1998, a Grossmont
Participant shall, as of January 1, 1998, be either an Active Participant, an
Inactive Participant, a Terminated Vested Participant, a Disabled Participant
or a Retired Participant in this Plan (as those terms are defined in Section
1.36).

 

1.28         Grossmont Plan

 

“Grossmont Plan” means the Grossmont Bank
Restated Defined Benefit Pension Plan and Trust, restated effective January 1,
1996, according to the terms and conditions of that plan which existed as of
the close of business on December 31, 1997 when assets and benefits for
Grossmont Participants were transferred to and merged into this Plan.

 

1.29         Hour of Service

 

Hour of Service means:

 

(a)                                  each hour for which
an Employee is paid, or entitled to payment, for the performance of duties for
the Company;

 

(b)                                 each hour for which an
Employee is paid, or entitled to payment, by the Company on account of a period
of time during which no duties are performed (whether or not the employment
relationship has terminated) due to vacation, holiday, illness, incapacity
(including disability), layoff, jury duty, military duty or leave of absence;
provided, however, that an Employee will not be credited with more than 501
Hours of Service under this sentence for any continuous period during which

 

11

 

he or she performs no duties for the Company.
Notwithstanding the preceding provisions of this paragraph, no credit will be
given:

 

(1)                                  for an Hour of
Service for which the individual is directly or indirectly paid, or entitled to
payment, on account of a period during which no duties are performed if such
payment is made or due under a plan maintained solely for the purpose of
complying with applicable workers’ compensation, unemployment compensation or
disability insurance laws (except as specifically provided for in Article 7);
or

 

(2)                                  for an Hour of
Service for which a payment is made which solely reimburses the individual for
medical or medically related expenses incurred;

 

(c)                                  each hour not
otherwise credited under the Plan for which back pay, irrespective of
mitigation of damages, is either awarded or agreed to by the Company.

 

(d)                                 Effective December 12,
1994, Qualified Military Service shall be credited for purposes of eligibility
under Section 2.1(b) and for Years of Vesting Service. For a Participant
returning from Qualified Military Service on or after January 1, 2001, for
purposes of satisfying the 1,000 Hours of Service requirement of Section 2.1(b)
during an Eligibility Computation Period, and for purposes of determining Years
of Vesting Service, a Participant will receive 190 Hours of Service for each
full or partial month during which the Participant is engaged in Qualified
Military Service.

 

(e)                                  Hours of Service will
be credited for employment as an Employee of any Affiliate or Subsidiary.

 

(f)                                    Solely for purposes
of determining whether a Break in Service has occurred, an individual who is
absent from work will receive credit for the Hours of Service which would have
been credited to the individual but for such absence if the absence is (1)
because of the pregnancy of the individual, (2) because of the birth of a child
of the individual, (3) because of the placement of a child with the individual
in connection with the adoption of such child by such individual, (4) for
purposes of caring for such child for a period beginning immediately following
such birth or placement, or (5) for family or medical leave required to be
provided under the Family and Medical Leave Act of 1993. Where such hours
cannot be determined, eight Hours of Service per day of such absence will be
used. The Hours of Service credited under this paragraph will be credited in
the computation period in which the absence begins if the crediting is
necessary to prevent a Break in Service in that period. In all other cases,
such hours will be credited in the following computation period.

 

(g)                                 The foregoing
notwithstanding, Participants whose pay is solely on a commission basis will be
credited with Hours of Service as follows:

 

(1)                                  If the Participant’s
Earnings for a Plan Year are at least 750 multiplied by the lowest hourly rate
of compensation payable to employees in the same

 

12

 

job classification as the Participant, then
the Participant will be credited with 1,000 Hours of Service for that Plan
Year.

 

(2)                                  If the Participant’s
Earnings for a Plan Year are less than 750 multiplied by the lowest hourly rate
of compensation payable to employees in the same job classification as the
Participant, then the Participant will not be credited with any Hours of
Service for that Plan Year.

 

(h)                                 The crediting of Hours
of Service under this Plan will be performed in accordance with applicable
provisions of the Department of Labor Regulations 2530.200b-2 and 2530.200b-3
(including, by way of example, the equivalency rules which may be applied in
the event that a Participant’s actual Hours of Service cannot be determined),
and such regulations are incorporated by reference herein.

 

1.30         Investment Manager

 

Investment Manager shall have the meaning
stated in Section 3(38) of ERISA.

 

1.31         Late Retirement Date

 

If a Participant continues in the service of
the Company or any Affiliate or Subsidiary beyond his or her Normal Retirement
Date, then his or her Late Retirement Date will be the first day of any month
coincident with or following the date of the Participant’s Termination of
Employment. A Participant’s Late Retirement Date will not be later than the
required beginning date described in Section 5.11(c) even if his or her
employment continues after such date.

 

1.32         Nonvested Former Participant

 

Nonvested Former Participant means a prior
Participant who has incurred a Termination of Employment and who does not have
a vested interest in his or her Accrued Benefit in accordance with Section 6.1.

 

Nonvested Former Participant also means a
prior participant in the Grossmont Plan who has incurred a Termination of
Employment under that plan and who did not have a vested interest in that plan
on December 31, 1997.

 

Nonvested Former Participant also means a
prior participant in the Sumitomo Plan who has incurred a Termination of
Employment under that plan and who did not have a vested interest in that plan
on September 30, 1998.

 

Nonvested Former Participant also means a
prior participant in the Commerce Plan who has incurred a Termination of
Employment under that plan and who did not have a vested interest in that plan
on December 31, 1998.

 

1.33         Normal Retirement Age

 

If the Participant’s Participation Date is on
or after July 1, 1994, his or her “Normal Retirement Age” is the later of: (a)
his or her 65th birthday, or (b) the earlier of: (1) the date the Participant
completes five Years of Vesting Service, or (2) the fifth anniversary of his or
her Participation Date provided the Participant is an Employee on or after the 

 

13

 

later of such date or his or her 65th
birthday and earns at least one Year of Vesting Service after any Break in
Service. If the Participant first participated in the Plan before July 1, 1994,
the Participant’s Normal Retirement Age is 65.

 

Notwithstanding the foregoing, the Normal
Retirement Age for a Commerce Participant is his or her 65th birthday.

 

1.34         Normal Retirement Date

 

A Participant’s Normal Retirement Date will
be the first day of the month coincident with or next following the date of
attaining his or her Normal Retirement Age.

 

1.35         Old Plan Account

 

Old Plan Account is defined in Section 4.7.

 

1.36         Participant

 

Participant means an Active Participant,
Inactive Participant, Terminated Vested Participant, Disabled Participant, or
Retired Participant, as defined below:

 

(a)                                  “Active Participant”
means an Eligible Employee who has met the requirements for participation
described in Article 2.

 

(b)                                 “Inactive Participant”
means a prior Active Participant who is on an Authorized Period of Absence, or
who is employed by an Affiliate or Subsidiary other than a Company that is then
a participating Company in the Plan, or who is employed by the Company but is
not an Eligible Employee.

 

(c)                                  “Terminated Vested
Participant” means a former Eligible Employee who has incurred a Termination of
Employment, who retains a vested interest in accordance with Section 6.1, and
who is not currently receiving benefit payments under the Plan.

 

(d)                                 “Disabled Participant”
means a former Active Participant who has a total and permanent disability as
determined under Article 7.

 

(e)                                  “Retired Participant”
means a former Eligible Employee who is receiving benefit payments under the
Plan.

 

1.37         Participation Date

 

Participation Date means the date as of which
an Eligible Employee becomes a Participant in the Plan, in accordance with the
terms stated in Article 2.

 

1.38         Plan

 

Plan means the Zions Bancorporation Pension
Plan.

 

14

 

1.39         Plan Year

 

Plan Year means a calendar year.

 

1.40         Qualified Domestic Relations Order

 

The term “Qualified Domestic Relations Order”
or “QDRO” means a judgment, decree or order of a court with authority under
state law for domestic relations matters, which is issued for the benefit of a
named “alternate payee” in connection with divorce, marital property rights or
alimony, and which complies with all requirements of Code Section 414(p). As
further described in Section 5.13, a QDRO may expressly provide either for (a)
a division of a Participant’s Accrued Benefit between the Participant and an
alternate payee, (b) a distribution to an alternate payee, (c) the right of an
alternate payee to elect to receive one or more distributions on or after a
specified date or occurrence of a specified event, or (d) the designation of an
alternate payee as beneficiary for some or all of the Participant’s benefit
upon the Participant’s death. A QDRO shall identify (i) the name and last known
mailing address of the Participant and of each alternate payee (who shall be
either a Participant’s spouse, former spouse, child or other dependent); (ii)
the amount or percentage of the Participant’s benefit to be paid by the Plan to
each alternate payee, or the manner in which such percentage is to be determined;
(iii) the number of payments or period to which such order applies; and (iv)
the name of each benefit plan of the Employer to which it applies. A domestic
relations order shall not be treated as an enforceable QDRO under this Plan
unless and until the Administrative Committee (or a person or administrator
designated by that Committee) has determined that the domestic relations order
conforms to the requirements of Code Section 414(p), describes benefits that
are consistent with the terms of this Plan, and satisfies the requirements of
any QDRO guidelines maintained by the Administrative Committee or its designee.

 

1.41         Qualified Military Service

 

“Qualified Military Service” shall have the
meaning stated in Code Section 414(u)(5), and shall refer to an individual’s
service in the uniformed services of the United States to the extent the
individual, on or after December 12, 1994, is entitled to re-employment rights
(sometimes referred to as “USERRA” rights) and returns to employment in a
timely manner following such service according to chapter 43 of title 38 of the
United Stated Code.

 

1.42         Retirement Date

 

Retirement Date means the date the
Participant’s benefits commence. Benefits may begin at the Participant’s Early,
Normal, Late or Disability Retirement Date.

 

1.43         Single Life Annuity

 

Single Life Annuity means an annuity
providing level monthly payments over the life of the annuitant.

 

1.44         Sumitomo Participant

 

“Sumitomo Participant” means:

 

15

 

(a)                                  A Participant in the
Sumitomo Plan who became a Participant in this Plan on October 1, 1998 in
connection with the October 31, 1998 merger of the Sumitomo Plan into this
Plan, or

 

(b)                                 An employee of
Sumitomo Bank of California on September 30, 1998 who becomes eligible to
participate in this Plan on or before December 31, 1999.

 

Based upon his or her status in the Sumitomo
Plan on September 30, 1998, and based upon whether or not he or she became an
Eligible Employee on October 1, 1998, a Sumitomo Participant described in
subsection (a) shall be deemed an Active Participant, an Inactive Participant,
a Terminated Vested Participant, a Disabled Participant or a Retired
Participant in this Plan, as defined in Section 1.36, on October 1, 1998.

 

1.45         Sumitomo Plan

 

“Sumitomo Plan” means the Sumitomo Bank of
California Pension Plan as in effect immediately prior to November 1, 1998.

 

1.46         Termination of Employment

 

Termination of Employment means cessation of
employment with the Company or any member of the Employer due to:

 

(a)                                  voluntary or
involuntary termination or separation of employment, or

 

(b)                                 failure to return to
work for at least 30 days upon the expiration of any Authorized Period of
Absence from the Company or any member of the Employer, in which event cessation
of active work will be deemed to have occurred at the time such Authorized
Period of Absence expired.

 

Transfer of employment, without interruption,
between members of the Employer will not be deemed a Termination of Employment.

 

1.47         Trust Agreement

 

Trust Agreement means the agreement between
the Company and the Trustee.

 

1.48         Trust Fund

 

Trust Fund means all money or property held
by the Trustee pursuant to the Trust Agreement.

 

1.49         Trustee

 

Trustee means the trustee appointed by the
Board of Directors of the Company and named as such in the Trust Agreement.

 

1.50         Year of Vesting Service

 

Year of Vesting Service means a calendar year
after December 31, 1988 during which an Employee completes 1,000 or more Hours
of Service except as follows:

 

16

 

(a)                                  For Plan Years from
December 31, 1994 to December 31, 1997, an Employee shall be credited with a
partial Year of Vesting Service (measured in calendar months) in a Plan Year in
which the Employee completes less than 1,000 Hours of Service but in which the
Employee has a Benefit Service Date or in which the Employee retires, dies, or
incurs a Termination of Employment if the Employee completes 83.33 Hours of
Service multiplied by the number of calendar months during such Plan Year in
which the Employee completes at least one Hour of Service. The Employee will be
credited with months of Service equal to the number of calendar months during
the Plan Year in which the Employee completes at least one Hour of Service.
Twelve months of Service will equal a Year of Vesting Service.

 

(b)                                 Year of Vesting
Service also include Years of Vesting Service earned before January 1, 1989
under the terms of the Plan in effect as of December 31, 1988.

 

(c)                                  A Participant shall
be credited in the 1989 calendar year with 190 Hours of Service for each month
in which the Participant earned at least one Hour of Service in his or her
partial Year of Vesting Service (if any) ending on December 31, 1988.

 

(d)                                 The foregoing
notwithstanding, a Participant must be at least age 18 before he or she can
earn a Year of Vesting Service.

 

(e)                                  The foregoing
notwithstanding, if a Participant who has no vested interest in the Plan incurs
a Break in Service, Years of Vesting Service will not include:

 

(1)           service
prior to a Break in Service which is not followed by a Year of Vesting Service,
and

 

(2)                                  service prior to five
or more consecutive one year Breaks in Service if the number of consecutive one
year Breaks in Service equals or exceeds the number of prior Years of Vesting
Service.

 

This subsection (e) shall not apply to a
Sumitomo Participant who failed to earn 501 hours of service under the Sumitomo
Plan in any Plan Year ending prior to November 1, 1998, or to a nonvested
former participant in the Sumitomo Plan who incurred a Termination of
Employment under that plan on or prior to September 30, 1998.

 

(f)                                    Years of Vesting
Service earned by Grossmont Participants prior to December 31, 1997 shall be
calculated as defined under the provisions of the Grossmont Plan.

 

(g)                                 Special Rules
Applicable to Sumitomo Participants:

 

(1)                                  Years of Vesting
Service earned by a Sumitomo Participant prior to November 1, 1998 shall be
calculated as defined under the provisions of the Sumitomo Plan.

 

17

 

(2)                                  A Sumitomo
Participant who earns 1,000 or more Hours of Service in the Plan Year beginning
on January 1, 1998 and ending on December 31, 1998, shall be credited with one
Year of Vesting Service.

 

(3)                                  After December 31,
1998, a Sumitomo Participant shall be credited with one Year of Vesting Service
for each calendar year in which he or she completes 1,000 or more Hours of
Service.

 

(4)                                  In no event will a
Sumitomo Participant’s Years of Vesting Service be less than what the Sumitomo
Participant would have earned under the Sumitomo Plan through his or her
anniversary year ending in the calendar year ending on December 31, 2000.

 

(h)                                 Years of Vesting
Service earned by Commerce Participants prior to January 1, 1999 shall be credited
as determined under the provisions of the Commerce Plan.

 

(i)                                     Effective April 1,
1997, for a former employee of an acquired company listed on Appendix IV who
becomes an Eligible Employee as of the Acquisition Effective Date listed in
that Appendix, the Eligible Employee’s prior service as an employee of the
acquired company (or of any affiliate or subsidiary of the acquired company)
shall be credited for purposes of determining Years of Vesting Service under
this Plan.

 

1.51         Zions

 

Zions means Zions Bancorporation, which is
the sponsor of this Plan and the ultimate parent corporation of the Employer.

 

18

 

Article 2

 

PARTICIPATION

 

2.1           Participation Date

 

Participation Date means the date a
Participant first becomes an Active Participant, provided that the
Participation Date of a Nonvested Former Participant who is reinstated under
Section 2.2 after five or more consecutive one year Breaks in Service shall be
the date of reinstatement.

 

(a)                                  An Eligible Employee
who was an Active Participant in the Plan on March 31, 1997 will continue to be
an Active Participant on April 1, 1997.

 

(b)                                 Except as provided in
subsections (c) through (f) below, any other Eligible Employee will become an
Active Participant in the Plan on the January 1 or July 1 coinciding with or
next following the later of (1) the date on which the Employee completes an
Eligibility Computation Period during which he or she completes at least 1,000
Hours of Service, or (2) the Employee’s 21st birthday.

 

(c)                                  Effective April 1,
1997, in the case of an Employee who has a period of employment as an Employee
of an Affiliate or Subsidiary during which he or she is not an Eligible
Employee (either because of the individual’s employment status or because the
employing company is not a participating Company), which is followed (without a
Break in Service) by a transition to Eligible Employee status (either because
of a change of individual employment status or because the employing company
has become a participating Company in this Plan), then the Employee’s Hours of
Service prior to becoming an Eligible Employee shall be credited toward meeting
the eligibility service requirement of subsection (b) above, and the Eligible
Employee will become an Active Participant on the first day of the month
coinciding with or next following the later of the dates referred to in clause
(1) and (2) of subsection (b) above.

 

(d)                                 An Eligible Employee
who was an active participant in the Grossmont Plan on December 31, 1997 shall
become a Participant in this Plan on January 1, 1998 (or, if later, the date
(if any) on which he or she becomes an Eligible Employee).

 

(e)                                  An Eligible Employee
who was an Active Participant in the Sumitomo Plan on September 30, 1998, shall
become a Participant in this Plan effective October 1, 1998. Effective on or
before December 31, 1999, any other employee of Sumitomo Bank of California on
September 30, 1998 shall become a Participant in this Plan on the first of the
month coinciding with or next following the later of (1) the date on which the
Employee completes an Eligibility Computation Period during which he or she
completes at least 1,000 Hours of Service, or (2) the Employee’s 21st
birthday.

 

(f)                                    An Eligible
Employee who was an Active Participant in the Commerce Plan on December 31,
1998, shall become a Participant in this Plan effective January 1, 1999.

 

19

 

(g)                                 Effective April 1,
1997, for a former employee of an acquired company listed on Appendix IV who
becomes an Eligible Employee as of the Acquisition Effective Date listed in
that Appendix, the Eligible Employee’s prior service as an employee of the
acquired company (or of any affiliate or subsidiary of the acquired company)
shall be credited for purposes of eligibility to become an Active Participant
in the Plan. If such Eligible Employee had accrued at least 1,000 hours of
service (according to the records maintained by the acquired company) in the
12-month period ending on the Acquisition Effective Date (and had attained age
21 on or before such date), the Eligible Employee shall become an Active
Participant in this Plan as of the first day of the calendar month coinciding
with or first following the Acquisition Effective Date. Otherwise, the Participation
Date shall be the first day of the calendar month coinciding with or first
following the date on which the sum of the pre-acquisition service and
post-acquisition Hours of Service satisfy the Eligibility Computation Period
requirements of subsection (b) above (and the Eligible Employee has attained at
least age 21).

 

2.2           Reinstatement of Active
Participation

 

A Terminated Vested Participant, a Retired
Participant, an Inactive Participant, or a Nonvested Former Participant who
again becomes an Eligible Employee or who returns from an Authorized Period of
Absence will be reinstated as an Active Participant on the day he or she is
reinstated as an Eligible Employee or returns from such Authorized Period of
Absence.

 

20

 

Article 3

 

ESTABLISHMENT
AND MAINTENANCE OF CASH BALANCE ACCOUNT

 

Except as otherwise stated,
this Article shall be effective as of April 1, 1997.

 

3.1           Initial Establishment of Cash
Balance Account

 

(a)                                  A Cash Balance
Account will be established for each Participant on the date he or she first
becomes a Participant. The initial balance in the Cash Balance Account will be
zero. With respect to each person who is an Active Participant or a Disabled
Participant on March 31, 1997, a Cash Balance Account will be established as of
January 1, 1997. The initial balance in the Participant’s Cash Balance Account
will equal the present value of the Active or Disabled Participant’s accrued
benefit under the Plan as of December 31, 1996, expressed in the form of a
Single Life Annuity. The present value will be determined using a 7% interest
rate and the Participant’s age on December 31, 1996, and the Applicable
Mortality Table described in Section 1.4(b)(1) which is in effect as of such
date.

 

(b)                                 With respect to each
Inactive Participant and Terminated Vested Participant on March 31, 1997 who
becomes an Active Participant on or after April 1, 1997 and each Nonvested
Former Participant on March 31, 1997 who becomes an Active Participant and does
not lose his or her prior vested interest in accordance with Section 1.50(e), a
Cash Balance Account will be established on the date he or she again becomes an
Active Participant. The initial balance in the Participant’s Cash Balance
Account will equal the present value of the Participant’s accrued benefit under
the Plan as of December 31, 1996, expressed in the form of a Single Life
Annuity. The present value will be determined using a 7% interest rate, the
Participant’s age on the date he or she again becomes an Active Participant,
and the Applicable Mortality Table described in Section 1.4(b)(1) which is in
effect as of such date.

 

(c)                                  A Cash Balance
Account will be established for each Grossmont Participant who becomes an
Active Participant in this Plan on January 1, 1998. The initial balance in the
Grossmont Participant’s Cash Balance Account will equal the present value of
his or her accrued benefit under the Grossmont Plan as of December 31, 1997,
expressed in the form of a Single Life Annuity. The present value will be
determined using a 7% interest rate, the Participant’s age on December 31,
1997, and the Applicable Mortality Table described in Section 1.4(b)(1) which
is in effect as of such date.

 

(d)                                 With respect to each
Inactive Participant and Terminated Vested Participant (as defined in Sections
1.27 and 1.36 of this Plan) in the Grossmont Plan on December 31, 1997 who
becomes an Active Participant in this Plan or after January 1, 1998 and each
Nonvested Former Participant in the Grossmont Plan on December 31, 1997 who
becomes an Active Participant in this Plan and does not lose his or her prior
vested interest in accordance with Section 1.50, a Cash Balance Account will be
established on the date he or she becomes an Active Participant in this Plan.
The initial balance in the Grossmont Participant’s Cash 

 

21

 

Balance Account will equal the present value
of his or her accrued benefit under the Grossmont Plan as of December 31, 1997,
expressed in the form of a Single Life Annuity. The present value will be
determined using a 7% interest rate, the Grossmont Participant’s age on the
date he or she again becomes a Participant, and the Applicable Mortality Table
described in Section 1.4(b)(1) which is in effect as of such date.

 

(e)                                  A Cash Balance
Account will be established for each Sumitomo Participant who becomes an Active
Participant in this Plan on October 1, 1998. The initial balance in the
Sumitomo Participant’s Cash Balance Account will equal the present value of his
or her accrued benefit under the Sumitomo Plan as of September 30, 1998,
expressed in the form of a Single Life Annuity. The present value will be
determined using a 7% interest rate and the Participant’s age on September 30,
1998, and the Applicable Mortality Table described in Section 1.4(b)(1) which
is in effect as of such date.

 

(f)                                    With respect to
each inactive participant and terminated vested participant in the Sumitomo
Plan on September 30, 1998 who becomes an Active Participant in this Plan after
October 1, 1998, and each nonvested former participant in the Sumitomo Plan who
becomes an Active Participant in this Plan after October 1, 1998, a Cash
Balance Account will be established on the date such Employee becomes an Active
Participant in this Plan. The initial balance in the Sumitomo Participant’s
Cash Balance Account will equal the present value of his or her accrued benefit
under the Sumitomo Plan as of September 30, 1998, expressed in the form of a
Single Life Annuity. The present value will be determined using a 7% interest
rate, the Sumitomo Participant’s age on the date he or she again becomes an
Active Participant, and the Applicable Mortality Table described in Section
1.4(b)(1) which is in effect as of such date.

 

Notwithstanding the foregoing, the initial
balance in the Cash Balance Account of a Sumitomo Participant who receives a
distribution of the actuarial equivalent of his or her full accrued benefit
from the Sumitomo Plan on or before October 31, 1998 shall be zero.

 

(g)                                 A Cash Balance Account
will be established for each Commerce Participant who becomes an Active
Participant in this Plan on January 1, 1999. The initial balance in the
Commerce Participant’s Cash Balance Account will equal the present value of his
or her accrued benefit under the Commerce Plan as of December 31, 1998,
expressed in the form of a Single Life Annuity. The present value will be
determined using the Participant’s age on December 31, 1998, and the interest
and mortality basis specified in the Commerce Bancorporation Defined Benefit
Plan (as that plan was in effect on December 31, 1998) for terminations
occurring during the 1999 plan year.

 

(h)                                 With respect to each
inactive participant and terminated vested participant in the Commerce Plan on
December 31, 1998 who becomes an Active Participant in this Plan after January
1, 1999, and each nonvested former participant in the Commerce Plan who becomes
an Active Participant in this Plan after January 1, 1999, a Cash Balance
Account will be established on the date such Employee becomes an Active
Participant in this Plan. The initial balance in the 

 

22

 

Commerce Participant’s Cash Balance Account
will equal the present value of his or her accrued benefit under the Commerce
Plan as of December 31, 1998, expressed in the form of a Single Life Annuity.
The present value will be determined using a 7% interest rate, the Commerce
Participant’s age on the date he or she again becomes an Active Participant,
and the Applicable Mortality Table described in Section 1.4(b)(1) which is in
effect as of such date.

 

Notwithstanding the foregoing, the initial
balance in the Cash Balance Account of a Commerce Participant who receives a
distribution of the actuarial equivalent of his or her full accrued benefit
from the Commerce Plan on or before December 31, 1998 shall be zero.

 

3.2           Earnings Credits

 

(a)                                  General Rule for
Earnings Credits

 

As of the last day of each Plan Year the Cash
Balance Account of each Participant who is employed on that date and who has
completed at least 1,000 Hours of Service during the Plan Year will be credited
with an amount equal to the product obtained by multiplying the Participant’s
Earnings for the Plan Year by a percentage from the following table, which
percentage is based upon the Participant’s age as of the last day of the Plan
Year:

 

	
  Attained Age

  	
   

  	
  Percentage

  	
   

  
	
  Less than 30
  years

  	
   

  	
  2.25

  	
  %

  
	
  At least 30
  years, but less than 40 years

  	
   

  	
  3.00

  	
  %

  
	
  At least 40
  years, but less than 50 years

  	
   

  	
  4.00

  	
  %

  
	
  At least 50
  years, but less than 55 years

  	
   

  	
  5.25

  	
  %

  
	
  At least 55
  years, but less than 60 years

  	
   

  	
  7.00

  	
  %

  
	
  60 or more
  years

  	
   

  	
  9.25

  	
  %

  

 

(b)                                 Acquisitions and
Reinstatements in a Year of At Least 1,000 Hours

 

Notwithstanding the foregoing, in the Plan
Year containing a Participant’s Participation Date (or date of reinstatement as
an Active Participant), where the Participation Date (or reinstatement date) is
later than January 1 of the Plan Year, but where the Participant accrues 1,000
Hours of Service for the Plan Year, then:

 

(1)                                  If the Participant
received Earnings as an Employee for the period from January 1 of such Plan
Year to the Participation Date (or reinstatement date), the Earnings Credit for
that Plan Year shall be the product of the amount determined under Section
3.2(a) times a fraction, the numerator of which is the number of completed
months of Plan participation as an Active Participant during the Plan Year, and
the denominator of which is 12 (or, if less, the number of months from January
1 to the date of the Participant’s Termination of Employment; and

 

(2)                                  If the Participant
did not receive Earnings as an Employee prior to his or her Participation Date
(for example, if a Participant has a right to an immediate Participation Date
upon an Acquisition Date as described in

 

23

 

Section 3.2(c), or a right to an immediate
reinstatement of Participation following a Break in Service or Period of
Authorized Absence as described in Section 2.2), then the Earnings Credit shall
be determined as described in 3.2(a) taking into account the Earnings from the
Participation Date through December 31 (or, if earlier, the date of the
Participant’s Termination of Employment, as described in Section 3.2(c)).

 

(c)                                  Acquisitions in a
Year of Less Than 1,000 Hours

 

This subsection shall apply to a Participant
who becomes a Participant in this Plan as the result of an acquisition with an
“Acquisition Effective Date” (as stated in Appendix IV) other than January 1 of
a Plan Year, and who fails to complete 1,000 Hours of Service in the Plan Year
containing the Acquisition Effective Date. Such a Participant shall be entitled
to an Earnings Credit for such Plan Year, if such Participant’s Hours of
Service earned following the Acquisition Effective Date, when annualized, equal
or exceed 1,000. The annualized hours shall be the product of the Participant’s
actual Hours of Service times a fraction, the numerator of which is 12 and the
denominator of which is the number of completed months as an Active Participant
during the said Plan Year. The Earnings Credit for such Plan Year shall be as
stated in Section 3.2(b)(2). For this purpose, Earnings will not include
amounts earned prior to the Acquisition Effective Date.

 

(d)                                 Earnings Credit If
Employment Terminates Prior to Year End

 

Subject to the terms of subsection (e), the
Cash Balance Account of a Participant who is not an Employee on the last day of
the Plan Year but who has completed at least 1,000 Hours of Service during the
Plan Year will be credited as of the last day of the Plan Year or, if earlier,
as of the date on which the Participant’s benefit is paid or commences to be
paid, with an amount calculated in the manner described in the applicable
subsection of this Section 3.2, but based upon the Participant’s Earnings for
the Plan Year and the age of the Participant as of the date on which he or she
incurs a Termination of Employment.

 

(e)                                  Terminations of
Employment in Plan Year 2000

 

Effective January 1, 2000, in the case of a
Participant who had a Termination of Service for any reason between January 1,
2000 and December 31, 2000, the Participant shall be entitled to an Earnings
Credit for the 2000 Plan Year if the Hours of Service he or she accrued prior
to the Termination of Employment, when annualized, equal or exceed 1,000. The
annualized hours shall be the product of the Participant’s actual Hours of
Service times a fraction, the numerator of which is 12 and the denominator of
which is the number of completed months as an Employee during the said Plan
Year.

 

3.3           Interest Credits

 

(a)                                  General Rule for
Quarterly Interest Crediting

 

For calendar quarters commencing on and after
April 1, 1997, as of the last day of each calendar quarter, the Cash Balance
Account of each Participant who has a 

 

24

 

Cash Balance Account on that date will be
credited with interest on the balance in the account as of the first day of the
Plan Year. Interest will be credited at the rate of 25% of the annual rate of
interest on 30-year Treasury securities for November of the previous Plan Year.
If a Participant’s benefit commences prior to the end of a calendar quarter, no
interest will be credited for the quarter.

 

(b)                                 If An Account Balance
Is Established During a Plan Year

 

Notwithstanding the prior paragraph, the
terms of this subsection shall apply to a Participant who, on a date subsequent
to April 1, 1997, has a right to have a Cash Balance Account established during
the course of a Plan Year with an opening balance greater than zero, either in
the case of a reinstatement of Active Participant status as described in
Section 3.1(b) or 3.5(a), or in the case of an initial Participation Date of a
former employee of an acquired company described in Section 3.1(d), 3.1(e),
3.1(f) or 3.1(h). In such a case, the Participant’s Cash Balance Account shall
be credited with interest during the remainder of such a Plan Year (subject to
the terms of Section 3.4, if applicable), as follows.

 

(1)                                  As of the last day of
the calendar quarter in which the Cash Balance Account is established, the
interest for such initial calendar quarter shall be the product of the opening
balance of the Cash Balance Account, times 25% of the annual rate of interest
(as stated subsection (a) above), times a fraction, the numerator of which is
the number of complete calendar months from the effective date of the
establishment of the Cash Balance Account to the end of the calendar quarter,
and the denominator of which is three.

 

(2)                                  In any subsequent calendar
quarter during the same Plan Year, interest shall be credited as stated in
Section 3.1(a), except that the principal amount shall be the opening balance
of the Cash Balance Account rather than the balance as of January 1 of the Plan
Year.

 

3.4           Maintenance of Account after
Termination of Employment until Benefit Commencement

 

(a)                                  After Termination of
Employment

 

After Termination of Employment, a
Participant’s Cash Balance Account will continue to be maintained and credited
with interest pursuant to Section 3.3, until the Participant’s benefit
commences to be paid or is deemed to be paid under Section 6.3(b).

 

(b)                                 If Re-Employed with an
Existing Cash Balance Account Prior to Benefit Commencement

 

This subsection shall apply to a Terminated
Vested Participant who (i) is re-employed as an Eligible Employee of the
Company, (ii) is reinstated to Active Participant status as of such
re-employment date according to Section 2.2, and (iii) has an existing Cash
Balance Account. In such a case, on and after the date of reinstatement of
Active Participant status, the Cash Balance Account will continue to be
credited with interest on a quarterly basis, and the Active 

 

25

 

Participant shall have a right to receive
Earnings Credits to the extent provided in Section 3.2(b).

 

3.5           Establishment of New Account if
Re-employed After Benefit Commencement

 

(a)                                  If a Nonvested Former
Participant’s Cash Balance Account has ceased to be maintained due to the
deemed zero-dollar “cash-out” distribution (under Section 6.3(b)) of his or her
entire interest under the Plan, he or she becomes an Active Participant prior
to incurring five consecutive Breaks in Service, and he or she completes a Year
of Vesting Service following the date of re-employment, then, as of the date of
becoming an Active Participant (but contingent upon satisfying the said Year of
Service requirement), the Participant’s Cash Balance Account will be restored
to the balance in the Cash Balance Account as of the previous Termination of
Employment date, increased for interest in accordance with Section 3.3 for the
period from the Termination of Employment date to the date the Participant
again became an Active Participant.

 

(b)                                 If a Retired
Participant is re-employed by the Company and again becomes an Active
Participant in the Plan after his or her Cash Balance Account has ceased to be
maintained pursuant to Section 3.4, a new Cash Balance Account, with an initial
balance of zero, will be established as of the last day of the Plan Year in
which he or she again becomes an Active Participant. The Cash Balance Account
will be credited with earnings and interest as provided in Sections 3.2 and
3.3. Any Retirement Income which is being paid as a monthly benefit to the
Retired Participant as of the date of his or her re-employment shall not be
suspended and shall be unaffected by the resumption of employment. The benefit
accrued by the Participant from the date of re-employment to the subsequent
Termination of Employment shall be subject to an election by the Participant
with respect to the form and timing of the benefit which is separate and
independent from the election that was applicable to the benefit that commenced
on the prior Retirement Date. Moreover, to the extent that a spousal consent is
applicable to the benefit that accrued subsequent to the re-employment date,
the person with the right to consent shall be the Eligible Spouse (if any) to
whom the Participant is legally married at the time of the commencement of the benefit
that accrued subsequent to the re-employment date, and not the Eligible Spouse
as of the first Retirement Date.

 

26

 

Article 4

 

ACCRUED BENEFIT

 

4.1        Accrued
Benefit

 

A Participant’s Accrued Benefit is equal to
the largest of the benefits described in Sections 4.2, 4.3, or 4.4.
Notwithstanding anything to the contrary herein, in no event will the benefit
payable to a Participant be less than the following:

 

(a)         The Accrued Benefit of
a Participant who was a Participant in the Plan on March 31, 1997, shall not be
less than the benefit accrued by such Participant under the Plan on March 31,
1997.

 

(b)         The Accrued Benefit of
a Grossmont Participant shall not be less than the benefit accrued by such
Grossmont Participant under the Grossmont Plan on December 31, 1997.

 

(c)         The Accrued Benefit of a Sumitomo
Participant shall not be less than the benefit accrued by such Sumitomo
Participant under the terms of the Sumitomo Plan (as in effect on September 30,
1998) with benefit accruals based on the earlier of the Participant’s
Termination of Employment or December 31, 1999.

 

(d)         The Accrued Benefit of a Commerce
Participant shall not be less than the benefit accrued by such Commerce
Participant calculated as of December 31, 1998 under the terms of the Commerce
Plan.

 

4.2        Cash Balance Accrued Benefit

 

A Participant’s cash balance accrued benefit
is a monthly benefit in the form of a Single Life Annuity commencing on his or
her Normal Retirement Date, or the current date, if later, which is the
Actuarial Equivalent of the balance in the Participant’s Cash Balance Account
as of his or her Normal Retirement Date, or the current date, if later. For
purposes of determining a Participant’s cash balance accrued benefit:

 

(a)         The balance in the Participant’s Cash
Balance Account as of the Participant’s Normal Retirement Date, if the
Participant has not yet reached that date, will be determined by projecting the
balance in the Participant’s Cash Balance Account at the determination date to
the Participant’s Normal Retirement Date. The projection will be accomplished
by applying the interest credits specified in Section 3.3 from the
determination date (the date on which benefits are being determined) to the
Participant’s benefit commencement date (the date on which benefits commence)
and by applying the interest credit in Section 3.3 during the year of benefit
commencement for each year from the benefit commencement date to the
Participant’s Normal Retirement Date.

 

(b)         The monthly benefit in the form of a
Single Life Annuity will be determined by using the assumptions for Actuarial
Equivalence described in Section 1.4(a) and

 

27

 

the age of the Participant as of his or her
Normal Retirement Date, or the current date, if later.

 

4.3        Minimum Accrued Benefit

 

A Participant’s minimum accrued benefit is
the monthly benefit accrued by such Participant under the Plan on March 31,
1997, as defined in Section 2.2 of Appendix III.

 

4.4        Grandfathered Minimum Accrued
Benefit

 

Any Active Participant or Disabled
Participant on March 31, 1997 who, as of December 31, 1997, has attained 55
years of age and has completed 10 Years of Vesting Service is eligible to
receive a grandfathered minimum accrued benefit described in Section 2.3 of
Appendix III.

 

4.5        Accrued Benefit Attributable to
the Old Plan Account

 

The Accrued Benefit Attributable to the Old
Plan Account as of the Participant’s Normal Retirement Date, or current date if
later, will be equal to the Participant’s Old Plan Account expressed as a
monthly benefit under a Single Life Annuity commencing on his or her Normal
Retirement Date, or current date if later, using Actuarial Equivalence as
provided in Section 1.4(a).

 

The Accrued Benefit Attributable to the Old
Plan Account as of the Participant’s Early Retirement Date will be equal to the
monthly benefit determined under the foregoing paragraph and, reduced by 5/9 of
1% for each of the first 60 months by which the Early Retirement Date precedes
his or her Normal Retirement Date and by 5/18 of 1% for each of the next 60
such months.

 

4.6        Accrued
Benefit Attributable to Company
Contributions

 

The Accrued Benefit Attributable to Company
Contributions will be equal to the excess, if any, of the Accrued Benefit over
the Accrued Benefit Attributable to the Old Plan Account.

 

4.7        Old
Plan Account

 

A Participant’s Old Plan Account is his or
her individual account balance under this Plan which resulted from the transfer
of funds from a terminated plan formerly sponsored by the Company. The Old Plan
Account shall include interest from the transfer date to the earlier of the
Participant’s Retirement Date or the date on which the Participant’s Old Plan
Account is otherwise payable pursuant to the provisions of this Plan (the
determination date) as follows: The rate of interest shall be compounded
annually. For Plan Years beginning before January 1, 1988 and continuing to the
determination date, the interest rate shall be 5%. For each Plan Year beginning
on or after January 1, 1988 and continuing to the determination date, the
interest rate shall be 120% of the federal mid-term rate (as defined in Code
Section 1274) in effect on the first day of such Plan Year. For purposes of
determining the Accrued Benefit Attributable to the Old Plan Account, the Old
Plan Account shall also include interest, compounded annually, at the Actuarial
Equivalent interest rate (Section 1.4(a)) applicable to the determination date
year, for each Plan Year from the determination date to the Participant’s
Normal

 

28

 

Retirement Date. In no event can a
Participant’s Old Plan Account be withdrawn prior to Termination of Employment,
death or retirement. This section is effective January 1, 1995.

 

29

 

Article 5

 

AMOUNT OF RETIREMENT INCOME

 

5.1           Monthly Retirement Income

 

A Participant’s monthly retirement income
commencing on his or her Normal Retirement Date, Early Retirement Date, Late
Retirement Date, or Disability Retirement Date will be equal to his or her
benefit described in Section 5.2, 5.3, 5.4, or 5.5.

 

5.2           Normal Retirement Income

 

The monthly amount of retirement income
payable to a participant retiring on his or her Normal Retirement Date will be
equal to the Accrued Benefit earned to his or her Normal Retirement Date. This
amount is reduced by the Accrued Benefit Attributable to the Old Plan Account
if the Participant has previously taken a lump sum payment of the Old Plan
Account under Section 5.7(d). This Retirement Income will be subject to
adjustment depending on the Form of Retirement Income elected in accordance
with Section 5.7.

 

5.3           Early Retirement Income

 

(a)           The
Early Retirement Income amounts described in this Section 5.3 will be subject
to adjustment depending on the Form of Payment elected in accordance with
Section 5.7.

 

(b)           The
monthly amount of retirement income payable to a Participant retiring on an
Early Retirement Date is the greater of:

 

(1)                       The
Actuarial Equivalent value of the Participant’s Cash Balance Account as of the
Early Retirement Date using the assumptions for Actuarial Equivalence described
in Section 1.4(a) and the age of the Participant as of the Early Retirement
Date.

 

(2)                       The Minimum
Early Retirement Benefit as described in Article 3 of Appendix III.

 

The above amount is reduced by the Accrued
Benefit Attributable to the Old Plan Account as of the Participant’s Early
Retirement Date, as determined under Section 4.5 if the Participant has taken a
lump sum payment of the Old Plan Account under Section 5.7(d).

 

(c)           Grossmont
Participant’s minimum early retirement benefit shall be at least equal to the
Actuarial Equivalent of his or her Accrued Benefit determined as of December
31, 1997. Actuarial Equivalent shall be calculated using:

 

(1)           Interest
at a rate of 7% per annum, compounded annually, and

 

(2)           Mortality
determined in accordance with the Unisex Pension 1984 Mortality Table, set back
three years for both males and females.

 

30

 

(d)           A
Sumitomo Participant’s minimum early retirement benefit payable on an Early
Retirement Date shall be equal to the Sumitomo Participant’s Accrued Benefit
described in Section 4.1(c) multiplied by an early retirement factor from the
table below:

 

	
  Participant’s Age

  At Commencement

  	
   

  	
  Factor

  
	
  55

  	
   

  	
  .4912

  
	
  56

  	
   

  	
  .5236

  
	
  57

  	
   

  	
  .5572

  
	
  58

  	
   

  	
  .5956

  
	
  59

  	
   

  	
  .6364

  
	
  60

  	
   

  	
  .6820

  
	
  61

  	
   

  	
  .7336

  
	
  62

  	
   

  	
  .7888

  
	
  63

  	
   

  	
  .8524

  
	
  64

  	
   

  	
  .9220

  
	
  65

  	
   

  	
  1.0000

  

 

Interpolation shall be used to determine the
Factor applicable to the minimum benefit calculation of a Participant who
retires in any month other than his or her month of birth.

 

(e)           A
Commerce Participant’s early retirement benefit shall be at least equal to the
Actuarial Equivalent of his or her 
Accrued Benefit determined as of December 31, 1998 under the terms of
the Commerce Plan. For the purpose of this subsection (e) Actuarial Equivalent
for a Commerce Participant, shall be calculated using the 1984 Uniform
Pensioners Mortality Table and an interest rate equal to the lesser of 100% of
the Pension Benefit Guaranty Corporation’s immediate interest rate in effect on
the first day of the Plan Year in which the Commerce Participant retires or 4%.

 

5.4           Late Retirement Income

 

(a)           The
monthly amount of Retirement Income payable to a Participant retiring on a Late
Retirement Date will be equal to the Participant’s Accrued Benefit earned to
the Late Retirement Date. The amount determined according to the previous
sentence is reduced by the Accrued Benefit Attributable to the Old Plan Account
if the Participant has previously taken a lump sum payment of the Old Plan
Account under Section 5.7(d). This Retirement Income will be subject to
adjustment depending on the Form of Retirement Income elected in accordance
with Section 5.7.

 

(b)           The
minimum late retirement benefit of a Grossmont Participant shall be at least
equal to the Actuarial Equivalent of his or her Accrued Benefit determined as
of December 31, 1997, and taking into account his or her years of benefit
service and final average monthly earnings, as defined in the Grossmont Plan,
as of December 31, 1997. Actuarial Equivalent shall be calculated using:

 

31

 

(1)           Interest
at a rate of 7% per annum, compounded annually, and

 

(2)           Mortality
determined in accordance with the 1984 Unisex Pensioners Mortality Table, set
back three years for both males and females.

 

(c)           The
minimum late retirement benefit of a Sumitomo Participant shall never be less
than his or her Accrued Benefit determined under Section 4.1(c).

 

5.5           Disability Retirement Income

 

Disability Retirement Income is described in
Section 7.4.

 

5.6           Application for Retirement Income

 

Each Participant must notify the Committee in
writing of his or her intent to retire. Upon receipt of such notification, each
Participant will receive a written explanation of the terms and conditions of
the various Forms of Retirement Income and the financial effect of electing
each Form of Retirement Income. A Participant will have the right to elect or
revise a previously elected Form of Retirement Income at any time during his or
her Election Period.

 

A Participant’s Election Period is the 90 day
period ending on the date his or her Retirement Income is to begin. The
Committee will make Election Information available to a Participant within a
reasonable period of time prior to the date Retirement Income is to begin. In
no event will a Participant’s Election Period end prior to the 30th day next
following the day on which Election Information and the information provided in
accordance with the first paragraph of this Section 5.6 are first made
available to him.

 

For purposes of this Section, Election
Information will include:

 

(a)           a
written explanation of each form of Retirement Income and the relative
financial effect of the payment of Monthly Retirement Income in that form;

 

(b)           a
statement of the right to consider the benefit election for at least 30 days;
and

 

(c)           a
notification that Retirement Income payments will be made in the 50% Spouse Option
form (or the Life Annuity Form if the Participant is not married) unless he or
she elects otherwise during the Election Period and his or her spouse consents
to such election.

 

The Participant must elect a form of payment
in writing. An election of a form of payment other than a Spouse Option will
not be valid without the written consent of the Participant’s spouse. The
spouse’s consent must acknowledge the effect of the election and must be
witnessed by a plan representative or notary public. The Participant may change
his or her election at any time, and any number of times, during the 90 day
period ending on the date his or her Retirement Income is to begin. The
Participant may not change the form of payment without further spousal consent
unless the spouse expressly permits such changes. The requirement for spouse’s
consent will be waived if the participant establishes to the satisfaction of
the Committee that such consent cannot be

 

32

 

obtained because there is no spouse, the
spouse cannot be located or because of such other circumstances as the
Secretary of the Treasury may by regulations prescribe.

 

The election by the Participant and the
consent of the spouse must be obtained no more than 90 days prior to the
annuity starting date (as defined in the previous paragraph).

 

If the spouse of a Participant who has
elected a Spouse Option dies before Retirement Income payments begin, the
Retirement Income will be paid to the Participant in the form of the Single
Life Annuity.

 

5.7           Forms of Retirement Income

 

A Participant retiring on his or her Normal,
Early, Late, or Disability Retirement Date may elect one of the following Forms
of Retirement Income payment:

 

(a)           Spouse
Option.

 

A Spouse Option provides for a monthly
payment during the Participant’s life. After the Participant’s death, a
percentage of the Participant’s Retirement Income will be paid for life to the
Participant’s Eligible Spouse. The percentage to be paid to the Participant’s
Eligible Spouse will be 50%, 66 2/3% or 100% as elected by the Participant. The
monthly payment under the Spouse Option will be equal to the Actuarial
Equivalent of the amount payable under the Life Annuity form using the factors
from Appendix I.

 

(b)           Life
Annuity.

 

The Life Annuity form provides for a monthly
payment during the Participant’s life, with the last payment being made for the
month in which the Participant’s death occurs.

 

(c)           Lump
Sum Payment Option.

 

The Lump Sum Payment Option provides for a
single payment equal to the greater of the balance in the Participant’s Cash
Balance Account as of the Participant’s Retirement Date or the Lump Sum value
of his or her Accrued Benefit using the Actuarial Equivalent basis for lump
sums provided under Section 1.4(a). If a Participant took a lump sum payment of
his or her Old Plan Account before retirement, the Lump Sum Payment Option
shall be based on the Accrued Benefit Attributable to Company Contributions as
described in Section 4.6. If a Participant maintains an Old Plan Account on his
or her Retirement date, the lump sum shall not be less than the sum of the Old
Plan Account on the Retirement Date and the Lump Sum Payment Option amount
using the Accrued Benefit Attributable to Company Contributions as described in
Section 4.6.

 

(d)           Lump
Sum Payment of Old Plan Account Option.

 

The Lump Sum Payment of Old Plan Account
Option provides for a lump sum payment of the Participant’s Old Plan Account.
The Participant’s Accrued Benefit Attributable to Company Contributions is paid
in a Life Annuity, Spouse Option, or Lump Sum Payment Option form as elected by
the Participant. This form of

 

33

 

payment is available to a Participant only
one time, at the earlier of his or her retirement or Termination of Employment.

 

(e)           Options
Available Only to Grossmont Participants.

 

In addition to the forms described in
subsections (a) through (d) above, the following additional forms of benefit
are available only to Grossmont Participants:

 

(1)           Ten
Year Certain and Life Thereafter Option.

 

The Ten Year Certain and Life Thereafter
Option provides a reduced monthly Retirement Income commencing on the Grossmont
Participant’s Retirement Date and ceasing with the payment for the month in
which the Grossmont Participant’s death occurs. The Ten Year Certain and Life
Thereafter Option shall be the Actuarial Equivalent of a Single Life Annuity
Option. If a Grossmont Participant’s death should occur before 120 monthly
payments have been made, such payment shall continue to his or her
Beneficiary(ies) until the earlier of (a) the Beneficiary(ies’) death(s), or
(b) a total of 120 monthly Retirement Income payments to the Grossmont
Participant and his or her Beneficiary(ies) have been made.

 

If a Grossmont Participant designates joint
Beneficiaries, upon the Grossmont Participant’s death prior to the payment of
120 monthly payments, any surviving Beneficiaries shall share equally.

 

In the event that the (or all)
Beneficiary(ies) and the Grossmont Participant die prior to the payment of a
total of 120 monthly Retirement Income payments to the Grossmont Participant
and/or his or her Beneficiary(ies); the balance of such 120 monthly payments
shall be payable to the estate of the last survivor.

 

In the event the Grossmont Participant and
his or her Beneficiary(ies) die prior to the date the Grossmont Participant’s
benefits are scheduled to commence, the rights of all persons shall be the same
as if the option had not been elected.

 

(2)           Ten
Year Certain Option.

 

The Ten Year Certain Option provides a
monthly Retirement Income commencing on the Grossmont Participant’s Retirement
Date and ceasing after 120 monthly payments have been made. The Ten Year
Certain Option shall be the Actuarial Equivalent of a Single Life Annuity
Option.  If a Grossmont Participant’s
death should occur before 120 monthly payments have been made, such payment
shall continue to his or her Beneficiary(ies) until the earlier of (a) the
Beneficiary(ies’) death(s), or (b) a total of 120 monthly Retirement Income
payments to the Grossmont Participant and/or his or her Beneficiary(ies) have
been made.

 

34

 

If a Grossmont Participant designates joint
Beneficiaries, upon the Grossmont Participant’s death prior to the payment of
120 monthly payments, any surviving Beneficiaries shall share equally.

 

In the event that the (or all)
Beneficiary(ies) and the Grossmont Participant die prior to the payment of a
total of 120 monthly Retirement Income payments to the Grossmont Participant
and/or his or her Beneficiary(ies), the balance of such 120 monthly payments
shall be payable to the estate of the last survivor.

 

In the event the Grossmont Participant and
his or her Beneficiary(ies) die prior to the date the Grossmont Participant’s
benefits are scheduled to commence, the rights of all persons shall be the same
as if the option had not been elected.

 

(3)           For
the purpose of this subsection (e), Actuarial Equivalent shall be calculated
using:

 

(A)          Interest
at a rate of 7% per annum, compounded annually, and

 

(B)           Mortality
determined in accordance with the 1984 Unisex Pensioners Mortality Table, set
back three years for both males and females.

 

(4)         This subsection (e) shall only apply to
the portion of a Grossmont Participant’s Accrued Benefit earned prior to
January 1, 1998. The portion of a Grossmont Participant’s Accrued Benefit
earned on or after December 31, 1997 shall be paid in one of the forms
described in subsections (a) through (d) of this Section 5.7.

 

(5)         A Grossmont Participant’s Accrued
Benefit payable under any form described in this Section 5.7(e) shall never be
less than his or her Accrued Benefit calculated as of December 31, 1997 under
the terms of the Grossmont Plan.

 

(f)            Options
Available to Sumitomo Participants:

 

In addition to the forms described in
subsections (a) through (d), the following additional forms of benefit are
available only to Sumitomo Participants:

 

(1)           Joint
and Survivor Annuity.

 

A Sumitomo Participant may elect to have a
fraction, either 50% or 100%, of his or her Life Annuity continue after his or
her death to the Sumitomo Participant’s Beneficiary for life, if the
Beneficiary survives the Sumitomo Participant. A Joint and Survivor Annuity
payable to a Sumitomo Participant who receives a benefit under Section 4.1(c)
shall be the Actuarial Equivalent of the benefit otherwise payable as a Single
Life Annuity (taking into account whichever 50% or 100% option is elected), and
using the following Actuarial assumptions: (A) 4% interest, and (B) the 1984
Unisex Pension mortality table with a four-year setback for the age of the
Participant and no set-back for the

 

35

 

age of the Beneficiary, and (C) the
respective ages (in completed months as of the benefit commencement date) of
the Participant and Beneficiary. The Beneficiary must be irrevocably designated
before benefits commence.

 

(2)           Level
Income Option.

 

A Sumitomo Participant who retires prior to
his or her Normal Retirement Date and whose benefit is paid in the form of a
Life Annuity may elect to receive his or her benefits in a greater amount
during the period before Social Security benefits could first be paid and a
correspondingly reduced amount after such benefits first become payable, such
that the total income (including the adjusted benefit payable under the Plan
and the Social Security benefit to which the Sumitomo Participant is entitled)
shall be as nearly uniform as possible both before and after commencement of
Social Security benefits. The amount of the adjustment to the Sumitomo
Participant’s benefit shall be calculated using the factors in Appendix III of
the Sumitomo Plan.

 

(3)           This
subsection (f) shall only apply to the portion of the Sumitomo Participant’s
Accrued Benefit attributable to Section 4.1(c). The portion of a Sumitomo
Participant’s Accrued Benefit not attributable to Section 4.1(c) shall be paid
in one of the forms described in subsections (a) through (d) of this Section
5.7.

 

(4)           A
Sumitomo Participant’s Accrued Benefit payable in any form under this Section
5.7 shall never be less than his or her Accrued Benefit calculated as of
December 31, 1999 under the terms of the Sumitomo Plan.

 

(g)           Options
Available to Commerce Participants.

 

In addition to the forms described in
subsections (a) through (d), the following additional forms of benefit are
available only to Commerce Participants:

 

(1)           Post-retirement
75% Spouse Option.

 

The post-retirement 75% Spouse Option
provides a monthly payment during the Commerce Participant’s life. After the
Commerce Participant’s death 75% of the Commerce Participant’s Retirement
Income will be paid for life to the Commerce Participant’s Eligible Spouse. The
initial monthly payment under the 75% Spouse Option will be equal to the Actuarial
Equivalent of the amount payable under the Life Annuity form. For the purpose
of this paragraph (1), Actuarial Equivalent shall be calculated using the 1984
Uniform Pensioners Mortality Table and an interest rate equal to the greater of
100% of the Pension Benefit Guaranty Corporation immediate interest rate in
effect on the first day of the Plan Year in which the Commerce Participant
retires or 6.5%.

 

This paragraph (1) shall only apply to the
portion of the Commerce Participant’s Accrued Benefit earned prior to January
1, 1999 under the terms of the Commerce Plan. The portion of a Commerce
Participant’s

 

36

 

Accrued Benefit earned on or after January 1,
1999 shall be paid in one of the forms described in subsections (a) through (d)
of this Section 5.7.

 

(2)           Pre-retirement
Spouse Options.

 

The Pre-retirement Spouse Options provide a
monthly payment during the Commerce Participant’s life starting on the first of
any month following his or her Termination of Employment, which date shall be
considered the Annuity Starting Date for the purpose of this form of benefit,
and prior to his or her Early Retirement Date as described in Section 1.17.
After the Commerce Participant’s death 50%, 75% or 100% of the Commerce
Participant’s Retirement Income will be paid for life to the Commerce
Participant’s Eligible Spouse. The initial monthly payment under the
Pre-retirement Spouse Option will be equal to the Actuarial Equivalent of the
amount payable under the Life Annuity form. For the purpose of this paragraph,
Actuarial Equivalent shall be calculated using the 1984 Uniform Pensioners
Mortality Table and an interest rate equal to the greater of 100% of the
Pension Benefit Guaranty Corporation immediate interest rate in effect on the
first day of the Plan Year in which the Commerce Participant’s Annuity Starting
Date occurs or 6.5%.

 

This paragraph (2) shall only apply to the
portion of the Commerce Participant’s Accrued Benefit earned prior to January
1, 1999 under the terms of the Commerce Plan. The portion of a Commerce
Participant’s Accrued Benefit earned on or after January 1, 1999 shall be paid
in one of the forms described in subsections (a) through (d) of this Section
5.7.

 

(3)           Commerce
Lump Sum Option.

 

A Commerce Participant may elect to receive
the Actuarial Equivalent of his or her Accrued Benefit earned prior to January
1, 1999 in the form of a single payment effective on the first of any month
following Termination of Employment, which date shall be considered the Annuity
Starting Date for the purpose of this form of benefit. For the purpose of this
paragraph (3) Actuarial Equivalent shall be calculated using the 1984 Uniform
Pensioners Mortality Table and an interest rate equal to 100% of the Pension Benefit
Guaranty Corporation’s (PBGC) interest rates in effect on the first day of the
Plan Year in which the Commerce Participant’s Annuity Starting Date occurs. If
the lump sum value using this basis exceeds $25,000 then Actuarial Equivalent
shall be calculated using the 1984 Uniform Pensioners Mortality Table and an
interest rate equal to 120% of the PBGC rates. For the period of time prior to
the Commerce Participant’s Normal Retirement Date, pre-retirement mortality
shall not be used.

 

The portion of a Commerce Participant’s
Accrued Benefit earned on or after January 1, 1999 shall be paid on the
retirement date elected by the Commerce Participant in one of the forms
described in subsections (a) through (d) of this Section 5.7.

 

37

 

(4)           A
Commerce Participant’s Accrued Benefit payable under any of the forms described
in this Section 5.7(g) shall never be less than his or her Accrued Benefit
calculated as of December 31, 1998 under the terms of the Commerce Plan.

 

5.8           Payment of Small Benefits

 

Effective for payments to Participants first
commencing after September 18, 1998, if a Participant has a Termination of
Employment or dies and the Actuarial Equivalent value of the benefit payable
under the Plan to such Participant or his or her Beneficiary does not exceed
$5,000 ($3,500, for payments commencing prior to September 18, 1998), the
Committee will pay the Actuarial Equivalent value of such benefit to the
Participant or Beneficiary in a lump sum. If a lump sum payment is made, no
other benefit under the Plan will be due to the Participant or Beneficiary.
However, if the Participant receives less than the Actuarial Equivalent of his
or her full Accrued Benefit, such Accrued Benefit and related service shall be
reinstated if the Participant repays the distributed lump sum with interest at
one hundred and twenty percent (120%) of the Federal mid-term rate as in effect
for the first month of the Plan Year. Such repayment must be made prior to the
earlier of (1) the fifth anniversary of the Participant’s re-employment date,
or (2) the date the Participant incurs a five-year Break in Service.

 

If the Participant’s Vested Percentage is
zero, the Participant will be deemed to have received a distribution of the
Vested Percentage of his or her Accrued Benefit and to have forfeited the
nonvested percentage of his or her Accrued Benefit.

 

If the Actuarial Equivalent value of the
Participant’s benefit at the time of a distribution exceeds $5,000 (or $3,500,
whichever is applicable), then such value at any subsequent time will be deemed
to exceed $5,000 (or $3,500, whichever is applicable).

 

5.9           Eligible Rollover Distribution

 

(a)           This
Section 5.9 applies to distributions made on or after January 1, 1993.
Notwithstanding any provision of the plan to the contrary that would otherwise
limit a distributee’s election under this Section 5.9, a distributee may elect,
at the time and in the manner prescribed by the Committee, to have any portion
of an eligible rollover distribution paid directly to an eligible retirement
plan specified by the distributee in a direct rollover.

 

(b)           Definitions.

 

(1)           Eligible
rollover distribution: An eligible rollover distribution is any distribution of
all or any portion of the amount payable by the Plan to a distributee, except
that an eligible rollover distribution does not include: (A) any distribution
that is one of a series of substantially equal periodic payments (not less
frequently than annually) made for the life (or life expectancy) of the distributee
or the joint lives (or joint life expectancies) of the distributee and the
distributee’s designated beneficiary, or for a specified period of ten years or
more; (B) any distribution to the extent such distribution is required under
Code Section 401(a)(9); or (C) the portion of any distribution that is not
includible in gross income.

 

38

 

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

 

Effective for distributions occurring on or
after January 1, 2002, an “eligible retirement plan” for any distributee
(including a surviving Eligible Spouse) shall include, in addition to the plans
and programs mentioned in the first sentence of the previous paragraph, any
tax-deferred annuity program under Code Section 403(b) and any deferred
compensation plan of a governmental entity under Code Section 457.

 

(3)           Distributee:
A distributee includes a Participant or an Eligible Spouse.

 

(4)          Direct rollover: A direct rollover is
a payment by the plan to the eligible retirement plan specified by the
distributee.

 

5.10         Re-employment After Retirement

 

In order to retire, a Participant must have a
Termination of Employment. Effective January 1, 1992, if a Retired Participant
is rehired by the Company, his or her Retirement Income, if being paid in a
Life Annuity form, will not be suspended. The Retired Participant may earn
additional benefits as provided in Article 3. The benefit attributable to
service during the Participant’s re-employment that is not yet in payment
status will be paid, or commence to be paid upon the earlier of the
Participant’s subsequent retirement or the Participant’s required beginning
date described in Section 5.11(c). Such benefit may be paid in any form elected
by the Participant, which form may be different from the form in which benefits
are currently being paid.

 

If the Participant dies during such period of
re-employment, any death benefits attributable to service during the
Participant’s re-employment will be determined in accordance with Article 8.
Any death benefit attributable to service before the Retired Participant’s
re-employment will be determined in accordance with the provisions of the
applicable Form of Retirement Income elected at his or her original retirement.

 

5.11         Commencement of Benefits

 

(a)           Retirement
Income payments will begin on the later of the Retirement Date elected by the
Participant or the first day of the month following the date on which the
Participant applies for a retirement benefit.

 

(b)           Unless
a Participant elects otherwise, Retirement Income payments will begin not later
than the 60th day after the end of the Plan Year in which:

 

(1)           the
Participant’s Normal Retirement Age, or

 

39

 

(2)           the
Participant’s Termination of Employment occurs, whichever is later.

 

(c)           The
required beginning date described in this paragraph (c) will apply regardless
of any election made by the Participant.

 

(1)           Except
as provided by subparagraphs (2), (3) and (4) below, Retirement Income payments
will begin not later than April 1 of the calendar year following the calendar
year in which the Participant attains age 701⁄2 whether or not such Participant’s
employment has terminated. Effective for Plan Years commencing on or after
January 1, 1999, for a Participant who is not a 5% owner and who attains age
70-1/2 on or after January 1, 1999, Retirement Income payments will begin not
later than April 1 following the calendar year in which the Participant attains
age 70-1/2 or, if later, April 1 following the calendar year in which the
Participant incurs a Termination of Employment.

 

(2)           A
Participant who attained age 701⁄2 in 1988, who is not a 5% owner, and who has
not retired by January 1, 1989, will be treated as having retired on January 1,
1989. Retirement Income payments will begin not later than April 1, 1990 for
such Participants.

 

(3)           Retirement
Income payments for a Participant who attained age 701⁄2 before January 1, 1988,
and who is not a 5% owner will begin not later than April 1 of the calendar
year following the later of (A) the calendar year in which the Participant
attained age 701⁄2, or (B) the calendar year in which the Participant retires.

 

(4)           Retirement
Income payments for a Participant who attained age 701⁄2 before January 1, 1988,
and who is a 5% owner will begin not later than April 1 of the calendar year
following the later of (A) the calendar year in which the Participant attained
age 701⁄2, or (B) the earlier of (i) the calendar year within which ends the Plan
Year in which the Participant becomes a 5% owner, or (ii) the calendar year in
which the Participant retires.

 

(5)           A
Participant is treated as a 5% owner for purposes of this paragraph (c), if
such Participant is a 5% owner as defined in Code Section 416(i) at any time
during the Plan Year ending within the calendar year in which such owner
attains age 661⁄2 or any subsequent Plan Year. Once a Participant is described in
this subparagraph, distributions will continue to such Participant even if such
Participant ceases to own more than 5% of the Company in a subsequent year.
Effective January 1, 1999, a Participant is treated as a 5% owner if the
Participant is a “5 percent owner” (as defined in Code Section 416(i)(1)(B)(i))
at any time during the calendar year in which the Participant attains age
70-1/2.

 

(6)           If
a Participant receives payments under this paragraph (c), such payments will be
determined as if the Participant’s Late Retirement Date were the date by which
Retirement Income payments must be made under this paragraph (c). If the
Participant continues to earn additional Accrued 

 

40

 

Benefits after this date, his or her Monthly
Retirement Income will be re-determined on each January 1 following the date benefit
payments commence. This re-determined benefit will be payable under the Form of
Retirement Income elected as of the Late Retirement Date in accordance with
Section 5.7.

 

(7)           Effective
January 1, 1999, for a Participant whose continued active employment results in
the deferral of Retirement Income to a date later than April 1 following the
calendar year the Participant attains age 70-1/2 (the “Base Date”), the Accrued
Benefit for such a Participant shall be Actuarially adjusted to reflect the
deferral period from the Base Date to the date the Participant commences
payment of Retirement Income. The Actuarial adjustment shall be based on the
factors stated in Section 1.4(d).

 

5.12         Delay of Payment Due to
Administrative Error

 

(a)           Delay
in Commencing Annuity Payments

 

In the event Retirement Income payments to a
Participant are delayed for more than 60 days beyond his or her Retirement Date
due to an administrative error, or such other event designated by the
Committee, the affected Participant shall be entitled to Retirement Income
payments retroactive to his or her Retirement Date, plus interest at a rate of
6% per year on the portion of the delayed payment which is more than 60 days
late.

 

(b)           Delay
in Payment of Lump-Sum

 

Effective on and after November 1, 1998, the
provisions of this paragraph shall apply if a Participant or Beneficiary
becomes entitled to receive a lump-sum Retirement Income payment pursuant to
Section 5.7 or 5.8, and if the payment of such lump-sum is delayed due to an
administrative error for more than 60 days. In such a case, if the Participant
or Beneficiary has a right to receive a lump-sum based on the balance of his or
her Cash Balance Account (or other account balance under the Plan which is
expressed as a single sum), then the amount payable on the delayed date shall
be the balance of such account after crediting of interest applicable to the
account through the end of month immediately preceding the delayed payment
date. However, if the Participant or Beneficiary has a right to receive a
lump-sum based on the Actuarial present value of an Accrued Benefit expressed
in the form of an annuity, the lump-sum which shall be payable to the
Participant or Beneficiary as soon as administratively practical after the
administrative error has been detected shall be an amount that is equal to the greater of:

 

(1)           the
sum of: (A) the Actuarial present value of the Accrued Benefit based on the
age, mortality and interest rate factors in effect as of the 60th day following
the earliest date on which the benefit could have been paid in accordance with
the terms of the Plan, plus (B) interest at 6% per annum for the whole and/or
partial years from the said 60th day to the payment date; or

 

(2)           a
lump-sum based on the Accrued Benefit on the date of Termination (or death, if
applicable), but with the Actuarial present value based on the age, mortality
and interest rate factors in effect as of the actual payment date.

 

41

 

5.13         Suspension of Benefits for Active
Participants at Normal Retirement Date

 

(a)           Permissible
Suspension

 

For a Participant who has not previously
commenced receiving monthly benefits and who continues in active service as an
Employee after attaining his or her Normal Retirement Date, the right to
receive payment of benefits shall be suspended so long as such employment
continues, but not later than any required beginning date applicable to the
Participant under Section 5.11(c), at which time the benefit shall commence.
For any period of suspension between the Normal Retirement Date and April 1
following the year the Participant attains age 70-1/2 there shall be no
Actuarial adjustment to the Participant’s benefit attributable to the
suspension of the benefit. For any period of suspension that continues past
such date, the terms of Section 5.11(c)(7) shall apply.

 

Any such suspension shall not apply to a
Participant who has attained age 65 and performs no more than 40 Hours of
Service per month. The benefit for such a Participant shall commence on the later of the Normal Retirement Date or the
first day of the month following the date the Participant performs 40 or fewer
Hours of Service per month.

 

(b)           Notice
of Suspension of Benefits

 

A Participant whose benefit payment rights
are suspended as described in the previous paragraph shall be notified in
writing of such suspension as soon as administratively practical following the
date as of which such payments are withheld. Such notice shall, among other
things, advise the Participant of his or her right to request a review of the
suspension, in accordance with the procedures in Section 12.6.

 

(c)           Participant’s
Duty to Notify Plan Administrator

 

Each such Participant shall have the duty to
notify the Plan Administrator if and when the Participant modifies his or her
regular work schedule to less than 40 Hours of Service per month, in which case
the suspension shall cease, subject to verification by the Committee.

 

42

 

(d)           Benefits
Paid in Error May Offset Future Benefits

 

In the event that benefits are mistakenly
paid to a Participant during a period for which benefit payments should have
been suspended under this Section, the amount mistakenly paid may be offset
against benefits which become properly payable in the future, provided that
such offset shall not exceed 25 percent of the benefit payable in each
subsequent month.

 

5.14         Benefits Under a Qualified Domestic
Relations Order (QDRO)

 

A domestic relations order, if (but only if)
it is determined by the Committee (or the Committee’s designated QDRO
administrator) to be a Qualified Domestic Relations Order, may provide, as of a
stated date (or upon the occurrence of a stated event pertaining to the
Participant), either:

 

(a)           the
division of a Participant’s Accrued Benefit between the Participant and a named
alternate payee, in portions or amounts stated in the QDRO;

 

(b)           the
distribution to a named alternate payee of a stated portion (or dollar amount)
of the Participant’s benefit, in an amount not greater than the value of the
Participant’s Accrued Benefit that is vested at such time; or

 

(c)           a
right for a named alternate payee to be treated as Beneficiary for all or a
stated portion of a Participant’s death benefit.

 

Notwithstanding any other provision of this
Section, a QDRO may not (1) require a form of benefit distribution not provided
under the terms of this Plan, (2) cause any unvested benefit to be vested, (3)
cause a Participant’s Accrued Benefit to have a value greater than the value determined
under the terms of this Plan, (4) provide for a distribution to commence from
an alternate payee’s benefit at a time later than the latest date or age as of
which a benefit distribution may commence under this Plan, or (5) otherwise
state terms which are inconsistent with the terms of this Plan.

 

The Committee (or QDRO administrator) shall
determine whether a domestic relations order meets the requirements of this
Section within a reasonable period after it is received by the Committee (or
QDRO administrator). The Committee (or QDRO administrator) shall notify the
Participant and any alternate payee that a domestic relations order has been
received. Any amounts due the alternate payee under the domestic relations
order which, in its absence, would be paid to the Participant or a beneficiary,
shall be held during the period while the domestic relations order’s qualified
status is being determined. If a domestic relations order is not affirmatively
determined to be a QDRO, then such restriction shall lapse on the earlier of
the (a) the date the order is determined not to be a QDRO and appeal rights
under Section 12.6(c) or (d) (whichever is applicable) have expired or been
exhausted, or (b) 18 months after such restriction is imposed.

 

43

 

Article 6

 

TERMINATION AND VESTING

 

6.1           Vesting

 

(a)           Except
as described in subsection (b), a Participant’s vested Accrued Benefit will be
equal to the sum of (1) and (2) below:

 

(1)           The
Participant’s Accrued Benefit Attributable to the Old Plan Account determined
in accordance with Section 4.5.

 

(2)           Effective
January 1, 1989, the Participant’s Accrued Benefit Attributable to Company
Contributions (determined in accordance with Section 4.6) multiplied by the
vested percentage shown in the following table:

 

	
  Years of
  Vesting Service

  	
   

  	
  Vested
  Percentage

  
	
  Less than 5

  	
   

  	
  0%

  
	
  5 or more

  	
   

  	
  100%

  

 

(b)           A
Grossmont Participant’s, and a Commerce Participant’s, Accrued Benefit will be
equal to his or her Accrued Benefit Attributable to Company Contributions
(determined in accordance with Section 4.1) multiplied by the vested percentage
shown in the following table:

 

	
  Years of Vesting Service

  	
   

  	
  Vested Percentage

  
	
  Less than 3 years

  	
   

  	
  0%

  
	
  3 years but less than 4

  	
   

  	
  20%

  
	
  4 years but less than 5

  	
   

  	
  40%

  
	
  5 or more years

  	
   

  	
  100%

  

 

(c)           In
addition, a Participant’s Accrued Benefit will be 100% vested if and when the
Participant attains his or her Normal Retirement Age while an active Employee.

 

(d)           Effective
December 12, 1994, a Participant will receive vesting credit for any and all
years and partial years of Qualified Military Service.

 

6.2           Termination Benefit

 

(a)           A
Terminated Vested Participant will have the option of:

 

(1)           withdrawing
his or her Old Plan Account, in which event the Participant would be entitled
to his or her vested Accrued Benefit Attributable to Company Contributions
commencing on his or her Normal or Early Retirement Date, or

 

44

 

(2)           leaving
his or her Old Plan Account in the Plan, in which event the Participant would
be entitled to his or her vested 
Accrued Benefit commencing on his or her Normal or Early Retirement
Date.

 

(b)           The
monthly amount of Retirement Income payable to a Terminated Vested Participant
who commences his or her benefit on the Normal Retirement Date will be equal to
the vested Accrued Benefit (or, if the Old Plan Account has been withdrawn, the
vested Accrued Benefit Attributable to Company Contributions) earned to the
date of Termination of Employment. This Retirement Income will be subject to
adjustment depending on the Form of Retirement Income elected in accordance
with Section 5.7.

 

(c)           The
monthly amount of Retirement Income payable to a Terminated Vested Participant
who commences his or her benefit on an Early Retirement Date is equal to the
Early Retirement Income described in Section 5.3.

 

(d)           Except
as provided in Section 5.8, the Old Plan Account of a Participant will not be
distributed pursuant to this Sectionunless the Participant elects such
distribution and the Eligible Spouse of the Participant consents to the
distribution not more than 90 days prior to the date of such distribution. The
Eligible Spouse’s consent must acknowledge the effect of the election and must
be witnessed by a plan representative or notary public. The requirement for
consent of the Eligible Spouse will be waived if the Participant establishes to
the satisfaction of the Committee that such consent cannot be obtained because
there is no Eligible Spouse, the Eligible Spouse cannot be located or because
of such other circumstances as the Secretary of the Treasury may by regulations
prescribe.

 

6.3           Re-employment After Termination of
Employment

 

(a)           If
a Terminated Vested Participant is subsequently reinstated as an Active
Participant, his or her Retirement Income subsequent to his or her eventual
Termination of Employment following the second period of employment will be
based on the Participant’s Accrued Benefit under the provisions of the Plan in
effect as of such subsequent Termination of Employment, except that it may not
be less than the Participant’s Accrued Benefit as of the date of any prior
Termination of Employment.

 

(b)           If
a Participant’s employment with the Company terminates prior to the
Participant’s becoming partially or fully vested in his or her Accrued Benefit,
the Participant will be deemed to have received a distribution of his or her
entire vested interest under the Plan. The Participant’s unvested Accrued
Benefit will be forfeited on the date of his or her Termination of Employment.
A Participant whose benefit has been so forfeited will be deemed “cashed out”
from the Plan. If the former Participant is re-employed before incurring five
consecutive Breaks in Service and after completing a Year of Vesting Service,
his or her Cash Balance Account and Accrued Benefit will be restored in
accordance with Sections 3.5(a) and 4.1 respectively..

 

45

 

6.4           Termination Benefits and
Re-employment for Commerce Participants

 

(a)           A
Commerce Participant may elect to receive the portion of his or her Accrued
Benefit earned prior to January 1, 1999 on the first day of any month
coincident with or following his or her Termination of Employment (“Termination
Benefit”). The Termination Benefit is the Actuarial Equivalent of the Accrued
Benefit earned prior to January 1, 1999. For early retirement reduction,
Actuarial Equivalent shall be calculated as described in Section 5.3(e). For
benefit form adjustment, Actuarial Equivalent shall be calculated as described
in Sections 5.7(g)(2) and 5.7(g)(3). Upon meeting the requirements of Section
1.17(d), a Commerce Participant may receive the remainder of his or her Accrued
Benefit earned on or after January 1, 1999.

 

(b)           In
the event a vested Commerce Participant who terminated after December 31, 1998
and before his or her Early Retirement Date, received a distribution upon
Termination of Employment, and becomes re-employed, which means he or she has
at least forty (40) Hours of Service with the Employer during any calendar
month, his or her Termination Benefit or Retirement Income shall be determined
and paid as described below:

 

(1)           In
the event a Commerce Participant has commenced annuity payments and is
subsequently re-employed, such annuity payments shall continue upon
re-employment;

 

(2)           In
the event a Commerce Participant received a lump sum distribution under Section
5.7(g)(3) upon Termination of Employment and becomes re-employed prior to
incurring five (5) consecutive one (1) year Breaks-In-Service, he or she may
repay such benefit with interest, at one hundred and twenty percent (120%) of
the Federal mid-term rate as in effect for the first month of the Plan Year, to
the Plan within five (5) years after re-employment.  The Accrued Benefit of a Commerce Participant who makes such
repayment shall be determined as if no prior distribution occurred.

 

(3)           The
additional benefit earned during re-employment may be paid in any form elected
by the Participant pursuant to Sections 5.7(a) to (d).

 

6.5           Special Termination Benefit for
Sumitomo Participants

 

This Section applies to a Sumitomo
Participant who (a) had a Termination of Employment for any reason between
October 1, 1998 and September 30, 1999, (b) was not a Highly Compensated
Employee (as defined in this Plan) for the Plan Year in which the Termination
of Employment occurred, and (c) elected to receive severance benefits in
connection with his or her separation from the Company under either the
Sumitomo Severance Benefit Program, the Executive Retention and Severance
Benefit Agreement and/or the Key Contributor Retention and Severance Agreement
(which are plans and programs that are not part of this Plan and are not funded
by the Trust Fund). In the case of each Sumitomo Participant who met all of the
conditions of the previous sentence, the minimum benefit under Section 4.1(c)
of this Plan as of his or her Termination of Employment shall be increased by
6.5%.

 

46

 

Article 7

 

DISABILITY BENEFITS

 

7.1           Determination of Disability

 

A Participant has a “total and permanent
disability” if, while employed by the Company, the Participant ceases to
perform the duties assigned to him or her by the Company due to a disability
that meets the following eligibility criteria:

 

(a)           the
Participant is entitled to disability retirement income payments under Title II
of the Federal Social Security Act; provided, however, that this criterion in
this clause “(a)” shall cease to be applicable to the definition of “total and
permanent disability” on or after March 1, 2002, and

 

(b)           the
Participant is eligible for disability benefits under the Company’s long term
disability plan.

 

It will be the responsibility of the
Participant to submit proof of disability, as described in clause (a) and (b)
above, satisfactory to the Committee.

 

7.2           Eligibility for Disability Benefits

 

A Disabled Participant or former Disabled
Participant may retire on a Disability Retirement Date if the Participant has
completed five Years of Vesting Service as of the date first disabled under
Section 7.1.

 

7.3           Disability Retirement Date

 

If the Participant’s total and permanent
disability continues until the Participant’s Normal Retirement Date, the
Participant’s Disability Retirement Date shall be the Normal Retirement Date
(or the first day of the month following Termination of Service, if later). If
a Disabled Participant’s total and permanent disability ends before the Normal
Retirement Date, the Participant may retire on an Early or  Normal Retirement Date, whichever applies,
and such date will be his or her Disability Retirement Date.

 

7.4           Disability Retirement Income

 

A Disabled Participant will be entitled to a
monthly Disability Retirement Income beginning on his or her Disability
Retirement Date. The amount will be equal to the retirement income from Section
5.2, 5.3, or 5.4 on the Disability Retirement Date. While a Participant’s total
and permanent disability continues, until the earliest of the Participant’s
attaining his or her Normal Retirement Date, death, or the Participant’s
Disability Retirement Date, Earnings will be credited (in accordance with
Section 3.2, as though the Participant were continuing to accrue 1,000 or more
Hours of Service per year) in the amount equal to Earnings in the most recent year
prior to the year of initial disability in which 1,000 Hours of Service were
worked. Disability Retirement Income will be subject to adjustment depending on
the Form of Retirement Income elected in accordance with Section 5.7.

 

47

 

Article 8

 

DEATH BENEFITS

 

8.1           Death after Commencement of Benefits

 

Death Benefits for a Retired Participant will
be determined in accordance with the provisions of the applicable Form of
Retirement Income elected.

 

8.2           Death Prior to Commencement of
Benefits

 

This Section 8.2 shall be effective April 1,
1997, except as otherwise stated below.

 

(a)           If
a Participant, whose vested Accrued Benefit is calculated under Section 4.2,
dies before his or her Retirement Date, the Participant’s Eligible Spouse, if
any, will receive a benefit commencing on the first day of the month following
the Participant’s death. The Eligible Spouse may elect to defer payment until
the first day of any month on or before the Participant’s Normal Retirement
Date. The Eligible Spouse will receive a monthly benefit equal to the Actuarial
Equivalent amount, as of the date the benefit commences, of the Participant’s
Cash Balance Account, based upon the Eligible Spouse’s age as of the date the
benefit commences.  This benefit will
continue to the death of the Eligible Spouse. Instead of receiving the benefit
in the form of a Life Annuity, the Eligible Spouse may elect to receive the
benefit in the Lump Sum Payment Option, described in Section 5.7(c). If the Participant
does not have an Eligible Spouse who survives him or her, the Cash Balance
Account as of the Participant’s death will be paid on the first of the month
following death to the Participant’s estate.

 

For a Participant who is survived by an
Eligible Spouse, the amount of the monthly benefit payable to the Eligible
Spouse, as described in this subsection (a) (the “Cash Balance Annuity”), shall
in no event be less than any of the following minimum benefits (assuming a
benefit commencement date that is the same as the actual benefit commencement
date under the prior paragraph) to the extent that any of the following minimum
benefit rules is applicable to the deceased Participant:

 

(1)           For
Participant with a Minimum Accrued Benefit as defined in Section 4.3 or a
Grandfathered Minimum Accrued Benefit as defined in Section 4.4, the Cash
Balance Annuity shall not be less than the Minimum Death Benefit that would be
payable to the Eligible Spouse as described in Article 4 of Appendix III.

 

(2)           Effective
January 1, 1998, for a Grossmont Participant who has a minimum benefit
described in Section 4.1(b), the Cash Balance Annuity shall not be less than
the monthly amount that would be payable as a 50% pre-retirement survivor
annuity to the Eligible Spouse with respect to that minimum benefit, in
accordance with the actuarial factors and other terms of the Grossmont Plan
that were in effect on December 31, 1997.

 

48

 

(3)           Effective
October 1, 1998, for a Sumitomo Participant who has a minimum benefit described
in Section 4.1(c), the Cash Balance Annuity shall not be less than the monthly
amount that would be payable as a 50% pre-retirement survivor annuity to his or
her Eligible Spouse with respect to that minimum benefit, in accordance with
the actuarial factors and other terms of the Sumitomo Plan that were in effect
on September 30, 1998.

 

(4)           Effective
January 1, 1999, for a Commerce Participant who has a minimum benefit described
in Section 4.1(d), the Cash Balance Annuity shall not be less than the monthly
amount that would be payable as a 50% pre-retirement survivor annuity to the
Eligible Spouse with respect to that minimum benefit, in accordance with the
actuarial factors and other terms of the Commerce Plan that were in effect on
December 31, 1998.

 

(b)           If
a Participant, whose vested Accrued Benefit is calculated under Plan provisions
in effect prior to April 1, 1997, dies before his or her Retirement Date, the
Participant’s Eligible Spouse, if any, will receive a death benefit in
accordance with the prior provisions.

 

8.3           Effect of Old Plan Account

 

The Eligible Spouse of a Participant who has
an Old Plan Account at death may elect to receive it in a lump sum immediately
following death. If the Eligible Spouse elects to receive monthly payments in
addition to this lump sum in accordance with Section 8.2(a), the monthly amount
payable will equal the monthly amount before consideration of the Old Plan
Account reduced by the Accrued Benefit Attributable to the Old Plan Account, as
described in Section 4.5. For Participants who die with 10 or more Years of
Vesting Service, the Accrued Benefit Attributable to the Old Plan Account
commencing prior to the first of the month following what would have been the
Participant’s earliest Early Retirement Date is the Actuarial Equivalent of the
Accrued Benefit Attributable to the Old Plan Account at that earliest Early
Retirement Date.

 

8.4           Return of Old Plan Account

 

Upon the death of the Participant or, if
later, the death of the Eligible Spouse entitled to payments under Section 8.1
or 8.2, the Participant’s remaining Old Plan Account, if any, will be paid to
the Participant’s Beneficiary. For purposes of this Section 8.4, the
Participant’s remaining Old Plan Account will be equal to the excess, if any,
of:

 

(a)           the
Participant’s Old Plan Account as of his or her date of death or, if earlier,
Retirement Date over

 

(b)           the
sum of all amounts previously paid from the Trust Fund on such Participant’s
behalf.

 

49

 

Article 9

 

FINANCING THE PLAN

 

9.1           Company Contributions

 

(a)           The
Company expects to make the contributions necessary to provide the benefits of
the Plan. Such contributions will not be less than the amount necessary to meet
the minimum funding standards of ERISA.

 

(b)           All
contributions will be deposited in the Trust Fund and will be disbursed in
accordance with the provisions of the Plan and the Trust Agreement. All benefit
payments under the Plan will be paid from the Trust Fund. No person will have
any interest in, or right to, any part of the assets of the Plan except as
expressly provided in the Plan.

 

(c)           Gains
arising from experience under the Plan will not serve to increase the benefits
otherwise due any Participant, but will be used to reduce future Company
contributions.

 

9.2           Return of Company Contributions

 

(a)           Except
as provided below and in Section 10.2, the assets of the Plan will never inure
to the benefit of the Company and will be held for the exclusive purposes of
providing benefits to Participants of the Plan and their Beneficiaries and
defraying reasonable expenses of administering the Plan.

 

(b)           If
a contribution is made by the Company by a mistake of fact, such contribution
will be returned to the Company provided this is done within one year after the
payment of such contribution. Earnings attributable to the excess contribution
may not be returned, but losses attributable thereto shall reduce the amount to
be returned.

 

(c)           Contributions
are conditioned upon their current deductibility under Code Section 404. If a
contribution deduction is disallowed, to the extent the deduction is
disallowed, such contribution will be returned to the Company within one year
after the disallowance.

 

9.3           Employee Contributions

 

The Company pays the entire cost of the Plan.
No employee contributions or rollovers are required or permitted.

 

50

 

Article 10

 

TERMINATION OF THE PLAN

 

10.1         Termination of Plan

 

The Company expects to continue the Plan
indefinitely but reserves the right to terminate the Plan in whole or in part.

 

10.2         Procedures Upon Termination of Plan

 

Upon termination of the Plan, the following
provisions will apply:

 

(a)           Upon
complete termination of the Plan, the Accrued Benefit of each Active or
Inactive Participant will become fully vested and nonforfeitable (to the extent
funded). No additional Employees will become Participants.

 

Upon partial termination of the Plan, the
Accrued Benefit of each Active or Inactive Participant who is affected by such
partial termination will become fully vested and nonforfeitable (to the extent
funded).

 

(b)           The
assets of the Plan available to provide benefits will be allocated among
Participants and their Beneficiaries in the manner and order prescribed by
ERISA Section 4044.

 

If any assets of the Plan remain after all
liabilities of the Plan to Participants and their Beneficiaries have been
satisfied or provided for, any residual assets will be paid to the Company,
provided such payment does not contravene any provision of law.

 

(c)           Upon
termination of the Plan, benefits of missing Participants shall be treated in
accordance with ERISA Section 4050.

 

51

 

Article 11

 

INTERNAL
REVENUE CODE LIMITATIONS ON BENEFITS

 

11.1         Earnings Limitation under Code
Section 401(a)(17)

 

A Member’s “Earnings”, for purposes of
determining his or her Accrued Benefit under this Plan, shall be subject to the
limitations of Code Section 401(a)(17), as stated in Section 1.18(c) of this
Plan.

 

11.2         Maximum Retirement Benefit under
Code Section 415

 

(a)           For
purposes of this Section 11.2 only, the following definitions will apply:

 

(1)           “Annual
Benefit” means a retirement benefit payable annually in the form of a straight
life annuity. A benefit payable in a form other than a straight life annuity
will be adjusted to be the Actuarial Equivalent of a straight life annuity
before applying the limitations of this Section 11.2. However, no Actuarial
adjustment will be made for the value of a qualified joint and survivor annuity
or the value of benefits that are not directly related to retirement benefits.

 

(2)           “Annual
Benefit Dollar Limit” means the dollar limit for the applicable Plan Year, as
stated in paragraph (b)(1) of this Section 11.2, after taking account of
any annual adjustment to that limit as stated in that paragraph.

 

(3)           “Compensation”
has the meaning stated in Section 1.15.

 

(4)           “Limitation
Year” means a Plan Year, which coincides with the calendar year.

 

(5)           “Social
Security Retirement Age” means the age used as the retirement age for a
Participant under Section 216(l) of the Social Security Act except that
such section shall be applied without regard to the age increase factor, and as
if the early retirement age under Section 216(l)(2) of such Act were 62.

 

(b)           The
Annual Benefit of a Participant who commences his or her benefit on a date
within a Limitation Year may not at any time within a Limitation Year exceed
the lesser of (1) or (2) below:

 

(1)           The
dollar limit set forth in Code Section 415(b)(1)(A), as that limit may be
modified for the applicable Limitation Year either by amendment of Code Section
415(b)(1) or as a result of an adjustment approved by the Secretary of the
Treasury pursuant to Section 415(d) (for example, the limit shall be $140,000
in Plan Year 2001 and $160,000 in Plan Year 2002) Effective each January 1,
this limitation will be automatically adjusted to the new dollar limitation
prescribed by the Secretary of the Treasury for that calendar year.

 

52

 

(2)           100%
of the annual average of the Participant’s Compensation from the Employer for
the three consecutive Limitation Years (or all Limitation Years, if fewer than
three), during which he or she participated in the Plan and which give the
highest average.

 

(c)           If
the Annual Benefit payable to a Participant under this Plan and all other
defined benefit plans of the Company does not exceed $10,000 and the Employer
has not maintained a defined contribution plan in which the Participant
participated, the maximum otherwise imposed by this Section 11.2 will not
apply.

 

(d)           Service
or participation less than ten years

 

(1)           If
a Participant has completed less than ten years of participation in the Plan,
the Annual Benefit Dollar Limit will be multiplied by the ratio of the
Participant’s years (or part thereof) of participation in the Plan to ten. This
ratio will not be less than one- tenth.

 

(2)           If
a Participant has completed less than ten Years of Vesting Service, the limits
otherwise imposed by Sections 11.2(b)(2) and 11.2(c) will be multiplied by the
ratio of the Participant’s Years of Vesting Service (or part thereof) to ten.
This ratio will not be less than one-tenth.

 

(3)           To
the extent required by regulations under Code Section 415, this Section 11.2(d)
will be applied separately with respect to each change in the benefit structure
of the Plan.

 

(e)           The
provisions of this subsection (e) shall apply to Participants whose benefit
commencement date occurs in any Plan Year beginning prior to January 1, 2002.

 

(1)           If
the Participant’s benefit payments are to commence at or after age 62 and the
Participant’s Social Security Retirement Age is 65, the Annual Benefit Dollar
Limit will be reduced by five-ninths of one percent for each month by which
benefits commence before the month in which the Participant attains age 65 or,

 

(2)           If
the Participant’s benefit payments are to commence at or after age 62 and the
Participant’s Social Security Retirement Age is greater than 65, the Annual
Benefit Dollar Limit will be reduced by five-ninths of one percent for each of
the first 36 months and five-twelfths of one percent for each of the additional
months (up to 24) by which benefits commence before the month in which the
Participant attains Social Security Retirement Age.

 

(3)           If
the Participant’s benefit payments are to commence prior to the month in which
the Participant attains age 62, the Annual Benefit Dollar Limit shall be
reduced for each month by which benefits commence prior to the date of
attaining age 62, as follows. First, the limit at age 62 (the “Age 62 Limit”)
shall be determined pursuant to paragraph (1) or (2) above (whichever is
applicable to the Participant). Second, the Age 62 Limit shall be reduced to
the lesser of:

 

53

 

(A)          the product of (i) the Age 62 Limit,
times (ii) the “implied early retirement factor” (as hereafter  defined), or

 

(B)          the Actuarial Equivalent of the Age 62
Limit, based upon a 5% interest rate and the Applicable Mortality Table.

 

The “implied early retirement factor” shall
mean the ratio of: (1) the early retirement reduction factor determined under
Section 5.3 as applied to the Participant’s age on his or her actual benefit
commencement date, to (2) the early retirement reduction factor determined
under Section 5.3 which would apply if the Participant elected to defer the
commencement of his or her benefit to age 62.

 

(4)           If
a Participant’s benefit payments are to commence after the Participant’s Social
Security Retirement Age, the Annual Benefit Dollar Limit will be increased to
the Actuarial Equivalent of the limit as of the Participant’s Social Security
Retirement Age, but the mortality factor of the Actuarial Equivalence calculation
shall be ignored.

 

(f)            The
provisions of this subsection (f) shall apply to Participants whose benefit
commencement date occurs in any Plan Year beginning on or after January
1, 2002.

 

(1)           If
the Participant’s benefit commences prior to age 62, the Annual Benefit Dollar
Limit shall be reduced to the lower of
the following two amounts:

 

(A)          the
Actuarially Equivalent dollar amount that reflects the number of months by
which the benefit commencement date precedes the date of attaining age 62,
based on an interest rate equal to five percent (5%); or

 

(B)           the
dollar amount that reflects the applicable reduction factor that would apply
under the terms of the Plan.

 

(2)           If
a Participant’s benefit commencement date occurs between the date of attaining
age 62 and 65, the Annual Benefit Dollar Limit shall not be adjusted on account
of early commencement.

 

(3)           If
the Participant’s benefit commencement date occurs after attaining age 65 under
circumstances resulting in a right to receive an Actuarial adjustment in the
benefit payable under the Plan, the Annual Benefit Dollar Limit shall be
increased by means of an Actuarial adjustment based on either (A) an interest
rate of 5% (applied solely to the period that is subject to Actuarial
adjustment under the Plan), or (B) the Actuarial adjustment factor that is
applicable to the Participant’s benefit under the Plan, whichever produces the
lower limitation amount. When calculating the adjustment of the Annual Benefit
Dollar Limit according to this paragraph, mortality shall be ignored.

 

(g)           If
the Accrued Benefit of any Participant as of the close of the last Limitation
Year beginning before January 1, 1987 exceeds the benefit limitations under
Code 

 

54

 

Section 415(b) then, for purposes of Code
Section 415(b) (and 415(e) for periods prior to January 1, 2000) such
Participant’s defined benefit dollar limitation under Code Section 415(b)(1)
will be equal to his or her Accrued Benefit, determined as of such date as if
the Participant had separated from service on that date. For purposes of this
paragraph, any changes in the terms and conditions of the Plan or cost of
living adjustments occurring after May 5, 1986 will be disregarded.

 

(h)           All
defined benefit plans of the Employer, terminated or not, will be considered as
one plan for purposes of the limitations specified under this Section 11.2, and
all Affiliates and Subsidiaries of the Employer will be considered as one
employing company.

 

(i)            The
terms of this subsection shall not apply to any benefit which commences on or after January
1, 2000.In any case in which a person is a Participant in both a defined
benefit plan and a defined contribution plan maintained by any Affiliate or
Subsidiary of the Company, the sum of (1) and (2) below for any Limitation Year
may not exceed 1.0:

 

(1)           The
defined benefit plan fraction for such Limitation Year is equal to the quotient
of (A) divided by (B) below:

 

(A)          The
Annual Benefit of the Participant under the Plan and all other defined benefit
plans (determined as of the close of such Limitation Year).

 

(B)           The lesser of 125% of the Annual
Benefit Dollar Limit and 140% of the amount described in Section 11.2(b)(2).If
the Employee was a participant in one or more defined benefit plans maintained
by any Affiliate or Subsidiary, which were in existence on May 5, 1986, the
amount calculated in (B) will not be less than 125% of the Employee’s accrued
benefit under such defined benefit plans as of December 31, 1986, determined
without regard to any change in the terms or conditions of the plan made after
May 5, 1986, and without regard to any cost of living adjustment occurring
after May 5, 1986. The preceding sentence only applies if the defined benefit
plans individually and in the aggregate satisfied the requirement of Code
Section 415 as in effect on December 31, 1986.

 

(2)           The
defined contribution plan fraction for such Limitation Year is equal to the
quotient of (A) divided by (B) below:

 

(A)          The aggregate of the annual additions
to the Participant’s account under said defined contribution plan as of the
close of such Limitation Year.

 

(B)           The lesser of 125% of the maximum
annual additions to such account for all Years of Vesting Service with the
Employer, or 1.4

 

55

 

multiplied by 25% of the Participant’s
Compensation for all Years of Vesting Service with the Employer.

 

If the Plan satisfied the applicable
requirements of Code Section 415 as in effect for the last Plan Year beginning
before January 1, 1987, an amount will be subtracted from the amount calculated
in (A) (but not reducing the amount in (A) to less than zero) so that the sum
of the defined benefit fraction and defined contribution fraction computed
under Code Section 415(e)(1) does not exceed 1.0 for such Plan Year (determined
as if the changes to Code Section 415 made by the Tax Reform Act of 1986 and
any technical corrections to such act were in effect for such Plan Year).

 

(3)           If
the sum of (1) and (2) exceeds 1.0, the Annual Benefit under this Plan will be
limited to such amount as will reduce such sum to 1.0.

 

11.3         Additional Benefit Limits for
Highly Compensated Employees

 

(a)           For
purposes of this Section 11.3 only, the following definitions will apply:

 

(1)           “Benefit”
means benefits under the Plan and includes any annual periodic income, any
withdrawal values payable to a living Employee and any death benefits not
provided by insurance on the Employee’s life.

 

(2)           “Current
Liabilities” is defined in Code Section 412(l)(7) provided that the Company may
elect to use the value of current liabilities as reported on Schedule B of the
Plan’s most recent timely filed Form 5500 or Form 5500 C/R. Alternatively, the
Company may determine current liabilities as of a later date.

 

(3)           Effective
January 1, 1997, “Highly Compensated Employee” means:

 

(A)          Any
Employee who performs services for an Affiliate or Subsidiary of the Employer
during the determination year and who received Compensation in excess of the
dollar amount stated in Code Section 414(q)(1)(B)(i) (as adjusted by the
Secretary of the Treasury) during the look-back year (for example, the said
adjusted amount shall be $85,000 for the 2001 look-back year and $90,000 for
the 2002 look-back year). Provided, however, that, for Plan Years 1998 and
thereafter, such an Employee shall not be considered a Highly Compensated
Employee unless he or she has Compensation from the Employer during the
look-back year that causes him or her to be among the highest paid 20% of the
Employees of the Employer for a year in which the 20% limitation is in effect
under the defined contribution plans maintained by the Employer.

 

(B)          Any
Employee who is a 5% owner (as defined in code Section 416(i)(1)(B)(i)) of the
Employer at any time during the look-back year or the determination year.

 

56

 

(C)           For
purposes of this Section, the following definitions apply. The determination
year is the Plan Year. The look-back year is the 12-month period immediately
preceding the determination year.

 

(4)           “Highly
Compensated Former Employee” means any former Employee who was a Highly
Compensated Employee for a separation year (as defined in Treasury Regulation
Section 1.414(q)-1T) or for any determination year ending on or after the
Employee attains age 55, as provided by Code Section 414(q)(9) and the
regulations thereunder.

 

(5)           “Restricted
Amount” is the excess of the accumulated amount of distributions to a
Restricted Employee over the accumulated amount of the payments that would have
been paid under:

 

(A)          a
straight life annuity that is the actuarial equivalent of the Restricted
Employee’s Benefit (other than a social security supplement), plus

 

(B)           the
amount of the payments that the Restricted Employee is entitled to receive
under a social security supplement. For this purpose, an “accumulated amount”
is the amount of a payment increased by a reasonable amount of interest from
the date the payment was made (or would have been made) until the date for the
determination of the Restricted Amount.

 

(6)           “Restricted
Employee” for any Plan Year means one of the 25 Highly Compensated Employees or
Highly Compensated Former Employees with the greatest compensation.

 

(b)           In
the event the Plan is terminated, the Benefit payable to any Highly Compensated
Employee and any Highly Compensated Former Employee will be limited to a
benefit which is nondiscriminatory under Code Section 401(a)(4).

 

(c)           Prior
to Plan termination, the annual payment to a Restricted Employee under the Plan
will be limited to an amount equal to the annual payment that would have been
paid under a straight life annuity that is the actuarial equivalent to the
Restricted Employee’s Benefit (not including any social security supplement)
plus the amount of any social security supplement payments the Restricted
Employee is entitled to receive.

 

(d)           Subsection
(c) above will not apply if:

 

(1)           after
payment of all Benefits to the Restricted Employee, the value of Plan assets is
110% or more of the value of Current Liabilities,

 

(2)           the
value of Benefits payable to the Restricted Employee is less than one percent
of the value of Current Liabilities, or

 

57

 

(3)           the
present value of the Benefits payable to the Restricted Employee is $5,000 or
less, or

 

(4)           upon
receipt of a distribution from the Plan, the Restricted Employee deposits in
escrow property having a fair market value equal to at least 125% of the
Restricted Amount or, alternatively, posts a bond or letter of credit in an amount
equal to at least 100% of the Restricted Amount.

 

11.4         Top-Heavy Provisions

 

(a)           Top-Heavy
Plan

 

Notwithstanding any other provision of this
Plan to the contrary, this article will apply if the Plan is a Top-Heavy Plan.
The Plan will be a Top-Heavy Plan if, as of the Determination Date, the present
value of the cumulative accrued benefits of Key Employees exceeds sixty percent
of the present value of the cumulative accrued benefits under the Plan of all
Participants and Beneficiaries (but excluding the value of the accrued benefits
of former Key Employees and individuals who have not performed any services for
the Company during the five year period ending on the Determination Date). This
percentage will be computed in accordance with Code Section 416(g).

 

In determining whether this Plan is a
Top-Heavy Plan, all employers that are aggregated under Code Sections 414(b),
(c) and (m) will be treated as a single employer. In addition, all plans that
are part of the Aggregation Group will be treated as a single plan. In
determining present values, mortality will be based on the 1984 Unisex Pension
Mortality Table and the interest rate utilized will be five percent.

 

(b)           Definition
of Terms

 

For purposes of this Section 11.4 only, the
following terms will have the following meanings:

 

(1)           “Aggregation
Group” means the Required Aggregation Group or, at the election of the Company,
the Permissive Aggregation Group.

 

(2)           “Average
Compensation” means the Participant’s Compensation averaged over the five
consecutive Plan Years in which the Participant earned a Year of Vesting
Service (if such Year of Vesting Service is not disregarded pursuant to
subsection (d) below) and in which the Participant’s aggregate Compensation was
the greatest. If the Participant received Compensation in fewer than five such
Plan Years, his or her Compensation will be averaged over such lesser number of
Plan Years.

 

(3)           “Compensation”
shall be as defined in Section 1.15, subject to the limitations imposed by Code
Section 401(a)(17), as amended by law and as adjusted by the Secretary of the
Treasury..

 

58

 

(4)          
“Determination Date” means the last day of the preceding Plan Year. This date
will also be the valuation date for determining present values.

 

(5)           For
Plan Years commencing prior to January 1, 2002, “Key Employee” means an
Employee, a former Employee, or the Beneficiary of a former Employee who, in
the Plan Year containing the Determination Date, or any of the four preceding
Plan Years, is:

 

(A)          An
officer of the Company having an annual compensation from the Company greater
than 50 percent of the amount in effect under Code Section 415(b)(1)(A) for the
calendar year in which any such Plan Year ends. Not more than 50 Employees (or,
if fewer, the greater of three Employees or ten percent of the Employees not
excluded under Code Section 414(q)(8)), including those Employees included
under paragraphs (B), (C) and (D) below, will be considered as officers for
purposes of this subparagraph.

 

(B)           One
of the ten Employees having an annual Compensation from the Employer greater
than the amount in effect under Code Section 415(c)(1)(A) for the calendar year
in which any such Plan Year ends and owning (or considered as owning within the
meaning of Code Section 318) both more than a one-half percent interest and the
largest interests in the Company.

 

(C)           A
“five-percent owner” (as defined in Code Section 416(i)) of the Employer.

 

(D)          A
“one-percent owner” (as defined in Code Section 416(i)) of the Employer having
an annual Compensation from the Employer of more than $150,000 for a Plan Year.

 

Neither the aggregation rules nor the rules
under Code Sections 414(b), (c) and (m) will apply in determining whether an
Employee is a five-percent owner or a one-percent owner.

 

(6)           For
Plan Years commencing on or after January 1, 2002, “Key Employee” means an
Employee or former 

Employee (and, in the case of a deceased
former Employee, his or her Beneficiary under the Plan) where the Employee or
former Employee, during the Plan Year containing the Determination Date, is
either:

 

(A)          an
officer of the Employer whose annual Compensation from the Employer exceeds
$130,000 (adjusted in the manner stated in Code Section 416(i)), provided that
no more than 50 Employees shall be considered officers;

 

(B)           a
five-percent owner of the Employer (as defined above); or

 

(C)           a
one-percent owner of the Employer (as defined above) whose annual Compensation
from the Employer exceeds $150,000.

 

59

 

For purposes of paragraphs (B) and (C) above,
an Employee will be deemed to own stock held for his or her benefit by a
partnership, estate, trust or corporation to the extent provided under Code
Section 318(a)(2), but subparagraph (C) of that Code Section shall be applied
by substituting 5% instead of 50%.

 

(7)           “Non-key
Employee” means an Employee (and any Beneficiary of an Employee) who is not a
Key Employee.

 

(8)           “Permissive
Aggregation Group” means the Required Aggregation Group of plans plus any other
plan or plans of the Company which, when considered as a group with the
Required Aggregation Group, would continue to satisfy the requirements of Code
Sections 401(a)(4) and 410.

 

(9)           “Required
Aggregation Group” means:

 

(A)          Each
stock bonus, pension, or profit sharing plan of the Employer in which a Key
Employee participates in the Plan Year containing the Determination Date or any
of the four preceding Plan Years which is intended to qualify under Code
Section 401(a); and

 

(B)           Each
other such stock bonus, pension or profit sharing plan of an employer which
enables any plan in which a Key Employee participates to meet the requirements
of Code Sections 401(a)(4) or 410.

 

(10)         “Top-Heavy
Group” means the Aggregation Group if the sum of (1) and (2) below exceeds 60%
of a similar sum determined for all Employees (excluding former Key Employees
and individuals who have not performed any services for the Employer during the
five year period ending on the Determination Date):

 

(A)          The
present value of the cumulative accrued benefit for Key Employees under all
defined benefit plans included in such group.

 

(B)           The
aggregate of the accounts of Key Employees under all defined contribution plans
included in such group.In a Top-Heavy Group, all plans in the Required
Aggregation Group are Top-Heavy regardless of whether or not the individual
plans are Top-Heavy.

 

(c)           Modification
of Vesting Schedule

 

If the Plan is a Top-Heavy Plan in a Plan
Year, a Participant who is credited with an Hour of Service in such Plan Year
will have his or her Vested Percentage for Accrued Benefit Attributable to
Company Contributions determined in accordance with the following schedule if
it produces a higher Vested Percentage than the schedule in Section 6.1.

 

60

 

	
  Years of Vesting Service

  	
   

  	
  Vested Percentage

  
	
  Less than 2

  	
   

  	
  0

  	
  %

  
	
  2

  	
   

  	
  20

  	
  %

  
	
  3

  	
   

  	
  40

  	
  %

  
	
  4

  	
   

  	
  60

  	
  %

  
	
  5

  	
   

  	
  80

  	
  %

  
	
  6 or more

  	
   

  	
  100

  	
  %

  

 

A Participant’s vested Accrued Benefit
Attributable to Company Contributions will not be less than that determined as
of the last day of the last Plan Year in which the Plan was a Top-Heavy Plan.

 

If the Plan ceases to be Top-Heavy, each
Participant with three or more Years of Vesting Service (determined as of the
first day of the Plan Year in which the Plan ceases to be Top- Heavy) will
continue to have his or her Vested Percentage for Accrued Benefit Attributable
to Company Contributions determined in accordance with this subsection (c).

 

(d)           Minimum Benefit

 

If the Plan is Top-Heavy in a Plan Year, the
Accrued Benefit as of the last day of such Plan Year for any Participant who is
not a Key Employee, but who is employed or on an Authorized Period of Absence
in such Plan Year, will not be less than the Actuarial Equivalent of an annual
benefit payable in the form of a straight life annuity beginning on the
Participant’s Normal Retirement Date equal to the lesser of (i) two percent of
the Participant’s Average Compensation multiplied by Years of Vesting Service
or (ii) twenty percent of the Participant’s Average Compensation. For purposes
of this subsection (d), any Years of Vesting Service will be disregarded if:

 

(1)           the
Plan was not a Top-Heavy Plan for any Plan Year ending during such Years of
Vesting Service, or

 

(2)           such
Year of Vesting Service ended in a Plan Year beginning before January 1, 1984.

 

A Participant’s Accrued Benefit as of any
subsequent date will not be less than that determined as of the last day of the
Plan Year in which the Plan was a Top-Heavy Plan.

 

(e)           Modification
of Maximum Benefit

 

For Plan Years commencing prior to January 1,
2000, if the Plan is a Top-Heavy Plan in a Plan Year, Sections
11.2(i)(1)(B)  and 11.2(i)(2)(B) will be
amended for such Plan Year by substitution of “100%” for “125%” where such
percentage appears therein.

 

61

 

(f)            Collective
Bargaining Agreements

 

The provisions of subsections (c) and (d)
shall not apply to any Employee included in a group of Employees covered by an
agreement which the Secretary of Labor finds to be a collective bargaining
agreement between employee representatives and one or more employers, including
the Employer, if there is evidence that retirement benefits were the subject of
good faith bargaining between such employee representatives and such
employer(s).

 

62

 

Article 12

 

ADMINISTRATION OF THE PLAN

 

12.1         Administration

 

(a)           The
Retirement Committee (“Committee”) will consist of three or more individuals
who will be appointed by the Board of Directors of Zions. The Committee will
serve as Plan “administrator” (as that term is defined by ERISA). The Committee
will have complete control of the administration of the Plan, subject to the
provisions hereof, with all powers necessary to enable it to carry out its
duties properly in that respect. Not in limitation, but in amplification of the
foregoing, it will have the power to interpret the Plan and to determine all
questions that may arise hereunder, including all questions relating to the
eligibility of Employees to participate in the Plan and the amount of benefit
to which any Participant or Beneficiary may become entitled. Its decisions upon
all matters within the scope of its authority will be final.

 

(b)           The
Committee will establish rules and procedures to be followed by Participants
and Beneficiaries in filing applications for benefits, in furnishing and
verifying proofs necessary to determine age or marital status, and in any other
matters required to administer the Plan.

 

(c)           The
Committee will receive all applications for benefits and will determine all
facts necessary to establish the right of the applicant to benefits under the
provisions of the Plan and the amount thereof.

 

(d)           The
Committee will maintain accounts showing the fiscal transactions of the Plan,
and will keep data required for the valuation of the assets and liabilities of
the Plan. The Committee will also prepare an annual report showing in
reasonable detail the assets and liabilities of the Plan and giving a brief
account of the operation of the Plan for each year. The Committee will make the
annual report available to each Participant as required by law.

 

(e)           The
Committee will appoint an enrolled actuary to make actuarial valuations of the
liabilities of the Plan, to recommend the amount of contributions to be made by
the Company and to perform such other services as the Committee will deem
necessary or desirable in connection with the administration of the Plan. The
Committee may also appoint such accountants, counsel, consultants and other
persons the Committee deems necessary or desirable in connection with the
administration of the Plan.

 

(f)            The
Committee will have the power to appoint or remove any Investment Manager or
Managers and to manage (including the power to acquire and dispose of) any
assets of the Plan.

 

(g)           The
Committee will have the power to appoint or remove the Trustee.

 

(h)           The
Committee will be entitled to rely upon all tables, valuations, certificates
and reports furnished by the accountant, consultant, administrator or actuary
appointed

 

63

 

by the Committee and upon all opinions given
by any counsel selected or approved by it.

 

12.2         Records

 

All acts and determinations of the Committee
and the Company regarding this Plan will be duly recorded and all such records,
together with such other documents as may be necessary for the administration
of the Plan, will be preserved in the custody of the Committee (or a designee
appointed by the Committee).

 

12.3         Payment of Expenses

 

All expenses that arise in connection with
the administration of the Plan, including, but not limited to, the compensation
of any enrolled actuary, accountant, legal counsel, consultant or other person
who will be employed by the Committee in connection with the administration
thereof, may, to the extent that it is lawful to do so under ERISA, be paid
from the assets of the Plan.

 

12.4         Delegation of Authority

 

The administrative duties and
responsibilities set forth in Section 12.1 may be delegated by the Committee in
whatever manner and extent it chooses to such person or persons as it selects.
It will notify Zions and the Trustee of the authority conferred upon such
person or persons.

 

12.5         Information Available

 

Any Participant in the Plan or any
Beneficiary receiving benefits under the Plan may examine copies of the summary
plan description, latest annual report, any bargaining agreement, the Plan
document, the Trust Agreement or any other governing instruments under which
the Plan is operated. The Committee will maintain all of these items in its
office, or in such other place or places as it may designate from time to time
for examination during reasonable business hours. Upon the written request of a
Participant or Beneficiary receiving benefits under the Plan, the Committee
will furnish a copy of any item listed in this Section. The Committee may make
a reasonable charge to the requesting person for the copy furnished.

 

12.6         Claims and Appeals Procedure

 

(a)           The
Committee will adopt procedures for the resolving of claims for benefits and
for the appeal and review of the denial of such claims by the Committee.
Detailed information regarding such procedures may be obtained by writing to
the Retirement Committee.

 

(b)           Each
claim for benefits will be decided by one or more persons, a committee or other
claims administrator designated by the Committee (such designated party is
referred to in this Section as the “Claims Administrator”). The Claims
Administrator will give the claimant written notice of the disposition of a
claim within 90 days after the claim has been filed, unless special
circumstances require an extension of time for processing, in which case such
notice of disposition shall be given within 180 days after the application has
been filed. If a claim is denied

 

64

 

in whole or in part, the Claims Administrator
shall give the claimant a written explanation of the reasons for the denial.

 

(c)           A
claimant wishing a review of a denied claim may submit an appeal in writing in
a manner acceptable to the “Appeals Administrator”, which shall be the
Committee or a person, committee or other administrator designated by the
Committee. The deadline for submitting any such appeal to the Appeals Administrator
shall be 60 days after receipt of the written notification of the denial of the
claim, as described above.

 

(d)           Within
60 days following the receipt of the notice of appeal, the Appeals
Administrator will give the claimant either (i) a written notice of the
decision of the Appeals Administrator, or (ii) if special circumstances require
an extension of time for review, a notice of a 60-day extension of the review
period. In the latter case, the notice of the decision of the Appeals
Administrator shall be delivered to the claimant within 120 days after the
appeal has been delivered by the claimant. Effective January 1, 2002, the one
or more individuals who act as Appeals Administrator and who decide the appeal
shall not include any person who decided the initial claim, but a person who
decided the initial claim may participate in the discussion of the appeal.

 

(e)           The
Plan hereby delegates full and complete discretion to the Claims Administrator
and the Appeals Administrator:

 

(1)           to
make findings of fact pertaining to a claim or appeal;

 

(2)           to
interpret the Plan as applied to the facts; and

 

(3)           to
decide all aspects of the claim or appeal.

 

 

(f)            The
decision of the Appeals Administrator upon such a review of a denied claim,
(or, if the claimant fails to submit a timely appeal to the Appeals
Administrator, the decision of the Claims Administrator) will be final, subject
to any remedies which may be provided by law.

 

12.7         Fiduciary Capacity

 

Any person may serve in more than one
fiduciary capacity with respect to this Plan.

 

12.8         Committee Liability

 

The members of the Committee will use
ordinary care and diligence in the performance of their duties, but no member
will be personally liable by virtue of any contract, agreement, or other
instrument made or executed as a member of the Committee, nor for any mistake
of judgment made by him or her or by any other member, nor for any loss unless
resulting from willful misconduct or failure to exercise good faith. No member
of the Committee will be liable for the neglect, omission, or wrongdoing of any
other member or of the agents or counsel of the Committee. Zions will indemnify
(or cause one or more of the participating Companies to indemnify) each member
of the Committee against, and hold him or her harmless from any and all
expenses and liabilities arising out of any act or omission to act as a member
of the Committee, except such liabilities and expenses as are due to willful
misconduct or failure to exercise good faith.

 

65

 

Article 13

 

GENERAL PROVISIONS

 

13.1         Amendment of Plan

 

(a)                                  Zions may amend the
Plan at any time. In addition to the authority to amend the Plan in other
respects, Zions shall furthermore have the authority to adopt any remedial
retroactive changes to comply with the requirements of any law or regulation
issued by any governmental agency to which the Plan is subject. No amendment
will diminish or adversely affect any accrued interest or benefit of
Participants or their Beneficiaries, except as may be required to comply with
the requirements of any law or regulation issued by any governmental agency to
which the Company is subject.

 

(b)                                 If any amendment to
the Plan changes the vesting schedule, each Participant who is an Employee with
at least three Years of Vesting Service may elect to remain under the vesting
schedule of the Plan prior to such amendment. If the Participant does not make
the election within a reasonable time (as may be determined pursuant to
governmental regulations from time to time), such Participant will be subject
to the vesting schedule under the Plan as amended. In no event will the vesting
percentage of the Participant’s Accrued Benefit be reduced below the percentage
attained by the Participant prior to such amendment.

 

(c)                                  In no event will a
Participant who terminates or retires on or after the date any amendment to the
Plan is effective receive less than his or her vested percentage multiplied by
the Accrued Benefit prior to such date. This amount will be adjusted for the
date of retirement and form of payment on the basis in effect prior to such
amendment. This paragraph (c) shall not apply to the amendment to the basis for
determining the Actuarial Equivalent value for purposes of Section 5.8
effective June 1, 1995.

 

(d)                                 If any amendment to
the Plan eliminates an optional form of payment, a Participant may continue to
elect such form of payment with respect to any Accrued Benefit earned prior to
the effective date of such amendment.

 

13.2         Employment Status

 

Nothing contained in the Plan will be deemed
to give any Employee the right to be retained in the employ of the Employer or
to interfere with the rights of the Employer to discharge any Employee at any
time.

 

13.3         Mergers or Consolidations

 

If this Plan merges or consolidates with, or
transfers its assets or liabilities to any other qualified plan of deferred
compensation, no Participant will, as a result of such merger, consolidation or
transfer, be entitled to a benefit on the day following such event which is less
than the benefit to which he or she is entitled on the day preceding such
event. For purposes of this Section, the benefit to which a Participant is
entitled will be calculated 

 

66

 

based upon the assumption that a Plan
termination and distribution of assets occurred on the day as of which the
Participant’s entitlement is being determined.

 

13.4         Provision Against Anticipation

 

No benefit under the Plan will be subject in
any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, charge or other legal process, and any attempt to do so will be
void. The preceding sentence will not apply to a Qualified Domestic Relations
Order pursuant to Code Section 414(p).

 

13.5         Facility of Payment

 

If any Participant or Beneficiary is
physically or mentally incapable of giving a valid receipt for any payment due
him and no legal representative has been appointed for such Participant or
Beneficiary, the Committee may direct the Trustee to make such payment to any
person or institution maintaining such Participant or Beneficiary and the
release of such person or institution will be a valid and complete discharge
for such payment. Any final payment or distribution to any Participant, the
legal representative of the Participant, or to any Beneficiaries of such
Participant in accordance with the provisions herein will be in full
satisfaction of all claims against the Plan, the Committee, the Trustee and the
Company arising under or by virtue of the Plan.

 

13.6         Construction

 

The validity of the Plan or any of its
provisions will be determined under and will be construed according to federal
law and, to the extent permissible, according to the laws of the State of Utah.
If any provision of the Plan is held illegal or invalid for any reason, such
determination will not affect the remaining provisions of the Plan and the Plan
will be construed and enforced as if said illegal or invalid provision had
never been included.

 

13.7         Legal Actions

 

The Committee will be the necessary party to
any action or proceeding involving the assets held with respect to the Plan or
the administration thereof. No Employee, Participant, former Participant or
their Beneficiaries, or any other person having or claiming to have an interest
in the Plan will be entitled to any notice or process. Any final judgment that
may be entered in any such action or proceeding will be binding and conclusive
on all persons having or claiming to have any interest in the Plan.

 

67

 

SIGNATURE PAGE

 

This Zions Bancorporation Pension Plan, as restated effective as of
January 1, 2001, is hereby approved this 19th day of February, 2002, at Salt
Lake City, Utah.

 

	
   

  	
  ZIONS BANCORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By 

  	
  /s/ Harris H. Simmons

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 
  Harris H. Simmons

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 
  Pres. and CEO

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Diana M. Anderson

  	
   

  	
   

  	
   

  
	
  Name: 
  Diana M. Anderson

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title: 
  Vice President and Manager

  	
   

  	
   

  
						

 

68

 

APPENDIX
I: FACTORS FOR SPOUSE OPTION UNDER SECTION 5.7(A)

 

A Participant retiring at any age with a benefit in the form of a
Spouse Option (as described in Section 5.7(a)) will have the following factors
applied to his or her Accrued Benefit.

 

	
   

  	
   

  	
  Joint
  & Survivor Option

  	
   

  
	
   

  	
   

  	
  50%

  	
   

  	
  66 2/3%

  	
   

  	
  100%

  	
   

  
	
  Spouse same
  age as Employee

  	
   

  	
  .880

  	
   

  	
  .850

  	
   

  	
  .790

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  For each
  year the Spouse is younger than

  the Employee subtract

  	
   

  	
  -.005

  	
   

  	
  -.006

  	
   

  	
  -.008

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  For each
  year the Spouse is older than the

  Employee add

  	
   

  	
  .005

  	
   

  	
  .006

  	
   

  	
  .008

  	
   

  

 

The maximum adjustment for age differential is limited to 20 years.

 

69

 

APPENDIX
II: ACTUARIAL EQUIVALENCE FOR MONTHLY BENEFITS AND

LUMP SUMS

 

For the purpose of computing the annuity value of a Participant’s cash
balance account, the annuity value of a Participant’s Old Plan Account, and
lump sums:

 

(a)                                  The mortality
assumption is the “Applicable Mortality Table” (as defined below) which is
prescribed from time to time by the Secretary of the Treasury under Code
Section 417(e)(3).

 

(1)                                  For benefit
commencement dates on and after June 1, 1995 and prior to December 31, 2002,
the “Applicable Mortality Table” shall mean the applicable mortality table
prescribed by the Secretary of the Treasury in Rev. Rul. 95-6, which is the
1983 Group Annuity Mortality Table, weighted 50% male and 50% female (commonly
referred to as “GAM 83”).

 

(2)                                  For benefit
commencement dates on and after December 31, 2002, the “Applicable Mortality
Table” shall mean the applicable mortality table prescribed by the Secretary of
the Treasury in Rev. Rul. 2001-62.

 

(b)                                 The interest
assumption shall be the “Applicable Interest Rate”, which shall be the average
annual yield on 30-year U.S. Treasury constant maturities, as shown in the
Federal Reserve Statistical Release H.15 for the reference month. The reference
month shall be the month of -November of the calendar year prior to the Plan
Year in which the lump sum is paid or the monthly benefit commences.

 

(c)                                  In no event shall
such lump sum be less than the present value as of December 31, 1985 of a
Participant’s Accrued Benefit as of December 31, 1985 on the basis of the
following actuarial factors used prior to December 31, 1985 for purposes of
valuing a deferred annuity of $1 per year commencing at age 65 and payable in
monthly installments:

 

	
  Age

  	
   

  	
  Factor

  	
   

  	
  Age

  	
   

  	
  Factor

  
	
  32

  	
   

  	
  0.6404

  	
   

  	
  49

  	
   

  	
  2.4180

  
	
  33

  	
   

  	
  0.6920

  	
   

  	
  50

  	
   

  	
  2.6182

  
	
  34

  	
   

  	
  0.7479

  	
   

  	
  51

  	
   

  	
  2.8357

  
	
  35

  	
   

  	
  0.8082

  	
   

  	
  52

  	
   

  	
  3.0721

  
	
  36

  	
   

  	
  0.8735

  	
   

  	
  53

  	
   

  	
  3.3292

  
	
  37

  	
   

  	
  0.9441

  	
   

  	
  54

  	
   

  	
  3.6090

  
	
  38

  	
   

  	
  1.0205

  	
   

  	
  55

  	
   

  	
  3.9138

  
	
  39

  	
   

  	
  1.1031

  	
   

  	
  56

  	
   

  	
  4.2458

  
	
  40

  	
   

  	
  1.1925

  	
   

  	
  57

  	
   

  	
  4.6080

  
	
  41

  	
   

  	
  1.2892

  	
   

  	
  58

  	
   

  	
  5.0034

  
	
  42

  	
   

  	
  1.3939

  	
   

  	
  59

  	
   

  	
  5.4356

  
	
  43

  	
   

  	
  1.5073

  	
   

  	
  60

  	
   

  	
  5.9088

  
	
  44

  	
   

  	
  1.6301

  	
   

  	
  61

  	
   

  	
  6.4279

  
	
  45

  	
   

  	
  1.7632

  	
   

  	
  62

  	
   

  	
  6.9983

  
	
  46

  	
   

  	
  1.9075

  	
   

  	
  63

  	
   

  	
  7.6261

  
	
  47

  	
   

  	
  2.0639

  	
   

  	
  64

  	
   

  	
  8.3184

  
	
  48

  	
   

  	
  2.2337

  	
   

  	
  65

  	
   

  	
  9.0836

  

 

70

 

(d)                                 The minimum value of a
lump sum distribution to a Grossmont Participant who retires between January 1,
1998 and December 31, 1998 shall be determined under subsections (a) and (1)
above, except that the annual rate of interest on 30-year Treasury securities
described in subsection (1) shall be determined as of December 1997.

 

71

 

APPENDIX
III:  MINIMUM ACCRUED BENEFIT

 

Article 1

Definitions

 

Whenever used in this Appendix III, the following terms will have the
meanings set forth below, unless a different meaning is clearly required by the
context. Any capitalized terms that are used in this Appendix III, but that are
not defined below, will have the meaning set forth in Article I of the Plan,
unless a different meaning is clearly required by the context. References in
this Appendix to “Article” and “Section,” unless indicated otherwise, mean
Articles and Sections appearing in this Appendix III.

 

1.1           Covered
Compensation

 

Covered Compensation for a Plan Year means
the average of the Social Security Taxable Wage Bases for each year in the
35-year period ending with the last day of the year in which the Participant
attains (or will attain) Social Security Retirement Age as determined under the
exact tables provided by the Commissioner of Internal Revenue. Covered
Compensation for any Plan Year after 1991 will be equal to 1991 Covered
Compensation. Social Security Taxable Wage Base means the contribution and
benefit base in effect under Section 230 of the Social Security Act for the
specified calendar year.

 

For purposes of this Section 1.1, a
Participant’s Social Security Retirement Age is determined based on the
following table:

 

	
  Year of

  Birth

  	
   

  	
  Social
  Security

  Retirement Age

  
	
  Before 1938

  	
   

  	
  65

  
	
  1938 to 1954

  	
   

  	
  66

  
	
  1955 and
  after

  	
   

  	
  67

  

 

1.2           Credited Service

 

Credited Service means service used to
determine a Participant’s Accrued Benefit and is determined as follows:

 

(a)                                  Credited Service
shall be measured in calendar years and months. Each month shall be equal to
one-twelfth of a year of Credited Service. Except as otherwise stated in this
Section 1.2, Credited Service for Plan Years beginning after December 31, 1988
means the sum of an Employee’s calendar years and months (or parts thereof) as an
Eligible Employee during the period beginning on his or her Benefit Service
Date. For purposes of this section, Benefit Service Date means the later of:

 

(1)                                  the Participant’s
employment date,

 

(2)                                  the first day of the
month following the Participant’s 21st birthday, or

 

72

 

(3)                                  in the case of an
Employee who is not credited with at least 1,000 Hours of Service in his or her
first Eligibility Computation Period, the first day of the first Plan Year in
which the Employee is credited with at least 1,000 Hours of Service.

 

(b)                                 No Credited Service
will be earned during a Plan Year beginning after December 31, 1988 unless the
Employee completes at least 1,000 Hours of Service during that Plan Year except
as follows: (1) through the period ending on December 31, 1997 and for Plan
Year 2000, in order to earn Credited Service during the Plan Year in which the
Employee has a Benefit Service Date or during the Plan Year in which the
Employee retires or dies, the Employee must complete 83.33 Hours of Service
multiplied by the number of calendar months during such Plan Year in which the
Employee completes at least one Hour of Service; and (2) effective for the
1995-1997 and the 2000 Plan Years, the foregoing sentence shall also apply to a
Plan Year in which the Employee incurs a Termination of Employment.

 

(c)                                  Except as otherwise
stated in this Section 1.2, Credited Service for Plan Years beginning before
January 1, 1989 means benefit service as defined under the terms of the Plan in
effect on December 31, 1988.

 

(d)                                 Effective on and after
December 12, 1994, in any year in which a Participant accrues at least 1,000
Hours of Service, a Participant shall earn 190 Hours of Service, and one month
of Credited Service, for each month of the Participant’s Qualified Military
Service.

 

(e)                                  Credited Service will
not include service earned during a period for which Years of Vesting Service
are disregarded pursuant to Section 1.50(e) of the Plan.

 

(f)                                    In the case of an
Employee who is employed by an Affiliate or Subsidiary which either adopts this
Plan with the consent of the Company or merges with the Company, Credited
Service will not include service prior to the date of merger or adoption unless
an earlier date is specifically designated for this purpose by the Board of
Directors of Zions.

 

1.3           Final Average
Earnings

 

Final Average Earnings means the average of
the Participant’s Earnings as an Eligible Employee for the period of five
consecutive calendar years ending on or before December 31, 1991 which produces
the highest average. If the Participant has not been an Eligible Employee for
five years, Final Average Earnings means the average of the Participant’s
Earnings over the Participant’s full period of employment as an Eligible Employee
before December 31, 1991.

 

In determining Final Average Earnings, Plan
Years after 1988 during which the Participant earns fewer than 1,000 Hours of
Service will be disregarded while allowing the immediately prior Plan Year and
immediately subsequent Plan Year to be treated as though they are consecutive
years.

 

In determining Final Average Earnings,
Earnings will be annualized in the Plan Year of hire if the employee earned
1,000 Hours of Service during the one-year period beginning

 

73

 

on the Employee’s Employment Date. Earnings
are annualized by dividing actual earnings for the Plan Year (excluding
bonuses) by the number of months of actual earnings, then multiplying the
result by 12 then adding bonuses.

 

For purposes of calculating Final Average
Earnings, the $200,000 Earnings limitation that applies under Code Section
401(a)(17) for Plan Year 2002 and thereafter (subject to annual adjustment in
years following 2002) shall not be applied retroactively to any Plan Year prior
to 2002.

 

Article 2

Accrued Benefits

2.1           Prior Plan
Benefit Formula

 

A Participant’s monthly retirement income is
equal to one twelfth of the greater of:

 

(a)                                  the sum of:

 

(1)                                  the sum of the
following (determined by applying the Code Section 401(a)(17) limitations, as
adjusted, that were in effect in the respective year in which Earnings were
received, and not the $150,000 limitation which became effective thereafter):

 

(A)                              1.65% of Final Average
Earnings determined as of December 31, 1991 multiplied by Credited Service
earned as of December 31, 1991, and

 

(B)                                1.65% of Earnings for
each Plan Year beginning after December 31, 1991 and before January 1, 1994 in
which the Participant earns a full or partial year of Credited Service.

 

(2)                                  1.65% of Earnings
(determined by applying the Code Section 401(a)(17) limitations, as adjusted,
that were in effect in the respective year in which Earnings were received) for
each Plan Year after December 31, 1993 in which the Participant earns a full or
partial year of Credited Service.

 

(b)                                 the sum of the
following (determined by applying the Code Section 401(a)(17) limitations, as
adjusted, that were in effect in the respective year in which Earnings were
received, and not the $150,000 limitation which became effective thereafter):

 

(1)                                  1.15% of Final
Average Earnings up to Covered Compensation multiplied by Credited Service up
to 35 years.

 

(2)                                  1.65% of Final
Average Earnings in excess of Covered Compensation multiplied by Credited
Service up to 35 years.

 

(3)                                  1.0% of Final Average
Earnings multiplied by Credited Service in excess of 35 years.

 

74

 

(c)                                  the annual accrued
benefit on December 31, 1988 under the terms of the Plan as then in effect
determined without regard to the $200,000 or $150,000 limitations under Section
1.18(c) of the Plan.

 

A Participant will receive an Accrued Benefit
for any full or partial years of Qualified Military Service.

 

2.2           Minimum Accrued
Benefit

 

The minimum accrued benefit is the amount
determined under Section 2.1 of this Appendix, for Credited Service before
January 1, 1998, except Earnings for 1997 will be Earnings during the period
from January 1, 1997 to March 31, 1997.

 

2.3           Grandfathered
Minimum Accrued Benefit

 

The minimum grandfathered accrued benefit is
the amount determined under Section 2.1 of this Appendix; provided, however,
that, effective January 1, 2002 for a Participant with at least an Hour or
Service on or after that date, the minimum grandfathered accrued benefit shall
take into account any Credited Service and Earnings which may be accrued or
earned by an Active Participant until the earliest to occur of December 31,
2006, the Participant’s Termination of Employment or the date of any
termination of, or cessation of accruals under, the Plan..

 

Article 3

Minimum Early Retirement Benefits

 

The minimum early retirement benefit equals the greater of the amount
in Section 2.2 and 2.3 of this Appendix, reduced by 1/3 of 1% for each month by
which the Early Retirement Date precedes the Normal Retirement Date.

 

Article 4

Minimum Death Benefit

 

4.1           Death After
Eligibility for Retirement

 

If a Participant (other than a Retired
Participant) dies on or after the earliest date on which he or she could retire
in accordance under the Plan, his or her Eligible Spouse, if any, will receive
a monthly benefit equal to the amount the Eligible Spouse would have been
entitled to under Article 2 of this Appendix if the Participant had elected the
50% Spouse Option and retired on the first day of the month coinciding with or
following the date of death. This benefit will be payable monthly to the
Eligible Spouse beginning on the first day of the month coinciding with or next
following the Participant’s death and will continue until the death of the
Eligible Spouse.

 

4.2           Death Before
Eligibility for Retirement

 

If a Participant who has a vested interest in
his or her Accrued Benefit dies prior to the earliest date on which the
Participant could retire under the Plan, his or her Eligible Spouse, if any,
will receive a monthly benefit equal to the amount the Eligible Spouse would
have been entitled to under Article 2 of this Appendix if the Participant had:

 

75

 

(a)                                  terminated employment
on his or her date of death (if the Participant was an Employee on the date of
death),

 

(b)                                 survived to the
earliest date on which he or she could retire in accordance with Article 3 of
this Appendix (the “Earliest Retirement Date”),

 

(c)                                  elected the 50% Spouse
Option and retired on such Earliest Retirement Date, and

 

(d)                                 died immediately after
retiring.

 

This benefit will be payable monthly to the
Eligible Spouse beginning on the Participant’s Earliest Retirement Date and
will continue until the death of the Eligible Spouse.

 

4.3           Alternate Death
Benefit For Old Plan Accounts

 

In lieu of the benefit described in Sections
4.1 or 4.2 of this Appendix, the Eligible Spouse of a Participant who has an
Old Plan Account may elect to receive payment of the Old Plan Account as a lump
sum payment as soon a practicable after the Participant’s death. The
Participant’s Accrued Benefit Attributable to Company Contributions will be
paid in accordance with (a) or (b) of Section 4.4 of this Appendix below,
whichever applies.

 

4.4           Other

 

(a)                                  Benefits under this
Article will be paid as soon as practicable after the Participant’s death
except that the Eligible Spouse may elect to defer commencement of the benefit
described in Sections 4.1, 4.2, or 4.3 of this Appendix until any date which is
before the Participant’s Normal Retirement Date. An Eligible Spouse who makes
an election under Section 4.3 of this Appendix may not defer receipt of the Old
Plan Account.

 

(b)                                 The benefit under
Sections 4.1 or 4.2 of this Appendix will apply to Terminated Vested
Participants even if their Termination of Employment occurred prior to the
effective date of these paragraphs.

 

76

 

APPENDIX
IV: ACQUISITION EFFECTIVE DATES

 

“Acquisition Effective Date” means the date described below:

 

	
  Acquisition

  	
   

  	
  Effective
  Date

  
	
  Southern Arizona Bancorp, Inc.

  	
   

  	
  May 31, 1996

  
	
  Farm Investment Division

  	
   

  	
  January 3, 1997

  
	
  Howerth

  	
   

  	
  January 17,1997

  
	
  Aspen Bancshares, Inc.

  	
   

  	
  May 16, 1997

  
	
  Pitkin County Bank

  	
   

  	
  May 19, 1997

  
	
  Centennial Savings Bank

  	
   

  	
  May 19, 1997

  
	
  Valley National Bank

  	
   

  	
  May 19, 1997

  
	
  Kelling, Northcross, & Nobriga, Inc.

  	
   

  	
  July 7, 1997

  
	
  Tri-State Bank

  	
   

  	
  July 11, 1997

  
	
  Wells Fargo Bank (branches)

  	
   

  	
  July 19, 1997

  
	
  Sun-State Bank

  	
   

  	
  October 17, 1997

  
	
  Grossmont Bank

  	
   

  	
  January 1, 1998

  
	
  Vectra Banking Corporation

  	
   

  	
  January 6, 1998

  
	
  Sky Valley Bank Corporation

  	
   

  	
  January 23, 1998

  
	
  Tri-State Financial Corporation

  	
   

  	
  February 27, 1998

  
	
  FP Bancorp, Inc.

  	
   

  	
  May 26, 1998

  
	
  SBT Bankshares, Inc.

  	
   

  	
  June 1, 1998

  
	
  Routt County National Bank Corporation

  	
   

  	
  June 1, 1998

  
	
  Kersey Bancorp

  	
   

  	
  August 31, 1998

  
	
  Eagle Bank

  	
   

  	
  August 31, 1998

  
	
  Commerce Bancorporation

  	
   

  	
  January 1, 1999

  
	
  Sumitomo Bank of California

  	
   

  	
  October 1, 1998

  
	
  Mountain Financial Holding Co.

  	
   

  	
  October 30, 1998

  
	
  Citizens Banco, Inc.

  	
   

  	
  December 1, 1998

  
	
  Barlow Insurance, Inc.

  	
   

  	
  January 14, 1999

  
	
  TradeWave

  	
   

  	
  May 6, 1999

  
	
  Regency Bancorp

  	
   

  	
  October 6, 1999

  
	
  Pioneer Bancorporation

  	
   

  	
  October 18, 1999

  
	
  County Bank

  	
   

  	
  July 28, 2000

  
	
  Draper Bancorp

  	
   

  	
  January 26, 2001

  
	
  Eldorado Bancshares, Inc.

  	
   

  	
  March 30, 2001

  
	
  Antelope Valley Bank

  	
   

  	
  March 30, 2001

  
	
  Pacific Century Financial Corporation

  	
   

  	
  April 2, 2001

  
	
  icomXpress

  	
   

  	
  July 19, 2001

  
	
  thinkXML

  	
   

  	
  July 19, 2001

  
	
  E-Lock Technologies

  	
   

  	
  July 19, 2001

  
	
  Leifer Capital

  	
   

  	
  September 4, 2001

  
	
  (Branches of) Washington Federal, Inc.

  	
   

  	
  October 25, 2001

  
	
  Minnequa Bancorp, Inc.

  	
   

  	
  November 9, 2001

  

 

77

 

APPENDIX V: 
DEFINITION OF “COMPANY”

 

As stated in Section 1.14 of the Plan, the term “Company” means each of
the following corporations or partnerships, each of which has adopted this
Plan, and is, as of January 1, 2002, a participating Company in the Plan:

 

California Bank and Trust

 

Commerce Bank of Washington National Association

 

Digital Signature Trust Co.

 

Lexign Inc.

 

National Bank of Arizona

 

Nevada State Bank

 

Phaos Technology Corporation

 

Vectra Bank of Colorado National Association

 

Zions Bancorporation

 

Zions First National Bank

 

Zions Credit Corporation

 

Zions Insurance Agency, Inc.

 

Zions Investment Securities, Inc.

 

Zions Management Services Company

 

78<Page>
                                                                     EXHIBIT 4.2

        NUMBER                   TRAVELOCITY.COM                    SHARES
                           A  S a b r e  C o m p a n y
INCORPORATED UNDER THE         TRAVELOCITY.COM INC.           CUSIP 893953 10 9
         LAWS                                                  SEE REVERSE FOR
   OF THE STATE OF                                           CERTAIN DEFINITIONS
       DELAWARE

THIS CERTIFIES THAT

is the owner of

FULLY PAID AND NON-ASSESSABLE SHARES OF THE COMMON STOCK, PAR VALUE $0.0001, OF

                              TRAVELOCITY.COM INC.

transferable on the books of the Corporation by the holder hereof in person or
by duly authorized attorney, upon surrender of this certificate, properly
endorsed.

    This certificate is not valid until countersigned and registered by the
Transfer Agent and Registrar.

    WITNESS the facsimile seal of the Corporation and the facsimile signatures
of its duly authorized officers.

Dated:

                              TRAVELOCITY.COM INC.
                                   CORPORATE
                                      SEAL        PRESIDENT AND CHIEF EXECUTIVE
         CORPORATE SECRETARY        DELAWARE                            OFFICER

COUNTERSIGNED AND REGISTERED:
EQUISERVE TRUST COMPANY, N.A.
TRANSFER AGENT
AND REGISTRAR
BY
AUTHORIZED SIGNATURE

<Page>

    THE CORPORATION WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO
REQUESTS, A FULL STATEMENT OF THE DESIGNATIONS, PREFERENCES AND RELATIVE,
PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OR
SERIES THEREOF AUTHORIZED TO BE ISSUED AND THE QUALIFICATIONS, LIMITATIONS OR
RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS.

    The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM -as tenants in common       UNIF GIFT MIN ACT- _______ Custodian _______
TEN ENT -as tenants by the entireties                  (Cust)            (Minor)
JT TEN  -as joint tenants with right of
         survivorship and not as tenants in common
                                                    under Uniform Gifts to
                                                    Minors
                                                    Act
                                                    ____________________________
                                                    (State)

    Additional abbreviations may also be used though not in the above list.

    FOR VALUE RECEIVED, __________________________________HEREBY SELL, ASSIGN
AND TRANSFER UNTO

      PLEASE INSERT SOCIAL SECURITY OR OTHER
          IDENTIFYING NUMBER OF ASSIGNEE

   __________________________________________________________________________
  (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING ZIP CODE OF ASSIGNEE)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
SHARES OF THE CAPITAL STOCK REPRESENTED BY THE WITHIN CERTIFICATE, AND DO HEREBY
IRREVOCABLY CONSTITUTE AND APPOINT
________________________________________________________________________________
ATTORNEY TO TRANSFER THE SAID STOCK ON THE BOOKS OF THE WITHIN NAMED COMPANY
WITH FULL POWER OF SUBSTITUTION IN THE PREMISES.
DATED ____________________

________________________________________________________________________________

NOTICE:

THE SIGNATURE TO THE ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON
THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR
ENLARGEMENT OR ANY CHANGE WHATEVER.

Signature(s) Guaranteed:

________________________________________________________________________________
THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION
(BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH
MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO
S.E.C. RULE 17Ad-15.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]