Document:

Exhibit
10.12

 

 

 

 

 

 

 

 

INTERNATIONAL
HOUSE OF PANCAKES

 

EMPLOYEE
STOCK OWNERSHIP PLAN

 

 

As
Amended and Restated Effective as of January 1, 2001

 

 

 

 

 

 

 

 

TABLE
OF CONTENTS

 

	
  SECTION

  	
   

  
	
   

  	
   

  
	
  1.  Nature of the Plan

  	
   

  
	
   

  	
   

  
	
  2.  Definitions

  	
   

  
	
   

  	
   

  
	
  3.  Eligibility and Participation

  	
   

  
	
   

  	
   

  
	
  4.  Employer Contributions

  	
   

  
	
   

  	
   

  
	
  5.  Investment of Trust Assets

  	
   

  
	
   

  	
   

  
	
  6.  Allocations to Participants’ Accounts

  	
   

  
	
   

  	
   

  
	
  7.  Allocation Limitation

  	
   

  
	
   

  	
   

  
	
  8.  Voting IHOP Stock; Tender Offers

  	
   

  
	
   

  	
   

  
	
  9.  Disclosure to Participants

  	
   

  
	
   

  	
   

  
	
  10.  Vesting and Forfeitures

  	
   

  
	
   

  	
   

  
	
  11.  Credited Service and Break in Service

  	
   

  
	
   

  	
   

  
	
  12.  When Capital Accumulation Will Be
  Distributed

  	
   

  
	
   

  	
   

  
	
  13.  In-Service Distributions

  	
   

  
	
   

  	
   

  
	
  14.  How Capital Accumulation Will Be Distributed

  	
   

  
	
   

  	
   

  
	
  15.  Leveraging Provisions

  	
   

  
	
   

  	
   

  
	
  16.  No Assignment of Benefits

  	
   

  
	
   

  	
   

  
	
  17.  Administration

  	
   

  
	
   

  	
   

  
	
  18.  Claims Procedure

  	
   

  
	
   

  	
   

  
	
  19.  Limitation on Participants’ Rights

  	
   

  
	
   

  	
   

  
	
  20.  Future of the Plan

  	
   

  
	
   

  	
   

  
	
  21.  “Top-Heavy” Contingency Provisions

  	
   

  
	
   

  	
   

  
	
  22.  Governing Law

  	
   

  
	
   

  	
   

  
	
  23.  Execution

  	
   

  

 

 

 

INTERNATIONAL
HOUSE OF PANCAKES

 

EMPLOYEE
STOCK OWNERSHIP PLAN

 

 

As
Amended and Restated Effective as of January 1, 2001

 

 

 

Section 1.  Nature of the Plan

 

The purpose of this Plan is
to enable participating Employees to share in the growth and prosperity of IHOP
Corp. (“IHOP”), to provide Participants with an opportunity to accumulate
capital for their future economic security and to enable Participants to
acquire stock ownership interests in IHOP. 
Therefore, the Plan is designed to invest primarily in IHOP Stock.

The Plan, originally adopted
effective as of May 7, 1987, and amended and restated in connection with
the initial public offering of IHOP Stock, effective as of July 12, 1991,
is hereby amended and restated effective as of January 1, 2001.  The Plan is a stock bonus plan under Section
401(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and an
employee stock ownership plan under Section 4975(e)(7) of the Code.

In order to satisfy
applicable requirements of the Code, as amended by the Small Business Job
Protection Act of 1996, the last sentence in Section 3(c) is amended effective
as of December 12, 1994, the definition of “Compensation,” “Employee” and
“Highly Compensated Employee” are amended effective as of the first day of
the  1997 Plan Year.  In order to satisfy applicable requirements
of the Code, as amended by the Taxpayer Relief Act of 1997, the last sentence
of Section 12(a) is amended effective as of the first day of the 1998 Plan
Year.  All Trust Assets held under the
Plan will be administered, distributed, forfeited and otherwise governed by the
provisions of this Plan and the related Trust Agreement.  The Plan is 

 

 

1

 

administered by an Administrative Committee
for the exclusive benefit of Participants (and their Beneficiaries).

 

Section 2.  Definitions

 

In this Plan, whenever the
context so indicates, the singular or plural number and the masculine, feminine
or neuter gender shall be deemed to include the other, the terms “he,” “his”
and “him” shall refer to a Participant, and the capitalized terms shall have
the following meanings:

 

	
  Account

  	
   

  	
  One of two accounts
  maintained to record the interest of a Participant.  See Section 6.

  
	
   

  	
   

  	
   

  
	
  Allocation Date

  	
   

  	
  For Plan Years beginning
  before January 1, 2001, the Sunday closest to December 31st
  of each year (the last day of each Plan Year).  For Plan Years beginning on or after January 1, 2001,
  December 31st (the last day of the Plan Year).

  
	
   

  	
   

  	
   

  
	
  Affiliate

  	
   

  	
  Any corporation which is a
  member of a controlled group of corporations (within the meaning of Section
  414(b) of the Code) or a group of trades or businesses (whether or not
  incorporated) that are under common control (within the meaning of Section
  414(c) of the Code) of which IHOP Corp. is also a member.

  
	
   

  	
   

  	
   

  
	
  Approved Absence

  	
   

  	
  A leave of absence
  (without pay) granted to an Employee by IHOP under its established leave
  policy, including unpaid leave under the Family and Medical Leave Act of
  1993.  See Section 3(c).

  
	
   

  	
   

  	
   

  
	
  Beneficiary

  	
   

  	
  The person (or persons)
  entitled to receive any benefit under the Plan in the event of a
  Participant’s death.  See Section
  14(b).

  
	
   

  	
   

  	
   

  
	
  Board of Directors

  	
   

  	
  The Board of Directors of
  IHOP Corp.

  

 

 

2

 

	
  Break in Service

  	
   

  	
  A period of time
  commencing with the date on which an Employee’s Service terminates and ending
  on the date he resumes Service.  See
  Section 11(b).

  
	
   

  	
   

  	
   

  
	
  Capital Accumulation

  	
   

  	
  A Participant’s vested,
  nonforfeitable interest in his Accounts under the Plan.  Each Participant’s Capital Accumulation
  shall be determined in accordance with the provisions of Section 10 and
  distributed as provided in Sections 12, 13 and 14.

  
	
   

  	
   

  	
   

  
	
  Code

  	
   

  	
  The Internal Revenue Code
  of 1986, as amended.

  
	
   

  	
   

  	
   

  
	
  Committee

  	
   

  	
  The Administrative
  Committee appointed by the Board of Directors to administer the Plan.  See Section 17.

  
	
   

  	
   

  	
   

  
	
  Compensation

  	
   

  	
  The compensation of a
  Participant received from IHOP during the calendar year ending on or about
  the end of the Plan Year, as reported on the Participant’s Wage and Tax
  Statement (Form W-2), including amounts paid in cash as salary, wages,
  bonuses, overtime pay, tips and taxable fringe benefits as well as the amount
  of any elective deferrals made on a Participant’s behalf by IHOP to the
  401(k) Plan for the Plan Year and any amounts withheld by IHOP pursuant to a
  “cafeteria plan” under Section 125 of the Code, but excluding any amount in
  excess of $200,000 ($170,000 for Plan Years ending on or before
  December 31, 2001) as adjusted after 2002 for increases in the cost of
  living pursuant to Section 401(a)(17) of the Code.

  
	
   

  	
   

  	
   

  
	
  Credited Service

  	
   

  	
  The elapsed period of an
  Employee’s Service.  See Section
  11(a).

  
	
   

  	
   

  	
   

  
	
  Disability

  	
   

  	
  The incapability of an
  Employee to perform his duties as an Employee as a result of a medically
  determinable physical or mental impairment that may be expected to result in
  death or to be of long, continued duration, determined by the Committee based
  upon the opinion of a physician approved by the Committee.  The decision of the Committee made in good
  faith shall be final.

  

 

 

3

 

	
  Discretionary
  Contributions

  	
   

  	
  Employer Contributions
  made in amounts determined by the Board of Directors.  See Section 4(a) and (b).

  
	
   

  	
   

  	
   

  
	
  Employee

  	
   

  	
  Any individual who is
  treated as a common-law employee by IHOP; provided, however, that an
  independent contractor (or other individual) who is reclassified as a common
  law employee on a retroactive basis shall not be treated as having been an
  Employee for purposes of the Plan for any period prior to the date that he is
  so reclassified.  A “leased employee”
  is not an Employee for purposes of the Plan. 
  For this purpose, a “leased employee,” as described in Section
  414(n)(2) of the Code, is any individual who is not treated as a common-law
  employee of IHOP or an Affiliate and who provides services to IHOP or an
  Affiliate if (A) such services are provided pursuant to an agreement
  between IHOP or an Affiliate and a leasing organization, (B) such
  individual has performed services for IHOP or an Affiliate on a substantially
  full-time basis for a period of at least one year, and (C) such services
  are performed under the primary direction or control of IHOP or an Affiliate.

  
	
   

  	
   

  	
   

  
	
  Employer Contributions

  	
   

  	
  Payments made to the Trust
  by IHOP.  See Section 4.

  
	
   

  	
   

  	
   

  
	
  ERISA

  	
   

  	
  The Employee Retirement
  Income Security Act of 1974, as amended.

  
	
   

  	
   

  	
   

  
	
  401(k) Plan

  	
   

  	
  A plan (if any) maintained
  by IHOP which is a profit sharing plan under Section 401(a) of the Code that
  includes a “cash or deferred arrangement” under Section 401(k) of the Code.

  

 

 

4

 

	
  Fair Market Value

  	
   

  	
  The fair market value of
  IHOP Stock, determined by the Committee by reference to prevailing market
  prices on the National Association of Securities Dealers Automated Quotation
  System, National Market System; provided, that, if IHOP Stock is traded on a
  national securities exchange which is registered under Section 6 of the
  Securities Exchange Act of 1934, fair market value shall be determined by
  reference to prevailing market prices on such exchange.

  
	
   

  	
   

  	
   

  
	
  Forfeiture

  	
   

  	
  The nonvested portion of a
  Participant’s Accounts which does not become part of his Capital Accumulation
  and which is forfeited under Section 10(b).

  
	
   

  	
   

  	
   

  
	
  Highly Compensated
  Employee

  	
   

  	
  An Employee who
  (1) was a “5% owner” (as defined in Section 416(i)(1)(B)(i) of the Code)
  at any time during the Plan Year or the preceding Plan Year, or
  (2) received Compensation in excess of $85,000 in the preceding Plan
  Year and, if so elected by IHOP Corp., was in the top-paid 20% group of
  Employees for such preceding Plan Year; provided, however, that if such
  “top-paid group” election is made by IHOP Corp. for any Plan Year, the
  “top-paid group” election must also be applied to all employee benefit plans
  maintained by IHOP or an Affiliate. 
  The $85,000 amount shall be adjusted after 2001 for increases in the
  cost of living pursuant to Section 414(q)(1) of the Code.

  
	
   

  	
   

  	
   

  
	
  Hour of Service

  	
   

  	
  Each hour of Service for
  which an Employee is credited under the Plan, as described in Section 3(d).

  
	
   

  	
   

  	
   

  
	
  IHOP

  	
   

  	
  IHOP Corp., a Delaware
  corporation, International House of Pancakes, Inc., a Delaware corporation,
  and any other Affiliate which is designated by the Board of Directors and
  which adopts the Plan for the benefit of its Employees.

  

 

 

5

 

	
  IHOP Stock

  	
   

  	
  Shares of Common Stock,
  par value $.01 per share, issued by IHOP Corp.

  
	
   

  	
   

  	
   

  
	
  IHOP Stock Account

  	
   

  	
  The Account which reflects
  each Participant’s interest in IHOP Stock held under the Plan.  See Section 6.

  
	
   

  	
   

  	
   

  
	
  Other Investments Account

  	
   

  	
  The Account which reflects
  each Participant’s interest under the Plan attributable to Trust Assets other
  than IHOP Stock.  See Section 6.

  
	
   

  	
   

  	
   

  
	
  Participant

  	
   

  	
  Any Employee or former
  Employee who has met the applicable eligibility requirements of Section 3(a)
  and who has not yet received a complete distribution of his Capital
  Accumulation.

  
	
   

  	
   

  	
   

  
	
  Plan

  	
   

  	
  The International House of
  Pancakes Employee Stock Ownership Plan, which includes this Plan and the
  related Trust Agreement.

  
	
   

  	
   

  	
   

  
	
  Plan Year

  	
   

  	
  Before January 1,
  2001, the 52— or 53-week period ending on each Allocation Date (and
  coinciding with each fiscal year of IHOP Corp.), which period shall also be
  the “limitation year” for purposes of Section 415 of the Code.  On and after January 1, 2001, the
  calendar year.

  
	
   

  	
   

  	
   

  
	
  Retirement

  	
   

  	
  Termination of Service
  after attaining age 65.

  
	
   

  	
   

  	
   

  
	
  Safe Harbor Contributions

  	
   

  	
  Employer Contributions
  made to the Plan in accordance with Section 401(k)(12)(C) of the Code to
  satisfy the nondiscrimination requirements applicable to the 401(k)
  Plan.  See Section 4(b).

  
	
   

  	
   

  	
   

  
	
  Service

  	
   

  	
  Employment with IHOP or an
  Affiliate; provided, however, that periods of employment with an employer
  during which the employer was not an Affiliate shall not be included as
  Service.  Service shall also include
  an individual’s employment with IHOP or an Affiliate as required under
  Section 414(n)(4)(B) of the Code.

  

 

 

6

 

	
  Statutory Compensation

  	
   

  	
  The total remuneration
  paid to an Employee by IHOP during the Plan Year for personal services
  rendered, including the amount of any elective deferrals made on his behalf
  by IHOP to the 401(k) Plan for the Plan Year and any amounts withheld by IHOP
  pursuant to a “cafeteria plan” under Section 125 of the Code, but excluding employer
  contributions to a plan of deferred compensation, amounts realized in
  connection with stock options and amounts which receive special tax benefits.

  
	
   

  	
   

  	
   

  
	
  Trust

  	
   

  	
  The International House of
  Pancakes Employee Stock Ownership Trust, maintained pursuant to the Trust
  Agreement entered into between IHOP Corp. and the Trustee.

  
	
   

  	
   

  	
   

  
	
  Trust Agreement

  	
   

  	
  The Agreement between IHOP
  Corp. and the Trustee specifying the duties of the Trustee.

  
	
   

  	
   

  	
   

  
	
  Trust Assets

  	
   

  	
  The IHOP Stock (and other
  assets) held in the Trust for the benefit of Participants.  See Section 5.

  
	
   

  	
   

  	
   

  
	
  Trustee

  	
   

  	
  The Trustee (and any
  successor Trustee) appointed by the Board of Directors to hold the Trust
  Assets.

  

 

Section 3.  Eligibility and Participation

 

(a)           Each Employee who was a Participant on January 1,
2001, shall continue as a Participant in the Plan.  Each other Employee shall become a Participant on the first Entry
Date coinciding with or next following the date on which he has completed one
year of Service (in which he is credited with at least 1000 Hours of
Service).  For purposes of this Section
3(a), Entry Date shall mean the first day of each Plan Year and the date six
months after the first day of each Plan Year. 
For this purpose, the eligibility computation period for determining the
one year of Service shall initially be the period of 12 consecutive months
beginning with the 

 

 

7

 

Employee’s initial Hour of Service and
thereafter shall be the period of 12 consecutive months beginning on each
anniversary of his completion of his initial Hour of Service.

In the event that the terms
of Service of any Employee are covered by a collective bargaining agreement,
the Employee shall not be eligible to participate in the Plan unless the terms
of such agreement specifically provide for participation in this Plan.

Notwithstanding the
foregoing, for the purpose of sharing in the allocation of Safe Harbor
Contributions only, an Employee shall become a Participant in the Plan as of
the date he first becomes eligible to make elective deferrals under the 401(k)
Plan.

 

(b)           A Participant is entitled to share in the allocations of
Discretionary Contributions and Forfeitures under Section 6(a) for each Plan
Year in which he is credited with more than 500 Hours of Service (regardless of
whether he is an Employee on the Allocation Date).  A Participant is also entitled to share in the allocations of
Discretionary Contributions and Forfeitures for the Plan Year of his Retirement,
Disability or death.  Effective January 1,
2001, a Participant is entitled to share in the allocations of Safe Harbor
Contributions under Section 6(b) for each Plan Year in which he is eligible to
make elective deferrals under the 401(k) Plan (without regard to whether he
actually elects to make such elective deferrals).

 

(c)           A former Participant who is reemployed by IHOP shall
become a Participant as of the date of his reemployment if he is then an
eligible Employee. A former Employee who is reemployed by IHOP and has
previously satisfied the eligibility requirements of Section 3(a) shall become
a Participant as of the date of his reemployment.  An Employee who is on an Approved Absence shall not become a
Participant until the end of his Approved Absence, but a Participant who is on
an Approved Absence shall continue as a Participant during the period of his
Approved Absence.  Notwithstanding any
provision of this Plan to the contrary, 

 

 

8

 

contributions, benefits and service credit
with respect to qualified military service will be provided in accordance with
Section 414(u) of the Code.

 

(d)           Hours of Service - For purposes of determining the
Hours of Service to be credited to an Employee under the Plan, the following
rules shall be applied:

 

(1)                                  Hours of
Service shall include each hour of Service for which an Employee is paid (or
entitled to payment) for the performance of duties; each hour of Service for
which an Employee is paid (or entitled to payment) for a period during which no
duties are performed due to vacation, holiday, illness, incapacity (including
Disability), layoff, jury duty, military duty or paid leave of absence; and
each additional hour of Service for which back pay is either awarded or agreed
to (irrespective of mitigation of damages); provided, however, that not more
than 501 Hours of Service shall be credited for a single continuous period
during which an Employee does not perform any duties.

 

(2)                                  The crediting
of Hours of Service shall be determined in accordance with the rules set forth
in paragraphs (b) and (c) of Section 2530.200b-2 of the regulations prescribed
by the Department of Labor, which rules shall be consistently applied with
respect to all Employees within the same job classification.

 

(3)                                  Hours of
Service shall not be credited to an Employee for a period during which no
duties are performed if payment is made or due under a plan maintained solely
for the purpose of complying with applicable worker’s compensation,
unemployment compensation or disability insurance laws, and Hours of Service
shall not be credited on account of any payment made or due an Employee solely
in reimbursement of medical or medically-related expenses.

 

Section 4.  Employer Contributions

 

(a)           Discretionary Contributions - Discretionary Contributions
shall be paid to the Trustee for each Plan Year in such amounts (or under such
formula) as may be determined by the Board of Directors.

 

 

9

 

(b)           Safe Harbor Contributions — Safe Harbor
Contributions shall be paid to the Trustee for each Plan Year beginning after
December 31, 2000, in which IHOP wishes to satisfy the nondiscrimination
requirements applicable to the 401(k) Plan by using the alternative method
described in Section 401(k)(12)(A) and (C) of the Code; provided, however, that
Safe Harbor Contributions may be made only if IHOP has provided a notice to
each 401(k) Plan participant which satisfies the requirements of Section
401(k)(12)(D) of the Code.  The amount
of such Safe Harbor Contributions shall be equal to 3% of the Compensation of
all Participants entitled to share in the allocation of Safe Harbor
Contributions under Section 3(b) for that Plan Year.

 

(c)           Payment of Employer Contributions - Employer
Contributions for each Plan Year shall be paid to the Trustee not later than
the due date (including extensions) for filing IHOP’s Federal income tax return
for the Plan Year.  Employer
Contributions may be paid in cash and/or in shares of IHOP Stock, as determined
by the Board of Directors.  The amount
of any Employer Contributions that are paid in shares of IHOP Stock shall be
valued based upon Fair Market Value as of the date the shares are issued to the
Trust.

 

(d)           Additional Provisions - Employer Contributions
shall not be made for any Plan Year in amounts which can be allocated to no
Participant’s Accounts by reason of the allocation limitation described in
Section 7 or in amounts which are not deductible under Section 404(a) of the
Code.  Any Employer Contributions which
are not deductible under Section 404(a) of the Code may be returned to IHOP by
the Trustee (upon the direction of IHOP) within one year after the deduction is
disallowed or after it is determined that the deduction is not available.  In the event that Employer Contributions are
paid to the Trust by reason of a mistake of fact, such 

 

 

10

 

Employer Contributions may be returned to
IHOP by the Trustee (upon the direction of IHOP) within one year after the
payment to the Trust.

 

(e)           Participant Contributions - No Participant shall be
required or permitted to make contributions to the Trust.

 

Section 5.  Investment of Trust Assets

 

(a)           In General - Trust Assets will be invested by the
Trustee primarily (or exclusively) in IHOP Stock in accordance with directions
from the Committee.  Employer
Contributions (and other Trust Assets) may be used to acquire shares of IHOP
Stock from any IHOP stockholder (through open-market purchases or privately-negotiated
transactions) or from IHOP.  All
purchases of IHOP Stock by the Trustee shall be made only as directed by the
Committee and only at prices which do not exceed Fair Market Value as of the
date of the purchase.  The Committee may
direct the Trustee to invest and hold up to 100% of the Trust Assets in IHOP
Stock.  The Trustee may also invest
Trust Assets in such other prudent investments as the Committee deems to be
desirable for the Trust, or Trust Assets may be held temporarily in cash.

 

(b)           Sales of IHOP Stock - With the written approval of
the Board of Directors, the Committee may direct the Trustee to sell shares of
IHOP Stock to any person (including IHOP); provided that any such sale must be
made at a price not less than Fair Market Value as of the date of the sale;
provided, further that any such sale shall comply with all applicable Federal
and state securities laws.  Any decision
by the Committee to direct the Trustee to sell (or otherwise dispose of) IHOP
Stock under this Section 5(b) or under Section 15(c) must comply with the fiduciary
duties applicable under Section 404(a)(1) of ERISA and with the primary benefit
rule 

 

 

11

 

of Section 408(b)(3)(A) of ERISA and Section
4975(d)(3)(A) of the Code, if applicable. 
Any sale of IHOP Stock pursuant to a tender or exchange offer shall be
subject to the provisions of Section 8(b).

 

Section 6.  Allocations to Participants’ Accounts

 

An IHOP Stock Account and an Other Investments Account shall be
maintained to reflect the interest of each Participant.

 

IHOP
Stock Account - The IHOP Stock Account maintained for each
Participant will be credited annually with his allocable share of IHOP Stock
(including fractional shares) purchased and paid for by the Trust or
contributed in kind to the Trust as an Employer Contribution, with any
Forfeitures from IHOP Stock Accounts, with any stock dividends on IHOP Stock
allocated to his IHOP Stock Account and with any cash dividends reinvested in
IHOP Stock pursuant to his election under Section 13(a).

 

Other
Investments Account - The Other Investments Account maintained for each
Participant will be credited annually with his allocable share of Employer
Contributions that are not in the form of IHOP Stock, with any Forfeitures from
Other Investments Accounts, with any cash dividends on IHOP Stock allocated to
his IHOP Stock Account (other than dividends currently available for
distribution) and any net income (or loss) of the Trust.  Such Account will be debited for the Participant’s
share of any cash payments made by the Trustee for the acquisition of IHOP
Stock.

 

Safe  Harbor Sub-Accounts - A
sub-account of each Participant’s IHOP Stock Account and Other Investments
Account shall be maintained to reflect his interest (if any) attributable to
Safe Harbor Contributions.

 

 

12

 

The allocations to
Participants’ Accounts for each Plan Year will be made as follows:

 

(a)           Discretionary Contributions and Forfeitures - Discretionary
Contributions under Section 4(a) and Forfeitures under Section 10(b) for
each Plan Year will be allocated as of the Allocation Date among the Accounts
of Participants so entitled under Section 3(b) in the ratio that the
Compensation of each such Participant bears to the total Compensation of all such
Participants, subject to the allocation limitation described in Section 7.

 

(b)           Safe Harbor Contributions - Safe Harbor
Contributions under Section 4(b) for each Plan Year will be allocated as of the
Allocation Date among the Accounts of Participants so entitled under Section
3(b) in an amount equal to 3% of Compensation for each such Participant.

 

(c)           Net Income (or Loss) of the Trust - The net income
(or loss) of the Trust for each Plan Year will be determined as of the
Allocation Date.  Prior to the allocation
of Employer Contributions and Forfeitures for the Plan Year, each Participant’s
share of any net income (or loss) will be allocated to his Other Investments
Account in the ratio that the total balance of both his Accounts on the
preceding Allocation Date (reduced by any distribution of Capital Accumulation
from such Account during the Plan Year) bears to the sum of such Account
balances for all Participants as of that date. 
The net income (or loss) of the Trust includes the increase (or
decrease) in the fair market value of Trust Assets (other than IHOP Stock),
interest income, dividends and other income and gains (or losses) attributable
to Trust Assets (other than any dividends on allocated IHOP Stock) since the
preceding Allocation Date, reduced by any expenses charged to the Trust Assets
for that Plan Year.

 

(d)           Dividends on IHOP Stock - Any cash dividends
received on shares of IHOP Stock allocated to Participants’ IHOP Stock Accounts
will be allocated to the respective Other 

 

 

13

 

Investments Accounts of such
Participants.  Any cash dividends
received on unallocated shares of IHOP Stock shall be included in the
computation of the net income (or loss) of the Trust.  Any stock dividends received on IHOP Stock shall be credited to
the Accounts to which such IHOP Stock was allocated.  Any cash dividends which are currently available for distribution
to Participants (or their Beneficiaries) under Section 13(a) shall not be
credited to their Other Investments Accounts.

 

(e)           Accounting for Allocations - The Committee shall
establish accounting procedures for the purpose of making the allocations to
Participants’ Accounts provided for in this Section 6.  The Committee shall maintain adequate
records of the aggregate cost basis of IHOP Stock allocated to each
Participant’s IHOP Stock Account.  From
time to time, the Committee may modify the accounting procedures for the
purposes of achieving equitable and nondiscriminatory allocations among the
Accounts of Participants in accordance with the general concepts of the Plan,
the provisions of this Section 6 and the requirements of the Code and ERISA.

 

Section 7.  Allocation Limitation

 

The Annual Additions for
each Plan Year with respect to any Participant may not exceed the lesser of:

 

(1)           100% of his Statutory Compensation;
or

 

(2)                                   $40,000, as
adjusted for increases in the cost of living pursuant to Section 415(d)(1)(C)
of the Code.

 

 

For the Plan Years before
2002, “25%” shall be substituted for “100%” and “$30,000” shall be substituted
for “$40,000” in the preceding sentence.

 

 

14

 

For this purpose, “Annual
Additions” shall be the total of the Employer Contributions and Forfeitures
(including any income attributable to Forfeitures) allocated to the Accounts of
a Participant for the Plan Year, plus any employer contributions (including
elective contributions) and forfeitures (if any) made on his behalf under the
401(k) Plan for the Plan Year.  In
determining such Annual Additions, Forfeitures of IHOP Stock shall be included
at the Fair Market Value as of the Allocation Date and Employer Contributions
in the form of Company Stock shall be included at the Fair Market Value as of
the date such shares are issued to the Trust.

If the aggregate amount that
would be allocated to the Accounts of a Participant in the absence of these
limitations would exceed the amount set forth in these limitations, the amount
of any elective contributions made on his behalf under the 401(k) Plan shall be
returned to him (together with any income attributable thereto) prior to
reducing the allocations to his Accounts under this Plan.  Any Forfeitures which can be allocated to no
Participant’s Accounts by reason of this limitation shall be credited to a
“Forfeiture Suspense Account” and allocated as Forfeitures under Section 6(a)
for the next succeeding Plan Year (prior to the allocation of Employer
Contributions for such succeeding Plan Year).

 

Section 8.  Voting IHOP Stock; Tender Offers

 

(a)           Voting Rights - All IHOP Stock in the Trust shall
be voted by the Trustee only as directed in accordance with the provisions of
this Section 8(a).  Each Participant (or
Beneficiary) will be entitled to instruct the Trustee as to the manner in which
shares of IHOP Stock then allocated to his IHOP Stock Account are to be
voted.  Each Participant (or
Beneficiary) shall be provided with the proxy statement and other materials
provided to 

 

 

15

 

stockholders of IHOP Corp. in connection with
each stockholder meeting, together with a form upon which confidential voting
instructions may be given to the Trustee. 
The Trustee shall not disclose the voting instructions of any individual
Participant (or Beneficiary) to IHOP Corp. or the Committee.  Any allocated shares of IHOP Stock with
respect to which voting instructions are not received from Participants (or
Beneficiaries) and any shares of IHOP Stock which are not then allocated to
Participants’ Accounts shall be voted by the Trustee in the same proportions as
the shares with respect to which instructions are received from Participants
(or Beneficiaries).

 

(b)           Tender Offer - In the event that there should be a
tender or exchange offer for IHOP Stock, the response to such an offer with
respect to shares held in the Trust shall be determined as provided in this
Section 8(b).  Each Participant (or
Beneficiary) will be entitled to instruct the Trustee as to the manner in which
to respond to any such offer with respect to shares of IHOP Stock then
allocated to his IHOP Stock Account, as well as a proportionate number of any
shares of IHOP Stock which are not then allocated to Participants’ IHOP Stock
Accounts.  Each Participant (or Beneficiary)
shall be provided with the tender or exchange offer materials provided to
stockholders of IHOP Corp. in connection with the tender or exchange offer,
together with a form upon which confidential instructions relating to the
tender or exchange offer may be given to the Trustee.  The Trustee shall not disclose the instructions of any individual
Participant (or Beneficiary) to IHOP Corp. or the Committee.  Any shares of IHOP Stock with respect to
which Participants (or Beneficiaries) do not provide instructions will not be
tendered.

 

 

16

 

Section 9.  Disclosure to Participants

 

(a)           Summary Plan
Description - Each Participant shall be furnished with the summary plan
description of the Plan required by Sections 102(a)(1) and 104(b)(1) of ERISA.  Such summary plan description shall be
updated from time to time as required under ERISA and U.S. Department of Labor
regulations thereunder.

 

(b)           Summary Annual Report - Within two months after the
due date for the filing of the annual return/report (Form 5500) for the Plan
with the U.S. Department of Labor’s Pension and Welfare Benefits
Administration, each Participant shall be furnished with the summary annual
report of the Plan required by Section 104(b)(3) of ERISA, in the form
prescribed in regulations of the U.S. Department of Labor.

 

(c)           Annual Statement - Following each Allocation Date,
each Participant shall be furnished with a statement reflecting the following
information:

 

(1)                                  The balances
(if any) in his Accounts as of the beginning of the Plan Year.

 

(2)                                  The amount of
Employer Contributions and Forfeitures allocated to his Accounts for that Plan
Year.

 

(3)                                  The adjustments
to his Accounts to reflect his share of dividends (if any) on IHOP Stock and
any net income (or loss) of the Trust for that Plan Year.

 

(4)                                  The new
balances in his Accounts, including the number of shares of IHOP Stock
allocated to his IHOP Stock Account and the Fair Market Value as of that
Allocation Date.

 

(5)                                  His number of
years of Credited Service and his vested percentage in his Account balances
(under Sections 10 and 11) as of that Allocation Date.

 

(d)           Additional Disclosure - IHOP Corp. shall make
available for examination by any Participant copies of the Plan, the Trust
Agreement and the latest annual return/report of the 

 

 

17

 

Plan filed (on Form 5500) with the U.S.
Department of Labor.  Upon written
request of any Participant, IHOP Corp. shall furnish copies of such documents
and may make a reasonable charge to cover the cost of furnishing such copies,
as provided in regulations of the U.S. Department of Labor.

 

Section 10.  Vesting and Forfeitures

 

(a)           Vesting -

 

(1)           A Participant’s
interest in his Accounts shall become 100% vested and nonforfeitable without
regard to his Credited Service if he (1) is employed by IHOP or an
Affiliate on or after attaining age 65, (2) terminates Service by reason
of Disability, or (3) dies while employed by IHOP or an Affiliate;
provided, however, that a Participant’s interest in his Account attributable to
Safe Harbor Contributions shall be 100% vested and nonforfeitable at all times.

 

(2)           Except as otherwise provided in Section 10(a)(1) and
13(a), a Participant’s interest in his Accounts shall become vested and
nonforfeitable in accordance with the following schedule:

 

	
  Credited Service

  Under Section 11 

  	
   

  	
  Nonforfeitable

  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than Two Years

  	
   

  	
  0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Two Years

  	
   

  	
  25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Three Years

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Four Years

  	
   

  	
  75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Five Years or More

  	
   

  	
  100

  	
  %

  

 

 

18

 

(b)           Forfeitures - If a Participant is not fully vested
in the final balances in his Accounts, the nonvested portion of his Account
balances will become a Forfeiture as of the date on which he incurs a one-year
Break in Service.  All Forfeitures will
be reallocated to the Accounts of remaining Participants, as provided in
Section 6(a), as of the Allocation Date coinciding with or next following the
date the Forfeitures occurred.

 

(c)           Restoration of Forfeited Amounts - If a Participant
is reemployed prior to the occurrence of a five-consecutive-year Break in
Service, the portion of his Accounts (attributable to the prior period of
Service) that was forfeited shall be restored as if there had been no
Forfeiture.  Such restoration shall be
made out of Forfeitures occurring in the Plan Year of reemployment (prior to
allocation under Section 6(a)).  To the
extent such Forfeitures are not sufficient, IHOP Corp. shall make a special
contribution to the Participant’s restored Accounts.  Any amount so restored to a Participant shall not constitute an
Annual Addition under Section 7.

 

(d)           Vesting Upon Reemployment - If a Participant who is
not 100% vested receives a distribution of his Capital Accumulation prior to
the occurrence of a five-consecutive-year Break in Service and he is
re-employed prior to the occurrence of such a Break in Service, the portion of
his Accounts which was not vested (including any restored Accounts) shall be
maintained separately until he becomes 100% vested.  His vested and nonforfeitable percentage in such separate
Accounts upon his subsequent termination of Service shall be equal to:

 

	
  X-Y

  
	
  100%-Y

  

 

 

19

 

For purposes of applying this formula, X is
the vested percentage at the time of the subsequent termination, and Y is the
vested percentage at the time of the prior termination.

 

Section 11.  Credited Service and Break in Service

 

(a)           General Rule - An Employee’s Credited Service shall
include each period of his Service, computed (in full years and days) from the
date he is first credited with an Hour of Service until the date on which his
Service terminates.  An Employee’s
Credited Service shall be determined by aggregating all the periods required to
be taken into account under this Section 11. 
A Break in Service that does not exceed one year and the first year of
an Approved Absence shall be included in an Employee’s Credited Service.

 

(b)           Break in Service - A one-year Break in Service
shall occur one year after the date of an Employee’s termination of
Service.  A five-year Break in Service
shall occur five years after the date of an Employee’s termination of
Service.  A Break in Service shall end
in the event of an Employee’s reemployment. 
For purposes of determining the period of an Employee’s Break in
Service, the date of termination of Service for an Employee who is absent by
reason of a maternity/paternity absence, as described in Section
411(a)(6)(E)(i) of the Code, or an unpaid leave covered by the Family and
Medical Leave Act of 1993, shall be the second anniversary of such
termination.  The period between the
first and second anniversaries of the first day of such absence shall be
neither a year of Credited Service or a Break in Service.  An Approved Absence shall not be a Break in
Service.

For the purposes of this
Section 11(b), a “maternity/paternity absence” means an Employee’s absence by
reason of (A) the (i) pregnancy of an Employee, (ii) birth of a
child of an Employee or (iii) placement of a child with an Employee in
connection with the adoption of 

 

 

20

 

such child by such Employee, or (B) for
purposes of caring for a child described in clause (A) for a period beginning
immediately following such birth or placement.

 

(c)           Reemployment - If a former Employee is reemployed
after a one-year Break in Service, new Accounts will be established to reflect
his interest in the Plan attributable to Service after the Break in Service and
the following special rules shall apply in determining his Credited Service:

 

(1)                                  After he
completes one Plan Year of Credited Service following reemployment, his
Credited Service with respect to his new Accounts shall include his Credited
Service accumulated prior to the Break in Service.  However, in the case of a Participant who is reemployed after a
five-consecutive-year Break in Service and who has not attained a vested
interest under the Plan, Service prior to the Break in Service shall not be
included in determining his Credited Service.

 

(2)                                  If he is
reemployed after the occurrence of a five-consecutive-year Break in Service,
Credited Service after such Break in Service shall not increase his vested
interest in his Accounts attributable to Service prior to the Break in Service.

 

Section 12.  When Capital Accumulation Will Be
Distributed

 

(a)           Except as otherwise provided in Sections 12(c) and 13, a
Participant’s Capital Accumulation will be distributed following his
termination of Service.  The Committee
shall establish a written distribution policy (which may be modified from time
to time) and shall be applied to Participants in a nondiscriminatory
manner.  If the value of a Participant’s
Capital Accumulation (at the time a distribution would otherwise commence under
this Section 12) exceeds $5,000, no portion of his Capital Accumulation may be
distributed to him without his written consent before he attains age 65.

 

 

21

 

(b)           In the event of a Participant’s Retirement, Disability or
death, distribution of his Capital Accumulation shall be made in a lump sum
prior to the Allocation Date of the Plan Year following the Plan Year in which
his Retirement, Disability or death occurs. 
If a Participant’s Service terminates for any other reason, distribution
of his Capital Accumulation shall be made in a lump sum prior to the Allocation
Date of the sixth Plan Year following the Plan Year in which his Service
terminates (unless he is reemployed by IHOP).

 

(c)           Distribution of his Capital Accumulation shall commence
not later than 60 days after the Allocation Date coinciding with or next
following the latest of (1) the date of his 65th birthday,
(2) the 10th anniversary of the date he became a Participant,
or (3) the date he terminates Service. 
The distribution of the Capital Accumulation of any Participant who
attains age 701⁄2 in a calendar year and either (1) has terminated Service
or (2) is a “5% owner” (as defined in Section 416(i)(1)(B)(i) of the Code)
must commence not later than April 1st of the next calendar
year and must be made in accordance with the regulations under Section
401(a)(9) of the Code, including Section 1.401(a)(9)-2; provided, however, that
distributions shall be offered to any other Participant who attains age 701⁄2 before
January 1, 2001, to the extent required by Sections 401(a)(9) and
411(d)(6) of the Code and the regulations issued thereunder.  If the amount of a Participant’s Capital
Accumulation cannot be determined (by the Committee) by the date on which a
distribution is to commence, or if the Participant cannot be located,
distribution of his Capital Accumulation shall commence within 60 days after
the date on which his Capital Accumulation can be determined or after the date
on which the Committee locates the Participant.

 

(d)           If any part of a Participant’s Capital Accumulation is
retained in the Trust after his Service ends, his Accounts will continue to be
treated as described in Section 6. 
However, 

 

 

22

 

except as otherwise provided in Section 3(b),
such Accounts shall not be credited with any additional Employer Contributions
and Forfeitures.  The Committee may
determine (based upon a nondiscriminatory policy) that the Capital
Accumulations of former Employees will be diversified and invested in Trust
Assets other than IHOP Stock.

 

Section 13.  In-Service Distributions

 

(a)           Cash Dividends - If so determined by the Board of
Directors, any cash dividends payable on IHOP Stock allocated to the IHOP Stock
Accounts of Participants may be paid currently (or within 90 days after the end
of the Plan Year in which the dividends are paid to the Trust) in cash by the
Trustee to such Participants (or their Beneficiaries) on a nondiscriminatory
basis, or IHOP Corp. may pay such dividends directly to the Participants (or
Beneficiaries).

If so determined and to the
extent specified by the Board of Directors, a Participant may be offered the
opportunity to elect to have cash dividends payable on Company Stock allocated
to their Company Stock Accounts paid directly to the Participant in accordance
with the provisions of the preceding paragraph or to have such cash dividends
reinvested in Company Stock and accumulated in sub-accounts of his Company
Stock Accounts (“Reinvested Dividend Accounts”).  A Participant’s interest in his Reinvested Dividend Account shall
be 100% vested and non-forfeitable at all times.  Any elections by Participants shall be made at the time and in
the manner determined by the Committee. If the reinvestment of dividends
requires registration and/or qualification of the securities under applicable
Federal or state securities laws, then the Company, at its own expense, will
take, or cause to be taken, any and all actions necessary or appropriate to
effect such registration and/or qualification.

 

 

23

 

Any elections and/or
distributions of cash dividends may be limited to Participants who are still
Employees, may be limited to dividends on shares of IHOP Stock which are then
vested or may be applicable to cash dividends on all shares allocated to
Participants’ IHOP Stock Accounts.

 

(b)           Diversification - A Participant who has attained
age 55 and completed at least ten Years of Participation in the Plan shall be
notified of his right to elect to “diversify” a portion of the balance in his
IHOP Stock Account , as provided in Section 401(a)(28)(B) of the Code.  An election to “diversify” must be made on
the prescribed form and filed with the Committee within the 90-day period
immediately following the Allocation Date of a Plan Year in the Election
Period.  For purposes of this Section
13(b), “Years of Participation” includes only those Plan Years in which the
Participant is entitled to receive an allocation of any Employer Contributions
or Forfeitures under Section 3(b), and the “Election Period” means the period
of six consecutive Plan Years beginning with the Plan Year in which the
Participant first becomes eligible to make an election.

For each of the first five
Plan Years in the Election Period, the Participant may elect to “diversify” up
to 25% of the number of shares of IHOP Stock then allocated to his IHOP Stock
Account (including for this purpose any shares of IHOP Stock distributed or
withdrawn during the Election Period), less all shares with respect to which an
election under this Section 13(b) was previously made.  In the case of the sixth Plan Year in the
Election Period, the Participant may elect to “diversify” up to 50% of the
number of shares of IHOP Stock then allocated to his IHOP Stock Account
(including for this purpose any shares of IHOP Stock distributed or withdrawn
during the Election Period), less all shares with respect to which an election
under this Section 13(b) was previously made. 
No election shall be permitted if the balance in a 

 

 

24

 

Participant’s IHOP Stock Account as of the
Allocation Date of the first Plan Year in the Election Period has a Fair Market
Value of $500 or less, unless and until the balance in his IHOP Stock Account
as of a subsequent Allocation Date in the Election Period exceeds $500.

The Committee shall
determine whether “diversification” will be effected by transferring cash
(representing that portion of a Participant’s Account with respect to which a
“diversifica­tion” election is made) to the 401(k) Plan for the Participant’s
benefit (so long as at least three investment funds (other than IHOP Stock) are
made available for investment by Participants under the 401(k) Plan) or by
distributing to the Participant in IHOP Stock or in cash (as determined by the
Committee) the portion of their Account with respect to which a
“diversification” election is made.  Any
transfer to the 401(k) Plan under this Section 13(b) shall occur no earlier
than 30 days after Forms 5310-A with respect to such transfer have been filed
with the Internal Revenue Service (if required), but not later than the time
when a distribution under this Section 13(b) would have been required.  Any distribution under this Section 13(b)
shall be made within 90 days after the 90-day period in which the election may
be made and shall be subject to the provisions of Sections 12(c), (d) and
(e).  Any distribution made in the form
of IHOP Stock shall be subject to the provisions of Section 12(b).

Any withdrawal under this
Section 14(b) from a Participant’s Account shall be made only from the portion
of a Participant’s Account that is not attributable to Safe Harbor
Contributions.  In the event that a
Participant elects to withdraw an amount that would exceed such portion, the
excess amount attributable to Safe Harbor Contributions will be transferred to
the 401(k) Plan on his behalf (so long as at least three investment funds
(other than IHOP Stock) are made available under the 401(k) Plan).

 

 

25

 

 

Section 14.  How Capital Accumulation Will Be
Distributed

 

(a)           The Trustee will
make distributions from the Trust only as directed by the Committee.  Distribution of a Participant’s Capital
Accumulation will be made in whole shares of IHOP Stock, cash or a combination
of both, as determined by the Committee; provided, however, that the Committee
shall notify the Participant of his right to demand distribution of his Capital
Accumulation entirely in whole shares of IHOP Stock (with only the value of any
fractional share paid in cash).  Shares
of IHOP Stock distributed by the Trustee shall be readily tradable on an
established securities market.

 

(b)           Distribution of a Participant’s Capital Accumulation will
be made to the Participant if he is living, and if not, to his
Beneficiary.  In the event of a
Participant’s death, his Beneficiary shall be his surviving spouse, or if none,
his estate.  A Participant (with the
written consent of his spouse, if any, acknowledging the effect of the consent
and witnessed by a notary public) may designate a different Beneficiary or
Beneficiaries from time to time by filing a written designation with the
Committee.  A Participant may also
designate a contingent Beneficiary by filing a written designation with the
Committee.  A deceased Participant’s
entire Capital Accumulation shall be distributed to his Beneficiary on or
before December 31st of the calendar year that includes the
fifth anniversary of his death.

 

(c)           IHOP Corp. shall furnish the recipient of a distribution
with the tax consequences explanation required by Section 402(f) of the Code
and shall comply with the withholding requirements of Section 3405 of the Code
and of any applicable state law with respect to distributions from the Trust
(other than any dividend distributions under Section 13(a)).  If the Committee so elects for a Plan Year,
distributions to Participants may commence less than 30 days after the notice
required under Section 1.411(a)-11(c) of the regulations under the Code is 

 

 

26

 

given ; provided, however, that no such
distribution to a Participant shall be made unless (1) the Participant is
informed that he has a right to a period of at least 30 days after receiving
the notice to consider whether or not to consent to a distribution (or a
particular distribution option), and (2) the Participant affirmatively
elects to receive a distribution after receiving the notice.

 

(d)           Shares of IHOP Stock held or distributed by the Trustee
may include such legend restrictions on transferability as IHOP Corp. may
reasonably require in order to assure compliance with applicable Federal and
state securities laws.  No shares of
IHOP Stock held or distributed by the Trustee may be subject to a put, call or
other option, or buy-sell or similar arrangement.  The provisions of this Section 14(d) shall continue to be
applicable to IHOP Stock held by the Trustee even if the Plan ceases to be an
employee stock ownership plan under Section 4975(e)(7) of the Code.

 

(e)           If a distribution of a Participant’s Capital Accumulation
is not:  (i) one of a series of annual
installments over a period of ten years (or more); (ii) the minimum amount
required to be distributed pursuant to the second sentence of Section 12(c); or
(iii) a hardship withdrawal (an “eligible rollover distribution”), the
Committee shall notify the Participant (or any spouse or former spouse who is
his alternate payee under a “qualified domestic relations order” (as defined in
Section 414(p) of the Code or the surviving spouse of the Participant) of his
right to elect to have the “eligible rollover distribution” paid directly to an
“eligible retirement plan” (within the meaning of Section 401(a)(31) of the
Code) that is an individual retirement account described in Section 408(a) of
the Code, an individual retirement annuity described in Section 408(b) of the
Code, a qualified trust described in Section 401(a) of the Code or a qualified
annuity plan described in Section 403(a) of the Code (and for transfers after
December 31, 2001, a transfer to an annuity described in Section 403(b) of
the Code or to an eligible deferred 

 

 

27

 

compensation plan described in Section 457(b)
of the Code) that accepts “eligible rollover distributions.”  Any election under this Section 14(e) shall
be made and effected in accordance with such rules and procedures as may be
established from time to time by the Committee in order to comply with Section
401(a)(31) of the Code.

 

Section 15.  Leveraging Provisions

 

(a)           The Plan is designed to be available as a technique of
corporate finance to IHOP Corp. 
Accordingly, it may be used to receive loans (or other extensions of
credit) to finance the acquisition of IHOP Stock (“Acquisition Loan”), with
payments on such loans to be paid by Employer Contributions to the Trust and
cash dividends received on Financed Shares. 
The provisions of this Section 15 shall become applicable if the Plan
incurs an Acquisition Loan.

 

(b)           Acquisition Loans - With the written approval of
the Board of Directors, the Committee may direct the Trustee to incur
Acquisition Loans from time to time to finance the acquisition of IHOP Stock
(“Financed Shares”) or to repay a prior Acquisition Loan.  An installment obligation incurred in
connection with the purchase of IHOP Stock shall be treated as an Acquisition
Loan, and all indebtedness incurred to acquire IHOP Stock in a single
transaction shall be treated as one Acquisition Loan for purposes of the
Plan.  An Acquisition Loan shall be for
a specific term, shall bear a reasonable rate of interest and shall not be
payable on demand except in the event of default.

An Acquisition Loan may be
secured by a pledge of the Financed Shares so acquired (or acquired with the
proceeds of a prior Acquisition Loan which is being refinanced).  No other Trust Assets may be pledged as
collateral for an Acquisition Loan, and no person shall have recourse against
Trust Assets except for Financed Shares remaining pledged.  Any pledge of 

 

 

28

 

Financed Shares must provide for the release
of the shares so pledged as payments on the Acquisition Loan are made by the
Trustee and such Financed Shares are allocated to Participants’ IHOP Stock
Accounts under Section 15(d).  If the
lender is a party in interest (as defined in ERISA), any pledge of Financed
Shares must provide the transfer of Trust Assets on default only upon and to
the extent of the failure of the Trust to meet the payment schedule of the
Acquisition Loan.

 

(c)           Acquisition Loan Payments - Payments of principal
and/or interest on any Acquisition Loan shall be made by the Trustee (as
directed by the Committee) only from Employer Contributions paid in cash to
enable the Trust to make payments on such Acquisition Loan, from earnings
attributable to such Employer Contributions and from any cash dividends
received by the Trust on the Financed Shares (whether allocated or unallocated)
purchased with the proceeds of such Acquisition Loan; and the payments made
with respect to an Acquisition Loan for a Plan Year must not exceed the sum of
such Employer Contributions, earnings and dividends for that Plan Year (and
prior Plan Years), less the amount of such payments for prior Plan Years.  If IHOP Corp. is the lender with respect to
an Acquisition Loan, Employer Contributions may be paid in the form of
cancellation of indebtedness under the Acquisition Loan (with written notice to
the Trustee and Committee).  If IHOP
Corp. is not the lender with respect to an Acquisition Loan, IHOP Corp. may
elect (with written notice to the Trustee and Committee) to make payments on
the Acquisition Loan directly to the lender and to treat such payments as Employer
Contributions.

Notwithstanding the other
provisions of this Section 15(c), the Committee may direct the Trustee to apply
any cash proceeds resulting from the sale (or other disposition) of unallocated
Financed Shares (in the Loan Suspense Account described in Section 15(d)) to
repay the 

 

 

29

 

Acquisition Loan (incurred to finance the
purchase such Financed Shares) in connection with a merger, or sale of all (or
substantially all) the assets of IHOP Corp. or sale of all (or substantially
all) the stock of IHOP Corp. or in the event of the termination of the Plan or
if the Plan ceases to be an employee stock ownership plan under Section
4975(e)(7) of the Code.

 

(d)           Allocation of Financed Shares - Any Financed Shares
acquired by the Trust shall initially be credited to a “Loan Suspense Account”
and will be allocated to the IHOP Stock Accounts of Participants only as
payments on the Acquisition Loan are made by the Trustee.  The number of Financed Shares to be released
from the Loan Suspense Account for allocation to Participants’ IHOP Stock
Accounts for each Plan Year shall be determined by the Committee (as of each
Allocation Date) as follows:

 

(1)           Principal/Interest Method - The number of Financed
Shares held in the Loan Suspense Account immediately before the release for the
current Plan Year shall be multiplied by a fraction.  The numerator of the fraction shall be the amount of principal
and/or interest paid on the Acquisition Loan for that Plan Year.  The denominator of the fraction shall be the
sum of the numerator plus the total payments of principal and interest on that
Acquisition Loan projected to be paid for all future Plan Years.  For this purpose, the interest to be paid in
future years is to be computed by using the interest rate in effect as of the
current Allocation Date.

 

(2)           Principal Only Method - The Committee may elect (as
to each Acquisition Loan) or the provisions of the Acquisition Loan may provide
for the release of Financed Shares from the Loan Suspense Account based solely
on the ratio that the payments of principal for each Plan Year bear to the
total principal amount of the Acquisition Loan.  This method may be used only to the extent that:  (A) the Acquisition Loan provides for
annual 

 

 

30

 

payments of principal and interest at a
cumulative rate that is not less rapid at any time than level annual payments
of such amounts for ten years; (B) interest included in any payment on the
Acquisition Loan is disregarded only to the extent that it would be determined
to be interest under standard loan amortization tables; and (C) the entire
duration of the Acquisition Loan repayment period does not exceed ten years,
even in the event of a renewal, extension or refinancing of the Acquisition
Loan.

In each Plan Year in which
Trust Assets are applied to make payments on an Acquisition Loan, the Financed
Shares released from the Loan Suspense Account in accordance with the
provisions of this Section 15(d) shall be allocated among the IHOP Stock
Accounts of Participants in the manner determined by the Committee based upon
the source of funds (Discretionary Contributions, Safe Harbor Contributions,
earnings attributable to such Employer Contributions and cash dividends on
Financed Shares allocated to Participants’ IHOP Stock Accounts or cash
dividends on Financed Shares not yet allocated to Participants’ Accounts) used
to make the payments on the Acquisition Loan. 
If cash dividends on Financed Shares allocated to a Participant’s IHOP
Stock Account are used to make payments on an Acquisition Loan, Financed Shares
(whose Fair Market Value is at least equal to the amount of such dividends)
released from the Loan Suspense Account shall be allocated to that Participant’s
IHOP Stock Account.

 

(e)           Net Income (or Loss) and Dividends - The
determination of the net income (or loss) of the Trust shall not take into
account any interest paid by the Trust under an Acquisition Loan.  Any cash dividends received on any Financed
Shares credited to the Loan Suspense Account shall be included in the
computation of the net income (or loss) of the Trust.  Any stock dividends received on IHOP Stock in the Loan Suspense
Account shall be credited to the 

 

 

31

 

Loan Suspense Account.  The Committee shall keep separate records of
Financed Shares and of Employer Contributions (and any earnings thereon) made
for the purpose of enabling the Trust to repay any Acquisition Loan.

 

(f)            Allocation Limitation - Any Employer Contributions
which are used by the Trust (not later than the due date, including extensions,
for filing IHOP Corp.’s Federal income tax return for that Plan Year) to pay
interest on an Acquisition Loan, and any Financed Shares which are allocated as
Forfeitures, shall not be included as Annual Additions under Section 7;
provided, however, that the provisions of this Section 15(f) shall be
applicable for any Plan Year only if not more than one-third of the Employer
Contributions applied to pay principal and/or interest on an Acquisition Loan
are allocated to Participants who are Highly Compensated Employees; and the
Committee shall reallocate such Employer Contributions to the extent it deems
to be appropriate to satisfy this special rule.

The Annual Additions under
Section 7 with respect to Financed Shares released from the Loan Suspense
Account (by reason of Employer Contributions used for payments on an
Acquisition Loan) and allocated to Participants’ IHOP Stock Accounts shall be
the lesser of (A) the amount of such Employer Contributions (as determined
after application of the preceding paragraph); or (B) the Fair Market
Value of IHOP Stock as of the Allocation Date (as determined after application
of the preceding paragraph).  Annual
Additions shall not include any allocation attributable to any proceeds from
the sale of Financed Shares by the Trust or to appreciation (realized or
unrealized) in the Fair Market Value of IHOP Stock.

 

(g)           Forfeitures - Financed Shares shall be forfeited
under Section 10(b) only after other shares of IHOP Stock have been forfeited.

 

 

32

 

(h)           Distributions - For purposes of Section 12(b) and
except as otherwise provided in Section 12(c), if a Participant’s Capital
Accumulation includes Financed Shares, the Committee may elect to defer the
distribution of that portion of his Capital Accumulation attributable to such
Financed Shares until the Plan Year following the Plan Year in which the
Acquisition Loan (incurred to acquire such Financed Shares) has been fully
repaid.

 

Section 16.  No Assignment of Benefits

 

A Participant’s Capital
Accumulation may not be anticipated, assigned (either at law or in equity),
alienated or subject to attachment, garnishment, levy, execution or other legal
or equitable process, except in accordance with (i) a “qualified domestic
relations order” (as defined in Section 414(p) of the Code); (ii) a
federal tax levy or collection by the IRS on a judgment resulting from an unpaid
tax assessment; or (iii) a judgment or settlement described in Section
401(a)(13)(C) of the Code. 
Distributions made to an alternate payee in accordance with a qualified
domestic relations order may commence prior to the date on which the
Participant attains his “earliest retirement age” (as defined in Section
414(p)(4)(B) of the Code).

 

 

33

 

Section 17.  Administration

 

(a)           Administrative
Committee - The Plan will be administered by an Administrative Committee
composed of one or more individuals appointed by the Board of Directors to
serve at its pleasure and without compensation.  The members of the Committee shall be the named fiduciaries with
authority to control and manage the operation and administration of the
Plan.  Members of the Committee need not
be Employees or Participants.  Any
Committee member may resign by giving notice, in writing, to the Board of
Directors.

 

(b)           Committee Action - Committee action will be by vote
of a majority of the members at a meeting or by written unanimous consent
without a meeting.  A Committee member
who is a Participant shall not vote on any question relating specifically to
himself.

The Committee shall choose
from its members a Chairman and a Secretary. 
The Chairman or the Secretary of the Committee shall be authorized to
execute any certificate or other written direction on behalf of the
Committee.  The Secretary shall keep a
record of the Committee’s proceedings and of all dates, records and documents
pertaining to the administration of the Plan.

 

(c)           Powers and Duties of the Committee - The Committee
shall have all powers necessary to enable it to administer the Plan and the
Trust Agreement in accordance with their provisions, including without
limitation the following:

 

(1)                                  resolving all
questions relating to the eligibility of Employees to become Participants;

 

(2)                                  determining the
appropriate allocations to Participants’ Accounts pursuant to Sections 6 and
15;

 

(3)                                  determining the
amount of benefits payable to a Participant (or Beneficiary), and the time and
manner in which such benefits are to be paid;

 

 

34

 

(4)                                  authorizing and
directing all disbursements of Trust Assets by the Trustee;

 

(5)                                  establishing
procedures in accordance with Section 414(p) of the Code to determine the
qualified status of domestic relations orders and to administer distributions
under such qualified orders;

 

(6)                                  engaging any
administrative, legal, accounting, clerical or other services that it may deem
appropriate;

 

(7)                                  construing and
interpreting the Plan and the Trust Agreement and adopting rules for
administration of the Plan that are consistent with the terms of the Plan
documents and of ERISA and the Code;

 

(8)                                  compiling and
maintaining all records it determines to be necessary, appropriate or
convenient in connection with the administration of the Plan;

 

(9)                                  reviewing the
performance of the Trustee with respect to the Trustee’s administrative duties,
responsibilities and obligations under the Plan and Trust Agreement; and

 

(10)                            executing
agreements and other documents on behalf of the Plan and Trust.

 

The Committee shall be
responsible for directing the Trustee as to the investment of Trust
Assets.  The Committee may delegate to
the Trustee the responsibility for investing Trust Assets other than IHOP
Stock.  The Committee shall establish a
funding policy and method for directing the Trustee to acquire IHOP Stock (and
for otherwise investing the Trust Assets) in a manner that is consistent with
the objectives of the Plan and the requirements of ERISA.

The Committee shall perform
its duties under the Plan and the Trust Agreement solely in the interests of
the Participants (and their Beneficiaries). 
Any discretion granted to the Committee under any of the provisions of
the Plan or the Trust Agreement shall be exercised only in accordance with
rules and policies established by the Committee which shall be applicable on a
nondiscriminatory basis.  The Committee
shall have sole and exclusive 

 

 

35

 

discretionary authority to construe and
interpret the terms of the Plan and Trust. 
All decisions and interpretations of the Committee under this Section 17
shall be conclusive and binding upon all persons with an interest in the Plan
and shall be given the greatest deference permitted by law.

 

(d)           Expenses - All reasonable expenses of administering
the Plan and Trust shall be charged to and paid out of the Trust Assets.  IHOP may, however, pay all or any portion of
such expenses directly, and payment of expenses by IHOP shall not be deemed to
be Employer Contributions.

 

(e)           Information to be Submitted to the Committee - To
enable the Committee to perform its functions, IHOP shall supply full and
timely information to the Committee on all matters as the Committee may
require, and shall maintain such other records as the Committee may determine
are necessary or appropriate in order to determine the benefits due or which
may become due to Participants (or Beneficiaries) under the Plan.

 

(f)            Delegation of Fiduciary Responsibility - The
Committee from time to time may allocate to one or more of its members and/or
may delegate to any other persons or organizations any of its rights, powers,
duties and responsibilities with respect to the operation and administration of
the Plan that are permitted to be so delegated under ERISA; provided, however,
that responsibility for investment of the Trust Assets may not be allocated or
delegated other than as provided in Section 17(c).  Any such allocation or delegation shall be made in writing, shall
be reviewed periodically by the Committee and shall be terminable upon such
notice as the Committee in its discretion deems reasonable and proper under the
circumstances.

 

 

36

 

(g)           Bonding, Insurance and Indemnity - To the extent
required under Section 412 of ERISA, IHOP Corp. shall secure fidelity bonding
for the fiduciaries of the Plan.

IHOP Corp. (in its
discretion) or the Trustee (as directed by the Committee) may obtain a policy
or policies of insurance for the Committee (and other fiduciaries of the Plan)
to cover liability or loss occurring by reason of the act or omission of a
fiduciary.  If such insurance is
purchased with Trust Assets, the policy must permit recourse by the insurer
against the fiduciary in the case of a breach of a fiduciary obligation by such
fiduciary.

IHOP hereby agrees to
indemnify each member of the Committee (to the extent permitted by law) against
any personal liability or expense resulting from his service on the Committee,
except such liability or expense as may result from his own willful misconduct.

 

(h)           Notices, Statements and Reports - IHOP Corp. shall
be the “Plan Administrator” (as defined in Section 3(16)(A) of ERISA and
Section 414(g) of the Code) for purposes of the reporting and disclosure
requirements of ERISA and the Code.  The
Committee shall assist IHOP Corp., as requested, in complying with such
reporting and disclosure requirements. 
The Committee shall be the designated agent of the Plan for the service
of legal process.

 

Section 18.  Claims Procedure

 

A Participant (or Beneficiary) who does not receive a distribution of
benefits to which he believes he is entitled may present a claim to the
Committee.  The claim for benefits must
be in writing and addressed to the Committee or to IHOP Corp.  If the claim for benefits is denied, the
Committee shall notify the Participant (or Beneficiary) in writing within 90
days after the Committee initially received the benefit claim.  Any notice of a denial of benefits shall
advise the Participant (or Beneficiary) of the basis for the denial, any
additional material or information 

 

 

37

 

necessary
for the Participant (or Beneficiary) to perfect his claim and the steps which
the Participant (or Beneficiary) must take to have his claim for benefits
reviewed.

Each Participant (or
Beneficiary) whose claim for benefits has been denied may file a written request
for a review of his claim by the Committee. 
The request for review must be filed by the Participant (or Beneficiary)
within 60 days after he receives the written notice denying his claim.  The decision of the Committee will be made
within 60 days after receipt of a request for review and shall be communicated
in writing to the claimant.  Such
written notice shall set forth the basis for the Committee’s decision.  If there are special circumstances (such as
the need to hold a hearing) which require an extension of time for completing
the review, the Committee’s decision shall be rendered not later than 120 days
after receipt of a request for review. 
All decisions and interpretations of the Committee under this Section 18
shall be conclusive and binding upon all persons with an interest in the Plan
and shall be given the greatest deference permitted by law.

 

Section 19.  Limitation on Participants’ Rights

 

A Participant’s Capital Accumulation will be based solely upon his
vested interest in his Accounts and will be paid only from the Trust
Assets.  IHOP, the Committee and the
Trustee shall have no duty or liability to furnish the Trust with any funds,
securities or other assets, except as expressly provided in the Plan.

The adoption and maintenance
of the Plan shall not be deemed to constitute a contract of employment or
otherwise between IHOP and any Employee, or to be a consideration for, or an
inducement or condition of, any employment. 
Nothing contained in this Plan shall be deemed 

 

 

38

 

to give an Employee the right to be retained
in the Service of IHOP or to interfere with the right of IHOP to discharge,
with or without cause, any Employee at any time.

 

Section 20.  Future of the Plan

 

IHOP Corp. reserves the
right to amend or terminate the Plan (in whole or in part) and the Trust
Agreement at any time, by action of the Board of Directors.  Neither amendment nor termination of the
Plan shall retroactively reduce the vested rights of Participants or permit any
part of the Trust Assets to be diverted to or used for any purpose other than
for the exclusive benefit of the Participants (and their Beneficiaries).

IHOP Corp. specifically
reserves the right to amend the Plan and the Trust Agreement retroactively in
order to satisfy any applicable requirements of the Code and ERISA.

If the Plan is terminated
(or partially terminated), participation of Participants affected by the
termination will end.  If Employer
Contributions are not replaced by contributions to a comparable plan which
satisfies the requirements of Section 401(a) of the Code, the Accounts of only
those Participants who are Employees on the effective date of the termination
will become nonforfeitable as of that date. 
A complete discontinuance of Employer Contributions shall be deemed to
be a termination of the Plan for this purpose. 
The Capital Accumulations of those Participants whose Service terminated
prior to the effective date of Plan termination will continue to be determined
pursuant to Section 10(a); and, to the extent that such Participants are not
vested, the balances in their Accounts will become Forfeitures to be
reallocated as of the effective date of Plan termination.

After termination of the
Plan, the Trust will be maintained until the Capital Accumulations of all
Participants have been distributed. 
Capital Accumulations may be 

 

 

39

 

distributed following termination of the Plan
or distributions may be deferred as provided in Section 12, as IHOP Corp. shall
determine.  In the event that IHOP Stock
is sold (or otherwise disposed of) in connection with the termination of the
Plan or the amendment of the Plan to become a qualified employee plan that is
not a stock bonus plan, all Capital Accumulations will be distributed in cash.

In the event of the merger
or consolidation of this Plan with another plan, or the transfer of Trust
Assets (or liabilities) to another plan, the Account balances of each
Participant immediately after such merger, consolidation or transfer must be at
least as great as immediately before such merger, consolidation or transfer (as
if the Plan had then terminated).

 

Section 21.  “Top-Heavy” Contingency Provisions

 

(a)           The provisions of this Section 21 are included in the Plan
pursuant to Section 401(a)(10)(B)(ii) of the Code and shall become applicable
only if the Plan becomes a “top-heavy plan” under Section 416(g) of the Code
for any Plan Year.

 

(b)           The determination as to whether the Plan becomes
“top-heavy” for any Plan Year shall be made as of the Allocation Date of the
immediately preceding Plan Year by considering the Plan together with the
401(k) Plan.  The Plan (and the 401(k)
Plan) shall be “top-heavy” only if the total Account balances under the Plan
and the 401(k) Plan for “key employees” as of the determination date exceeds
60% of the total Account balances for all Participants.  For such purpose, Account balances shall be
computed and adjusted pursuant to Section 416(g) of the Code.  “Key employees” shall be certain
Participants (who are officers or stockholders of IHOP) and Beneficiaries
described in Section 416(i)(1) or (5) of the Code.

 

 

40

 

(c)           For any Plan Year in which the Plan is “top-heavy,” each
Participant who is an Employee on the Allocation Date (and who is not a “key
employee”) shall receive a minimum allocation of Employer Contributions and
Forfeitures which is equal to the lesser of:

 

(1)           3% of his Statutory Compensation; or

 

(2)                                  the same percentage
of his Statutory Compensation as the allocation to the “key employee” for whom
the percentage is the highest for that Plan Year.  For this purpose, the allocation to the “key employee” shall
include an “elective contributions” made on his behalf for the Plan Year to the
401(k) Plan.

 

Section 22.  Governing Law

 

The provisions of this Plan
and the Trust Agreement shall be construed, administered and enforced in
accordance with the laws of the State of Delaware, to the extent such laws are
not superseded by ERISA.

 

Section 23.  Execution

 

To record the amendment and restatement of the Plan, IHOP has caused
this document to be executed on this 15th day of August, 2001.

 

 

 

	
  IHOP CORP.

  	
  INTERNATIONAL HOUSE OF

  
	
   

  	
  PANCAKES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
  By

  	
   

  	
   

  
						

 

 

41Flexible
Standardized 401(k) Profit Sharing Plan

ADOPTION
AGREEMENT

 

	
  SECTION 1. EMPLOYER INFORMATION

  
	
   

  

 

	
  Name of
  Employer

  	
  IHOP Corp.

  
	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
  450 N. Brand Blvd., 7th Floor

  
	
   

  	
   

  	
   

  
	
  City

  	
  Glendale

  	
   

  	
  State

  	
  CA

  	
   

  	
  Zip

  	
  91203-2306

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone

  	
  818-240-6055

  	
   

  	
  Employer's
  Federal Tax Identification Number

  	
  95-3038279

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type of
  Business

  (Check only one)

  	
   

  	
  o Sole Proprietorship

  	
   

  	
  o Partnership

  	
   

  	
  ý
  C Corporation

  	
   

  	
  o S Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o Other (Specify)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o 

  	
  Check here
  if Related Employers may participate in this Plan and attach a Related
  Employer Participation Agreement for each Related Employer who will
  participate in this Plan.

  
	
   

  	
   

  
	
  Business
  Code

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name of Plan

  	
   

  	
  International
  House of Pancakes 401(k) Plan

  
	
   

  	
   

  	
   

  
	
  Name of
  Trust (if different from Plan Name)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Plan
  Sequence Number

  	
   

  	
  002

  	
   

  	
  (Enter 001 if this is the first qualified plan the
  Employer has ever maintained; enter 002 if it is the second, etc.)

  
	
  Trust
  Identification Number (if applicable)

  	
   

  	
   

  	
  Account
  Number (Optional)

  	
   

  
																																

 

	
  SECTION 2. EFFECTIVE DATES

  Complete Parts A and B

  
	
   

  

Part
A.   General Effective Dates (Check
and Complete Option 1 or 2):

	
  Option 1:

  	
   

  	
  ý

  	
  This is the
  initial adoption of a profit sharing plan by the Employer.

  	
   

  
	
   

  	
   

  	
   

  	
  The
  Effective Date of this Plan is 10-01-2001.

  	
   

  
	
   

  	
   

  	
   

  	
  NOTE:  The effective date is usually the first day of the
  Plan Year in which this Adoption Agreement is signed.

  	
   

  
	
  Option 2:

  	
   

  	
  o

  	
  This is an
  amendment and restatement of an existing profit sharing plan (a Prior Plan).

  	
   

  
	
   

  	
   

  	
   

  	
  The Prior
  Plan was initially effective on

  	
   

  	
  .

  
	
   

  	
   

  	
   

  	
  The
  Effective Date of this amendment and restatement is

  	
   

  	
  .

  
	
   

  	
   

  	
   

  	
  NOTE: The
  effective date is usually the first day of the Plan Year in which this
  Adoption Agreement is signed.

  	
   

  

Part
B.   Commencement of Elective Deferrals:

	
  Elective
  Deferrals may commence on  10-01-2001.

  
	
  NOTE:  This date may be no earlier than the date this
  Adoption Agreement is signed because Elective Deferrals cannot be made
  retroactively.

  

 

	
  SECTION 3. RELEVANT TIME PERIODS

  Complete Parts A through C

  
	
   

  

Part
A.   Employer's Fiscal Year:

	
  The
  Employer's fiscal year ends (Specify month
  and date)

  	
   

  	
  12-31

  

 

Part
B    Plan Year Means:

	
  Option 1:

  	
   

  	
  o 

  	
  The
  12-consecutive month period which coincides with the Employer's fiscal year.

  
	
  Option 2:

  	
   

  	
  ý

  	
  The calendar
  year.

  
	
  Option 3:

  	
   

  	
  o

  	
  Other 12-consecutive
  month period (Specify)

  	
   

  
	
  NOTE: 
  If no option is selected, Option 1
  will be deemed to be selected.

  
	
  If the
  initial Plan Year is less than 12 months (a short Plan Year) specify such
  Plan Year's beginning and ending dates

  
	
  10/01/2001-12/31/2001

  

 

 

1

 

Part
C    Limitation Year Means:

	
  Option 1:

  	
   

  	
  o

  	
  The Plan
  Year.

  
	
  Option 2:

  	
   

  	
  ý

  	
  The calendar
  year.

  
	
  Option 3:

  	
   

  	
  o

  	
  Other
  12-consecutive month period (Specify)

  	
   

  
	
  NOTE: 
  If no option is selected, Option 1 will be deemed to be selected.

  

 

	
  SECTION 4. ELIGIBILITY REQUIREMENTS

  Complete Parts A through F

  
	
   

  

Part
A.   Years of Eligibility Service
Requirement:

                                                1.             Elective
Deferrals.

An Employee will be eligible to become a Contributing Participant in
the Plan (and thus be eligible to make Elective Deferrals) and receive Matching
Contributions (including Qualified Matching Contributions, if applicable) after
completing 1 (enter 0, 1 or any fraction less than 1) Years
of Eligibility Service.

 

                                                2.             Employer
Profit Sharing Contributions.

An employee will be eligible to become a Participant in the Plan for
purposes of receiving an allocation of any Employer Profit Sharing Contribution
made pursuant to Section 10 of the Adoption Agreement after completing 1 (enter
0, 1, 2 or any fraction less than 2) Years of Eligibility Service.

NOTE:
 If
more than 1 year is selected for Item 2, the immediate 100% vesting schedule of
Section 12 will automatically apply for contributions described in such
item. If either item is left blank, the Years of Eligibility Service required
for such item will be deemed to be 0. If a fraction is selected, an Employee
will not be required to complete any specified number of Hours of Service to
receive credit for a fractional year. If a single Entry Date is selected in
Section 4, Part F for an item, the Years of Eligibility Service required for
such item cannot exceed 1.5 (.5 for Elective Deferrals).

 

Part
B.   Age Requirement:

                                                1.             Elective
Deferrals.

An Employee will be eligible to become a Contributing Participant
(and thus be eligible to make Elective Deferrals) and receive Matching
Contributions (including Qualified Matching Contributions, if applicable) after
attaining age                (no more
than 21).

 

                                                2.             Employer
Profit Sharing Contributions.

An Employee will be eligible to become a Participant in the Plan for
purposes of receiving an allocation of any Employer Profit Sharing Contribution
made pursuant to Section 10 of the Adoption Agreement after attaining age            (no more than 21).

 

NOTE: 
If either of
the above items in this Section 4, Part B is left blank, it will be deemed
there is no age requirement for such item. 
If a single Entry Date is selected in Section 4, Part F for an item, no
age requirement can exceed 20.5 for such item.

 

Part
C.   Employees Employed As Of Effective
Date:

Will all
Employees employed as of the Effective Date of this Plan who have not otherwise
met the requirements of Part A or Part B above be considered to have met those
requirements as of the Effective Date?      o
Yes    ý No

 

NOTE:  If a box
is not checked for any item in this Section 4, Part C, "No" will be
deemed to be selected.

 

Part
D.   Exclusion of Certain Classes of
Employees:

All Employees
will be eligible to become Participants in the Plan except:

a.  ý                    Those
Employees included in a unit of Employees covered by a collective bargaining
agreement between the Employer and Employee representatives, if retirement
benefits were the subject of good faith bargaining and if two percent or less
of the Employees who are covered pursuant to that agreement are professionals
as defined in Section 1.410(b)-9 of the regulations. For this purpose, the
term "employee representatives" does not include any organization
more than half of whose members are Employees who are owners, officers, or executives
of the Employer.

b.  ý                   Those
Employees who are non-resident aliens (within the meaning of
Section 7701(b)(l)(B) of the Code) and who received no earned income
(within the meaning of Section 911(d)(2) of the Code) from the Employer
which constitutes income from sources within the United States (within the
meaning of Section 861(a)(3) of the Code).

 

2

 

 

Part
E.    Hours Required For Eligibility
Purposes:

	
  1.

  	
  1000 Hours of Service (no more than 1,000) shall be required to
  constitute a Year of Eligibility Service.

  
	
  2

  	
  500 Hours of Service (no more than 500 but less than the number specified
  in Section 4, Part E, Item 1. above) must be
  exceeded to avoid a Break in Eligibility Service.

  
	
  3.

  	
  For purposes
  of determining Years of Eligibility Service, Employees shall be given credit
  for Hours of Service with the following predecessor employer(s): (Complete if applicable)

  
	
   

  	
   

  
	
   

  	
   

  

 

Part
F.    Entry Dates:

The Entry
Dates for participation shall be (Choose one):

	
  Option 1:

  	
  o

  	
  The first
  day of the Plan Year and the first day of the seventh month of the Plan Year.

  
	
  Option 2:

  	
  ý

  	
  Other (Specify)

  	
   

  	
  January 1, April 1, July 1, October 1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected. Option 2 can
  be selected for an item only if the eligibility requirements and Entry Dates
  are coordinated such that each Employee will become a Participant in the Plan
  no later than the earlier of: (1) the first day of the Plan Year beginning
  after the date the Employee satisfies the age and service requirements of
  Section 410(a) of the Code; or (2) 6 months after the date the Employee
  satisfies such requirements.

  

 

	
  SECTION 5. METHOD OF DETERMINING SERVICE

  Complete Part A or B

  
	
   

  

Part
A.   Hours of Service Equivalencies:

Service will
be determined on the basis of the method selected below. Only one method may be
selected. The method selected will be applied to all Employees covered under
the Plan. (Choose one):

	
  Option 1:

  	
  o

  	
  On the basis
  of actual hours for which an Employee is paid or entitled to payment.

  
	
  Option 2:

  	
  o

  	
  On the basis
  of days worked. An Employee will be credited with 10 Hours of Service if
  under Section 1.24 of the Plan such Employee would be credited with at least
  1 Hour of Service during the day.

  
	
  Option 3:

  	
  o

  	
  On the basis
  of weeks worked. An Employee will be credited with 45 Hours of Service if
  under Section 1.24 of the Plan such Employee would be credited with at least
  1 Hour of Service during the week.

  
	
  Option 4:

  	
  ý

  	
  On the basis
  of months worked. An Employee will be credited with 190 Hours of Service if
  under Section 1.24 of the Plan such Employee would be credited with at least
  1 Hour of Service during the month.

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected. This Section
  5, Part A will not apply if the Elapsed Time Method of Section 5, Part B is
  selected.

  

 

Part
B.   Elapsed Time Method:

In lieu of
tracking Hours of Service of Employees, will the elapsed time method described
in Section 2.07 of the Plan be used? (Choose
one)

	
  Option 1:

  	
  o

  	
  No.

  
	
  Option 2:

  	
  o

  	
  Yes.

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  

 

	
  SECTION 6. ELECTIVE DEFERRALS

  
	
   

  

Part
A.   Authorization of Elective Deferrals:

Will Elective
Deferrals be permitted under this Plan? (Choose
one)

	
  Option 1:

  	
  ý

  	
  Yes.

  
	
  Option 2:

  	
  o

  	
  No.

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected. Complete the
  remainder of Section 6 only if Option 1 is selected.

  

 

Part
B.   Limits on Elective Deferrals:

If Elective
Deferrals are permitted under the Plan, a Contributing Participant may elect
under a salary reduction agreement to have his or her Compensation reduced by
an amount as described below (Choose one):

	
  Option 1:

  	
  ý

  	
  An amount
  equal to a percentage of the Contributing Participant's Compensation from 1% to 15% in increments of 1%.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  An amount of
  the Contributing Participant's Compensation not less than _________ and not
  more than ________.

  

 

The amount of
such reduction shall be contributed to the Plan by the Employer on behalf of
the Contributing Participant. For any taxable year, a Contributing
Participant's Elective Deferrals shall not exceed the limit contained in
Section 402(g) of the Code in effect at the beginning of such taxable
year.

 

 

3

 

Part
C.   Elective Deferrals Based on Bonuses:

Instead of or
in addition to making Elective Deferrals through payroll deduction, may a
Contributing Participant elect to contribute to the Plan, as an Elective
Deferral, part or all of a bonus rather than receive such bonus in cash? (Choose one)

	
  Option 1:

  	
  o

  	
  Yes.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  ý

  	
  No.

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 2 will be deemed to be selected.

  

 

Part
D.   Return As A Contributing Participant
After Ceasing Elective Deferrals:

A Participant
who ceases Elective Deferrals by revoking a salary reduction agreement may
return as a Contributing Participant as of such times established by the Plan
Administrator in a uniform and nondiscriminatory manner.

 

Part
E.    Changing Elective Deferral Amounts:

A Contributing
Participant may modify a salary reduction agreement to prospectively increase
or decrease the amount of his or her Elective Deferrals as of such times
established by the Plan Administrator in a uniform and nondiscriminatory
manner.

 

Part
F.    Claiming Excess Elective Deferrals:

Participants
who claim Excess Elective Deferrals for the preceding calendar year must submit
their claims in writing to the Plan Administrator by (Choose one):

	
  Option 1:

  	
  ý

  	
  March 1.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  Other (Specify a date not later than April 15) 

  	
   

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  

 

 

	
  SECTION 7. MATCHING CONTRIBUTIONS

  
	
   

  

Part
A.   Authorization of Matching
Contributions:

Will the
Employer make Matching Contributions to the Plan on behalf of Qualifying Contributing
Participants? (Choose one)

	
  Option 1:

  	
  o

  	
  Yes, but
  only with respect to a Contributing Participant's Elective Deferrals.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  Yes, but
  only with respect to a Participant's Nondeductible Employee Contributions.

  
	
   

  	
   

  	
   

  
	
  Option 3:

  	
  o

  	
  Yes, with
  respect to both Elective Deferrals and Nondeductible Employee Contributions

  
	
   

  	
   

  	
   

  
	
  Option 4:

  	
  ý

  	
  No.

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 4 will be deemed to be selected. Complete the
  remainder of Section 7 only if Option 1, 2 or 3 is selected.

  

 

Part
B.   Matching Contribution Formula:

If the
Employer will make Matching Contributions, then the amount of such Matching
Contributions made on behalf of a Qualifying Contributing Participant each Plan
Year shall be (Choose one):

	
  Option 1:

  	
  o

  	
  An amount
  equal to ____% of such Contributing Participant's Elective Deferral (and/or
  Nondeductible Employee Contribution, if applicable).

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  An amount
  equal to the sum of ____% of the portion of such Contributing Participant's
  Elective Deferral (and/or Nondeductible Employee Contribution, if applicable)
  which does not exceed ____% of the Contributing Participant's Compensation
  plus ____% of the portion of such Contributing Participant's Elective
  Deferral (and/or Nondeductible Employee Contribution, if applicable) which
  exceeds ____% of the Contributing Participant's Compensation.

  
	
   

  	
   

  	
   

  
	
  Option 3:

  	
  o

  	
  Such amount,
  if any, equal to that percentage of each Contributing Participant's Elective
  Deferral (and/or Nondeductible Employee Contribution, if applicable) which the
  Employer, in its sole discretion, determines from year to year.

  
	
   

  	
   

  	
   

  
	
  Option 4:

  	
  o

  	
  Other
  Formula. (Specify)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  Option 4 is selected, the formula specified can only allow Matching
  Contributions to be made with respect to a Contributing Participant's
  Elective Deferrals (and/or Nondeductible Employee Contribution, if
  applicable).

  

 

 

4

 

Part
C.   Limit on Matching Contributions.

Notwithstanding
the Matching Contribution formula specified above, no Matching Contribution
will be made with respect to a Contributing Participant's Elective Deferrals
(and/or Nondeductible Employee Contributions, if applicable) in excess of
____________ or ____% of such Contributing Participant's Compensation.

 

Part
D.   Qualifying Contributing Participants:

A Contributing
Participant who satisfies the eligibility requirements described in
Section 4 will be a Qualifying Contributing Participant and thus entitled
to share in Matching Contributions for any Plan Year only if the Participant is
a Contributing Participant and satisfies the following additional conditions (Check one or more Options):

	
  Option 1:

  	
  o

  	
  No
  Additional Conditions.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  Hours of
  Service Requirement. The Contributing Participant completes at least ____ (not more than 500) Hours of Service
  during the Plan Year. However, this condition will be waived for the
  following reasons (Check at least one):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  The
  Contributing Participant's Death.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  The
  Contributing Participant's Termination of Employment after having incurred a
  Disability.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  The
  Contributing Participant's Termination of Employment after having reached
  Normal Retirement Age.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  This
  condition will not be waived.

  
	
   

  	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  

 

	
  SECTION 8. QUALIFIED NONELECTIVE
  CONTRIBUTIONS

  
	
   

  

Part
A.   Authorization of Qualified
Nonelective Contributions:

Will the
Employer make Qualified Nonelective Contributions to the Plan? (Choose One)

	
  Option 1:

  	
  o

  	
  Yes.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  ý

  	
  No.

  
	
   

  	
   

  	
   

  
	
  If the
  Employer elects to make Qualified Nonelective Contributions, then the amount,
  if any, of such contribution to the Plan for each Plan Year shall be an
  amount determined by the Employer.

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected. Complete the
  remainder of Section 8 only if Option 1 is selected.

  

 

Part
B.   Participants Entitled to Qualified
Nonelective Contributions:

Allocation of
Qualified Nonelective Contributions shall be made to the Individual Accounts of
(Choose one):

	
  Option 1:

  	
  o

  	
  Only
  Participants who are not Highly Compensated Employees.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  All
  Participants.

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  

 

Part
C.   Allocation of Qualified Nonelective
Contributions:

Allocation of
Qualified Nonelective Contributions to Participants entitled thereto shall be
made (Choose one):

	
  Option 1:

  	
  o

  	
  In the ratio
  which each Participant's Compensation for the Plan Year bears to the total
  Compensation of all Participants for such Plan Year.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  In the ratio
  which each Participant's Compensation not in excess of ________ for the Plan
  Year bears to the total Compensation of all Participants not in excess of
  __________ for such Plan Year.

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  

 

 

5

 

	
  SECTION 9. QUALIFIED MATCHING CONTRIBUTIONS

  
	
   

  

Part
A.   Authorization of Qualified Matching
Contributions:

Will the
Employer make Qualified Matching Contributions to the Plan on behalf of
Qualifying Contributing Participants? (Choose
One)

	
  Option 1:

  	
  o

  	
  Yes, but
  only with respect to a Contributing Participant's Elective Deferrals.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  Yes, but
  only with respect to a Participant's Nondeductible Employee Contributions.

  
	
   

  	
   

  	
   

  
	
  Option 3:

  	
  o

  	
  Yes, with
  respect to both Elective Deferrals and Nondeductible Employee Contributions.

  
	
   

  	
   

  	
   

  
	
  Option 4:

  	
  ý

  	
  No.

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 3 will be deemed to be selected. Complete the
  remainder of Section 9 only if Option 1, 2 or 3 is selected.

  

 

Part
B.   Qualified Matching Contribution
Formula:

If the
Employer will make Qualified Matching Contributions, then the amount of such
Qualified Matching Contributions made on behalf of a Qualifying Contributing
Participant each Plan Year shall be (Choose
one):

	
  Option 1:

  	
  o

  	
  An amount
  equal to ____% of such Contributing Participant's Elective Deferral (and/or
  Nondeductible Employee Contribution, if applicable).

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  An amount
  equal to the sum of ____% of the portion of such Contributing Participant's
  Elective Deferral (and/or Nondeductible Employee Contribution, if applicable)
  which does not exceed ____% of the Contributing Participant's Compensation
  plus ____% of the portion of such Contributing Participant's Elective
  Deferral (and/or Nondeductible Employee Contribution, if applicable) which
  exceeds ____% of the Contributing Participant's Compensation.

  
	
   

  	
   

  	
   

  
	
  Option 3:

  	
  o

  	
  Such amount,
  if any, as determined by the Employer in its sole discretion, equal to that
  percentage of the Elective Deferrals (and/or Nondeductible Employee
  Contribution, if applicable) of each Contributing Participant entitled
  thereto which would be sufficient to cause the Plan to satisfy the Actual
  Contribution Percentage tests (described in Section 11.402 of the Plan)
  for the Plan Year.

  
	
   

  	
   

  	
   

  
	
  Option 4:

  	
  o

  	
  Other
  Formula. (Specify)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 3 will be deemed to be selected.

  

 

Part
C.   Participants Entitled to Qualified
Matching Contributions:

Qualified
Matching Contributions, if made to the Plan, will be made on behalf of (Choose one):

	
  Option 1:

  	
  o

  	
  Only
  Contributing Participants who make Elective Deferrals who are not Highly
  Compensated Employees.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  All
  Contributing Participants who make Elective Deferrals.

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  

 

Part
D.   Limit On Qualified Matching
Contributions:

Notwithstanding
the Qualified Matching Contribution formula specified above, the Employer will
not match a Contributing Participant's Elective Deferrals (and/or Nondeductible
Employee Contribution, if applicable) in excess of ________ or ____% of such
Contributing Participant's Compensation.

 

	
  SECTION 10. EMPLOYER PROFIT SHARING
  CONTRIBUTIONS

  Complete Parts A, B and C

  
	
   

  

Part
A.   Contribution Formula:

For each Plan
Year the Employer will contribute an Amount to be determined from year to year.

 

 

6

 

Part
B.   Allocation Formula (Choose one):

	
  Option 1:

  	
  ý

  	
  Pro Rata
  Formula. Employer Profit Sharing Contributions shall be allocated to the
  Individual Accounts of Qualifying Participants in the ratio that each
  Qualifying Participant's Compensation for the Plan Year bears to the total
  Compensation of all Qualifying Participants for the Plan Year.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  Integrated
  Formula. Employer Profit Sharing Contributions shall be allocated as follows (Start with Step 3 if this Plan is not a Top-Heavy
  Plan):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Step 1.

  	
  Employer
  Profit Sharing Contributions shall first be allocated pro rata to Qualifying
  Participants in the manner described in Section 10, Part B, Option 1. The
  percent so allocated shall not exceed 3% of each Qualifying Participant's
  Compensation.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Step 2.

  	
  Any Employer
  Profit Sharing Contributions remaining after the allocation in Step 1 shall
  be allocated to each Qualifying Participant's Individual Account in the ratio
  that each Qualifying Participant's Compensation for the Plan Year in excess
  of the integration level bears to all Qualifying Participants' Compensation in
  excess of the integration level, but not in excess of 3%.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Step 3.

  	
  Any Employer
  Profit Sharing Contributions remaining after the allocation in Step 2 shall
  be allocated to each Qualifying Participant's Individual Account in the ratio
  that the sum of each Qualifying Participant's total Compensation and
  Compensation in excess of the integration level bears to the sum of all
  Qualifying Participants' total Compensation and Compensation in excess of the
  integration level, but not in excess of the profit sharing maximum disparity
  rate as described in Section 3.01(B)(3) of the Plan.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Step 4.

  	
  Any Employer
  Profit Sharing Contributions remaining after the allocation in Step 3 shall
  be allocated pro rata to Qualifying Participants in the manner described in
  Section 10, Part B, Option 1.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  integration level shall be (Choose one):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (a):

  	
  o

  	
  The Taxable
  Wage Base.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (b):

  	
  o

  	
  ____________
  (a dollar amount less than the Taxable
  Wage Base).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (c):

  	
  o

  	
  ____% (not more than 100%) of the Taxable Wage
  Base.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTE: If
  no option is selected, Suboption (a) will be deemed to be selected.

  
	
   

  	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  
						

 

Part
C.   Qualifying Participants:

A Participant
will be a Qualifying Participant and thus entitled to share in the Employer
Profit Sharing Contribution for any Plan Year only if the Participant is a
Participant on at least one day of such Plan Year and satisfies the following
additional conditions (Check one or more
Options):

	
  Option 1:

  	
  o

  	
  No
  Additional Conditions.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  ý

  	
  Hours of
  Service Requirement. The Participant completes at least 500 (not more than 500) Hours of Service
  during the Plan Year. However, this condition will be waived for the
  following reasons (Check at least one):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  The
  Participant's Death.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  The
  Participant's Termination of Employment after having incurred a Disability.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  The
  Participant's Termination of Employment after having reached Normal Retirement
  Age.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  This
  condition will not be waived.

  
	
   

  	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  

 

	
  SECTION 11. COMPENSATION

  Complete Parts A through D

  
	
   

  

Part
A.   Basic Definition:

Compensation
will mean all of each Participant's (Choose
one):

	
  Option 1:

  	
  ý

  	
  W-2 wages.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  Section
  3401(a) wages.

  
	
   

  	
   

  	
   

  
	
  Option 3:

  	
  o

  	
  415
  safe-harbor compensation.

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  

 

 

7

 

 

Part
B.   Measuring Period for Compensation:

Compensation
shall be determined over the following applicable period (Choose one):

	
  Option 1:

  	
  ý

  	
  The Plan
  Year.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  The calendar
  year ending with or within the Plan Year.

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  

 

Part C.         Inclusion of Elective
Deferrals:

Does
Compensation include Employer Contributions made pursuant to a salary reduction
agreement which are not includible in the gross income of the Employee under
Sections 125, 402(e)(3), 402(h)(1)(B), and 403(b) of the Code?

ý   Yes  
o   No

NOTE: If neither box is checked, "Yes" will be
deemed to be selected.

 

Part D.         Pre-Entry Date
Compensation:

For the Plan
Year in which an Employee enters the Plan, the Employee's Compensation which
shall be taken into account for purposes of the Plan shall be (Choose one):

	
  Option 1:

  	
  o

  	
  The
  Employee's Compensation only from the time the Employee became a Participant
  in the Plan.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  ý

  	
  The
  Employee's Compensation for the whole of such Plan Year.

  
	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  

 

	
  SECTION 12. VESTING AND FORFEITURES

  Complete Parts A through G

  
	
   

  

Part A.         Vesting Schedule For
Employer Profit Sharing Contributions. A Participant shall become Vested in
his or her Individual Account derived from Profit Sharing Contributions made
pursuant to Section 10 of the Adoption Agreement as follows (Choose one):

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  YEARS
  OF VESTING SERVICE

  	
   

  	
  

  VESTED PERCENTAGE

  	
   

  	
  

  (Complete if Chosen)

  
	
   

  	
  Option
  1  o

  	
   

  	
  Option
  2  o

  	
   

  	
  Option
  3  ý

  	
   

  	
  Option
  4  o

  	
   

  	
  Option
  5  o

  	
   

  
	
  1

  	
   

  	
  0%

  	
   

  	
  0%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  _______%

  	
   

  	
   

  
	
  2

  	
   

  	
  0%

  	
   

  	
  20%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  _______%

  	
   

  	
   

  
	
  3

  	
   

  	
  0%

  	
   

  	
  40%

  	
   

  	
  100%

  	
   

  	
  20%

  	
   

  	
  _______%

  	
   

  	
  (not less than 20%)

  
	
  4

  	
   

  	
  0%

  	
   

  	
  60%

  	
   

  	
  100%

  	
   

  	
  40%

  	
   

  	
  _______%

  	
   

  	
  (not less than 40%)

  
	
  5

  	
   

  	
  100%

  	
   

  	
  80%

  	
   

  	
  100%

  	
   

  	
  60%

  	
   

  	
  _______%

  	
   

  	
  (not less than 60%)

  
	
  6

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  80%

  	
   

  	
  _______%

  	
   

  	
  (not less than 80%)

  
	
  7

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  _______%

  	
   

  	
  (not less than 100%)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 3 will be deemed to be selected.

  	
   

  	
   

  

 

Part B.         Vesting Schedule For
Matching Contributions. A Participant shall become Vested in his or her
Individual Account derived from Matching Contributions made pursuant to Section
7 of the Adoption Agreement as follows (Choose
one):

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  YEARS
  OF VESTING SERVICE

  	
   

  	
  

  VESTED PERCENTAGE

  	
   

  	
  

  (Complete if Chosen)

  
	
   

  	
  Option
  1  o

  	
   

  	
  Option
  2  o

  	
   

  	
  Option
  3  ý

  	
   

  	
  Option
  4  o

  	
   

  	
  Option
  5  o

  	
   

  
	
  1

  	
   

  	
  0%

  	
   

  	
  0%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  _______%

  	
   

  	
   

  
	
  2

  	
   

  	
  0%

  	
   

  	
  20%

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  	
  _______%

  	
   

  	
   

  
	
  3

  	
   

  	
  0%

  	
   

  	
  40%

  	
   

  	
  100%

  	
   

  	
  20%

  	
   

  	
  _______%

  	
   

  	
  (not less than 20%)

  
	
  4

  	
   

  	
  0%

  	
   

  	
  60%

  	
   

  	
  100%

  	
   

  	
  40%

  	
   

  	
  _______%

  	
   

  	
  (not less than 40%)

  
	
  5

  	
   

  	
  100%

  	
   

  	
  80%

  	
   

  	
  100%

  	
   

  	
  60%

  	
   

  	
  _______%

  	
   

  	
  (not less than 60%)

  
	
  6

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  80%

  	
   

  	
  _______%

  	
   

  	
  (not less than 80%)

  
	
  7

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  100%

  	
   

  	
  _______%

  	
   

  	
  (not less than 100%)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 3 will be deemed to be selected.

  	
   

  	
   

  
															

 

 

8

 

Part C.         Hours Required For
Vesting Purposes:

	
  1.

  	
  ________
  Hours of Service (no more than 1,000)
  shall be required to constitute a Year of Vesting Service.

  
	
  2

  	
  ________ Hours
  of Service (no more than 500 but less than
  the number specified in Section 12, Part C, Item 1. above)
  mush be exceeded to avoid a Break in Vesting Service.

  
	
  3.

  	
  For purposes
  of determining Years of Vesting Service, Employees shall be given credit for
  Hours of Service with the following predecessor employer(s): (Complete if applicable)

  
	
   

  	
   

  
	
   

  	
   

  

 

Part D.         Exclusion of Certain
Years of Vesting Service:

All of an
Employee's Years of Vesting Service with the Employer are counted to determine
the vesting percentage in the Participant's Individual Account except (Check any that apply):

	
  o

  	
  Years of
  Vesting Service before the Employee reaches age 18.

  
	
   

  	
   

  
	
  o

  	
  Years of
  Vesting Service before the Employer maintained this Plan or a predecessor
  plan.

  

 

Part E.           Allocation of Forfeitures
of Employer Profit Sharing Contributions:

Forfeitures of
Employer Profit Sharing Contributions shall be (Choose one):

	
  Option 1:

  	
  o

  	
  Allocated to
  the Individual Accounts of the Participants specified below in the manner as
  described in Section 10, Part B (for Employer Profit Sharing Contributions).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  Participants entitled to receive allocations of such Forfeitures shall be (Choose one):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (a):

  	
  o

  	
  Only
  Qualifying Participants.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (b):

  	
  o

  	
  All
  Participants.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  Applied to
  reduce Employer Profit Sharing Contributions (Choose
  one):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (a):

  	
  o

  	
  For the Plan
  Year for which the Forfeiture arises.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (b):

  	
  o

  	
  For any Plan
  Year subsequent to the Plan Year for which the Forfeiture arises.

  
	
   

  	
   

  	
   

  	
   

  
	
  Option 3:

  	
  o

  	
  Applied
  first to the payment of the Plan's administrative expenses and any excess
  applied to reduce Employer Profit Sharing Contributions (Choose one):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (a):

  	
  o

  	
  For the Plan
  Year for which the Forfeiture arises.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (b):

  	
  o

  	
  For any Plan
  Year subsequent to the Plan Year for which the Forfeiture arises.

  
	
   

  	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 and Suboption (a) will be deemed to be
  selected.

  

 

Part
F.    Allocation of Forfeitures of
Matching Contributions:

Forfeitures of
Matching Contributions shall be (Choose one):

	
  Option 1:

  	
  o

  	
  Allocated,
  after all other Forfeitures under the Plan, to each Participant's Individual
  Account in the ratio which each Participant's Compensation for the Plan Year
  bears to the total Compensation of all Participants for such Plan Year.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  Participants entitled to receive allocations of such Forfeitures shall be (Choose one):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (a):

  	
  o

  	
  Only
  Qualifying Contributing Participants.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (b):

  	
  o

  	
  Only Qualifying
  Participants.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (c):

  	
  o

  	
  All
  Participants.

  
	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  Applied to
  reduce Matching Contributions (Choose one):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (a):

  	
  o

  	
  For the Plan
  Year for which the Forfeiture arises.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (b):

  	
  o

  	
  For any Plan
  Year subsequent to the Plan Year for which the Forfeiture arises.

  
	
   

  	
   

  	
   

  	
   

  
	
  Option 3:

  	
  o

  	
  Applied
  first to the payment of the Plan's administrative expenses and any excess
  applied to reduce Matching Contributions (Choose
  one):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (a):

  	
  o

  	
  For the Plan
  Year for which the Forfeiture arises.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (b):

  	
  o

  	
  For any Plan
  Year subsequent to the Plan Year for which the Forfeiture arises.

  
	
   

  	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 and Suboption (a) will be deemed to be
  selected.

  

 

 

9

 

 

Part G.         Allocation of Forfeitures
of Excess Aggregate Contributions:

Forfeitures of
Excess Aggregate Contributions shall be (Choose
one):

	
  Option 1:

  	
  o

  	
  Allocated,
  after all other Forfeitures under the Plan, to each Contributing
  Participant's Matching Contribution account in the ratio which each
  Contributing Participant's Compensation for the Plan Year bears to the total
  Compensation of all Contributing Participants for such Plan Year. Such
  Forfeitures will not be allocated to the account of any Highly Compensated
  Employee.

  
	
   

  	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  Applied to
  reduce Matching Contributions (Choose one):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (a):

  	
  o

  	
  For the Plan
  Year for which the Forfeiture arises.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (b):

  	
  o

  	
  For any Plan
  Year subsequent to the Plan Year for which the Forfeiture arises.

  
	
   

  	
   

  	
   

  	
   

  
	
  Option 3:

  	
  o

  	
  Applied
  first to the payment of the Plan's administrative expenses and any excess
  applied to reduce Matching Contributions (Choose
  one):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (a):

  	
  o

  	
  For the Plan
  Year for which the Forfeiture arises.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suboption
  (b):

  	
  o

  	
  For any Plan
  Year subsequent to the Plan Year for which the Forfeiture arises.

  
	
   

  	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 2 and Suboption (a) will be deemed to be
  selected.

  

 

	
  SECTION 13. NORMAL RETIREMENT AGE AND EARLY
  RETIREMENT AGE

  
	
   

  

Part A.         The Normal Retirement Age
under the Plan shall be (check and complete
one option):

	
  Option 1:

  	
  ý

  	
  Age 65.

  
	
   

  	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  Age
  _________ (not to exceed 65)

  
	
   

  	
   

  	
   

  	
   

  
	
  Option 3:

  	
  o

  	
  The later of
  age _____ (not to exceed 65) or
  the ____ (not to exceed 5th)
  anniversary of the first day of the first Plan Year in which the Participant
  commenced participation in the Plan.

  
	
   

  	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  

 

Part B.         Early Retirement Age (Choose one option):

	
  Option 1:

  	
  o

  	
  An Early
  Retirement Age is not applicable under the Plan.

  
	
   

  	
   

  	
   

  	
   

  
	
  Option 2:

  	
  ý

  	
  Age 55 (not less than 55 nor more than 65).

  
	
   

  	
   

  	
   

  	
   

  
	
  Option 3:

  	
  o

  	
  A
  Participant satisfies the Plan's Early Retirement Age conditions by attaining
  age _______ (not less than 55)
  and completing ___ Years of Vesting Service.

  
	
   

  	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  

 

	
  SECTION 14. DISTRIBUTIONS

  
	
   

  

Distributable
Events. Answer each of the following items.

	
  A.

  	
   

  	
  Termination
  of Employment Before Normal Retirement Age. May a Participant who has not
  reached Normal Retirement Age request a distribution from the Plan upon
  Termination of Employment?

  	
   

  	
  ý

  	
   

  	
  Yes

  	
   

  	
  o

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  Disability.
  May a Participant who has incurred a Disability request a distribution from
  the Plan?

  	
   

  	
  ý

  	
   

  	
  Yes

  	
   

  	
  o

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C.

  	
   

  	
  Attainment
  of Normal Retirement Age. May a Participant who has attained Normal
  Retirement Age but has not incurred a Termination of Employment request a
  distribution from the Plan?

  	
   

  	
  ý

  	
   

  	
  Yes

  	
   

  	
  o

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D.

  	
   

  	
  Attainment
  of Age 59 1/2. Will Participants who have attained age 59 1/2 be permitted to
  withdraw Elective Deferrals while still employed by the Employer?

  	
   

  	
  ý

  	
   

  	
  Yes

  	
   

  	
  o

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E.

  	
   

  	
  Hardship
  Withdrawals of Elective Deferrals. Will Participants be permitted to withdraw
  Elective Deferrals on account of hardship pursuant to Section 11.503 of the
  Plan?

  	
   

  	
  ý

  	
   

  	
  Yes

  	
   

  	
  o

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F.

  	
   

  	
  In-Service
  Withdrawals. Will Participants be permitted to request a distribution during
  service pursuant to Section 6.01(A)(3) of the Plan?

  	
   

  	
  o

  	
   

  	
  Yes

  	
   

  	
  ý

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  G.

  	
   

  	
  Hardship
  Withdrawals. Will Participants be permitted to make hardship withdrawals
  pursuant to Section 6.01(A)(4) of the Plan?

  	
   

  	
  ý

  	
   

  	
  Yes

  	
   

  	
  o

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  H.

  	
   

  	
  Withdrawals
  of Rollover or Transfer Contributions. Will Employees be permitted to
  withdraw their Rollover or Transfer Contributions at any time?

  	
   

  	
  o

  	
   

  	
  Yes

  	
   

  	
  ý

  	
   

  	
  No

  

 

NOTE:
If a box is not checked for an item,
"Yes" will be deemed to be selected for that item. Section 411(d)(6)
of the Code prohibits the elimination of protected benefits. In general,
protected benefits include the forms and timing of payout options. If the Plan
is being adopted to amend and replace a Prior Plan that permitted a
distribution option described above, you must answer "Yes" to that
item.

 

 

10

 

	
  SECTION 15. JOINT AND SURVIVOR ANNUITY

  
	
   

  

Part A.         Retirement Equity Act
Safe Harbor:

	
  Will the
  safe harbor provisions of Section 6.05(F) of the Plan apply? (Choose only one option)

  
	
  Option 1:

  	
  ý

  	
  Yes.

  
	
   

  	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  No.

  
	
   

  	
   

  	
   

  	
   

  
	
  NOTE: You
  must select "No" if you are adopting this Plan as an amendment and
  restatement of a Prior Plan that was subject to the joint and survivor
  annuity requirements.

  
	
   

  	
   

  	
   

  	
   

  

 

Part B.         Survivor Annuity
Percentage: (Complete only if your
answer in Section 15, Part A is "No.")

The survivor
annuity portion of the Joint and Survivor Annuity shall be a percentage equal
to _______% (at least 50% but no more than
100%) of the amount paid to the Participant prior to his or her
death.

	
  SECTION 16. OTHER OPTIONS

  Answer
  "Yes" or "No" to each of the following questions by
  checking the appropriate box.

  If a box is not
  checked for a question, the answer will be deemed to be "No."

  

 

	
  A.

  	
   

  	
  Loans: Will
  loans to Participants pursuant to Section 6.08 of the Plan be permitted?

  	
   

  	
  ý

  	
   

  	
  Yes

  	
   

  	
  o

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  Insurance:
  Will the Plan allow for the investment in insurance policies pursuant to
  Section 5.13 of the Plan?

  	
   

  	
  o

  	
   

  	
  Yes

  	
   

  	
  ý

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C.

  	
   

  	
  Employer
  Securities: Will the Plan allow for the investment in qualifying Employer
  securities or qualifying Employer real property?

  	
   

  	
  o

  	
   

  	
  Yes

  	
   

  	
  ý

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D.

  	
   

  	
  Rollover
  Contributions: Will Employees be permitted to make rollover contributions to
  the Plan pursuant to Section 3.03 of the Plan?

  	
   

  	
  ý

  	
   

  	
  Yes

  	
   

  	
  o

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  Yes, but
  only after becoming a Participant.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E.

  	
   

  	
  Transfer
  Contributions: Will Employees be permitted to make transfer contributions to
  the Plan pursuant to Section 3.04 of the Plan?

  	
   

  	
  o

  	
   

  	
  Yes

  	
   

  	
  ý

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  Yes, but
  only after becoming a Participant.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F.

  	
   

  	
  Nondeductible
  Employee Contributions: Will Employees be permitted to make Nondeductible
  Employee Contributions pursuant to Section 11.305 of the Plan?

  Check here if such contributions will be mandatory.  o

  	
   

  	
  o

  	
   

  	
  Yes

  	
   

  	
  ý

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  G.

  	
   

  	
  Will
  Participants be permitted to direct the investment of their Plan assets
  pursuant to Section 5.14 of the Plan?

  	
   

  	
  ý

  	
   

  	
  Yes

  	
   

  	
  o

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  SECTION 17. LIMITATION ON ALLOCATIONS

  More Than One Plan

  
	
   

  

If you maintain or ever
maintained another qualified plan (other than a paired standardized money
purchase pension plan using the same Basic Plan Document as this Plan) in which
any Participant in this Plan is (or was) a Participant or could become a
Participant, you must complete this section. You must also complete this
section if you maintain a welfare benefit fund, as defined in Section 419(e) of
the Code, or an individual medical account, as defined in Section 415(1)(2) of
the Code, under which amounts are treated as annual additions with respect to
any Participant in this Plan.

 

Part
A.   Individually Designed Defined
Contribution Plan:

If the
Participant is covered under another qualified defined contribution plan
maintained by the Employer, other than a master or prototype plan:

	
  1.

  	
   

  	
  o

  	
   

  	
  The
  provisions of Section 3.05(B)(1) through 3.05(B)(6) of the Plan will apply as
  if the other plan were a master or prototype plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  ý

  	
   

  	
  Other
  method. (Provide the method under which
  the plans will limit total annual additions to the maximum permissible
  amount, and will properly reduce any excess amounts, in a manner that
  precludes Employer discretion.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  The provisions of Section 3.05(B), (C) and (E) of the Plan will
  apply, provided that any excess amounts will be corrected first by returning
  to a Participant his/her elective deferrals (with Income attributable
  thereto) and then by reducing the Participant's allocations under the
  International House of Pancakes ESOP Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

11

 

 

Part
B.   Defined Benefit Plan:

 

	
  If the
  Participant is or has ever been a participant in a defined benefit plan
  maintained by the Employer, the Employer will provide below the language
  which will satisfy the 1.0 limitation of Section 415(e) of the Code.

  
	
   

  
	
  1.

  	
   

  	
  o

  	
   

  	
  If the
  projected annual addition to this Plan to the account of a Participant for
  any limitation year would cause the 1.0 limitation of Section 415(e) of the
  Code to be exceeded, the annual benefit of the defined benefit plan for such
  limitation year shall be reduced so that the 1.0 limitation shall be
  satisfied.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  If it is not
  possible to reduce the annual benefit of the defined benefit plan and the
  projected annual addition to this Plan to the account of a Participant for a
  limitation year would cause the 1.0 limitation to be exceeded, the Employer
  shall reduce the Employer Contribution which is to be allocated to this Plan
  on behalf of such Participant so that the 1.0 limitation will be satisfied.
  (The provisions of Section 415(e) of the Code are incorporated herein by
  reference under the authority of Section 1106(h) of the Tax Reform Act of
  1986.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  o

  	
   

  	
  Other
  method. (Provide language describing
  another method. Such language must preclude Employer discretion.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  SECTION 18. TOP-HEAVY MINIMUM

  Complete Parts A
  and B

  
	
   

  

Part
A.   Minimum Allocation or Benefit:

 

	
  For any Plan
  Year with respect to which this Plan is a Top-Heavy Plan, any minimum
  allocation required pursuant to Section 3.01(E) of the Plan shall be made (Choose one):

  
	
  Option 1:

  	
  ý

  	
  To this
  Plan.

  
	
   

  	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  To the
  following other plan maintained by the Employer (Specify name and plan number of plan)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Option 3:

  	
  o

  	
  In
  accordance with the method described on an attachment to this Adoption
  Agreement. (Attach language describing the
  method that will be used to satisfy Section 416 of the Code. Such method must
  preclude Employer discretion.)

  
	
   

  	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  
	
   

  	
   

  	
   

  	
   

  

 

Part
B.   Top-Heavy Vesting Schedule:

 

	
  Pursuant to
  Section 6.01(C) of the Plan, the vesting schedule that will apply when this
  Plan is a Top-Heavy Plan (unless the Plan's regular vesting schedule provides
  for more rapid vesting) shall be (Choose
  one):

  
	
  Option 1:

  	
  o

  	
  6 Year
  Graded.

  
	
   

  	
   

  	
   

  	
   

  
	
  Option 2:

  	
  o

  	
  3 Year
  Cliff.

  
	
   

  	
   

  	
   

  	
   

  
	
  NOTE: If
  no option is selected, Option 1 will be deemed to be selected.

  
	
   

  	
   

  	
   

  	
   

  

 

	
  SECTION 19. PROTOTYPE SPONSOR

  
	
   

  

 

	
  Name of
  Prototype Sponsor

  	
   

  	
  Travelers Insurance Company

  
	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
  One Tower Square, Hartford, CT 06183

  
	
   

  	
   

  	
   

  
	
  Telephone
  Number

  	
   

  	
  888-822-4710

  
	
   

  	
   

  	
   

  

 

Permissible
Investments

 

The assets of the Plan shall be
invested only in those investments described below (To be completed by the Prototype Sponsor):

 

	
  Assorted mutual funds; brokerage accounts; and related investments.

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  

 

12

 

 

	
  SECTION 20. TRUSTEE OR CUSTODIAN

  
	
   

  

 

	
  Option A:

  	
   

  	
  ý

  	
   

  	
  Financial
  Organization as Trustee or Custodian

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Check One:

  	
   

  	
  o

  	
   

  	
  Custodian

  	
   

  	
  ý

  	
   

  	
  Trustee without
  full trust powers, or

  	
   

  	
  o

  	
   

  	
  Trustee with
  full trust powers

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Financial
  Organization

  	
   

  	
  See attached addendum

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Type Name

  	
   

  	
   

  

 

Collective
or Commingled Funds

 

List any collective or
commingled funds maintained by the financial organization Trustee in which
assets of the Plan may be invested (Complete
if applicable). Collective
trust funds of Salomon Smith Barney and/or the Travelers.

 

 

	
  Option B:

  	
   

  	
  o

  	
   

  	
  Individual
  Trustee(s)

  

 

	
  Signature

  	
   

  	
   

  	
  Signature

  	
   

  
	
  Type Name

  	
   

  	
   

  	
  Type Name

  	
   

  
	
  Signature

  	
   

  	
   

  	
  Signature

  	
   

  
	
  Type Name

  	
   

  	
   

  	
  Type Name

  	
   

  

 

	
  SECTION 21. RELIANCE

  
	
   

  

An Employer who has ever
maintained or who later adopts any plan (including a welfare benefit fund, as
defined in Section 419(e) of the Code, which provides post-retirement medical
benefits allocated to separate accounts for key employees, as defined in
Section 419(d)(3) of the Code, or an individual medical account, as defined in
Section 415(1)(2) of the Code) in addition to this Plan (other than a paired
standardized money purchase pension plan using the same Basic Plan Document as
this Plan) may not rely on the opinion letter issued by the National Office of
the Internal Revenue Service as evidence that this Plan is qualified under
Section 401 of the Internal Revenue Code. If the Employer who adopts or
maintains multiple plans wishes to obtain reliance that his or her plan(s) are
qualified, application for a determination letter should be made to the
appropriate Key District Director of Internal Revenue.

 

The Employer may not rely on the
opinion letter issued by the National Office of the Internal Revenue Service as
evidence that this Plan is qualified under Section 401 of the Code unless the
terms of the Plan, as herein adopted or amended, that pertain to the
requirements of Sections 401(a)(4), 401(a)(17), 401(1), 401(a)(5), 410(b) and
414(s) of the Code, as amended by the Tax Reform Act of 1986, or later laws,
(a) are made effective retroactively to the first day of the first Plan Year
beginning after December 31, 1988 (or such later date on which these
requirements first become effective with respect to this Plan); or (b) are made
effective no later than the first day on which the Employer is no longer
entitled, under regulations, to rely on a reasonable, good faith interpretation
of these requirements, and the prior provisions of the Plan constitute such an
interpretation.

 

This Adoption Agreement may be
used only in conjunction with Basic Plan Document No. 04.

 

	
  SECTION 22. EMPLOYER SIGNATURE

  Important: Please
  read before signing

  
	
   

  

 

	
  I am an
  authorized representative of the Employer named above and I statement
  following:

  
	
   

  
	
  1.

  	
   

  	
  I
  acknowledge that I have relied upon my own advisors regarding the completion
  of this Adoption Agreement and the legal tax implications of adopting this
  Plan

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  I understand
  that my failure to properly complete this Adoption Agreement may result in
  disqualification of the Plan.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  I understand
  that the Prototype Sponsor will inform me of any amendments made to the Plan
  and will notify me should it discontinue or abandon the Plan.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  I have
  received a copy of this Adoption Agreement and the corresponding Basic Plan
  Document.

  
	
   

  	
   

  	
   

  

 

	
  Signature
  for Employer

  	
   

  	
  /s/ Richard
  K. Herzer

  	
   

  	
  Date Signed

  	
   

  	
  July 17,
  2001

  
	
   

  	
   

  	
  Richard K.
  Herzer/President

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type Name

  	
   

  	
   

  	
   

  	
  Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

13

 

 

Addendum to the International House of
Pancakes 401(k) Plan

As Amended and Restated Effective October 1, 2001

 

	
  1.

  	
   

  	
  Section 20.
  Smith Barney Corporate Trust Company shall serve as Trustee hereunder in
  accordance with the terms and conditions of the Smith Barney Corporate Trust
  Company Trust Agreement annexed hereto.

  
	
   

  	
   

  	
   

  

 

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]