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  TABLE OF CONTENTS

 

Exhibit 10.5    
    

         AMENDMENT AND COMPLETE RESTATEMENT

OF THE

PROFIT SHARING PLAN FOR EMPLOYEES

OF

ALLIANCE CAPITAL MANAGEMENT L.P.  

(As
amended through 1/1/02) 

 

TABLE OF CONTENTS    
    

 

	 
	 	 

	ARTICLE I —	 	DEFINITIONS
	ARTICLE II —	 	MEMBERSHIP
	ARTICLE III —	 	CREDITING OF SERVICE
	ARTICLE IV —	 	COMPANY CONTRIBUTIONS
	ARTICLE V —	 	MEMBER SALARY DEFERRAL ELECTIONS, SALARY DEFERRAL CONTRIBUTIONS AND CONTRIBUTIONS
	ARTICLE VI —	 	ALLOCATIONS OF COMPANY CONTRIBUTIONS AND FORFEITURES
	ARTICLE VII —	 	ACCOUNTS, ALLOCATIONS AND LOANS
	ARTICLE VIII —	 	VALUATION
	ARTICLE IX —	 	DETERMINATION OF BENEFITS
	ARTICLE X —	 	TIME AND MANNER OF PAYMENT OF BENEFITS
	ARTICLE XI —	 	ADMINISTRATION OF THE PLAN
	ARTICLE XII —	 	THE TRUST FUND
	ARTICLE XIII —	 	CERTAIN RIGHTS AND OBLIGATIONS OF THE COMPANY
	ARTICLE XIV —	 	NON-ALIENATION OF BENEFITS
	ARTICLE XV —	 	AMENDMENTS
	ARTICLE XVI —	 	LIMITATIONS ON BENEFITS AND CONTRIBUTIONS
	ARTICLE XVII —	 	TOP-HEAVY PLAN YEARS
	ARTICLE XVIII —	 	MISCELLANEOUS

PROFIT SHARING PLAN FOR EMPLOYEES

OF

ALLIANCE CAPITAL MANAGEMENT L. P.  

        WHEREAS, effective as of January 1, 1972, the predecessor of Alliance Capital Management L.P. ("Alliance") established a profit sharing plan covering its
employees; and 

        WHEREAS,
that plan as subsequently amended and completely restated was adopted and continued by Alliance in connection with the transfer on April 21, 1988 of the predecessor's
business and substantially all of its operating assets and liabilities to Alliance and prior to that transfer and in connection therewith again amended and renamed the plan as the Profit Sharing Plan
for Employees of Alliance Capital Management L.P. (the "Plan"); and 

        WHEREAS,
the Plan was amended and restated effective January 1, 1989 to comply with amendments to applicable law and to make certain other changes and was subsequently further
amended; and 

        WHEREAS,
the Plan was again amended and restated effective January 1, 1993 to permit the investment of plan assets in Units of Alliance, to comply with amendments to applicable
law and to make certain other changes, subject to such changes as necessary for the Plan to satisfy the requirements for qualification under Section 401(a) of the Internal Revenue Code of 1986,
as amended, for the trust under the Plan to be exempt from tax under Code Section 501(a), and for the Plan to satisfy any other applicable requirements of the Employee Retirement Income
Security Act of 1974, as amended; and 

        WHEREAS,
the Plan was amended effective January 1, 1995 to reflect the merger of the Alliance Capital Management L.P. Profit Sharing Plan for Former Employees of Equitable Capital
Management Corporation with and into this Plan; and 

        WHEREAS,
further amendments to the Plan were necessary to satisfy requirements of Code Section 401(a) as a condition to a favorable determination letter dated March 31,
1995 with respect to the qualification, of the Plan under that Section; 

        WHEREAS,
the Plan was amended and restated effective either as of January 1, 1993, or as of such other date with respect to a particular amendment as 

 

required
for the Plan to satisfy any applicable requirement for qualification under Code Section 401(a); 

        WHEREAS,
further amendments to the Plan were necessary to satisfy requirements of Code Section 401(a) with respect to the qualification of the Plan under that Section; 

        NOW,
THEREFORE, this document sets forth the Plan as embodying such further amendments which are effective either as of January 1, 2002, except as otherwise provided, or as of
such other date with respect to a particular amendment as required for the Plan to satisfy any applicable requirement for qualification under Code Section 401(a). 

2

 
 
 

ARTICLE I
  
    DEFINITIONS.    
    

        For the purposes of this Plan, except as otherwise herein expressly provided or unless the context otherwise requires, when capitalized: 

        Section 1.01.    "Account" means any one or more of the following
accounts maintained by the Committee for a Member: 

        (a)   his
Company Contributions Account; 

        (b)   his
Member Contributions Account; 

        (c)   his
Member Salary Deferral Account; and 

        (d)   his
Rollover Account. 

        Section 1.02.    "Act" means the Employee Retirement Income Security Act
of 1974, as amended from time to time. 

        Section 1.03.    "Accounting Date" means the last business day of each
Plan Year and any other date which may be determined by the Committee under uniform and non-discriminatory procedures established by the Committee. 

        Section 1.04.    "Anniversary Year" means each twelve (12) month
period beginning on an Employee's Employment Commencement Date or any annual anniversary thereof. 

        Section 1.05.    "Affiliate" means any corporation or unincorporated
business (a) controlled by, or under common control with, the Company within the meaning of Code Sections 414(b) and (c), or (b) which is a member of an "affiliated service group", as
defined in Code Section 414(m), of which the Company is a member. 

        Section 1.06.    "Assignor Limited Partner" shall mean Alliance
ALP, Inc., a Delaware corporation, or any individual, corporation, association, partnership, joint venture, entity, estate or other entity or organization designated by the general partner of
the Company to serve as a substitute therefore. 

        Section 1.07.    "Beneficiary" means the person (including a trust or
estate of a Member) designated by a Member, or who may otherwise be entitled under 

3

 

the
terms of the Plan to receive the balance, if any, of the Member's Accounts upon the Member's death. 

        Section 1.08.    "Board" means the Board of Directors of the general
partner of the Company responsible for the management of the Company's business, or a committee thereof designated by such Board. 

        Section 1.09.    "Break in Service" means, with respect to any Employee,
any Anniversary Year ending on or after the date of his Separation from Service and before his date of re-employment, if any, in which he does not complete more than five hundred
(500) Hours of Service with Employees or Affiliates; provided that in the case of the absence of an Employee pursuant to the Family and Medical Leave Act of 1993 (the "FMLA"), the period
beginning on the first date of such absence and ending 12 months thereafter shall not constitute a "Break in Service". 

        Section 1.10.    "Code" means the Internal Revenue Code of 1986, as
amended from time to time. 

        Section 1.11.    "Committee" means the administrative committee appointed
to administer the Plan, the members of which shall be the person or persons appointed pursuant to Section 11.01. 

        Section 1.12.    "Company" means (a) Alliance Capital Management
Corporation for the period prior to April 21, 1988 and (b) for subsequent periods, Alliance Capital Management L.P. and any successor thereto. 

        Section 1.13.    "Company Contribution" means a contribution for a Plan
Year made by an Employer to the Trust pursuant to Section 4.01 or Section 4.02, but not Section 5.01, including any amount to be applied from the Unallocated Forfeitures Account
in reduction of the contribution which would otherwise be made for the Plan Year involved. 

        Section 1.14.    "Company Contributions Account" means the Account
consisting of the balance attributable to Company Contributions. 

        Section 1.15.    "Compensation" means a Member's base salary (or Draw, if
no base salary) received for services rendered to an Employer, which term shall include the amount of a Member's Salary Deferral, but shall not include, by way of example rather than by way of
limitation, overtime pay, bonuses, severance pay, distributions on Units, reimbursement for moving expenses, reimbursement for educational expenses, reimbursement for any other expenses, contributions
or benefits paid under this Plan or any other plan of deferred compensation, or any other extraordinary item of compensation or income; provided that in the case of a 

4

 

Member
whose compensation from an Employer includes commissions, commissions shall be included only to the extent that the Member's aggregate compensation taken into account does not exceed $100,000
and provided further that such amount shall be prorated for those Members (based on amount of service as a Member (as defined pursuant to Article IV)) for purposes of Company Profit Sharing
Contributions and Company Matching Contributions. In addition, Compensation shall not include amounts paid to non-resident aliens which do not constitute income from United States sources
(within the meaning of Code Section 862) except in the case of a non-resident alien who is a Member and for whom the Company so specifies. For Plan Years beginning on or after
January 1, 1994, Compensation of a Member in excess of $150,000 (or such other amount prescribed under Code Section 401(a)(17), including any cost-of-living
adjustments) shall not be taken into account under the Plan for the purpose of determining benefits. For Plan Years beginning on or after January 1, 1989 and before January 2, 1994,
$200,000 shall be substituted for $150,000 in the preceding sentence. 

        Section 1.16.    "Draw" means compensation received on a regular basis at
a consistent rate which may be offset against commissions earned but which is considered "base compensation" for purposes of the Plan. 

        Section 1.17.    "ECMC Plan" means the Alliance Capital Management L.P.
Profit Sharing Plan for Former Employees of Equitable Capital Management Corporation as in effect immediately prior to January 1, 1995. 

        Section 1.18.    (a) "Employee" means, except as provided in
Subsection (c), any person employed by an Employer or an Affiliate. 

        (b)   An
Excluded Employee (as defined in Subsection (c)) shall be considered an Employee for all purposes under the Plan except that: 

        (1)   an
Excluded Employee may not become a Member while he remains an Excluded Employee; and 

        (2)   a
Member who becomes an Excluded Employee shall be an Inactive Member while he remains an Excluded Employee. 

        (c)   An
Excluded Employee shall mean an individual in the employ of an Employer or an Affiliate who: 

        (1)   is
employed by an Affiliate that is not an Employer; or 

5

 

        (2)   included
in a unit of employees covered by a collective bargaining agreement between employee representatives and one or more Employers or Affiliates, if retirement
benefits were the subject of good faith bargaining between such employee representatives and any such Employer or Affiliate; or 

        (3)   is
not an Excluded Employee under Paragraph (4) of this Subsection (c) and is neither a resident nor a citizen of the United States, nor receives "earned
income", within the meaning of Code Section 911(b), from an Employer or Affiliate that constitutes income from sources within the United States, within the meaning of Code
Section 861(a)(3), unless the individual became a Participant prior to becoming a non- resident alien and the Company stipulates that he shall not be an Excluded Employee; or 

        (4)   is
not a citizen of the United States, unless the individual (A) was initially engaged as an Employee by an Employer or an Affiliate to render services entirely
or primarily in the United States; or (B) is an Employee of an Employer which is a United States entity, and unless, in the case of an individual referred to in either Subparagraph
(A) or (B) of this Paragraph 4, the Company stipulates that he shall not be an Excluded Employee; or 

        (5)   is
accruing benefits and/or receiving contributions under a retirement plan of an Affiliate which operates entirely or primarily outside the United States other than
this Plan or the Retirement Plan for Employees of Alliance Capital Management L.P. unless, in either case, the Company stipulates that he shall not be an Excluded Employee; or 

        (6)   is
compensated on a commission arrangement which does not provide for payment of periodic draws against actual commissions earned; or 

        (7)   is
a "leased employee." For purposes of this Plan, "leased employee" means, any person (other than an Employee of the recipient) who pursuant to an agreement between the
recipient and any other person ("leasing organization") has performed services for the recipient (or for the recipient and related persons determined in accordance with Code Section 414(n)(6)
on a substantially full time basis for a period of at least one year, and 

6

 

such
services are performed under primary direction or control by the recipient employer; or 

        (8)   is
classified by the Employer at the time services are provided as either an independent contractor, or an individual who is not classified as an Employee due to an
Employer's treatment of any services provided by him as being provided by another entity which is providing such individual's services to the Employer, even if such individual is later retroactively
reclassified as an Employee during all or part of such period during which services were provided pursuant to applicable law or otherwise; or 

        (9)   is
employed by Sanford C. Bernstein & Co., Inc. or Bernstein Technologies Inc. or their subsidiaries on September 29, 2000. 

        Section 1.19.    "Employer" means the Company and any Affiliate which,
with the consent of the Board, has adopted the Plan as a participant herein, and any successor to any such Employer. 

        Section 1.20.    "Employment Commencement Date" means: 

        (a)   the
date on which an Employee first performs an Hour of Service; or 

        (b)   in
the case of a former Employee who has incurred a Break in Service, the date on which he first completes an Hour of Service following his Separation from Service. 

        Section 1.21.    "Entry Date" means: 

        January 1
and July 1 of each Plan Year after 1988. Notwithstanding the foregoing, as provided in Section 2.01(b), for purposes of a Member's eligibility to make
Member Salary Deferrals to a Member Salary Deferral Account established in accordance with the provisions of Article V, "Entry Date" shall mean the first day of the calendar month occurring
after the completion of the Member's first regular payroll period. 

        Section 1.22.    "Highly Compensated Employee" means an Employee who,
with respect to the "determination year": 

        (a)   owned
(or is considered as owning within the meaning of Code Section 318) at any time during the "determination year" or "look-back year" more than
five percent of the outstanding stock of the Employer or stock 

7

 

possessing
more than five percent of the total combined voting power of all stock of the Employer (the attribution of ownership interest to "Family Members" shall be used pursuant to Code
Section 318); or 

        (b)   who
received "415 Compensation" during the "look-back year" from the Employer in excess of $80,000 and was in the Top Paid Group of Employees for the
"look-back year". 

        The
"determination year" shall be the Plan Year for which testing is being performed. The "look-back year" shall be the Plan Year immediately preceding the "determination
year." 

        For
purposes of this Section, the determination of "415 Compensation" for Plan Years beginning before January 1, 1998 shall be made by including amounts that would otherwise be
excluded from an Employee's gross income by reason of the application of Code Sections 125, 402(e)(3), 402(h)(1)(B) and, in the case of Employer contributions made pursuant to a salary reduction
agreement, by including amounts that would otherwise be excluded from an Employee's gross income by reason of the application of Code Section 403(b). For Plan Years beginning after
December 31, 1997, the term "415 Compensation" shall include: (i) any elective deferral (as defined in Code Section 402(g)(3)) and (ii) any amount which is contributed or
deferred by the Employer at the election of the Employee and which is not includible in the gross income of the Employee by reason of Code Sections 125, 132(f)(4), 401(k) or 457. 

        The
dollar threshold amount specified in (b) above shall be adjusted at such time and in such manner as is provided in Regulations. In the case of such an adjustment, the dollar
limits which shall be applied are those for the calendar year in which the "determination year" or "look-back year" begins. 

        In
determining who is a Highly Compensated Employee, Employees who are nonresident aliens and who received no earned income (within the meaning of Code Section 911(d)(2)) from the
Employer constituting United States source income within the meaning of Code Section 861(a)(3) shall not be treated as Employees. 

        Additionally,
all Affiliated Employers shall be taken into account as a single employer and Leased Employees within the meaning of Code Sections 414(n)(2) and 414(o)(2) shall be
considered Employees unless such Leased Employees are covered by a plan described in Code Section 414(n)(5) and are not covered in any qualified plan maintained by the Employer. The exclusion
of Leased Employees for this purpose shall be applied on a uniform and consistent basis for all of the Employer's retirement plans. Highly Compensated Former 

8

 

Employees
shall be treated as Highly Compensated Employees without regard to whether they performed services during the "determination year". 

        Section 1.23.    "Highly Compensated Former Employee" means a former
Employee who had a separation year prior to the "determination year" and was a Highly Compensated Employee in the year of separation from service or in any "determination year" after attaining age 55.
Notwithstanding the foregoing, an Employee who separated from service prior to 1987 will be treated as a Highly Compensated Former Employee only if during the separation year (or year preceding the
separation year) or any year after the Employee attains age 55 (or the last year ending before the Employee's 55th birthday), the Employee either received "415 Compensation" in excess of $50,000 or
was a "five percent owner". For purposes of this Section, "determination year", "415 Compensation" and "five percent owner" shall be determined in accordance with Section 1.22. Highly
Compensated Former Employees shall be treated as Highly Compensated Employees. The method set forth in this Section for determining who is a "Highly Compensated Former Employee" shall be applied on a
uniform and consistent basis for all purposes for which the Code Section 414(q) definition is applicable. 

        Section 1.24.    (a) "Hour of Service" means: 

        (1)   each
hour for which an Employee is paid, or entitled to payment, by an Employer or Affiliate for the performance of duties for such Employer or Affiliate, credited for
the Plan Year or other computation period in which such duties were performed; or 

        (2)   each
hour of a period during which no duties are performed due to vacation, holiday, illness, incapacity, layoff, jury duty, military duty or leave of absence,
determined in accordance with the following rules: 

        (A)  if
the Employee is directly or indirectly paid, or entitled to payment, by an Employer or Affiliate on account of such period of absence: 

          (i)  he
shall be credited with Hours of Service during the entire period of absence in accordance with Subsections (b) and (c), if he returns to the employ of an
Employer or Affiliate at the conclusion of such period; and 

         (ii)  he
shall be credited with Hours of Service in accordance with Subsections (b) and (c) up to a maximum of five hundred (500) Hours of Service in
each such period 

9

 

of
absence, if he does not return to the employ of an Employer or Affiliate at the conclusion of such period; 

        (B)  if
the Employee is not paid, or entitled to payment, by an Employer or Affiliate on account of such period of absence: 

          (i)  he
shall be credited with forty (40) Hours of Service for each week, or eight (8) Hours of Service for each weekday, of the period of absence, if he
returns to the employ of an Employer or Affiliate at the conclusion of such period; and 

         (ii)  he
shall be credited with no Hours of Service in respect of such period of absence, if he does not return to the employ of an Employer or Affiliate at the conclusion of
such period; 

        (3)   each
hour during the Employee's period of service in the Armed Forces of the United States, credited on the basis of forty (40) Hours of Service for each week, or
eight (8) Hours of Service for each weekday, of such service, if the Employee retains re-employment rights under the Military Selective Service Act and is re-employed by
an Employer or Affiliate within the period provided by such Act; and 

        (4)   each
hour for which an Employee has been awarded, or is otherwise entitled from an Employer or Affiliate, irrespective of mitigation of damages, if he is not entitled to
credit for such hour under any other Paragraph in this Subsection (a). 

        (5)   (A)
solely for purposes of Section 1.09, each hour of an Employee's absence commencing on or after January 1, 1985: 

          (i)  by
reason of leave pursuant to the FMLA; 

         (ii)  by
reason of the pregnancy of such Employee; 

        (iii)  by
reason of the birth of a child of such Employee; 

        (iv)  by
reason of the placement of a child in connection with the adoption of such child by the Employee; or 

10

 

         (v)  for
purposes of caring for such child for a period beginning immediately following such birth or placement, determined in accordance with Subparagraphs (B),
(C) and (D). 

        (B)  The
number of hours credited to an Employee pursuant to Subparagraph (A) shall be: 

          (i)  the
number of hours which otherwise would normally have been credited to such Employee but for such absence; or 

         (ii)  in
any case in which the Plan cannot determine the number of hours which would normally be credited to such individual, a total of eight (8) Hours of Service for
each day of such absence, 

except
that the total number of Hours of Service credited to an Employee under this Paragraph (5) shall not exceed 501 Hours of Service for any such period of absence. 

        (C)  The
Hours of Service credited to an Employee pursuant to this Paragraph (5) shall be credited: 

          (i)  only
in the Anniversary Year in which such period of absence began, if such Employee would be prevented from incurring a Break in Service in such Anniversary Year
solely because of the crediting of Hours of Service during such period of absence pursuant to this Paragraph (5); or 

         (ii)  in
any other case, in the Anniversary Year next succeeding the commencement of such period of absence. 

        (D)  Notwithstanding
the foregoing, an Employee shall not be credited with Hours of Service pursuant to this Paragraph (5) unless such Employee shall furnish to the
Committee, on a timely basis, such information as the Committee shall reasonably require to establish: 

11

 

          (i)  that
the absence from work is for a reason described in Subparagraph (A) hereof; and 

         (ii)  the
number of days during which such absence continued. 

        (b)   The
number of Member's Hours of Service and the Plan Year or other computation period to which they are to be credited shall be determined in accordance with
Section 2530.200b-2 of the Rules and Regulations for minimum Standards for Employee Pension Benefit Plans, which Section is hereby incorporated by reference into this Plan. 

        (c)   In
the case of an Employee whose Compensation is not determined on the basis of certain amounts for each hour worked, such Employee's Hours of Service need not be
determined from employment records, and such Employee may, in accordance with uniform and non-discriminatory rules adopted by the Committee, be credited with forty-five
(45) Hours of Service for each week in which he would be credited with any Hours of Service under the provisions of Subsection (a) or (b). 

        Section 1.25.    "Inactive Member" means a Member described in
Section 2.02(b). An Inactive Member shall be treated as a Member for purposes of Article VII and Section 11.03, but shall not otherwise be deemed a Member of the Plan. 

        Section 1.26.    "Independent Fiduciary" means a person or entity who is
not an employee or officer of the Company or its Affiliates who is appointed by the Company pursuant to Section 7.10 to perform the functions described therein. 

        Section 1.27.    "Investment Fund" means those investment funds which
may, from time to time, be made available for investment pursuant to Article VII. 

        Section 1.28.    "Leave of Absence" means: 

        (a)   absence
on leave approved by an Employee's employer, if the period of such leave does not exceed two (2) years and the Employee returns to the employ of an
Employer or an Affiliate upon its termination; or 

        (b)   absence
due to service in the Armed Forces of the United States, if such absence is caused by war or other national emergency or an Employee is required to serve under
the laws of conscription in time of peace, and if the Employee returns to the employ of an Employer or an Affiliate within the period provided by law; or 

12

  

        (c)   absence
for a period not in excess of thirteen (13) consecutive weeks due to leave granted by an Employee's employer, military service, vacation, holiday,
illness, incapacity, layoff, or jury duty, if the Employee does not return to the employ of an Employer or Affiliate at the end of such period. In granting or withholding Leaves of Absence, each
Employer or Affiliate shall apply uniform and non-discriminatory rules to all Employees in similar circumstances. 

        Section 1.29.    "Loan Account" means the account maintained by the
Committee for a "Borrower" as defined in Section 7.07 in which a loan by the Borrower made pursuant to that Section is held. 

        Section 1.30.    "Member" means any person who has been admitted to
membership in this plan pursuant to Section 2.01 or 2.03 and whose membership has not terminated pursuant to Section 2.02. In addition, for purposes of Article VII and
Section 11.03, the term "Member" includes a former Member or Beneficiary for whom an Account is maintained under the Plan. 

        Section 1.31.    "Member Contributions Account" means the Account
maintained for a Member in which are held voluntary contributions made under the Plan by the Member prior to 1989, if any, or (b) "member contributions" (as defined in the ECMC Plan) made under
the ECMC Plan prior to January 1, 1995, if any. 

        Section 1.32.    "Member Salary Deferral" means an elective salary
deferral made by a Member in accordance with Section 5.01. 

        Section 1.33.    "Member Salary Deferral Account" means the Account of a
Member established pursuant to Section 7.02 consisting of the balance attributable to his Member Salary Deferrals. 

        Section 1.34.    "Normal Retirement Data" means the first day of the
calendar month coincident with or next following a Member's sixty-fifth (65th) birthday. 

        Section 1.35.    "Permanent Disability" means a physical or mental
disability which a licensed physician acceptable to the Company has certified as permanent or likely to be permanent and as rendering the Member unable to perform his customary duties. In the
determination of Permanent Disability, the
Company shall act in a uniform and non-discriminatory manner with respect to all Employees similarly situated. 

        Section 1.36.    "Plan" means this Profit Sharing Plan, as herein set
forth, and as hereafter amended from time to time. 

13

 

        Section 1.37.    "Plan Year" means the calendar year. 

        Section 1.38.    "Required Beginning Data" means 

        (a)   for
a Member who is not a 5-percent owner (as defined in Code Section 416) in the Plan Year in which he attains age 70 /2 and who attains
age 701/2 after December 31, 1998, April 1 of the calendar year following the calendar year in which occurs the later of the Member's (i) attainment of age
701/2 or (ii) Retirement. 

        (b)   for
a Member who (i) is a 5-percent owner (as defined in Code Section 416) in the Plan Year in which he attains age 701/2, or
(ii) attains age 701/2 before January 1, 1999, April 1 of the calendar year following the calendar year in which the Member attains age 701/2. 

        Section 1.39.    "Retirement" means a Separation from Service
(a) on or after a Member's Normal Retirement Date; or (b) on account of his Permanent Disability. 

        Section 1.40.    "Rollover Account" means the Account attributable to
contributions and transfers referred to in Section 5.03. 

        Section 1.41.    "Rollover Contribution" means an amount contributed or
transferred to the Trust in accordance with Section 5.03. 

        Section 1.42.    "Separation from Service" means termination of
employment with an Employer or Affiliate for any reason; provided, however, that no Separation from Service shall be deemed to occur upon an Employee's transfer from the employ of one Employer or
Affiliate to another Employer or Affiliate. 

        Section 1.43.    "Testing Compensation" means "compensation" within the
meaning of Treasury Regulation § 1.415-2(d) (11) (ii), as modified in accordance with Treasury Regulation § 1.414(s)-1(d)(4), for
services rendered to an Employer. 

        Section 1.44.    "Top Paid Group" means the top 20 percent of Employees who performed services for the Employer
during the applicable year, ranked according to the amount of "415 Compensation" (determined for this purpose in accordance with Section 1.22) received from the Employer during such year. All
Affiliated Employers shall be taken into account as a single employer, and Leased Employees within the meaning of Code Sections 414(n)(2) and 414(o)(2) shall be considered Employees unless such Leased
Employees are covered by a plan described in Code Section 414(n)(5) and are not covered in any qualified plan 

14

 

maintained
by the Employer. Employees who are non-resident aliens and who received no earned income (within the meaning of Code Section 911(d)(2) from the Employer constituting
United States source income within the meaning of Code Section 861(a)(3) shall not be treated as Employees. Additionally, for the purpose of determining the number of active Employees in any
year, the following additional Employees shall also be excluded; however, such Employees shall still be considered for the purpose of identifying the particular Employees in the Top Paid Group: 

        (a)   Employees
with less than six (6) months of service; 

        (b)   Employees
who normally work less than 17/2 hours per week; 

        (c)   Employees
who normally work less than six (6) months during a year; and 

        (d)   Employees
who have not yet attained age 21. 

        In
addition, if 90 percent or more of the Employees of the Employer are covered under agreements the Secretary of Labor finds to be collective bargaining agreements between
Employee representatives and the Employer, and the Plan covers only Employees who are not covered under such agreements, then Employees covered by such agreements shall be excluded from both the total
number of active Employees as well as from the identification of particular Employees in the Top Paid Group. 

        Section 1.45.    "Trust" means the trust established pursuant to the
Trust Agreement to hold the assets of the Plan. 

        Section 1.46.    "Trust Agreement" means the trust agreement providing
for the Trust Fund. 

        Section 1.47.    "Trust Fund" means all the assets of the Plan which are
held by the Trustee under the Trust Agreement. 

        Section 1.48.    "Trustee" means the trustee or trustees from time to
time in office under the Trust Agreement. 

        Section 1.49.    "Unallocated Forfeitures Account" means the Account to
be maintained by the Committee pursuant to Section 9.06(b). 

        Section 1.50.    "Unit" means a unit representing the assignment of
beneficial ownership of limited partnership interests in the Company. 

15

 

        Section 1.51.    "Years of Service" means the aggregate period of service
with which an Employee is credited under the provisions of Article III. 

16

 
 
 

ARTICLE II
  
    MEMBERSHIP    
    

        Section 2.01.    Admission to the Plan.    

        (a)   Each
individual who was a Member of the Plan on December 31, 1988 and who did not cease to be a Member on that date shall continue to be a Member on
January 1, 1989. Each Employee whose Employment Commencement Date was before January 1, 1989 and who prior to January 1, 1989 completed at least one (1) Year of Service
shall become a Member on January 1, 1989, or on the first Entry Date subsequent to the date on which he attains his twenty-first (21st) birthday, whichever is later, provided he is an Employee
on such January 1, 1989 or other Entry Date, as applicable. Each Employee who would have been eligible to participate in the ECMC Plan as of January 1, 1995, if the ECMC Plan had not
been merged with and into this Plan effective that date, shall become a Member of this Plan on January 1, 1995. 

        (b)   (i) Except
as otherwise provided in Section 2.01(a) and 2.03, an Employee of an Employer shall become a Member of the Plan solely for purposes of
eligibility to make Member Salary Deferrals to a Member Salary Deferral Account established in accordance with the provisions of Article V, on the later of: 

        (A)  the
first Entry Date subsequent to the date on which he attains his twenty-first (21st) birthday, or 

        (B)  the
first Entry Date subsequent to the Employee's Employment Commencement Date. 

        (ii)   Except
as otherwise provided in Section 2.01(a) and 2.03, an Employee of an Employer shall become a Member of the Plan, solely for purposes of eligibility to
receive Company Contributions under Articles IV and VI, on the later of: 

        (A)  the
first Entry Date subsequent to the date on which he attains his twenty-first (21st) birthday, or 

        (B)  the
first Entry Date subsequent to the first Anniversary Year in which he completes one (1) Year of Service. 

17

 

        (c)   Each
Employee who is employed by an Affiliate that is not an Employer and who subsequently becomes an Employee of an Employer shall become a Member of the Plan: 

        (1)   immediately
upon becoming an Employee of such Employer, if he previously satisfied the age and service requirements of Subsection (b); or 

        (2)   in
accordance with Subsection (b), if he does not become a Member pursuant to Paragraph (1). 

 
 

           Section 2.02.    Termination of Membership and Inactive Membership.     

        (a)   A
Member shall cease to be a Member as of the date of his Separation from Service, if he incurs a Break in Service in the Anniversary Year of such Separation from
Service or in the following Anniversary Year. 

        (b)   A
Member shall become an Inactive Member as of the last day of his first Anniversary Year in which he completes five hundred (500) or fewer Hours of Service
without having incurred a Separation from Service. An Inactive Member shall continue to be such until either (1) the date on which he ceases to be a Member pursuant to Subsection (a) or
(2) the date on which he again becomes a Member pursuant to Section 2.03. 

 
 

           Section 2.03.    Readmission to the Plan.     

        A
former Member shall again become a Member coincident with or immediately after the date he becomes an employee, provided he is an Employee of an Employer on such rehire date. An
Inactive Member shall become a Member coincident with or immediately after the date he returns to active employment. 

 
 

           Section 2.04.    Designation of Beneficiary.     

        (a)   Each
Member may designate in writing on a form prescribed by and filed with the Committee, a Beneficiary to receive the aggregate balance of his Accounts and his Loan
Account, if any, in the event that his death should occur before the entire amount of such balance has been paid to him, except that if the Member has an Eligible Spouse, such designation shall not be
effective unless the Eligible Spouse has consented in writing to the designation of a Beneficiary other than such Eligible Spouse and such consent is witnessed by a member of the Committee or a Notary
Public. In addition, such designation may include the 

18

 

designation
of a secondary Beneficiary to receive such death benefit if the primary Beneficiary does not qualify or survive. 

        (b)   If
no Beneficiary has been designated, or if, for any reason no person qualifies as a Beneficiary at the time of the Member's death, or if no designated Beneficiary
survives the Member, the interest of the deceased Member shall be paid to the Eligible Spouse. If the Member has no Eligible Spouse, the Committee may, but shall not be required to, designate a
Beneficiary, but only from among the Member's spouse, descendants (including adoptive descendants), parents, brothers and sisters or nephews and nieces and may consider requests from any Beneficiary
which it designates as to the manner of payment of the benefit. If the Committee declines to make such designation, the benefit payable hereunder upon the Member's death shall be paid in a lump sum to
his estate. 

        (c)   For
purposes of this Section 2.04, Section 9.03 and Section 10.05, "Eligible Spouse" means, except to the extent as may otherwise be provided in any
"qualified domestic relations order" within the meaning of Code Section 414(p): 

        (1)   in
the case of a Member who dies before the commencement of any installment payments pursuant to Section 10.01(b), his lawfully married spouse on the date of his
death if such spouse was married to the Member during the entire one (1) year period ending on the Member's date of death; 

        (2)   in
the case of a Member who dies after the commencement of any installment payments pursuant to Section 10.01(b), his lawfully married spouse on the date such
payments commenced if (A) such spouse was married to the Member during the entire one (1) year period ending on the date such installment
payments commenced; or (B) such spouse married the Member within one (1) year before such installment payments commenced and the Member and such spouse have been lawfully married during
the entire one (1) year period ending on the Member's date of death. 

 
 

          Section 2.05.    Qualified Military Service Provisions.     

        Notwithstanding
any provision of this Plan to the contrary, effective as of December 12, 1994, contributions, benefits and service credit with respect to qualified military
service will be provided in accordance with Code Section 414(u). 

19

 
 
 

ARTICLE III
  
    CREDITING OF SERVICE    
    

 
 
           Section 3.01.    Year of Service.     

        Each
Employee shall be credited with one Year of Service for each Anniversary Year ending after December 31, 1975 during which he completes more than five hundred
(500) Hours of Service; provided, however, that: 

        (a)   if
an individual becomes a Member of the Plan after December 31, 1975, he shall not receive credit for a Year of Service for any Anniversary Year before the
Anniversary Year in which he first completes one thousand (1,000) Hours of Service; and 

        (b)   an
Employee shall be credited with a Year of Service for the last Anniversary Year during which he is an Employee only if he completes at least one thousand (1,000)
Hours of Service in such Anniversary Year. 

 
 

           Section 3.02.    Number of Years of Service.     

        An
Employee's aggregate number of Years of Service shall be computed by adding (a) his number of Years of Service completed since his last Break in Service, if any, and
(b) the number of Years of Service restored pursuant to Section 3.03. 

 
 

           Section 3.03.    Restoration of Service.     

        (a)   If
a former Member again becomes a Member after having incurred a Break in Service, the Years of Service which he had completed prior to such Break in Service shall be
disregarded for all purposes under this Plan until he shall have completed one (1) Year of Service after such Break in Service. 

        (b)   If
a former Member: 

        (1)   has
incurred a number of consecutive Breaks in Service which equals or exceeds the greater of (A) five (5) or (B) the number of his Years of Service
before such Breaks in Service; 

        (2)   had
no vested interest in his Company Contributions Account at the time of such Break in Service; and 

        (3)   again
becomes a Member, 

20

 

his
Years of Service prior to such Breaks in Service shall be disregarded for all purposes under this Plan. 

 
 

           Section 3.04.    Service with Non-employer Affiliates.     

        Any
Years of Service completed by an Employee while in the employ of an Affiliate that is not an Employer shall be credited under this Article III on the same basis as service
with an Employer. 

 
 

           Section 3.05.    Service with Equitable Capital Management Corporation.     

        For
purposes of determining an Employee's eligibility to participate in the Plan under Article II and vesting under Section 9.04, the Employee shall be credited under the
Plan with the number of "hours of service" and "years of service", as such terms are defined in the ECMC Plan, credited to that Employee for the corresponding purpose under the ECMC Plan immediately
prior to January 1, 1995, including service credited under the Equitable Investment Plan for Employees, Managers and Agents maintained by The Equitable Life Assurance Society of the United
States, but disregarding in determining such Employee's eligibility to participate and vesting under this Plan any periods of service which were disregarded under the ECMC Plan, such as service
disregarded due to "breaks in service", as defined in the ECMC Plan. Notwithstanding anything to the contrary in this Section 3.05 or elsewhere in the Plan, no period shall be taken into
account more than once in determining the Hours of Service and Years of Service of any Employee by reason of this Section 3.05. 

 
 

           Section 3.06.    Service with Shields and Regent.     

        For
purposes of determining an Employee's eligibility to participate in the Plan under Article II and vesting under Section 9.04, in the case of an Employee who was an
employee of either Shields Asset Management, Incorporated ("Shields") or Regent Investor Services Incorporated ("Regent") on March 4, 1994 and on that date became an Employee of an Employer or
an Affiliate, the Employee's service with Shields or Regent on or prior to such date shall be considered as service with an Employer or an Affiliate. 

        Section 3.07.    Cursitor Service.    

        For
purposes of determining an Employee's eligibility to participate in the Plan under Article II and vesting under Section 9.04, in the case of an Employee 

21

 

who
was an employee of Cursitor Holdings, L.P. or Cursitor Holdings Limited (individually and collectively, "Cursitor") on February 29, 1996, and on that date either was employed by or
continued in the employment of Cursitor Alliance LLC, Cursitor Holdings Limited, Draycott Partners, Ltd. or Cursitor-Eaton Asset Management Company, the Employee's service with Cursitor on or
prior to that date shall be considered as service with an Employer or an Affiliate. 

22

 
 
 

ARTICLE IV
  
    COMPANY CONTRIBUTIONS    
    

        Section 4.01.    Company Profit Sharing Contributions.    

        The
Board shall determine the Company Contribution, if any, which shall be contributed to the Trust Fund out of the Company's current and accumulated earnings and allocated to the
Members' Company Contributions Accounts pursuant to Article VI in respect of each Plan Year. No Company Contribution under this Section 4.01 or Section 4.02 may be made which
cannot be allocated under the provisions of Article XVI. For purposes of this Section 4.01 and Section 4.02, "current and accumulated earnings" means current and accumulated net
income for book purposes. Notwithstanding anything herein to the contrary, a Member for purposes of Article IV means only those Employees who have satisfied the applicable age and service
requirements of Sections 2.01(a), (b)(ii) or (c). 

        Section 4.02.    Company Matching Contributions.    

        Effective
for Plan Years beginning after December 31, 1989, the Company shall contribute to the Trust Fund out of the Company's current and accumulated earnings an amount
equivalent to that percentage, not to exceed 100% of each Member's Member Salary Deferral elected for the Plan Year involved, such percentage to be fixed by the Board; provided that the Company may
establish a limit on the amount of Member Salary Deferrals that are so matched specified either as a dollar amount or as a percentage of Compensation and provided further that any such limit may be
established based on the period in which any individual is a Member of the Plan. The contribution determined under this Section 4.02 for a particular Member shall be allocated to the Member's
Company Contributions Account on the basis of that Member's Member Salary Deferrals for that Plan Year, subject to any Company- established limits on Member Salary Deferrals to be matched for that
Plan Year. 

        Section 4.03.    Time of Contributions.    

        Contributions
may be made in one or more installments at such time or times during the Plan Year, or during any additional period provided by law for the making of contributions in
respect of such Plan Year, as the Company shall determine. Except as otherwise provided in the Plan, for purposes of valuing the Trust Fund and making allocations to Accounts, all contributions in
respect of any 

23

 

Plan
Year shall be deemed to have been made on the last Accounting Date of the Plan Year, regardless of the actual date of contribution. 

        Section 4.04.    Irrevocability of Contributions.    

        (a)   Except
as provided in Subsection (b), any and all contributions made by the Company shall be irrevocable and shall be transferred to the Trustee to be used in
accordance with the provisions of this Plan for providing the benefits and paying the expenses thereof. Neither such contributions nor any income therefrom shall be used for, or diverted to, purposes
other than for the exclusive benefit of Members or their Beneficiaries and payment of expenses of this Plan and the Trust. 

        (b)   (1)
If any contribution is made to this Plan by a mistake of fact, such contribution shall be returned to the Company within one (1) year following the date that
such contribution is made. 

        (2)   Each
Company Contribution made to this Plan is conditioned upon its deductibility under Code Section 404. Each contribution, to the extent disallowed as a
deduction, may be returned to the Company within one (1) year following the date of disallowance. 

24

  

 
 
ARTICLE V

MEMBER SALARY DEFERRAL ELECTIONS, SALARY DEFERRAL

CONTRIBUTIONS AND ROLLOVER CONTRIBUTIONS  

        Section 5.01.    Member Salary Deferral Elections.    

        For
each Plan Year beginning after December 31, 1989, any Member may elect to defer the receipt of up to five percent (5%) (or such other amount as the Committee may direct) of
his Compensation while a Member for the Plan Year, in such increments that the Committee may decide, and direct the Employer to contribute the amount so deferred into the Trust to be invested in the
Investment Fund or Funds designated by the Member. A Member's election shall be made in writing on a form prescribed by the Committee filed with the Member's Employer, prior to the date that the
Compensation would, but for the election, be made available to the Member, and the election shall remain in effect until it is modified or terminated, all in accordance with rules established by the
Committee. In no event may a Member's salary deferral exceed the $7,000 dollar limitation (or any higher amount that may be allowed by Treasury Regulations), as provided in Code Section 402(g).
Any Member's salary deferral for any pay period may be further adjusted, at the Committee's direction and discretion, to comply with the discrimination standards applicable to Code
Section 401(k) arrangements in particular, to all plans qualified under Code Section 401(a) in general, and/or with the limitations contained in Article XVI. 

        Section 5.02.    Allocation of Member Salary Deferral Elections.    

        A
Salary Deferral Election made in accordance with Section 5.01 shall be allocated among the Investment Funds in accordance with the provisions of Section 7.03. 

        Section 5.03.    Rollover Contributions.    

        (a)   An
Employee may, with the consent of the Committee, contribute to the Plan, or authorize the plan sponsor, administrator or trustee of a qualified employee benefit plan
in which he previously participated to transfer to the Trust, any distribution or other payment or amount which is permitted to be contributed or transferred to the Trust in accordance with Code
Section 402, 403(a) or 408(d)(3)(A)(ii) or any other applicable provision of the Code or the regulations or rulings thereunder permitting the contribution or transfer. Any such Rollover
Contribution shall be received by the Trustee subject to the condition precedent that its transfer complies in all respects with the requirements of the applicable 

25

 

Code
provisions, regulations or rules pertaining thereto and, upon any discovery that any such contribution or transfer does not so comply, the amount of the Rollover Contribution, together with all
changes in the value of the Trust Fund allocated thereto, shall revert to the individual by or on whose behalf it was made as of the next following Accounting Date. The decision of the Committee for
the Trust to accept a Rollover Contribution shall not give rise to any liability by the Committee, the Company, the Plan or the Trustee to the Employee or any other party on account of a subsequent
determination that such Rollover Contribution does not qualify to be held in the Trust. A Rollover Contribution may, subject to the consent of the Committee, be made at any time during the Plan Year,
shall not be subject to the limitations of Article XVI, and shall as of the Accounting Date next following receipt of the Rollover Contribution by the Trustee be allocated in full to the
Member's Rollover Account except as regards the amount thereof equal to the Member's voluntary contributions, if any, to a qualified plan, which amount shall be allocated to the Member's Member
Contributions Account. Until so allocated the amount of a Rollover Contribution shall be held unallocated in the Trust Fund. 

        (b)   Each
Employee or former Employee who becomes a participant in a pension, profit sharing or stock bonus plan described in Code Section 401(a) (a "transferee plan")
may, not later than thirty (30) days (or such lesser period as is acceptable to the Committee) prior to any Accounting Date, request the Committee to direct the Trustees to, and upon such
request, the Committee in its sole discretion may direct the Trustees to, transfer in cash the nonforfeitable balance in such Employee's Accounts to an account maintained by any such transferee plan
on the Employee's behalf, as of such Accounting Date; provided, however, that such transferee plan permits such transfer. 

        (c)   Any
Employee who makes or causes to be made a contribution or transfer pursuant to Subsection (a) and who has not become a Member pursuant to the provisions of
Article II shall, except for purposes of Sections 4.01, 5.01 and 6.01, be considered a Member of this Plan. 

        Section 5.04.    Return of Excess Member Salary Deferral Elections.    

        (a)   Notwithstanding
any other provisions of the Plan, a Member may request the Committee in writing by no later than the March 1 following the end of the preceding
calendar year, to have distributed to the Member from the Trust the amount of the Member's Member Salary Deferrals which are in excess of the amount permitted under Code Section 402(g) for such
calender year ("Excess Deferrals"). 

26

 

        (b)   Excess
Deferrals claimed under subsection (a) and any income allocable to such amount shall be distributed from the Plan no later than April 15 of the
calendar year in which the request was made. This Section 5.04 shall also apply to amounts deferred under the terms of Section 6.02(c) for Plan Years beginning after December 31,
1986. 

        Section 5.05.    Actual Deferral Percentage Test.    

        (a)   As
used in this Section 5.05, each of the following terms shall have the meaning for that term set forth in this Section 5.05: 

          (i)  Actual Deferral Percentage means the ratio (expressed as a percentage) of Member Salary Deferrals (other than Excess
Deferrals of non-Highly Compensated Employees made under plans maintained by the Company or an Affiliate) on behalf of the Member for the Plan Year to the Member's Testing Compensation for
the Plan Year. 

         (ii)  Average Actual Deferral Percentage means the average (expressed as a percentage) of the Actual Deferral Percentages of
the Members in a group, including those Members whose Actual Deferral Percentage is zero. 

        (b)   For
each Plan Year, the amount of Member Deferrals shall be subject to the following: 

          (i)  For
Plan Years beginning on or after January 1, 2001, the Average Actual Deferral Percentage for Members who are Highly Compensated Employees for the Plan Year
must satisfy one of the following tests: 

        (A)  The
Average Actual Deferral Percentage for Members who are Highly Compensated Employees for the Plan Year shall not exceed the Average Actual Deferral Percentage for
Members who are non-Highly Compensated Employees for the Plan Year multiplied by 1.25; or 

        (B)  The
Average Actual Deferral Percentage for Members who are Highly Compensated Employees for the Plan Year shall not exceed the Average Actual Deferral Percentage for
Members who are non-Highly Compensated Employees for the Plan Year multiplied by 2.0, provided that the Average Actual Deferral Percentage for Members 

27

 

who
are Highly Compensated Employees does not exceed the Average Actual Deferral Percentage for Members who are non-Highly Compensated Employees by more than two (2) percentage
points. 

         (ii)  For
Plan Years prior to 1997, the Excess Contributions (as defined in Section 5.06) under the Plan shall be eliminated by reducing the Member Salary Deferral of
each Highly Compensated Employee in order of Actual Deferral Percentage beginning with the highest percentage. For Plan Years after 1996, the Excess Contributions (as defined in Section 5.06)
under the Plan shall be eliminated by reducing the Member Salary Deferral of each Highly Compensated Employee in order of the dollar amount of Member Salary Deferrals on behalf of such Highly
Compensated Employee, beginning with the highest dollar amount. 

        (c)   For
purposes of determining the Actual Deferral Percentage of a Member for a Plan Year, a Member Salary Deferral shall be taken into account only if such Member Salary
Deferral: (i) is attributed to the Member's Account as of a date within the Plan Year; (ii) is not contingent upon any subsequent event (except as may be necessary to comply with the
Code); (iii) is actually paid to the Trust within one year of the end of the Plan Year; and (iv) relates to Compensation which would have been received by the Member in the Plan Year but
for the Member's election to defer. Any Member Salary Deferral that fails to satisfy the foregoing requirements shall be treated as a contribution by the Employer which is not subject to Code
Section 401(k) or 401(m). 

        (d)   (i)
For purposes of this Section 5.05, the Actual Deferral Percentage for any Member who is a Highly Compensated Employee for the Plan Year and who is eligible to
have elective deferrals allocated to his or her account under two or more plans or arrangements described in Code Section 401(k) that are maintained by the Company or an Affiliate shall be
determined as if all such elective deferrals were made under a single arrangement. 

         (ii)  If
two or more plans are aggregated for purposes of Code Section 410(b) or 401(a)(4), such plans shall be aggregated for purposes of the Average Actual Deferral
Percentage test. 

        Section 5.06.    Return of Excess Contributions.    

        (a)   Notwithstanding
any other provision of the Plan, any amount determined by the Committee to be an "Excess Contribution" as determined under Section 5.05(b)(ii),
shall be distributed to Members who are Highly Compensated 

28

 

Employees
by no later than the last day of the Plan Year following the Plan Year in which the Excess Contribution occurred. 

        (b)   "Excess
Contribution" for purposes of this Section 5.06 means a Member Salary Deferral attributable to a Highly Compensated Employee which exceeds the maximum
amount of such deferral permitted under Code Section 401(k)(3)(A)(ii), and which is described in Code Section 401(k)(8)(B), plus the income allocable to such amount. The allocable income
shall be calculated by multiplying the total income earned on all of the Member's Member Salary Deferrals for the Plan Year in which the Excess Contribution is being returned by a fraction, the
numerator being the Member Salary Deferral in excess of the permitted amount and the denominator being the Member's account balance in his Member Salary Deferral Account on the Accounting Date of the
prior Plan Year. The Excess Contribution otherwise distributable under this Section 5.06 shall be adjusted for investment losses and for prior distributions to the Members affected, as
permitted by Treasury Regulations. The Excess Contributions attributable to all Highly Compensated Employees, in the aggregate, shall be determined as the sum of the Excess Contributions (if any)
determined for each Highly Compensated Employee, as follows: The amount (if any) by which the Member Salary Deferral of each Highly Compensated Employee must be reduced for the Member's Actual
Deferral Percentage to equal the highest permitted Actual Deferral Percentage under the Plan shall be determined. To calculate the highest permitted Actual Deferral Percentage under the Plan, the
Actual Deferral Percentage of the Highly Compensated Employee with the highest Actual Deferral Percentage is reduced by the amount required to cause the Employee's Actual Deferral Percentage to equal
the Actual Deferral Percentage of the Highly Compensated Employee with the next highest Actual Deferral Percentage. If a lesser reduction would enable the Plan to satisfy the Actual Deferral
Percentage test, only this lesser reduction may be made. This process must be repeated until the Plan would satisfy the Actual Deferral Percentage test. The sum of the foregoing reductions determined
for each Highly Compensated Employee shall equal the dollar amount of the Excess Contributions attributable to all Highly Compensated Employees, in the aggregate. 

29

 
 
 

ARTICLE VI
  
    ALLOCATIONS OF COMPANY CONTRIBUTIONS AND FORFEITURES    
    

        Section 6.01.    Contributions.    

        (a)    Members Eligible to Share in Company Contributions.    

        The
Company Contribution for each Plan Year shall be allocated and credited to the Members' Company Contributions Account in accordance with this Article as of the last Accounting Date
of the Plan Year (immediately following the allocation of income and appreciation in accordance with Section 8.01) among those Members who are Employees of an Employer or an Affiliate on the
Accounting Date. Notwithstanding anything herein to the contrary, a Member for purposes of Article VI means only those Employees who have satisfied the applicable age and service requirements
of Sections 2.01(a), (b)(ii) or (c). 

        (b)    Allocation of Company Contribution.    

        The
Company Contribution under Section 4.01 for each Plan Year, determined without regard to Section 6.02(c), shall be allocated among the Members eligible for allocation
in the proportion which each such Member's Compensation for such Plan Year while a Member bears to the total Compensation for all Members eligible to share in allocations pursuant to Subsection (a).
The Company Contribution under Section 4.02 shall be allocated on the same basis upon which it was determined. 

        Section 6.02.    Allocation to Company Contributions Accounts.    

        (a)   The
amount of the Company Contributions in respect of Plan Years ending after 1980 which are allocable to each Member shall be allocated to the Member's Company
Contributions Account as of the last Accounting Date of the Plan Year for which it is made, as provided in this Section 6.02. 

        (b)   With
respect to Plan Years beginning before January 1, 1990, eighty percent (80%) of the Company Contribution which is allocated to a Member in respect of any
Plan Year after 1980 shall be placed in his Company Contributions Account. 

30

 

        (c)   With
respect to Plan Years beginning before January 1, 1990, on a date to be specified by the Committee, which shall be no later than thirty (30) days
after the date the annual Company Contribution is declared but at least ten (10) days prior to the time the annual Company Contribution is made, each Member may elect to defer any portion of
the remaining Company Contribution allocated to such Member for any Plan Year after 1980 in accordance with Section 6.01 which was not placed in his Company Contributions Account pursuant to
Subsection (b). The amount that any Member so elects to defer shall be credited to such Member's Company Contributions Account. The remainder of such amount shall be paid to him in cash as soon after
the date of such election as is practicable. If any eligible Member fails to make such election, the entire amount allocated to such Member for such Plan Year shall be credited to his Company
Contributions Account. 

        (d)   Effective
for Plan Years beginning after December 31, 1989, the entire amount allocated under Section 6.01(b) to a Member for a Plan Year shall be credited
to his Company Contributions Account. 

        Section 6.03.    Actual Contribution Percentage Test.    

        (a)   As
used in this Section 6.03, each of the following terms shall have the meaning for that term set forth below: 

          (i)  Average Contribution Percentage means the average (expressed as a percentage) of the Contribution Percentages of the
Members in a group, including those Members whose Contribution Percentage is zero. 

         (ii)  Company Matching Contribution means the Company Contribution described in Section 4.02 of the Plan. 

        (iii)  Contribution Percentage means the ratio (expressed as a percentage) of a Member's Company Matching Contributions
(excluding Company Matching Contributions forfeited hereunder to correct Excess Aggregate Contributions or because the contributions to which they relate are Excess Deferrals, Excess Contributions or
Excess Aggregate Contributions) to the Member's Testing Compensation for the Plan Year. 

        (b)   Company
Matching Contributions for each Plan Year must satisfy one of the following tests: 

31

 

          (i)  For
Plan Years beginning on or after January 1, 2001, the Average Contribution Percentage for Members who are Highly Compensated Employees for the Plan Year
shall not exceed the Average Contribution Percentage for Members who are non-Highly Compensated Employees for the Plan Year multiplied by 1.25; or 

         (ii)  For
Plan Years beginning on or after January 1, 2001, the Average Contribution Percentage for Members who are Highly Compensated Employees for the Plan Year
shall not exceed the Average Contribution Percentage for Members who are non-Highly Compensated Employees for the Plan Year multiplied by 2.0, provided that the Average Contribution
Percentage for Members who are Highly Compensated Employees does not exceed the Average Contribution Percentage for Members who are non-Highly Compensated Employees by more than
2 percentage points. 

        (c)   For
purposes of determining the Contribution Percentage of a Member for a Plan Year, the Member's Company Matching Contributions shall be taken into account only if such
Company Matching Contributions (i) are based on the Member's Member Salary Deferrals for such Plan Year; (ii) are attributed to the Member's Account as of a date within such Plan Year;
and (iii) are paid to the Trust by the end of the twelfth month following the close of such Plan Year. Any Company Matching Contribution that fails to satisfy the foregoing requirements shall
be treated as a contribution which is not subject to Code Section 401(m). 

        (d)   (i) For
purposes of this Section 6.03, the Contribution Percentage for any Member who is a Highly Compensated Employee for the Plan Year and who is
eligible to receive Company Matching Contributions or to make Employee after-tax contributions under one or more other plans described in Code Section 401(a) that are maintained by
the Company or an Affiliate shall be determined as if all such contributions were made under a single plan. 

         (ii)  If
two or more plans are aggregated for purposes of Code Section 410(b) or 401(a)(4), such plans shall be aggregated for purposes of the Average Contribution
Percentage test. 

32

 

        Section 6.04.    Return of Excess Aggregate Contributions.    

        (a)   Notwithstanding
any other provision of the Plan, any amount determined by the Committee to be an "Excess Aggregate Contribution" as defined in Subsection (b), shall be
distributed to Members who are Highly Compensated Employees by no later than the last day of the Plan Year following the Plan Year in which the Excess Aggregate Contribution occurred. For Plan Years
prior to 1997, the Excess Aggregate Contributions (as defined in Section 6.04(b)) under the Plan shall be eliminated by reducing the Company Matching Contributions of each Highly Compensated
Employee in order of Contribution Percentage beginning with the highest percentage. For Plan Years after 1996, the Excess Aggregate Contributions (as defined in Section 6.04(b)) under the Plan
shall be eliminated by reducing the Company Matching Contributions of each Highly Compensated Employee in order of the dollar amount of Company Matching Contributions on behalf of such Highly
Compensated Employee, beginning with the highest dollar amount. 

        (b)   "Excess
Aggregate Contribution" for purposes of this Section 6.04 means a Company Matching Contribution attributable to a Highly Compensated Employee which
exceeds the maximum amount of such Company Matching Contributions permitted under Code Section 401(m)(3), and which is described in Code Section 401(m)(6)(B), plus the income allocable
to such amount. The allocable income shall be calculated by multiplying the total income earned on all of the Member's Company Matching Contributions for the Plan Year in which the Excess Aggregate
Contribution is being returned by a fraction, the numerator being the Member Company Matching Contributions in excess of the permitted amount and the denominator being the Member's account balance in
his Company Contribution Account attributable to Company Matching Contributions on the Accounting Date of the prior Plan Year. The Excess Contribution otherwise distributable under this
Section 6.04 shall be adjusted for investment losses and for prior distributions to the Members affected, as permitted by Treasury Regulations. The Excess Aggregate Contributions attributable
to all Highly Compensated Employees, in the aggregate, shall be determined as the sum of the Excess Aggregate Contributions (if any) determined for each Highly Compensated Employee, as follows: The
amount (if any) by which the Company Matching Contribution of each Highly Compensated Employee must be reduced for the Member's Contribution Percentage to equal the highest permitted Contribution
Percentage under the Plan shall be determined. To calculate the highest permitted Contribution Percentage under the Plan, the Contribution Percentage of the Highly Compensated Employee with the
highest Contribution Percentage is reduced by the amount required to cause the Employee's Contribution Percentage to equal the Contribution Percentage of the Highly Compensated Employee with the next 

33

 

highest
Contribution Percentage. If a lesser reduction would enable the Plan to satisfy the Actual Contribution Percentage Test, only this lesser reduction may be made. This process must be repeated
until the Plan would satisfy the Actual Contribution Percentage Test. The sum of the foregoing reductions determined for each Highly Compensated Employee shall equal the dollar amount of the Excess
Aggregate Contributions attributable to all Highly Compensated Employees, in the aggregate. 

        Section 6.05.    Multiple Use of Alternative Limitation.    

        For
purposes of this Section 6.05, terms not otherwise defined in Section 6.03 or Article I shall have the meaning set forth in Section 5.05. 

        (a)   For
Plan Years beginning on or after January 1, 2001, if both: (i) the Average Actual Deferral Percentage of the Highly Compensated Employees exceeds 125%
of the Average Actual Deferral Percentage for the Plan Year for Members who were non-Highly Compensated Employees for the Plan Year, and (ii) the Average Contribution Percentage of
the Highly Compensated Employees exceeds 125% of the Average Contribution Percentage for the Plan Year for Members who were non-Highly Compensated Employees for the Plan Year, then the sum
of the Average Actual Deferral Percentage of the Highly Compensated Employees plus the Average Contribution Percentage of the Highly Compensated Employees shall not exceed the aggregate limit
determined as the greater of: 

        (A)  the
sum of: (1) 125% of the greater of the Average Actual Deferral Percentage for the Plan Year for Members who were non-Highly Compensated Employees
for the Plan Year or the Average Contribution Percentage for the Plan Year for Members who were non-Highly Compensated Employees for the Plan Year; plus (2) the lesser of 200% of,
or 2 percentage points plus, the lesser of the Average Actual Deferral Percentage for the Plan Year for Members who were non-Highly Compensated Employees for the Plan Year or the
Average Contribution Percentage for the Plan Year for Members who were non-Highly Compensated Employees for the Plan Year; or 

        (B)  the
sum of: (1) 125% of the lesser of the Average Actual Deferral Percentage for the Plan Year for Members who were non-Highly Compensated Employees
for the Plan Year or the Average Contribution Percentage for the Plan Year for Members who were non-Highly Compensated Employees for the Plan Year; plus (2) the lesser of 200% of,
or 2 percentage points plus, the 

34

 

greater
of the Average Actual Deferral Percentage for the Plan Year for Members who were non-Highly Compensated Employees for the Plan Year or the Average Contribution Percentage for the
Plan Year for Members who were non-Highly Compensated Employees for the Plan Year. 

        If
the aggregate limit described in the preceding sentence is exceeded, then either the Average Actual Deferral Percentage or the Average Contribution Percentage of the Highly
Compensated Employees shall be reduced, and shall result in Excess Contributions or Excess Aggregate Contributions, respectively, in the manner provided in Section 5.06 or 6.04 respectively,
until the aggregate limit is no longer exceeded. For purposes of this Section 6.05, the Average Actual Deferral Percentage and the Average Contribution Percentage of the Highly Compensated
Employees shall be determined after any corrections required to satisfy the Average Actual Deferral Percentage and Average Contribution Percentage tests. 

        (b)   In
the event an amount is returned to a Participant as Excess Deferrals or Excess Contributions, any Company Matching Contributions plus any earnings or minus any losses
attributable to the Company Matching Contributions made with respect to such returned amount shall be forfeited. 

        (c)   The
multiple use test described in Treasury Regulation 1.401(m)-2 and described above shall not apply for Plan Years beginning after
December 31, 2001. 

35

  

 
 

ARTICLE VII    
    
    ACCOUNTS, ALLOCATIONS AND LOANS    
    

 
 
           Section 7.01.    Investment Funds     

        Subject
to the provisions of any applicable state and Federal securities laws and to the regulations and rulings of any regulatory agencies administering such laws, the Trustee shall, at
the direction of the Committee, establish separate Investment Funds within and as a part of the Trust Fund for the purpose of investing the balances held in the Accounts and in the Unallocated
Forfeitures Account. The Committee is specifically authorized to direct the Trustee to establish an Investment Fund entitled the Alliance Limited Partnership Unit Fund in which Members may invest
their Company Contributions Account and, if the Committee so provides (after considering the requirements of applicable securities laws), Member Salary Deferral Accounts and Member Contributions
Accounts. The Alliance Limited Partnership Unit Fund shall be invested primarily in Units. 

 
 

          Section 7.02.    Separate Accounts.     

        The
Committee shall maintain a separate Company Contributions Account, Member Contributions Account, Member Salary Deferral Account, Rollover Account and Loan Account for each Member as
relevant. Any amount transferred from a Member's "Company Matching Contribution Account" under the ECMC Plan (as defined thereunder) shall be held in the Member's Rollover Account. The Committee shall
maintain records of each Member's balance in each such Account and each Investment Fund in which the Account is invested in order to provide an accurate and current statement to the Member pursuant to
Section 8.07. Effective January 1, 1995, each account of a participant or beneficiary under the ECMC Plan shall automatically be deemed an Account of the corresponding type under the
Plan for the Member or Beneficiary for whom such account was maintained under the ECMC Plan. 

 
 

           Section 7.03.    Investing of the Company Contributions.     

        All
contributions allocated to a Member's Account as well as the portion of a Rollover Contribution allocated to a Member's Member Contribution Account shall be allocated among the
Investment Funds in accordance with the then current investment election. If no proper election is on file governing the contributions involved, such contributions shall be invested in the Investment
Fund specified for the purpose by the Committee. 

36

 

 
 

           Section 7.04.    Elections.     

        (a)   The
Committee shall prescribe such rules as it deems appropriate regarding the form, filing frequency and timeliness of elections under Section 7.03 as well as
concerning the percentage or amounts of a contribution which may be invested in an Investment Fund. In these rules, the Committee may specify that each Account of a Member be invested in the
Investment Funds selected by the Member in the same proportion. An election properly on file shall remain in force until changed. 

 
 

           Section 7.05.    Inter-Account Transfers.     

        (a)   A
Member may elect, on a form provided by and timely filed with the Committee, to transfer all or a portion of the balance of any Account which is invested in an
Investment Fund to one or mare other Investment Funds. The Committee shall prescribe such rules as it deems appropriate regarding the frequency and timeliness of elections and the percentage of or
amount from an Account which may be so transferred. 

        (b)   A
transfer made pursuant to an election pursuant to Subsection (a) shall be subject to the following limitations: 

        (1)   Each
Member's transfer will be effected as of the Accounting Date immediate1y following timely receipt by the Committee of the election. 

        (2)   If
there is insufficient cash available as of an Accounting Date to effectuate fully all Members' elections to transfer, such elections shall be proportionately reduced
and effectuated accordingly. 

 
 

           Section 7.06.    Unallocated Forfeiture Account.     

        The
amount held from time to time in the Unallocated Forfeiture Account shall be allocated among the Investment Funds as specified by the Committee. 

 
 

           Section 7.07.    Loans.     

        Notwithstanding
anything in this Plan to the contrary, with the consent of the Committee and subject to the following terms and conditions and such other terms and conditions as the
Committee may establish, any "party in interest" with respect to the Plan within the meaning of Section 3(14) of the Act who is a 

37

 

Member
or Beneficiary (a "Borrower") may borrow from the Trust Fund to satisfy "an immediate and heavy financial need", as defined below, of the Borrower: 

        (a)   Loans
shall be made available to all Borrowers on a reasonably equivalent basis in accordance with applicable regulations and shall not be made available to highly
compensated employees, officers or limited partners in an amount greater than the amount made available to other Borrowers. 

        (b)   Each
loan shall be evidenced by a negotiable promissory note in a form satisfactory to the Committee. 

        (c)   The
aggregate amount of a loan to a Borrower shall not exceed the lesser of (1) $50,000; and (2) 50% of the Borrower's vested interest in his Account(s) on
the Accounting Date immediately preceding the date the loan is made. The minimum initial principal amount of each loan, however, shall be not less than $1,000 or such greater amount as the Committee
may specify from time to time for loans made thereafter. 

        (d)   Each
loan shall bear a reasonable rate of interest as determined by the Committee in its discretion in accordance with applicable regulations. 

        (e)   Each
loan shall provide for substantially level amortization over a period not to exceed five years (with payments of principal and interest to be made not less
frequently than quarterly), provided that if the proceeds of the loan are used to acquire any dwelling unit which within a reasonable time is to be used (determined at the time the loan is made) as
the principal residence of the Borrower, the repayment term may be such longer period as the Committee shall determine. No loan shall be made to any Borrower who is a Member, however, that provides
for a repayment period extending beyond the Borrower's Normal Retirement Date. The Committee may require that payments of principal and interest be made through payroll deductions. 

        (f)    Each
loan shall be made from the Loan Account of the Borrower making the loan and interest paid thereon shall be credited to that Loan Account. In his application for a
loan, the Borrower shall specify the Account from which monies are to be transferred to his Loan Account in the amount of the loan, which Account must be fully vested. Effective January 1,
1995, a "loan account" (as defined in the ECMC Plan) of a participant under the ECMC Plan shall automatically be deemed a Loan Account of the Member for whom such account was maintained under the ECMC
Plan. Principal and interest paid by a Member on a loan shall be held in the Member's Loan Account uninvested and allocated to the Member's Company Contributions Account as of the Accounting Date
coincident with or next following receipt of the principal and interest; provided 

38

 

that
to the extent the principal repaid derived from some other Account of the Member the principal repaid shall be allocated to that Account. 

        (g)   A
loan to a Borrower shall be secured by the Borrower's vested Account(s) and/or such other property as the Committee may deem acceptable and adequate security for the
loan. 

        (h)   A
loan shall be made from the Trust Fund only as of an Accounting Date after all valuations and allocations as of that date have been completed. The Committee may
provide that loans can be made only as of the Accounting Date it specifies. 

        (i)    A
Borrower may not have more than one loan outstanding at any time and the outstanding principal amount of a loan may not be increased unless the Committee otherwise
permits. 

        (j)    A
loan shall be non-renewable and a Borrower may not borrow any amount for a period of at least one year from the date of full repayment of a prior loan to
the Borrower. 

        (k)   For
purposes of this Section, other than the references to a Borrower's Account(s), all plans described in Code Section 401(a) maintained by the Company and any
Affiliate and the trust funds thereunder shall be treated as part of the Plan and Trust Fund, respectively. 

        (l)    For
purposes of this Section, "an immediate and heavy financial need" of a Borrower exists when the proceeds of the loan will be used to pay for any of the following: 

        (1)   Medical
expenses of the Borrower, the Borrower's spouse, or any child or dependent of the Borrower which are deductible by the Borrower for United States federal income
tax purposes or which would be deductible without regard to the amount of the Borrower's adjusted gross income; 

        (2)   The
payment (excluding mortgage payments) of all or part of the purchase price of the principal residence of the Borrower and related closing and other acquisition
expenses; 

        (3)   Tuition
for post-secondary education for the Borrower, the Borrower's spouse, or any child or dependent of the Borrower; 

39

 

        (4)   To
prevent eviction of the Borrower from, or a foreclosure of a mortgage on, the Borrower's principal residence; or 

        (5)   Rent
or mortgage obligations which cannot be met, or the cost of replacement of personal necessities lost or destroyed as the result of circumstances or events beyond
the control of the Borrower. 

        A
loan by a Borrower shall be treated as necessary to satisfy "an immediate and heavy financial need" of the Borrower if the Borrower represents in writing to the Committee, in form
satisfactory to it, that the amount of the loan will not exceed the amount required to meet that need and that the need to that extent cannot be relieved: 

        (A)  through
reimbursement or compensation by insurance or otherwise; 

        (B)  by
application, or liquidation on a reasonable basis, of the Borrower's assets to the extent such application or liquidation would not itself cause "an immediate and
heavy financial need"; 

        (C)  by
cessation of voluntary contributions by or at the election of the Borrower under any retirement plan; or 

        (D)  by
withdrawal of Borrower contributions from any retirement plan. 

        (m)  The
Committee shall on a timely basis before loans are made available under this Section, prepare a written document setting forth the following information and such
other information as the Committee deems relevant regarding loans from the Plan: 

        (1)   The
identity of the person or positions authorized to administer the loan program; 

        (2)   A
procedure for applying for loans; 

        (3)   The
basis on which loans will be approved or denied; 

        (4)   The
procedure for determining a reasonable rate of interest; 

40

 

        (5)   The
types of collateral which may secure a loan; and 

        (6)   The
events constituting default and the steps that will be taken to preserve Plan assets in the event of such default. 

        The
provisions of that document are incorporated herein by this reference; provided, however, that if any provision of that document conflicts with any other provision of the Plan, the
Plan provision shall control. 

 
 

           Section 7.08.    Voting Rights.     

        If
the Committee directs the Trustee to establish an Investment Fund in which Members may invest in Units in accordance with Section 7.01, each Member (or, in the event of his
death, his Beneficiary) shall have the right to direct the Trustee to instruct the Assignor Limited Partner as to the manner in which the limited partnership interests underlying the Units allocated
to his Accounts are to be voted on each matter brought before a special meeting of limited partners and unitholders of the Company. In the exercise of this authority and discretion, each such Member
(or Beneficiary) shall be a "named fiduciary" within the meaning of Section 403(a)(1) of the Act. Before each such meeting of limited partners and unitholders, the Committee shall cause to be
furnished to each Member (or Beneficiary) a copy of the proxy solicitation material, together with a form requesting confidential directions on how the Assignor Limited Partner shall be directed to
vote the limited partnership interests underlying the Units. Upon timely receipt of such directions, the Trustee shall on each such matter direct the Assignor Limited Partner to vote the limited
partnership interests underlying the Units allocated to such Member's Accounts, and the Trustee shall have no discretion in such matter. The instructions received by the Trustee from Members shall be
held by the Trustee in confidence and shall not be divulged or released to any person, including officers or employees of the general partner of the Company or any Affiliate. The Trustee shall direct
the Assignor Limited Partner as to voting the limited partnership interests underlying the Units for which it has not received direction in the same proportion as those for which it has received
direction, and the Trustee shall have no discretion in such matter. 

 
 

           Section 7.09.    Rights on Tender or Exchange Offer.     

        If
the Committee directs the Trustee to establish an Investment Fund in which Members may invest in Units in accordance with Section 7.01, each Member (or, in the event of his
death, his Beneficiary) shall have the right, to the extent of the number of Units allocated to his Accounts, to direct the Trustee in writing as to the manner in which to respond to a tender or
exchange offer with respect to Units. In the exercise of this authority and discretion, each such 

41

 

Participant
shall be a "named fiduciary" within the meaning of Section 403(a) (1) of the Act. The Committee shall use its best efforts to timely distribute or cause to be distributed to
each Member (or Beneficiary) such information as is distributed to unitholders of the Company in connection with any such tender or exchange offer. Upon timely receipt of such instructions, the
Trustee shall respond as instructed with respect to Units. The instructions received by the Trustee from Members shall be held by the Trustee in confidence and shall not be divulged or released to any
person, including officers or employees of the general partner of the Company or any Affiliate. If the Trustee does not receive timely instructions from a Member (or Beneficiary) as to the manner in
which to respond to such a tender or exchange offer, the Committee shall direct the Trustee not to tender or exchange any Units with respect to which such Member (or Beneficiary) has the right of
direction, and the Trustee shall have no discretion in such matter. 

 
 

          Section 7.10.    Confidentiality; Appointment of Independent Fiduciary.     

        The
Committee shall ensure that information relating to Members' and Beneficiaries' purchase, holding and sale of Units and the exercise of voting and tender rights with respect to Units
is maintained under procedures which are designed to safeguard the confidentiality of such information, except to the extent necessary to comply with applicable laws. Notwithstanding anything
contained in Section 7.08 or 7.09 to the contrary, if any situation arises which the Committee determines involves a potential for undue influence by an Employer upon Members and Beneficiaries
in the exercise of voting and tender rights, the Company shall appoint an Independent Fiduciary who shall perform all of the functions of the Trustee described in, and who shall be subject to all of
the requirements and procedures set forth in, Sections 7.08 and 7.09. The instructions received by the Independent Fiduciary shall be held in confidence and shall not be divulged or released to the
Trustee or to any other person, including officers or employees of the general partner of the Company, the Company or any Affiliate. 

42

 
 
 

ARTICLE VIII
  
    VALUATION    
    

 
 
           Section 8.01.    Valuation of Trust Fund.     

        All
changes in the value of each Investment Fund as determined by the Trustee in accordance with the Trust Agreement (including income and expenses and realized and unrealized
appreciation and depreciation of assets of the Investment Fund, determined in the case of mutual funds by reference to the net asset value of such mutual funds on the Accounting Date, but excluding
Company Contributions, Member Salary Deferrals and contributions or transfers pursuant to Section 5.03 made or allocated subsequent to the last preceding Accounting Date), shall be allocated by
the Committee among the Company Contributions Accounts, Member Contributions Accounts, Member Salary Deferral Accounts and Rollover Accounts, portions of which are held in the Investment Fund as of
each Accounting Date pro rata to the value of all such Accounts, respectively, at the last preceding Accounting Date, but first reducing the balance of each such Account as of the last preceding
Accounting Date by any distributions from the Account since that Accounting Date. 

 
 

           Section 8.02.    Valuation of Company Contributions Accounts.     

        The
value of a Member's Company Contributions Account as of any Accounting Date shall be the aggregate of the portions of such Account invested in each Investment Fund as of that date.
The value of that portion of such Account invested in an Investment Fund shall be the sum of: 

        (a)   the
value of such portion as of the last preceding Accounting Date, plus or minus 

        (b)   all
changes in the value of the Investment Fund since the last preceding Accounting Date allocable thereto pursuant to Section 8.01, plus 

        (c)   the
amount of transfer, if any, into such portion and the amount of the Company Contribution, if any, allocable thereto since the last preceding Accounting Date pursuant
to Article VI, minus 

        (d)   any
distributions from, and transfers out of, such portion since the last preceding Accounting Date. 

43

 

 
 

          Section 8.03.    Valuation of Member Contributions Account.     

        The
value of a Member's Member Contributions Account as of any Accounting Date shall be the aggregate of the portions of such Account invested in each Investment Fund as of that date.
The value of that portion of such Account invested in an Investment Fund shall be the sum of: 

        (a)   the
value of such portion as of the last preceding Accounting Date, plus or minus 

        (b)   all
changes in the value of the Investment Fund since the last preceding Accounting Date allocable thereto pursuant to Section 8.01, plus 

        (c)   the
amount, if any, transferred into such portion pursuant to Section 5.04 in an amount equal to voluntary contributions by the Member to the transferor qualified
plan or pursuant to Section 7.05, minus 

        (d)   any
distributions from, and transfers out of, such portion since the last preceding Accounting Date. 

 
 

          Section 8.04.    Valuation of Member Salary Deferral Accounts.     

        The
value of a Member's Member Salary Deferral Account as of any Accounting Date shall be the aggregate of the portions of such Account invested in each Investment Fund as of that date.
The value of that portion of such Account invested in an Investment Fund shall be the sum of: 

        (a)   the
value of such portion as of the last preceding Accounting Date, plus or minus 

        (b)   all
changes in the value of the Investment Fund since the last preceding Accounting Date allocable thereto pursuant to Section 8.01, plus 

        (c)   the
amount, if any, transferred into such portion pursuant to Section 7.05 and the amount of Member Salary Deferrals, if any, allocable thereto since the last
preceding Accounting Date, minus 

        (d)   any
distributions from, and transfers out of, such portion since the last preceding Accounting Date. 

 
 

          Section 8.05.    Valuation of Rollover Accounts.     

44

 

        The
value of a Member's Rollover Account as of any Accounting Date shall be the aggregate of the portions of such Account invested in each Investment Fund as of that date. The value of
that portion of such Account invested in an Investment Fund shall be the sum of: 

        (a)   the
value of such portion as of the last preceding Accounting Date, plus or minus 

        (b)   all
changes in the value of the Investment Fund since the last preceding Accounting Date allocable thereto pursuant to Section 8.01, plus 

        (c)   the
amount of transfer, if any, into such portion since the last preceding Accounting Date pursuant to Section 5.03, minus 

        (d)   any
distributions from, and transfers out of, such portion since the preceding Accounting Date. 

 
 

           Section 8.06.    Valuation of Loan Accounts.     

        The
value of a Member's Loan Account as of any Accounting Date shall be the amount of the outstanding principal and accrued interest on the loan held therein plus the amount of any cash
held therein as of an Accounting Date. 

 
 

           Section 8.07.    Statement to Members.     

        Within
two hundred ten (210) days after the last Accounting Date of each Plan Year, the Committee shall mail or deliver to each Member a statement of the value of his Accounts and
his Loan Account, if any, as of such Accounting Date. 

 
 

          Section 8.08.    Unallocated Forfeitures Account     

        The
value of the Unallocated Forfeitures Account shall be determined as provided in Section 8.02 applied as if the addition to the Unallocated Forfeitures Account was a Company
Contributions Account. 

45

 
 
 

ARTICLE IX
  
    DETERMINATION OF BENEFITS    
    

        Section 9.01.    Retirement.    

        Upon
a Member's Retirement on or after his Normal Retirement Date, he shall become entitled, at the time specified in Article X, to a distribution of his Accounts and his Loan
Account, if any, valued as of the Accounting Date specified in Section 10.01. 

        Section 9.02.    Disability.    

        Upon
a Member's Retirement on account of his Permanent Disability, the Member shall become entitled, at the time specified in Article X, to a distribution of his Accounts and his
Loan Account, if any, valued as of the Accounting Date applicable under Section 10.02. 

        Section 9.03.    Death.    

        Upon
a Member's death, his Eligible Spouse or, if there is no Eligible Spouse or the Eligible Spouse consents in the manner required under Section 2.04(a) to the designation of a
Beneficiary, that Beneficiary shall become entitled, at the time specified in Article X, to a distribution of the then balance of such Member's Accounts and his Loan Account, if any, valued as
of the Accounting Date applicable under Section 10.03; provided, however, that if a valuation date was already fixed for payment pursuant to Article X due to the Member's Retirement or
Permanent Disability, that date shall be used. 

        Section 9.04.    Vesting.    

        Any
Member who has Company Contributions credited to his Account as of December 31, 1988 shall at all times be fully (100%) vested in the balance in his Accounts. Effective for
Plan Years beginning after December 31, 1988, any individual who becomes a Member after that date shall not be vested to any extent in any balance in his Company Contributions Account except
the amount thereof, until his completion of three (3) Years of Service which shall be calculated from the Member's Employment Commencement Date. After completion of three (3) Years of
Service as so calculated, each such Member shall be fully (100%) vested at all times in the balance in his Company Contributions Account. However, a Member who is not otherwise vested shall, upon
reaching his Normal Retirement Date, become and thereafter at all times be fully (100%) vested in the balance in his Company Contributions Account. A Member shall be at all times fully 

46

 

(100%)
vested in the balance in his Member Contributions Account, if any, his Member Salary Deferral Account, if any, his Rollover Account, if any, and his Loan Account, if any. 

        Section 9.05.    Other Separation From Service.    

        In
the event of a Member's Separation from Service other than by reason of death, Retirement or Permanent Disability, he shall be entitled to a distribution of the entire balance in his
Member Contributions Account, if any, his Member Salary Deferral Account, if any, his Loan Account, if any, his Rollover Account, if any, and the vested balance in his Company Contributions Account,
if any, determined as of the Accounting Date applicable under Section 10.04. Such distributions shall be made in the manner and at the time provided in Article X. The unvested portion of
the Member's Company Contributions Account shall be forfeited on the last Accounting Date of the Plan Year in which the earlier of the following occurs: (i) a lump sum distribution is made to
him; (ii) installment payments to him commence; or (iii) the date of the Member's termination of employment. 

        Section 9.06.    Forfeitures.    

        (a)   A
Member who separates from service prior to full vesting of his entire Company Contributions Account, shall forfeit the unvested balance in that Account upon the
Accounting Date coincident with or immediately following the occurrence of a Break in Service with respect to the Member, and that balance shall be allocated as of that Accounting Date to the
Unallocated Forfeiture Account. If the Member subsequently recommences employment prior to incurring five (5) consecutive Breaks in Service, he shall be recredited with the forfeited amounts
upon recommencement of employment. 

        (b)   Any
Company Contributions Account balance forfeited by a Member shall be held in an Unallocated Forfeiture Account until applied to reduce the Company Contribution next
to be made to the Trust as of or following the date the forfeiture occurs. 

        (c)   Effective
January 1, 1995, amounts credited to the "unallocated forfeitures account" (as defined under the ECMC Plan) under the ECMC Plan shall be transferred to
the Unallocated Forfeitures Account. 

47

  

 
 

ARTICLE X
  
    TIME AND MANNER OF PAYMENT OF BENEFITS    
    

 
 
           Section 10.01.    Retirement Benefits.     

        Retirement
benefits, determined pursuant to Section 9.01, shall be paid or commence to be paid (subject to Sections 10.06, 10.07, 10.08 and 10.09) as soon as reasonably
practicable after the Accounting Date coincident with or next following a Member's Retirement on or after his Normal Retirement Date, in the manner selected by the Member, in either of the following
modes or any combination thereof: 

        (a)   in
a single cash sum, valued as of the Accounting Date immediately preceding the payment, provided, however, that the Member may elect to receive the portion, if any, of
his Accounts invested in the Alliance Limited Partnership Unit Fund in Units; or 

        (b)   in
regular annual installments of approximately equal value in cash (or, at the Member's election, solely with respect to the portion of his Accounts invested in the
Alliance Limited Partnership Unit Fund, in Units), provided that the present value of the payments expected to be distributed to the Member must exceed one-half (1/2) the
amount accumulated in the Member's Accounts determined as of the Accounting Date coincident with or next following the Accounting Date immediately preceding the date installments are to commence. An
Account being distributed in installments shall be appropriately adjusted in accordance within Section 8.01 until fully distributed. 

 
 

           Section 10.02.    Disability Benefits.     

        Disability
benefits, determined pursuant to Section 9.02 shall be paid or commence to be paid at the time and in the manner provided in Section 10.01 (substituting
Permanent Disability for Retirement). 

 
 

           Section 10.03.    Death Benefits.     

        Death
benefits, determined pursuant to Section 9.03, shall be paid to the Member's Beneficiary at the time and in the manner provided in Section 10.01(a) (substituting
death for Retirement and substituting Beneficiary for Member where applicable). 

48

 

 
 

           Section 10.04.    Termination Benefits.     

        The
benefits payable to a Member upon his Separation from Service, determined pursuant to Section 9.05, shall, subject to Section 10.09, be paid or commence to be paid at
the time and in the manner provided in Section 10.01 (substituting Separation from Service for Retirement). 

 
 

           Section 10.05.    Direct Rollover Distributions.     

        (a)   Upon
receiving directions from a Member who is eligible to receive a distribution from the Plan pursuant to the provisions of this Article X which constitutes an
"eligible rollover distribution," as defined in Code Section 402(c)(4), to transfer all or any part of such distribution to an "eligible retirement plan," as defined in Code
Section 402(c)(8)(B), the Committee shall cause the portion of the distribution which the Member has elected to so transfer to be transferred directly to such "eligible retirement plan";
provided, however, that the Member shall be required to notify the Committee of the identity of the eligible retirement plan at the time and in the manner that the Committee shall prescribe and the
Committee may require the Member or the eligible retirement plan to provide a statement that the eligible retirement plan is intended to be qualified under Code Section 401(a) (if the plan is
intended to be so qualified) or otherwise meets the requirements necessary to be an "eligible retirement plan." 

        (b)   Upon
receiving instructions from a Beneficiary who is the Member's Eligible Spouse or an alternate payee under a "qualified domestic relations order" as defined in Code
Section 414(p), in either case who is eligible to receive a distribution pursuant to the provisions of Article VII that constitutes an "eligible rollover distribution" as defined in Code
Section 402(c)(4), to transfer all or any part of such distribution to a plan that constitutes an "eligible retirement plan" under Code Section 402(a)(5) with respect to that
distribution, the Committee shall cause the portion of the distribution which such Eligible Spouse or alternate payee has elected to so transfer to the eligible retirement plan so designated. 

        (c)   The
Committee may accomplish the direct transfer described in subsection (a) or (b), as applicable, by delivering a check to the Member, Eligible Spouse or
alternate payee (in each case, a "Distributee") which is payable to the trustee, custodian or other appropriate fiduciary of the "eligible retirement plan," or by such other means as the Committee may
in its discretion determine. The Committee may establish such rules and procedures regarding minimum amounts which may be the subject of direct transfers and other matters pertaining to direct
transfers as it deems necessary from time to time. 

 
 

          Section 10.06.    Latest Commencement of Benefits.     

49

 

        In
no event, unless the Member elects otherwise, shall payment of benefits to him commence later than the sixtieth (60th) day after the close of the later of: 

        (a)   the
Plan Year during which the Member reaches his Normal Retirement Date; or 

        (b)   the
Plan Year during which the Member's Separation from Service occurs. 

        If
a Member elects otherwise, then such election must be made by submitting to the Committee a written statement signed by the Member which describes the benefit and the date on which
the payment of such benefit shall commence. 

 
 

          Section 10.07.    Indirect Payment of Benefits.     

        If
any Member or Beneficiary is, in the judgment of the Committee, legally, physically or mentally incapable of personally receiving and receipting for any payment due hereunder, payment
may be made to the guardian or other legal representative of such Member or Beneficiary or, if none, to any other person or institution, which, in the opinion of the Committee, is then maintaining or
has custody of such Member or Beneficiary. Such payment shall constitute a full discharge with respect to the obligations hereunder. 

 
 

           Section 10.08.    Limitations on Distributions.     

        Notwithstanding
anything to the contrary contained in this Plan: 

        (a)   The
entire interest of each Member must either: 

        (1)   be
paid to him not later than the Required Beginning Date; or 

        (2)   commence
to be paid to him by not later than the Required Beginning Date and paid, in accordance with regulations prescribed by the Secretary of the Treasury, over a
period not extending beyond the life expectancy of the Member or the joint and last survivor life expectancy of the Member and his Designated Beneficiary; provided, however, that if the distribution
of a Member's Account balances has commenced in accordance with this Paragraph (2), any portion remaining to be distributed at the Member's death shall continue to be distributed at least as
rapidly 

50

 

as
under the method of distribution in effect as of such Member's death. 

        (b)   If
a Member dies prior to the commencement of distributions to him in accordance with Paragraph (a)(2), the entire interest of the Member shall be distributed: 

        (1)   not
later than December 31 of the calendar year which contains the fifth anniversary of the Member's death; or 

        (2)   where
distribution is to be made to the Member's Designated Beneficiary, commencing 

        (A)  on
or before December 31 of the calendar year immediately following the calendar year in which the Member died; or 

        (B)  if
the Designated Beneficiary is the Member's surviving Spouse, no later than the later of the date described in Paragraph (A), above or December 31 of the
calendar year in which such Member would have attained age seventy and one-half (701/2), and payable, in accordance with regulations prescribed by the Secretary of the
Treasury, over a period not extending beyond the life expectancy of such Designated Beneficiary. 

        (c)   For
purposes of Paragraphs (a)(2) and (b)(2), prior to the Required Beginning Date, the Member (or his spouse, if the spouse is the Member's Beneficiary) may make an
irrevocable election to have the Member's (and/or his spouse's) life expectancy recalculated not more frequently than annually. If no such election is made prior to the Member's Required Beginning
Date, the Member's (and/or his spouse's) life expectancy shall automatically be recalculated annually. 

        (d)   Under
regulations prescribed by the Secretary of the Treasury, any amount paid to a Member's child shall be treated as if it had been paid to such Member's surviving
spouse if such amount will become payable to such spouse upon the child reaching maturity or such other designated event which may be permitted under such regulations. 

        (e)   For
purposes of this Section 10.08, the term "Designated Beneficiary" shall mean a Member's surviving spouse or an individual designated by the Member pursuant to
Section 2.04. 

51

 

        (f)    Notwithstanding
any provision of this Plan to the contrary, the provisions of this Section 10.08 shall be construed in a manner that complies with Code
Section 401(a)(9) and, with respect to distributions made on or after January 1, 2001, the Plan will apply the minimum distribution requirements of Code Section 401(a)(9) in
accordance with the Treasury Regulations thereunder that were proposed in January 2001, the provisions of which are hereby incorporated by reference. This Subsection (f) shall continue
in effect until the end of the last calendar year beginning before the effective date of the final regulations under Code Section 401(a)(9) or such other date as may be specified in guidance
published by the Internal Revenue Service. 

 
 

           Section 10.09.    Consent to Distributions.     

        No
amount shall be distributed to a Member pursuant to Section 10.02 or 10.04 prior to his Normal Retirement Date without his written consent, unless the amount to be distributed
to the Member is not in excess of $5,000 (in the case of a Member whose Separation from Service occurred before January 1, 1998, $3,500). In the event a Member's consent to a distribution is
required pursuant to this Section 10.09, such distribution shall be made or commence to be made as soon as reasonably practicable after the Accounting Date coincident with or next following the
earlier of (i) the date on which such consent is received by the Committee; or (ii) the Member's Normal Retirement Date. 

52

 
 
 

ARTICLE XI
  
    ADMINISTRATION OF THE PLAN    
    

 
 
           Section 11.01.    Committee.     

        (a)   The
Plan shall be administered by a Committee consisting of at least one person appointed from time to time by the Board and serving without compensation at its
pleasure. The Committee may employ such agents, investment consultants, legal counsel and clerical, medical, accounting and actuarial services as it may deem advisable to assist in the administration
of the Plan. The Committee may designate persons, including persons other than "named fiduciaries" (as defined in Section 402(a)(2) of the Act), to carry out the specified responsibilities of
the Committee and shall not be liable for any act or omissions of a person so designated. The Committee shall have the general responsibility for administering the Plan and shall have all powers
necessary for that purpose, including, but not limited to, the power to interpret and construe the Plan, to determine the eligibility, status and rights of all Employees in connection with the Plan,
to decide disputes arising under or with respect to the Plan, to keep records of Member Accounts and all other books and records of the Plan and to establish rules for such administration. 

        (b)   The
Committee shall also have the general power to administer the assets of the Plan, including, but not limited to, the power to direct the Trustee in the receipt,
disbursement and investment of Plan assets and to designate mutual funds or other investment alternatives which will serve as investment vehicles for Plan assets and any other powers conferred upon
the Committee by the Trust Agreement. The Committee may appoint one or more investment managers and one or more named fiduciaries to which it may delegate such powers over the investment of assets of
the Plan as the Committee deems appropriate. 

        (c)   The
Committee shall act by a majority of its membership and the action of such majority, expressed by a vote at a meeting or in writing without a meeting, shall
constitute the action of the Committee; provided, however, that no Committee member shall be qualified to act in regard to a matter solely concerning himself as a Member of the Plan (as distinguished
from matters affecting Members generally). 

        (d)   Except
as otherwise provided in Section 11.03, the decision or action of the Committee in respect of any matter within the scope of its authority shall be
conclusive and binding on all persons. 

53

 

        (e)   Except
as otherwise required by law, no member of the Committee shall have any liability to any person for any act or omission except for wilful misconduct. 

        (f)    The
Committee and any of its individual members may also act as Trustee or Trustees of the Trust Fund. The Committee shall be the "administrator" of the Plan, within the
meaning of Section (3)(16)(A) of the Act, and shall comply with all of the requirements of the Act which are applicable to a Plan administrator. The Committee is hereby designated as a "named
fiduciary" of the Plan, within the meaning of Section 402(a)(2) of the Act and is authorized to establish procedures for the allocation and delegation of fiduciary responsibilities, except
insofar as such responsibilities are specifically assigned by the provisions of Sections 11.02 and 11.03. The Committee shall be the agent for the service of legal process on the Plan and the Trust. 

        (g)   The
Committee may make such rules and regulations as it determines necessary to regulate the Plan, provided that such rules and regulations conform to the Plan and the
Trust Agreement. 

 
 

          Section 11.02.    Allocation of Responsibility Among Fiduciaries.     

        The
Company, the Committee and the Trustee shall have only such powers, duties, responsibilities and obligations as are specifically granted to them under this Plan or the Trust
Agreement. The Company shall have the sole authority to appoint and remove the members of the Committee and the Trustee and to amend or terminate, in whole or in Part, this Plan or the Trust. The
Committee shall have the sole responsibility for the administration of the Plan and shall have such responsibilities with regard to the Trust as are specifically set forth in the Trust Agreement. The
Trustee shall have such responsibilities as are specifically set forth in the Trust Agreement. Except as otherwise provided by law, it is intended that each of the foregoing fiduciaries shall be
responsible for the proper exercise of its own powers, duties, responsibilities and obligations under this Plan and the Trust Agreement and shall not be responsible for any act or failure to act or
error in judgment in connection with carrying out the provisions of this Plan or the Trust Agreement, except for its own wilful and intentional malfeasance or misfeasance. Except as otherwise provided
by law, no fiduciary shall be responsible for any act or failure to act of another fiduciary. No fiduciary guarantees the Trust Fund in any manner against investment loss or depreciation in asset
value. 

 
 

          Section 11.03.    Claim and Appeal Procedure.     

54

 

        (a)   Benefit Claim Procedure.

        The
Committee shall direct the Trustee to pay benefits to a Member when due hereunder. Any Member or Beneficiary claiming a benefit under the Plan in addition to that directed by the
Committee must complete an application on a form prescribed by and filed with the Committee. The Committee shall make forms available for this purpose. Within sixty (60) days after its receipt
of an application, the Committee shall give written notice to the claimant of its decision on the application. 

        (b)   Denial of Claim.

        If
the Committee denies the claim, in whole or in Part, a written notice of that decision shall: 

        (1)   explain
why the claim was denied; 

        (2)   cite
the provisions of the Plan on which the decision was based; and 

        (3)   explain
the Plan's review procedure set forth in Subsection (c). 

        If
the Committee does not deny the claim on its merits but rejects the application for failure to furnish certain necessary material or information, the written notice to the claimant
shall explain what additional material is needed and why and shall advise the claimant that he may refile a proper application under the claim procedure set forth in Subsection (a). 

        (c)   Review Procedure.

        If
a claim has been denied, the claimant may appeal the denial within sixty (60) days after his receipt of written notice thereof by submitting the items listed below in writing
to a senior executive officer of the general partner referred to in Section 1.08 who is not then a member of the Committee or the claimant himself with a copy to the committee: 

        (1)   a
request for review of the denial of claim; 

        (2)   a
statement containing the basis of the claimant's disagreement with the disposition of the matter and such other material as the claimant deems relevant; and 

55

 

        (3)   a
request, if appropriate, to review the Plan, the Trust Agreement and any other pertinent documents (which shall be made available to him at a convenient location
during regular business hours within thirty (30) days after the Committee's receipt of a copy of the request). 

        The
officer designated to review the Committee's decision shall render a written decision and deliver such to the claimant and to the Committee within sixty (60) days after his
receipt of the appeal; provided, however, that if special circumstances, such as the need to hold a hearing, require an extension of time, the reviewer shall state in writing to the claimant and the
Committee the reasons for such extension, but in no case shall the extension extend beyond one hundred twenty (120) days after his receipt of the appeal. The decision on the appeal shall
contain specific reasons for the decision, shall be written in a manner capable of being understood by the claimant and shall include a statement of the pertinent provisions of the Plan on which the
decision is based. Such decision shall, subject to such judicial review as may be provided by law, be final and binding on all persons concerned. 

 
 

           Section 11.04.    Elections by Former Employees of Equitable Capital Management Corporation     

        Any
designation or election by a Member or the beneficiary of a Member who had an account balance under the ECMC Plan on December 31, 1994, including, without limitation, a
designation of one or more beneficiaries, investment elections or an election to receive a distribution that was in effect under the ECMC Plan as of that date for the corresponding purpose under this
Plan shall continue to be effective under this Plan, as if made in respect of this Plan, until otherwise changed in accordance with the terms of this Plan or any rules or procedures established by the
Committee. 

56

 
 
 

ARTICLE XII
  
    THE TRUST FUND    
    

 
 
           Section 12.01.    The Trust Agreement.     

        The
Company shall enter into a Trust Agreement for the establishment of the Trust with one or more individuals or with a bank or trust company organized and doing business under the laws
of the United States or of any state and authorized under the laws of its jurisdiction of incorporation to exercise corporate trust powers. The Trust Agreement shall be deemed to form a part of
the Plan, and all rights which may accrue to any Person under the Plan shall be subject to the terms of the Trust Agreement. 

 
 

           Section 12.02.    Trustee's Power and Duties.     

        The
Trustee shall manage and control the Trust Fund in accordance with the terms of the Trust Agreement. Following the execution of the Trust Agreement, the Trustee shall, at a meeting
duly called for such purpose, establish a funding policy and method. Thereafter, the Trustee shall review such funding policy and method at least annually and shall communicate all of its actions
taken with respect thereto to the Company. The general objective of the funding policy and method shall be at all times to maintain a balance between safety in capital investment and investment
return. 

 
 

           Section 12.03.    Use of Trust Fund.     

        The
Trust Fund shall be used to provide the benefits and pay the expenses of this Plan and of the Trustee, and no part of the corpus or income shall be used for or diverted to purposes
other than for the exclusive benefit of Members and their Beneficiaries under this Plan and the payment of expenses of the Plan and Trust. 

 
 

           Section 12.04.    Payment of Expenses.     

        All
administrative and other expenses of the Plan and Trust shall be paid out of the Trust Fund unless paid by the Company. Taxes related to the unrelated business taxable income of the
Trust that are paid out of the Trust Fund, shall be paid from and charged solely to the Account or Accounts involved, either on a specific or proportionate basis, as determined by the Committee. 

57

 
 
 

ARTICLE XIII
  
    CERTAIN RIGHTS AND OBLIGATIONS OF THE COMPANY    
    

        Section 13.01.    Disclaimer of Liability.    

        (a)   Although
it is the intention of the Company to continue this Plan and to make substantial and regular contributions each year, nothing contained in this Plan or the
Trust Agreement shall be deemed to require the Company to make any contributions whatsoever under this Plan or to continue the Plan. 

        (b)   Nothing
in this Plan shall be construed as the assumption by the Company of the obligation for any payment of any benefits or claims hereunder, and Members and their
Beneficiaries, and all persons claiming under or through them, shall have recourse only to the Trust Fund for payment of any benefit hereunder. 

        (c)   The
rights of the Members, their Beneficiaries and all other persons are hereby expressly limited to those stated in, and shall be construed only in accordance with, the
Provisions of the Plan. 

        Section 13.02.    Termination.    

        The
Company reserves the right in its sole discretion to terminate this Plan at any time. A "termination" shall be deemed to take place if the Company terminates the Plan, partially
terminates it (within the meaning of Code Section 411(d)(3)(A)) or completely discontinues contributions under this Plan. (For this purpose a suspension of contributions which is merely
temporary shall not be deemed a complete discontinuance.) In the event of a termination, the Company may direct the Trustee to continue to maintain the Trust, and the assets thereof shall be applied
at the continued direction of the Committee in accordance with this Plan. Upon termination of the Trust, distribution to each Member shall be made as soon as practicable thereafter in one of the
manners described in Section 10.01. Until fully distributed, Members' accounts shall be revalued from time to time in accordance with Section 8.01. Upon termination or partial
termination of the Plan, the rights of all affected Members to
the amounts credited to their Accounts to the date of such termination shall become non-forfeitable. 

        Section 13.03.    Employer-Employee Relationship.    

        The
adoption of this Plan shall in no way be construed as conferring any legal or other rights upon any Employee or any Person with respect to continuation of employment, nor shall it in
any way interfere with the right of an 

58

 

Employer
to discharge any Employee or otherwise act with respect to him. Any Employer may take any action (including discharge) with respect to any Employee or other Person without regard to the
effect which such action might have upon his rights as a Member of this Plan. 

        Section 13.04.    Merger, Etc.    

        (a)   The
merger or consolidation of an Employer with or into another company or the acquisition of its assets by any other Person shall not of itself cause the termination of
this Plan or be deemed a termination of employment as to any Employee, nor shall anything in this Plan prevent the consolidation or merger of any Employer with or into any corporation or prevent the
sale by any Employer of any of its assets. The merger of this Plan with another retirement plan shall not of itself cause the termination of this Plan. 

        (b)   In
the event of the dissolution, merger, consolidation or reorganization of the Company, provision may be made by which the Plan and Trust will be continued by the
successor; and in such event such successor shall be substituted for the Company under the Plan. The substitution of the successor shall constitute an assumption of Plan liabilities by the successor,
and the successor shall have all of the powers, duties and responsibilities of the Company under the Plan. 

        (c)   In
the event of any merger or consolidation of the Plan with, or transfer in whole or in part of the assets and liabilities of the Trust Fund to, another trust fund held
under any other plan of deferred compensation maintained or to be established for the benefit of all or some of the Members of this Plan, the assets of the Trust Fund applicable to such members shall
be transferred to such other trust fund only if: 

        (1)   the
values of the Accounts and the vested percentage of the Company Contributions Account of each Member, immediately after the merger, consolidation or transfer, shall
be equal to or greater than such values and percentage immediately before the merger, consolidation or transfer; 

        (2)   resolutions
of the general partner referred to in Section 1.08 and of the governing body any new or successor employer of the affected Members shall authorize
such transfer of assets; and, in the case of the new or successor employer of the affected Members, its resolutions shall include an assumption of liabilities with respect to such Members' inclusion
in the new employer's plan; and 

59

 

        (3)   such
other plan and trust are qualified under Code Sections 401(a) and 501(a). 

        Section 13.05.    Determination Final.    

        Any
determinations made hereunder shall be made in a manner consistent with the Company's accounting practices and shall be final and conclusive for all purposes, notwithstanding any
late adjustments in the tax returns of the Company. 

60

  

 
 

ARTICLE XIV
  
    NON-ALIENATION OF BENEFITS    
    

        Section 14.01.    Provisions with Respect to Assignment and Levy.    

        Except
as may be required under the terms of a "qualified domestic relations order" as defined in Code Section 414(p), no benefit under this Plan shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, garnishment, attachment, levy or charge and any attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber,
garnish, attach, levy upon or charge the same shall be void; nor shall any benefit be in any manner liable for or subject to the debts or other liabilities of the Person entitled thereto. 

        Section 14.02.    Alternate Application.    

        If
any Member or Beneficiary under this Plan becomes bankrupt or attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any benefit under this Plan, except
as specifically provided herein, or if any benefit shall be garnished, attached or levied upon other than pursuant to a qualified domestic relations order as defined in Code Section 414(p),
then such benefits shall, in the discretion of the Committee, cease, and the Committee may hold or apply the same or any part thereof to or for the benefit of such Member or Beneficiary, his spouse,
children or other dependents or any of them in such manner and in such proportion as the Committee may deem proper. 

        Section 14.03.    Exceptions.    

        Notwithstanding
anything herein to the contrary, effective August 5, 1997, the provisions of this Article XIV shall not apply to any offset of a Member's benefits provided
under the Plan against an amount that the Member is ordered or required to pay to the Plan under any of the circumstances set forth in Code Section 401(a)(13)(C) and Sections 206(d)(4) and
206(d)(5) of the Act. 

61

 
 
 

ARTICLE XV
  
    AMENDMENTS    
    

        Section 15.01.    Company's Rights.    

        (a)   The
Company reserves the right, at any time and from time to time, by action of the Board, to modify or amend in whole or in part any or all of the provisions of this
Plan; provided, however, that no such modification or amendment may (i) result in a retroactive reduction in the then value of any Member's Account or Loan Account; or (ii) except to the
extent as may be provided in regulations promulgated by the Secretary of the Treasury, have the effect of eliminating an optional form of benefit. Notwithstanding anything in this Plan to the
contrary, the Board, in its sole discretion, may make any modifications, amendments, additions or deletions in this Plan, as to benefits or otherwise and retroactively or prospectively and regardless
of the effect on the rights of any particular Members, which it deems appropriate in order to bring this Plan into conformity with or to satisfy any conditions of the Act and in order to continue or
maintain the qualification of the Plan and Trust under Code Section 401(a) and to have the Trust declared exempt and maintained exempt from taxation under Code Section 501(a). 

        (b)   No
amendment may change the vesting schedule under Section 9.04, either directly or indirectly, unless each Member having not less than three Years of Service is
permitted to elect, within a reasonable period specified by the Committee after the adoption of such amendment, to have his or her vested percentage computed without regard to such amendment. The
period during which the election may be made shall commence with the date the amendment is adopted and shall end as of the later of: 

        (i)    sixty
days after the amendment is adopted; 

        (ii)   sixty
days after the amendment becomes effective; or 

        (iii)  sixty
days after the Member is issued written notice by the Committee. 

        Section 15.02.    Provision Against Diversion.    

        No
part of the assets of the Trust Fund shall, by reason of any modification or amendment or otherwise, be used for, or diverted to, purposes other than for the exclusive benefit of
Members or their Beneficiaries under this Plan and the payment of the administrative expenses of this Plan. 

62

 
 
 

ARTICLE XVI
  
    LIMITATIONS ON BENEFITS AND CONTRIBUTIONS    
    

        Section 16.01.    The limitations of Code Section 415 applicable to "defined contribution plans" as defined in
Code Section 414(i) are hereby incorporated by reference in this Plan; provided, however, that where the Code so provides, contribution limitations in effect under prior law shall be
applicable to account balances accrued as of the last effective day of such prior law. 

        Section 16.02.    

        (a)   Other
than as provided in Subsection (b), if, with respect to any Plan Year before 1992, contributions to a Member's Account must be reduced to conform to the
limitations on "annual additions" as explained and defined in Code Sections 415(c)(1) and 415(c)(2), Members' Salary Deferrals made pursuant to Section 5.01, and any allocable earnings
thereon, shall be distributed to the Member on a timely basis; next, Company Contributions for the Plan Year made pursuant to Section 4.02 shall be reduced until the limitations are met or this
category of contributions is exhausted, whichever first occurs; next, if such contributions were made for the Plan Year, Company Contributions made pursuant to Section 4.01 shall likewise be
reduced; and last, Member Salary Deferrals made pursuant to Section 6.02(c), and allocable earnings thereon, shall be distributed to the affected Member on a timely basis. 

        (b)   If,
with respect to 1990 and any Plan Year after 1991, contributions to a Member's Account must be reduced to conform to the limitations referred to in
Subsection (a), the reduction shall be achieved first
by the distribution to the affected Member on a timely basis of Member Salary Deferrals made pursuant to Section 5.01, together with allocable earnings thereon, until the limitations are met or
this category of contributions is exhausted, whichever first occurs. Concurrent with the return of such Member Salary Deferrals, Company Contributions made pursuant to Section 4.02 attributable
to such returned Member Salary Deferrals shall be reduced. Finally, if necessary, Company Contributions for the Plan Year made pursuant to Section 4.01 shall be reduced. 

        Section 16.03.    In the case of a Member who is, or has ever been, a participant in one or more "defined benefit plans"
as defined in Code Section 414(j), maintained by an Employer or any predecessor of the Employer, if Contributions or benefits need to be reduced due to the application of Code
Section 415(e), then benefits under the defined benefit plans shall be reduced with respect to that Member before any contributions credited to the Member under this Plan, or any other defined
contribution plan maintained by the Employer, 

63

 

shall
be reduced. Notwithstanding the foregoing, the limitations of Code Section 415(e) shall cease to apply as of the first day of the first Plan Year beginning on or after January 1,
2000. 

64

 
 
 

ARTICLE XVII
  
    TOP-HEAVY PLAN YEARS    
    

        Section 17.01.    For purposes of this Article XVII, the following definitions shall apply: 

        (a)   "Determination
Data" means, for any Plan Year subsequent to the first Plan Year, the last day of the preceding Plan Year. For the first Plan Year of a plan, the last day
of that year. 

        (b)   "Employee"
means any employee of an Employer and any beneficiary of such an employee. 

        (c)   "Employer"
means the Employer and any Affiliate. 

        (d)   "Key
Employee" means an Employee as defined in Section 416(i)(1) and the Regulations thereunder. For Plan Years beginning after December 31, 2001, "Key
Employee" means any Employee or former Employee (including any deceased Employee) who at any time during the Plan Year that includes the "Determination Data" was an officer of the Employer having
annual compensation greater than $130,000 (as adjusted under Code Section 416(i)(1) for Plan Years beginning after December 31, 2002), a 5-percent owner of the Employer or a
1-percent owner of the Employer having annual compensation of more than $150,000. As used in this definition, "annual compensation" means compensation within the meaning of Code
Section 415(c)(3). For Plan Years beginning before December 31, 2001, "Key Employee" means any Employee or former Employee (and the Beneficiaries of such Employee) who, at any time
during the determination period, was an officer of the Employer if such individual's Top-Heavy Compensation exceeds 50% of the dollar limitation under Code Section 415(b)(1)(A), an
owner (or considered an owner under Code Section 318) of one of the ten largest interests in the Employer if such individual's Top-Heavy Compensation exceeds 100% of such dollar
limitation, a 5 percent owner of the Employer, or a 1 percent owner of the Employer who has annual Top-Heavy Compensation of more than $150,000. The determination period is
the Plan Year containing the Determination Date and the 4 preceding Plan Years. 

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

65

 

        (f)    "Required
Aggregation Group" means (1) each qualified plan of the Employer in which at least one Key Employee participates; and (2) any other qualified
plan of the Employer which enables a plan described in (1) to meet the requirements of Code Sections 401(a)(4) or 410. 

        (g)   "Top-Heavy
Compensation" means the Employee's compensation as defined in Code Section 414(q)(7). 

        (h)   "Top-Heavy
Ratio" means: 

        (1)   If,
in addition to this Plan, the Employer maintains one or more other defined contribution plans (including any simplified employee pension plan) and the Employer has
not maintained any defined benefit plan which, during the 1-year period ending on the Determination Date, has or
has had accrued benefits, the top-heavy ratio for this Plan alone or for the Required or Permissive Aggregation Group, as appropriate, is a fraction, the numerator of which is the sum of
the account balances of all Key Employees as of the Determination Date (including any part of any account balance distributed in the 1-year period ending on the Determination Date), and
the denominator of which is the sum of all account balances (including any part of any account balance distributed in the 1-year period ending on the Determination Date), both computed in
accordance with Code Section 416 and the regulations thereunder. Both the numerator and denominator of the Top-Heavy Ratio are adjusted to reflect any contribution not actually made
as of the Determination Date, but which is required to be taken into account on that date under Code Section 416 and the regulations thereunder. 

        (2)   If,
in addition to this Plan, the Employer maintains one or more defined contribution plans (including any simplified employee pension plan), and the Employer maintains
or has maintained one or more defined benefit plans which, during the 5-year period ending on the Determination Date, has or has had any accrued benefits, the Top-Heavy Ratio
for any Required or Permissive Aggregation Group, as appropriate, is a fraction, the numerator of which is the sum of account balances under the aggregated defined contribution plan or plans for all
Key Employees, determined in accordance with (1) above, and the present value of accrued benefits under the aggregated defined benefit plan or plans for all Key Employees as of the
Determination Date, and the denominator of which is the sum of 

66

 

the
account balances under the aggregated defined contribution plan or plans for all participants, determined in accordance with (1) above, and the present value of accrued benefits under the defined
benefit plan or plans for all participants as of the Determination Date, all determined in accordance with Code Section 416 and the regulations thereunder. The accrued benefits under a defined
benefit plan in both the numerator and denominator of the Top-Heavy Ratio are adjusted for any distribution of an accrued benefit made in the 1-year period ending on the
Determination Date. 

        (3)   For
purposes of (1) and (2) above, the value of account balances and the present value of accrued benefits will be determined as of the most recent Valuation Date that
falls within or ends with the 12-month period ending on the Determination Date, except as provided in Code Section 416 and the regulations thereunder for the first and the second
plan years of a defined benefit plan. The account balances and accrued benefits of a participant (x) who is not a Key Employee but who was a Key Employee in a prior year; or (y) who has
not received any Top-Heavy Compensation from any Employer maintaining the Plan at any time during the 5-year period ending on the Determination Date, will be disregarded.
Notwithstanding the above, for Plan Years beginning after December 31, 2001, the accrued benefits and accounts of any participant who has not performed services for the Employer during the
1-year period ending on the Determination Date will be disregarded. The calculation of the Top-Heavy Ratio, and the extent to which distributions, rollovers, and transfers are
taken into account will be made in accordance with Code Section 416 and the regulations thereunder. Deductible Employee contributions will not be taken into account for purposes of computing
the Top-Heavy Ratio. When aggregating plans the value of account balances and accrued benefits will be calculated with reference to the Determination Dates that fall within the same
calendar year. 

        (4)   For
purposes of (1) and (2) above, in the case of a distribution from the Plan made for any reason other than separation from service, death or disability,
"5-year period" shall be substituted for "1-year period" wherever such term is found. 

        (e)   "Valuation
Data" means the last day of the Plan Year. 

67

 

        Section 17.02    If the Plan is or becomes top-heavy in any Plan Year, the provisions of Section 17.04
will automatically supersede any conflicting provision of the Plan. 

        Section 17.03    The Plan shall be considered top-heavy for any Plan Year if any of the following conditions
exists: 

        (a)   If
the Top-Heavy Ratio for this Plan exceeds 60 percent and this Plan is not part of any Required Aggregation Group or Permissive Aggregation Group of
plans. 

        (b)   If
this Plan is part of a Required Aggregation Group of plans but not part of a Permissive Aggregation Group and the Top-Heavy Ratio for the group of plans
exceeds 60 percent. 

        (c)   If
this Plan is part of a Required Aggregation Group of plans and part of a Permissive Aggregation Group and the Top-Heavy Ratio for the Permissive
Aggregation Group exceeds 60 percent. 

        Section 17.04    

        (a)   Except
as provided in subsection (b), the amount of the Company contribution made on behalf of each Member who is not a Key Employee for any Plan Year for which the Plan
is a Top-Heavy Plan shall be at least equal to the lesser of: 

        (1)   three
percent (3%) of such Member's Top-Heavy Compensation less any amount contributed on behalf of the Member under any other defined contribution plan
maintained by an Employer or an Affiliate; or 

        (2)   the
percentage of Top-Heavy Compensation represented by the Company Contributions and Member Salary Deferrals made on behalf of the Key Employee for whom
such percentage is the highest for such Plan Year, determined by dividing the sum of the Company Contribution and Member Salary Deferrals made on behalf of each such Key Employee by so much of his
Top-Heavy Compensation as does not exceed $200,000. 

        (b)   Where
the inclusion of this Plan in a Permissive Aggregation Group or Required Aggregation Group pursuant to Section 17.01(e) or 17.01(f) enables a defined
benefit plan described in Section 17.01(f) to meet the requirements of 

68

 

Code
Sections 401(a)(4) or Section 410, the minimum contribution required under this Section 17.04 shall be the amount specified in Section 17.04(a)(1). 

69

 
 
 

ARTICLE XVIII
  
    MISCELLANEOUS    
    

        Section 18.01    Binding on Heirs, Etc.    

        This
Plan shall extend to and be binding upon the heirs, executors, administrators, successors and assigns of the Members and their Beneficiaries and all successors to the Company by way
of merger, consolidation, acquisition of assets or otherwise. 

        Section 18.02    Governing Law.    

        All
questions pertaining to the validity, construction and administration of the Plan shall be determined in accordance with the laws of the State of New York, except to the extent that
such laws have been superseded by the Act. 

        Section 18.03    Separability.    

        If
any provision of this Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of this Plan, and the Plan shall be
construed and enforced as if such illegal and invalid provisions had never been inserted herein. 

        Section 18.04    Captions and Gender.    

        The
captions herein are for convenience of reference only and are not to be construed as part of the Plan. As used herein, the masculine shall include the feminine and the neuter and
vice versa, as the context requires. 

70Use these links to rapidly review the document

  TABLE OF CONTENTS

 

Exhibit 10.6    
    

AMENDMENT AND COMPLETE RESTATEMENT

OF THE

SCB SAVINGS OR CASH OPTION PLAN FOR EMPLOYEES  

        
(As Amended through January 1, 2002) 

 
 

 

	ARTICLE I
	 	 	DEFINITIONS
	

ARTICLE II
	 	 	TOP HEAVY AND ADMINISTRATION
	2.1	 	TOP HEAVY PLAN REQUIREMENTS
	2.2	 	DETERMINATION OF TOP HEAVY STATUS
	2.3	 	POWERS AND RESPONSIBILITIES OF THE EMPLOYER
	2.4	 	DESIGNATION OF ADMINISTRATIVE AUTHORITY
	2.5	 	ALLOCATION AND DELEGATION OF RESPONSIBILITIES
	2.6	 	POWERS AND DUTIES OF THE ADMINISTRATOR
	2.7	 	RECORDS AND REPORTS
	2.8	 	APPOINTMENT OF ADVISERS
	2.9	 	INFORMATION FROM EMPLOYER
	2.10	 	PAYMENT OF EXPENSES
	2.11	 	MAJORITY ACTIONS
	2.12	 	CLAIMS PROCEDURE
	2.13	 	CLAIMS REVIEW PROCEDURE
	

ARTICLE III
	 	 	ELIGIBILITY
	3.1	 	CONDITIONS OF ELIGIBILITY
	3.2	 	APPLICATION FOR PARTICIPATION
	3.3	 	EFFECTIVE DATE OF PARTICIPATION
	3.4	 	DETERMINATION OF ELIGIBILITY
	3.5	 	TERMINATION OF ELIGIBILITY
	3.6	 	OMISSION OF ELIGIBLE EMPLOYEE
	3.7	 	INCLUSION OF INELIGIBLE EMPLOYEE
	3.8	 	QUALIFIED MILITARY SERVICE PROVISIONS
	

ARTICLE IV
	 	 	CONTRIBUTION AND ALLOCATION
	4.1	 	FORMULA FOR DETERMINING EMPLOYER'S CONTRIBUTION
	4.2	 	PARTICIPANT'S SALARY REDUCTION ELECTION
	4.3	 	TIME OF PAYMENT OF EMPLOYER'S CONTRIBUTION
	4.4	 	ALLOCATION OF CONTRIBUTION AND EARNINGS
	4.5	 	ACTUAL DEFERRAL PERCENTAGE TESTS
	4.6	 	ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE TESTS
	4.7	 	ACTUAL CONTRIBUTION PERCENTAGE TESTS
	4.8	 	REPEAL OF MULTIPLE USE TEST
	 	 	 

i

 

	4.9	 	ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE TESTS
	4.10	 	MAXIMUM ANNUAL ADDITIONS
	4.11	 	ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS
	4.12	 	ROLLOVERS FROM QUALIFIED PLANS
	4.13	 	VOLUNTARY CONTRIBUTIONS
	4.14	 	DIRECTED INVESTMENT ACCOUNT
	

ARTICLE V
	 	 	VALUATIONS
	5.1	 	VALUATION OF THE TRUST FUND
	5.2	 	METHOD OF VALUATION
	

ARTICLE VI
	 	 	DETERMINATION AND DISTRIBUTION OF BENEFITS
	6.1	 	DETERMINATION OF BENEFITS UPON RETIREMENT
	6.2	 	DETERMINATION OF BENEFITS UPON DEATH
	6.3	 	DISABILITY RETIREMENT BENEFITS
	6.4	 	DETERMINATION OF BENEFITS UPON TERMINATION
	6.5	 	DISTRIBUTION OF BENEFITS
	6.6	 	DISTRIBUTION OF BENEFITS UPON DEATH
	6.7	 	TIME OF SEGREGATION OR DISTRIBUTION
	6.8	 	DISTRIBUTION FOR MINOR BENEFICIARY
	6.9	 	LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN
	6.10	 	PRE-RETIREMENT DISTRIBUTION
	6.11	 	LIMITATIONS ON BENEFITS AND DISTRIBUTIONS
	

ARTICLE VII
	 	 	TRUSTEES
	7.1	 	BASIC RESPONSIBILITIES OF THE TRUSTEES
	7.2	 	INVESTMENT POWERS AND DUTIES OF THE TRUSTEES
	7.3	 	OTHER POWERS OF THE TRUSTEES
	7.4	 	LOANS TO PARTICIPANTS
	7.5	 	DUTIES OF THE TRUSTEES REGARDING PAYMENTS
	7.6	 	TRUSTEES' COMPENSATION AND EXPENSES AND TAXES
	7.7	 	ANNUAL REPORT OF THE TRUSTEES
	7.8	 	AUDIT
	7.9	 	RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEES
	7.10	 	TRANSFER OF INTEREST
	

ARTICLE VIII
	 	 	AMENDMENT, TERMINATION AND MERGERS
	8.1	 	AMENDMENT
	8.2	 	TERMINATION
	 	 	 

ii

 

	8.3	 	MERGER OR CONSOLIDATION
	

ARTICLE IX
	 	 	MISCELLANEOUS
	9.1	 	PARTICIPANT'S RIGHTS
	9.2	 	ALIENATION
	9.3	 	CONSTRUCTION OF PLAN
	9.4	 	GENDER AND NUMBER
	9.5	 	LEGAL ACTION
	9.6	 	PROHIBITION AGAINST DIVERSION OF FUNDS
	9.7	 	BONDING
	9.8	 	EMPLOYER'S AND TRUSTEES' PROTECTIVE CLAUSE
	9.9	 	INSURER'S PROTECTIVE CLAUSE
	9.10	 	RECEIPT AND RELEASE FOR PAYMENTS
	9.11	 	ACTION BY THE EMPLOYER
	9.12	 	NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY
	9.13	 	HEADINGS
	9.14	 	APPROVAL BY INTERNAL REVENUE SERVICE
	9.15	 	UNIFORMITY
	

ARTICLE X
	 	 	PARTICIPATING EMPLOYERS
	10.1	 	ADOPTION BY OTHER EMPLOYERS
	10.2	 	REQUIREMENTS OF PARTICIPATING EMPLOYERS
	10.3	 	DESIGNATION OF AGENT
	10.4	 	EMPLOYEE TRANSFERS
	10.5	 	PARTICIPATING EMPLOYER'S CONTRIBUTION
	10.6	 	AMENDMENT
	10.7	 	DISCONTINUANCE OF PARTICIPATION
	10.8	 	ADMINISTRATOR'S AUTHORITY
	10.9	 	GUARANTEES

iii

 
 

SCB SAVINGS OR CASH OPTION PLAN FOR EMPLOYEES    
    

        WHEREAS, Sanford C. Bernstein & Co., Inc. the predecessor of Alliance Capital Management L.P. ("Alliance"), established a Profit Sharing Plan and
Trust effective February 1, 1969, (hereinafter called the "Effective Date") known as SCB Savings or Cash Option Plan For Employees (herein referred to as the "Plan") in recognition of the
contribution made to its successful operation by its employees and for the exclusive benefit of its eligible employees; and 

        WHEREAS,
under the terms of the Plan, the Employer (as defined herein) has the ability to amend the Plan, provided the Trustees (as defined herein) join in such amendment if the
provisions of the Plan affecting the Trustees are amended; and 

        WHEREAS,
effective January 1, 1997, except as otherwise provided, the Plan was amended and restated in its entirety; and 

        WHEREAS,
effective December 29, 1999, except as otherwise provided, the Plan was further amended; and 

        WHEREAS,
in connection with the acquisition of the assets of Sanford C. Bernstein & Co., Inc. and Bernstein Technologies Inc. by Alliance, Alliance shall be deemed
the Employer and Plan sponsor as of October 2, 2000; and 

        WHEREAS,
further amendments to the Plan are necessary to satisfy requirements of Section 401(a)of the Internal Revenue Code with respect to the qualification of the Plan under
that Section; 

        NOW,
THEREFORE, this document sets forth the Plan as embodying such further amendments which are effective either as of January 1, 2002, except as otherwise provided, or as of
such other date with respect to a particular amendment as required for the Plan to satisfy any applicable requirement for qualification under Section 401(a) of the Internal Revenue Code. 

 
 
 
 

ARTICLE I
  DEFINITIONS    
    

        1.1    "Act"
means the Employee Retirement Income Security Act of 1974, as it may be amended from time to time. 

        1.2    "Administrator"
means the person designated by the Employer pursuant to Section 2.4 to administer the Plan on behalf of the Employer. 

        1.3    "Affiliated
Employer" means the Employer and any corporation which is a member of a controlled group of corporations (as defined in Code Section 414(b) which
includes the Employer; any trade or business (whether or not incorporated) which is under common 

 

control
(as defined in Code Section 414(c)) with the Employer; any organization (whether or not incorporated) which is a member of an affiliated service group (as defined in Code
Section 414(m) which includes the Employer; and any other entity required to be aggregated with the Employer pursuant to Regulations under Code Section 414(o). 

        1.4    "Aggregate
Account" means, with respect to each Participant, the value of all accounts maintained on behalf of a Participant, whether attributable to Employer or
Employee contributions, subject to the provisions of Section 2.2. 

        1.5    "Anniversary
Date" means December 31st. 

        1.6    "Beneficiary"
means the person to whom the share of a deceased Participant's total account is payable, subject to the restrictions of Sections 6.2 and 6.6. 

        1.7    "Board
of Directors" means the Board of Directors of the general partner of Alliance responsible for the management of Alliance's business or a committee thereof
designated by such Board. 

        1.8    "Code"
means the Internal Revenue Code of 1986, as amended or replaced from time to time. 

        1.9    "Compensation"
with respect to any Participant means his cash "415 Compensation" for a Plan Year, excluding any expatriate tax equalization or similar payments.
Compensation for any Plan Year shall not exceed the Section 401(a)(17) Limitation. 

        For
a Participant's initial year of participation, Compensation shall be recognized for the entire Plan Year. 

        1.10    "Contract"
means a contract issued by an insurer. 

        1.11    "Deferred
Compensation" with respect to any Participant means that portion of the Participant's total Compensation which has been contributed to the Plan in accordance
with the Participant's deferral election pursuant to Section 4.2. 

        1.12    "Early
Retirement Date". This Plan does not provide for a retirement date prior to Normal Retirement Date. 

        1.13    "Elective
Contribution" means the Employer's contributions to the Plan that are made pursuant to the Participant's deferral election provided in Section 4.2. In
addition, the Employer's matching contribution made pursuant to Section 4.1(b), any Employer NHCE Contribution made pursuant to Section 4.1(d), and any Employer Qualified
Non-Elective Contribution made pursuant to Section 4.6 shall be considered an Elective Contribution for purposes of the Plan. Any such contributions deemed to be Elective
Contributions shall be 

2

 

subject
to the requirements of Sections 4.2(b) and 4.2(c) and shall further be required to satisfy the discrimination requirements of Regulation 1.401(k)-1(b)(3), the provisions of
which are specifically incorporated herein by reference. 

        1.14    "Eligible
Employee" means any Employee, except as provided below. 

        Employees
whose employment is governed by the terms of a collective bargaining agreement between Employee representatives (within the meaning of Code Section 7701(a)(46)) and the
Employer under which retirement benefits were the subject of good faith bargaining between the parties, unless such agreement expressly provides for such coverage in this Plan, will not be eligible to
participate in this Plan. 

        Employees
of Affiliated Employers shall not be eligible to participate in this Plan unless such Affiliated Employers have specifically adopted this Plan in writing. Employees who are
non-resident aliens and who received no earned income (within the meaning of Code Section 911(d)(2)) from the Employer constituting United States source income within the meaning of
Code Section 861(a)(3), with the exception of Employees who are classified as Expatriates, will not be eligible to participate in this Plan. Employees who are Leased Employees will not be
eligible to participate in this Plan. 

        An
individual classified by the Employer at the time services are provided as either an independent contractor, or an individual who is not classified as an Employee due to an Employer's
treatment of any services provided by him as being provided by another entity (which is not an Affiliated Employer) which is providing such individual's services to the Employer, shall not be eligible
to participate in this Plan during the period the individual is so initially classified, even if such individual is later retroactively reclassified as an Employee during all or any part of such
period pursuant to applicable law or otherwise. 

        Employees
accruing benefits and/or receiving contributions under a retirement plan of an Affiliated Employer which operates entirely or primarily outside the United States, other than
this Plan, will not be eligible to participate in this Plan. 

        Any
Eligible Employee classified as an Expatriate, regardless of whether the Employee is paid through a U.S. or Foreign Payroll, shall be eligible to participate in this Plan. 

        Notwithstanding
the foregoing, any Employee not classified as an Expatriate, and who is paid through a Foreign Payroll, shall not be eligible to participate in this Plan. 

        For
the purposes of the foregoing, "Expatriate" means any Employee employed by the Employer who was initially engaged to render services entirely or primarily in the United States and
who is subsequently assigned by the Employer to work outside of the United States on a temporary basis with the intention that such Employee will return to work for the Employer in the United States. 

3

 

        For
the purposes of the foregoing, "Foreign Payroll" means any payroll that is not based in the United States. 

        Notwithstanding
anything contained herein to the contrary, any Employee who was not employed by Sanford C. Bernstein & Co., Inc. or Bernstein Technologies Inc. on
September 29, 2000 shall not be eligible to participate in this Plan. An Employee who was employed by either Sanford C. Bernstein & Co., Inc. or Bernstein Technologies Inc.
on September 29, 2000 who is not yet a Plan Participant shall be eligible to participate in this Plan in accordance with the provisions of Article III hereof. 

        1.15    "Employee"
means any person who is employed by the Employer or Affiliated Employer, but excluding any person who is an independent contractor. Employee shall include
any Leased Employee. 

        1.16    "Employer"
means Alliance Capital Management L.P. and any successor by merger, consolidation, purchase or otherwise. Prior to October 2, 2000, Sanford C.
Bernstein & Co., Inc. and Bernstein Technologies Inc. were the Employers hereunder. 

        1.17    "Excess
Aggregate Contributions" means, with respect to any Plan Year, the excess of the aggregate amount of the voluntary Employee contributions made pursuant to
Section 4.13, Excess Contributions recharacterized as voluntary Employee contributions pursuant to Section 4.6(a) and any qualified non-elective contributions or elective
deferrals taken into account pursuant to Section 4.7(c) on behalf of Highly Compensated Participants for such Plan Year, over the maximum amount of such contributions permitted under the
limitations of Sections 4.7(a). 

        1.18    "Excess
Compensation" with respect to any Participant means the Participant's Compensation which is in excess of the Taxable Wage Base. 

        1.19    "Excess
Contributions" means, with respect to a Plan Year, the excess of Elective Contributions made on behalf of Highly Compensated Participants for the Plan Year over
the maximum amount of such contributions permitted under Section 4.5(a). Excess Contributions, including amounts recharacterized pursuant to Section 4.6(a)(2), shall be treated as an
"annual addition" pursuant to Section 4.10(b). 

        1.20    "Excess
Deferred Compensation" means, with respect to any taxable year of a Participant, the excess of the aggregate amount of such Participant's Deferred Compensation
and the elective deferrals pursuant to Section 4.2(f) actually made on behalf of such Participant for such taxable year, over the dollar limitation provided for in Code Section 402(g),
which is incorporated herein by reference. Excess Deferred Compensation shall be treated as an "annual addition" pursuant to Section 4.10(b). 

4

 

        1.21    "Family
Member" generally means, with respect to an affected Participant, such Participant's spouse, child, parent or grandparent as described in Code
Section 318(a)(1). 

        1.22    "Fiduciary"
means any person who (a) exercises any discretionary authority or discretionary control respecting management of the Plan or exercises any authority
or control respecting management or disposition of its assets, (b) renders investment advice for a fee or other compensation, direct or indirect, with respect to any monies or other property of
the Plan or has any authority or responsibility to do so, or (c) has any discretionary authority or discretionary responsibility in the administration of the Plan, including, but not limited
to, the Trustees, the Employer and its representative body, and the Administrator. 

        1.23    "Fiscal
Year" means the Employer's accounting year of 12 months commencing on January 1st of each year and ending the following December 31st. 

        1.24    "Forfeiture"
Under this Plan, Participant accounts are 100% Vested at all times. Any amounts that may otherwise be forfeited under the Plan pursuant to
Section 3.7 or 6.9 shall be used to reduce the contribution of the Employer. 

        1.25    "Former
Participant" means a person who has been a Participant, but who has ceased to be a Participant for any reason. 

        1.26    "415
Compensation" means compensation as defined in Section 4.10(d). 

        1.27    "414(s)
Compensation" with respect to any Employee means his Elective Contributions attributable to Deferred Compensation recharacterized as voluntary Employee
contributions pursuant to Section 4.6(a) plus "415 Compensation" paid during a Plan Year. 

        For
purposes of this Section, the determination of "414(s) Compensation" for Plan Years beginning before January 1, 1998 shall be made by including salary reduction contributions
made by the Employer on behalf of an Employee that are not includible in such Employee's gross income under Code Sections 125, 401(k), 402(e)(3), 402(h), or 403(b). 

        414(s)
Compensation shall be subject to the limits of Section 1.66. 

        1.28    "Highly
Compensated Employee" means an Employee who, with respect to the "determination year": 

        (a)   owned
(or is considered as owning within the meaning of Code Section 318) at any time during the "determination year" or "look-back year" more than
five percent of the outstanding stock of the Employer or stock possessing more than five percent of the total combined voting power of all stock of the Employer (the attribution of ownership interest
to "Family Members" shall be used pursuant to Code Section 318); or 

5

 

        (b)   who
received "415 Compensation" during the "look-back year" from the Employer in excess of $80,000 and was in the Top Paid Group of Employees for the
"look-back year". 

        The
"determination year" shall be the Plan Year for which testing is being performed. The "look-back year" shall be the Plan Year immediately preceding the "determination
year." 

        For
purposes of this Section, the determination of "415 Compensation" for Plan Years beginning before January 1, 1998 shall be made by including amounts that would otherwise be
excluded from a Participant's gross income by reason of the application of Code Sections 125, 402(e)(3), 402(h)(1)(B) and, in the case of Employer contributions made pursuant to a salary reduction
agreement, by including amounts that would otherwise be excluded from a Participant's gross income by reason of the application of Code Section 403(b). 

        The
dollar threshold amounts specified in (b) above shall be adjusted at such time and in such manner as is provided in Regulations. In the case of such an adjustment, the dollar
limits which shall be
applied are those for the calendar year in which the "determination year" or "look-back year" begins. 

        In
determining who is a Highly Compensated Employee, Employees who are nonresident aliens and who received no earned income (within the meaning of Code Section 911(d)(2)) from the
Employer constituting United States source income within the meaning of Code Section 861(a)(3) shall not be treated as Employees. 

        Additionally,
all Affiliated Employers shall be taken into account as a single employer and Leased Employees within the meaning of Code Sections 414(n)(2) and 414(o)(2) shall be
considered Employees unless such Leased Employees are covered by a plan described in Code Section 414(n)(5) and are not covered in any qualified plan maintained by the Employer. The exclusion
of Leased Employees for this purpose shall be applied on a uniform and consistent basis for all of the Employer's retirement plans. Highly Compensated Former Employees shall be treated as Highly
Compensated Employees without regard to whether they performed services during the "determination year". 

        Effective
for Plan Years beginning on January 1, 1997, the "Family Member" rules of prior Code Section 414(q)(6) shall not be applicable for purposes of this Plan. 

        1.29    "Highly
Compensated Former Employee" means a former Employee who had a separation year prior to the "determination year" and was a Highly Compensated Employee in the
year of separation from service or in any "determination year" after attaining age 55. Notwithstanding the foregoing, an Employee who separated from service prior to 1987 will be treated as a Highly
Compensated Former Employee only if during the separation year (or year preceding the separation year) or any year after the Employee attains age 55 (or the last year ending before the Employee's 55th
birthday), the Employee either received "415 Compensation" 

6

 

in
excess of $50,000 or was a "five percent owner". For purposes of this Section, "determination year", "415 Compensation" and "five percent owner" shall be determined in accordance with
Section 1.28. Highly Compensated Former Employees shall be treated as Highly Compensated Employees. The method set forth in this Section for determining who is a "Highly Compensated Former
Employee" shall be applied on a uniform and consistent basis for all purposes for which the Code Section 414(q) definition is applicable. 

        Effective
for Plan Years beginning on January 1, 1997, the "Family Member" rules of prior Code Section 414(q)(6) shall not be applicable for purposes of this Plan. 

        1.30    "Highly
Compensated Participant" means any Highly Compensated Employee who is eligible to participate in the Plan. 

        1.31    "Hour
of Service" means (1) each hour for which an Employee is directly or indirectly compensated or entitled to compensation by the Employer for the performance
of duties during the applicable computation period; (2) each hour for which an Employee is directly or indirectly compensated or entitled to compensation by the Employer (irrespective of
whether the employment relationship has terminated) for reasons other than performance of duties (such as vacation, holidays, sickness, jury duty, disability, lay-off, military duty or
leave of absence) during the applicable computation period; (3) each hour for which back pay is awarded or agreed to by the Employer without regard to mitigation of damages. These hours will be
credited to the Employee for the computation period or periods to which the award or agreement pertains rather than the computation period in which the award, agreement or payment is made. The same
Hours of Service shall not be credited both under (1) or (2), as the case may be, and under (3). 

        Notwithstanding
the above, (i) no more than 501 Hours of Service are required to be credited to an Employee on account of any single continuous period during which the Employee
performs no duties (whether or not such period occurs in a single computation period); (ii) an hour for which an Employee is directly or indirectly paid, or entitled to payment, on account of a
period during which no duties are performed is not required to be credited to the Employee if such payment is made or due under a plan maintained solely for the purpose of complying with applicable
worker's compensation, or unemployment compensation or disability insurance laws; and (iii) Hours of Service are not required to be credited for a payment which solely reimburses an Employee
for medical or medically related expenses incurred by the Employee. 

        For
purposes of this Section, a payment shall be deemed to be made by or due from the Employer regardless of whether such payment is made by or due from the Employer directly, or
indirectly through, among others, a trust fund or insurer, to which the Employer contributes or pays premiums and regardless of whether contributions made or due to the trust fund, insurer, or other
entity are for the benefit of particular Employees or are on behalf of a group of Employees in the aggregate. 

7

 

        To
the extent applicable, an Hour of Service must be counted for the purpose of determining a Year of Service, a year of participation for purposes of accrued benefits, a
1-Year Break in Service, and employment commencement date (or reemployment commencement date). In addition, Hours of Service will be credited for employment with other Affiliated
Employers. With regard to any Employee for whom hours worked are not required to be kept by any applicable law, such Employee shall be credited with 45 Hours of Service for any week in which he is
credited with at least one Hour of Service. The provisions of Department of Labor regulations 2530.200b-2(b) and (c) are incorporated herein by reference. Effective
January 1, 1999, for purposes of this Section and Section 4.4(a)(3), Salaried Employees shall be credited with 45 Hours of Service for any week in which
they are credited with at least one Hour of Service and Hourly Employees shall be credited with actual hours worked. 

        1.32    "Hourly
Employee" means any Employee who is classified by the Employer as an Hourly Employee in accordance with its normal payroll practices and who is paid based on a
multiple of the number of hours worked. 

        1.33    "Income"
means the income allocable to "excess amounts" which shall equal the sum of the allocable gain or loss for the "applicable computation period" and the
allocable gain or loss for the period between the end of the "applicable computation period" and the date of distribution ("gap period"). The income allocable to "excess amounts" for the "applicable
computation period" and the "gap period" is calculated separately and is determined by multiplying the income for the "applicable computation period" or the "gap period" by a fraction. The numerator
of the fraction is the "excess amount" for the "applicable computation period". The denominator of the fraction is the total "account balance" attributable to "Employer contributions" as of the end of
the "applicable computation period" or the "gap period", reduced by the gain allocable to such total amount for the "applicable computation period" or the "gap period" and increased by the loss
allocable to such total amount for the "applicable computation period" or the "gap period". The provisions of this Section shall be applied: 

        (a)   For
purposes of Section 4.2(f), by substituting: 

        (1)   "Excess
Deferred Compensation" for "excess amounts"; 

        (2)   "Taxable
year of the Participant" for "applicable computation period"; 

        (3)   "Deferred
Compensation" for "Employer contributions"; and 

        (4)   "Participant's
Elective Account" for "account balance". 

        (b)   For
purposes of Section 4.6(a), by substituting: 

        (1)   "Excess
Contributions" for "excess amount"; 

8

 

        (2)   "Plan
Year" for "applicable computation period"; 

        (3)   "Elective
Contributions" for "Employer contributions"; and 

        (4)   "Participant's
Elective Account" for "account balance". 

        (c)   For
purposes of Section 4.9(a), by substituting: 

        (1)   "Excess
Aggregate Contributions" for "excess amounts"; 

        (2)   "Plan
Year" for "applicable computation period"; 

        (3)   "voluntary
Employee contributions made pursuant to Section 4.13 and any qualified non-elective contributions or elective deferrals taken into account
pursuant to Section 4.7(c)" for "Employer contributions"; and 

        (4)   "that
portion of the Participant's account balance attributable to voluntary Employee contributions made pursuant to Section 4.13, and any qualified
non-elective contributions or elective deferrals taken into account pursuant to Section 4.7(c)" for "account balance." 

        In
lieu of the "fractional method" described above, a "safe harbor method" may be used to calculate the allocable Income for the "gap period". Under such "safe harbor method", allocable
Income for the "gap period" shall be deemed to equal ten percent (10%) of the Income allocable to "excess amounts" for the "applicable computation period" multiplied by the number of calendar months
in the "gap period". For purposes of determining the number of calendar months in the "gap period", a distribution occurring on or before the fifteenth day of the month shall be treated as having been
made on the last day of the preceding month and a distribution occurring after such fifteenth day shall be treated as having been made on the first day of the next subsequent month. 

        Income
allocable to any distribution of Excess Deferred Compensation on or before the last day of the taxable year of the Participant shall be calculated from the first day of the
taxable year of the Participant to the date on which the distribution is made pursuant to either the "fractional method" or the "safe harbor method." 

        The
Income allocable to Excess Aggregate Contributions resulting from the recharacterization of Elective contributions shall be determined and distributed as if such recharacterized
Elective Contributions had been distributed as Excess Contributions. 

        Notwithstanding
the above, for "applicable computation periods" which began in 1987, Income during the "gap period" shall not be taken into account. 

9

 

        1.34    "Investment
Manager" means an entity that (a) has the power to manage, acquire, or dispose of Plan assets and (b) acknowledges fiduciary responsibility to
the Plan in writing. Such entity must be a person, firm, or corporation registered as an investment adviser under the Investment Advisers Act of 1940, a bank, or an insurance company. 

        1.35    "Key
Employee" means an Employee as defined in Code Section 416(i)(1) and the Regulations thereunder. For Plan Years beginning after December 31, 2001,
"Key Employee" means any Employee or former Employee (including any deceased Employee) who at any time during the Plan Year that includes the "Determination Date" was an officer of the Employer having
annual compensation greater than $130,000 (as adjusted under Code Section 416(i)(1) for Plan Years beginning after December 31, 2002), a 5-percent owner of the Employer or a
1-percent owner of the Employer having annual compensation of more than $150,000. As used in this definition, "annual compensation" means compensation within the meaning of Code
Section 415(c)(3). For Plan Years beginning prior to December 31, 2001, "Key Employee" generally means any Employee or former Employee (as well as each of his Beneficiaries) is
considered a Key Employee if he, at any time during the Plan Year that contains the "Determination Date" or any of the preceding four (4) Plan Years, has been included in one of the following
categories: 

        (a)   an
officer of the Employer (as that term is defined within the meaning of the Regulations under Code Section 416) having annual "415 Compensation" greater than
50 percent of the amount in effect under Code Section 415(b)(1)(A) for any such Plan Year. 

        (b)   one
of the ten employees having annual "415 Compensation" from the Employer for a Plan Year greater that the dollar limitation in effect under Code
Section 415(c)(1)(A) for the calendar year in
which such Plan Year ends and owning (or considered as owning within the meaning of Code Section 318) both more than one-half percent interest and the largest interests in the
Employer. 

        (c)   a
"five percent owner" of the Employer. "Five percent owner" means any person who owns (or is considered as owning within the meaning of Code Section 318) more
than five percent (5%) of the outstanding stock of the Employer or stock possessing more than five percent (5%) of the total combined voting power of all stock of the Employer or, in the case of an
unincorporated business, any person who owns more than five percent (5%) of the capital or profits interest in the Employer. In determining percentage ownership hereunder, employers that would
otherwise be aggregated under Code Sections 414(b), (c), (m) and (o) shall be treated as separate employers. 

        (d)   a
"one percent owner" of the Employer having an annual "415 Compensation" from the Employer of more than $150,000. "One percent owner" means any person who owns (or is
considered as owning within the meaning of Code Section 318) more than one percent (1%) of the outstanding stock of the Employer or stock possessing more than one percent (1%) of the total
combined voting power of all stock of the Employer or, in the case of an unincorporated business, any person who owns more than one percent (1%) of the capital 

10

 

or
profits interest in the Employer. In determining percentage ownership hereunder, employers that would otherwise be aggregated under Code Sections 414(b), (c), (m) and (o) shall be
treated as separate employers. However, in determining whether an individual has "415 Compensation" of more than $150,000, "415 Compensation" from each employer required to be aggregated under Code
Sections 414(b), (c), (m) and (o) shall be taken into account. 

        For
purposes of this Section, the determination of "415 Compensation" for Plan Years beginning before January 1, 1998 shall be made by including amounts that would otherwise be
excluded from a Participant's gross income by reason of the application of Code Sections 125, 402(e)(3), 402(h)(1)(B) and, in the case of Employer contributions made pursuant to a salary reduction
agreement, by including amounts that would otherwise be excluded from a Participant's gross income by reason of the application of Code Section 403(b). 

        1.36    "Late
Retirement Date" means the first day of the month coinciding with or next following a Participant's actual Retirement Date after having reached his Normal
Retirement Date. 

        1.37    "Leased
Employee" means any person (other than an Employee of the recipient) who pursuant to an agreement between the recipient and any other person ("leasing
organization") has performed services for the recipient (or for the recipient and related persons determined in accordance with Code Section 414(n)(6) on a substantially full time basis for a
period of at least one year, and such services are performed under primary direction or control by the recipient employer. 

        1.38    "Non-Elective
Contribution" means the Employer's contributions to the Plan excluding, however, contributions made pursuant to the Participant's deferral
election provided for in Section 4.2, matching contributions made pursuant to Section 4.1(b), Employer NHCE Contributions made pursuant to Section 4.1(d), and any Qualified
Non-Elective Contribution. Any such contributions deemed to be Employer Non-Elective Contributions shall be subject to the requirements of Sections 4.2(b) and 4.2(c),
substituting "Participant's Account" for "Participant's Elective Account" wherever it appears. 

        1.39    "Non-Highly
Compensated Participant" means any Participant who is neither a Highly Compensated Employee nor a Family Member. 

        1.40    "Non-Key
Employee" means any Employee or former Employee (and his Beneficiaries) who is not a Key Employee. 

        1.41    "Normal
Retirement Date" means the first day of the month coinciding with or next following the Participant's Normal Retirement Age (65th birthday). A Participant shall
be fully Vested in his Participant's Combined Account at all times. 

11

  

        1.42    "1-Year Break in Service" means the applicable computation period during which an Employee classified by the Employer as an Hourly Employee in accordance
with the Employer's normal payroll practices has not completed more than 500 Hours of Service with the Employer. Further, solely for the purpose of determining whether a Participant has incurred a
1-Year Break in Service, Hours of Service shall be recognized for "authorized leaves of absence" and "maternity and paternity leaves of absence." Years of Service and 1-Year
Breaks in Service shall be measured on the same computation period. 

        "Authorized
leave of absence" means an unpaid, temporary cessation from active employment with the Employer pursuant to an established nondiscriminatory policy, whether occasioned by
illness, military service, or any other reason. 

        A
"maternity or paternity leave of absence" means, for Plan Years beginning after December 31, 1984, an absence from work for any period by reason of the Employee's pregnancy,
birth of the Employee's child, placement of a child with the Employee in connection with the adoption of such child, or any absence for the purpose of caring for such child for a period immediately
following such birth or placement and, for Plan Years beginning after December 31, 1993, it shall also mean an absence from work pursuant to the Family and Medical Leave Act of 1993. For this
purpose, Hours of Service shall be credited for the computation period in which the absence from work begins, only if credit therefore is necessary to prevent the Employee from incurring a
1-Year Break in Service, or, in any other case, in the immediately following computation period. The Hours of Service credited for a "maternity or paternity leave of absence" shall be
those which would normally have been credited but for such absence, or, in any case in which the Administrator is unable to determine such hours normally credited, eight (8) Hours of Service
per day. The Total Hours of Service required to be credited for a "maternity or paternity leave of absence" shall not exceed 501. 

        For
purposes of determining the service credited to an Employee classified by the Employer as a Salaried Employee in accordance with its normal payroll practices, the term "1-Year Break
in Service" means a period of 365 or more consecutive days beginning on an Employee's separation from service date and ending on the date the Employee is again credited with an Hour of Service. For
purposes of this paragraph, "separation from service" means the earlier of the date on which the Employee quits, retires, is discharged or dies, or the first anniversary of the first date of absence
for any other reason. The separation from service date of an Employee who is absent from service beyond the first anniversary of the first day of absence by reason of a maternity or paternity leave of
absence is the second anniversary of the first day of such absence. The period between the first and second anniversaries of the first day of absence is neither a period of service nor a
1-Year Break in Service. 

        1.43    "Participant"
means any Eligible Employee who participates in the Plan as provided in Sections 3.2 and 3.3, and has not for any reason become ineligible to participate
further in the Plan. 

12

 

        1.44    "Participant's
Account" means the account established and maintained by the Administrator for each Participant with respect to his total interest in the Plan and Trust
resulting from the Employer's Non-Elective Contributions. 

        1.45    "Participant's
Combined Account" means the total aggregate amount of each Participant's Elective Account and Participant's Account. 

        1.46    "Participant's
Elective Account" means the account established and maintained by the Administrator for each Participant with respect to his total interest in the Plan
and Trust resulting from the Employer's Elective Contributions. A separate accounting shall be maintained with respect to that portion of the Participant's Elective Account attributable to Elective
Contributions pursuant to Section 4.2, Employer matching contributions pursuant to Section 4.1(b), Employer NHCE Contributions pursuant to Section 4.1(d), and any Employer
Qualified Non-Elective Contributions. 

        1.47    "Plan"
means this instrument, including all amendments thereto. 

        1.48    "Plan
Year" means the Plan's accounting year of twelve months commencing on January 1st of each year and ending the following December 31st. 

        1.49    "Qualified
Non-Elective Contribution" means the Employer's contributions to the Plan that are made pursuant to Section 4.6. Such contributions shall
be considered an Elective Contribution for the purposes of the Plan and used to satisfy the "Actual Deferral Percentage" tests. 

        In
addition, the Employer's contributions to the Plan that are made pursuant to Section 4.9(f) which are used to satisfy the "Actual Contribution Percentage" tests shall be
considered Qualified Non-Elective Contributions and be subject to the provisions of Sections 4.2(b) and 4.2(c). 

        1.50    "Regulation"
means the Income Tax Regulations as promulgated by the Secretary of the Treasury or his delegate, and as amended from time to time. 

        1.51    "Retired
Participant" means a person who has been a Participant, but who has become entitled to retirement benefits under the Plan. 

        1.52    "Retirement
Date" means the date as of which a Participant retires whether such retirement occurs on a Participant's Normal Retirement Date or Late Retirement Date (see
Section 6.1). 

        1.53    "Salaried
Employee" means any Employee who is classified by the Employer as a Salaried Employee in accordance with its normal payroll practices and who is paid on a
periodic 

13

 

basis
rather than as a multiple of the number of hours worked, except that the number of hours worked may be used to calculate overtime payments for non-exempt Salaried Employees. 

        1.54    "Shareholder-Employee"
means a Participant who owns more than five percent (5%) of the Employer's outstanding capital stock during any year in which the Employer
elected to be taxed as a Small Business Corporation under the applicable Code Section. 

        1.55    "Super
Top Heavy Plan" means a plan described in Section 2.2(b). 

        1.56    "Taxable
Wage Base" means, with respect to any Plan Year, the maximum amount of earnings at the beginning of such year which may be considered wages for such year under
Code Section 3121(a)(1). 

        1.57    "Terminated
Participant" means a person who has been a Participant, but whose employment has been terminated other than by death or retirement. 

        1.58    "Top
Heavy Plan" means a plan described in Section 2.2(a). 

        1.59    "Top
Heavy Plan Year" means a Plan Year commencing after December 31, 1983 during which the Plan is a Top Heavy Plan. 

        1.60    "Top
Paid Group" means the top 20 percent of Employees who performed services for the Employer during the applicable year, ranked according to the amount of "415
Compensation" (determined for this purpose in accordance with Section 1.28) received from the Employer during such year. All Affiliated Employers shall be taken into account as a single
employer, and Leased Employees within the meaning of Code Sections 414(n)(2) and 414(o)(2) shall be considered Employees unless such Leased Employees are covered by a plan described in Code
Section 414(n)(5) and are not covered in any qualified plan maintained by the Employer. Employees who are non-resident aliens and who received no earned income (within the meaning
of Code Section 911(d)(2) from the Employer constituting United States source income within the meaning of Code Section 861(a)(3) shall not be treated as Employees. Additionally, for the
purpose of determining the number of active Employees in any year, the following additional Employees shall also be excluded; however, such Employees shall still be considered for the purpose of
identifying the particular Employees in the Top Paid Group: 

        (a)   Employees
with less than six (6) months of Service; 

        (b)   Employees
who normally work less than 171/2 hours per week; 

        (c)   Employees
who normally work less than six (6) months during a year; and 

        (d)   Employees
who have not yet attained age 21. 

14

 

        In
addition, if 90 percent or more of the Employees of the Employer are covered under agreements the Secretary of Labor finds to be collective bargaining agreements between
Employee representatives and the Employer, and the Plan covers only Employees who are not covered under such agreements, then Employees covered by such agreements shall be excluded from both the total
number of active Employees as well as from the identification of particular Employees in the Top Paid Group. 

        The
foregoing exclusions set forth in this Section shall be applied on a uniform and consistent basis for all purposes for which the Code Section 414(q) definition is applicable. 

        1.61    "Trustee"
means each person or entity named as trustee herein or in any separate trust forming a part of this Plan, and any successors. 

        1.62    "Trust
Fund" means the assets of the Plan and Trust as the same shall exist from time to time. "Trust" means the Plan and Trust established pursuant to this instrument,
including all amendments thereto. 

        1.63    "Vested"
means the nonforfeitable portion of any account maintained on behalf of a Participant. 

        1.64    "Voluntary
Contribution Account" means the account established and maintained by the Administrator for each Participant with respect to his total interest in the Plan
resulting from the Participant's nondeductible voluntary contributions made pursuant to Section 4.12. 

        Amounts
recharacterized as voluntary Employee contributions pursuant to Section 4.6(a) shall remain subject to the limitations of Sections 4.2(b) and 4.2(c). Therefore, a separate
accounting shall be maintained with respect to that portion of the Voluntary Contribution Account attributable to voluntary Employee contributions made pursuant to Section 4.13. 

        1.65    "Year
of Service" means the computation period of twelve (12) consecutive months, herein set forth, during which an Employee has at least 1000 Hours of Service.
The computation period shall be the Plan Year. 

        Years
of Service with any Affiliated Employer shall be recognized only for the period that such entity is an Affiliated Employer and Year of Service for any period prior to such time
shall not be recognized unless otherwise specifically provided herein. 

        Prior
to January 1, 1999, for purposes of eligibility for participation, the initial computation period shall begin with the date on which the Employee first performs an Hour of
Service. The participation computation periods subsequent to the initial computation period shall be the Plan Years beginning with the first Plan Year which includes the anniversary of the date on
which the Employee first performed an Hour of Service. The participation computation period beginning after 5 consecutive 1-Year Breaks in Service shall be measured from the date on which 

15

 

an
Employee again performs an Hour of Service. For all other purposes, the computation period shall be the Plan Year. 

        1.66    "Section
401(a)(17) Limitation": In addition to other applicable limitations set forth in the Plan, and notwithstanding any other provision of the Plan to the contrary,
for Plan Years beginning on or after January 1, 1994, the annual compensation of each employee taken into account under the Plan shall not exceed the OBRA'93 annual compensation limit. The
OBRA'93 annual compensation limit is $150,000 (or such other amount prescribed under Code Section 401(a)(17)), as adjusted by the Commissioner for increases in the cost of living in accordance
with Code Section 401(a)(17)(B). The cost-of-living adjustment in effect for a calendar year applies to any period, not exceeding 12 months, over which
compensation is determined (determination period) beginning in such calendar year. If a determination period consists of fewer than 12 months, the OBRA'93 annual compensation limit will be
multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is 12. 

        If
compensation for any prior determination period is taken into account in determining an employee's benefits accruing in the current Plan Year, the compensation for that prior
determination period is subject to the OBRA'93 annual compensation limit in effect for that prior determination period. For this purpose, for determination periods beginning before the first day of
the first Plan Year beginning on or after January 1, 1994, the OBRA'93 annual compensation limit is $150,000. 

 
 
 
 
ARTICLE II

TOP HEAVY AND ADMINISTRATION  

 
 
           2.1    TOP HEAVY PLAN REQUIREMENTS
    

        For
any Top Heavy Plan Year, the Plan shall provide the special vesting requirements of Code Section 416(b) pursuant to Section 6.4 of the Plan and the special minimum
allocation requirements of Code Section 416(c) pursuant to Section 4.4 of the Plan. 

 
 

           2.2    DETERMINATION OF TOP HEAVY STATUS
    

        (a)   This
Plan shall be a Top Heavy Plan for any Plan Year commencing after December 31, 1983 in which, as of the Determination Date, (1) the Present Value of
Accrued Benefits of Key Employees and (2) the sum of the Aggregate Accounts of Key Employees under this Plan and all plans of an Aggregation Group, exceeds sixty percent (60%) of the Present
Value of Accrued Benefits and the Aggregate Accounts of all Key and Non-Key Employees under this Plan and all plans of an Aggregation Group. 

16

 

        If
any Participant is a Non-Key Employee for any Plan Year, but such Participant was a Key Employee for any prior Plan Year, such Participant's Present Value of Accrued
Benefit and/or Aggregate Account balance shall not be taken into account for purposes of determining whether this Plan is a Top Heavy or Super Top Heavy Plan (or whether any Aggregation Group which
includes this Plan is a Top Heavy Group). In addition, for Plan Years beginning after December 31, 1984, if a Participant or Former Participant has not performed any services for any Employer
maintaining the Plan at any time during the five year period ending on the Determination Date, any accrued benefit for such Participant or Former Participant shall not be taken into account for the
purposes of determining whether this Plan is a Top Heavy or Super Top Heavy Plan. For Plan Years beginning after December 31, 2000, the accrued benefits and accounts for any Participant or
former Participant who has not performed any services for any Employer maintaining the Plan during the one year period ending on the Determination Date shall not be taken into account for the purpose
of determining whether this Plan is a Top Heavy or Super Top Heavy Plan. 

        (b)   This
Plan Shall be a Super Top Heavy Plan for any Plan Year commencing after December 31, 1983 in which, as of the Determination Date, (1) the Present
Value of Accrued Benefits of Key Employees and (2) the sum of the Aggregate Accounts of Key Employees under this Plan and all plans of an Aggregation Group, exceeds ninety percent (90%) of
Present Value of Accrued Benefits and the Aggregate Accounts of all Key and Non-Key Employees under this Plan and all plans of an Aggregation Group. 

        (c)   Aggregate
Account: As used in this Section 2.2, a Participant's Aggregate Account as of the Determination Date is the sum of: 

        (1)   his
Participant's Combined Account balance as of the most recent valuation occurring within a twelve (12) month period ending on the Determination Date; 

        (2)   an
adjustment for any contributions due as of the Determination Date. Such adjustment shall be the amount of any contributions actually made after the valuation date but
due on or before the Determination Date, except for the first Plan Year when such adjustment shall also reflect the amount
of any contributions made after the Determination Date that are allocated as of a date in that first Plan Year; 

        (3)   any
Plan distributions made within the one-year period ending on the Determination Date; provided that in the case of a distribution from the Plan made for a
reason other than separation from service, death or disability, this provision shall be applied by substituting "five-year period" for "one-year period". However, in the case
of distributions made after the valuation date and prior to 

17

 

the
Determination Date, such distributions are not included as distributions for top heavy purposes to the extent that such distributions are already included in the Participant's Aggregate Account
balance as of the valuation date. Further, distributions from the Plan (including the cash value of life insurance policies) of a Participant's account balance because of death shall be treated as a
distribution for the purposes of this paragraph. 

        (4)   any
Employee contributions, whether voluntary or mandatory. However, amounts attributable to tax deductible qualified voluntary employee contributions shall not be
considered to be a part of the Participant's Aggregate Account balance. 

        (5)   with
respect to unrelated rollovers and plan-to-plan transfers (ones which are both initiated by the Employee and made from a plan maintained by
one employer to plan maintained by another employer), if this Plan provides the rollovers or plan-to-plan transfers, it shall always consider such rollovers or
plan-to-plan transfers as a distribution for the purposes of this Section. If this Plan is the plan accepting such rollovers or plan-to-plan transfers,
it shall not consider such rollovers or plan-to-plan transfers accepted after December 31, 1983 as part of the Participant's Aggregate Account balance. However,
rollovers or plan-to-plan transfers accepted prior to January 1, 1984 shall be considered as part of the Participant's Aggregate Account balance. 

        (6)   with
respect to related rollovers and plan-to-plan transfers (ones either not initiated by the Employee or made to a plan maintained by the same
employer), if this Plan provides the rollover or plan-to-plan transfer, it shall not be counted as a distribution for purposes of this Section. If this Plan is the plan
accepting such rollover or plan-to-plan transfer, it shall consider such rollover or plan-to-plan transfer as part of the Participant's Aggregate
Account balance, irrespective of the date on which such rollover or plan-to-plan transfer is accepted. 

        (7)   For
the purposes of determining whether two employers are to be treated as the same employer in (5) and (6) above, all employers aggregated under Code
Section 414(b), (c) (m) and (o) are treated as the same employer. 

        (d)   "Aggregation
Group" means either a Required Aggregation Group or a Permissive Aggregation Group as hereinafter determined. 

18

 

        (1)   Required
Aggregation Group: In determining a Required Aggregation Group hereunder, each plan of the Employer in which a Key Employee is a participant in the Plan Year
containing the Determination Date or any of the four preceding Plan Years, and each other plan of the Employer which enables any plan in which a Key Employee participates to meet the requirements of
Code Sections 401(a)(4) or 410, will be required to be aggregated. Such group shall be known as a Required Aggregation Group. 

In
the case of a Required Aggregation Group, each plan in the group will be considered a Top Heavy Plan if the Required Aggregation Group is a Top Heavy Group. No plan in the Required Aggregation
Group will be considered a Top Heavy Plan if the Required Aggregation Group is not a Top Heavy Group. 

        (2)   Permissive
Aggregation Group: The Employer may also include any other plan not required to be included in the Required Aggregation Group, provided the resulting group,
taken as a whole, would continue to satisfy the provisions of Code Sections 401(a)(4) and 410. Such group shall be known as a Permissive Aggregation Group. 

In
the case of a Permissive Aggregation Group, only a plan that is part of the Required Aggregation Group will be considered a Top Heavy Plan if the Permissive Aggregation Group is a Top Heavy Group.
No plan in the Permissive Aggregation Group will be considered a Top Heavy Plan if the Permissive Aggregation Group is not a Top Heavy Group. 

        (3)   Only
those plans of the Employer in which the Determination Dates fall within the same calendar year shall be aggregated in order to determine whether such plans are Top
Heavy Plans. 

        (4)   An
Aggregation Group shall include any terminated plan of the Employer if it was maintained within the last five (5) years ending on the Determination Date. 

        (e)   "Determination
Date" means (a) the last day of the preceding Plan Year, or (b) in the case of the first Plan Year, the last day of such Plan Year. 

        (f)    Present
Value of Accrued Benefit: In the case of a defined benefit plan, the Present Value of Accrued Benefit for a Participant other than a Key Employee, shall be 

19

 

as
determined using the single accrual method used for all plans of the Employer and Affiliated Employers, or if no such single method exists, using a method which results in benefits accruing not
more rapidly than the slowest accrual rate permitted under Code Section 411(b)(1)(C). The determination of the Present Value of Accrued Benefit shall be determined as of the most recent
valuation date that falls within or ends with the 12-month period ending on the Determination Date except as provided in Code Section 416 and the Regulations thereunder for the
first and second plan years of a defined benefit plan. 

        (g)   "Top
Heavy Group" means an Aggregation Group in which, as of the Determination Date, the sum of: 

        (1)   the
Present Value of Accrued Benefits of Key Employees under all defined benefit plans included in the group, and 

        (2)   the
Aggregate Accounts of Key Employees under all defined contribution plans included in the group, exceeds sixty percent (60%) of a similar sum determined for all
Participants. 

 
 

           2.3    POWERS AND RESPONSIBILITIES OF THE EMPLOYER
    

        (a)   The
Employer shall be empowered to appoint and remove the Trustees and the Administrator from time to time as it deems necessary for the proper administration of the
Plan to assure that the Plan is being operated for the exclusive benefit of the Participants and their Beneficiaries in accordance with the terms of the Plan, the Code, and the Act. 

        (b)   The
Employer shall establish a "funding policy and method"; i.e, it shall determine whether the Plan has a short run need for liquidity (e.g., to pay benefits) or
whether liquidity is a long run goal and investment growth (and stability of same) is a more current need, or shall appoint a qualified person to do so. The Employer or its delegate shall communicate
such needs and goals to the Trustees, who shall coordinate such Plan needs with its investment policy. The communication of such a "funding policy and method" shall not, however, constitute a
directive to the Trustees as to investment of the Trust Funds. Such "funding policy and method" shall be consistent with the objectives of this Plan and with the requirements of Title I of the Act. 

        (c)   The
Employer shall periodically review the performance of any Fiduciary or other person to whom duties have been delegated or allocated by it under the provisions of
this Plan or pursuant to procedures established hereunder. This requirement may be satisfied by formal periodic review by the Employer or by a qualified person specifically designated by the Employer,
through day-to-day conduct and evaluation, or through other appropriate ways. 

20

 

 
 

           2.4    DESIGNATION OF ADMINISTRATIVE AUTHORITY
    

        The
Employer shall appoint one or more Administrators. Any person, including, but not limited to, the Employees of the Employer, shall be eligible to serve as an Administrator. Any
person so appointed shall signify his acceptance by filing written acceptance with the Employer. An administrator may resign by delivering his written resignation to the Employer or be removed by the
Employer by delivery of written notice of removal, to take effect at a date specified therein, or upon delivery to the Administrator if no date is specified. 

        The
Employer, upon the resignation or removal of an Administrator, shall promptly designate in writing a successor to this position. If the Employer does not appoint an Administrator,
the Employer will function as the Administrator. 

 
 

          2.5    ALLOCATION AND DELEGATION OF RESPONSIBILITIES
    

        If
more than one person is appointed as Administrator, the responsibilities of each Administrator may be specified by the Employer and accepted in writing by each Administrator. In the
event that no such delegation is made by the Employer, the Administrators may allocate the responsibilities among themselves, in which event the Administrators shall notify the Employer and the
Trustees in writing of
such action and specify the responsibilities of each Administrator. The Trustees thereafter shall accept and rely upon any documents executed by the appropriate Administrator until such time as the
Employer or the Administrators file with the Trustees a written revocation of such designation. 

 
 

           2.6    POWERS AND DUTIES OF THE ADMINISTRATOR
    

        The
primary responsibility of the Administrator is to administer the Plan for the exclusive benefit of the Participants and their Beneficiaries, subject to the specific terms of the
Plan. The Administrator shall administer the Plan in accordance with its terms and shall have the power and discretion to construe the terms of the Plan and to determine all questions arising in
connection with the administration, interpretation, and application of the Plan. Any such determination by the Administrator shall be conclusive and binding upon all persons. The Administrator may
establish procedures, correct any defect, supply any information, or reconcile any inconsistency in such manner and to such extent as shall be deemed necessary or advisable to carry out the purpose of
the Plan; provided, however, that any procedure, discretionary act, interpretation or construction shall be done in a nondiscriminatory manner based upon uniform principles consistently applied and
shall be consistent with the intent that the Plan shall continue to be deemed a qualified plan under the terms of Code Section 401(a), and shall comply with the terms of the Act and all
regulations issued pursuant thereto. The Administrator shall have all powers necessary or appropriate to accomplish his duties under this Plan. 

        The
Administrator shall be charged with the duties of the general administration of the Plan, including, but not limited to, the following: 

21

 

        (a)   the
discretion to determine all questions relating to the eligibility of Employees to participate or remain a Participant hereunder and to receive benefits under the
Plan; 

        (b)   to
compute, certify, and direct the Trustees with respect to the amount and the kind of benefits to which any Participant shall be entitled hereunder; 

        (c)   to
authorize and direct the Trustees with respect to all nondiscretionary or otherwise directed disbursements from the Trust; 

        (d)   to
maintain all necessary records for the administration of the Plan; 

        (e)   to
interpret the provisions of the Plan and to make and publish such rules for regulation of the Plan as are consistent with the terms hereof, subject to the final
determination of the Trustees; 

        (f)    to
determine the size and type of any Contract to be purchased from any insurer, and to designate the insurer from which such Contract shall be purchased; 

        (g)   to
compute and certify to the Employer and to the Trustees from time to time the sums of money necessary or desirable to be contributed to the Plan; 

        (h)   to
consult with the Employer and the Trustees regarding the short and long-term liquidity needs of the Plan in order that the Trustees can exercise any
investment discretion in a manner designed to accomplish specific objectives; 

        (i)    to
prepare and implement a procedure to notify Eligible Employees that they may elect to have a portion of their Compensation deferred or paid to them in cash; 

        (j)    to
assist any Participant regarding his rights, benefits, or elections available under the Plan. 

 
 

          2.7    RECORDS AND REPORTS
    

        The
Administrator shall keep a record of all actions taken and shall keep all other books of account, records, and other data that may be necessary for proper administration of the Plan
and shall be responsible for supplying all information and reports to the Internal Revenue Service, Department of Labor, Participants, Beneficiaries and others as required by law. 

 
 

          2.8    APPOINTMENT OF ADVISERS
    

22

 

        The
Administrator, or the Trustees with the consent of the Administrator, may appoint counsel, specialists, advisers, actuaries, and other persons as the Administrator or the Trustees
deems necessary or desirable in connection with the administration of this Plan. 

 
 

           2.9    INFORMATION FROM EMPLOYER
    

        To
enable the Administrator to perform his functions, the Employer shall supply full and timely information to the Administrator on all matters relating to the Compensation of all
Participants, their Hours of Service, their Years of Service, their retirement, death, disability, or termination of employment, and such other pertinent facts as the Administrator may require; and
the Administrator shall advise the Trustees of such of the foregoing facts as may be pertinent to the Trustees' duties under the Plan. The Administrator may rely upon such information as is supplied
by the Employer and shall have no duty or responsibility to verify such information. 

 
 

           2.10    PAYMENT OF EXPENSES
    

        All
expenses of administration may be paid out of the Trust Fund unless paid by the Employer. Such expenses shall include any expenses incident to the functioning of the Administrator,
including, but not limited to, fees of accountants, counsel, and other specialists and their agents, and other costs of administering the Plan. Until paid, the expenses shall constitute a liability of
the Trust Fund. However, the Employer may reimburse the Trust Fund for any administration expense incurred. Any administration expense paid to the Trust Fund as a reimbursement shall not be considered
an Employer contribution. 

 
 

           2.11    MAJORITY ACTIONS
    

        Except
where there has been an allocation and delegation of administrative authority pursuant to Section 2.5, if there shall be more than one Administrator, they shall act by a
majority of their number, but may authorize one or more of them to sign all papers on their behalf. 

 
 

           2.12    CLAIMS PROCEDURE
    

        Claims
for benefits under the Plan may be filed with the Administrator on forms supplied by the Employer. Written notice of the disposition of a claim shall be furnished to the claimant
within 90 days after the application is filed. In the event the claim is denied, the reasons for the denial shall be specifically set forth in the notice in language calculated to be understood
by the claimant, pertinent provisions of the Plan shall be cited, and, where appropriate, an explanation as to how the claimant can perfect the claim will be provided. In addition, the claimant shall
be furnished with an explanation of the Plan's claims review procedure. There may be times when this 90-day period may be extended due to special circumstances, provided the delay and the
special circumstances occasioning it are communicated to the claimant in writing within the 90-day period. 

23

  

 
 
           2.13    CLAIMS REVIEW PROCEDURE
    

        Any
Employee, former Employee, or Beneficiary of either, who has been denied a benefit by a decision of the Administrator pursuant to Section 2.12 shall be entitled to request the
Administrator to give further consideration to his claim by filing with the Administrator (on a form which may be obtained from the Administrator) a request for a hearing. Such request, together with
a written statement of the reasons why the claimant believes his claim should be allowed, shall be filed with the Administrator no later than 60 days after receipt of the written notification
provided for in Section 2.12. The Administrator shall then conduct a hearing within the next 60 days, at which the claimant may be represented by an attorney or any other representative
of his choosing and at which the claimant shall have an opportunity to submit written and oral evidence and arguments in support of his claim. At the hearing (or prior thereto upon 5 business days
written notice to the Administrator) the claimant or his representative shall have an opportunity to review all documents in the possession of the Administrator which are pertinent to the claim at
issue and its disallowance. Either the claimant or the Administrator may cause a court reporter to attend the hearing and record the proceedings. In such event, a complete written transcript of the
proceedings shall be furnished to both parties by the court reporter. The full expense of any such court reporter and such transcripts shall be borne by the party causing the court reporter to attend
the hearing. A final decision as to the allowance of the claim shall be made by the Administrator within 60 days of receipt of the appeal (unless there has been an extension of 60 days
due to special circumstances, provided the delay and the special circumstances occasioning it are communicated to the claimant within the 60-day period). Such communication shall be
written in a manner calculated to be understood by the claimant and shall include specific reasons for the decision and specific references to the pertinent Plan provisions on which the decision is
based. The decision of the Administrator shall be made in its sole discretion based on the Plan documents and is final and binding. 

 
 
 
 
ARTICLE III

ELIGIBILITY  

 
 
          3.1    CONDITIONS OF ELIGIBILITY
    

        (a)   Effective
January 1, 1999, any Eligible Employee who is employed on or prior to the last day of the previous Plan Year (including December 31, 1998) shall
be eligible to participate hereunder as of the first day of the Plan Year (or, if the Eligible Employee is not employed on the first day of the Plan Year, as of the date of rehire). Notwithstanding
the foregoing, any Eligible Employee who was a Participant in the Plan immediately prior to the effective date of this amendment and restatement shall continue to participate in the Plan on the
effective date. Notwithstanding the foregoing, any Eligible Employee who was a Participant in the Plan on September 29, 2000, shall continue to participate in the Plan as long as he or she
remains an Eligible Employee. 

24

 

        (b)   Prior
to January 1, 1999, the following provisions were effective: Any Eligible Employee classified by the Employer as a Salaried Employee in accordance with its
normal payroll practices and who has completed six (6) Months of Service as described below and any Eligible Employee classified by the Employer as an Hourly Employee in accordance with its
normal payroll practices and who has completed one (1) Year of Service shall be eligible to participate hereunder as of the date he has satisfied such requirements. Notwithstanding the
foregoing, any Eligible Employee who was a Participant in the Plan immediately prior to the effective date of this amendment and restatement shall continue to participate in the Plan on the effective
date. 

        For
purposes of this Section 3.1, an Eligible Employee classified by the Employer as a Salaried Employee in accordance with its normal payroll practices will be deemed to have
completed six (6) Months of Service if he is in the employ of the Employer at any time six (6) months after his employment commencement date. Employment commencement date shall be the
first day that he is entitled to be credited with an Hour of Service for the performance of duty. 

        In
the case of the reclassification of a Participant from an Hourly Employee to a Salaried Employee or a Salaried Employee to an Hourly Employee, such Participant shall continue to be a
Participant under the Plan. 

        In
the case of the reclassification of an Eligible Employee who is not yet a Participant, the following rules shall apply: 

          (i)  An
Hourly Employee who is reclassified as a Salaried Employee shall receive credit for purposes of eligibility hereunder consisting of: 

        (A)  the
number of years equal to his Years of Service prior to the "computation period" in which such reclassification occurs and 

        (B)  the
greater of (1) the period of service for which he would have been credited had he been a Salaried Employee for the entire "computation period" in which his
reclassification occurs or (2) the service taken into account as an Hourly Employee as of the date of reclassification. 

         (ii)  A
Salaried Employee who is reclassified as an Hourly Employee shall receive credit for purposes of eligibility hereunder consisting of: 

        (A)  the
number of Years of Service equal to the number of one year periods of service credited to the Eligible Employee as of the date of reclassification; and 

        (B)  credit,
in the "computation period" which includes the date of reclassification, for the number of Hours of Service defined under Section 

25

 

1.30
for which he would have been credited had he been an Hourly Employee during such "computation period". 

        For
purposes of this Section 3.1, the "computation period" shall be the participation computation period described in Section 1.65. 

 
 

          3.2    APPLICATION FOR PARTICIPATION
    

        In
order to become a Participant hereunder, each Eligible Employee shall make application to the Employer for participation in the Plan and agree to the terms hereof. Upon the acceptance
of any benefits under this Plan, such Employee shall automatically be deemed to have made application and shall be bound by the terms and conditions of the Plan and all amendments hereto. 

 
 

          3.3    EFFECTIVE DATE OF PARTICIPATION
    

        (a)   Effective
January 1, 1999, an Eligible Employee shall become a Participant effective as of the first day of the Plan Year immediately following the date on which
such Employee meets the eligibility requirements of Section 3.1, provided said Employee is still employed as of such date. 

        (b)   An
Eligible Employee who, at any time, has been eligible to be a Participant and who terminates employment or ceases to be an Eligible Employee and is later reemployed
by the Employer on or after January 1, 1999, or again becomes an Eligible Employee on or after January 1, 1999, as the case may be, shall immediately become a Participant effective upon
reemployment or reclassification. 

        (c)   An
ineligible Employee who would otherwise be an Eligible Employee except for his classification and who becomes classified as an Eligible Employee on or after
January 1, 1999 shall immediately become a Participant effective upon such reclassification. 

        (d)   Prior
to January 1, 1999, the following provisions were effective: 

          (i)  An
Eligible Employee classified by the Employer as a Salaried Employee in accordance with its normal payroll practices shall become a Participant effective as of the
first day of the Plan Year immediately following the date on which such Employee meets the eligibility requirements of Section 3.1, provided said Employee is still employed as of such date. Any
Eligible Employee who is classified by the Employer as an Hourly Employee in accordance with its normal payroll practices shall become a Participant effective as of the earlier of the first day of the
Plan Year or the first day of the seventh month of such Plan Year coincident with or immediately following the date on which such Employee meets the eligibility requirements of Section 3.1,
provided said Employee is still employed as of such date. 

26

 

         (ii)  An
Eligible Employee who, at any time, has been eligible to be a Participant and who terminates employment or ceases to be an Eligible Employee and is later reemployed
by the Employer or again becomes an Eligible Employee, as the case may be, shall immediately be eligible to become a Participant upon reemployment or reclassification, unless the number of consecutive
1-Year Breaks in Service the Eligible Employee incurs exceeds the greater of (i) five or (ii) the aggregate number of periods of service or Years of Service, as applicable,
credited to such Eligible Employee prior to such break in service. If an Eligible Employee incurs the number of
consecutive 1-Year Breaks in Service described in the previous sentence, such Eligible Employee must again satisfy the requirements of Section 3.1 to become a Participant. 

        (iii)  If
an Eligible Employee classified as a Salaried Employee in accordance with the Employer's normal payroll practices who, at any time, has not been eligible to be a
Participant, incurs a 1-Year Break in Service but does not incur five consecutive 1-Year Breaks in Service, any periods of service credited to the Eligible Employee shall be
aggregated for purposes of satisfying the eligibility requirements of Section 3.1. 

        (iv)  The
participation computation period for Eligible Employees classified as Hourly Employees in accordance with the Employer's normal payroll practices shall be measured
in accordance with Section 1.65 hereof. 

 
 

           3.4    DETERMINATION OF ELIGIBILITY
    

        The
Administrator shall determine the eligibility of each Employee for participation in the Plan based upon information furnished by the Employer. Such determination shall be conclusive
and binding upon all persons, as long as the same is made pursuant to the Plan and the Act. Such determination shall be subject to review per Section 2.13. 

 
 

           3.5    TERMINATION OF ELIGIBILITY
    

        (a)   In
the event a Participant shall go from a classification of an Eligible Employee to an ineligible Employee, his interest in the Plan shall continue to share in the
earnings of the Trust Fund, until such time as his Aggregate Account shall be distributed pursuant to the terms of the Plan. 

        (b)   In
the event a Participant is no longer a member of an eligible class of Employees and becomes ineligible to participate, such Employee will participate immediately upon
returning to an eligible class of Employees. 

          (i)  Prior
to January 1, 1999, the following was effective: In the event a Participant is no longer a member of an eligible class of Employees and becomes ineligible
to participate but has not incurred a 1-Year Break in Service, such Employee will participate 

27

 

immediately
upon returning to an eligible class of Employees. If such Participant incurs a 1-Year Break in Service, eligibility will be determined under the break in service rules of the
Plan. 

        (c)   In
the event an Employee who is not a member of an eligible class of Employees becomes a member of an eligible class, such Employee will participate immediately if such
Employee has satisfied the minimum age and service requirements and would have otherwise previously become a Participant. 

 
 

           3.6    OMISSION OF ELIGIBLE EMPLOYEE
    

        If,
in any Plan Year, any Employee who should be included as a Participant in the Plan is erroneously omitted and discovery of such omission is not made until after a contribution by his
Employer for the year has been made, the Employer shall make a subsequent contribution with respect to the omitted Employee in the amount which the said Employer would have contributed with respect to
him had he not been omitted. Such contribution shall be made regardless of whether or not it is deductible in whole or in part in any taxable year under applicable provisions of the Code. 

 
 

           3.7    INCLUSION OF INELIGIBLE EMPLOYEE
    

        If,
in any Plan Year, any person who should not have been included as a Participant in the Plan is erroneously included and discovery of such incorrect inclusion is not made until after
a contribution for the year has been made, the Employer shall not be entitled to recover the contribution made with respect to the ineligible person regardless of whether or not a deduction is
allowable with respect to such contribution. 

        In
such event, the amount contributed with respect to the ineligible person shall constitute a Forfeiture (except for Deferred Compensation which shall be distributed to the ineligible
person) for the Plan Year in which the discovery is made. 

 
 

           3.8    QUALIFIED MILITARY SERVICE PROVISIONS
    

        Notwithstanding
any provision of this Plan to the contrary, effective as of December 12, 1994, contributions, benefits and service credit with respect to qualified military
service will be provided in accordance with Code Section 414(u). 

 
 
 
 
ARTICLE IV

CONTRIBUTION AND ALLOCATION  

 
 
          4.1    FORMULA FOR DETERMINING EMPLOYER'S CONTRIBUTION
    

        For
each Plan Year, the Employer shall contribute to the Plan: 

28

 

        (a)   The
amount of the total salary reduction elections of all Participants made pursuant to Section 4.2(a), which amount shall be deemed an Employer's Elective
Contribution. 

        (b)   On
behalf of each Participant who is eligible to share in matching contributions for the Plan Year, as set forth in Section 4.4, a discretionary matching
contribution equal to a percentage of each such Participant's Deferred Compensation, the exact percentage to be determined each year by the Employer, which amount shall be deemed an Employer's
Elective Contribution. Except, however, in applying the matching percentage specified above, only salary reductions up to $500 shall be considered. 

        Notwithstanding
anything contained herein to the contrary, for each Plan Year beginning after December 31, 1997, the Employer's discretionary matching contribution for each
eligible Participant shall be limited to the lesser of: (1) $500 or (2) a maximum percentage of such Participant's
Compensation for such Plan Year, to be determined prior to the commencement of each Plan Year by the Employer in its sole discretion. 

        (c)   A
discretionary amount, which amount shall be deemed an Employer's Non-Elective Contribution for allocation as a "Base Contribution" or an "Excess
Contribution". 

        (d)   For
Plan Years beginning on or after January 1, 1994, on behalf of each Non-Highly Compensated Participant who is eligible to share in the Employer's
NHCE Contribution for the Plan Year pursuant to Section 4.4(b)(4), a discretionary amount which amount shall be referred to as an "Employer's NHCE Contribution" and which shall be deemed an
Employer's Elective Contribution. 

        (e)   Notwithstanding
the foregoing, however, the Employer's contributions for any Plan Year shall not exceed the maximum amount allowable as a deduction to the Employer under
the provisions of Code Section 404. All contributions by the Employer shall be made in cash. 

        (f)    Except,
however, to the extent necessary to provide the top heavy minimum allocations, the Employer shall make a contribution even if it exceeds the amount which is
deductible under Code Section 404. 

 
 

           4.2    PARTICIPANT'S SALARY REDUCTION ELECTION
    

        (a)   Each
Participant may elect to defer a portion of his Compensation which would have been received in the Plan Year (except for the deferral election) by up to the maximum
amount which will not cause the Plan to violate the provisions of Sections 4.5(a) and 4.9, or cause the Plan to exceed the maximum amount allowable as a deduction to the Employer under Code
Section 404. A deferral election (or modification of an earlier election) may not be 

29

 

made
with respect to Compensation which is currently available on or before the date the Participant executed such election. 

        The
amount by which Compensation is reduced shall be that Participant's Deferred Compensation and be treated as an Employer Elective Contribution and allocated to that Participant's
Elective Account. 

        Notwithstanding
the foregoing, if a Participant terminates employment during a pay period, no salary deferrals will be allocated to the Participant's Elective Account with respect to
"Compensation" paid during such final pay period. 

        (b)   The
balance in each Participant's Elective Account shall be fully Vested at all times and shall not be subject to Forfeiture for any reason. 

        (c)   Amounts
held in the Participant's Elective Account may not be distributable earlier than: 

        (1)   a
Participant's termination of employment or death; 

        (2)   a
Participant's attainment of age 591/2; 

        (3)   the
termination of the Plan without the existence at the time of Plan termination of another defined contribution plan (other than an employee stock ownership plan as
defined in Code Section 4975(e)(7)) or the establishment of a successor defined contribution plan (other than an employee stock ownership plan as defined in Code Section 4975(e)(7)) by
the Employer or an Affiliated Employer within the period ending twelve months after distribution of all assets from the Plan maintained by the Employer; 

        (4)   the
date of disposition by the Employer to an entity that is not an Affiliated Employer of substantially all of the assets (within the meaning of Code
Section 409(d)(2) used in a trade or business of such corporation if such corporation continues to maintain this Plan after the disposition with respect to a Participant who continues
employment with the corporation acquiring such assets; or 

        (5)   the
date of disposition by the Employer or an Affiliated Employer who maintains the Plan of its interest in a subsidiary (within the meaning of Code
Section 409(d)(3)) to an entity which 

30

 

is
not an Affiliated Employer but only with respect to a Participant who continues employment with such subsidiary. 

        (d)   In
any Plan Year a Participant's Deferred Compensation made under this Plan and all other plans, contracts or arrangements of the Employer maintaining this Plan shall
not exceed, during any taxable year, the limitation imposed by Code Section 402(g), as in effect at the beginning of such taxable year. This dollar limitation shall be adjusted annually
pursuant to the method provided in Code Section 415(d) in accordance with Regulations. 

        (e)   In
the event a Participant has received a hardship distribution pursuant to Regulation 1.401(k)-1(d)(2)(iii)(B) from any other plan maintained by the
Employer, then such Participant shall not be permitted to elect to have Deferred Compensation contributed to the Plan on his behalf for a period of twelve (12) months following the receipt of
the distribution. Furthermore, the dollar limitation under Code Section 402(g) shall be reduced, with respect to the Participant's taxable year following the taxable year in which the hardship
distribution was made, by the amount of such Participant's Deferred Compensation, if any, pursuant to this Plan (and any other plan maintained by the Employer) for the taxable year of the hardship
distribution. 

        (f)    If
a Participant's Deferred Compensation under this Plan together with any elective deferrals (as defined in Regulation 1.402(g)-1(b)) under another
qualified cash or deferred arrangement (as defined in Code Section 401(k)), a simplified employee pension (as defined in Code Section 408(k)), a salary reduction arrangement (within the
meaning of Code Section 3121(a)(5)(D)), a deferred compensation plan under Code Section 457, or a trust described in Code Section 501(c)(18) cumulatively exceed the limitation
imposed by Code Section 402(g) (as adjusted annually in accordance with the method provided in Code Section 415(d) pursuant to Regulations) for such Participant's taxable year, the
Participant may, not later than March 1 following the close of his taxable year, notify the Administrator in writing of such excess and request that his Deferred Compensation under this Plan be
reduced by an amount specified by the Participant. In such event, the Administrator may direct the Trustees to distribute such excess amount (and any Income allocable to such excess amount) to the
Participant not later than the first April 15th following the close of the Participant's taxable year. If a Participant's Deferred Compensation made under this Plan for such Participant's
taxable year exceeds the limitations imposed by Code Section 402(g), then such excess will automatically be distributed to the Participant not later than the first April 15th following
the close of the Participant's taxable year. Any distribution of less than the entire amount of Excess Deferred Compensation and Income shall be treated as a pro rata distribution of Excess Deferred
Compensation and Income. The amount distributed shall not exceed the Participant's Deferred Compensation under the Plan for the taxable year. Any distribution on or before the last day of the
Participant's taxable year must satisfy each of the following conditions: 

        (1)   the
Participant shall designate the distribution as Excess Deferred Compensation; 

31

 

        (2)   the
distribution must be made after the date on which the Plan received the Excess Deferred Compensation; and 

        (3)   the
Plan must designate the distribution as a distribution of Excess Deferred Compensation. 

        (g)   Notwithstanding
Section 4.2(f) above, a Participant's Excess Deferred Compensation shall be reduced, but not below zero, by any distribution and/or
recharacterization of Excess Contributions pursuant to Section 4.6(a) for the Plan Year beginning with or within the taxable year of the Participant. 

        (h)   At
Normal Retirement Date, or such other date when the Participant shall be entitled to receive benefits, the fair market value of the Participant's Elective Account
shall be used to provide additional benefits to the Participant or his Beneficiary. 

        (i)    All
amounts allocated to a Participant's Elective Account shall be treated as a Directed Investment Account pursuant to Section 4.14. 

        (j)    Employer
Elective Contributions made pursuant to this Section may be segregated into a separate account for each Participant in a federally insured savings account,
certificate of deposit in a bank or savings and loan association, money market certificate, or other short-term debt security acceptable to the Trustees until such time as the allocations
pursuant to Section 4.4 have been made. 

        (k)   The
Employer and the Administrator shall implement the salary reduction elections provided for herein in accordance with the following: 

        (1)   A
Participant may commence making elective deferrals to the Plan only after first satisfying the eligibility and participation requirements specified in
Article III. However, the Participant must make his initial salary deferral election within a reasonable time, not to exceed thirty (30) days, after entering the Plan pursuant to
Section 3.3. If the Participant fails to make an initial salary deferral election within such time, then such Participant may thereafter make an election in accordance with the rules governing
modifications. The Participant shall make such an election by entering into a written salary reduction agreement with the Employer and filing such agreement with the Administrator. Such election shall
initially be effective beginning with the pay period following the acceptance of the salary reduction agreement by the Administrator, shall not have retroactive effect and shall remain in force until
revoked. 

32

 

        (2)   A
Participant may modify a prior election during the Plan Year and concurrently make a new election by filing a written notice with the Administrator within a reasonable
time before the pay period for which such modification is to be effective. However, modification to a salary deferral election shall only be permitted six (6) times in any Plan Year, or at such
other times as the Plan Administrator may prescribe in its sole discretion. Any modification shall not have retroactive effect and shall remain in force until revoked. 

        (3)   A
Participant may elect to prospectively revoke his salary reduction agreement in its entirety at any time during the Plan Year by providing the Administrator with
thirty (30) days written notice of such revocation (or upon such shorter notice period as may be acceptable to the Administrator). Such revocation shall become effective as of the beginning of
the first pay period coincident with or next following the expiration of the notice period. Furthermore, the termination of the Participant's employment, or the cessation of participation for any
reason, shall be deemed to revoke any salary reduction agreement then in effect, effective immediately. If such termination is effective during a Participant's pay period, no salary deferrals will be
allocated to the Participant's Elective Account with respect to "Compensation" paid during such pay period. Notwithstanding the foregoing, if a Participant becomes an Employee of Alliance Capital
Management L.P. in connection with the acquisition of the assets of Sanford C. Bernstein & Co., Inc. and Bernstein Technologies Inc. by Alliance Capital Management L.P., such
Employee's salary reduction agreement shall continue in full force and effect unless such Employee elects to change his salary reduction agreement. 

 
 

           4.3    TIME OF PAYMENT OF EMPLOYER'S CONTRIBUTION
    

        The
Employer shall generally pay to the Trustees its contribution to the Plan for each Plan Year within the time prescribed by law, including extensions of time, for the filing of the
Employer's federal income tax return for the Fiscal Year. 

        However,
Employer Elective Contributions accumulated through payroll deductions shall be paid to the Trustees as of the earliest date on which such contributions can reasonably be
segregated from the Employer's general assets, but in any event within the time period specified by law: generally, no later than the 15th business day of the month following the month in which such
amounts would otherwise have been payable to the Participant in cash. The provisions of Department of Labor regulations 2510.3-102 are incorporated herein by reference. Furthermore, any
additional Employer contributions which are allocable to the Participant's 

33

 

Elective
Account for a Plan Year shall be paid to the Plan no later than the twelve-month period immediately following the close of such Plan Year. 

 
 

           4.4    ALLOCATION OF CONTRIBUTION AND EARNINGS
    

        (a)   The
Administrator shall establish and maintain an account in the name of each Participant to which the Administrator shall credit as of each Anniversary Date all amounts
allocated to each such Participant as set forth herein. 

        (b)   The
Employer shall provide the Administrator with all information required by the Administrator to make a proper allocation of the Employer's contributions for each Plan
Year. Within a reasonable period of time after the date of receipt by the Administrator of such information, the Administrator shall allocate such contribution as follows: 

        (1)   With
respect to the Employer's Elective Contribution made pursuant to Section 4.1(a), to each Participant's Elective Account in an amount equal to each such
Participant's Deferred Compensation for the year. 

        (2)   With
respect to the Employer's Elective Contribution made pursuant to Section 4.1(b), to each Participant who is not paid commissions and whose annualized rate of
compensation, excluding overtime, bonuses and commissions, as of the first day of the Plan Year (or if not employed by the Employer on the first day of the Plan Year, as of the Participant's earliest
date of rehire during the Plan Year) is less than $50,000, and effective for Plan Years beginning on or after January 1, 1999, who is employed by an Employer on the last day of the Plan Year,
an allocation to the Participant's Elective Account in accordance with Section 4.1(b). 

        (3)   With
respect to the Employer's Non-Elective Contribution made pursuant to Section 4.1(c), in the following manner: 

          (i)  For
each Plan Year, 5.7% of the sum of each eligible Participant's total Compensation plus Excess Compensation shall be allocated to each eligible Participant's
Account. If the Employer does not contribute such amount for all eligible Participants, each eligible Participant will be allocated a share of the contribution in the same proportion that his total
Compensation plus his total Excess Compensation for the Plan Year bears to the total Compensation plus the total Excess Compensation of all eligible Participants for that Plan Year. 

34

  

         (ii)  The
balance of the Employer's Non-Elective Contribution over the amount allocated in 4.4(b)(3)(i) above, if any, shall be allocated to each eligible
Participant's Account in the same proportion that his total Compensation for the Plan Year bears to the total Compensation of all eligible Participants for such year. 

The
allocation of the Employer's Non-Elective Contribution to any Participant Account shall be limited to $6,000 in each Plan Year. For each Plan Year, only Participants who are actively
employed by an Employer on the last day of the Plan Year and who have completed a Year of Service during the Plan Year shall be eligible to share in the Employer's Non-Elective
Contribution. For each Plan Year, Participants who are Highly Compensated Employees and who are also shareholders of Sanford C. Bernstein Inc. shall not be eligible to share in the Employer's
Non-Elective Contribution. Effective January 1, 1999, any Eligible Employee described in Section 3.3(b) and (c) shall have all Hours of Service, that are credited
within the Plan Year for which the Employer's Non-Elective Contribution will be made, aggregated to determine a Year of Service. 

        (4)   With
respect to the Employer's Elective Contribution made pursuant to Section 4.1(d), to each Participant who for the Plan Year: (i) is a
Non-Highly Compensated Employee whose Compensation is less than $100,000, (ii) has attained age fifty (50) as of the end of the Plan Year, (iii) for Plan Years
beginning on or after January 1, 1997, has completed at least ten (10) "years of employment" as of the end of the Plan Year (where a Participant shall be credited with a "year of
employment" for each calendar year in which such Participant completes an Hour of Service with the Employer), and (iv) is employed with the Employer as an Eligible Employee as of the end of the
Plan Year, an allocation to the Participant's Elective Account as follows: 

Such
contribution shall be allocated as an equal dollar amount to each Participant who satisfies all of the eligibility requirements in Section 4.4(b)(4) above, except that the allocation to
any Participant shall not exceed the difference between: (1) the sum of all Employer and Employee Contributions made on behalf of such Participant other than the Employer NHCE Contribution; and
(2) the maximum allowable Contribution under Code Section 415. 

35

 

For
Plan Years beginning prior to January 1, 1997, Section 4.4(b)(4)(iii) above shall read: "has completed at least 120 'months of employment' as of the end of the Plan Year
(where a Participant shall be credited with a 'month of employment' for each month in which such Participant completes an Hour of Service with the Employer), and" 

        (c)   For
any Top Heavy Plan Year, Non-Key Employees not otherwise eligible to share in the allocation of contributions as provided above, shall receive the
minimum allocation provided for in Section 4.4(f), if eligible, pursuant to the provisions of Section 4.4(h). 

        (d)   Participants
who are not actively employed on the last day of the Plan Year, who have not completed a Year of Service during the Plan Year or who are shareholders of
Sanford C. Bernstein Inc. shall share in the allocation of contributions for that Plan Year only if otherwise eligible in accordance with this Section. 

        (e)   All
amounts allocated to the Participant's Account shall be treated as a Directed Investment Account pursuant to Section 4.14. As of each Anniversary Date or
other valuation date, before allocation of contributions, any earnings or losses (net appreciation or net depreciation) shall be allocated in accordance with Section 4.14. 

        Participants'
transfers from other qualified plans and voluntary contributions deposited in the general Trust Fund after a valuation date shall not share in any earnings and losses (net
appreciation or net depreciation) of the Trust Fund for such period. 

        Each
segregated account maintained on behalf of a Participant shall be credited or charged with its separate earnings and losses. 

        (f)    Minimum
Allocations Required for Top Heavy Plan Year: Notwithstanding the foregoing, for any Top Heavy Plan Year, the sum of the Employer's contributions allocated to
the Participant's Combined Account of each Non-Key Employee shall be equal to at least three percent (3%) of such Non-Key Employee's "415 Compensation" (reduced by
contributions and forfeitures, if any, allocated to each Non-Key Employee in any defined contribution plan included with this Plan in a Required Aggregation Group). However, if
(i) the sum of the Employer's contributions allocated to the Participant's Combined Account of each Key Employee for such Top Heavy Plan Year is less than three percent (3%) of each Key
Employee's "415 Compensation" and (ii) this Plan is not required to be included in an Aggregation Group to enable a defined benefit plan to meet the requirements of Code
Section 401(a)(4) or 410, the sum of the Employer's contributions allocated to the Participant's Combined Account of each Non-Key Employee shall be equal to the largest percentage
allocated to the Participant's Combined Account of any Key Employee. However, in determining whether a Non-Key Employee has received the required minimum allocation, such
Non-Key Employee's Deferred Compensation and matching contributions needed to satisfy the "Actual Deferral Percentage" tests pursuant to Section 4.5(a) or the "Actual Contribution
Percentage" test of 

36

 

Section 4.7(a)
shall not be taken into account. For Plan Years beginning after December 31, 2001, however, matching contributions shall be taken into account for purposes of satisfying
the requirements of code section 416(c)(2). Matching contributions used to satisfy these requirements shall be treated as matching contributions for the purposes of the "Actual Contribution
Percentage" of Section 4.7(a). 

        However,
no such minimum allocation shall be required in this Plan for any    Non-Key Employee who participates in another defined contribution plan subject to
Code Section 412 providing such benefits are included with this Plan in a Required Aggregation Group. 

        (g)   For
purposes of the minimum allocations set forth above, the percentage allocated to the Participant's Combined Account of any Key Employee shall be equal to the ratio
of the sum of the Employer's contributions allocated on behalf of such Key Employee divided by the "415 Compensation" for such Key Employee. 

        (h)   For
any Top Heavy Plan Year, the minimum allocations set forth above shall be allocated to the Participant's Combined Account of all Non-Key Employees who
are Participants and who are employed by the Employer on the last day of the Plan Year, including Non-Key Employees who have (1) failed to complete a Year of Service; and
(2) declined to make mandatory contributions (if required) or, in the case of a cash or deferred arrangement, elective contributions to the Plan. 

        (i)    For
the purposes of this Section, "415 Compensation" shall be limited to the amount as set forth in Section 1.66. 

        (j)    Notwithstanding
anything herein to the contrary, Participants who terminated employment for any reason during the Plan Year shall share in the salary reduction
contributions made by the Employer for the year of termination without regard to the Hours of Service credited. 

        (k)   Notwithstanding
anything to the contrary, if this is a Plan that would otherwise fail to meet the requirements of Code Sections 401(a)(26), 410(b)(1) or
410(b)(2)(A)(i) and the Regulations thereunder because Employer contributions have not been allocated to a sufficient number or percentage of Participants for a Plan Year, then the following
rules shall apply: 

        (1)   The
group of Participants eligible to share in the Employer's contribution for the Plan Year shall be expanded to include the minimum number of Non-Highly
Compensated Participants who would not otherwise be eligible, as are necessary to satisfy the applicable test specified above. The
specific Non-Highly Compensated Participants who shall become eligible under the terms of this paragraph shall be those who are actively 

37

 

employed
on the last day of the Plan Year and who, when compared to similarly situated Non-Highly Compensated Participants, have earned the lowest non-zero Compensation during
the Plan Year. 

        (2)   If,
after application of paragraph (1) above, the applicable test is still not satisfied, then the group of Participants eligible to share in the Employer's
contribution for the Plan Year shall be further expanded to include the minimum number of Non-Highly Compensated Participants who are not actively employed on the last day of the Plan Year
as are necessary to satisfy the applicable test. The specific Non-Highly Compensated Participants who shall become eligible under the terms of this paragraph shall be those
Non-Highly Compensated Participants who, when compared to similarly situated Non-Highly Compensated Participants, have earned the lowest non-zero Compensation
during the Plan Year. 

        (3)   If,
after application of paragraphs (1) and (2) above, the applicable test is still not satisfied, then the group of Participants eligible to share in the
Employer's contribution for the Plan Year shall be further expanded to include the minimum number of Highly Compensated Participants who would not otherwise be eligible, as are necessary to satisfy
the applicable test specified above. The specific Highly Compensated Participants who shall become eligible under the terms of this paragraph shall be those who are actively employed on the last day
of the Plan Year and who, when compared to similarly situated Highly Compensated Participants, have earned the lowest non-zero Compensation during the Plan Year. 

        (4)   If,
after application of paragraphs (1), (2) and (3) above, the applicable test is still not satisfied, then the group of Participants eligible to share in
the Employer's contribution for the Plan Year shall be further expanded to include the minimum number of Highly Compensated Participants who are not actively employed on the last day of the Plan Year
as are necessary to satisfy the applicable test. The specific Highly Compensated Participants who shall become eligible to share shall be those Highly Compensated Participants who, when compared to
similarly situated Highly Compensated Participants, have earned the lowest non-zero Compensation during the Plan Year. 

        (5)   Nothing
in this Section shall permit the reduction of a Participant's accrued benefit. Therefore, any amounts that have 

38

 

previously
been allocated to Participants may not be reallocated to satisfy these requirements. In such event, the Employer shall make an additional contribution equal to the amount such affected
Participants would have received had they been included in the allocations, even if it exceeds the amount which would be deductible under Code Section 404. Any adjustment to the allocations
pursuant to this paragraph shall be considered a retroactive amendment adopted by the last day of the Plan Year. 

 
 

           4.5    ACTUAL DEFERRAL PERCENTAGE TESTS
    

        (a)   Maximum
Annual Allocation: For each Plan Year beginning after December 31, 1986, the annual allocation derived from Employer Elective Contributions to a
Participant's Elective Account shall satisfy one of the following tests: 

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

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

However,
for Plan Years beginning after December 31, 1988, in order to prevent the multiple use of the alternative method described in (2) above and in Code Section 401(m)(9)(A),
any Highly Compensated Participant eligible to make elective deferrals pursuant to Section 4.2 and to make Employee contributions or to receive matching contributions under this Plan or under
any other plan maintained by the Employer or an Affiliated Employer shall have his actual contribution ratio reduced pursuant to Regulation 1.401(m)-2, the provisions of which are
incorporated herein by reference. 

        (b)   For
the purposes of this Section "Actual Deferral Percentage" means, with respect to the Highly Compensated Participant group and Non-Highly Compensated
Participant group for a Plan Year, the average of the ratios, calculated separately for each 

39

 

Participant
in such group, of the amount of Employer Elective Contributions allocated to each Participant's Elective Account for such Plan Year, to such Participant's "414(s) Compensation" for such
Plan Year. The actual deferral ratio for each Participant and the "Actual Deferral Percentage" for each group shall be calculated to the nearest one-hundredth of one percent for Plan Years
beginning after December 31, 1988. 

        Notwithstanding
the foregoing, the Employer elects under Code Section 401(k)(3)(A), that Subsections (a) and (b) be applied by using the Actual Deferral Percentage
for the Non-Highly Compensated Participant group for the current Plan Year rather than the preceding Plan Year. 

        (c)   Employer
Elective Contributions allocated to each Non-Highly Compensated Participant's Elective Account shall be reduced by Excess Deferred Compensation to
the extent such excess amounts are made under this Plan or any other plan maintained by the Employer. 

        (d)   For
the purposes of Sections 4.5(a) and 4.6, a Highly Compensated Participant and a Non-Highly Compensated Participant shall include any Employee eligible to
make a deferral election pursuant to Section 4.2, whether or not such deferral election was made or suspended pursuant to Section 4.2. 

        (e)   For
the purposes of this Section and Code Sections 401(a)(4), 410(b) and 401(k), if two or more plans which include cash or deferred arrangements are considered one plan
for the purposes of Code Section 401(a)(4) or 410(b) (other than Code Section 410(b)(2)(a)(ii) as in effect for Plan Years beginning after December 31, 1988), the cash or
deferred arrangements included in such plans shall be treated as one arrangement. 

        In
addition, two or more cash or deferred arrangements may be considered as a single arrangement for purposes of determining whether or not such arrangements satisfy Code Sections
401(a)(4), 410(b) and 401 (k). In such a case, the cash or deferred arrangements included in such plans and the plans including such arrangements shall be treated as one arrangement and as one plan
for purposes of this Section and Code Sections 401(a)(4), 410(b) and 401(k). For Plan Years beginning after December 31, 1989, plans may be aggregated under this paragraph (e) only if
they have the same plan year. 

        Notwithstanding
the above, an employee stock ownership plan described in Code Section 4975(e)(7) may not be combined with this Plan for purposes of determining whether the
employee stock ownership plan or this Plan satisfies this Section and Code Sections 401(a)(4), 410(b) and 401(k). 

        (f)    For
the purposes of this Section, if a Highly Compensated Participant is a Participant under two or more cash or deferred arrangements (other than a cash or deferred
arrangement which is part of an employee stock ownership plan as defined in Code Section 4975(e)(7)) of the Employer or an Affiliated Employer, all such cash or deferred 

40

 

arrangements
shall be treated as one cash or deferred arrangement for the purpose of determining the actual deferral ratio with respect to such Highly Compensated Participant. However, if the cash or
deferred arrangements have different Plan Years, this paragraph shall be applied by treating all cash or deferred arrangements ending with or within the same calendar year as a single arrangement. 

        (g)   If
the Employer determines, before the end of a Plan Year that the limitations of this Section may be exceeded for such Plan Year, the Employer may direct Highly
Compensated Employees to reduce their Deferred Compensation to the extent that such contributions may constitute Excess Contributions. 

 
 

           4.6    ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE TESTS
    

        In
the event that the initial allocations of the Employer's Elective Contributions made pursuant to Section 4.4 do not satisfy one of the tests set forth in Section 4.5(a),
the Administrator shall adjust Excess Contributions pursuant to the options set forth below: 

        (a)   On
or before the fifteenth day of the third month following the end of each Plan Year, the Highly Compensated Participant having the highest amount of Employer Elective
Contributions allocated to his Elective Account shall have his portion of Excess Contributions distributed to him and/or at his election recharacterized as a voluntary Employee contribution pursuant
to Section 4.13 until one of the tests set forth in Section 4.5(a) is satisfied, or until the amount of Employer Elective Contributions allocated to his Elective Account equals the
amount of Employer Elective Contributions allocated to the account of the Highly Compensated Participant having the second highest amount of Employer Elective Contributions allocated to his Elective
Account. 

        This
process shall continue until one of the tests set forth in Section 4.5(a) is satisfied. For each Highly Compensated Participant, the amount of Excess Contributions is equal
to the Elective Contributions made on behalf of such Highly Compensated Participant (determined prior to the application of this paragraph) minus the amount of Elective Contributions allocated on
behalf of such Highly Compensated Participant (determined after application of this paragraph). 

        However,
in determining the amount of Excess Contributions to be distributed and/or recharacterized with respect to an affected Highly Compensated Participant as determined herein, such
amount shall be
reduced by any Excess Deferred Compensation previously distributed to such affected Highly Compensated Participant for his taxable year ending with or within such Plan Year. 

        (1)   With
respect to the distribution of Excess Contributions pursuant to (a) above, such distribution: 

41

 

          (i)  may
be postponed but not later than the close of the Plan Year following the Plan Year to which they are allocable; 

         (ii)  shall
be made first from unmatched Deferred Compensation and, thereafter, simultaneously from Deferred Compensation which is matched and matching contributions which
relate to such Deferred Compensation; 

        (iii)  shall
be adjusted for Income; and 

        (iv)  shall
be designated by the Employer as a distribution of Excess Contributions (and Income). 

        (2)   With
respect to the recharacterization of Excess Contributions pursuant to (a) above, such recharacterized amounts: 

          (i)  shall
be deemed to have occurred on the date on which the last of those Highly Compensated Participants with Excess Contributions to be recharacterized is notified of
the recharacterization and the tax consequences of such recharacterization; 

         (ii)  shall
not exceed the amount of Deferred Compensation on behalf of any Highly Compensated Participant for any Plan Year; 

        (iii)  shall
be treated as voluntary Employee contributions for purposes of Code Section 401(a)(4) and Regulation 1.401(k)-1(b). However, for
purposes of Sections 2.2 and 4.4(f), recharacterized Excess Contributions continue to be treated as Employer contributions that are Deferred Compensation. Excess Contributions recharacterized as
voluntary Employee contributions
shall continue to be nonforfeitable and subject to the same distribution rules provided for in Section 4.2(c); 

        (iv)  are
not permitted if the amount recharacterized plus voluntary Employee contributions actually made by such Highly Compensated Participant, exceed the maximum amount of
voluntary Employee contributions (determined prior to application of Section 4.7(a)) that such Highly Compensated Participant is permitted to make under the Plan in the absence of
recharacterization; and 

42

 

         (v)  shall
be adjusted for Income. 

        (3)   Any
distribution and/or recharacterization of less than the entire amount of Excess Contributions shall be treated as a pro rata distribution and/or recharacterization
of Excess Contributions and Income. 

        (b)   Within
twelve (12) months after the end of the Plan Year, the Employer may make a special Qualified Non-Elective Contribution on behalf of eligible
Non-Highly Compensated Participants in an amount sufficient to satisfy one of the tests set forth in Section 4.5(a). Such contribution shall be allocated to the Participant Elective
Account of each Non-Highly Compensated Participant who has completed a Year of Service during the Plan Year and who is employed by the Employer on the last day of the Plan Year, in the
same proportion that each such Non-Highly Compensated Participant's Compensation for the year bears to the total Compensation of all such Non-Highly Compensated Participants. 

 
 

           4.7    ACTUAL CONTRIBUTION PERCENTAGE TESTS
    

        (a)   The
"Actual Contribution Percentage" for the Highly Compensated Participant group shall not exceed the greater of: 

        (1)   125 percent
of such percentage for the Non-Highly Compensated Participant group; or 

        (2)   the
lesser of 200 percent of such percentage for the Non-Highly Compensated Participant group, or such percentage for the Non-Highly
Compensated Participant group plus 2 percentage points. 

However,
to prevent the multiple use of the alternative method described in this paragraph and Code Section 401(m)(9)(A), any Highly Compensated Participant eligible to make elective deferrals
pursuant to Section 4.2 or any other cash or deferred arrangement maintained by the Employer or an Affiliated Employer and to make Employee contributions or to receive matching contributions
under this Plan or under any other plan maintained by the Employer or an Affiliated Employer shall have his actual contribution ratio reduced pursuant to Regulation 1.401(m)-2. 

The
provisions of Code Section 401(m) and Regulations 1.401(m)-1(b) and 1.401(m)-2 are incorporated herein by reference. 

        (b)   For
the purposes of this Section and Section 4.9, "Actual Contribution Percentage" for a Plan Year means, with respect to the Highly Compensated 

43

 

Participant
group and Non-Highly Compensated Participant group, the average of the ratios (calculated separately for each Participant in each group) of: 

        (1)   an
Actual Contribution Amount which shall be equal to the sum of voluntary Employee contributions made pursuant to Section 4.13 and Excess Contributions
recharacterized as voluntary Employee contributions pursuant to Section 4.6(a) on behalf of each such Participant for such Plan Year; to 

        (2)   the
Participant's "414(s) Compensation" for such Plan Year. 

Notwithstanding
the foregoing, the Employer elects under Code Section 401(m)(2)(A), that Subsections (a) and (b) be applied by using the Actual Contribution Percentage for the
Non-Highly Compensated Participant group for the current Plan Year rather than the preceding Plan Year. 

        (c)   For
purposes of determining the "Actual Contribution Percentage", the Actual Contribution Amount and the amount of Excess Aggregate Contributions pursuant to
Section 4.8(c), the Administrator may elect to take into account, with respect to Employees eligible to have voluntary Employee contributions pursuant to Section 4.13 allocated to their
accounts, all or a portion of Employer Matching Contributions made pursuant to Section 4.1(b), Elective Contributions (as defined in Section 1.13) and qualified non-elective
contributions (as defined in Code Section 401(m)(4)(C)) contributed to any plan maintained by the Employer. 

        (d)   Such
Elective Contributions and qualified non-elective contributions shall be treated as Employer matching contributions subject to
Regulation 1.401(m)-1(b)(2) which is incorporated herein by reference. However, the Plan Year must be the same as the plan year of the plan to which the Elective Contributions and
the qualified nonelective contributions are made. 

        (e)   For
purposes of this Section and Code Sections 401(a)(4), 410(b) and 401(m), if two or more plans of the Employer to which matching contributions, Employee
contributions, or both, are made are treated as one plan for purposes of Code Sections 401(a)(4) or 410(b) (other than the average benefits test under Code Section 410(b)(2)(A)(ii)), such plans
shall be treated as one plan. 

        In
addition, two or more plans of the Employer to which matching contributions, Employee contributions, or both, are made may be considered as a single plan for purposes of determining
whether or not such plans satisfy Code Sections 401(a)(4), 410(b) and 401(m). In such a case, the aggregated plans must satisfy this Section and Code Sections 401(a)(4), 410(b) and 401 (m) as
though such aggregated plans were a single plan. Plans may be aggregated under this paragraph (e) only if they have the same plan year. 

44

 

        Notwithstanding
the above, an employee stock ownership plan described in Code Section 4975(e)(7) may not be aggregated with this Plan for purposes of determining whether the
employee stock ownership plan or this Plan satisfies this Section and Code Sections 401(a)(4), 410(b) and 401(m). 

        (f)    If
a Highly Compensated Participant is a Participant under two or more plans (other than an employee stock ownership plan as defined in Code Section 4975(e)(7))
which are maintained by the Employer or an Affiliated Employer to which matching contributions, Employee contributions, or both, are made, all such contributions on behalf of such Highly Compensated
Participant shall be aggregated for purposes of determining such Highly Compensated Participant's actual contribution ratio. However, if the plans have different plan years, this paragraph shall be
applied by treating all plans ending with or within the same calendar year as a single plan. 

        (g)   For
purposes of Sections 4.7(a) and 4.9, a Highly Compensated Participant and Non-Highly Compensated Participant shall include any Employee eligible to have
voluntary Employee contributions pursuant to Section 4.13 (whether or not voluntary Employee contributions are made) allocated to his account for the Plan Year. 

        (h)   If
the Employer determines, before the end of a Plan Year, that the limitations of this Section may be exceeded for such Plan Year, the Employer may direct Highly
Compensated Employees to reduce their Voluntary Contributions to the extent that such contributions may constitute Excess Aggregate Contributions. 

 
 

          4.8    REPEAL OF MULTIPLE USE TEST
    

        The
multiple use test described in Regulation 1.401(m)-2 and Sections 4.5 and 4.7 of this Plan shall not apply for Plan Years beginning after December 31, 2001. 

 
 

           4.9    ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE TESTS
    

        (a)   In
the event that the "Actual Contribution Percentage" for the Highly Compensated Participant group exceeds the "Actual Contribution Percentage" for the
Non-Highly Compensated Participant group pursuant to Section 4.7(a), the Administrator (on or before the fifteenth day of the third month following the end of the Plan Year, but in
no event later than the close of the following Plan Year) shall direct the Trustee to distribute to the Highly Compensated Participant having the highest Actual Contribution Amount, his portion of
Excess Aggregate Contributions (and Income allocable to such contributions) until either one of the tests set forth in Section 4.7(a) is satisfied, or until his Actual Contribution Amount
equals the Actual Contribution Amount of the Highly Compensated Participant having the second Highest Actual Contribution Amount. This process shall continue until one of the tests set forth in
Section 4.7(a) is satisfied. 

45

  

        (b)   Any distribution of less than the entire amount of Excess Aggregate Contributions (and Income) shall be treated as a pro rata distribution of Excess Aggregate
Contributions and Income. Distribution of Excess Aggregate Contributions shall be designated by the Employer as a distribution of Excess Aggregate Contributions (and Income). 

        (c)   For
each Highly Compensated Participant, the amount of Excess Aggregate Contributions is equal to the total voluntary Employee contributions made pursuant to
Section 4.12, Excess Contributions recharacterized as voluntary Employee contributions pursuant to Section 4.6(a) and any qualified non-elective contributions or elective
deferrals taken into account pursuant to Section 4.7(c) made on behalf of the Highly Compensated Participant (determined prior to the application of this paragraph) minus the total amount of
such contributions (determined after application of this paragraph). 

        The
actual contribution ratio must be rounded to the nearest one-hundredth of one percent. In no case shall the amount of Excess Aggregate Contributions with respect to any
Highly Compensated Participant exceed the amount of voluntary Employee contributions made pursuant to Section 4.13, Excess Contributions recharacterized as voluntary Employee contributions
pursuant to Section 4.6(a) and any qualified non-elective contributions or elective deferrals taken into account pursuant to Section 4.7(c) on behalf of such Highly
Compensated Participant for such Plan Year. 

        (d)   The
determination of the amount of Excess Aggregate Contributions with respect to any Plan Year shall be made pursuant to Section 4.9(e) below. 

        (e)   The
determination of the amount of Excess Aggregate Contributions with respect to any Plan Year shall be made after first determining the Excess Contributions, if any,
to be treated as voluntary Employee contributions due to recharacterization for the Plan Year of any other qualified cash or deferred arrangement (as a defined in Code Section 401(k))
maintained by the Employer that ends with or within the Plan Year or which are treated as voluntary Employee contributions due to recharacterization pursuant to Section 4.6(a). 

        (f)    Notwithstanding
the above, within twelve (12) months after the end of the Plan Year, the Employer may make a special Qualified Non-Elective
Contribution on behalf of eligible Non-Highly Compensated Participants in an amount sufficient to satisfy one of the tests set forth in Section 4.7(a). Such contribution shall be
allocated to the Participant's Elective Account of each Non-Highly Compensated Participant, who has completed a Year of Service during the Plan Year and who is employed by the Employer on
the last day of the Plan Year, in the same proportion that each such Non-Highly Compensated Participant's Compensation for the year bears to the total Compensation of all such
Non-Highly Compensated Participants. A separate accounting shall be maintained for the purpose of excluding such contributions from the "Actual Deferral Percentage" tests pursuant to
Section 4.5(a). 

 
 

           4.10    MAXIMUM ANNUAL ADDITIONS
    

46

 

        (a)   Notwithstanding
the foregoing, the maximum "annual additions" credited to a Participant's accounts for any "limitation year" shall equal the lesser of:
(1) $30,000 (or, if greater, one-fourth of the dollar limitation in effect under Code Section 415(b)(1)(A)) or (2) twenty-five percent (25%) of the
Participant's "415 Compensation" for such "limitation year." 

        (b)   For
purposes of applying the limitations of Code Section 415, "annual additions" means the sum credited to a Participant's accounts for any "limitation year" of
(1) Employer contributions, (2) Employee contributions, (3) forfeitures, (4) amounts allocated, to an individual medical account, as defined in Code
Section 415(1)(2) which is part of a pension or annuity plan maintained by the Employer and (5) amounts derived from contributions paid or accrued, which are attributable to
post-retirement medical benefits allocated to the separate account of a key employee (as defined in Code Section 419A(d)(3)) under a welfare benefit plan (as defined in Code
Section 419(e)) maintained by the Employer. Except, however, the "415 Compensation" percentage limitation referred to in paragraph (a)(2) above shall not apply to: (1) any
contribution for medical benefits (within the meaning of Code Section 419A(f)(2) after separation from Service which is otherwise treated as an "annual addition"; or (2) any amount
otherwise treated as an "annual addition" under Code Section 415(l)(1). 

        (c)   For
purposes of applying the limitations of Code Section 415, the transfer of funds from one qualified plan to another is not an "annual addition". In addition,
the following are not Employee contributions for the purposes of Section 4.9(b)(2): (1) rollover contributions (as defined in Code Sections 402(a)(5), 403(a)(4), 403(b)(8) and
408(d)(3)); (2) repayments of loans made to a Participant from the Plan; (3) repayments of distributions received by an Employee pursuant to Code Section 411(a)(7)(B)
(cash-outs); (4) repayments of distributions received by an Employee pursuant to Code Section 411(a)(3)(D) (mandatory contributions); and (5) Employee contributions to
a simplified employee pension excludable from gross income under Code Section 408(k)(6). 

        (d)   For
purposes of applying the limitations of Code Section 415, "415 Compensation" shall include the Participant's wages, salaries, fees for professional services
and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with an Employer maintaining the Plan to the
extent that the amounts are includible in gross income (including, but not limited to, commissions paid salesmen, compensation for services on the basis of a percentage of profits, commissions on
insurance premiums, tips, bonuses, fringe benefits, and reimbursements or other expense allowances under a nonaccountable plan (as described in Code Section 1.62-2(c) and in the
case of a Participant who is an Employee within the meaning of Code Section 401(c)(1) and the regulations thereunder, the Participant's earned income (as described in Code
Section 401(c)(2) and the regulations thereunder)) paid during each "limitation year". 

        "415
Compensation" shall exclude (1)(A) contributions made by the Employer to a plan of deferred compensation to the extent that, before the application of the Code Section 415
limitations to the Plan, the contributions are not includible in the gross income of the Employee 

47

 

for
the taxable year in which contributed, (B) contributions made by the Employer to a plan of deferred compensation to the extent that all or a portion of such contributions are
recharacterized as a voluntary Employee contribution, (C) Employer contributions made on behalf of an Employee to a simplified employee pension plan described in Code Section 408(k) to
the extent such contributions are excludable from the Employee's gross income, (D) any distributions from a plan of deferred compensation regardless of whether such amounts are includible in
the gross income of the Employee when distributed except any amount received by an Employee pursuant to an unfunded non-qualified plan to the extent such amounts are includible in the
gross income of the Employee; (2) amounts realized from the exercise of a non-qualified stock option or when restricted stock (or property) held by an Employee either becomes freely
transferable or is no longer subject to a substantial risk of forfeiture; (3) amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option; and
(4) other amounts which receive special tax benefits, such as premiums for group term life insurance (but only to the extent that the premiums are not includible in the gross income of the
Employee), or contributions made by the Employer (whether or not under a salary reduction agreement) towards the purchase of any annuity contract described in Code Section 403(b) (whether or
not the contributions are excludable from the gross income of the Employee). For the purposes of this Section, the determination of "415 Compensation" shall be made by not including amounts that would
otherwise be excluded from a Participant's gross income by reason of the application of Code Sections 125, 402(e)(3), 402(h)(1)(B) and, in the case of Employer contributions made pursuant to a salary
reduction agreement, Code Section 403(b). 

        Notwithstanding
anything contained herein to the contrary, for purposes of this Section, for Plan Years beginning after December 31, 1997, the term "415 Compensation" shall
include: (i) any elective deferral (as defined in Code Section 402(g)(3)) and (ii) any amount which is contributed or deferred by the Employer at the election of the Employee and
which is not includible in the gross income of the Employee by reason of Code Sections 125, 132(f)(4), 401(k) or 457. 

        Notwithstanding
anything contained herein to the contrary, for purposes of this Plan, the term "415 Compensation" shall include payments which otherwise would qualify as "415
Compensation" made by Sanford C. Bernstein & Co., Inc. and Bernstein Technologies Inc. through December 31, 2000 but shall not include any special bonuses, profit sharing
payments or other compensation paid from SCB Partners Inc. made at any time. 

        (e)   For
purposes of applying the limitations of Code Section 415, the "limitation year" shall be the Plan Year. 

        (f)    The
dollar limitation under Code Section 415(b)(1)(A) stated in paragraph (a)(1) above shall be adjusted annually as provided in Code Section 415(d)
pursuant to the Regulations. The adjusted limitation is effective as of January 1st of each calendar year and is applicable to "limitation years" ending with or within that calendar year. 

48

 

        (g)   For
the purpose of this Section, all qualified defined benefit plans (whether terminated or not) ever maintained by the Employer shall be treated as one defined benefit
plan, and all qualified defined contribution plans (whether terminated or not) ever maintained by the Employer shall be treated as one defined contribution plan. 

        (h)   For
the purpose of this Section, if the Employer is a member of a controlled group of corporations, trades or businesses under common control (as defined by Code
Section 1563(a) or Code Section 414(b) and (c) as modified by Code Section 415(h)), is a member of an affiliated service group (as defined by Code Section 414(m)),
or is a member of a group of entities required to be aggregated pursuant to Regulations under Code Section 414(o), all Employees of such Employers shall be considered to be employed by a single
Employer. 

        (i)    For
the purpose of this Section, if this Plan is a Code Section 413(c) plan, all Employers of a Participant who maintain this Plan will be considered to be a
single Employer. 

        (j)    (1)    If
a Participant participates in more than one defined contribution plan maintained by the Employer which have different Anniversary Dates, the maximum
"annual additions" under this Plan shall equal the maximum "annual additions" for the "limitation year" minus any "annual additions" previously credited to such Participant's accounts during the
"limitation year". 

        (2)   If
a Participant participates in both a defined contribution plan subject to Code Section 412 an a defined contribution plan not subject to Code
Section 412 maintained by the Employer which have the same Anniversary Date, "annual additions" will be credited to the Participant's accounts under the defined contribution plan subject to
Code Section 412 prior to crediting "annual additions" to the Participant's accounts under the defined contribution plan not subject to Code Section 412. 

        (3)   If
a Participant participates in more than one defined contribution plan not subject to Code Section 412 maintained by the Employer which have the same
Anniversary Date, the maximum "annual additions" under this Plan shall equal the product of (A) the maximum "annual additions" for the "limitation year" minus any "annual additions" previously
credited under subparagraphs (1) or (2) above, multiplied by (B) a fraction (i) the numerator of which is the "annual additions" which would be credited to such
Participant's accounts under this Plan without regard to the limitations of Code Section 415 and (ii) the denominator of which is such "annual additions" for all plans described in this
subparagraph. 

49

 

        (k)   If
an Employee is (or has been) a Participant in one or more defined benefit plans and one or more defined contribution plans maintained by the Employer, the sum of the
defined benefit plan fraction and the defined contribution plan fraction for any "limitation year" beginning prior to January 1, 2000 may not exceed 1.0. Effective as of January 1, 2000,
the combined limitation under Code Section 415(e) is not applicable. 

        (l)    Notwithstanding
anything contained in this Section to the contrary, the limitations, adjustments and other requirements prescribed in this Section shall at all times
comply with the provisions of Code Section 415 and the Regulations thereunder, the terms of which are specifically incorporated herein by reference. 

 
 

           4.11    ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS
    

        (a)   If,
as a result of a reasonable error in estimating a Participant's Compensation, a reasonable error in determining the amount of elective deferrals (within the meaning
of Code Section 402(g)(3)) that may be made with respect to any Participant under the limits of Section 4.10 or other facts and circumstances to which
Regulation 1.415-6(b)(6) shall be applicable, the "annual additions" under this Plan would cause the maximum "annual additions" to be exceeded for any Participant, the Administrator
shall (1) distribute any elective deferrals (within the meaning of Code Section 402(g)(3)) and/or return any voluntary Employee contributions credited for the "limitation year" to the
extent that the return would reduce the "excess amount" in the Participant's accounts (2) hold any "excess amount" remaining after the return of any elective deferrals or voluntary Employee
contributions in a "Section 415 suspense account" (3) use the "Section 415 suspense account" in the next "limitation year" (and succeeding "limitation years" if necessary) to reduce Employer
contributions for that Participant if that Participant is covered by the Plan as of the end of the "limitation year", or if the Participant is not so covered, allocate and reallocate the "Section 415
suspense account" in the next "limitation year" (and succeeding "limitation years" if necessary) to all Participants in the Plan before any Employer or Employee contributions which would constitute
"annual additions" are made to the Plan for such "limitation year" (4) reduce Employer contributions to the Plan for such "limitation year" by the amount of the "Section 415 suspense account"
allocated and reallocated during such "limitation year". 

        (b)   For
purposes of this Article, "excess amount" for any Participant for a "limitation year" shall mean the excess, if any, of (1) the "annual additions" which would
be credited to his account under the terms of the Plan without regard to the limitations of Code Section 415 over (2) the maximum "annual additions" determined pursuant to
Section 4.10. 

        (c)   For
purposes of this Section, "Section 415 suspense account" shall mean an unallocated account equal to the sum of "excess amounts" for all Participants in the plan
during the "limitation year". The "Section 415 suspense account" shall not share in any earnings or losses of the Trust Fund. 

50

 

        (d)   The
Plan may not distribute "excess amounts", other than voluntary Employee contributions and elective deferrals (within the meaning of Code Section 402(g)(3))
pursuant to Section 4.11(a) above to Participants or Former Participants. 

 
 

           4.12    ROLLOVERS FROM QUALIFIED PLANS
    

        (a)   With
the consent of the Administrator, cash amounts may be rolled over from other qualified plans by Employees, provided that the trust from which such funds are rolled
over permits the rollover to be made and the rollover will not jeopardize the tax exempt status of the Plan or Trust or create adverse tax consequences for the Employer. This Plan shall not accept any
trustee to trustee transfers other than direct rollovers. 

        (b)   The
amounts rolled over shall be set up in a separate account herein referred to as a "Participant's Rollover Account". Such account shall be fully Vested at all times
and shall not be subject to Forfeiture for any reason. 

        (c)   Amounts
in a Participant's Rollover Account shall be held by the Trustees pursuant to the provisions of this Plan and may not be withdrawn by or distributed to the
Participant, in whole or in part, except as provided in Paragraph (d) of this Section. 

        (d)   At
Normal Retirement Date, or such other date when the Participant or his Beneficiary shall be entitled to receive benefits, the fair market value of the Participant's
Rollover Account shall be used to provide additional benefits to the Participant or his Beneficiary. Any distributions of amounts held in a Participant's Rollover Account shall be made in a manner
which is consistent with and satisfies the provisions of Section 6.5, including, but not limited to, all notice and consent requirements of Code Section 411(a)(11) and the Regulations
thereunder. Furthermore, such amounts shall be considered as part of a Participants benefit in determining whether an involuntary cash-out of benefits without Participant consent may be
made. 

        (e)   The
Administrator may direct that employee rollovers made after a valuation date be segregated into a separate account for each Participant in a federally insured
savings account, certificate of deposit in a bank or savings and loan association, money market certificate, or other short term debt security acceptable to the Trustees until such time as the
allocations pursuant to this Plan have been made. 

        (f)    All
amounts allocated to a Participant's Rollover Account shall be treated as a Directed Investment Account pursuant to Section 4.14. 

        (g)   For
purposes of this Section, the term "qualified plan" shall mean any tax qualified plan under Code Section 401(a). The term "amounts rolled over from other
qualified plans" shall mean: (i) distributions received by an Employee from another qualified plan which are eligible for tax free rollover to a qualified plan and which are rolled over by the
Employee to this Plan within sixty (60) days following his receipt thereof; (ii) amounts rolled 

51

 

over
to this Plan from a conduit individual retirement account provided that the conduit individual retirement account has no assets other than assets which (A) were previously distributed to
the Employee by another qualified plan; (B) were eligible for tax-free rollover to a qualified plan and (C) were deposited in such conduit individual retirement account
within sixty (60) days of receipt thereof and other than earnings on said assets; (iii) amounts distributed to the Employee from a conduit individual retirement account meeting the
requirements of clause (ii) above, and rolled over by the Employee to this Plan within sixty (60) days of his receipt thereof from such conduit individual retirement account; and
(iv) For Plan Years beginning on or after January 1, 1993, any direct rollover of cash from another qualified plan, within the meaning of Reg. 1.401(a)(31)-1T, Q&A 14. 

        (h)   Prior
to accepting any rollovers to which this Section applies, the Administrator may require the Employee to establish that the amounts to be rolled over to this Plan
meet the requirements of this Section. 

 
 

           4.13    VOLUNTARY CONTRIBUTIONS
    

        (a)   In
order to allow Participants the opportunity to increase their retirement income, each Participant may elect to voluntarily contribute a portion of his compensation
earned while a Participant under this Plan. Such contributions shall be paid to the Trustees within a reasonable period of time but, in any event, within the time period specified by law. The balance
in each Participant's Voluntary Contribution Account shall be fully Vested at all times and shall not be subject to Forfeiture for any reason. 

        (b)   A
Participant may elect to withdraw his voluntary contributions from his Voluntary Contribution Account and the actual earnings thereon at any time but not more than
once a year in a manner which is consistent with and satisfies the provisions of Section 6.5, including, but not limited to, all notice and consent requirements of Code
Section 411(a)(11) and the Regulations thereunder. If the Administrator maintains sub-accounts with respect to voluntary contributions (and earnings thereon) which were made on or
before a specified date, a Participant shall be permitted to designate which sub-account shall be the source for his withdrawal. 

        In
the event such a withdrawal is made, or in the event a Participant has received a hardship distribution pursuant to Regulation 1.401(k)-1(d)(2)(iii)(B) from any
other plan maintained by the Employer, then such Participant shall be barred from making any voluntary contributions to the Trust Fund for a period of twelve (12) months after receipt of the
withdrawal or distribution. 

        (c)   At
Normal Retirement Date, or such other date when the Participant or his Beneficiary shall be entitled to receive benefits, the fair market value of the Voluntary
Contribution Account shall be used to provide additional benefits to the Participant or his Beneficiary. 

52

 

        (d)   The
Administrator may direct that voluntary contributions made after a valuation date be segregated into a separate account for each Participant in a federally insured
savings account, certificate of deposit in a bank or savings and loan association, money market certificate, or other short-term debt security acceptable to the Trustees until such time as
the allocations pursuant to this Plan have been made. 

        (e)   All
amounts allocated to a Voluntary Contribution Account shall be treated as a Directed Investment Account pursuant to Section 4.14. 

 
 

           4.14    DIRECTED INVESTMENT ACCOUNT
    

        (a)   Each
Participant shall direct the Trustees as to the investment of all of the interest in his Aggregate Account. The Administrator shall provide pooled and/or mutual
funds for such investments and establish procedures to be applied in a uniform nondiscriminatory manner for Participants to direct the Trustees in writing to invest their Aggregate Account. The
Aggregate Account of each Participant so directed will be considered a Directed Investment Account. 

        (b)   A
separate Directed Investment Account shall be established for each Participant. The Directed Investment Account shall be charged or credited as appropriate with the
net earnings, gains, losses and expenses as well as any appreciation or depreciation in market value during each Plan Year attributable to such account. 

 
 

ARTICLE V
  VALUATIONS    
    

 
 

           5.1    VALUATION OF THE TRUST FUND
    

        The
Administrator shall direct the Trustees, as of each Anniversary Date, and at such other date or dates deemed necessary by the Administrator, herein called "valuation date", to
determine the net worth of the assets comprising the Trust Fund as it exists on the "valuation date" prior to taking into consideration any contribution to be allocated for that Plan Year. In
determining such net worth, the Trustees shall value the assets comprising the Trust Fund at their fair market value as of the "valuation date" and shall deduct all expenses for which the Trustees
have not yet obtained reimbursement from the Employer or the Trust Fund. 

 
 

          5.2    METHOD OF VALUATION
    

        In
determining the fair market value of securities held in the Trust Fund which are listed on a registered stock exchange, the Administrator shall direct the Trustees to value the same
at the prices they were last traded on such exchange preceding the close of business on the "valuation date". If such securities were not traded on the "valuation date", or if the exchange on which
they are traded was not open for business on the "valuation date", then the securities shall be valued at the prices at which they were last traded prior to the "valuation date". Any unlisted 

53

 

security
held in the Trust Fund shall be valued at its bid price next preceding the close of business on the "valuation date", which bid price shall be obtained from a registered broker or an
investment banker. In determining the fair market value of assets other than securities for which trading or bid prices can be obtained, the Trustees may appraise such assets itself, or in its
discretion, employ one or more appraisers for that purpose and rely on the values established by such appraiser or appraisers. 

 
 

ARTICLE VI
  DETERMINATION AND DISTRIBUTION OF BENEFITS    
    

 
 
           6.1    DETERMINATION OF BENEFITS UPON RETIREMENT
    

        Every
Participant may terminate his employment with the Employer and retire for the purposes hereof on his Normal Retirement Date. Upon such Normal Retirement Date, all amounts credited
to such Participant's Combined Account shall become distributable. However, a Participant may postpone the termination of his employment with the Employer to a later date, in which event the
participation of such Participant in the Plan, including the right to receive allocations pursuant to Section 4.4, shall continue until his Late Retirement Date. Upon a Participant's Retirement
Date, or as soon thereafter as is practicable, the Trustees shall distribute the value of the Participant's accounts in accordance with Section 6.5. 

 
 

          6.2    DETERMINATION OF BENEFITS UPON DEATH
    

        (a)   All
amounts credited to a Participant's Combined Account shall be fully Vested at all times. The Administrator shall direct the Trustees, in accordance with the
provisions of Sections 6.6 and 6.7, to distribute the value of the deceased Participant's accounts to the Participant's Beneficiary. 

        (b)   Upon
the death of a Former Participant, the Administrator shall direct the Trustees, in accordance with the provisions of Sections 6.6 and 6.7, to distribute any
remaining amounts credited to the accounts of a deceased Former Participant to such Former Participant's Beneficiary. 

        (c)   Any
security interest held by the Plan by reason of an outstanding loan to the Participant or Former Participant shall be taken into account in determining the amount of
the death benefit. 

        (d)   The
Administrator may require such proper proof of death and such evidence of the right of any person to receive payment of the value of the account of a deceased
Participant or Former Participant as the Administrator may deem desirable. The Administrator's determination of death and of the right of any person to receive payment shall be conclusive. 

54

 

        (e)   The
Beneficiary of the death benefit payable pursuant to this Section shall be the Participant's spouse. Except, however, the Participant may designate a Beneficiary
other than his spouse if: 

        (1)   the
spouse has waived the right to be the Participant's Beneficiary; or 

        (2)   the
Participant is legally separated or has been abandoned (within the meaning of local law) and the Participant has a court order to such effect (and there is no
"qualified domestic relations order" as defined in Code Section 414(p) which provides otherwise); or 

        (3)   the
Participant has no spouse; or 

        (4)   the
spouse cannot be located. 

In
such event, the designation of a Beneficiary shall be made on a form satisfactory to the Administrator. A Participant may at any time revoke his designation of a Beneficiary or change his
Beneficiary by filing written notice of such revocation or change with the Administrator. However, the Participant's spouse must again consent in writing to any change in Beneficiary unless the
original consent acknowledged that the spouse had the right to limit consent only to a specific Beneficiary and that the spouse voluntarily elected to relinquish such right. In the event no valid
designation of Beneficiary exists at the time of the Participant's death, the death benefit shall be payable to his estate. 

        (f)    Any
consent by the Participant's spouse to waive any rights to the death benefit must be in writing, must acknowledge the effect of such waiver, and be witnessed by a
Plan representative or a notary public. Further, the spouse's consent must be irrevocable and must: 

        (1)   acknowledge
the specific nonspouse Beneficiary, or 

        (2)   specifically
permit the designation of a Beneficiary by the Participant without any requirement of further consent by the spouse. In this case, the spouse's consent must
acknowledge that the spouse has the right to limit consent only to a specific Beneficiary and that the spouse voluntarily elects to relinquish such right. The spouse's consent shall be irrevocable. 

 
 

           6.3    DISABILITY RETIREMENT BENEFITS
    

        No
disability benefits, other than those payable upon termination of employment, are provided in this Plan. 

55

 

 
 

           6.4    DETERMINATION OF BENEFITS UPON TERMINATION
    

        (a)   The
Participant's Aggregate Account balance shall remain in a separate account for the Terminated Participant and share in allocations pursuant to Section 4.4
until such time as a distribution is made to the Terminated Participant. 

        Distribution
of the funds due to a Terminated Participant shall be made on the occurrence of an event which would result in the distribution had the Terminated Participant remained in
the employ of the Employer (upon the Participant's death or Normal Retirement). However, at the election of the Participant, the Administrator shall direct the Trustees to cause the entire Vested
portion of the Terminated Participant's Combined Account to be payable to such Terminated Participant. Any distribution under this paragraph shall be made in a manner which is consistent with and
satisfies the provisions of Section 6.5, including, but not limited to, all notice and consent requirements of Code Section 411(a)(11) and the Regulations thereunder. 

        If
the value of a Terminated Participant's Vested benefit derived from Employer and Employee contributions does not exceed $3,500 and has never exceeded $3,500 at the time of termination
of employment or at any time thereafter prior to distribution, the Administrator shall direct the Trustees to cause the entire Vested benefit to be paid to such Participant in a single lump sum.
Notwithstanding anything contained herein to the contrary, effective for Plan Years beginning on or after January 1, 1998, with respect to any Participant who terminates employment on or after
January 1, 1998, the $3,500 limit specified in the preceding sentence shall be increased to $5,000. 

        (b)   A
Participant shall become fully Vested in his Participant's Account immediately upon entry into the Plan. 

        (c)   The
computation of a Participant's nonforfeitable percentage of his interest in the Plan shall not be reduced as the result of any direct or indirect amendment to this
Plan. For this purpose, the Plan shall be treated as having been amended if the Plan provides for an automatic change in vesting due to a change in top heavy status. In the event that the Plan is
amended to change or modify any vesting schedule, a Participant with at least three (3) Years of Service as of the expiration date of the election period may elect to have his nonforfeitable
percentage computed under the Plan without regard to such amendment. If a Participant fails to make such election, then such Participant shall be subject to the new vesting schedule. The Participant's
election period shall commence on the adoption date of the amendment and shall end 60 days after the latest of: 

        (1)   the
adoption date of the amendment; 

        (2)   the
effective date of the amendment; or 

        (3)   the
date the Participant receives written notice of the amendment from the Employer or Administrator. 

56

  

        (d)   If any Former Participant shall be reemployed by the Employer as an Eligible Employee, he shall again be eligible to Participate on his date of reemployment. 

 
 

           6.5    DISTRIBUTION OF BENEFITS
    

        (a)   The
Administrator, pursuant to the election of the Participant, shall direct the Trustees to distribute to a Terminated Participant, Retired Participant, or the
Beneficiary of a Deceased Participant, any amount to which he is entitled under the Plan in one lump-sum payment in cash. Subject to Sections 4.13 and 6.10, the Administrator, pursuant to
the election of the Participant, shall direct the Trustees to make a lump-sum in-service distribution of all or a portion of any amount which the Participant is entitled to
receive as an in-service distribution under the Plan. 

        (b)   Any
distribution to a Participant who has a benefit which exceeds, or has ever exceeded, $3,500 at the time of termination of employment or at any time thereafter prior
to distribution shall require such Participant's consent if such distribution occurs prior to the later of his Normal Retirement Age or age 62. Notwithstanding anything contained herein to the
contrary, effective for Plan Years beginning on or after January 1, 1998, with respect to any Participant who terminates employment on or after January 1, 1998, the $3,500 limit
specified in the preceding sentence shall be increased to $5,000. With regard to this required consent: 

        (1)   The
Participant must be informed of his right to defer receipt of the distribution. If a Participant fails to consent, it shall be deemed an election to defer the
distribution of any benefit. However, any election to defer the receipt of benefits shall not apply with respect to distributions which are required under Section 6.5(c) or Section 4.11. 

        (2)   No
consent shall be valid if a significant detriment is imposed under the Plan on any Participant who does not consent to the distribution. 

        (3)   Any
distribution made pursuant to this Section shall be made in a manner consistent with all notice and consent requirements of Section 411(a)(11) and the
regulations thereunder. Any notice required by Section 1.411(a)-11(c) of the Regulations shall be provided to a Participant not less than
thirty (30) days and not more than ninety (90) days before the annuity starting date (as defined in Code Section 417(f)). 

However,
if a distribution is one to which Code Sections 401(a)(11) and 417 do not apply, such distribution may commence less than 30 days after the notice required under
Regulation 1.411(a)-11(c) is given, provided that: (1) the Plan Administrator 

57

 

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

        (c)   Notwithstanding
any provision in the Plan to the contrary, the distribution of a Participant's benefits made on or after January 1, 1985 shall be made in
accordance with the following requirements and shall otherwise comply with Code Section 401(a)(9) and the Regulations thereunder (including Regulation 1.401(a)(9)-2), the
provisions of which are incorporated herein by reference: 

        (1)   A
Participant's benefits shall be distributed to him not later than April 1st of the calendar year following the later of (i) the calendar year in which
the Participant attains age 701/2; or (ii) the calendar year in which the Participant retires; provided, however, that this clause (ii) shall not apply in the case of a
Participant who is a "five (5) percent owner" at any time during the five (5) Plan Year period ending in the calendar year in which he attains age 70 2 or, in the case of a Participant
who becomes a "five (5) percent owner" during any subsequent Plan Year, clause (ii) shall no longer apply and the required beginning date shall be the April 1st of the calendar
year following the calendar year in which such subsequent Plan Year ends. Notwithstanding the foregoing, clause (ii) above shall not apply to any Participant unless the Participant had attained
age 701/2 before January 1, 1988 and was not a "five (5) percent owner" at any time during the Plan Year ending with or within the calendar year in which the Participant
attained age 661/2 or any subsequent Plan Year. 

Notwithstanding
the foregoing, effective on or after January 1, 1997, a Participant's benefits shall be distributed not later than April 1 of the calendar year following the later of
(i) the calendar year in which the employee attains age 701/2; or (ii) the calendar year in which the employee retires, provided, however, that this clause (ii)
shall not apply, except as provided in Code Section 409(d), in the case of an employee who is a five (5) percent owner (as defined in Code Section 416) with respect to the
calendar year in which the employee attains age 701/2. 

        (2)   Distributions
to a Participant and his Beneficiaries shall only be made in accordance with the incidental death benefit requirements of Code Section 401(a)(9)(G)
and the Regulations thereunder. 

58

 

        (d)   The
restrictions imposed by this Section shall not apply if a Participant has, prior to January 1, 1984, made a written designation to have his retirement benefit
paid in an alternative method acceptable under Code Section 401(a) as in effect prior to the enactment of the Tax Equity and Fiscal Responsibility Act of 1982. Any such written designation made
by a Participant shall be binding upon the Plan Administrator notwithstanding any contrary provision of Section 6.5. 

        (e)   For
the purpose of this Section, effective on or after June 24, 1994, a Participant may elect to have their life expectancy and their spouse's life expectancy
redetermined in accordance with Code Section 401(c)(9)(D). Absent such an election, these life expectancies shall not be recalculated. 

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

        (g)   Notwithstanding
any provision of this Plan to the contrary, the provisions of this Section 6.5 shall be construed in a manner that complies with Code
Section 401(a)(9) and, with respect to distributions made on or after January 1, 2001, the Plan will apply the minimum distribution requirements of Code Section 401(a)(9) in
accordance with the Treasury Regulations thereunder that were proposed in January 2001, the provisions of which are hereby incorporated by reference. This subsection (g) shall continue
in effect until the end of the last calendar year beginning before the effective date of the final regulations under Code Section 401(a)(9) or such other date as may be specified in guidance
published by the Internal Revenue Service. 

        (h)   Definitions: 

          (i)  Eligible
rollover distribution: an eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that
an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life
expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more; any
distribution to the extent such distribution is required under Code Section 401(a)(9); the portion of any distribution that is not includible in gross income (determined without regard to the
exclusion for net unrealized appreciation with respect to employer securities); and, effective January 1, 1999, any hardship withdrawal of salary reduction contributions. 

         (ii)  Eligible
retirement plan: An eligible retirement plan is an "eligible retirement plan" within the meaning of Code Section 402(c)(8)(B). 

59

 

        (iii)  Distributee:
A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former
employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p), are distributees with regard to the interest of the
spouse or former spouse. 

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

 
 

          6.6    DISTRIBUTION OF BENEFITS UPON DEATH
    

        (a)   The
death benefit payable pursuant to Section 6.2 shall be paid to the Participant's Beneficiary in one lump-sum payment in cash subject to the rules
of Section 6.6(b). 

        (b)   Notwithstanding
any provision in the Plan to the contrary, distributions upon the death of a Participant made on or after January 1, 1985 shall be made in
accordance with the following requirements and shall otherwise comply with Code Section 401(a)(9) and the Regulations thereunder. If it is determined pursuant to Regulations that the
distribution of a Participant's interest has begun and the Participant dies before his entire interest has been distributed to him, the remaining portion of such interest shall be distributed to his
Beneficiary in one lump sum payment in cash as soon as administratively feasible after the Participant's death but in any event at least as rapidly as tinder the method of distribution selected
pursuant to Section 6.5 as of his date of death. If a Participant dies before he has begun to receive any distributions of his interest under the Plan or before distributions are deemed to have
begun pursuant to Regulations, then his death benefit shall be distributed to his Beneficiary in one lump sum payment in cash as soon as administratively feasible after the Participant's death but in
no event later than December 31st of the calendar year in which the fifth anniversary of his date of death occurs. 

        (c)   Subject
to the spouse's right of consent afforded under the Plan, the restrictions imposed by this Section shall not apply if a Participant has, prior to
January 1, 1984, made a written designation to have his death benefits paid in an alternative method acceptable under Code Section 401(a) as in effect prior to the enactment of the Tax
Equity and Fiscal Responsibility Act of 1982. 

        (d)   If
the Beneficiary of the Participant is the Participant's spouse, a distribution made pursuant to this Section may be directly rolled over to an individual retirement
account or an individual retirement annuity to the extent provided in Section 6.5(f). 

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          6.7    TIME OF SEGREGATION OR DISTRIBUTION
    

        Except
as limited by Sections 6.5 and 6.6, whenever the Trustees are to make a distribution on or as of an Anniversary Date, the distribution may be made on such date or as soon
thereafter as is practicable. However, unless a Former Participant elects in writing to defer the receipt of benefits (such election may not result in a death benefit that is more than incidental),
the payment of benefits shall occur not later than the 60th day after the close of the Plan Year in which the latest of the following events occurs: (a) the date on which the Participant
attains the earlier of age 65 or the Normal Retirement age specified herein; (b) the 10th anniversary of the year in which the Participant commenced participation in the Plan; or (c) the
date the Participant terminates his service with the Employer. 

 
 

           6.8    DISTRIBUTION FOR MINOR BENEFICIARY
    

        In
the event a distribution is to be made to a minor, then the Administrator may direct that such distribution be paid to the legal guardian, or if none, to a parent of such Beneficiary
or a responsible adult with whom the Beneficiary maintains his residence, or to the custodian for such Beneficiary under the Uniform Gift to Minors Act or Gift to Minors Act, if such is permitted by
the laws of the state in which said Beneficiary resides. Such a payment to the legal guardian, custodian or parent of a minor Beneficiary shall fully discharge the Trustees, Employer, and Plan from
further liability on account thereof. 

 
 

           6.9    LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN
    

        In
the event that all, or any portion, of the distribution payable to a Participant or his Beneficiary hereunder shall, at the later of the Participant's attainment of age 62 or his
Normal Retirement Age, remain unpaid solely by reason of the inability of the Administrator, after sending a registered letter, return receipt requested, to the last known address, and after further
diligent effort, to ascertain the
whereabouts of such Participant or his Beneficiary, the amount so distributable shall be treated as a Forfeiture pursuant to the Plan. In the event a Participant or Beneficiary is located subsequent
to his benefit being reallocated, such benefit shall be restored. 

 
 

          6.10    PRE-RETIREMENT DISTRIBUTION
    

        On
or after the time a Participant attains the age of 591/2 years, the Administrator, at the election of the Participant, shall direct the Trustees to make an
in-service distribution of all or a portion of the amount then credited to the accounts maintained on behalf of the Participant. In the event that the Administrator makes a distribution
pursuant to this Section, the Participant shall continue to be eligible to participate in the Plan on the same basis as any other Employee. Any distribution made pursuant to this Section shall be made
in a manner consistent with Section 6.5, including, but not limited to, all notice and consent requirements of Code Section 411(a)(11) and the Regulations thereunder. 

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        Notwithstanding
the above, pre-retirement distributions from a Participant's Elective Account shall not be permitted prior to the Participant attaining age
591/2 except as otherwise permitted under the terms of the Plan. 

 
 

          6.11    LIMITATIONS ON BENEFITS AND DISTRIBUTIONS
    

        All
rights and benefits, including elections, provided to a Participant in this Plan shall be subject to the rights afforded to any "alternate payee" under a "qualified domestic
relations order". Furthermore, a distribution to an "alternate payee" shall be permitted if such distribution is authorized by a "qualified domestic relations order," even if the affected Participant
has not reached the "earliest retirement age" under the Plan. For the purposes of this Section, "alternate payee," "qualified domestic relations order" and "earliest retirement age" shall have the
meaning set forth under Code Section 414(p). 

 
 
 
 
ARTICLE VII

TRUSTEES  

 
 
          7.1    BASIC RESPONSIBILITIES OF THE TRUSTEES
    

        The
Trustees shall have the following categories of responsibilities: 

        (a)   Consistent
with the "funding policy and method" determined by the Employer, to invest, manage, and control the Plan assets subject, however, to the direction of an
Investment Manager if the Trustees should appoint such manager as to all or a portion of the assets of the Plan, provided that the Trustees may enter into contracts with one or more individuals,
firms, associations and/or corporations, which qualify as investment managers as defined in Section 3(38) of ERISA, including, but not limited to, Alliance Capital Management L.P., in such form
as they in their sole and absolute discretion shall determine, including, but not limited to, contracts for the furnishing of investment advisory services and contracts for opening discretionary
accounts granting to such individuals, firms, associations and/or corporations the authority to purchase, sell and otherwise deal in securities and to exercise all of the powers granted to them
hereunder, with respect to the investment of the assets of all or any portion of the Trust. The Trustees may terminate the appointment of an investment manager and may add or delete assets from an
Account; 

        (b)   At
the direction of the Administrator, to pay benefits required under the Plan to be paid to Participants, or, in the event of their death, to their Beneficiaries; 

        (c)   To
maintain records of receipts and disbursements and furnish to the Employer and/or Administrator for each Plan Year a written annual report per Section 7.7; and 

        (d)   If
there shall be more than one Trustee, they shall act by a majority of their number, but may authorize one or more of them to sign papers on their behalf. 

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           7.2    INVESTMENT POWERS AND DUTIES OF THE TRUSTEES
    

        (a)   The
Trustees shall invest and reinvest the Trust Fund to keep the Trust Fund invested without distinction between principal and income and in such securities or
property, real or personal, wherever situated, as the Trustees shall deem advisable, including, but not limited to, stocks, common or preferred, bonds and other evidences of indebtedness or ownership,
and real estate or any interest therein. The Trustees shall at all times in making investments of the Trust Fund consider, among other factors, the short and long-term financial needs of
the Plan on the basis of information furnished by the Employer. In making such investments, the Trustees shall not be restricted to securities or other property of the character expressly authorized
by the applicable law for trust investments; however, the Trustees shall give due regard to any limitations imposed by the Code or the Act so that at all times the Plan may qualify as a qualified
Profit Sharing Plan and Trust. 

        (b)   The
Trustees may employ a bank or trust company pursuant to the terms of its usual and customary bank agency agreement, under which the duties of such bank or trust
company shall be of a custodial, clerical and record-keeping nature. 

 
 

           7.3    OTHER POWERS OF THE TRUSTEES
    

        The
Trustees, in addition to all powers and authorities under common law, statutory authority, including the Act, and other provisions of the Plan, shall have the following powers and
authorities, to be exercised in the Trustees' sole discretion: 

        (a)   To
purchase, or subscribe for, any securities or other property and to retain the same. In conjunction with the purchase of securities, margin accounts may be opened and
maintained; 

        (b)   To
sell, exchange, convey, transfer, grant options to purchase, or otherwise dispose of any securities or other property held by the Trustees, by private contracts or at
public auction. No person dealing with the Trustees shall be bound to see to the application of the purchase money or to inquire into the validity, expediency, or propriety of any such sale or other
disposition, with or without advertisement; 

        (c)   To
vote upon any stocks, bonds, or other securities; to give general or special proxies or powers of attorney with or without power of substitution; to exercise any
conversion privileges, subscription rights or other options, and to make any payments incidental thereto; to oppose, or to consent to, or otherwise participate in, corporate reorganizations or other
changes affecting corporate securities, and to delegate discretionary powers, and to pay any assessments or charges in connection therewith; and
generally to exercise any of the powers of an owner with respect to stocks, bonds, securities, or other property; 

        (d)   To
cause any securities or other property to be registered in the Trustees' own name or in the name of one or more of the Trustees' nominees, and to hold any 

63

 

investments
in bearer form, but the books and records of the Trustees shall at all times show that all such investments are part of the Trust Fund; 

        (e)   To
borrow or raise money for the purposes of the Plan in such amount, and upon such terms and conditions, as the Trustees shall deem advisable; and for any sum so
borrowed, to issue a promissory note as Trustees, and to secure the repayment thereof by pledging all, or any part, of the Trust Fund; and no person lending money to the Trustees shall be bound to see
to the application of the money lent or to inquire into the validity, expediency, or propriety of any borrowing; 

        (f)    To
keep such portion of the Trust Fund in cash or cash balances as the Trustees may, from time to time, deem to be in the best interests of the Plan, without liability
for interest thereon; 

        (g)   To
accept and retain for such time as the Trustees may deem advisable any securities or other property received or acquired as Trustees hereunder, whether or not such
securities or other property would normally be purchased as investments hereunder; 

        (h)   To
make, execute, acknowledge, and deliver any and all documents of transfer and conveyance and any and all other instruments that may be necessary or appropriate to
carry out the powers herein granted; 

        (i)    To
settle, compromise, or submit to arbitration any claims, debts, or damages due or owing to or from the Plan, to commence or defend suites or legal or administrative
proceedings, and to represent the Plan in all suits and legal and administrative proceedings; 

        (j)    To
employ suitable agents and counsel and to pay their reasonable expenses and compensation, and such agent or counsel may or may not be agent or counsel for the
Employer; 

        (k)   To
apply for and procure from responsible insurance companies, to be selected by the Administrator, as an investment of the Trust Fund such Contracts as the
Administrator shall deem proper; to exercise, at any time or from time to time, whatever rights and privileges may be granted under such Contracts; to collect, receive, and settle for the proceeds of
all such Contracts as and when entitled to do so under the provisions thereof; 

        (l)    To
invest funds of the Trust in time deposits or savings accounts bearing a reasonable rate of interest in the Trustees' bank; 

        (m)  To
invest in Treasury Bills and other forms of United States government obligations; 

64

 

        (n)   To
sell, purchase and acquire put or call options if the options are traded on and purchased through a national securities exchange registered under the Securities
Exchange Act of 1934, as amended, or, if the options are not traded on a national securities exchange, are guaranteed by a member firm of the New York Stock Exchange; 

        (o)   To
deposit monies in federally insured savings accounts or certificates of deposit in banks or savings and loan associations; 

        (p)   To
pool all or any of the Trust Fund, from time to time, with assets belonging to any other qualified employee pension benefit trust created by the Employer or an
affiliated company of the Employer, and to commingle such assets and make joint or common investments and carry joint accounts on behalf of this Plan and such other trust or trusts, allocating
undivided shares or interests in such investments or accounts or any pooled assets of the two or more trusts in accordance with their respective interests; 

        (q)   To
do all such acts and exercise all such rights and privileges, although not specifically mentioned herein, as the Trustees may deem necessary to carry out the purposes
of the Plan. 

        (r)   Directed
Investment Account. The powers granted to the Trustees shall be exercised in the sole fiduciary discretion of the Trustees. However, if Participants are so
empowered by the Administrator, each Participant may direct the Trustees to separate and keep separate all or a portion of his share of his account; and further each Participant is authorized and
empowered, in his sole and absolute discretion, to give directions to the Trustees in such form as the Trustees may require concerning the investment of the Participant's Directed Investment Account,
which directions must be followed by the
Trustees subject, however, to restrictions on payment of life insurance premiums. Neither the Trustees nor any other persons including the Administrator or otherwise shall be under any duty to
question any such direction of the Participant or to review any securities or other property, real or personal, or to make any suggestions to the Participant in connection therewith, and the Trustees
shall comply as promptly as practicable with directions given by the Participant hereunder. Any such direction may be of a continuing nature or otherwise and may be revoked by the Participant at any
time in such form as the Trustees may require. The Trustees may refuse to comply with any direction from the Participant in the event the Trustees, in their sole and absolute discretion, deem such
directions improper by virtue of applicable law. The Trustees shall not be responsible or liable for any loss or expense which may result from the Trustees' refusal or failure to comply with any
directions from the Participant. Any costs and expenses related to compliance with the Participant's directions shall be borne by the Participant's Directed Investment Account. 

 
 

          7.4    LOANS TO PARTICIPANTS
    

        (a)   The
Trustees may make loans to Participants and Beneficiaries under the circumstances listed in Subsection (b) below: 

65

 

        (b)   (1)  Loans
shall be made available to all Participants and Beneficiaries on a reasonably equivalent basis; (2) loans shall not be made available to
Highly Compensated Employees in an amount greater than the amount made available to other Participants and Beneficiaries; (3) loans shall bear a reasonable rate of interest; (4) loans
shall be adequately secured; and (5) shall provide for repayment over a reasonable period of time. 

        (c)   Loans
shall not be made to any Shareholder-Employee unless an exemption for such loan is obtained pursuant to Act Section 408 and further provided that such loan
would not be subject to tax pursuant to Code Section 4975. 

        (d)   Loans
made pursuant to this Section (when added to the outstanding balance of all other loans made by the Plan to the Participant) shall be limited to the lesser of: 

        (1)   $50,000
reduced by the excess (if any) of the highest outstanding balance of loans from the Plan to the Participant during the one year period ending on the day before
the date on which such loan is made, over the outstanding balance of loans from the Plan to the Participant on the date on which such loan was made, or 

        (2)   one-half
(1/2) of the present value of the nonforfeitable accrued benefit of the Participant under the Plan. 

For
purposes of this limit, all plans of the Employer shall be considered one plan. 

        (e)   Loans
shall provide for level amortization with payments to be made not less frequently than quarterly over a period not to exceed five (5) years. All loans shall
be due and payable upon termination of employment. 

        (f)    Any
loans shall be made pursuant to a Participant loan program. Such loan program shall be established in writing and must include, but need not be limited to, the
following: 

        (1)   the
identity of the person or positions authorized to administer the Participant loan program; 

        (2)   a
procedure for applying for loans; 

        (3)   the
basis on which loans will be approved or denied; 

        (4)   limitations,
if any, on the types and amounts of loans offered; 

66

 

        (5)   the
procedure under the program for determining a reasonable rate of interest; 

        (6)   the
types of collateral which may secure a Participant loan; and 

        (7)   the
events constituting default and the steps that will be taken to preserve Plan assets. 

        Such
Participant loan program shall be contained in a separate written document which, when properly executed, is hereby incorporated by reference and made a part of the Plan.
Furthermore, such Participant loan program may be modified or amended in writing from time to time without the necessity of amending this Section. 

 
 

          7.5    DUTIES OF THE TRUSTEES REGARDING PAYMENTS
    

        At
the direction of the Administrator, the Trustees shall, from time to time, in accordance with the terms of the Plan, make payments out of the Trust Fund. The Trustees shall not be
responsible in any way for the application of such payments. 

 
 

           7.6    TRUSTEES' COMPENSATION AND EXPENSES AND TAXES
    

        The
Trustees shall be paid such reasonable compensation as shall from time to time be agreed upon in writing by the Employer and the Trustees. An individual serving as Trustee who
already receives full-time pay from the Employer shall not receive compensation from the Plan. In addition, the Trustees shall be reimbursed for any reasonable expenses, including
reasonable counsel fees incurred as Trustees. Such compensation and expenses shall be paid from the Trust Fund unless paid or advanced by the Employer. All taxes of any kind and all kinds whatsoever
that may be levied or assessed under existing or future laws upon, or in respect of, the Trust Fund or the income thereof, shall be paid from the Trust Fund. 

 
 

          7.7    ANNUAL REPORT OF THE TRUSTEES
    

        Within
a reasonable period of time after the later of the Anniversary Date or receipt of the Employer's contribution for each Plan Year, the Trustees shall furnish to the Employer and
Administrator a written statement of account with respect to the Plan Year for which such contribution was made setting forth: 

        (a)   the
net income, or loss, of the Trust Fund; 

        (b)   the
gains, or losses, realized by the Trust Fund upon sales or other disposition of the assets; 

        (c)   the
increase, or decrease, in the value of the Trust Fund; 

67

  

        (d)   all
payments and distributions made from the Trust Fund; and 

        (e)   such
further information as the Trustees and/or Administrator deems appropriate. The Employer, forthwith upon its receipt of each such statement of account, shall
acknowledge receipt thereof in writing and advise the Trustees and/or Administrator of its approval or disapproval thereof. Failure by the Employer to disapprove any such statement of account within
thirty (30) days after its receipt thereof shall be deemed an approval thereof. The approval by the Employer of any statement of account shall be binding as to all matters embraced therein as
between the Employer and the Trustees to the same extent as if the account of the Trustees had been settled by judgment or decree in an action for a judicial settlement of its account in a court of
competent jurisdiction in which the Trustees, the Employer and all persons having or claiming an interest in the Plan were parties; provided, however, that nothing herein contained shall deprive the
Trustees of its right to have its accounts judicially settled if the Trustees so desires. 

 
 

           7.8    AUDIT
    

        (a)   If
an audit of the Plan's records shall be required by the Act and the regulations thereunder for any Plan Year, the Administrator shall direct the Trustees to engage on
behalf of all Participants an independent qualified public accountant for that purpose. Such accountant shall, after an audit of the books and records of the Plan in accordance with generally accepted
auditing standards, within a reasonable period after the close of the Plan Year, furnish to the Administrator and the Trustees a report of his audit setting forth his opinion as to whether any
statements, schedules or lists that are required by Act Section 103 or the Secretary of Labor to be filed with the Plan's annual report, are presented fairly in conformity with generally
accepted accounting principles applied consistently. All auditing and accounting fees shall be an expense of and may, at the election of the Administrator, be paid from the Trust Fund. 

        (b)   If
some or all of the information necessary to enable the Administrator to comply with Act Section 103 is maintained by a bank, insurance company, or similar
institution, regulated and supervised and subject to periodic examination by a state or federal agency, it shall transmit and certify the accuracy of that information to the Administrator as provided
in Act Section 103(b) within one hundred twenty (120) days after the end of the Plan Year or by such other date as may be prescribed under regulations of the Secretary of Labor. 

 
 

          7.9    RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEES
    

        (a)   A
Trustee may resign at any time by delivering to the Employer, at least thirty (30) days before its effective date, a written notice of his resignation. 

        (b)   The
Employer may remove a Trustee by mailing by registered or certified mail, addressed to such Trustee at his last known address, at least thirty (30) days
before its effective date, a written notice of his removal. 

68

 

        (c)   Upon
the death, resignation, incapacity, or removal of any Trustee, a successor may be appointed by the Employer; and such successor, upon accepting such appointment in
writing and delivering same to the Employer, shall, without further act, become vested with all the estate, rights, powers, discretion, and duties of his predecessor with like respect as if he were
originally named as a Trustee herein. Until such a successor is appointed, the remaining Trustee or Trustees shall have full authority to act under the terms of the Plan. 

        (d)   The
Employer may designate one or more successors prior to the death, resignation, incapacity, or removal of a Trustee. In the event a successor is so designated by the
Employer and accepts such designation, the successor shall, without further act, become vested with all the estate, rights, powers, discretion, and duties of his predecessor with the like effect as if
he were originally named as Trustee herein immediately upon the death, resignation, incapacity, or removal of his predecessor. 

        (e)   Whenever
any Trustee hereunder ceases to serve as such, he shall furnish to the Employer and Administrator a written statement of account with respect to the portion of
the Plan Year during which he served as Trustee. This statement shall be either (i) included as part of the annual statement of account for the Plan Year required under Section 7.7; or
(ii) set forth in a special statement. Any such special statement of account should be rendered to the Employer no later than the due date of the annual statement of account for the Plan Year.
The procedures set forth in Section 7.7 for the approval by the Employer of annual statements of account shall apply to any special statement of account rendered hereunder and approval by the
Employer of any such special statement in the manner provided in Section 7.7 shall have the same effect upon the statement as the Employer's approval of an annual statement of account. No
successor to the Trustee shall have any duty or responsibility to investigate the acts or transactions of any predecessor who has rendered all statements of account required by Section 7.7 and
this subparagraph. 

 
 

           7.10    TRANSFER OF INTEREST
    

        Notwithstanding
any other provision contained in this Plan, the Trustees at the direction of the Administrator shall transfer the Vested interest, if any, of such Participant in his
account to another trust forming part of a pension, profit sharing or stock bonus plan maintained by such Participant's new employer and represented by said employer in writing as meeting the
requirements of Code Section 401(a), provided that the trust to which such transfers are made permits the transfer to be made. 

 
 
 
 
ARTICLE VIII

AMENDMENT, TERMINATION AND MERGERS  

 
 
          8.1    AMENDMENT
    

        (a)   The
Employer shall have the right at any time to amend the Plan by action of the Board of Directors (or authorized committee thereof) in accordance with its
by- 

69

 

laws,
subject to the limitations of this Section. However, any amendment which affects the rights, duties or responsibilities of the Trustees may only be made with the Trustees' written consent.
Also, any amendment which affects the rights, duties or responsibilities of the Administrator may only be made with the Administrator's written consent. Any such amendment shall become effective as
provided therein upon its execution. The Trustees shall not be required to execute any such amendment unless the Trust provisions contained herein are a part of the Plan and the amendment affects the
duties of the Trustees hereunder. Notwithstanding anything to the contrary in this Section, any amendment may be made retroactively, if necessary, to bring the Plan into conformity with applicable
law. 

        (b)   No
amendment to the Plan shall be effective if it authorizes or permits any part of the Trust Fund (other than such part as is required to pay taxes and administration
expenses) to be used for or diverted to any purpose other than for the exclusive benefit of the Participants or their Beneficiaries or estates; or causes any reduction in the amount credited to the
account of any Participant; or causes or permits any portion of the Trust Fund to revert to or become property of the Employer. 

        (c)   Except
as permitted by Regulations, no Plan amendment or transaction having the effect of a Plan amendment (such as a merger, plan transfer or similar transaction) shall
be effective if it eliminates or reduces any "Section 411(d)(6) protected benefit" or adds or modifies conditions relating to "Section 411(d)(6) protected benefits" the result of which is a further
restriction on such benefit unless such protected benefits are preserved with respect to benefits accrued as of the later of the adoption date or effective date of the amendment. "Section 411(d)(6)
protected benefits" are benefits described in Code Section 411(d)(6)(A), early retirement benefits and retirement-type subsidies, and optional forms of benefit. 

 
 

           8.2    TERMINATION
    

        (a)   The
Employer shall have the right at any time to terminate the Plan and Trust by delivering to the Trustees and Administrator written notice of such termination. Upon
any full or partial termination, all amounts credited to the affected Participants' Combined Accounts shall become 100% Vested as provided in Section 6.4 and shall not thereafter be subject to
forfeiture, and all unallocated amounts shall be allocated to the accounts of all Participants in accordance with the provisions hereof. 

        (b)   Upon
the full termination of the Plan, the Employer shall direct the distribution of the assets of the Trust Fund to Participants in a manner which is consistent with
and satisfies the provisions of Section 6.5. Distributions to a Participant shall be made in one lump-sum payment in cash. Except as permitted by Regulations, the termination of the
Plan shall not result in the reduction of "Section 411(d)(6) protected benefits" in accordance with Section 8.1(c). 

70

 

 
 

           8.3    MERGER OR CONSOLIDATION
    

        This
Plan and Trust may be merged or consolidated with, or its assets and/or liabilities may be transferred to any other plan and trust only if the benefits which would be received by a
Participant of this Plan, in the event of a termination of the Plan immediately after such transfer, merger or consolidation, are at least equal to the benefits the Participant would have received if
the Plan had terminated immediately before the transfer, merger or consolidation, and such transfer, merger or consolidation does not otherwise result in the elimination or reduction of any "Section
411(d)(6) protected benefits" in accordance with Section 8.1(c) 

 
 
 
 
ARTICLE IX

MISCELLANEOUS  

 
 
           9.1    PARTICIPANT'S RIGHTS
    

        This
Plan shall not be deemed to constitute a contract between the Employer and any Participant or to be a consideration or an inducement for the employment of any Participant or
Employee. Nothing contained in this Plan shall be deemed to give any Participant or Employee the right to be retained in the service of the Employer or to interfere with the right of the Employer to
discharge any Participant or Employee at any time regardless of the effect which such discharge shall have upon him as a Participant of this Plan. Except as may be specifically provided by law,
neither the establishment of the Trust hereby created, nor any modification thereof, nor the creation of any Account, nor the payment of any benefits, shall be construed as giving to any Participant
or other person any equitable right against the Administrator or Employer, or any officer or Employee thereof, or the Trustees, except as provided herein. Under no circumstances shall the terms of
employment of any Participant be modified or in any way be affected hereby. 

 
 

          9.2    ALIENATION
    

        (a)   Subject
to the exceptions provided below, no benefit which shall be payable out of the Trust Fund to any person (including a Participant or his Beneficiary) shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, or
charge the same shall be void; and no such benefit shall in any manner be liable for, or subject to, the debts, contracts, liabilities, engagements, or torts of any such person, nor shall it be
subject to attachment or legal process for or against such person, and the same shall not be recognized by the Trustees, except to such extent as may be required by law. 

        (b)   This
provision shall not apply to the extent a Participant or Beneficiary is indebted to the Plan, as a result of a loan from the Plan. At the time a distribution is to
be made to or for a Participant's or Beneficiary's benefit, such proportion of the amount distributed as shall equal such loan indebtedness shall be paid by the Trustees to the Trustees or 

71

 

the
Administrator, at the direction of the Administrator, to apply against or discharge such loan indebtedness. Prior to making a payment, however, the Participant or Beneficiary must be given
written notice by the Administrator that such loan indebtedness is to be so paid in whole or part from his Participant's Combined Account. If the Participant or Beneficiary does not agree that the
loan indebtedness is valid claim against his Vested Participant's Combined Account, he shall be entitled to a review of the validity of the claim in accordance with procedures provided in Sections
2.12 and 2.13. 

        (c)   This
provision shall not apply to a "qualified domestic relations order" defined in Code Section 414(p), and those other domestic relations orders permitted to be
so treated by the Administrator under the Provisions of the Retirement Equity Act of 1984. The Administrator shall establish a written procedure to determine the qualified status of domestic relations
orders and to administer distributions under such qualified orders. Further, to the extent provided under a "qualified domestic relations order", a former spouse of a Participant shall be treated as
the spouse or surviving spouse for all purposes under the Plan. 

        (d)   Notwithstanding
anything herein to the contrary, effective August 5, 1997, the provisions of this Section 9.2 shall not apply to any offset of a
Participant's benefits provided under the Plan against an amount that the Participant is ordered or required to pay to the Plan under any of the circumstances set forth in Code
Section 401(a)(13)(C) and Sections 206(d)(4) and 206(d)(5) of ERISA. 

 
 

           9.3    CONSTRUCTION OF PLAN
    

        This
Plan and Trust shall be construed and enforced according to the Act and the laws of the State of New York, other than its laws respecting choice of law, to the extent not preempted
by the Act. 

 
 

          9.4    GENDER AND NUMBER     

        Wherever
any words are used herein in the masculine, feminine or neuter gender, they shall be construed as though they were also used in another gender in all cases where they would so
apply, and whenever any words are used herein in the singular or plural form, they shall be construed as though they were also used in the other form in all cases where they would so apply. 

 
 

          9.5    LEGAL ACTION
    

        In
the event any claim, suit, or proceeding is brought regarding the Trust and/or Plan established hereunder to which the Trustees or the Administrator may be a party, they shall be
entitled to be reimbursed from the Trust Fund for any and all costs, attorney's fees, and other expenses pertaining thereto incurred by them for which they shall have become liable. The Employer shall
indemnify each Trustee and Administrator against any and all claims, loss, damages, expenses, and liability arising from any action or failure to act, except when the same is 

72

 

judicially
determined to be due to gross negligence or willful misconduct of such Trustees and/or Administrator. The Employer agrees to indemnify the Trustees and/or Administrator against any
liability imposed as a result of a claim asserted by any person or persons where the Trustees have acted in good faith. 

 
 

           9.6    PROHIBITION AGAINST DIVERSION OF FUNDS
    

        (a)   Except
as provided below and otherwise specifically permitted by law, it shall be impossible by operation of the Plan or of the Trust, by termination of either, by power
of revocation or amendment, by the happening of any contingency, by collateral arrangement or by any other means, for any part of the corpus or income of any trust fund maintained pursuant to the Plan
or any funds contributed thereto to be used for, or diverted to, purposes other than the exclusive benefit of Participants, Retired Participants, or their Beneficiaries. 

        (b)   In
the event the Employer shall make an excessive contribution under a mistake of fact pursuant to Act Section 403(c)(2)(A), the Employer may demand repayment of
such excessive contribution at any time within one (1) year following the time of payment and the Trustees shall return such amount to the Employer within the one (1) year period.
Earnings of the Plan attributable to the excess contributions may not be returned to the Employer but any losses attributable thereto must reduce the amount so returned. 

 
 

           9.7    BONDING
    

        Every
Fiduciary, except a bank or an insurance company, unless exempted by the Act and regulations thereunder, shall be bonded in an amount not less than 10% of the amount of the funds
such Fiduciary
handles; provided, however, that the minimum bond shall be $1,000 and the maximum bond, $500,000. The amount of funds handled shall be determined at the beginning of each Plan Year by the amount of
funds handled by such person, group, or class to be covered and their predecessors, if any, during the preceding Plan Year, or if there is no preceding Plan Year, then by the amount of the funds to be
handled during the then current year. The bond shall provide protection to the Plan against any loss by reason of acts of fraud or dishonesty by the Fiduciary alone or in connivance with others. The
surety shall be a corporate surety company (as such term is used in Act Section 412(a)(2)), and the bond shall be in a form approved by the Secretary of Labor. Notwithstanding anything in the
Plan to the contrary, the cost of such bonds shall be an expense of and may, at the election of the Administrator, be paid from the Trust Fund or by the Employer. 

 
 

           9.8    EMPLOYER'S AND TRUSTEES' PROTECTIVE CLAUSE
    

        Neither
the Employer nor the Trustees, nor their successors, shall be responsible for the validity of any Contract issued hereunder or for the failure on the part of the insurer to make
payments provided by any such Contract, or for the action of any person which may delay payment or render a Contract null and void or unenforceable in whole or in part. 

73

 

 
 

           9.9    INSURER'S PROTECTIVE CLAUSE
    

        Any
insurer who shall issue Contracts hereunder shall not have any responsibility for the validity of this Plan or for the tax or legal aspects of this Plan. The insurer shall be
protected and held harmless in acting in accordance with any written direction of the Trustees, and shall have no duty to see to the application of any funds paid to the Trustees, nor be required to
question any actions directed by the Trustees. Regardless of any provision of this Plan, the insurer shall not be required to take or permit any action or allow any benefit or privilege contrary to
the terms of any Contract which it issues hereunder, or the rules of the insurer. 

 
 

           9.10    RECEIPT AND RELEASE FOR PAYMENTS
    

        Any
payment to any Participant, his legal representative, Beneficiary, or to any guardian or committee appointed for such Participant or Beneficiary in accordance with the provisions of
the Plan, shall, to the extent thereof, be in full satisfaction of all claims hereunder against the Trustees and the Employer,
either of whom may require such Participant, legal representative, Beneficiary, guardian or committee, as a condition precedent to such payment, to execute a receipt and release thereof in such form
as shall be determined by the Trustees or Employer. 

 
 

           9.11    ACTION BY THE EMPLOYER
    

        Whenever
the Employer under the terms of the Plan is permitted or required to do or perform any act or matter or thing, it shall be done and performed by a person duly authorized by its
legally constituted authority. 

 
 

           9.12    NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY
    

        The
"named Fiduciaries" of this Plan are (1) the Employer, (2) the Administrator and (3) the Trustees. The named Fiduciaries shall have only those specific powers,
duties, responsibilities, and obligations as are specifically given them under the Plan. In general, the Employer shall have the sole responsibility for making the contributions provided for under
Section 4.1; and shall have the sole authority to appoint and remove the Trustees and the Administrator; to formulate the Plan's "funding policy and method"; and to amend or terminate, in whole
or in part, the Plan. The Administrator shall have the sole responsibility for the administration of the Plan, which responsibility is specifically described in the Plan. The Trustees shall have the
sole responsibility of management of the assets held under the Trust, except those assets, the management of which has been assigned to an Investment Manager, who shall be solely responsible for the
management of the assets assigned to it, all as specifically provided in the Plan. Each named Fiduciary warrants that any directions given, information furnished, or action taken by it shall be in
accordance with the provisions of the Plan, authorizing or providing for such direction, information 

74

 

or
action. Furthermore, each named Fiduciary may rely upon any such direction, information or action of another named Fiduciary as being proper under the Plan, and is not required under the Plan to
inquire into the propriety of any such direction, information or action. It is intended under the Plan that each named Fiduciary shall be responsible for the proper exercise of its own powers, duties,
responsibilities and obligations under the Plan. No named Fiduciary shall guarantee the Trust Fund in any manner against investment loss or depreciation in asset value. Any person or group may serve
in more than one Fiduciary capacity. In the furtherance of their responsibilities hereunder, the "named Fiduciaries" shall be empowered to interpret the Plan and Trust and to resolve ambiguities,
inconsistencies and omissions, which findings shall be binding, final and conclusive. 

 
 

           9.13    HEADINGS
    

        The
headings and subheadings of this Plan have been inserted for convenience of reference and are to be ignored in any construction of the provisions hereof. 

 
 

           9.14    APPROVAL BY INTERNAL REVENUE SERVICE
    

        (a)   Notwithstanding
anything herein to the contrary, contributions to this Plan are conditioned upon the initial qualification of the Plan under Code Section 401. If
the Plan receives an adverse determination with respect to its qualification, then the Plan may return such contributions to the Employer within one year after such determination, provided the
application for the determination is made by the time prescribed by law for filing the Employer's return for the taxable year in which the Plan was adopted, or such later date as the Secretary of the
Treasury may prescribe. 

        (b)   Notwithstanding
any provisions to the contrary, except Sections 3.6, 3.7, and 4.1(f), any contribution by the Employer to the Trust Fund is conditioned upon the
deductibility of the contribution by the Employer under the Code and, to the extent any such deduction is disallowed, the Employer may, within one (1) year following the disallowance of the
deduction, demand repayment of such disallowed contribution and the Trustees shall return such contribution within one (1) year following the disallowance. Earnings of the Plan attributable to
the excess contribution may not be returned to the Employer, but any losses attributable thereto must reduce the amount so returned. 

 
 

           9.15    UNIFORMITY
    

        All
provisions of this Plan shall be interpreted and applied in a uniform, nondiscriminatory manner. In the event of any conflict between the terms of this Plan and any Contract
purchased hereunder, the Plan provisions shall control. 

75

 
 
 

ARTICLE X
  PARTICIPATING EMPLOYERS    
    

 
 
          10.1    ADOPTION BY OTHER EMPLOYERS
    

        Notwithstanding
anything herein to the contrary, with the consent of the Employer and Trustees, any other corporation or entity, whether an affiliate or subsidiary or not, may adopt this
Plan and all of the provisions hereof, and participate herein and be known as a Participating Employer, by a properly executed document evidencing said intent and will of such Participating Employer. 

        Bernstein
Technologies Inc. is a Participating Employer under this Plan. 

 
 

           10.2    REQUIREMENTS OF PARTICIPATING EMPLOYERS
    

        (a)   Each
such Participating Employer shall be required to use the same Trustees as provided in this Plan. 

        (b)   The
Trustees may, but shall not be required to, commingle, hold and invest as one Trust Fund all contributions made by Participating Employers, as well as all increments
thereof. 

        (c)   The
transfer of any Participant from or to an Employer participating in this Plan, whether he be an Employee of the Employer or a Participating Employer, shall not
affect such Participant's rights under the Plan, and all amounts credited to such Participant's Combined Account as well as his accumulated service time with the transferor or predecessor, and his
length of participation in the Plan, shall continue to his credit. 

        (d)   All
rights and values forfeited by termination of employment shall inure only to the benefit of the Participants of the Employer or Participating Employer by which the
forfeiting Participant was employed. 

        (e)   Any
expenses of the Trust which are to be paid by the Employer or borne by the Trust Fund shall be paid by each Participating Employer in the same proportion that the
total amount standing to the credit of all Participants employed by such Employer bears to the total standing to the credit of all Participants. 

 
 

           10.3    DESIGNATION OF AGENT
    

        Each
Participating Employer shall be deemed to be a part of this Plan; provided, however, that with respect to all of its relations with the Trustees and Administrator for the purpose of
this Plan, each Participating Employer shall be deemed to have designated irrevocably the Employer as its agent. Unless the context of the Plan clearly indicates the contrary, the word 

76

 

"Employer"
shall be deemed to include each Participating Employer as related to its adoption of the Plan. 

 
 

           10.4    EMPLOYEE TRANSFERS
    

        It
is anticipated that an Employee may be transferred between Participating Employers, and in the event of any such transfer, the Employee involved shall carry with him his accumulated
service and eligibility. No such transfer shall affect a termination of employment hereunder, and the Participating Employer to which the Employee is transferred shall thereupon become obligated
hereunder with respect to such Employee in the same manner as was the Participating Employer from whom the Employee was transferred. 

 
 

           10.5    PARTICIPATING EMPLOYER'S CONTRIBUTION
    

        All
contributions made by a Participating Employer, as provided for in this Plan, shall be determined separately by each Participating Employer, and shall be paid to and held by the
Trustees for the exclusive benefit of the Employees of such Participating Employer and the Beneficiaries of such Employees, subject to all the terms and conditions of this Plan. On the basis of the
information furnished by the Administrator, the Trustees shall keep separate books and records concerning the affairs of each Participating Employer hereunder and as to the accounts and credits of the
Employees of each Participating Employer. The Trustees may, but need not register Contracts so as to evidence that a particular Participating Employer is the interested Employer hereunder, but in the
event of an
Employee transfer from one Participating Employer to another, the employing Employer shall immediately notify the Trustees thereof. 

 
 

           10.6    AMENDMENT
    

        The
Plan may be amended pursuant to Section 8.1 hereof without the consent of a Participating Employer. 

 
 

           10.7    DISCONTINUANCE OF PARTICIPATION
    

        Any
Participating Employer shall be permitted to discontinue or revoke its participation in the Plan. At the time of any such discontinuance or revocation, satisfactory evidence thereof
and of any applicable conditions imposed shall be delivered to the Trustees. The Trustees shall thereafter transfer, deliver and assign Contracts and other Trust Fund assets allocable to the
Participants of such Participating Employer to such new Trustees as shall have been designated by such Participating Employer, in the event that it has established a separate pension plan for its
Employees provided, however, that no such transfer shall be made if the result is the elimination or reduction of any "Section 411(d)(6) protected benefits" in accordance with Section 8.1(c).
If no successor is designated, the Trustees shall retain such assets for the Employees of said Participating Employer pursuant to the provisions of Article VII hereof. In no such event shall
any part of the corpus or income of the Trust as it relates to such Participating 

77

 

Employer
be used for or diverted for purposes other than for the exclusive benefit of the Employees of such Participating Employer. 

 
 

          10.8    ADMINISTRATOR'S AUTHORITY
    

        The
Administrator shall have authority to make any and all necessary rules or regulations, binding upon all Participating Employers and all Participants, to effectuate the purpose of
this Article. 

 
 

           10.9    GUARANTEES
    

        All
Plan benefits will be paid only from, and the Participants and/or Beneficiaries shall look solely to, the Trust Fund, and neither the Employer nor the Trustees shall have any duty or
liability to furnish the Trust with any funds, securities or other assets except as expressly provided in the Plan. 

78

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