Document:

bsdm10q20090531ex10-1.htm

    
      

      

    

    Exhibit
10.1

    

    

    
       
BSD
MEDICAL CORPORATION

    

    

    
       
EXCLUSIVE
DISTRIBUTION AGREEMENT

    

    

    

    

    This
Exclusive Distribution Agreement is made and entered into this 13th day of May
2009 by and between Sennewald/Medizin-Technik
GmbH,  hereinafter referred to as "DISTRIBUTOR"), a company
organized and existing under the laws of the Federal Republic of Germany and
having a principal place of business at Schatzbogen 86, 81829 Munich, Germany
and BSD Medical
Corporation, a Delaware Corporation, (hereinafter referred to as
"MANUFACTURER") having a principal place of business at 2188 West 2200 South,
Salt Lake City, Utah 84119 U.S.A.

    

    Recitals

    

    
      	
              A. 
      

            	
              The
      MANUFACTURER is the sole owner of all rights, title, and interest in and
      to certain inventions, technology, and know-how relating to its
      hyperthermia cancer therapy products, namely the BSD 2000 and BSD 500 as
      well as the tumor ablation products (MicroThermX) to be introduced to the
      market (hereinafter referred to as "PRODUCTS") and other applications, and
      MANUFACTURER has the right to grant exclusive distributorships
      thereunder.

            

    

    

    
      	
              B. 
      

            	
              DISTRIBUTOR
      is now desirous of acquiring from MANUFACTURER an exclusive
      distributorship to market and sell the
PRODUCTS.

            

    

    

    
      	
              C. 
      

            	
              The
      MANUFACTURER is willing to grant an exclusive distributorship based upon
      the terms and conditions hereafter set
forth.

            

    

    

    

    NOW,
THEREFORE, in consideration of the mutual covenants and promises contained
herein, and for good and valuable consideration, the parties hereto intending to
be legally bound, agree as follows:

    
 

    
 

    
      
        
           

        

        
           

          
            

          

        

        
           

          Exclusive
Distributorship Agreement - Page 2

        

      

    

     

    Terms of
Agreement

    

    Section
1--Definitions

    

    
      	
              1.1 
      

            	
              The
      term "TECHNOLOGY" related to hyperthermia and ablation cancer therapy
      products as used in this Agreement, shall mean any confidential or
      proprietary technical information, know-how, trade secrets, written
      documentation, machine readable documentation, detailed drawings, data,
      methods, processes, specifications, quality and inspections standards,
      sales literature, advertising and marketing materials, reports and
      training materials.

               

            

    

    
      	
              1.2
      

            	
              The
      term "PRODUCTS" as used in this Agreement, shall mean all products, and
      by-products produced by or resulting from the use of any portion of the
      TECHNOLOGY. The term "PRODUCTS" shall specifically include all models of
      the PRODUCTS.

            

    

    

    

    
      Section
2--Grant of PRODUCTS exclusive distributorship

    

    

    
      	
              2.1 
      

            	
              Subject
      to the other terms and conditions set forth herein, MANUFACTURER hereby
      grants to DISTRIBUTOR the right to sell, and otherwise to commercialize
      the Hyperthermia
      PRODUCTS for sales in Russia as well as all European Countries
      (with the exception of
      Poland)  ( all hereinafter referred to as "TERRITORY").
      DISTRIBUTOR agrees that it will not make sales of these products except in
      the TERRITORY unless prior authorization is granted on specific projects
      in writing from MANUFACTURER.

            

    

    

    
      	
              2.2 
      

            	
              Subject
      to the other terms and conditions set forth herein, MANUFACTURER hereby
      grants to DISTRIBUTOR the right to sell, and otherwise to commercialize
      it’s Tumor Ablation
      PRODUCTS for sales in Germany, Switzerland and
      Austria.  DISTRIBUTOR agrees that it will not make sales of this
      product except in the TERRITORY unless prior authorization is granted on
      specific projects in writing from
      MANUFACTURER.   

            

    

    

    

    
      
        Section
3--Performance

      

    

    

    
      	
              3.1 
      

            	
              DISTRIBUTOR
      covenants that it will in good faith commit itself to a thorough,
      vigorous, and diligent program of exploiting the PRODUCTS hereof in
      accordance with the best business customs of the industry, exerting its
      best efforts, so that full utilization of the PRODUCTS will
      result.  This shall include exposure of PRODUCTS to hospitals,
      medical clinics, individual medical practitioners, and appropriate medical
      equipment sub-dealers, outlets and markets throughout the country(s) in
      section 2.

            

    

     

    
 

    
      
        
          BSD
Medical Corporation - Confidential Document - Initials __________

           

        

        
           

          
            

          

        

        
           

          Exclusive
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              3.2 
      

            	
              DISTRIBUTOR
      further agrees to commit to annual sales projections established in
      writing by mutual agreement by the two parties.  In the event
      that DISTRIBUTOR does not, at any future date, fulfill its projected sales
      or shows lack of progress to that end, MANUFACTURER shall have the right,
      at it’s option to terminate this Agreement pursuant to section
      6.  Failure to reach agreement on sales projections may also be
      cause for termination.

            

    

     

    
      	
              3.3 
      

            	
              DISTRIBUTOR
      further agrees to provide technical service and support for the PRODUCTS
      sold in the TERRITORY.  To this end, DISTRIBUTOR will comply
      with the training requirements outlined in section 12 and further agrees
      to order and keep in stock sufficient spare parts to be able to service
      equipment in a timely manner.   Failure to provide this
      support and/or comply with the training requirements shall be cause for
      termination.

            

    

     

    
      	
              3.4  

            	
              DISTRIBUTOR
      further agrees to obtain, at its expense all necessary and relevant
      government approvals and permission to market, sell and operate the
      PRODUCT in the TERRITORY.  Failure to obtain these approvals
      shall be cause for termination.

            

    

    

    

    
      Section
4-- PRODUCTS pricing.

    

    

    
      	
              4.1 
      

            	
              Current
      pricing as of this contract to the DISTRIBUTOR shall be per quotation from
      MANUFACTURER or via published price lists from
      MANUFACTURER.  DISTRIBUTOR shall receive 25% discount off list
      prices at time of purchase order.  See attachment for current
      MANUFACTURER list pricing.

            

    

    

    
      	
              4.2 
      

            	
              From
      time to time MANUFACTURER shall have the right to change prices of
      PRODUCTS.  Unless otherwise specified by MANUFACTURER,
      in   writing, new published pricing shall be effective 90
      days from the date of issue of new price
lists.

            

    

    

    
      	
              4.3 
      

            	
              DISTRIBUTOR
      shall purchase all spare and replacement parts directly from
      MANUFACTURER

            

    

     

     

     

    
      
        
          BSD
Medical Corporation - Confidential Document - Initials __________

           

        

        
           

          
            

          

        

        
           

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    Section
5-- Payments

    

    
      	
              5.1 
      

            	
              DISTRIBUTOR
      agrees that all purchase orders for PRODUCTS shall be purchased with a 50%
      payment at time of placement of purchase order and 50% payment at time of
      shipment of product, according to the terms set forth in MANUFACTURER's
      quotation as agreed by both parties unless other terms or conditions are
      agreed upon in writing by DISTRIBUTOR and MANUFACTURER prior to new orders
      being placed.  Spare parts orders shall be payable net 45 days
      after shipment.

            

    

    

    
      	
              5.2 
      

            	
              All
      moneys payable hereunder shall be paid in United States Dollars at such
      locations in the United States of America as MANUFACTURER may from time to
      time designate; unless, any payments due and payable in the United States
      is not at that time permitted by law or by reason of the decision of any
      competent authority in the country involved, then, in such event,
      DISTRIBUTOR shall discharge its obligation for payment in such other
      currency and at such place as may be permitted and agreed to by
      MANUFACTURER.

            

    

    

    

    
      Section
6--Term and Termination

    

    

    
      	
              6.1 
      

            	
              With
      respect to the DISTRIBUTOR and rights granted hereby, this Agreement shall
      commence upon the executing hereof and, unless terminated earlier, shall
      continue year to year with automatic 12 (twelve) month extensions if all
      conditions of this Agreement have been met, subject to new sales
      projections which will serve as minimum purchase volume targeted amounts
      (as mutually agreed) as described in Subparagraph 3.1 and
    3.2.

            

    

    

    
      	
              6.2 
      

            	
              If
      any payment to MANUFACTURER is in arrears for thirty (30) days after the
      due date, or if DISTRIBUTOR fails to achieve minimum sales performance or
      defaults in performing any of the other terms of this Agreement, and
      continues in default for a period of fifteen (15) days after written
      notification as provided herein, or if DISTRIBUTOR becomes insolvent or
      files for bankruptcy or enters into an agreement with creditors, or if a
      receiver is appointed for it, MANUFACTURER shall have the right to
      terminate this Agreement upon giving a fifteen (15) day notice to
      DISTRIBUTOR.

            

    

    

    
      	
              6.3 
      

            	
              As
      a course of normal business, the MANUFACTURER has reasonable expectations
      in regards to performance, communications, promotions, etc.  If,
      at any time during this agreement, the DISTRIBUTOR fails to meet these
      expectations, the MANUFACTURER shall promptly notify the DISTRIBUTOR in
      writing.  Failure by the DISTRIBUTOR to remedy the situation
      within 30 days to the satisfaction of the MANUFACTURER shall be sufficient
      grounds for immediate termination of this
  agreement

            

    

     

    
 

    
      
        
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Medical Corporation - Confidential Document - Initials __________

           

        

        
           

          
            

          

        

        
           

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              6.4 
      

            	
              Subsequent
      to the termination of this Agreement as provided for in Subsection 6.1 -
      6.3, DISTRIBUTOR agrees that it will not engage in the use, sale or other
      commercialization or in any other manner for it's own benefit or any
      person, firm, corporation, association, or other entity of the TECHNOLOGY
      for a period of five (5) years and that it will not sell the PRODUCTS or
      competitive products during that period.  This excludes any
      PRODUCTS that the DISTRIBUTOR currently manufactures, or subsequent
      developments of this technology that is not derived from technology
      offered by the MANUFACTURER. DISTRIBUTOR agrees that it will not use its
      knowledge of the MANUFACTURER’S systems to build or develop competing
      products that use phased–array technology to treat deep tumors or any
      other software or hardware technology utilized by the MANUFACTURER of
      which the DISTRIBUTOR becomes aware because of its activities associated
      with this agreement.  At the termination of this agreement, any
      items remaining in stock may be returned to the MANUFACTURER at a mutually
      agreed upon price.

            

    

     

    
      	
              6.4
      

            	
              Upon
      termination of this Agreement for any reason, nothing herein shall be
      construed to release either party of any obligation that matured prior to
      the effective date of such termination, and any unpaid payments under this
      Agreement shall become immediately due and
  payable.

            

    

    

    
      	
              6.5 
      

            	
              Notwithstanding
      the above, DISTRIBUTOR shall have no obligation to purchase the minimum
      purchase requirements herein for any period after the day of notification
      of termination by DISTRIBUTOR or notification of default by MANUFACTURER,
      unless such default is remedied as contained
      herein.  DISTRIBUTOR shall not be liable to purchase any units
      beyond those already ordered and paid for in the event of termination or
      default.

            

    

    

    

    
      Section
7-- Third party Infringement of Patent or Future Patent
Applications

    

    

    
      	
              7.1 
      

            	
              Should
      MANUFACTURER or DISTRIBUTOR become aware of any infringement or alleged
      infringement in the country in paragraph 2, that party shall immediately
      notify the other party in writing of the name and address of the alleged
      infringer, the alleged acts of infringement, and any available evidence of
      infringement.  MANUFACTURER and DISTRIBUTOR agree to work
      jointly (on a best efforts basis) to prevent any infringement and defend
      the patent or any additional patent MANUFACTURER may apply for in the
      future upon which the TECHNOLOGY is based.  The intent of this
      paragraph is that DISTRIBUTOR shall defend the patent or patents applied
      for in the future in the country in paragraph
2.

            

    

    

    
      	
              7.2 
      

            	
              DISTRIBUTOR
      and MANUFACTURER hereby agree to cooperate with each other in the
      prosecution of any legal infringement action or settlement discussions
      undertaken pursuant to this section and that each will provide the other
      with all pertinent data and evidence of which it may have the knowledge or
      which may be in its possession and which may be helpful in the prosecution
      of such action.

            

    

     

    
 

    
      
        
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Medical Corporation - Confidential Document - Initials __________

           

        

        
           

          
            

          

        

        
           

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              7.3 
      

            	
              If,
      at any time during the term of this Agreement, MANUFACTURER or DISTRIBUTOR
      shall be unable to uphold the validity of any patents against any alleged
      infringer, DISTRIBUTOR shall not have a damage claim or a claim for refund
      or reimbursement against
MANUFACTURER.

            

    

    

    

    Section
8-- Taxes, Governmental Approvals and Liability

    

    
      	
              8.1 
      

            	
              DISTRIBUTOR
      shall be solely responsible for the payment and discharge of any taxes,
      duties, or withholdings relating to any transaction of DISTRIBUTOR in
      connection with the sale, or lease of the PRODUCTS in its
      TERRITORY.  In the event that MANUFACTURER is assessed any tax,
      duty, or other governmental withholding by the Chinese government with
      respect to any payment under this DISTRIBUTOR Agreement, DISTRIBUTOR shall
      pay such tax, duty, or other governmental withholding on behalf of
      MANUFACTURER or reimburse MANUFACTURER for any such tax, duty, or
      withholding it shall make.

            

    

    

    
      	
              8.2 
      

            	
              DISTRIBUTOR
      shall, at its own expense, be responsible for applying for and obtaining
      any approvals, authorizations, or validations relative to this Agreement
      under the laws of the country in paragraph 2 or otherwise, including
      authorization for the remittances hereunder from the appropriate
      governmental authorities.

            

    

    

    
      	
              8.3 
      

            	
              DISTRIBUTOR
      shall be responsible for all product liability, and product warranty for
      any PRODUCTS sold by DISTRIBUTOR under this Agreement and shall carry
      whatever insurance is necessary to provide such liability or warranty
      protection.

            

    

    

    

    
      Section
9--Independence of the Parties

    

    

    
      	
               
      

            	
              9.1This
      Agreement shall not constitute the designation of either party as the
      representative or agent of the other, nor shall either party by this
      Agreement have the right or authority to make any promise, guarantee,
      warranty, or representation, or to assume, create, or incur any liability
      or other obligation of any kind, express or implied, against or in the
      name of, or on behalf of, the
other.

            

    

     

     

    
 

    
      
        
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Medical Corporation - Confidential Document - Initials __________

           

        

        
           

          
            

          

        

        
           

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      Section
10--Assignment

    

    

    
      	
              10.1
      

            	
              DISTRIBUTOR
      shall not have the right to assign or otherwise transfer this Agreement
      and the rights of distributorship granted hereby and the rights acquired
      by DISTRIBUTOR hereunder, without the prior, written consent of
      MANUFACTURER (such consent will not be unreasonably
      withheld).  If such written consent is given, such assignment or
      transfer shall not be deemed effective unless such assignee or transferee
      has agreed in writing to be bound by the terms and provisions of this
      Agreement. DISTRIBUTOR shall have the right to utilize third parties to
      market and acquire sales, including but not limited to appointing local
      sub distributors.  These third parties are also subject to the
      terms and limitations of the
agreement.

            

    

    

    
      	
              10.2 
      

            	
              Upon
      termination of this agreement DISTRIBUTOR shall assign all rights to any
      import licenses it holds for the MANUFACTURER'S PRODUCTS to the
      MANUFACTURER.

            

    

    

    
      	
              10.3 
      

            	
              MANUFACTURER
      shall have the right to assign its right herein, including rights to
      receive payments to any third party without the prior written consent of
      DISTRIBUTOR. Assignment of payments due must be in accordance with the
      laws, rules and regulations of
Germany.

            

    

    

    

    
      Section
11--Notices

    

    

    
      	
              11.1 
      

            	
              All
      notices, demands, and other communications under this Agreement shall be
      deemed to have been duly given and delivered one (1) day after sending, if
      sent by telegram, telex, or telefax, and thirty-five (35) days after
      posting, if sent by registered airmail, postage prepaid to the parties at
      the following locations:

            

    

    

    
      	
               
      

            	
              A.  MANUFACTURER:

            

    

    
      	
               
      

            	
              BSD
      Medical Corporation

            

    

    

    
      	
               
      

            	
              2188
      West 2200 South

            

    

    

    
      	
               
      

            	
              Salt
      Lake City, Utah 84119

            

    

    

    
      	
               
      

            	
              Telefax
      801-972-5930

            

    

     
 

     

    
      
        
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Medical Corporation - Confidential Document - Initials __________

           

        

        
           

          
            

          

        

        
           

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        	 	B.  DISTRIBUTOR: 

          

        	
                 
      

              	
                Dr.
      Sennewald Medizintechnik GmbH

              

      

    

    
 

    
      	
               
      

            	
              Schatzbogen
      86

            

    

    
 

    
      	
               
      

            	
              81829
      MUNCHEN

            

    

    
 

    
      	
               
      

            	
              GERMANY

            

    

    
 

    
      	
               
      

            	
              Telefax
      49-89 54 21 43-30

            

    

     

    
      	
              11.2 
      

            	
              The
      parties hereto may give written notice of change of address, and after
      such notice has been received, any notice or request shall thereafter be
      given to such party at the changed
address.

            

    

    

    

    Section
12—Training

    

    
      	
              12.1 
      

            	
              MANUFACTURER
      and DISTRIBUTOR shall fulfill the Medical Devices Act
      (Medizinproduktegesetz) MPG, paragraph 31, requirements which state that
      all sales representatives of DISTRIBUTOR are adequately trained and
      updated.  Documentation of training shall be
      maintained.

            

    

    

    
      	
              12.2 
      

            	
              DISTRIBUTOR
      shall send, at DISTRIBUTOR'S expense, appropriate employee(s) to locations
      designated by MANUFACTURER for the purpose of receiving adequate training,
      specified by MANUFACTURER, to properly represent MANUFACTURER in the
      TERRITORY.

            

    

    
 

    
 

    
      Section
13--Demonstration Systems

    

    

    
      	
              13.1 
      

            	
              DISTRIBUTOR
      agrees to purchase adequate BSD demonstration systems from MANUFACTURER,
      to be mutually determined by both parties, as described
      by the attached quotation and sales
  agreement.

            

    

    
      
      

    

    

    

    
      Section
14--Applicable Law

    

    

    
      	
              14.1 
      

            	
              All
      disputes in connection with this agreement shall be settled with good
      faith
      negotiation.  In case no settlement can be reached, the case may
      be submitted to arbitration as agreed upon by both
      parties.  This Agreement is entered into pursuant to the laws of
      the State of Delaware, United States of America, and the validity and
      interpretation of this Agreement shall be governed by and in accordance
      with the laws of the state and country as such law shall from time to time
      be in effect.  If attempts at negotiation and arbitration fail,
      both parties agree to the jurisdiction of the courts of the States of Utah
      or Delaware and agree to be bound by their
  rulings.

            

    

     

    
 

    
      
        
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Medical Corporation - Confidential Document - Initials __________

           

        

        
           

          
            

          

        

        
           

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    Section
15--Attorneys Fees

    

    
      	
              15.1 
      

            	
              In
      the event there is a default under this Agreement and it becomes
      reasonably necessary for any party to employ the services of an attorney,
      either to enforce or terminate this Agreement, with or without
      arbitration, the losing party or parties to the controversy arising out of
      the default shall pay to the prevailing party or parties reasonable
      attorneys fees and, in addition, such costs and expenses as are incurred
      in enforcing or in terminating this
Agreement.

            

    

    

    

    Section
16--Identification of TECHNOLOGY and PRODUCTS

    

    
      	
              16.1 
      

            	
              DISTRIBUTOR
      agrees to mark PRODUCTS, all brochures and documents describing the
      PRODUCTS with all applicable United States and foreign patent numbers, in
      conformity with the patent laws and practices of the respective
      country.

            

    

    

    

    Section
17--Limited Product Warranty

    

    
      	
              17.1 
      

            	
              From
      the date of shipment to the DISTRIBUTOR, MANUFACTURER warrants, for
      eighteen months or twelve months from the date of installation, whichever
      occurs first, all specifically covered parts of the system including labor
      which is performed at BSD's facility in Salt Lake City,
    Utah.

            

    

    

    
      	
              17.2 
      

            	
              Limitations
      regarding quantity of probes and applicators as well as all other items
      covered by this warranty shall be governed by MANUFACTURER'S signed
      PRODUCTS quotation.

            

    

    

    

    
      Section
18--Confidential Disclosure

    

    

    
      	
              18.1 
      

            	
              The
      parties acknowledge that from time to time they have or will be required
      to disclose to each other TECHNOLOGY that is confidential, proprietary or
      secret, in the furtherance of the objects and covenant of this
      Agreement.  The parties acknowledge that the provisions of this
      Agreement are necessary to protect the confidentiality, value and secrecy
      thereof.

            

    

    

    
      	
              18.2 
      

            	
              The
      parties agree that they shall take reasonable precautions to preserve the
      confidential, proprietary or secret status of any such TECHNOLOGY
      disclosure.  Each party shall require that its employees and
      agents understand and agree in writing to treat and hold such TECHNOLOGY
      in confidence consistent with the provisions herein.  The
      parties further agree that they shall utilize all such TECHNOLOGY solely
      for furthering the objectives of this Agreement and they will not, either
      during or at any time subsequent to this Agreement, otherwise use such
      TECHNOLOGY for their own benefit or for the benefit of others; nor will
      either party publish or otherwise disclose such TECHNOLOGY to any other
      individual, firm or corporation without first obtaining written consent
      from the other party to this
Agreement.

            

    

     

    
 

    
      
        
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Medical Corporation - Confidential Document - Initials __________

           

        

        
           

          
            

          

        

        
           

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              18.3 
      

            	
              The
      obligations of this section shall survive termination of this Agreement,
      provided, however, that such obligations shall not apply
    to:

            

    

    

    
      	
               
      

            	
               
      (a) any information which was disclosed to the DISTRIBUTOR by a third
      party who is under no obligation of confidentiality to the MANUFACTURER or
      a to party in private or to the DISTRIBUTOR;
or,

            

    

    

    
      	
               
      

            	
               
      (b) any information that DISTRIBUTOR can reasonably demonstrate through
      documentation has become generally known through no fault of the
      MANUFACTURER to the trade or to public prior to or subsequent to the
      disclosure by DISTRIBUTOR.

            

    

    

    
      	
              18.4 
      

            	
              Within
      thirty (30) days from the date of termination of this Agreement as
      provided in section 6, DISTRIBUTOR shall furnish MANUFACTURER with written
      notice specifying that through reasonable care and to the best of its
      knowledge:

            

    

    

    
      	
               
      

            	
               
      (a) all TECHNOLOGY embodied in all printed documents and machine readable
      documentation and copies thereof, including any materials, documents,
      books, drawings, memoranda, files, blue prints, diagrams, customer lists,
      manufacturing procedures, know-how, testing data, studies, reports,
      evaluations, and any other materials or things of any value which
      constitute or embody any confidential, proprietary or secret TECHNOLOGY
      has been returned to MANUFACTURER;
and

            

    

    

    
      	
               
      

            	
                
      (b) the originals and all copies of any machine-readable documentation
      containing any portion of the TECHNOLOGY of the MANUFACTURER have been
      destroyed or returned to
MANUFACTURER.

            

    

    
 

    
 

    
      
        
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Medical Corporation - Confidential Document - Initials __________

           

        

        
           

          
            

          

        

        
           

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      Section
19--Non-Competition

    

    

    
      	
              19.1 
      

            	
              The
      DISTRIBUTOR further agrees that at no time during this Agreement or for
      five (5) years immediately following the termination of this Agreement,
      whether said termination is occasioned by the MANUFACTURER or the
      DISTRIBUTOR or the mutual agreement of the parties, will the DISTRIBUTOR
      for itself, or in behalf of any other person, persons, firm, partnership,
      corporation, or company, engage in directly or indirectly, solicit or
      attempt to solicit the business or patronage of any person, persons, firm,
      partnership, corporation, or company for the purpose of carrying on
      competitive business similar to that of the MANUFACTURER or perform such
      other incidental product sales, manufacturing or business services as is
      now engaged by the MANUFACTURER, nor will the said DISTRIBUTOR disclose to
      any person whomsoever any of the confidential information as contained in
      Section 18 used by the MANUFACTURER in or about its
    business.

            

    

    

    
      	
              19.2 
      

            	
              The
      DISTRIBUTOR shall purchase PRODUCT only from
      MANUFACTURER.  DISTRIBUTOR shall not purchase new or used
      PRODUCT or competitive products for resale into TERRITORY from
      MANUFACTURER’S previous customers or distributors outside of
      TERRITORY.  DISTRIBUTOR shall not remanufacture used PRODUCT
      taken in trade from its customers.

            

    

     
 

    Section
20--General Provisions

    

    
      	
              20.1 
      

            	
              The
      parties hereto have read this Agreement and agree to be bound by all its
      terms.  The parties further agree that this Agreement shall
      constitute the complete and exclusive statement of the Agreement between
      them and supersedes all proposals, oral or written, and all other
      communications between them relating to the TECHNOLOGY, including but not
      limited to; the inventions, technology, and know-how which are the subject
      matter of this Agreement.

            

    

    

    
      	
              20.2 
      

            	
              No
      agreement changing, modifying, amending, extending, superseding,
      discharging, or terminating this Agreement or any provisions hereof shall
      be valid unless it is in writing and is dated and signed by duly
      authorized representatives of the party or parties to be
      charged.

            

    

    

    
      	
              20.3 
      

            	
              The
      provisions of this Agreement are several, and in the event that any
      provision of this Agreement shall be held to be invalid, illegal, or
      unenforceable, the validity, legality, and the enforceability of the
      remaining provisions shall not in any way be affected or impaired
      thereby.

            

    

    
 

    
 

    
      
        
          BSD
Medical Corporation - Confidential Document - Initials __________

           

        

        
           

          
            

          

        

        
           

          Exclusive
Distributorship Agreement - Page 12

        

      

    

     

    
      	
              20.4 
      

            	
              Failure
      of any of the parties hereto to enforce any of the provisions of this
      Agreement or any rights with respect thereto or to exercise any election
      provided for herein, shall in no way be considered a waiver of such
      provisions, rights, or elections or in any way affect the validity of this
      Agreement.  No term provision hereof shall be deemed waived and
      no breach excused, unless such waiver or consent shall be in writing and
      signed by the party claimed to have waived or consented.  The
      failure by any of the parties hereto to enforce any of said provisions,
      rights, or elections shall not preclude or prejudice such party from later
      enforcing or exercising the same or in any other provisions, rights, or
      elections which it may have under this Agreement.  Any consent
      by any party to, or waiver of, a breach by the other, whether express or
      implied, shall not constitute a consent or waiver of, or excuse for any
      other, different or subsequent breach.  All remedies herein
      conferred upon any party shall be cumulative and no one shall be exclusive
      of any other remedy conferred herein by law or
  equity.

            

    

    

    
      	
              20.5 
      

            	
              This
      Agreement shall be binding not only upon the parties hereto, but also
      upon, without limitation thereto, their successors, heirs, devisees,
      divisions, subsidiaries, officers, directors, employees, and agents and
      any and all persons or entities in private with them or having notice of
      this Agreement.

            

    

    

    
      	
              20.6 
      

            	
              Time
      is of the essence in the performance of each and every obligation and
      covenant imposed by this Agreement.

            

    

    

    
      	
              20.7 
      

            	
              There
      shall be no liability on either party on account of any loss, damage, or
      delay occasioned or caused by strikes, riots, fires, insurrection, or the
      elements, embargoes, failure of carriers, acts of God or of the public
      enemy, compliance with any law, regulation, or other governmental order,
      or any other causes beyond the control of either party, whether or not
      similar to the foregoing.

            

    

    

    
      	
              20.8 
      

            	
              Except
      as provided elsewhere in this Agreement, all of the legal, accounting, and
      other miscellaneous expenses incurred in connection with this Agreement
      and the performance of the various provisions of this Agreement shall be
      paid by the party who incurred the
expense.

            

    

    

    
      	
              20.9 
      

            	
              All
      covenants, agreements, representations, and warranties made herein in
      writing in connection with this transaction shall survive after the
      closing date.

            

    

    

    
      	
              20.10 
      

            	
              Headings
      used in this Agreement are for reference purposes only and shall not be
      deemed a part of this Agreement.

            

    

    

    
      	
              20.11 
      

            	
              This
      Agreement may be executed in any number of counterparts, each of which
      shall be deemed an original, all of which constitute one and the same
      agreement.

            

    

     

    
 

    
      
        
          BSD
Medical Corporation - Confidential Document - Initials __________

           

        

        
           

          
            

          

        

        
           

          Exclusive
Distributorship Agreement - Page 13

        

      

    

     

    
      	
              20.12 
      

            	
              This
      Agreement is the entire agreement between the parties and supersedes and
      shall be substituted for each and every agreement with respect to
      distribution of MANUFACTURERS products, whether written, oral or otherwise
      in effect between DISTRIBTUOR and
MANUFACTURER.

            

    

    

    

    
      IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first mentioned above.

    

    

    
      BSD
Medical Corporation

    

    

    
      
        	
                By /s/ Harold
      Wolcott           
             

              	
                 By  /s/ Gerhard
      Sennewald           
      

              
	 
      	 
      
	
                Date 
      May 13,
      2009                       
      

              	
                Date
       May 13,
      2009                          
      

              

      

    

    

     

     

     

     

     

    
      BSD
Medical Corporation - Confidential Document - Initials
__________Exhibit 4.1

 

THE CORPORATEPLAN

 

FOR RETIREMENTSM

 

FIDELITY BASIC PLAN DOCUMENT NO. 02

THE CORPORATEPLAN

FOR RETIREMENTSM

 

	
  The
  CORPORATEplan for RetirementSM 

  	
  Basic Plan Document 02

  
	
   

  	
  10/9/2003

  

 

©2003 FMR Corp.

All rights reserved.

 

 

	
  Preamble.

  	
   

  
	
  Article 1. 
  Adoption Agreement.

  	
   

  
	
  Article 2. Definitions.

  	
   

  
	
  2.01.

  	
  Definitions

  	
  1

  
	
  2.02.

  	
  Pronouns

  	
  11

  
	
  2.03.

  	
  Special Effective Dates

  	
  11

  
	
  Article 3. Service.

  	
   

  
	
  3.01.

  	
  Crediting of Eligibility Service

  	
  11

  
	
  3.02.

  	
  Re-Crediting of Eligibility Service Following Termination of
  Employment

  	
  11

  
	
  3.03.

  	
  Crediting of Vesting Service

  	
  12

  
	
  3.04.

  	
  Application of Vesting Service to a Participant’s Account
  Following a Break in Vesting Service

  	
  12

  
	
  3.05.

  	
  Service with Predecessor Employer

  	
  12

  
	
  3.06.

  	
  Change in Service Crediting

  	
  12

  
	
  Article 4. Participation.

  	
   

  
	
  4.01.

  	
  Date of Participation

  	
  12

  
	
  4.02.

  	
  Transfers Out of Covered Employment

  	
  13

  
	
  4.03.

  	
  Transfers Into Covered Employment

  	
  13

  
	
  4.04.

  	
  Resumption of Participation Following Reemployment

  	
  13

  
	
  Article 5. Contributions.

  	
   

  
	
  5.01.

  	
  Contributions Subject to Limitations

  	
  14

  
	
  5.02.

  	
  Compensation Taken into Account in Determining
  Contributions

  	
  14

  
	
  5.03.

  	
  Deferral Contributions

  	
  14

  
	
  5.04.

  	
  Employee Contributions

  	
  15

  
	
  5.05.

  	
  No Deductible Employee Contributions

  	
  15

  
	
  5.06.

  	
  Rollover Contributions

  	
  15

  
	
  5.07.

  	
  Qualified Nonelective Employer Contributions

  	
  16

  
	
  5.08.

  	
  Matching Employer Contributions

  	
  17

  
	
  5.09.

  	
  Qualified Matching Employer Contributions

  	
  17

  
	
  5.10.

  	
  Nonelective Employer Contributions

  	
  17

  
	
  5.11.

  	
  Vested Interest in Contributions

  	
  19

  
	
  5.12.

  	
  Time for Making Contributions

  	
  20

  
	
  5.13.

  	
  Return of Employer Contributions

  	
  20

  
	
  Article 6. Limitations on Contributions.

  	
   

  
	
  6.01.

  	
  Special Definitions

  	
  20

  
	
  6.02.

  	
  Code Section 402(g) Limit on Deferral
  Contributions

  	
  27

  
	
  6.03.

  	
  Additional Limit on Deferral Contributions

  	
  27

  
	
  6.04.

  	
  Allocation and Distribution of “Excess Contributions”

  	
  28

  
	
  6.05.

  	
  Reductions in Deferral Contributions to Meet Code
  Requirements

  	
  29

  
	
  6.06.

  	
  Limit on Matching Employer Contributions and Employee
  Contributions

  	
  29

  
	
  6.07.

  	
  Allocation, Distribution, and Forfeiture of “Excess
  Aggregate Contributions”

  	
  30

  
	
  6.08.

  	
  Aggregate Limit on “Contribution Percentage Amounts” and
  “Includable Contributions”

  	
  30

  
	
  6.09.

  	
  Income or Loss on Distributable Contributions

  	
  31

  
	
  6.10.

  	
  Deemed Satisfaction of “ADP” Test 

  	
  31

  

 

ii

 

	
  6.11.

  	
  Deemed Satisfaction of “ACP” Test With Respect to Matching
  Employer Contributions

  	
  32

  
	
  6.12.

  	
  Code Section 415 Limitations

  	
  32

  
	
  Article 7. Participants’ Accounts.

  	
   

  
	
  7.01.

  	
  Individual Accounts

  	
  36

  
	
  7.02.

  	
  Valuation of Accounts

  	
  36

  
	
  Article 8. Investment of Contributions.

  	
   

  
	
  8.01.

  	
  Manner of Investment

  	
  36

  
	
  8.02.

  	
  Investment Decisions

  	
  36

  
	
  8.03.

  	
  Participant Directions to Trustee

  	
  37

  
	
  Article 9. Participant Loans.

  	
   

  
	
  9.01.

  	
  Special Definitions

  	
  38

  
	
  9.02.

  	
  Participant Loans

  	
  38

  
	
  9.03.

  	
  Separate Loan Procedures

  	
  38

  
	
  9.04.

  	
  Availability of Loans

  	
  38

  
	
  9.05.

  	
  Limitation on Loan Amount

  	
  38

  
	
  9.06.

  	
  Interest Rate

  	
  38

  
	
  9.07.

  	
  Level Amortization

  	
  39

  
	
  9.08.

  	
  Security

  	
  39

  
	
  9.09.

  	
  Transfer and Distribution of Loan Amounts from Permissible
  Investments

  	
  39

  
	
  9.10.

  	
  Default

  	
  39

  
	
  9.11.

  	
  Effect of Termination Where Participant has Outstanding
  Loan Balance

  	
  39

  
	
  9.12.

  	
  Deemed Distributions Under Code Section 72(p)

  	
  40

  
	
  9.13.

  	
  Determination of Account Value Upon Distribution Where Plan
  Loan is Outstanding 

  	
  40

  
	
  Article 10. In-Service Withdrawals.

  	
   

  
	
  10.01.

  	
  Availability of In-Service Withdrawals

  	
  41

  
	
  10.02.

  	
  Withdrawal of Employee Contributions

  	
  41

  
	
  10.03.

  	
  Withdrawal of Rollover Contributions

  	
  41

  
	
  10.04.

  	
  Age 59 1/2 Withdrawals

  	
  41

  
	
  10.05.

  	
  Hardship Withdrawals

  	
  41

  
	
  10.06.

  	
  Preservation of Prior Plan In-Service Withdrawal Rules

  	
  42

  
	
  10.07.

  	
  Restrictions on In-Service Withdrawals

  	
  43

  
	
  10.08.

  	
  Distribution of Withdrawal Amounts

  	
  43

  
	
  Article 11. Right to Benefits.

  	
   

  
	
  11.01.

  	
  Normal or Early Retirement

  	
  44

  
	
  11.02.

  	
  Late Retirement

  	
  44

  
	
  11.03.

  	
  Disability Retirement

  	
  44

  
	
  11.04.

  	
  Death

  	
  44

  
	
  11.05.

  	
  Other Termination of Employment 

  	
  44

  
	
  11.06.

  	
  Application for Distribution

  	
  45

  
	
  11.07.

  	
  Application of Vesting Schedule Following Partial
  Distribution

  	
  45

  
	
  11.08.

  	
  Forfeitures

  	
  45

  
	
  11.09.

  	
  Application of Forfeitures

  	
  46

  
	
  11.10.

  	
  Reinstatement of Forfeitures

  	
  46

  
	
  11.11.

  	
  Adjustment for Investment Experience

  	
  46

  

 

iii

 

	
  Article 12. Distributions.

  	
   

  
	
  12.01.

  	
  Restrictions on Distributions

  	
  47

  
	
  12.02.

  	
  Timing of Distribution Following Retirement or Termination
  of Employment

  	
  47

  
	
  12.03.

  	
  Participant Consent to Distribution 

  	
  47

  
	
  12.04.

  	
  Required Commencement of Distribution to Participants

  	
  48

  
	
  12.05.

  	
  Required Commencement of Distribution to Beneficiaries

  	
  48

  
	
  12.06.

  	
  Whereabouts of Participants and Beneficiaries

  	
  49

  
	
  Article 13. Form of Distribution.

  	
   

  
	
  13.01.

  	
  Normal Form of Distribution Under Profit Sharing Plan

  	
  49

  
	
  13.02.

  	
  Cash Out Of Small Accounts

  	
  50

  
	
  13.03.

  	
  Minimum Distributions

  	
  50

  
	
  13.04.

  	
  Direct Rollovers

  	
  51

  
	
  13.05.

  	
  Notice Regarding Timing and Form of Distribution

  	
  52

  
	
  13.06.

  	
  Determination of Method of Distribution

  	
  52

  
	
  13.07.

  	
  Notice to Trustee

  	
  53

  
	
  Article 14. Superseding Annuity Distribution
  Provisions.

  	
   

  
	
  14.01.

  	
  Special Definitions

  	
  53

  
	
  14.02.

  	
  Applicability

  	
  53

  
	
  14.03.

  	
  Annuity Form of Payment

  	
  53

  
	
  14.04.

  	
  “Qualified Joint and Survivor Annuity” and “Qualified
  Preretirement Survivor Annuity Requirements”

  	
  54

  
	
  14.05.

  	
  Waiver of the “Qualified Joint and Survivor Annuity” and/or
  “Qualified Preretirement Survivor Annuity Rights”

  	
  55

  
	
  14.06.

  	
  Spouse’s Consent to Waiver

  	
  55

  
	
  14.07.

  	
  Notice Regarding “Qualified Joint and Survivor Annuity”

  	
  56

  
	
  14.08.

  	
  Notice Regarding “Qualified Preretirement Survivor Annuity”

  	
  56

  
	
  14.09.

  	
  Former Spouse

  	
  56

  
	
  Article 15. Top-Heavy Provisions.

  	
   

  
	
  15.01.

  	
  Definitions

  	
  56

  
	
  15.02.

  	
  Application

  	
  58

  
	
  15.03.

  	
  Minimum Contribution

  	
  58

  
	
  15.04.

  	
  Modification of Allocation Provisions to Meet Minimum
  Contribution Requirements 

  	
  59

  
	
  15.05.

  	
  Adjustment to the Limitation on Contributions and Benefits

  	
  60

  
	
  15.06.

  	
  Accelerated Vesting

  	
  61

  
	
  15.07.

  	
  Exclusion of Collectively-Bargained Employees

  	
  61

  
	
  Article 16. Amendment and Termination.

  	
   

  
	
  16.01.

  	
  Amendments by the Employer that do Not Affect Prototype
  Status

  	
  61

  
	
  16.02.

  	
  Amendments by the Employer that Affect Prototype Status

  	
  62

  
	
  16.03.

  	
  Amendment by the Mass Submitter Sponsor and the Prototype
  Sponsor

  	
  62

  
	
  16.04.

  	
  Amendments Affecting Vested and/or Accrued Benefits

  	
  62

  
	
  16.05.

  	
  Retroactive Amendments

  	
  63

  
	
  16.06.

  	
  Termination

  	
  63

  
	
  16.07.

  	
  Distribution upon Termination of the Plan

  	
  63

  
	
  16.08.

  	
  Merger or Consolidation of Plan; Transfer of Plan Assets

  	
  63

  

 

iv

 

	
  Article 17. Amendment and Continuation of Prior
  Plan; Transfer of Funds to or from Other Qualified Plans.

  	
   

  
	
  17.01.

  	
  Amendment and Continuation of Prior Plan

  	
  64

  
	
  17.02.

  	
  Transfer of Funds from an Existing Plan

  	
  64

  
	
  17.03.

  	
  Acceptance of Assets by Trustee

  	
  66

  
	
  17.04.

  	
  Transfer of Assets from Trust

  	
  66

  
	
  Article 18. Miscellaneous.

  	
   

  
	
  18.01.

  	
  Communication to Participants

  	
  67

  
	
  18.02.

  	
  Limitation of Rights

  	
  67

  
	
  18.03.

  	
  Nonalienability of Benefits

  	
  67

  
	
  18.04.

  	
  Qualified Domestic Relations Orders Procedures

  	
  68

  
	
  18.05.

  	
  Additional Rules for Paired Plans 

  	
  68

  
	
  18.06.

  	
  Application of Plan Provisions in Multiple Employer Plans

  	
  68

  
	
  18.07.

  	
  Veterans Reemployment Rights

  	
  69

  
	
  18.08.

  	
  Facility of Payment

  	
  69

  
	
  18.09.

  	
  Information between Employer and Trustee

  	
  69

  
	
  18.10.

  	
  Effect of Failure to Qualify Under Code

  	
  69

  
	
  18.11.

  	
  Directions, Notices and Disclosure

  	
  69

  
	
  18.12.

  	
  Governing Law

  	
  70

  
	
  Article 19. Plan Administration.

  	
   

  
	
  19.01.

  	
  Powers and Responsibilities of the Administrator

  	
  70

  
	
  19.02.

  	
  Nondiscriminatory Exercise of Authority

  	
  70

  
	
  19.03.

  	
  Claims and Review Procedures

  	
  70

  
	
  19.04.

  	
  Named Fiduciary

  	
  71

  
	
  19.05.

  	
  Costs of Administration

  	
  71

  
	
  Article 20. Trust Agreement.

  	
   

  
	
  20.01.

  	
  Acceptance of Trust Responsibilities

  	
  71

  
	
  20.02.

  	
  Establishment of Trust Fund

  	
  72

  
	
  20.03.

  	
  Exclusive Benefit

  	
  72

  
	
  20.04.

  	
  Powers of Trustee

  	
  72

  
	
  20.05.

  	
  Accounts

  	
  73

  
	
  20.06.

  	
  Approval of Accounts

  	
  74

  
	
  20.07.

  	
  Distribution from Trust Fund

  	
  74

  
	
  20.08.

  	
  Transfer of Amounts from Qualified Plan

  	
  74

  
	
  20.09.

  	
  Transfer of Assets from Trust

  	
  74

  
	
  20.10.

  	
  Separate Trust or Fund for Existing Plan Assets

  	
  74

  
	
  20.11.

  	
  Self-Directed Brokerage Option

  	
  75

  
	
  20.12.

  	
  Employer Stock Investment Option

  	
  76

  
	
  20.13.

  	
  Voting; Delivery of Information

  	
  81

  
	
  20.14.

  	
  Compensation and Expenses of Trustee

  	
  81

  
	
  20.15.

  	
  Reliance by Trustee on Other Persons

  	
  81

  
	
  20.16.

  	
  Indemnification by Employer

  	
  82

  
	
  20.17.

  	
  Consultation by Trustee with Counsel

  	
  82

  
	
  20.18.

  	
  Persons Dealing with the Trustee

  	
  82

  
	
  20.19.

  	
  Resignation or Removal of Trustee

  	
  82

  
	
  20.20.

  	
  Fiscal Year of the Trust

  	
  83

  

 

v

 

	
  20.21.

  	
  Discharge of Duties by Fiduciaries

  	
  83

  
	
  20.22.

  	
  Amendment

  	
  83

  
	
  20.23.

  	
  Plan Termination

  	
  83

  
	
  20.24.

  	
  Permitted Reversion of Funds to Employer

  	
  83

  
	
  20.25.

  	
  Governing Law

  	
  84

  

 

vi

 

Preamble.

 

This
prototype plan consists of three parts:  (1) an
Adoption Agreement that is a separate document incorporated by reference into
this Basic Plan Document; (2) this Basic Plan Document; and (3) a
Trust Agreement that is a part of this Basic Plan Document and is found in Article 20.
Each part of the prototype plan contains substantive provisions that are
integral to the operation of the plan. The Adoption Agreement is the means by
which an adopting Employer elects the optional provisions that shall apply
under its plan. The Basic Plan Document describes the standard provisions
elected in the Adoption Agreement. The Trust Agreement describes the powers and
duties of the Trustee with respect to plan assets.

 

The
prototype plan is intended to qualify under Code Section 401(a). Depending
upon the Adoption Agreement completed by an adopting Employer, the prototype
plan may be used to implement a money purchase pension plan, a profit sharing
plan, or a profit sharing plan with a cash or deferred arrangement intended to
qualify under Code Section 401(k).

 

Article 1. Adoption Agreement.

 

Article 2. Definitions.

 

2.01. Definitions.  Wherever used herein, the following terms
have the meanings set forth below, unless a different meaning is clearly
required by the context:

 

(a) 
“Account” means an account
established for the purpose of recording any contributions made on behalf of a
Participant and any income, expenses, gains, or losses incurred thereon. The
Administrator shall establish and maintain sub-accounts within a Participant’s
Account as necessary to depict accurately a Participant’s interest under the
Plan.

 

(b) 
“Active Participant” means any
Eligible Employee who has met the requirements of Article 4 to participate
in the Plan and who may be entitled to receive allocations under the Plan.

 

(c) 
“Administrator” means the Employer
adopting this Plan, as listed in Subsection 1.02(a) of the Adoption
Agreement, or any other person designated by the Employer in Subsection 1.01(c) of
the Adoption Agreement.

 

(d) 
“Adoption Agreement” means Article 1,
under which the Employer establishes and adopts, or amends the Plan and Trust
and designates the optional provisions selected by the Employer, and the
Trustee accepts its responsibilities under Article 20. The provisions of
the Adoption Agreement shall be an integral part of the Plan.

 

(e) 
“Annuity Starting Date” means the
first day of the first period for which an amount is payable as an annuity or
in any other form permitted under the Plan.

 

(f) 
“Basic Plan Document” means this
Fidelity prototype plan document, qualified with the National Office of the
Internal Revenue Service as Basic Plan Document No. 02.

 

(g) 
“Beneficiary” means the person or
persons (including a trust) entitled under Section 11.04 or 14.04 to
receive benefits under the Plan upon the death of a Participant; provided,
however, that for purposes of 

 

1

 

Section 13.03
such term shall be applied in accordance with Code Section 401(a)(9) and
the regulations thereunder.

 

(h) 
“Break in Vesting Service” means a
12-consecutive-month period beginning on an Employee’s Severance Date or any
anniversary thereof in which the Employee is not credited with an Hour of
Service.

 

Notwithstanding the foregoing, the following special
rules apply in determining whether an Employee who is on leave has
incurred a Break in Vesting Service:

 

(1) 
If an individual is absent from work because of “maternity/ paternity leave”
beyond the first anniversary of his Severance Date, the 12-consecutive-month
period beginning on the individual’s Severance Date shall not constitute a
Break in Vesting Service. For purposes of this paragraph, “maternity/paternity
leave” means a leave of absence (A) by reason of the pregnancy of the
individual, (B) by reason of the birth of a child of the individual, (C) by
reason of the placement of a child with the individual in connection with the
adoption of such child by the individual, or (D) for purposes of caring
for a child for the period beginning immediately following such birth or placement.

 

(2) 
If an individual is absent from work because of “FMLA leave” and returns to
employment with the Employer or a Related Employer following such “FMLA leave”,
he shall not incur a Break in Vesting Service during any 12-consecutive-month
period beginning on his Severance Date or anniversaries thereof in which he is
absent because of such “FMLA leave”. For purposes of this paragraph, “FMLA
leave” means an approved leave of absence pursuant to the Family and Medical
Leave Act of 1993.

 

(i) 
“Code” means the Internal Revenue
Code of 1986, as amended from time to time.

 

(j) 
“Compensation” means wages as
defined in Code Section 3401(a) and all other payments of
compensation to an Eligible Employee by the Employer (in the course of the
Employer’s trade or business) for services to the Employer while employed as an
Eligible Employee for which the Employer is required to furnish the Eligible
Employee a written statement under Code Sections 6041(d) and 6051(a)(3).
Compensation must be determined without regard to any rules under Code Section 3401(a) that
limit the remuneration included in wages based on the nature or location of the
employment or the services performed (such as the exception for agricultural
labor in Code Section 3401(a)(2)).

 

For any Self-Employed Individual, Compensation means
Earned Income; provided, however, that if the Employer elects to exclude
specified items from Compensation, such Earned Income shall be adjusted in a
similar manner so that it is equivalent under regulations issued under Code Section 414(s) to
Compensation for Participants who are not Self-Employed Individuals.

 

Compensation shall generally be based on the amount
actually paid to the Eligible Employee during the Plan Year or, for purposes of
Articles 5 (and, for Plan Years beginning prior to January 1, 2003, Article 15)
so elected by the Employer in Subsection 1.05(c) of the Adoption
Agreement, during that portion of the Plan Year during which the Eligible
Employee is an Active Participant. Notwithstanding the preceding sentence,
Compensation for purposes of Section 6.12 (Code Section 415 

 

2

 

Limitations)
shall be based on the amount actually paid or made available to the Participant
during the Limitation Year.

 

If the initial Plan Year of a new plan consists of
fewer than 12 months, calculated from the Effective Date listed in Subsection
1.01(g)(1) of the Adoption Agreement through the end of such initial Plan
Year, Compensation for such initial Plan Year shall be determined as follows:

 

(1) If
the Plan is a profit sharing plan, for purposes of allocating Nonelective
Employer Contributions under Section 1.11 of the Adoption Agreement (other
than Nonelective Employer Contributions made in accordance with the Safe Harbor
Nonelective Employer Contributions Addendum to the Adoption Agreement) and
determining Highly Compensated Employees under Subsection 2.01(z), the initial
Plan Year shall be the 12-month period ending on the last day of the Plan Year.

 

(2) 
For purposes of Section 6.12 (Code Section 415 Limitations) where the
Limitation Year is based on the Plan Year, the Limitation Year shall be the
12-month period ending on the last day of the Plan Year.

 

(3) 
For all other purposes, the initial Plan Year shall be the period from the
Effective Date listed in Subsection 1.01(g)(1) of the Adoption Agreement
through the end of the initial Plan Year.

 

The annual Compensation of each Active Participant
taken into account for determining benefits provided under the Plan for any determination
period shall not exceed the annual Compensation limit under Code Section 401(a)(17)
as in effect on the first day of the determination period. This limit shall be
adjusted by the Secretary to reflect increases in the cost of living, as
provided in Code Section 401(a)(17)(B); provided, however, that the dollar
increase in effect on January 1 of any calendar year is effective for
determination periods beginning in such calendar year. If a Plan determines
Compensation over a determination period that contains fewer than 12 calendar
months (a “short determination period”), then the Compensation limit for such
“short determination period” is equal to the Compensation limit for the
calendar year in which the “short determination period” begins multiplied by
the ratio obtained by dividing the number of full months in the “short
determination period” by 12; provided, however, that such proration shall not
apply if there is a “short determination period” because (i) the Employer
elected in Subsection 1.05(c) of the Adoption Agreement to determine
contributions based only on Compensation paid during the portion of the Plan
Year during which an individual was an Active Participant, (ii) an
Employee is covered under the Plan less than a full Plan Year, or (iii) Deferral
Contributions and/or Matching Employer Contributions are contributed for each
pay period during the Plan Year and are based on Compensation for that pay
period.

 

(k) 
“Contribution Period” means the
period for which Matching Employer and Nonelective Employer Contributions are
made and calculated. The Contribution Period for additional Matching Employer
Contributions, as described in Subsection 1.10(b) of the Adoption
Agreement and Nonelective Employer Contributions is the Plan Year. The
Contribution Period for basic Matching Employer Contributions, as described in
Subsection 1.10(a) of the Adoption Agreement, is the period specified by the
Employer in Subsection 1.10(c) of the Adoption Agreement.

 

(l) 
“Deferral Contribution” means any
contribution made to the Plan by the Employer in accordance with the provisions
of Section 5.03.

 

3

 

(m) 
“Early Retirement Age” means the
early retirement age specified in Subsection 1.13(b) of the Adoption
Agreement, if any.

 

(n) 
“Earned Income” means the net
earnings of a Self-Employed Individual derived from the trade or business with
respect to which the Plan is established and for which the personal services of
such individual are a material income-providing factor, excluding any items not
included in gross income and the deductions allocated to such items, except
that net earnings shall be determined with regard to the deduction allowed
under Code Section 164(f), to the extent applicable to the Employer. Net
earnings shall be reduced by contributions of the Employer to any qualified
plan, to the extent a deduction is allowed to the Employer for such
contributions under Code Section 404.

 

(o) 
“Effective Date” means the
effective date specified by the Employer in Subsection 1.01(g)(1) or (2) of
the Adoption Agreement with respect to the Plan, if this is a new plan, or with
respect to the amendment and restatement, if this is an amendment and
restatement of the Plan. The Employer may select special Effective Dates with
respect to specified Plan provisions, as set forth in Section (a) of
the Special Effective Dates Addendum to the Adoption Agreement. In the event
that another plan is merged into and made a part of the Plan, the effective
date of the merger shall be reflected in Section (b) of the Special
Effective Dates Addendum to the Adoption Agreement.

 

If
this is an amendment and restatement of the Plan, and the Plan was not amended
prior to the effective date specified by the Employer in Subsection 1.01(g)(2) of
the Adoption Agreement to comply with the requirements of the Acts specified in
the Snap Off Addendum to the Adoption Agreement, the effective dates specified
in such Snap Off Addendum shall apply with respect to those provisions
specified therein. Such effective dates may be earlier than the date specified
in Subsection 1.01(g)(2) of the Adoption Agreement.

 

(p) 
“Eligibility Computation Period”
means each 12-consecutive-month period beginning with an Employee’s Employment
Commencement Date and each anniversary thereof.

 

(q) 
“Eligibility Service” means an
Employee’s service that is taken into account in determining his eligibility to
participate in the Plan as may be required under Subsection 1.04(b) of the
Adoption Agreement. Eligibility Service shall be credited in accordance with Article 3.

 

(r) 
“Eligible Employee” means any
Employee of the Employer who is in the class of Employees eligible to
participate in the Plan. The Employer must specify in Subsection 1.04(c) of
the Adoption Agreement any Employee or class of Employees not eligible to
participate in the Plan. If Article 1 of the Employer’s Plan is a
Non-Standardized Adoption Agreement, regardless of the Employer’s selection in
Subsection  1.04(c) of the Adoption
Agreement,  the following Employees are
automatically excluded from eligibility to participate in the Plan:

 

(1) 
any individual who is a signatory to a contract, letter of agreement, or other
document that acknowledges his status as an independent contractor not entitled
to benefits under the Plan or who is not otherwise classified by the Employer
as a common law employee and with respect to whom the Employer does not withhold
income taxes and file Form W-2 (or any replacement Form), with the
Internal Revenue Service and does not remit Social Security payments to the
Federal government, even if such individual is later adjudicated to be a common
law employee; and

 

4

 

(2) 
any Employee who is a resident of Puerto Rico.

 

If the Employer elects to exclude collective
bargaining employees from the eligible class, the exclusion applies to any
Employee of the Employer included in a unit of Employees covered by an
agreement which the Secretary of Labor finds to be a collective bargaining
agreement between employee representatives and one or more employers, unless
the collective bargaining agreement requires the Employee to be covered under
the Plan. The term “employee representatives” does not include any organization
more than half the members of which are owners, officers, or executives of the
Employer.

 

If the Employer does not elect to exclude Leased
Employees from the eligible class, contributions or benefits provided by the
leasing organization which are attributable to services performed for the
Employer shall be treated as provided by the Employer and there shall be no
duplication of benefits under this Plan.

 

(s) 
“Employee” means any common law
employee of the Employer or a Related Employer, any Self-Employed Individual,
and any Leased Employee. Notwithstanding the foregoing, a Leased Employee shall
not be considered an Employee if Leased Employees do not constitute more than
20 percent of the Employer’s non-highly compensated work-force (taking into
account all Related Employers) and the Leased Employee is covered by a money
purchase pension plan maintained by the leasing organization and providing (1) a
nonintegrated employer contribution rate of at least 10 percent of
compensation, as defined for purposes of Code Section 415(c)(3), but
including amounts contributed pursuant to a salary reduction agreement which
are excludable from gross income under Code Section 125, 132(f)(4), 402(e)(3),
402(h) or 403(b), (2) full and immediate vesting, and (3) immediate
participation by each employee of the leasing organization.

 

(t) 
“Employee Contribution” means any
after-tax contribution made by an Active Participant to the Plan.

 

(u) 
“Employer” means the employer
named in Subsection 1.02(a) of the Adoption Agreement and any Related
Employer included as an Employer under this Subsection 2.01(u). If Article 1
of the Employer’s Plan is a Standardized Adoption Agreement, the term
“Employer” includes all Related Employers; provided, however, that if an
employer becomes a Related Employer as a result of an asset or stock
acquisition, merger or other similar transaction, the term “Employer” shall not
include such employer for periods prior to the earlier of (1) the date as
of which Subsection 1.02(b) of the Adoption Agreement is amended to name
such employer or (2) the first day of the second Plan Year beginning after
the date of such transaction. If Article 1 of the Employer’s Plan is a
Non-Standardized Adoption Agreement, the term “Employer” includes only those
Related Employers designated in Subsection 1.02(b) of the Adoption
Agreement.

 

If the organization or other entity named in the
Adoption Agreement is a sole proprietor or a professional corporation and the
sole proprietor of such proprietorship or the sole shareholder of the
professional corporation dies, then the legal representative of such sole
proprietor or shareholder shall be deemed to be the Employer until such time
as, through the disposition of such sole proprietor’s or sole shareholder’s
estate or otherwise, any organization or other entity succeeds to the interests
of the sole proprietor in the proprietorship or the sole shareholder in the
professional corporation. The legal representative of a sole proprietor or
shareholder shall be (1) the person appointed as such by the sole

 

5

 

proprietor
or shareholder prior to his death under a legally enforceable power of
attorney, or, if none, (2) the executor or administrator of the sole
proprietor’s or shareholder’s estate.

 

If one of the Employers designated in Subsection
1.02(b) of the Adoption Agreement is not a Related Employer, the term
“Employer” includes such un-Related Employer and the provisions of Section 18.06
shall apply.

 

(v) 
“Employment Commencement Date”
means the date on which an Employee first performs an Hour of Service.

 

(w) 
“Entry Date” means the date
specified by the Employer in Subsection 1.04(d) or (e) of the
Adoption Agreement as of which an Eligible Employee who has met the applicable
eligibility requirements begins to participate in the Plan. The Employer may
specify different Entry Dates for purposes of eligibility to participate in the
Plan by (1) making Deferral Contributions and (2) receiving
allocations of Matching and/or Nonelective Employer Contributions.

 

(x) 
“ERISA” means the Employee
Retirement Income Security Act of 1974, as from time to time amended.

 

(y) 
“Fund Share” means the share,
unit, or other evidence of ownership in a Permissible Investment.

 

(z) 
“Highly Compensated Employee”
means both highly compensated active Employees and highly compensated former
Employees.

 

A highly compensated active Employee includes any
Employee who performs service for the Employer during the “determination year”
and who (1) at any time during the “determination year” or the “look-back
year” was a five percent owner or (2) received Compensation from the
Employer during the “look-back year” in excess of $80,000 (as adjusted pursuant
to Code Section 415(d)) and, if elected by the Employer in Section 1.06
of the Adoption Agreement, was a member of the top-paid group for such year.

 

For this purpose, the “determination year” shall be
the Plan Year. The “look-back year” shall be the twelve-month period
immediately preceding the “determination year”, unless the Employer has elected
in Section 1.06 of the Adoption Agreement to make the “look-back year” the
calendar year beginning within the preceding Plan Year.

 

A highly compensated former Employee includes any
Employee who separated from service (or was deemed to have separated) prior to
the “determination year”, performs no service for the Employer during the
“determination year”, and was a highly compensated active Employee for either
the separation year or any “determination year” ending on or after the
Employee’s 55th birthday, as determined under the rules in effect for
determining Highly Compensated Employees for such separation year or
“determination year”.

 

The determination of who is a Highly Compensated
Employee, including the determinations of the number and identity of Employees
in the top-paid group, shall be made in accordance with Code Section 414(q) and
the Treasury Regulations issued thereunder.

 

6

 

For purposes of this Subsection 2.01(z),
Compensation shall include amounts that are not includable in the gross income
of an Employee under a salary reduction agreement by reason of the application
of Code Section 125, 132(f)(4), 402(e)(3), 402(h), or 403(b).

 

(aa)  “Hour of
Service”, with respect to any individual, means:

 

(1) 
Each hour for which the individual is directly or indirectly paid, or entitled
to payment, for the performance of duties for the Employer or a Related Employer,
each such hour to be credited to the individual for the Eligibility Computation
Period in which the duties were performed;

 

(2) 
Each hour for which the individual is directly or indirectly paid, or entitled
to payment, by the Employer or a Related Employer (including payments made or
due from a trust fund or insurer to which the Employer contributes or pays
premiums) on account of a period of time during which no duties are performed
(irrespective of whether the employment relationship has terminated) due to
vacation, holiday, illness, incapacity, disability, layoff, jury duty, military
duty, or leave of absence, each such hour to be credited to the individual for
the Eligibility Computation Period in which such period of time occurs, subject
to the following rules:

 

(A) 
No more than 501 Hours of Service shall be credited under this paragraph (2) on
account of any single continuous period during which the individual performs no
duties, unless the individual performs no duties because of military duty, the
individual’s employment rights are protected by law, and the individual returns
to employment with the Employer or a Related Employer during the period that
his employment rights are protected under Federal law;

 

(B) 
Hours of Service shall not be credited under this paragraph (2) for a
payment which solely reimburses the individual for medically-related expenses,
or which is made or due under a plan maintained solely for the purpose of
complying with applicable worker’s compensation, unemployment compensation or
disability insurance laws; and

 

(C) 
If the period during which the individual performs no duties falls within two
or more Eligibility Computation Periods and if the payment made on account of
such period is not calculated on the basis of units of time, the Hours of
Service credited with respect to such period shall be allocated between not
more than the first two such Eligibility Computation Periods on any reasonable
basis consistently applied with respect to similarly situated individuals;

 

(3)   Each hour not counted under paragraph (1) or
(2) for which he would have been scheduled to work for the Employer or a
Related Employer during the period that he is absent from work because of
military duty, provided the individual’s employment rights are protected under
Federal law and the individual returns to work with the Employer or a Related
Company during the period that his employment rights are protected, each such
hour to be credited to the individual for the Eligibility Computation Period for
which he would have been scheduled to work; and

 

(4) 
Each hour not counted under paragraph (1), (2), or (3) for which back pay,
irrespective of mitigation of damages, has been either awarded or agreed to be
paid by the Employer or a Related Employer, shall be credited to the individual
for the Eligibility Computation Period to which the 

 

7

 

award
or agreement pertains rather than the Eligibility Computation Period in which
the award, agreement, or payment is made.

 

For purposes of paragraphs (2) and (4) above,
Hours of Service shall be calculated in accordance with the provisions of Section 2530.200b-2(b) of
the Department of Labor regulations, which are incorporated herein by
reference.

 

Notwithstanding any other provision of this
Subsection to the contrary, the Employer may elect to credit Hours of Service
in accordance with any of the equivalencies set forth in paragraphs (d), (e),
or (f) of Department of Labor Regulations Section 2530.200b-3.

 

(bb)  “Inactive
Participant” means any individual who was an Active Participant, but
is no longer an Eligible Employee and who has an Account under the Plan.

 

(cc)  “Leased
Employee” means any individual who provides services to the Employer
or a Related Employer (the “recipient”) but is not otherwise an employee of the
recipient if (1) such services are provided pursuant to an agreement
between the recipient and any other person (the “leasing  organization”), (2) such individual has
performed services for the recipient (or for the recipient and any related
persons within the meaning of Code Section 414(n)(6)) on a substantially
full-time basis for at least one year, and (3) such services are performed
under primary direction of or control by the recipient. The determination of
who is a Leased Employee shall be made in accordance with any rules and
regulations issued by the Secretary of the Treasury or his delegate.

 

(dd)  “Limitation
Year” means the 12-consecutive-month period designated by the
Employer in Subsection 1.01(f) of the Adoption Agreement. If no other
Limitation Year is designated by the Employer, the Limitation Year shall be the
calendar year. All qualified plans of the Employer and any Related Employer
must use the same Limitation Year. If the Limitation Year is amended to a
different 12-consecutive-month period, the new Limitation Year must begin on a
date within the Limitation Year in which the amendment is made.

 

(ee)  “Matching
Employer Contribution” means any contribution made by the Employer
to the Plan in accordance with Section 5.08 or 5.09 on account of an
Active Participant’s Deferral Contributions.

 

(ff)  “Mass
Submitter Sponsor” means Fidelity Management & Research
Company or its successor.

 

(gg)  “Nonelective
Employer Contribution” means any contribution made by the Employer
to the Plan in accordance with Section 5.10.

 

(hh)  “Non-Highly
Compensated Employee” means any Employee who is not a Highly
Compensated Employee.

 

(ii) 
“Normal Retirement Age” means the
normal retirement age specified in Subsection 1.13(a) of the Adoption
Agreement. If the Employer enforces a mandatory retirement age in accordance
with Federal law, the Normal Retirement Age is the lesser of that mandatory age
or the age specified in Subsection 1.13(a) of the Adoption Agreement.

 

(jj)  “Participant”
means any individual who is either an Active Participant or an Inactive
Participant.

 

8

 

(kk)  “Permissible
Investment” means the investments specified by the Employer as
available for investment of assets of the Trust and agreed to by the Trustee
and the Prototype Sponsor. The Permissible Investments under the Plan shall be
listed in the Service Agreement.

 

(ll)  “Plan”
means the plan established by the Employer in the form of the prototype plan,
as set forth herein as a new plan or as an amendment to an existing plan, by
executing the Adoption Agreement, together with any and all amendments hereto.

 

(mm)  “Plan Year”
means the 12-consecutive-month period ending on the date designated by the
Employer in Subsection 1.01(d) of the Adoption Agreement, except that the
initial Plan Year of a new Plan may consist of fewer than 12 months, calculated
from the Effective Date listed in Subsection 1.01(g)(1) of the Adoption
Agreement through the end of such initial Plan Year, in which event
Compensation for such initial Plan Year shall be treated as provided in
Subsection 2.01(j).

 

(nn)  “Prototype
Sponsor” means Fidelity Management & Research Company or
its successor.

 

(oo)  “Qualified
Matching Employer Contribution” means any contribution made by the
Employer to the Plan on account of Deferral Contributions or Employee
Contributions made by or on behalf of Active Participants in accordance with Section 5.09,
that may be included in determining whether the Plan meets the “ADP” test
described in Section 6.03.

 

(pp)  “Qualified
Nonelective Employer Contribution” means any contribution made by
the Employer to the Plan on behalf of Non-Highly Compensated Employees in
accordance with Section 5.07, that may be included in determining whether
the Plan meets the “ADP” test described in Section 6.03 or the “ACP” test
described in Section 6.06.

 

(qq)  “Reemployment
Commencement Date” means the date on which an Employee who
terminates employment with the Employer and all Related Employers first
performs an Hour of Service following such termination of employment.

 

(rr)  “Related
Employer” means any employer other than the Employer named in
Subsection 1.02(a) of the Adoption Agreement if the Employer and such other
employer are members of a controlled group of corporations (as defined in Code Section 414(b))
or an affiliated service group (as defined in Code Section 414(m)), or are
trades or businesses (whether or not incorporated) which are under common
control (as defined in Code Section 414(c)), or such other employer is
required to be aggregated with the Employer pursuant to regulations issued
under Code Section 414(o); provided, however, that if Article 1 of
the Employer’s Plan is a Standardized Adoption Agreement, for purposes of
Subsection 1.02(b) of the Adoption Agreement, the term “Related Employer”
shall not include any employer that becomes a Related Employer as a result of
an asset or stock acquisition, merger or other similar transaction with respect
to any period prior to the earlier of (1) the date as of which Subsection
1.02(b) of the Adoption Agreement is amended to name such employer or (2) the
first day of the second Plan Year beginning after the date of such transaction.

 

(ss)  “Required
Beginning Date” means:

 

9

 

(1) 
for a Participant who is not a five percent owner, April 1 of the calendar
year following the calendar year in which occurs the later of (i) the
Participant’s retirement or (ii) the Participant’s attainment of age 70
1/2; provided, however, that a Participant may elect to have his Required
Beginning Date determined without regard to the provisions of clause (i).

 

(2) 
for a Participant who is a five percent owner, April 1 of the calendar
year following the calendar year in which the Participant attains age 70 1/2.

 

Once the Required Beginning Date of a five percent
owner or a Participant who has elected to have his Required Beginning Date
determined in accordance with the provisions of Section 2.01(ss)(1)(ii) has
occurred, such Required Beginning Date shall not be re-determined, even if the
Participant ceases to be a five percent owner in a subsequent year or continues
in employment with the Employer or a Related Employer.

 

For purposes of this Subsection 2.01(ss), a
Participant is treated as a five percent owner if such Participant is a five
percent owner as defined in Code Section 416(i) (determined in
accordance with Code Section 416 but without regard to whether the Plan is
top-heavy) at any time during the Plan Year ending with or within the calendar
year in which such owner attains age 70 1/2.

 

(tt)  “Rollover
Contribution” means any distribution from a qualified plan (or an
individual retirement account holding only assets allocable to a distribution
from a qualified plan) that an Employee elects to contribute to the Plan in
accordance with the provisions of Section 5.06.

 

(uu)  “Self-Employed
Individual” means an individual who has Earned Income for the
taxable year from the Employer or who would have had Earned Income but for the
fact that the trade or business had no net profits for the taxable year,
including, but not limited to, a partner in a partnership, a sole proprietor, a
member in a limited liability company or a shareholder in a subchapter S
corporation.

 

(vv)  “Service
Agreement” means the agreement between the Employer and the
Prototype Sponsor (or an agent or affiliate of the Prototype Sponsor) relating
to the provision of investment and other services to the Plan and shall include
any addendum to the agreement and any other separate written agreement between
the Employer and the Prototype Sponsor (or an agent or affiliate of the
Prototype Sponsor) relating to the provision of services to the Plan.

 

(ww)  “Severance
Date” means the earlier of (i) the date an Employee retires,
dies, quits, or is discharged from employment with the Employer and all Related
Employers or (ii) the 12-month anniversary of the date on which the
Employee was otherwise first absent from employment; provided, however, that if
an individual terminates or is absent from employment with the Employer and all
Related Employers because of military duty, such individual shall not incur a
Severance Date if his employment rights are protected under Federal law and he
returns to employment with the Employer or a Related Employer within the period
during which he retains such employment rights, but, if he does not return to
such employment within such period, his Severance Date shall be the earlier of (1) the
anniversary of the date his absence commenced or (2) the last day of the
period during which he retains such employment rights.

 

(xx)  “Trust”
means the trust created by the Employer in accordance with the provisions of Section 20.01.

 

10

 

(yy)  “Trust
Agreement” means the agreement between the Employer and the Trustee,
as set forth in Article 20, under which the assets of the Plan are held,
administered, and managed.

 

(zz)  “Trustee”
means Fidelity Management Trust Company or its successor. The term Trustee
shall include any delegate of the Trustee as may be provided in the Trust
Agreement.

 

(aaa)  “Trust Fund”
means the property held in Trust by the Trustee for the Accounts of
Participants and their Beneficiaries.

 

(bbb)  “Vesting
Service” means an Employee’s service that is taken into account in
determining his vested interest in his Matching Employer and Nonelective
Employer Contributions Accounts as may be required under Section 1.15 of
the Adoption Agreement. Vesting Service shall be credited in accordance with Article 3.

 

2.02. Pronouns.  Pronouns used in the Plan are in the
masculine gender but include the feminine gender unless the context clearly
indicates otherwise.

 

2.03. Special Effective Dates.  Some provisions of the Plan are only
effective beginning as of a specified date or until a specified date. Any such
special effective dates are specified within Plan text where applicable and are
exceptions to the general Plan Effective Date as defined in Section 2.01(o).

 

Article 3. Service.

 

3.01. Crediting of Eligibility Service.  If the Employer has selected an Eligibility
Service requirement in Subsection 1.04(b) of the Adoption Agreement for an
Eligible Employee to become an Active Participant, Eligibility Service shall be
credited to an Employee as follows:

 

(a) 
If the Employer has selected the one or two year(s) of Eligibility Service
requirement described in Subsection 1.04(b)(1)(C) or (D) of the
Adoption Agreement, an Employee shall be credited with a year of Eligibility
Service for each Eligibility Computation Period during which the Employee has
been credited with at least 1,000 Hours of Service.

 

(b) 
If the Employer has selected the months of Eligibility Service requirement
described in Subsection 1.04(b)(1)(B) of the Adoption Agreement, an
Employee shall be credited with Eligibility Service for the aggregate of the
periods beginning with the Employee’s Employment Commencement Date (or
Reemployment Commencement Date) and ending on his subsequent Severance Date;
provided, however, that an Employee who has a Reemployment Date within the
12-consecutive-month period following the earlier of the first date of his
absence or his Severance Date shall be credited with Eligibility Service for
the period between his Severance Date and his Reemployment Date. Months of
Eligibility Service shall be measured from the Employee’s Employment
Commencement Date or Reemployment Commencement Date to the coinciding date in
the applicable following month.

 

3.02. Re-Crediting of Eligibility Service Following
Termination of Employment. An Employee whose
employment with the Employer and all Related Employers terminates and who is
subsequently reemployed by the Employer or a Related Employer shall be
re-credited upon reemployment with his Eligibility Service earned prior to his
termination of employment.

 

11

 

3.03. Crediting of Vesting Service.  If the Plan provides for Matching Employer
and/or Nonelective Employer Contributions that are not 100 percent vested when
made, Vesting Service shall be credited to an Employee for the aggregate of the
periods beginning with the Employee’s Employment Commencement Date (or
Reemployment Commencement Date) and ending on his subsequent Severance Date;
provided, however, that an Employee who has a Reemployment Date within the
12-consecutive-month period following the earlier of the first date of his
absence or his Severance Date shall be credited with Vesting Service for the
period between his Severance Date and his Reemployment Date. Fractional periods
of a year shall be expressed in terms of days.

 

3.04. Application of Vesting Service to a Participant’s
Account Following a Break in Vesting Service.  The following rules describe how Vesting
Service earned before and after a Break in Vesting Service shall be applied for
purposes of determining a Participant’s vested interest in his Matching
Employer and Nonelective Employer Contributions Accounts.

 

(a) 
If a Participant incurs five-consecutive Breaks in Vesting Service, all years
of Vesting Service earned by the Employee after such Breaks in Service shall be
disregarded in determining the Participant’s vested interest in his Matching
Employer and Nonelective Employer Contributions Account balances attributable
to employment before such Breaks in Vesting Service. However, Vesting Service
earned both before and after such Breaks in Vesting Service shall be included
in determining the Participant’s vested interest in his Matching Employer and
Nonelective Employer Contributions Account balances attributable to employment
after such Breaks in Vesting Service.

 

(b) 
If a Participant incurs fewer than five-consecutive Breaks in Vesting Service,
Vesting Service earned both before and after such Breaks in Vesting Service
shall be included in determining the Participant’s vested interest in his
Matching Employer and Nonelective Employer Contributions Account balances
attributable to employment both before and after such Breaks in Vesting
Service.

 

3.05. Service with Predecessor Employer.  If the Plan is the plan of a predecessor
employer, an Employee’s Eligibility and Vesting Service shall include years of
service with such predecessor employer. In any case in which the Plan is not
the plan maintained by a predecessor employer, service for such predecessor
employer shall be treated as Eligibility and Vesting Service if so specified in
Section 1.16 of the Adoption Agreement.

 

3.06. Change in Service Crediting.  If an amendment to the Plan or a transfer
from employment as an Employee covered under another qualified plan maintained
by the Employer or a Related Employer results in a change in the method of
crediting Eligibility and/or Vesting Service with respect to a Participant
between the Hours of Service crediting method set forth in Section 2530.200b-2
of the Department of Labor Regulations and the elapsed-time crediting method
set forth in Section 1.410(a)-7 of the Treasury Regulations, each
Participant with respect to whom the method of crediting Eligibility and/or
Vesting Service is changed shall be treated in the manner set forth in Section 1.410(a)-7(f)(1) of
the Treasury Regulations which are incorporated herein by reference.

 

Article 4. Participation.

 

4.01. Date of Participation.  If the Plan is an amendment and restatement
of a prior plan, all Eligible Employees who were active participants in the
Plan immediately prior to the Effective Date shall continue as

 

12

 

Active
Participants on the Effective Date. All Eligible Employees who are in the
service of the Employer on the Effective Date (and, if this is an amendment and
restatement of a prior plan, were not active participants in the prior plan
immediately prior to the Effective Date) shall become Active Participants on
the date elected by the Employer in Subsection 1.04(f) of the Adoption
Agreement. Any other Eligible Employee shall become an Active Participant in
the Plan on the Entry Date coinciding with or immediately following the date on
which he first satisfies the eligibility requirements set forth in Subsections
1.04(a) and 1.04(b) of the Adoption Agreement.

 

The
Employer may elect different Eligibility Service requirements for purposes of
eligibility (a) to make Deferral Contributions and (b) to receive Nonelective
and/or Matching Employer Contributions. Any Eligibility Service requirement
that the Employer elects to apply in determining an Eligible Employee’s
eligibility to make Deferral Contributions shall also apply in determining an
Eligible Employee’s eligibility to make Employee Contributions, if Employee
Contributions are permitted under the Plan, and to receive Qualified
Nonelective Employer Contributions. If an Employer elects to have different
Eligibility Service requirements apply, an Eligible Employee who has met the
eligibility requirements with respect to certain contributions, but who has not
met the eligibility requirements with respect to other contributions, shall
become an Active Participant in accordance with the provisions of the preceding
paragraph, but only with respect to the contributions for which he has met the
eligibility requirements.

 

4.02. Transfers Out of Covered Employment.  If any Active Participant ceases to be an
Eligible Employee, but continues in the employ of the Employer or a Related
Employer, such Employee shall cease to be an Active Participant, but shall
continue as an Inactive Participant until his entire Account balance is
forfeited or distributed. An Inactive Participant shall not be entitled to
receive an allocation of contributions or forfeitures under the Plan for the
period that he is not an Eligible Employee and wages and other payments made to
him by the Employer or a Related Employer for services other than as an
Eligible Employee shall not be included in Compensation for purposes of
determining the amount and allocation of any contributions to the Account of
such Inactive Participant. Such Inactive Participant shall continue to receive
credit for Vesting Service completed during the period that he continues in the
employ of the Employer or a Related Employer.

 

4.03. Transfers Into Covered Employment.  If an Employee who is not an Eligible
Employee becomes an Eligible Employee, such Eligible Employee shall become an
Active Participant immediately as of his transfer date if such Eligible
Employee has already satisfied the eligibility requirements and would have
otherwise previously become an Active Participant in accordance with Section 4.01.
Otherwise, such Eligible Employee shall become an Active Participant in
accordance with Section 4.01.

 

Wages
and other payments made to an Employee prior to his becoming an Eligible
Employee by the Employer or a Related Employer for services other than as an
Eligible Employee shall not be included in Compensation for purposes of
determining the amount and allocation of any contributions to the Account of
such Eligible Employee.

 

4.04. Resumption of Participation Following Reemployment.  If a Participant who terminates employment
with the Employer and all Related Employers is reemployed as an Eligible
Employee, he shall again become an Active Participant on his Reemployment Date.
Any other Employee who terminates employment with the Employer and all Related
Employers and is reemployed by the Employer or a Related Employer shall become
an Active Participant as provided in Section 4.01 or 4.03. Any
distribution which a Participant is receiving under the Plan at the time he is
reemployed by the Employer or a Related Employer shall cease except as
otherwise required under Section 12.04.

 

13

 

Article 5. Contributions.

 

5.01. Contributions Subject to Limitations.  All contributions made to the Plan under this
Article 5 shall be subject to the limitations contained in Article 6.

 

5.02. Compensation Taken into Account in Determining
Contributions.  In
determining the amount or allocation of any contribution that is based on a
percentage of Compensation, only Compensation paid to a Participant for
services rendered to the Employer while employed as an Eligible Employee shall
be taken into account. Except as otherwise specifically provided in this Article 5,
for purposes of determining the amount and allocation of contributions under
this Article 5, Compensation shall not include reimbursements or other
expense allowances, fringe benefits (cash and non-cash), moving expenses,
deferred compensation, welfare benefits, and any items elected by the Employer
with respect to such contributions in Subsection 1.05(a) or (b), as
applicable, of the Adoption Agreement, but shall include amounts that are not
includable in the gross income of the Participant under a salary reduction
agreement by reason of the application of Code Section 125, 132(f)(4),
402(e)(3), 402(h), 403(b), or 457(b).

 

If
the initial Plan Year of a new plan consists of fewer than 12 months, calculated
from the Effective Date listed in Subsection 1.01(g)(1) of the Adoption
Agreement through the end of such initial Plan Year, except as otherwise
provided in this paragraph, Compensation for purposes of determining the amount
and allocation of contributions under this Article 5 for such initial Plan
Year shall include only Compensation for services during the period beginning
on the Effective Date listed in Subsection 1.01(g)(1) of the Adoption
Agreement and ending on the last day of the initial Plan Year. Notwithstanding
the foregoing, if the Plan is a profit sharing plan, Compensation for purposes
of determining the amount and allocation of non-safe harbor Nonelective
Employer Contributions under this Article 5 for such initial Plan Year
shall include Compensation for the full 12-consecutive-month period ending on
the last day of the initial Plan Year.

 

5.03. Deferral Contributions.  If so provided by the Employer in Subsection
1.07(a) of the Adoption Agreement, each Active Participant may elect to execute
a salary reduction agreement with the Employer to reduce his Compensation by a
specified percentage or dollar amount, not exceeding the percentage specified
by the Employer in Subsection 1.07(a)(1) of the Adoption Agreement, per
payroll period, subject to any exceptions elected by the Employer in
Subsections 1.07(a)(2) and (3) of the Adoption Agreement, and equal
to a whole number multiple of one percent. If elected by the Employer in
Subsection 1.07(a)(1)(A) of the Adoption Agreement, in lieu of specifying
a percentage of Compensation reduction, an Active Participant may elect to
reduce his Compensation by a specified dollar amount per payroll period,
provided that such dollar amount may not exceed the percentage of Compensation
specified by the Employer in Subsection 1.07(a)(1) of the Adoption
Agreement, subject to any exceptions elected by the Employer in Subsections
1.07(a)(2) and (3) of the Adoption Agreement.

 

An
Active Participant’s salary reduction agreement shall become effective on the
first day of the first payroll period for which the Employer can reasonably
process the request, but not earlier than the later of (a) the effective
date of the provisions permitting Deferral Contributions or (b) the date
the Employer adopts such provisions. The Employer shall make a Deferral
Contribution on behalf of the Participant corresponding to the amount of said
reduction. Under no circumstances may a salary reduction agreement be adopted
retroactively.

 

14

 

An
Active Participant may elect to change or discontinue the percentage or dollar
amount by which his Compensation is reduced by notice to the Employer as
provided in Subsection 1.07(a)(1)(B) or (C) of the Adoption
Agreement. Notwithstanding the Employer’s election in Subsection 1.07(a)(1)(B) or
(C) of the Adoption Agreement, if the Employer has elected one of the safe
harbor contributions in Subsection 1.10(a)(3) or 1.11(a)(3) of the
Adoption Agreement, an Active Participant may elect to change or discontinue
the percentage or dollar amount by which his Compensation is reduced by notice
to the Employer within a reasonable period, as specified by the Employer (but
not less than 30 days), of receiving the notice described in Section 6.10.

 

5.04. Employee Contributions.  If the Employer elected to permit Deferral
Contributions in Subsection 1.07(a) of the Adoption Agreement and if so
provided by the Employer in Subsection 1.08(a)(1) of the Adoption
Agreement, each Active Participant may elect to make non-deductible Employee
Contributions to the Plan in accordance with the rules and procedures
established by the Employer and in an amount not less than one percent of such
Participant’s Compensation for the Plan Year.

 

5.05. No Deductible Employee Contributions.  No deductible Employee Contributions may be
made to the Plan. Deductible Employee Contributions made prior to January 1,
1987 shall be maintained in a separate Account. No part of the deductible
Employee Contributions Account shall be used to purchase life insurance.

 

5.06. Rollover Contributions.  An Eligible Employee who is or was entitled
to receive an eligible rollover distribution, as defined in Code Section 402(c)(4) and
Treasury Regulations issued thereunder, from a qualified plan (or an individual
retirement account holding only assets attributable to a distribution from a
qualified plan) may elect to contribute all or any portion of such distribution
to the Trust directly from such qualified plan or individual retirement account
or within 60 days of receipt of such distribution to the Eligible Employee.
Rollover Contributions shall only be made in the form of cash, allowable Fund
Shares, or, if and to the extent permitted by the Employer with the consent of
the Trustee, promissory notes evidencing a plan loan to the Eligible Employee;
provided, however, that Rollover Contributions shall only be permitted in the
form of promissory notes if the Plan otherwise provides for loans.

 

An
Eligible Employee who has not yet become an Active Participant in the Plan in
accordance with the provisions of Article 4 may make a Rollover
Contribution to the Plan. Such Eligible Employee shall be treated as a
Participant under the Plan for all purposes of the Plan, except eligibility to
have Deferral Contributions made on his behalf and to receive an allocation of
Matching Employer or Nonelective Employer Contributions.

 

The
Administrator shall develop such procedures and require such information from
Eligible Employees as it deems necessary to ensure that amounts contributed
under this Section 5.06 meet the requirements for tax-deferred rollovers
established by this Section 5.06 and by Code Section 402(c). No
Rollover Contributions may be made to the Plan until approved by the
Administrator.

 

If
a Rollover Contribution made under this Section 5.06 is later determined
by the Administrator not to have met the requirements of this Section 5.06
or of the Code or Treasury regulations, the Trustee shall, within a reasonable
time after such determination is made, and on instructions from the
Administrator, distribute to the Employee the amounts then held in the Trust
attributable to such Rollover Contribution.

 

A
Participant’s Rollover Contributions Account shall be subject to the terms of
the Plan, including Article 14, except as otherwise provided in this Section 5.06.

 

15

 

Notwithstanding
any other provision of this Section 5.06, the Employer may direct the
Trustee not to accept Rollover Contributions.

 

5.07. Qualified Nonelective Employer Contributions. The Employer
may, in its discretion, make a Qualified Nonelective Employer Contribution for
the Plan Year in any amount necessary to satisfy or help to satisfy the “ADP”
test, described in Section 6.03, and/or the “ACP” test, described in Section 6.06.
Qualified Nonelective Employer Contributions shall be made and allocated based
on Participants’ “testing compensation”, as defined in Subsection 6.01(t),
rather than Compensation, as defined in Subsection 2.01(j). Any Qualified Nonelective
Employer Contribution shall be allocated among the Accounts of Non-Highly
Compensated Employees who are Active Participants at any time during the Plan
Year as follows:

 

(a) 
Unless the Employer elects the allocation formula in Subsection 1.09(a)(1) of
the Adoption Agreement, the Qualified Nonelective Employer Contribution shall
be allocated at the election of the Employer either

 

(1) 
in the ratio that each eligible Active Participant’s “testing compensation”, as
defined in Subsection 6.01(t), for the Plan Year bears to the total “testing
compensation” paid to all eligible Active Participants for the Plan Year; or

 

(2) 
as a uniform flat dollar amount for each eligible Active Participant for the
Plan Year.

 

(b) 
If the Employer elects the allocation formula in Subsection 1.09(a)(1) of
the Adoption Agreement, the Qualified Nonelective Employer Contribution shall
be allocated as follows:

 

(1) 
The eligible Active Participant with the least “testing compensation”, as
defined in Subsection 6.01(t), for the Plan Year shall receive an allocation
equal to the lowest of:

 

(A) 
the maximum amount that may be contributed on the eligible Active Participant’s
behalf under Code Section 415, taking into account all other contributions
made by or on behalf of the eligible Active Participant to plans maintained by
the Employer or a Related Employer that are includable as “annual additions”,
as defined in Subsection 6.01(b); or

 

(B) 
the full amount of the Qualified Nonelective Employer Contribution.

 

(2) 
The eligible Active Participant with the next lowest “testing compensation”, as
defined in Subsection 6.01(t), for the Plan Year shall receive an allocation
equal to the lowest of:

 

(A) 
the maximum amount that may be contributed on the eligible Active Participant’s
behalf under Code Section 415, taking into account all other contributions
made by or on behalf of the eligible Active Participant to plans maintained by
the Employer or a Related Employer that are includable as “annual additions”,
as defined in Subsection 6.01(b); or

 

(B) 
the balance of any Qualified Nonelective Employer Contribution remaining after
allocation is made as provided in Subsection 5.07(b)(1) above.

 

16

 

(3) 
The allocation in Subsection 5.07(b)(2) shall be applied individually to
each remaining eligible Active Participant, in ascending order of “testing
compensation”, until the Qualified Nonelective Employer Contribution is fully
allocated. Once the Qualified Nonelective Employer Contribution is fully
allocated, no further allocation shall be made to the remaining eligible Active
Participants.

 

Active
Participants shall not be required to satisfy any Hours of Service or
employment requirement for the Plan Year in order to receive an allocation of Qualified
Nonelective Employer Contributions.

 

Qualified
Nonelective Employer Contributions shall be distributable only in accordance
with the distribution provisions that are applicable to Deferral Contributions;
provided, however, that a Participant shall not be permitted to take a hardship
withdrawal of amounts credited to his Qualified Nonelective Employer
Contributions Account after the later of December 31, 1988 or the last day
of the Plan Year ending before July 1, 1989.

 

5.08. Matching Employer Contributions.  If so provided by the Employer in Section 1.10
of the Adoption Agreement, the Employer shall make a Matching Employer
Contribution on behalf of each eligible Active Participant, as determined in
accordance with Subsection 1.10(d) and Section 1.12 of the Adoption
Agreement, who had Deferral Contributions made on his behalf during the
Contribution Period. The amount of the Matching Employer Contribution shall be
determined in accordance with Subsection 1.10(a) and/or (b) and/or
the Safe Harbor Matching Employer Contribution Addendum to the Adoption
Agreement, as applicable.

 

5.09. Qualified Matching Employer Contributions.  If so provided by the Employer in Subsection
1.10(e) of the Adoption Agreement, prior to making its Matching Employer
Contribution (other than any safe harbor Matching Employer Contribution) to the
Plan, the Employer may designate all or a portion of such Matching Employer
Contribution as a Qualified Matching Employer Contribution. The Employer shall
notify the Trustee of such designation at the time it makes its Matching
Employer Contribution. Qualified Matching Employer Contributions shall be
distributable only in accordance with the distribution provisions that are
applicable to Deferral Contributions; provided, however, that a Participant
shall not be permitted to take a hardship withdrawal of amounts credited to his
Qualified Matching Employer Contributions Account after the later of December 31,
1988 or the last day of the Plan Year ending before July 1, 1989.

 

If
the amount of an Employer’s Qualified Matching Employer Contribution is
determined based on a Participant’s Compensation, and the Qualified Matching
Employer Contribution is necessary to satisfy the “ADP” test described in Section 6.03,
the compensation used in determining the amount of the Qualified Matching
Employer Contribution shall be “testing compensation”, as defined in Subsection
6.01(t). If the Qualified Matching Employer Contribution is not necessary to
satisfy the “ADP” test described in Section 6.03, the compensation used to
determine the amount of the Qualified Matching Employer Contribution shall be
Compensation as defined in Subsection 2.01(j), modified as provided in Section 5.02.

 

5.10. Nonelective Employer Contributions.  If so provided by the Employer in Section 1.11
of the Adoption Agreement, the Employer shall make Nonelective Employer
Contributions to the Trust in accordance with Subsection 1.11(a)and/or (b) of
the Adoption Agreement to be allocated as follows:

 

(a) 
If the Plan is a money purchase pension plan or the Employer has elected a
fixed contribution formula, Nonelective Employer Contributions shall be
allocated among eligible Active Participants, as determined in accordance with
Subsection 1.11(c) and Section 1.12 of the Adoption Agreement, in the

 

17

 

manner
specified in Subsection 1.11(a) or the Safe Harbor Nonelective Employer
Contribution Addendum to the Adoption Agreement, as applicable.

 

(b) If
the Employer has elected a discretionary contribution amount,  Nonelective Employer Contributions shall be
allocated among eligible Active Participants, as determined in accordance with
Subsection 1.11(c) and Section 1.12 of the Adoption Agreement, as
follows:

 

(1) 
If the non-integrated formula is elected in Subsection 1.11(b)(1) of the
Adoption Agreement, Nonelective Employer Contributions shall be allocated to
eligible Active Participants in the ratio that each eligible Active
Participant’s Compensation bears to the total Compensation paid to all eligible
Active Participants for the Plan Year; provided, however, that if the Plan is
or is deemed to be a “top-heavy plan”, as defined in Subsection 15.01(f), for
any Plan Year, these allocation provisions shall be modified as provided in Section 15.04;
or

 

(2) If
the integrated formula is elected in Subsection 1.11(b)(2) of the Adoption
Agreement, Nonelective Employer Contributions shall be allocated in the
following steps:

 

(A) 
First, to each eligible Active Participant in the same ratio that the sum of
the eligible Active Participant’s Compensation and “excess Compensation” for
the Plan Year bears to the sum of the Compensation and “excess Compensation” of
all eligible Active Participants for the Plan Year. This allocation as a
percentage of the sum of each eligible Active Participant’s Compensation and
“excess Compensation” shall not exceed the “permitted disparity limit”, as
defined in Section 1.11 of the Adoption Agreement.

 

Notwithstanding the foregoing, if in any Plan Year
an eligible Active Participant has reached the “cumulative permitted disparity
limit”, such eligible Active Participant shall receive an allocation under this
Subsection 5.10(b)(2)(A) based on two times his Compensation for the Plan
Year, rather than the sum of his Compensation and “excess Compensation” for the
Plan Year. If an Active Participant did not benefit under a qualified defined
benefit plan or target benefit plan for any Plan Year beginning on or after January 1,
1994, the Active Participant shall have no “cumulative disparity limit”.

 

(B) 
Second, if any Nonelective Employer Contributions remain after the allocation
in Subsection 5.10(b)(2)(A), the remaining Nonelective Employer Contributions
shall be allocated to each eligible Active Participant in the same ratio that the
eligible Active Participant’s Compensation for the Plan Year bears to the total
Compensation of all eligible Active Participants for the Plan Year.

 

Notwithstanding the provisions of Subsections
5.10(b)(2)(A) and (B) above, if in any Plan Year an eligible Active
Participant benefits under another qualified plan or simplified employee
pension, as defined in Code Section 408(k), that provides for or imputes
permitted disparity, the Nonelective Employer Contributions for the Plan Year
allocated to such eligible Active Participant shall be in the ratio that his
Compensation for the Plan Year bears to the total Compensation paid to all
eligible Active Participants.

 

18

 

If the Plan is or is deemed to be a “top-heavy
plan”, as defined in Subsection 15.01(f), for any Plan Year, the allocation
steps in Subsections 5.10(b)(2)(A) and (B) shall be modified as
provided in Section 15.04.

 

For purposes of this Subsection 5.10(b)(2), the
following definitions shall apply:

 

(C) 
“Cumulative permitted disparity limit”
means 35 multiplied by the sum of an Active Participant’s annual permitted
disparity fractions, as defined in Sections 1.401(l)-5(b)(3) through (b)(7) of
the Treasury Regulations, attributable to the Active Participant’s total years
of service under the Plan and any other qualified plan or simplified employee
pension, as defined in Code Section 408(k), maintained by the Employer or
a Related Employer. For each Plan Year commencing prior to January 1,
1989, the annual permitted disparity fraction shall be deemed to be one, unless
the Participant never accrued a benefit under any qualified plan or simplified
employee pension maintained by the Employer or a Related Employer during any
such Plan Year. In determining the annual permitted disparity fraction for any
Plan Year, the Employer may elect to assume that the full disparity limit has
been used for such Plan Year.

 

(D) 
“Excess Compensation” means
Compensation in excess of the “integration level” specified by the Employer in
Subsection 1.11(b)(2) of the Adoption Agreement.

 

5.11. Vested Interest in Contributions.  A Participant’s vested interest in the
following sub-accounts shall be 100 percent:

 

(a) 
his Deferral Contributions Account;

 

(b) 
his Qualified Nonelective Contributions Account;

 

(c) 
his Qualified Matching Employer Contributions Account;

 

(d) his
Nonelective Employer Contributions Account attributable to Nonelective Employer
Contributions made in accordance with the Safe Harbor Nonelective Employer Contribution
Addendum to the Adoption Agreement that are intended to satisfy the safe harbor
contribution requirement for deemed satisfaction of the “ADP” test described in
Section 6.03;

 

(e) 
his Matching Employer Contributions Account attributable to Matching Employer
Contributions made in accordance with the Safe Harbor Matching Employer
Contribution Addendum to the Adoption Agreement that are intended to satisfy
the safe harbor contribution requirement for deemed satisfaction of the “ADP”
test described in Section 6.03;

 

(f) 
his Rollover Contributions Account;

 

(g) 
his Employee Contributions Account; and

 

(h) 
his deductible Employee Contributions Account.

 

19

 

A
Participant’s vested interest in his Nonelective Employer Contributions Account
attributable to Nonelective Employer Contributions other than those described
in Subsection 5.11(d) above, shall be determined in accordance with the
vesting schedule elected by the Employer in Subsection 1.15(b)(1) of the
Adoption Agreement. A Participant’s vested interest in his Matching Employer
Contributions Account attributable to Matching Employer Contributions other
than those described in Subsection 5.11(e) above, shall be determined in
accordance with the vesting schedule elected by the Employer in Subsection
1.15(b)(2) of the Adoption Agreement.

 

5.12. Time for Making Contributions.  The Employer shall pay its contribution for
each Plan Year not later than the time prescribed by law for filing the
Employer’s Federal income tax return for the fiscal (or taxable) year with or
within which such Plan Year ends (including extensions thereof).

 

The
Employer shall remit any safe harbor Matching Employer Contributions made
during a Plan Year quarter to the Trustee no later than the last day of the
immediately following Plan Year quarter.

 

The
Employer should remit Employee Contributions and Deferral Contributions to the
Trustee as of the earliest date on which such contributions can reasonably be
segregated from the Employer’s general assets, but not later than the 15th business day of the calendar month following
the month in which such amount otherwise would have been paid to the
Participant, or within such other time frame as may be determined by applicable
regulation or legislation.

 

The
Trustee shall have no authority to inquire into the correctness of the amounts
contributed and paid over to the Trustee, to determine whether any contribution
is payable under this Article 5, or to enforce, by suit or otherwise, the
Employer’s obligation, if any, to make a contribution to the Trustee.

 

5.13. Return of Employer Contributions.  The Trustee shall, upon request by the
Employer, return to the Employer the amount (if any) determined under Section 20.24.
Such amount shall be reduced by amounts attributable thereto which have been
credited to the Accounts of Participants who have since received distributions
from the Trust, except to the extent such amounts continue to be credited to
such Participants’ Accounts at the time the amount is returned to the Employer.
Such amount shall also be reduced by the losses of the Trust attributable
thereto, if and to the extent such losses exceed the gains and income
attributable thereto, but shall not be increased by the gains and income of the
Trust attributable thereto, if and to the extent such gains and income exceed
the losses attributable thereto. To the extent such gains exceed losses, the
gains shall be forfeited and applied as provided in Section 11.09. In no
event shall the return of a contribution hereunder cause the balance of the
individual Account of any Participant to be reduced to less than the balance
which would have been credited to the Account had the mistaken amount not been
contributed.

 

Article 6. Limitations on Contributions.

 

6.01. Special Definitions.  For purposes of this Article, the following
definitions shall apply:

 

(a) “Aggregate limit” means the greater of (1) or
(2) where (1) is the sum of (A) 125 percent of the greater of
the average “deferral ratio” of the Active Participants who are Non-Highly
Compensated Employees for the “testing year” or the average “contribution
percentage” of Active Participants who are Non-Highly Compensated Employees for
the “testing year” beginning with or within the “testing year” of the cash or
deferred arrangement and (B) the lesser of 200 percent or two plus the
lesser of such average

 

20

 

“deferral
ratio” or average “contribution percentage” and where (2) is the sum of (A) 125
percent of the lesser of the average “deferral ratio” of the Active
Participants who are Non-Highly Compensated Employees for the “testing year” or
the average “contribution percentage” of the Active Participants who are
Non-Highly Compensated Employees for the “testing year” beginning with or
within the “testing year” of the cash or deferred arrangement and (B) the
lesser of 200 percent or two plus the greater of such average “deferral ratio”
or average “contribution percentage”.

 

(b) 
“Annual additions” mean the sum of
the following amounts allocated to an Active Participant for a Limitation Year:

 

(1) 
all employer contributions allocated to an Active Participant’s account under
qualified defined contribution plans maintained by the “415 employer”,
including amounts applied to reduce employer contributions as provided under Section 11.09;

 

(2) 
all employee contributions allocated to an Active Participant’s account under a
qualified defined contribution plan or a qualified defined benefit plan
maintained by the “415 employer” if separate accounts are maintained with
respect to such Active Participant under the defined benefit plan;

 

(3) 
all forfeitures allocated to an Active Participant’s account under a qualified
defined contribution plan maintained by the “415 employer”;

 

(4) 
all amounts allocated, after March 31, 1984, to an “individual medical
benefit account” which is part of a pension or annuity plan maintained by the
“415 employer”;

 

(5) 
all amounts derived from contributions paid or accrued after December 31,
1985, in taxable years ending after such date, 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
fund” maintained by the “415 employer”; and

 

(6) 
all allocations to an Active Participant under a “simplified employee pension”.

 

(c) 
“Contribution percentage” means
the ratio (expressed as a percentage) of (1) the “contribution percentage
amounts” allocated to an “eligible participant’s” accounts for the Plan Year to
(2) the “eligible participant’s” “testing compensation” for the Plan Year.

 

(d) 
“Contribution percentage amounts”
mean:

 

(1) 
any Employee Contributions made by an “eligible participant” to the Plan;

 

(2) 
any Matching Employer Contributions, but excluding (A) Qualified Matching
Employer Contributions that are taken into account in satisfying the “ADP” test
described in Section 6.03 (except that such exclusion shall not apply for
any Plan Year in which the “ADP” test described in Section 6.03 is deemed
satisfied pursuant to Section 6.10) and (B) Matching Employer
Contributions that are forfeited either to correct “excess aggregate
contributions” or because the contributions to which they relate are “excess
deferrals”, “excess contributions”, or “excess aggregate contributions”;

 

21

 

(3) 
at the election of the Employer, Qualified Nonelective Employer Contributions,
excluding Qualified Nonelective Employer Contributions that are taken into
account in satisfying the “ADP” test described in Section 6.03; and

 

(4) 
at the election of the Employer, Deferral Contributions, excluding Deferral
Contributions that are taken into account in satisfying the “ADP” test
described in Section 6.03.

 

Notwithstanding the foregoing, for any Plan Year in
which the “ADP” test described in Section 6.03 is deemed satisfied
pursuant to Section 6.10, “contribution percentage amounts” shall not
include the following:

 

(5) 
any Deferral Contributions; and

 

(6) 
if the requirements described in Section 6.11 for deemed satisfaction of
the “ACP” test with respect to Matching Employer Contributions are met, any
Matching Employer Contributions; or if the requirements described in Section 6.11
for deemed satisfaction of the “ACP” test with respect to Matching Employer
Contributions are not met, any Matching Employer Contributions made on
behalf of an “eligible participant” for the Plan Year that do not exceed four
percent of the “eligible participant’s” Compensation for the Plan Year.

 

To be included in determining an “eligible
participant’s” “contribution percentage” for a Plan Year, Employee
Contributions must be made to the Plan before the end of such Plan Year and
other “contribution percentage amounts” must be allocated to the “eligible
participant’s” Account as of a date within such Plan Year and made before the
last day of the 12-month period immediately following the Plan Year to which
the “contribution percentage amounts” relate. If an Employer has elected the
prior year testing method described in Subsection 1.06(a)(2) of the
Adoption Agreement, “contribution percentage amounts” that are taken into
account for purposes of determining the “contribution percentages” of
Non-Highly Compensated Employees for the prior year relate to such prior year.
Therefore, such “contribution percentage amounts” must be made before the last
day of the Plan Year being tested.

 

Effective for Plan Years beginning on or after January 1,
1999, if an Employer elects to change from the current year testing method
described in Subsection 1.06(a)(1) of the Adoption Agreement to the prior
year testing method described in Subsection 1.06(a)(2) of the Adoption
Agreement, the following shall not be considered “contribution percentage
amounts” for purposes of determining the “contribution percentages” of
Non-Highly Compensated Employees for the prior year immediately preceding the
Plan Year in which the change is effective:

 

(7) Qualified
Matching Employer Contributions that were taken into account in satisfying the
“ADP” test described in Section 6.03 for such prior year;

 

(8) Qualified
Nonelective Employer Contributions that were taken into account in satisfying
the “ADP” test described in Section 6.03 or the “ACP” test described in Section 6.06
for such prior year; and

 

(9) all
Deferral Contributions.

 

22

 

(e) 
“Deferral ratio” means the ratio
(expressed as a percentage) of (1) the amount of “includable
contributions” made on behalf of an Active Participant for the Plan Year to (2) the
Active Participant’s “testing compensation” for such Plan Year. An Active
Participant who does not receive “includable contributions” for a Plan Year
shall have a “deferral ratio” of zero.

 

(f) 
“Defined benefit fraction” means a
fraction, the numerator of which is the sum of the Active Participant’s annual
benefits (adjusted to an actuarially equivalent straight life annuity if such
benefit is expressed in a form other than a straight life annuity or qualified
joint and survivor annuity) under all the defined benefit plans (whether or not
terminated) maintained by the “415 employer”, each such annual benefit computed
on the assumptions that the Active Participant shall remain in employment until
the normal retirement age under each such plan (or the Active Participant’s
current age, if later) and that all other factors used to determine benefits
under such plan shall remain constant for all future Limitation Years, and the
denominator of which is the lesser of 125 percent of the dollar limitation
determined for the Limitation Year under Code Sections 415(b)(1)(A) and
415(d) or 140 percent of the Active Participant’s highest average
Compensation for three consecutive calendar years of service during which the
Active Participant was active in each such plan, including any adjustments
under Code Section 415(b). However, if the Active Participant was a
participant as of the first day of the first Limitation Year beginning after December 31,
1986, in one or more defined benefit plans maintained by the “415 employer”
which were in existence on May 6, 1986 then the denominator of the
“defined benefit fraction” shall not be less than 125 percent of the Active
Participant’s total accrued benefit as of the close of the last Limitation Year
beginning before January 1, 1987, disregarding any changes in the terms
and conditions of such plans made after May 5, 1986, under all such
defined benefit plans that met, individually and in the aggregate, the
requirements of Code Section 415 for all Limitation Years beginning before
January 1, 1987.

 

(g) 
“Defined contribution fraction”
means a fraction, the numerator of which is the sum of all “annual additions”
credited to an Active Participant for the current Limitation Year and all prior
Limitation Years and the denominator of which is the sum of the “maximum
permissible amounts” for the current Limitation Year and all prior Limitation
Years during which the Participant was an Employee (regardless of whether the
“415 employer” maintained a defined contribution plan in any such Limitation
Year).

 

If the Active Participant was a participant as of
the first day of the first Limitation Year beginning after December 31,
1986, in one or more defined contribution plans maintained by the “415 employer”
which were in existence on May 6, 1986, then the numerator of the “defined
contribution fraction” shall be adjusted if the sum of this fraction and the
“defined benefit fraction” would otherwise exceed 1.0 under the terms of the
Plan. Under the adjustment an amount equal to the product of (1) the
excess of the sum of the fractions over 1.0 and (2) the denominator of
this fraction shall be permanently subtracted from the numerator of this
fraction. The adjustment is calculated using the fractions as they would be
computed as of the end of the last Limitation Year beginning before January 1,
1987, and disregarding any changes in the terms and conditions of the plans
made after May 6, 1986, but using the Section 415 limitation
applicable to the first Limitation Year beginning on or after January 1,
1987.

 

For purposes of determining the “defined
contribution fraction”, the “annual additions” for Limitation Years beginning
before January 1, 1987 shall not be recomputed to treat all employee
contributions as “annual additions”.

 

23

 

(h) 
“Determination year” means (1) for
purposes of determining income or loss with respect to “excess deferrals”, the
calendar year in which the “excess deferrals” were made and (2) for
purposes of determining income or loss with respect to “excess contributions”,
and “excess aggregate contributions”, the Plan Year in which such “excess
contributions” or “excess aggregate contributions” were made.

 

(i)   “Elective deferrals” mean all employer
contributions, other than Deferral Contributions, made on behalf of a
Participant pursuant to an election to defer under any qualified CODA as
described in Code Section 401(k), any simplified employee pension cash or
deferred arrangement as described in Code Section 402(h)(1)(B), any
eligible deferred compensation plan under Code Section 457, any plan as
described under Code Section 501(c)(18), and any employer contributions
made on behalf of a Participant pursuant to a salary reduction agreement for
the purchase of an annuity contract under Code Section 403(b). “Elective
deferrals” shall not include any deferrals properly distributed as excess
“annual additions”.

 

(j) 
“Eligible participant” means any
Active Participant who is eligible to make Employee Contributions, or Deferral
Contributions (if the Employer takes such contributions into account in
calculating “contribution percentages”), or to receive a Matching Employer
Contribution. Notwithstanding the foregoing, the term “eligible participant”
shall not include any Active Participant who is included in a unit of Employees
covered by an agreement which the Secretary of Labor finds to be a collective
bargaining agreement between employee representatives and one or more
employers.

 

(k) 
“Excess aggregate contributions”
with respect to any Plan Year mean the excess of

 

(1) 
The aggregate “contribution percentage amounts” actually taken into account in
computing the average “contribution percentages” of “eligible participants” who
are Highly Compensated Employees for such Plan Year, over

 

(2) 
The maximum amount of “contribution percentage amounts” permitted to be made on
behalf of Highly Compensated Employees under Section 6.06 (determined by
reducing “contribution percentage amounts” made for the Plan Year on behalf of
“eligible participants” who are Highly Compensated Employees in order of their
“contribution percentages” beginning with the highest of such “contribution
percentages”).

 

“Excess aggregate contributions” shall be determined
after first determining “excess deferrals” and then determining “excess
contributions”.

 

(l) 
“Excess contributions” with
respect to any Plan Year mean the excess of

 

(1) 
The aggregate amount of “includable contributions” actually taken into account
in computing the average “deferral percentage” of Active Participants who are
Highly Compensated Employees for such Plan Year, over

 

(2) 
The maximum amount of “includable contributions” permitted to be made on behalf
of Highly Compensated Employees under Section 6.03 (determined by reducing
“includable contributions” made for the Plan Year on behalf of Active
Participants who are Highly Compensated Employees in order of their “deferral
ratios”, beginning with the highest of such “deferral ratios”).

 

24

 

(m) 
“Excess deferrals” mean those Deferral
Contributions and/or “elective deferrals” that are includable in a
Participant’s gross income under Code Section 402(g) to the extent
such Participant’s Deferral Contributions and/or “elective deferrals” for a
calendar year exceed the dollar limitation under such Code Section for
such calendar year.

 

(n) 
“Excess 415 amount” means the
excess of an Active Participant’s “annual additions” for the Limitation Year
over the “maximum permissible amount”.

 

(o) 
“415 employer” means the Employer
and any other employers which constitute a controlled group of corporations (as
defined in Code Section 414(b) as modified by Code Section 415(h))
or which constitute trades or businesses (whether or not incorporated) which
are under common control (as defined in Code Section 414(c) as
modified by Code Section 415(h)) or which constitute an affiliated service
group (as defined in Code Section 414(m)) and any other entity required to
be aggregated with the Employer pursuant to regulations issued under Code Section 414(o).

 

(p) 
“Includable contributions” mean:

 

(1) any
Deferral Contributions made on behalf of an Active Participant, including
“excess deferrals” of Highly Compensated Employees, but excluding (a) “excess
deferrals” of Non-Highly Compensated Employees that arise solely from Deferral
Contributions made under the Plan or plans maintained by the Employer or a
Related Employer and (b) Deferral Contributions that are taken into
account in satisfying the “ACP” test described in Section 6.06;

 

(2) at
the election of the Employer, Qualified Nonelective Employer Contributions,
excluding Qualified Nonelective Employer Contributions that are taken into
account in satisfying the “ACP” test described in Section 6.06; and

 

(3) at
the election of the Employer, Qualified Matching Employer Contributions;
provided, however, that the Employer may not elect to treat Qualified Matching
Employer Contributions as “includable contributions” for any Plan Year in which
the “ADP” test described in Section 6.03 is deemed satisfied pursuant to Section 6.10.

 

To be included in determining an Active
Participant’s “deferral ratio” for a Plan Year, “includable contributions” must
be allocated to the Participant’s Account as of a date within such Plan Year
and made before the last day of the 12-month period immediately following the
Plan Year to which the “includable contributions” relate. If an Employer has
elected the prior year testing method described in Subsection 1.06(a)(2) of
the Adoption Agreement, “includable contributions” that are taken into account
for purposes of determining the “deferral ratios” of Non-Highly Compensated
Employees for the prior year relate to such prior year. Therefore, such
“includable contributions” must be made before the last day of the Plan Year
being tested.

 

Effective for Plan Years beginning on or after January 1,
1999, if an Employer elects to change from the current year testing method
described in Subsection 1.06(a)(1) of the Adoption Agreement to the prior
year testing method described in Subsection 1.06(a)(2) of the Adoption
Agreement, the following shall not be considered “includable contributions” for
purposes of determining the “deferral ratios” of Non-Highly Compensated
Employees for the prior year immediately preceding the Plan Year in which the
change is effective:

 

25

 

(4) Deferral
Contributions that were taken into account in satisfying the “ACP” test
described in Section 6.06 for such prior year;

 

(5) Qualified
Nonelective Employer Contributions that were taken into account in satisfying
the “ADP” test described in Section 6.03 or the “ACP” test described in Section 6.06
for such prior year; and

 

(6) all
Qualified Matching Employer Contributions.

 

(q) 
“Individual medical benefit account”
means an individual medical benefit account as defined in Code Section 415(l)(2).

 

(r) 
“Maximum permissible amount” means
for a Limitation Year with respect to any Active Participant the lesser of (1) $30,000
(adjusted as provided in Code Section 415(d)) or (2) 25 percent of
the Active Participant’s Compensation for the Limitation Year. If a short
Limitation Year is created because of an amendment changing the Limitation Year
to a different 12-consecutive-month period, the dollar limitation specified in
clause (1) above shall be adjusted by multiplying it by a fraction the
numerator of which is the number of months in the short Limitation Year and the
denominator of which is 12.

 

The Compensation limitation specified in clause (2) above
shall not apply to any contribution for medical benefits within the meaning of
Code Section 401(h) or 419A(f)(2) after separation from service
which is otherwise treated as an “annual addition” under Code Section 419A(d)(2) or
415(l)(1).

 

(s) 
“Simplified employee pension”
means a simplified employee pension as defined in Code Section 408(k).

 

(t) 
“Testing compensation” means
compensation as defined in Code Section 414(s). “Testing compensation”
shall be based on the amount actually paid to a Participant during the “testing
year” or, at the option of the Employer, during that portion of the “testing
year” during which the Participant is an Active Participant; provided, however,
that if the Employer elected different Eligibility Service requirements for
purposes of eligibility to make Deferral Contributions and to receive Matching
Employer Contributions, then “testing compensation” must be based on the amount
paid to a Participant during the full “testing year”.

 

The annual “testing compensation” of each Active
Participant taken into account in applying the “ADP” test described in Section 6.03
and the “ACP” test described in Section 6.06 for any “testing year” shall
not exceed the annual compensation limit under Code Section 401(a)(17) as
in effect on the first day of the “testing year”. This limit shall be adjusted
by the Secretary to reflect increases in the cost of living, as provided in
Code Section 401(a)(17)(B); provided, however, that the dollar increase in
effect on January 1 of any calendar year is effective for “testing years”
beginning in such calendar year. If a Plan determines “testing compensation”
over a period that contains fewer than 12 calendar months (a “short
determination period”), then the Compensation limit for such “short
determination period” is equal to the Compensation limit for the calendar year
in which the “short determination period” begins multiplied by the ratio
obtained by dividing the number of full months in the “short determination
period” by 12; provided, however, that such proration shall not apply if there
is a “short determination period” because (1) the Employer elected in
accordance with any rules and regulations issued by the Secretary of the 

 

26

 

Treasury
or his delegate to apply the “ADP” test described in Section 6.03 and/or
the “ACP” test described in Section 6.06 based only on Compensation paid
during the portion of the “testing year” during which an individual was an
Active Participant or (2) an Employee is covered under the Plan for fewer
than 12 calendar months.

 

(u) 
“Testing year” means

 

(1)   if
the Employer has elected the current year testing method in Subsection 1.06(a)(1) of
the Adoption Agreement, the Plan Year being tested.

 

(2)   if
the Employer has elected the prior year testing method in Subsection 1.06(a)(2) of
the Adoption Agreement, the Plan Year immediately preceding the Plan Year being
tested.

 

(v) 
“Welfare benefit fund” means a
welfare benefit fund as defined in Code Section 419(e).

 

6.02. Code Section 402(g) Limit on Deferral
Contributions.  In no event
shall the amount of Deferral Contributions made under the Plan for a calendar
year, when aggregated with the “elective deferrals” made under any other plan
maintained by the Employer or a Related Employer, exceed the dollar limitation
contained in Code Section 402(g) in effect at the beginning of such
calendar year.

 

A
Participant may assign to the Plan any “excess deferrals” made during a
calendar year by notifying the Administrator on or before March 15
following the calendar year in which the “excess deferrals” were made of the
amount of the “excess deferrals” to be assigned to the Plan. A Participant is
deemed to notify the Administrator of any “excess deferrals” that arise by
taking into account only those Deferral Contributions made to the Plan and
those “elective deferrals” made to any other plan maintained by the Employer or
a Related Employer. Notwithstanding any other provision of the Plan, “excess
deferrals”, plus any income and minus any loss allocable thereto, as determined
under Section 6.09, shall be distributed no later than April 15 to
any Participant to whose Account “excess deferrals” were so assigned for the
preceding calendar year and who claims “excess deferrals” for such calendar
year.

 

Any
Matching Employer Contributions attributable to “excess deferrals”, plus any
income and minus any loss allocable thereto, as determined under Section 6.09,
shall be forfeited and applied as provided in Section 11.09.

 

“Excess
deferrals” shall be treated as “annual additions” under the Plan, unless such
amounts are distributed no later than the first April 15 following the
close of the calendar year in which the “excess deferrals” were made.

 

6.03. Additional Limit on Deferral Contributions (“ADP”
Test).  Notwithstanding
any other provision of the Plan to the contrary, the Deferral Contributions
made with respect to a Plan Year on behalf of Active Participants who are
Highly Compensated Employees for such Plan Year may not result in an average
“deferral ratio” for such Active Participants that exceeds the greater of:

 

(a) 
the average “deferral ratio” for the “testing year” of Active Participants who
are Non-Highly Compensated Employees for the “testing year” multiplied by 1.25;
or

 

27

 

(b) the
average “deferral ratio” for the “testing year” of Active Participants who are
Non-Highly Compensated Employees for the “testing year” multiplied by two,
provided that the average “deferral ratio” for Active Participants who are
Highly Compensated Employees for the Plan Year being tested does not exceed the
average “deferral ratio” for Participants who are Non-Highly Compensated
Employees for the “testing year” by more than two percentage points.

 

For
the first Plan Year in which the Plan provides a cash or deferred arrangement,
the average “deferral ratio” for Active Participants who are Non-Highly
Compensated Employees used in determining the limits applicable under
Subsections 6.03(a) and (b) shall be either three percent or the
actual average “deferral ratio” for such Active Participants for such first
Plan Year, as elected by the Employer in Section 1.06(b) of the
Adoption Agreement.

 

The
deferral ratios of Active Participants who are included in a unit of Employees
covered by an agreement which the Secretary of Labor finds to be a collective
bargaining agreement shall be disaggregated from the “deferral ratios” of other
Active Participants and the provisions of this Section 6.03 shall be
applied separately with respect to each group.

 

The
“deferral ratio” for any Active Participant who is a Highly Compensated
Employee for the Plan Year being tested and who is eligible to have “includable
contributions” allocated to his accounts under two or more cash or deferred
arrangements described in Code Section 401(k) that are maintained by
the Employer or a Related Employer, shall be determined as if such “includable
contributions” were made under a single arrangement. If a Highly Compensated
Employee participates in two or more cash or deferred arrangements that have
different plan years, all cash or deferred arrangements ending with or within
the same calendar year shall be treated as a single arrangement.
Notwithstanding the foregoing, certain plans shall be treated as separate if
mandatorily disaggregated under regulations under Code Section 401(k).

 

If
this Plan satisfies the requirements of Code Section 401(k), 401(a)(4), or
410(b) only if aggregated with one or more other plans, or if one or more
other plans satisfy the requirements of such Code Sections only if aggregated
with this Plan, then this Section 6.03 shall be applied by determining the
“deferral ratios” of Employees as if all such plans were a single plan. Plans
may be aggregated in order to satisfy Code Section 401(k) only if
they have the same plan year.

 

The
Employer shall maintain records sufficient to demonstrate satisfaction of the
“ADP” test and the amount of Qualified Nonelective and/or Qualified Matching
Employer Contributions used in such test.

 

6.04. Allocation and Distribution of “Excess
Contributions”. 
Notwithstanding any other provision of this Plan, the “excess
contributions” allocable to the Account of a Participant, plus any income and
minus any loss allocable thereto, as determined under Section 6.09, shall
be distributed to the Participant no later than the last day of the Plan Year
immediately following the Plan Year in which the “excess contributions” were
made. If such excess amounts are distributed more than 21/2 months after
the last day of the Plan Year in which the “excess contributions” were made, a
ten percent excise tax shall be imposed on the Employer maintaining the Plan
with respect to such amounts.

 

The
“excess contributions” allocable to a Participant’s Account shall be determined
by reducing the “includable contributions” made for the Plan Year on behalf of
Active Participants who are Highly Compensated Employees in order of the dollar
amount of such “includable contributions”, beginning with the highest such
dollar amount.

 

28

 

“Excess
contributions” shall be treated as “annual additions”.

 

Any
Matching Employer Contributions attributable to “excess contributions”, plus
any income and minus any loss allocable thereto, as determined under Section 6.09,
shall be forfeited and applied as provided in Section 11.09.

 

6.05. Reductions in Deferral Contributions to Meet Code
Requirements.  If the
Administrator anticipates that the Plan will not satisfy the “ADP” and/or “ACP”
test for the year, the Administrator may objectively reduce the rate of
Deferral Contributions of Participants who are Highly Compensated Employees to
an amount determined by the Administrator to be necessary to satisfy the “ADP”
and/or “ACP” test.

 

6.06. Limit on Matching Employer Contributions and Employee
Contributions (“ACP” Test).  The provisions of this Section 6.06
shall not apply to Active Participants who are included in a unit of Employees
covered by an agreement which the Secretary of Labor finds to be a collective
bargaining agreement between employee representatives and one or more
employers.

 

Notwithstanding
any other provision of the Plan to the contrary, Matching Employer
Contributions and Employee Contributions made with respect to a Plan Year by or
on behalf of “eligible participants” who are Highly Compensated Employees for
such Plan Year may not result in an average “contribution percentage” for such
“eligible participants” that exceeds the greater of:

 

(a) 
the average “contribution percentage” for the “testing year” of “eligible
participants” who are Non-Highly Compensated Employees for the “testing year”
multiplied by 1.25; or

 

(b) 
the average “contribution percentage” for the “testing year” of “eligible
participants” who are Non-Highly Compensated Employees for the “testing year”
multiplied by two, provided that the average “contribution percentage” for the
Plan Year being tested of “eligible participants” who are Highly Compensated
Employees does not exceed the average “contribution percentage” for the
“testing year” of “eligible participants” who are Non-Highly Compensated
Employees for the “testing year” by more than two percentage points.

 

For
the first Plan Year in which the Plan provides for “contribution percentage
amounts” to be made, the “ACP” for “eligible participants” who are Non-Highly
Compensated Employees used in determining the limits applicable under
paragraphs (a) and (b) of this Section 6.06 shall be either
three percent or the actual “ACP” of such eligible participants for such first
Plan Year, as elected by the Employer in Section 1.06(b).

 

The
“contribution percentage” for any “eligible participant” who is a Highly
Compensated Employee for the Plan Year and who is eligible to have
“contribution percentage amounts” allocated to his accounts under two or more
plans described in Code Section 401(a) that are maintained by the
Employer or a Related Employer, shall be determined as if such “contribution
percentage amounts” were contributed under a single plan. If a Highly
Compensated Employee participates in two or more such plans that have different
plan years, all plans ending with or within the same calendar year shall be
treated as a single plan. Notwithstanding the foregoing, certain plans shall be
treated as separate if mandatorily disaggregated under Treasury Regulations
issued under Code Section 401(m).

 

29

 

If
this Plan satisfies the requirements of Code Section 401(m), 401(a)(4) or
410(b) only if aggregated with one or more other plans, or if one or more
other plans satisfy the requirements of such Code Sections only if aggregated
with this Plan, then this Section 6.06 shall be applied by determining the
“contribution percentages” of Employees as if all such plans were a single
plan. Plans may be aggregated in order to satisfy Code Section 401(m) only
if they have the same plan year.

 

The
Employer shall maintain records sufficient to demonstrate satisfaction of the
“ACP” test and the amount of Deferral Contributions, Qualified Nonelective
Employer Contributions, and/or Qualified Matching Employer Contributions used
in such test.

 

6.07. Allocation, Distribution, and Forfeiture of “Excess
Aggregate Contributions”.  Notwithstanding any other provision of the
Plan, the “excess aggregate contributions” allocable to the Account of a
Participant, plus any income and minus any loss allocable thereto, as
determined under Section 6.09, shall be forfeited, if forfeitable, or if
not forfeitable, distributed to the Participant no later than the last day of
the Plan Year immediately following the Plan Year in which the “excess
aggregate contributions” were made. If such excess amounts are distributed more
than 2 1/2 months after the last day of the Plan Year in which such “excess
aggregate contributions” were made, a ten percent excise tax shall be imposed
on the Employer maintaining the Plan with respect to such amounts.

 

The
“excess aggregate contributions” allocable to a Participant’s Account shall be
determined by reducing the “contribution percentage amounts” made for the Plan
Year on behalf of “eligible participants” who are Highly Compensated Employees
in order of the dollar amount of such “contribution percentage amounts”,
beginning with the highest such dollar amount.

 

“Excess
aggregate contributions” shall be treated as “annual additions”.

 

“Excess
aggregate contributions” shall be forfeited or distributed from a Participant’s
Employee Contributions Account, Matching Employer Contributions Account and if
applicable, the Participant’s Deferral Contributions Account and/or Qualified
Nonelective Employer Contributions Account in the order prescribed by the
Employer, who shall direct the Trustee, and which order shall be uniform with
respect to all Participants and non-discriminatory.

 

Forfeitures
of “excess aggregate contributions” shall be applied as provided in Section 11.09.

 

6.08. Aggregate Limit on “Contribution Percentage Amounts”
and “Includable Contributions”.  The sum of the average “deferral ratio” and
the average “contribution percentage” of those Active Participants who are
Highly Compensated Employees during the Plan Year shall not exceed the
“aggregate limit”. The average “deferral ratio” and average “contribution
percentage” of such Active Participants shall be determined after any
corrections required to meet the “ADP” test, described in Section 6.03,
and the “ACP” test, described in Section 6.06, have been made.
Notwithstanding the foregoing, the “aggregate limit” shall not be exceeded if
either the average “deferral ratio” or the average “contribution percentage” of
such Active Participants for the Plan Year does not exceed 1.25 multiplied by
the average “deferral ratio” or the average “contribution percentage”, as
applicable, for the “testing year” of the Active Participants who are
Non-Highly Compensated Employees for the “testing year”.

 

30

 

If
the “aggregate limit” would be exceeded for any Plan Year, then the limit shall
be met by reducing the “contribution percentage amounts” contributed for the
Plan Year on behalf of the Active Participants who are Highly Compensated
Employees for such Plan Year (in order of their “contribution percentages”,
beginning with the highest such “contribution percentage”). “Contribution
percentage amounts” that are reduced as provided herein shall be treated as
“excess aggregate contributions”. If for any Plan Year in which the “ADP” test
described in Section 6.03 is deemed satisfied pursuant to Section 6.10,
the average “deferral ratio” of those Active Participants who are Highly
Compensated Employees during the Plan Year does not meet the “aggregate limit”
after reducing the “contribution percentage amounts” contributed on behalf of
such Active Participants to zero, no further reduction shall be required under
this Section 6.08.

 

6.09. Income or Loss on Distributable Contributions.  The income or loss allocable to “excess
deferrals”, “excess contributions”, and “excess aggregate contributions” shall
be determined under one of the following methods:

 

(a) 
the income or loss for the “determination year” allocable to the Participant’s
Account to which such contributions were made multiplied by a fraction, the
numerator of which is the amount of the distributable contributions and the
denominator of which is the balance of the Participant’s Account to which such
contributions were made, determined without regard to any income or loss
occurring during the “determination year”; or

 

(b) the
income or loss for the “determination year” determined under any other
reasonable method, provided that such method is used consistently for all
Participants in determining the income or loss allocable to distributable
contributions hereunder for the Plan Year, and is used by the Plan in
allocating income or loss to Participants’ Accounts.

 

Income
or loss allocable to the period between the end of the “determination year” and
the date of distribution shall be disregarded in determining income or loss.

 

6.10. Deemed Satisfaction of “ADP” Test.  Notwithstanding any other provision of this Article 6
to the contrary, for any Plan Year beginning on or after January 1, 1999,
if the Employer has elected one of the safe harbor contributions in Subsection
1.10(a)(3) or 1.11(a)(3) of the Adoption Agreement and complies with
the notice requirements described herein for such Plan Year, the Plan shall be
deemed to have satisfied the “ADP” test described in Section 6.03. The
Employer shall provide a notice to each Active Participant during the Plan Year
describing the following:

 

(a) 
the formula used for determining the amount of the safe harbor contribution to
be made on behalf of Active Participants for the Plan Year or a statement that
the Plan may be amended during the Plan Year to provide for a safe harbor
Nonelective Employer Contribution for the Plan Year equal to at least three
percent of each Active Participant’s Compensation for the Plan Year;

 

(b) 
any other employer contributions provided under the Plan and any requirements
that Active Participants must satisfy to be entitled to receive such employer
contributions;

 

(c) 
the type and amount of Compensation that may be deferred under the Plan as
Deferral Contributions;

 

(d) 
the procedures for making a cash or deferred election under the Plan and the
periods during which such elections may be made or changed; and

 

31

 

(e) 
the withdrawal and vesting provisions applicable to contributions under the
Plan.

 

The
descriptions required in (b) through (e) may be provided by cross
references to the relevant sections of an up to date summary plan description.
Such notice shall be written in a manner calculated to be understood by the
average Active Participant. The Employer shall provide the notice to each
Active Participant within one of the following periods, whichever is
applicable:

 

(f) 
if the employee is an Active Participant 90 days before the beginning of the
Plan Year, within the period beginning 90 days and ending 30 days before the
first day of the Plan Year; or

 

(g) 
if the employee becomes an Active Participant after the date described in
paragraph (f) above, within the period beginning 90 days before and ending
on the date he becomes an Active Participant;

 

provided,
however, that such notice shall not be required to be provided to an Active
Participant earlier than is required under any guidance published by the
Internal Revenue Service.

 

If
an Employer that provides notice that the Plan may be amended to provide a safe
harbor Nonelective Employer Contribution for the Plan Year does amend the Plan
to provide such contribution, the Employer shall provide a supplemental notice
to all Active Participants stating that a safe harbor Nonelective Employer
Contribution in the specified amount shall be made for the Plan Year. Such
supplemental notice shall be provided to Active Participants at least 30 days
before the last day of the Plan Year.

 

6.11. Deemed Satisfaction of “ACP” Test With Respect to
Matching Employer Contributions.  A Plan that satisfies the requirements of Section 6.10
shall also be deemed to have satisfied the “ACP” test described in Section 6.06
with respect to Matching Employer Contributions, if Matching Employer
Contributions to the Plan for the Plan Year meet all of the following
requirements:  (a) the percentage of
Deferral Contributions matched does not increase as the percentage of
Compensation contributed increases; (b) Highly Compensated Employees are
not provided a greater percentage match than Non-Highly Compensated Employees; (c) Deferral
Contributions matched do not exceed six percent of a Participant’s Compensation;
and (d) if the Employer elected in Subsection 1.10(a)(2) or 1.10(b) of
the Adoption Agreement to provide discretionary Matching Employer
Contributions, the Employer also elected in Subsection 1.10(a)(2)(A) or
1.10(b)(1) of the Adoption Agreement, as applicable, to limit the dollar
amount of such discretionary Matching Employer Contributions allocated to a
Participant for the Plan Year to no more than four percent of such
Participant’s Compensation for the Plan Year.

 

If
such Plan provides for Employee Contributions, the “ACP” test described in Section 6.06
must be applied with respect to such Employee Contributions. For purposes of
applying the “ACP” test with respect to Employee Contributions, Matching
Employer Contributions and Nonelective Employer Contributions that satisfy the
vesting and distribution requirements applicable to safe harbor contributions,
but which are not required to comply with the safe harbor contribution
requirements may be taken into account.

 

6.12. Code Section 415 Limitations.  Notwithstanding any other provisions of the
Plan, the following limitations shall apply:

 

(a) 
Employer Maintains Single Plan: 
If the “415 employer” does not maintain any other qualified defined
contribution plan or any “welfare benefit fund”, “individual medical benefit
account”, or 

 

32

 

“simplified
employee pension” in addition to the Plan, the provisions of this Subsection
6.12(a) shall apply.

 

(1) 
If a Participant does not participate in, and has never participated in any
other qualified defined contribution plan, “welfare benefit fund”, “individual
medical benefit account”, or “simplified employee pension” maintained by the
“415 employer”, which provides an “annual addition”, the amount of “annual
additions” to the Participant’s Account for a Limitation Year shall not exceed
the lesser of the “maximum permissible amount” or any other limitation
contained in the Plan. If a contribution that would otherwise be contributed or
allocated to the Participant’s Account would cause the “annual additions” for
the Limitation Year to exceed the “maximum permissible amount”, the amount
contributed or allocated shall be reduced so that the “annual additions” for
the Limitation Year shall equal the “maximum permissible amount”.

 

(2) 
Prior to the determination of a Participant’s actual Compensation for a
Limitation Year, the “maximum permissible amount” may be determined on the
basis of a reasonable estimation of the Participant’s Compensation for such
Limitation Year, uniformly determined for all Participants similarly situated.
Any Employer contributions based on estimated annual Compensation shall be
reduced by any “excess 415 amounts” carried over from prior Limitation Years.

 

(3) 
As soon as is administratively feasible after the end of the Limitation Year,
the “maximum permissible amount” for such Limitation Year shall be determined
on the basis of the Participant’s actual Compensation for such Limitation Year.

 

(4) 
If there is an “excess 415 amount” with respect to a Participant for a
Limitation Year as a result of the estimation of the Participant’s Compensation
for the Limitation Year, the allocation of forfeitures to the Participant’s
Account, or a reasonable error in determining the amount of Deferral Contributions
that may be made on behalf of the Participant under the limits of this Section 6.12,
such “excess 415 amount” shall be disposed of as follows:

 

(A) 
Any Employee Contributions shall be reduced to the extent necessary to reduce
the “excess 415 amount”.

 

(B) 
If after application of Subsection 6.12(a)(4)(A) an “excess 415 amount”
still exists, any Deferral Contributions that have not been matched shall be
reduced to the extent necessary to reduce the “excess 415 amount”.

 

(C) If
after application of Subsection 6.12(a)(4)(B) an “excess 415 amount” still
exists, any Deferral Contributions that have been matched and the Matching
Employer Contributions attributable thereto shall be reduced to the extent
necessary to reduce the “excess 415 amount”.

 

(D) 
If after the application of Subsection 6.12(a)(4)(C) an “excess 415
amount” still exists, any Nonelective Employer Contributions shall be reduced
to the extent necessary to reduce the “excess 415 amount”.

 

33

 

(E) 
If after the application of Subsection 6.12(a)(4)(D) an “excess 415
amount” still exists, any Qualified Nonelective Employer Contributions shall be
reduced to the extent necessary to reduce the “excess 415 amount”.

 

Employee Contributions and Deferral Contributions
that are reduced as provided above shall be returned to the Participant. Any
income allocable to returned Employee Contributions or Deferral Contributions
shall also be returned or shall be treated as additional “annual additions” for
the Limitation Year in which the excess contributions to which they are
allocable were made.

 

If Matching Employer, Nonelective Employer, or
Qualified Nonelective Employer Contributions to a Participant’s Account are
reduced as an “excess 415 amount”, as provided above, and the individual is
still an Active Participant at the end of the Limitation Year, then such
“excess 415 amount” shall be reapplied to reduce future Employer contributions
under the Plan for the next Limitation Year (and for each succeeding Limitation
Year, as necessary) for such Participant, so that in each such Limitation Year
the sum of the actual Employer contributions made on behalf of such Participant
plus the reapplied amount shall equal the amount of Employer contributions
which would otherwise be made to such Participant’s Account. If the individual
is not an Active Participant at the end of a Limitation Year, then such “excess
415 amount” shall be held unallocated in a suspense account. The suspense
account shall be applied to reduce future Employer contributions for all
remaining Active Participants in the next Limitation Year and each succeeding
Limitation Year if necessary.

 

If a suspense account is in existence at any time
during the Limitation Year pursuant to this Subsection 6.12(a)(4), it shall
participate in the allocation of the Trust Fund’s investment gains and losses.
All amounts in the suspense account must be allocated to the Accounts of Active
Participants before any Employer contribution may be made for the Limitation
Year.

 

Except as otherwise specifically provided in this
Subsection 6.12, “excess 415 amounts” may not be distributed to Participants.

 

(b) 
Employer Maintains Multiple Defined Contribution Type Plans:  Unless the Employer specifies another method
for limiting “annual additions” in the 415 Correction Addendum to the Adoption
Agreement, if the “415 employer” maintains any other qualified defined
contribution plan or any “welfare benefit fund”, “individual medical benefit
account”, or “simplified employee pension” in addition to the Plan, the
provisions of this Subsection 6.12(b) shall apply.

 

(1) 
If a Participant is covered under any other qualified defined contribution plan
or any “welfare benefit fund”, “individual medical benefit account”, or
“simplified employee pension” maintained by the “415 employer”, that provides
an “annual addition”, the amount of “annual additions” to the Participant’s
Account for a Limitation Year shall not exceed the lesser of

 

(A) 
the “maximum permissible amount”, reduced by the sum of any “annual additions”
to the Participant’s accounts for the same Limitation Year under such other
qualified defined contribution plans and “welfare benefit funds”, “individual
medical benefit accounts”, and “simplified employee pensions”, or

 

(B)  any other limitation contained in the
Plan.

 

34

 

If the “annual additions” with respect to a
Participant under other qualified defined contribution plans, “welfare benefit
funds”, “individual medical benefit accounts”, and “simplified employee
pensions” maintained by the “415 employer” are less than the “maximum
permissible amount” and a contribution that would otherwise be contributed or
allocated to the Participant’s Account under the Plan would cause the “annual
additions” for the Limitation Year to exceed the “maximum permissible amount”,
the amount to be contributed or allocated shall be reduced so that the “annual
additions” for the Limitation Year shall equal the “maximum permissible
amount”. If the “annual additions” with respect to the Participant under such
other qualified defined contribution plans, “welfare benefit funds”,
“individual medical benefit accounts”, and “simplified employee pensions” in
the aggregate are equal to or greater than the “maximum permissible amount”, no
amount shall be contributed or allocated to the Participant’s Account under the
Plan for the Limitation Year.

 

(2) 
Prior to the determination of a Participant’s actual Compensation for the
Limitation Year, the amounts referred to in Subsection 6.12(b)(1)(A) above
may be determined on the basis of a reasonable estimation of the Participant’s
Compensation for such Limitation Year, uniformly determined for all
Participants similarly situated. Any Employer contribution based on estimated
annual Compensation shall be reduced by any “excess 415 amounts” carried over
from prior Limitation Years.

 

(3) 
As soon as is administratively feasible after the end of the Limitation Year,
the amounts referred to in Subsection 6.12(b)(1)(A) shall be determined on
the basis of the Participant’s actual Compensation for such Limitation Year.

 

(4) 
Notwithstanding the provisions of any other plan maintained by a “415
employer”, if there is an “excess 415 amount” with respect to a Participant for
a Limitation Year as a result of estimation of the Participant’s Compensation
for the Limitation Year, the allocation of forfeitures to the Participant’s
account under any qualified defined contribution plan maintained by the “415
employer”, or a reasonable error in determining the amount of Deferral
Contributions that may be made on behalf of the Participant to the Plan or any
other qualified defined contribution plan maintained by the “415 employer”
under the limits of this Subsection 6.12(b), such “excess 415 amount” shall be
deemed to consist first of the “annual additions” allocated to this Plan and
shall be reduced as provided in Subsection 6.12(a)(4); provided, however, that
if the “415 employer” maintains both a profit sharing plan and a money purchase
pension plan under this Basic Plan Document, “annual additions” to the money
purchase pension plan shall be reduced only after all “annual additions” to the
profit sharing plan have been reduced.

 

(c) 
Employer Maintains or Maintained Defined Benefit Plan:  For Limitation Years beginning prior to January 1,
2000, if the “415 employer” maintains, or at any time maintained, a qualified
defined benefit plan, the sum of any Participant’s “defined benefit plan
fraction and “defined contribution plan fraction” shall not exceed the combined
plan limitation of 1.00 in any such Limitation Year. The combined plan
limitation shall be met by reducing “annual additions” under the Plan, unless
otherwise provided in the qualified defined benefit plan.

 

35

 

(d) 
Adjustment to Compensation: 
Compensation for purposes of this Section 6.12 shall include
amounts that are not includable in the gross income of the Participant under a
salary reduction agreement by reason of the application of Code Section 125,
132(f)(4), 402(e)(3), 402(h), or 403(b).

 

Article 7. Participants’ Accounts.

 

7.01. Individual Accounts.  The Administrator shall establish and
maintain an Account for each Participant that shall reflect Employer and
Employee contributions made on behalf of the Participant and earnings,
expenses, gains and losses attributable thereto, and investments made with
amounts in the Participant’s Account. The Administrator shall establish and
maintain such other accounts and records as it decides in its discretion to be
reasonably required or appropriate in order to discharge its duties under the
Plan. The Administrator shall notify the Trustee of all Accounts established
and maintained under the Plan.

 

7.02. Valuation of Accounts.  Participant Accounts shall be valued at their
fair market value at least annually as of a date specified by the Administrator
in accordance with a method consistently followed and uniformly applied, and on
such date earnings, expenses, gains and losses on investments made with amounts
in each Participant’s Account shall be allocated to such Account. Participants
shall be furnished statements of their Account values at least once each Plan
Year.

 

Article 8. Investment of Contributions.

 

8.01. Manner of Investment.  All contributions made to the Accounts of
Participants shall be held for investment by the Trustee. Except as otherwise
specifically provided in Section 20.10, the Accounts of Participants shall
be invested and reinvested only in Permissible Investments selected by the
Employer and designated in the Service Agreement.

 

8.02. Investment Decisions.  Investments shall be
directed by the Employer or by each Participant or both, in accordance with the
Employer’s election in Subsection 1.23 of the Adoption Agreement. Pursuant to Section 20.04,
the Trustee shall have no discretion or authority with respect to the
investment of the Trust Fund; however, an affiliate of the Trustee may exercise
investment management authority in accordance with Subsection (e) below.

 

(a) 
With respect to those Participant Accounts for which Employer investment
direction is elected, the Employer (in its capacity as a named fiduciary under
ERISA) has the right to direct the Trustee in writing with respect to the
investment and reinvestment of assets comprising the Trust Fund in the
Permissible Investments designated in the Service Agreement.

 

(b) With
respect to those Participant Accounts for which Participant investment
direction is elected, each Participant shall direct the investment of his
Account among the Permissible Investments designated in the Service Agreement.
The Participant shall file initial investment instructions with the
Administrator, on such form as the Administrator may provide, selecting the
Permissible Investments in which amounts credited to his Account shall be
invested.

 

(1) 
Except as provided in this Section 8.02, only authorized Plan contacts and
the Participant shall have access to a Participant’s Account. While any balance
remains in the Account of a Participant 

 

36

 

after
his death, the Beneficiary of the Participant shall make decisions as to the
investment of the Account as though the Beneficiary were the Participant. To
the extent required by a qualified domestic relations order as defined in Code Section 414(p),
an alternate payee shall make investment decisions with respect to any
segregated account established in the name of the alternate payee as provided
in Section 18.04.

 

(2) 
If the Trustee receives any contribution under the Plan as to which investment
instructions have not been provided, the Trustee shall promptly notify the
Administrator and the Administrator shall take steps to elicit instructions
from the Participant. The Trustee shall credit any such contribution to the
Participant’s Account and such amount shall be invested in the Permissible
Investment selected by the Employer for such purposes or, absent Employer
selection, in the most conservative Permissible Investment designated in the
Service Agreement, until investment instructions have been received by the
Trustee.

 

If the Employer elects to allow Participants to
direct the investment of their Account in Subsection 1.23(b) or (c) of
the Adoption Agreement, the Plan is intended to constitute a plan described in
ERISA Section 404(c) and regulations issued thereunder. The
fiduciaries of the Plan shall be relieved of liability for any losses that are
the direct and necessary result of investment instructions given by the
Participant, his Beneficiary, or an alternate payee under a qualified domestic
relations order. The Employer shall not be relieved of fiduciary responsibility
for the selection and monitoring of the Permissible Investments under the Plan.

 

(c) 
All dividends, interest, gains and distributions of any nature received in
respect of Fund Shares shall be reinvested in additional shares of that
Permissible Investment.

 

(d) 
Expenses attributable to the acquisition of investments shall be charged to the
Account of the Participant for which such investment is made.

 

(e) The
Employer may appoint an investment manager (which may be the Trustee or an
affiliate) to determine the allocation of amounts held in Participants’
Accounts among various investment options (the “Managed Account” option) for
Participants who direct the Trustee to invest any portion of their accounts in
the Managed Account option. The investment options utilized under the Managed
Account option may be those generally available under the Plan or may be as
selected by the investment manager for use under the Managed Account option.
Participation in the Managed Account option shall be subject to such conditions
and limitations (including account minimums) as may be imposed by the
investment manager.

 

8.03. Participant Directions to Trustee.  The method and frequency for change of
investments shall be determined under (a) the rules applicable to the
Permissible Investments selected by the Employer and designated in the Service
Agreement and (b) any additional rules of the Employer limiting the
frequency of investment changes, which are included in a separate written
administrative procedure adopted by the Employer and accepted by the Trustee.
The Trustee shall have no duty to inquire into the investment decisions of a
Participant or to advise him regarding the purchase, retention, or sale of
assets credited to his Account.

 

37

 

Article 9. Participant Loans.

 

9.01. Special Definitions.  For purposes of this Article, the following
special definitions shall apply:

 

(a) A
“participant” is any Participant
or Beneficiary, including an alternate payee under a qualified domestic
relations order, as defined in Code Section 414(p), who is a
party-in-interest (as determined under ERISA Section 3(14)) with respect
to the Plan.

 

(b) An
“owner-employee” is, if the
Employer is a sole proprietorship for Federal income tax purposes (regardless
of its characterization under state law), the individual who is the sole
proprietor or sole member, as applicable; if the Employer is a partnership for
Federal income tax purposes (regardless of its characterization under state
law), a partner or member, as applicable, who owns more than 10 percent of
either the capital interest or the profits interest of the partnership.

 

(c) A
“shareholder-employee” is an
employee or officer of an electing small business (Subchapter S) corporation
who owns (or is considered as owning within the meaning of Code Section 318(a)(1)),
on any day during the taxable year of such corporation, more than five percent
of the outstanding stock of the corporation.

 

9.02. Participant Loans.  If so provided by the Employer in Section 1.17
of the Adoption Agreement, the Administrator shall allow “participants” to
apply for a loan from their Accounts under the Plan, subject to the provisions
of this Article 9.

 

9.03. Separate Loan Procedures.  All Plan loans shall be made and administered
in accordance with separate loan procedures that are hereby incorporated into
the Plan by reference.

 

9.04. Availability of Loans.  Loans shall be made available to all
“participants” on a reasonably equivalent basis. Notwithstanding the preceding
sentence, no loans shall be made to (a) an Eligible Employee who makes a
Rollover Contribution in accordance with Section 5.06, but who has not
satisfied the requirements of Section 4.01 to become an Active Participant
or (b) a “shareholder-employee” or “owner-employee”.

 

Loans
shall not be made available to “participants” who are Highly Compensated
Employees in an amount greater than the amount made available to other
“participants”.

 

9.05. Limitation on Loan Amount.  No loan to any “participant” shall be made to
the extent that such loan when added to the outstanding balance of all other
loans to the “participant” would exceed the lesser of (a) $50,000 reduced
by the excess (if any) of the highest outstanding balance of plan loans during
the one-year period ending on the day before the loan is made over the
outstanding balance of plan loans on the date the loan is made, or (b) one-half
the present value of the “participant’s” vested interest in his Account. For
purposes of the above limitation, plan loans include all loans from all plans
maintained by the Employer and any Related Employer.

 

9.06. Interest Rate.  All loans shall bear a reasonable rate of
interest as determined by the Administrator based on the prevailing interest
rates charged by persons in the business of lending money for loans which would
be made under similar circumstances. The determination of a reasonable rate of
interest must be based on appropriate regional factors unless the Plan is
administered on a national basis in which case the Administrator may establish
a uniform reasonable rate of interest applicable to all regions.

 

38

 

9.07. Level Amortization.  All loans shall by their terms require that
repayment (principal and interest) be amortized in level payments, not less
than quarterly, over a period not extending beyond five years from the date of
the loan unless such loan is for the purchase of a “participant’s” primary
residence. Notwithstanding the foregoing, the amortization requirement may be
waived for a period not exceeding one year during which a “participant” is on a
leave of absence from employment with the Employer and any Related Employer
either without pay or at a rate of pay which, after withholding for employment
and income taxes, is less than the amount of the installment payments required
under the terms of the loan. Installment payments must resume after such leave
of absence ends or, if earlier, after the first year of such leave of absence,
in an amount that is not less than the amount of the installment payments
required under the terms of the original loan. No waiver of the amortization
requirements shall extend the period of the loan beyond five years from the
date of the loan, unless the loan is for purchase of the “participant’s”
primary residence.

 

9.08. Security.  Loans must be secured by the “participant’s”
vested interest in his Account not to exceed 50 percent of such vested
interest. If the provisions of Section 14.04 apply to a Participant, a
Participant must obtain the consent of his or her spouse, if any, to use his
vested interest in his Account as security for the loan. Spousal consent shall
be obtained no earlier than the beginning of the 90-day period that ends on the
date on which the loan is to be so secured. The consent must be in writing,
must acknowledge the effect of the loan, and must be witnessed by a Plan
representative or notary public. Such consent shall thereafter be binding with
respect to the consenting spouse or any subsequent spouse with respect to that
loan.

 

9.09. Transfer and Distribution of Loan Amounts from
Permissible Investments. The Employer shall confirm
the order in which the Permissible Investments shall be liquidated in order
that the loan amount can be transferred and distributed.

 

9.10. Default.  The Administrator shall treat a loan in
default if

 

(a) 
any scheduled repayment remains unpaid at the end of the period specified in
the separate loan procedures (unless payment is not made due to a waiver of the
amortization schedule for a “participant” who is on a leave of absence, as
described in Section 9.07), or

 

(b) 
there is an outstanding principal balance existing on a loan after the last
scheduled repayment date.

 

Upon
default, the entire outstanding principal and accrued interest shall be
immediately due and payable. If a distributable event (as defined by the Code)
has occurred, the Administrator shall direct the Trustee to foreclose on the
promissory note and offset the “participant’s” vested interest in his Account
by the outstanding balance of the loan. If a distributable event has not
occurred, the Administrator shall direct the Trustee to foreclose on the
promissory note and offset the “participant’s” vested interest in his Account
as soon as a distributable event occurs. The Trustee shall have no obligation
to foreclose on the promissory note and offset the outstanding balance of the
loan except as directed by the Administrator.

 

9.11. Effect of Termination Where Participant has
Outstanding Loan Balance.  If a Participant has an outstanding loan
balance at the time his employment terminates, the entire outstanding principal
and accrued interest shall be immediately due and payable. Any outstanding loan
amounts that are immediately due and payable hereunder shall be treated in
accordance with the provisions of Sections 9.10 and 9.12 as if the Participant
had defaulted on the outstanding loan.

 

39

 

9.12. Deemed Distributions Under Code Section 72(p).  Notwithstanding the provisions of Section 9.10,
if a “participant’s” loan is in default, the “participant” shall be treated as
having received a taxable “deemed distribution” for purposes of Code Section 72(p),
whether or not a distributable event has occurred. The amount of a loan that is
a deemed distribution ceases to be an outstanding loan for purposes of Code Section 72,
except as otherwise specifically provided herein, and a Participant shall not
be treated as having received a taxable distribution when the Participant’s
Account is offset by the outstanding balance of the loan amount as provided in Section 9.10.
In addition, interest that accrues on a loan after it is deemed distributed
shall not be treated as an additional loan to the Participant and shall not be
included in the income of the Participant as a deemed distribution.
Notwithstanding the foregoing, unless a Participant repays a loan that has been
deemed distributed, with interest thereon, the amount of such loan, with
interest, shall be considered an outstanding loan under Code Section 72(p) for
purposes of determining the applicable limitation on subsequent loans under Section 9.05.

 

If
a Participant makes payments on a loan that has been deemed distributed,
payments made on the loan after the date it was deemed distributed shall be
treated as Employee Contributions to the Plan for purposes of increasing the
Participant’s tax basis in his Account, but shall not be treated as Employee
Contributions for any other purpose under the Plan, including application of
the “ACP” test described in Section 6.06 and application of the Code Section 415
limitations described in Section 6.12.

 

The
provisions of this Section 9.12 regarding treatment of loans that are
deemed distributed shall be effective as of

 

(a) the
Effective Date, if the Plan is a new plan or is an amendment and restatement of
a plan that administered loans in accordance with the provisions of Q &
A 19 and 20 of Section 1.72(p)-1 of the Proposed Treasury Regulations
immediately prior to the Effective Date or

 

(b) as
of the January 1 coinciding with or immediately following the Effective
Date, in any other case.

 

Any
loan that was deemed distributed prior to the date the provisions of this Section 9.12
are effective shall be administered in accordance with the provisions of this Section 9.12
to the extent such administration is consistent with the transition rules in Q & A 21(c)(2)
of Section 1.72(p)-1 of the Proposed Treasury Regulations.

 

9.13. Determination of Account Value Upon Distribution
Where Plan Loan is Outstanding.  Notwithstanding any other provision of the
Plan, the portion of a “participant’s” vested interest in his Account that is
held by the Plan as security for a loan outstanding to the “participant” in
accordance with the provisions of this Article shall reduce the amount of
the Account payable at the time of death or distribution, but only if the
reduction is used as repayment of the loan. If less than 100 percent of a
“participant’s” vested interest in his Account (determined without regard to
the preceding sentence) is payable to the “participant’s” surviving spouse or
other Beneficiary, then the Account shall be adjusted by first reducing the
“participant’s” vested interest in his Account by the amount of the security
used as repayment of the loan, and then determining the benefit payable to the
surviving spouse or other Beneficiary.

 

40

 

Article 10. In-Service Withdrawals.

 

10.01. Availability of In-Service Withdrawals.  Except as otherwise permitted under Section 11.02
with respect to Participants who continue in employment past Normal Retirement
Age, or as required under Section 12.04 with respect to Participants who
continue in employment past their Required Beginning Date, a Participant shall
not be permitted to make a withdrawal from his Account under the Plan prior to
retirement or termination of employment with the Employer and all Related
Employers, if any, except as provided in this Article.

 

10.02. Withdrawal of Employee Contributions.  A Participant may elect to withdraw, in cash,
up to 100 percent of the amount then credited to his Employee Contributions
Account. Such withdrawals may be made at any time, unless the Employer elects
in Subsection 1.18(c)(1)(A) of the Adoption Agreement to limit the
frequency of such withdrawals.

 

10.03. Withdrawal of Rollover Contributions.  A Participant may elect to withdraw, in cash,
up to 100 percent of the amount then credited to his Rollover Contributions
Account. Such withdrawals may be made at any time.

 

10.04. Age 59 1/2 Withdrawals.  If so provided by the Employer in Subsection
1.18(b) or the Protected In-Service Withdrawals Addendum to the Adoption
Agreement, a Participant who continues in employment as an Employee and who has
attained the age of 59 1/2 is permitted to withdraw upon request all or any
portion of the Accounts specified by the Employer in Subsection 1.18(b) or
the Protected In-Service Withdrawals Addendum to the Adoption Agreement, as
applicable.

 

10.05. Hardship Withdrawals.  If so provided by the Employer in Subsection
1.18(a) of the Adoption Agreement, a Participant who continues in
employment as an Employee may apply to the Administrator for a hardship
withdrawal of all or any portion of his Deferral Contributions Account
(excluding any earnings thereon accrued after the later of December 31,
1988 or the last day of the last Plan Year ending before July 1, 1989)
and, if so provided by the Employer in Subsection 1.18(d)(2), such other
Accounts as may be specified in Subsection (c) of the Protected In-Service
Withdrawals Addendum to the Adoption Agreement. The minimum amount that a
Participant may withdraw because of hardship is $500.

 

For
purposes of this Section 10.05, a withdrawal is made on account of
hardship if made on account of an immediate and heavy financial need of the
Participant where such Participant lacks other available resources.
Determinations with respect to hardship shall be made by the Administrator and
shall be conclusive for purposes of the Plan, and shall be based on the
following special rules:

 

(a) 
The following are the only financial needs considered immediate and heavy:

 

(1) 
expenses incurred or necessary for medical care (within the meaning of Code Section 213(d))
of the Participant, the Participant’s spouse, children, or dependents;

 

(2) 
the purchase (excluding mortgage payments) of a principal residence for the
Participant;

 

(3) 
payment of tuition, related educational fees, and room and board for the next
12 months of post-secondary education for the Participant, the Participant’s
spouse, children or dependents;

 

(4) 
the need to prevent the eviction of the Participant from, or a foreclosure on
the mortgage of, the Participant’s principal residence; or

 

41

 

(5) 
any other financial need determined to be immediate and heavy under rules and
regulations issued by the Secretary of the Treasury or his delegate.

 

(b) 
A distribution shall be considered as necessary to satisfy an immediate and
heavy financial need of the Participant only if:

 

(1) 
The Participant has obtained all distributions, other than the hardship
withdrawal, and all nontaxable (at the time of the loan) loans currently
available under all plans maintained by the Employer or any Related Employer;

 

(2) 
The Participant suspends Deferral Contributions and Employee Contributions to
the Plan for the 12-month period following the date of his hardship withdrawal.
The suspension must also apply to all elective contributions and employee
contributions to all other qualified plans and non-qualified plans maintained
by the Employer or any Related Employer, other than any mandatory employee
contribution portion of a defined benefit plan, including stock option, stock
purchase, and other similar plans, but not including health and welfare benefit
plans (other than the cash or deferred arrangement portion of a cafeteria
plan);

 

(3) 
The withdrawal amount is not in excess of the amount of an immediate and heavy
financial need (including amounts necessary to pay any Federal, state or local
income taxes or penalties reasonably anticipated to result from the
distribution); and

 

(4) 
The Participant agrees to limit Deferral Contributions (and “elective
deferrals”, as defined in Subsection 6.01(i)) to the Plan and any other
qualified plan maintained by the Employer or a Related Employer for the
calendar year immediately following the calendar year in which the Participant
received the hardship withdrawal to the applicable limit under Code Section 402(g) for
such calendar year less the amount of the Participant’s Deferral Contributions
(and “elective deferrals”) for the calendar year in which the Participant
received the hardship withdrawal.

 

10.06. Preservation of Prior Plan In-Service Withdrawal
Rules.  As indicated
by the Employer in Subsection 1.18(d) of the Adoption Agreement, to the
extent required under Code Section 411(d)(6), in-service withdrawals that
were available under a prior plan shall be available under the Plan.

 

(a) 
If the Plan is a profit sharing plan, the following provisions shall apply to
preserve prior in-service withdrawal provisions.

 

(1) If
the Plan is an amendment and restatement of a prior plan or is a transferee
plan of a prior plan that provided for in-service withdrawals from a
Participant’s Matching Employer and/or Nonelective Employer Contributions
Accounts of amounts that have been held in such Accounts for a specified period
of time, a Participant shall be entitled to withdraw at any time prior to his
termination of employment, subject to any restrictions applicable under the
prior plan that the Employer elects in Subsection 1.18(d)(1)(A)(i) of the
Adoption Agreement to continue under the Plan as amended and restated hereunder
(other than any mandatory suspension of contributions restriction), any vested
amounts held in such Accounts for the period of time specified by the Employer
in Subsection 1.18(d)(1)(A) of the Adoption Agreement.

 

42

 

(2) 
If the Plan is an amendment and restatement of a prior plan or is a transferee
plan of a prior plan that provided for in-service withdrawals from a
Participant’s Matching Employer and/or Nonelective Employer Contributions
Accounts by Participants with at least 60 months of participation, a
Participant with at least 60 months of participation shall be entitled to
withdraw at any time prior to his termination of employment, subject to any
restrictions applicable under the prior plan that the Employer elects in
Subsection 1.18(d)(1)(B)(i) of the Adoption Agreement to continue under
the Plan as amended and restated hereunder (other than any mandatory suspension
of contributions restriction), any vested amounts held in such Accounts.

 

(3) 
If the Plan is an amendment and restatement of a prior plan or is a transferee
plan of a prior plan that provided for in-service withdrawals from a
Participant’s Matching Employer and/or Nonelective Employer Contributions
Accounts under any other circumstances, a Participant who has met any
applicable requirements, as set forth in the Protected In-Service Withdrawals
Addendum to the Adoption Agreement, shall be entitled to withdraw at any time
prior to his termination of employment any vested amounts held in such
Accounts, subject to any restrictions applicable under the prior plan that the
Employer elects to continue under the Plan as amended and restated hereunder,
as set forth in the Protected In-Service Withdrawal Addendum to the Adoption
Agreement.

 

(b) If
the Plan is a money purchase pension plan that is an amendment and restatement
of a prior profit sharing plan or is a transferee plan of a prior profit
sharing plan that provided for in-service withdrawals from any portion of a
Participant’s Account other than his Employee Contributions and/or Rollover
Contributions Accounts, a Participant who has met any applicable requirements,
as set forth in the Protected in-Service Withdrawals Addendum to the Adoption
Agreement, shall be entitled to withdraw at any time prior to his termination
of employment his vested interest in amounts attributable to such prior profit
sharing accounts, subject to any restrictions applicable under the prior plan
that the Employer elects to continue under the Plan as amended and restated
hereunder (other than any mandatory suspension of contributions restriction),
as set forth in the Protected In-Service Withdrawal Addendum to the Adoption
Agreement.

 

10.07. Restrictions on In-Service Withdrawals.  The following restrictions apply to any
in-service withdrawal made from a Participant’s Account under this Article:

 

(a) 
If the provisions of Section 14.04 apply to a Participant’s Account, the
Participant must obtain the consent of his spouse, if any, to obtain an
in-service withdrawal.

 

(b) 
In-service withdrawals shall be made in a lump sum payment, except that if the
provisions of Section 14.04 apply to a Participant’s Account, the
Participant may receive the in-service withdrawal in the form of a “qualified
joint and survivor annuity”, as defined in Subsection 14.01(a).

 

(c) 
Notwithstanding any other provision of the Plan to the contrary other than the
provisions of Section 11.02, a Participant shall not be permitted to make
an in-service withdrawal from his Account of amounts attributable to
contributions made to a money purchase pension plan, except employee and/or
rollover contributions that were held in a separate account(s) under such
plan.

 

10.08. Distribution of Withdrawal Amounts.  The Employer shall confirm the order in which
the Permissible Investments shall be liquidated in order that the withdrawal
amount can be distributed.

 

43

 

Article 11. Right to Benefits.

 

11.01. Normal or Early Retirement.  Each Participant who continues in employment
as an Employee until his Normal Retirement Age or, if so provided by the
Employer in Subsection 1.13(b) of the Adoption Agreement, Early Retirement
Age, shall have a vested interest in his Account of 100 percent regardless of
any vesting schedule elected in Section 1.15 of the Adoption Agreement. If
a Participant retires upon the attainment of Normal or Early Retirement Age,
such retirement is referred to as a normal retirement.

 

11.02. Late Retirement.  If a Participant continues in employment as
an Employee after his Normal Retirement Age, he shall continue to have a 100
percent vested interest in his Account and shall continue to participate in the
Plan until the date he establishes with the Employer for his late retirement.
Until he retires, he has a continuing election to receive all or any portion of
his Account.

 

11.03. Disability Retirement.  If so provided by the Employer in Subsection
1.13(c) of the Adoption Agreement, a Participant who becomes disabled
while employed as an Employee shall have a 100 percent vested interest in his
Account regardless of any vesting schedule elected in Section 1.15 of the
Adoption Agreement. An Employee is considered disabled if he satisfies any of
the requirements for disability retirement selected by the Employer in Section 1.14
of the Adoption Agreement and terminates his employment with the Employer. Such
termination of employment is referred to as a disability retirement.
Determinations with respect to disability shall be made by the Administrator.

 

11.04. Death.  If a Participant who is employed as an
Employee dies, his Account shall become 100 percent vested and his designated
Beneficiary shall be entitled to receive the balance of his Account, plus any
amounts thereafter credited to his Account. If a Participant whose employment
as an Employee has terminated dies, his designated Beneficiary shall be
entitled to receive the Participant’s vested interest in his Account.

 

A
copy of the death notice or other sufficient documentation must be filed with
and approved by the Administrator. If upon the death of the Participant there
is, in the opinion of the Administrator, no designated Beneficiary for part or
all of the Participant’s Account, such amount shall be paid to his surviving
spouse or, if none, to his estate (such spouse or estate shall be deemed to be
the Beneficiary for purposes of the Plan). If a Beneficiary dies after benefits
to such Beneficiary have commenced, but before they have been completed, and,
in the opinion of the Administrator, no person has been designated to receive
such remaining benefits, then such benefits shall be paid in a lump sum to the
deceased Beneficiary’s estate.

 

Subject
to the requirements of Section 14.04, a Participant may designate a
Beneficiary, or change any prior designation of Beneficiary by giving notice to
the Administrator on a form designated by the Administrator. If more than one
person is designated as the Beneficiary, their respective interests shall be as
indicated on the designation form. In the case of a married Participant, the
Participant’s spouse shall be deemed to be the designated Beneficiary unless
the Participant’s spouse has consented to another designation in the manner
described in Section 14.06.

 

11.05. Other Termination of Employment.  If a Participant terminates his employment
with the Employer and all Related Employers, if any, for any reason other than
death or normal, late, or disability retirement, he shall be entitled to a
termination benefit equal to the sum of (a) his vested interest in the
balance of his Matching Employer and/or Nonelective Employer Contributions
Account(s), other than the balance 

 

44

 

attributable
to safe harbor Matching Employer and/or safe harbor Nonelective Employer
Contributions elected by the Employer in Subsection 1.10(a)(3) or 1.11(a)(3) of
the Adoption Agreement, such vested interest to be determined in accordance
with the vesting schedule(s) selected by the Employer in Section 1.15
of the Adoption Agreement, and (b) the balance of his Deferral, Employee,
Qualified Nonelective Employer, Qualified Matching Employer, and Rollover
Contributions Accounts, and the balance of his Matching Employer or Nonelective
Employer Contributions Account that is attributable to safe harbor Matching
Employer and/or safe harbor Nonelective Employer Contributions.

 

11.06. Application for Distribution.   Unless a Participant’s Account is cashed out
as provided in Section 13.02, a Participant (or his Beneficiary, if the
Participant has died) who is entitled to a distribution hereunder must make
application, in a form acceptable to the Administrator, for a distribution from
his Account. No distribution shall be made hereunder without proper application
therefore, except as otherwise provided in Section 13.02.

 

11.07. Application of Vesting Schedule Following Partial
Distribution.   If a
distribution from a Participant’s Matching Employer and/or Nonelective Employer
Contributions Account has been made to him at a time when he is less than 100
percent vested in such Account balance, the vesting schedule(s) in Section 1.15
of the Adoption Agreement shall thereafter apply only to the balance of his
Account attributable to Matching Employer and/or Nonelective Employer
Contributions allocated after such distribution. The balance of the Account
from which such distribution was made shall be transferred to a separate
account immediately following such distribution.

 

At
any relevant time prior to a forfeiture of any portion thereof under Section 11.08,
a Participant’s vested interest in such separate account shall be equal to P(AB
+ (RxD))-(RxD), where P is the Participant’s vested interest at the relevant
time determined under Section 11.05; AB is the account balance of the
separate account at the relevant time; D is the amount of the distribution; and
R is the ratio of the account balance at the relevant time to the account
balance after distribution. Following a forfeiture of any portion of such
separate account under Section 11.08 below, any balance in the
Participant’s separate account shall remain 100 percent vested.

 

11.08. Forfeitures.  If a Participant terminates his employment
with the Employer and all Related Employers before he is 100 percent vested in
his Matching Employer and/or Nonelective Employer Contributions Accounts, the
non-vested portion of his Account (including any amounts credited after his
termination of employment) shall be forfeited by him as follows:

 

(a) 
If the Inactive Participant elects to receive distribution of his entire vested
interest in his Account, the non-vested portion of his Account shall be
forfeited upon the complete distribution of such vested interest, subject to
the possibility of reinstatement as provided in Section 11.10. For
purposes of this Subsection, if the value of an Employee’s vested interest in
his Account balance is zero, the Employee shall be deemed to have received a
distribution of his vested interest immediately following termination of
employment.

 

(b) If
the Inactive Participant elects not to receive distribution of his vested
interest in his Account following his termination of employment, the non-vested
portion of his Account shall be forfeited after the Participant has incurred
five consecutive Breaks in Vesting Service.

 

No
forfeitures shall occur solely as a result of a Participant’s withdrawal of
Employee Contributions.

 

45

 

11.09. Application of Forfeitures.  Any forfeitures occurring during a Plan Year
shall be applied to reduce the contributions of the Employer, unless the
Employer has elected in Subsection 1.15(d)(3) of the Adoption Agreement
that such remaining forfeitures shall be allocated among the Accounts of Active
Participants who are eligible to receive allocations of Nonelective Employer
Contributions for the Plan Year in which the forfeiture occurs. Forfeitures
that are allocated among the Accounts of eligible Active Participants shall be
allocated in the same manner as Nonelective Employer Contributions. If the plan
is a money purchase pension plan or the Employer has elected a fixed
Nonelective Employer Contribution rate rather than a discretionary rate,
forfeitures shall incrementally increase the amount allocated to the Accounts
of eligible Active Participants. Notwithstanding any other provision of the
Plan to the contrary, forfeitures may first be used to pay administrative
expenses under the Plan, as directed by the Employer. To the extent that
forfeitures are not used to reduce administrative expenses under the Plan, as
directed by the Employer, forfeitures will be applied in accordance with this Section 11.09.

 

Pending
application, forfeitures shall be held in the Permissible Investment selected
by the Employer for such purpose or, absent Employer selection, in the most
conservative Permissible Investment designated by the Employer in the Service
Agreement.

 

Notwithstanding
any other provision of the Plan to the contrary, in no event may forfeitures be
used to reduce the Employer’s obligation to remit to the Trust (or other
appropriate Plan funding vehicle) loan repayments made pursuant to Article 9,
Deferral Contributions or Employee Contributions.

 

11.10. Reinstatement of Forfeitures.  If a Participant forfeits any portion of his
Account under Subsection 11.08(a) because of distribution of his complete
vested interest in his Account, but again becomes an Employee, then the amount
so forfeited, without any adjustment for the earnings, expenses, losses, or
gains of the assets credited to his Account since the date forfeited, shall be
recredited to his Account (or to a separate account as described in Section 11.07,
if applicable) if he meets all of the following requirements:

 

(a) he
again becomes an Employee before the date he incurs five-consecutive Breaks in
Vesting Service following the date complete distribution of his vested interest
was made to him; and

 

(b) 
he repays to the Plan the amount previously distributed to him, without
interest, within five years of his Reemployment Date. If an Employee is deemed
to have received distribution of his complete vested interest as provided in Section 11.08,
the Employee shall be deemed to have repaid such distribution on his Reemployment
Date.

 

Upon
such an actual or deemed repayment, the provisions of the Plan (including Section 11.07)
shall thereafter apply as if no forfeiture had occurred. The amount to be
recredited pursuant to this paragraph shall be derived first from the forfeitures,
if any, which as of the date of recrediting have yet to be applied as provided
in Section 11.09 and, to the extent such forfeitures are insufficient,
from a special contribution to be made by the Employer.

 

11.11. Adjustment for Investment Experience. If any
distribution under this Article 11 is not made in a single payment, the
amount retained by the Trustee after the distribution shall be subject to
adjustment until distributed to reflect the income and gain or loss on the
investments in which such amount is invested and any expenses properly charged
under the Plan and Trust to such amounts.

 

46

 

Article 12. Distributions.

 

12.01. Restrictions on Distributions.  A Participant, or his Beneficiary, may not
receive a distribution from his Deferral Contributions, Qualified Nonelective
Employer Contributions, Qualified Matching Employer Contributions, safe harbor
Matching Employer Contributions or safe harbor Nonelective Employer
Contributions Accounts earlier than upon the Participant’s separation from
service with the Employer and all Related Employers, death, or disability,
except as otherwise provided in Article 10, Section 11.02 or Section 12.04.
Notwithstanding the foregoing, amounts may also be distributed from such
Accounts, in the form of a lump sum only, upon

 

(a) 
Termination of the Plan without establishment of another defined contribution
plan, other than an employee stock ownership plan (as defined in Code Section 4975(e) or
409) or a simplified employee pension plan as defined in Code Section 408(k).

 

(b) 
The disposition by a corporation to an unrelated corporation 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
the Plan after the disposition, but only with respect to former Employees who
continue employment with the corporation acquiring such assets.

 

(c) 
The disposition by a corporation to an unrelated entity of such corporation’s
interest in a subsidiary (within the meaning of Code Section 409(d)(3)) if
such corporation continues to maintain this Plan, but only with respect to
former Employees who continue employment with such subsidiary.

 

12.02. Timing of Distribution Following Retirement or
Termination of Employment. Except as otherwise elected
by the Employer in Subsection 1.20(b) and provided in the Postponed
Distribution Addendum to the Adoption Agreement, the balance of a Participant’s
vested interest in his Account shall be distributable upon his termination of
employment with the Employer and all Related Employers, if any, because of
death, normal, early, or disability retirement (as permitted under the Plan),
or other termination of employment. Notwithstanding the foregoing, a
Participant whose vested interest in his Account exceeds $5,000 as determined
under Section 13.02 (or such larger amount as may be specified in Code Section 417(e)(1))
may elect to postpone distribution of his Account until his Required Beginning
Date. A Participant who elects to postpone distribution has a continuing
election to receive such distribution prior to the date as of which
distribution is required, unless such Participant is reemployed as an Employee.

 

12.03. Participant Consent to Distribution.  If a Participant’s vested interest in his
Account exceeds $5,000 as determined under Section 13.02 (or such larger
amount as may be specified in Code Section 417(e)(1)), no distribution
shall be made to the Participant before he reaches his Normal Retirement Age
(or age 62, if later), unless the consent of the Participant has been obtained.
Such consent shall be made within the 90-day period ending on the Participant’s
Annuity Starting Date.

 

The
consent of the Participant’s spouse must also be obtained if the Participant’s
Account is subject to the provisions of Section 14.04, unless the
distribution shall be made in the form of a “qualified joint and survivor
annuity” as defined in Section 14.01. A spouse’s consent to early
distribution, if required, must satisfy the requirements of Section 14.06.

 

Neither
the consent of the Participant nor the Participant’s spouse shall be required
to the extent that a distribution is required to satisfy Code Section 401(a)(9) or
Code Section 415. In addition, upon termination 

 

47

 

of
the Plan if it does not offer an annuity option (purchased from a commercial
provider) and if the Employer or any Related Employer does not maintain another
defined contribution plan (other than an employee stock ownership plan as
defined in Code Section 4975(e)(7)) the Participant’s Account shall,
without the Participant’s consent, be distributed to the Participant. However,
if any Related Employer maintains another defined contribution plan (other than
an employee stock ownership plan as defined in Code Section 4975(e)(7))
then the Participant’s Account shall be transferred, without the Participant’s
consent, to the other plan if the Participant does not consent to an immediate
distribution.

 

12.04. Required Commencement of Distribution to
Participants.  In no event
shall distribution to a Participant commence later than the earlier of the
dates described in (a) and (b) below:

 

(a) 
unless the Participant (and his spouse, if appropriate) elects otherwise, the
60th day after the close of the Plan Year in which occurs the latest of (i) the
date on which the Participant attains Normal Retirement Age, or age 65, if
earlier, (ii) the date on which the Participant’s employment with the Employer
and all Related Employers ceases, or (iii) the 10th anniversary of the
year in which the Participant commenced participation in the Plan; and

 

(b) 
the Participant’s Required Beginning Date.

 

Notwithstanding
the provisions of Subsection 12.04(a) above, the failure of a Participant
(and the Participant’s spouse, if applicable) to consent to a distribution as
required under Section 12.03, shall be deemed to be an election to defer
commencement of payment as provided in Subsection 12.04(a) above.

 

12.05. Required Commencement of Distribution to
Beneficiaries.  If a
Participant dies before his Annuity Starting Date, the Participant’s
Beneficiary shall receive distribution of the Participant’s vested interest in
his Account in the form provided under Article 13 or 14, as applicable,
beginning as soon as reasonably practicable following the date the
Beneficiary’s application for distribution is filed with the Administrator.
Unless distribution is to be made over the life or over a period certain not
greater than the life expectancy of the Beneficiary, distribution of the
Participant’s entire vested interest shall be made to the Beneficiary no later
than the end of the fifth calendar year beginning after the Participant’s
death. If distribution is to be made over the life or over a period certain no
greater than the life expectancy of the Beneficiary, distribution shall
commence no later than:

 

(a) If the Beneficiary is not the Participant’s
spouse, the end of the first calendar year beginning after the Participant’s
death; or

 

(b) If the Beneficiary is the Participant’s
spouse, the later of (i) the end of the first calendar year beginning
after the Participant’s death or (ii) the end of the calendar year in
which the Participant would have attained age 70 1/2.

 

If
distribution is to be made to a Participant’s spouse, it shall be made
available within a reasonable period of time after the Participant’s death that
is no less favorable than the period of time applicable to other distributions.
In the event such spouse dies prior to the date distribution commences, he
shall be treated for purposes of this Section 12.05 (other than Subsection
12.05(b) above) as if he were the Participant. Any amount paid to a child
of the Participant shall be treated as if it had been paid to the surviving
spouse if the amount becomes payable to the surviving spouse when the child
reaches the age of majority.

 

48

 

If
the Participant has not designated a Beneficiary, or the Participant or Beneficiary
has not effectively selected a method of distribution, distribution of the
Participant’s benefit shall be completed by the close of the calendar year in
which the fifth anniversary of the death of the Participant occurs.

 

If
a Participant dies on or after his Annuity Starting Date, but before his entire
vested interest in his Account is distributed, his Beneficiary shall receive
distribution of the remainder of the Participant’s vested interest in his
Account beginning as soon as reasonably practicable following the Participant’s
date of death in a form that provides for distribution at least as rapidly as
under the form in which the Participant was receiving distribution.

 

12.06. Whereabouts of Participants and Beneficiaries.  The Administrator shall at all times be
responsible for determining the whereabouts of each Participant or Beneficiary
who may be entitled to benefits under the Plan and shall at all times be
responsible for instructing the Trustee in writing as to the current address of
each such Participant or Beneficiary. The Trustee shall be entitled to rely on
the latest written statement received from the Administrator as to such
addresses. The Trustee shall be under no duty to make any distributions under
the Plan unless and until it has received written instructions from the
Administrator satisfactory to the Trustee containing the name and address of
the distributee, the time when the distribution is to occur, and the form which
the distribution shall take.

 

Notwithstanding
the foregoing, if the Trustee attempts to make a distribution in accordance
with the Administrator’s instructions but is unable to make such distribution
because the whereabouts of the distributee is unknown, the Trustee shall notify
the Administrator of such situation and thereafter the Trustee shall be under
no duty to make any further distributions to such distributee until it receives
further written instructions from the Administrator.

 

If
the Administrator is unable after diligent attempts to locate a Participant or
Beneficiary who is entitled to a benefit under the Plan, the benefit otherwise
payable to such Participant or Beneficiary shall be forfeited and applied as
provided in Section 11.09. If a benefit is forfeited because the
Administrator determines that the Participant or Beneficiary cannot be found,
such benefit shall be reinstated by the Employer if a claim is filed by the
Participant or Beneficiary with the Administrator and the Administrator
confirms the claim to the Employer. Notwithstanding the above, forfeiture of a
Participant’s or Beneficiary’s benefit may occur only if a distribution could
be made to the Participant or Beneficiary without obtaining the Participant’s
or Beneficiary’s consent in accordance with the requirements of Section 1.411(a)-11
of the Treasury Regulations.

 

Article 13. Form of Distribution.

 

13.01. Normal Form of Distribution Under Profit
Sharing Plan.  Unless the
Plan is a money purchase pension plan subject to the requirements of Article 14,
or a Participant’s Account is otherwise subject to the requirements of Section 14.03
or 14.04, distributions to a Participant or to the Beneficiary of the
Participant shall be made in a lump sum in cash or, if elected by the
Participant (or the Participant’s Beneficiary, if applicable) and provided by
the Employer in Section 1.19 of the Adoption Agreement, under a systematic
withdrawal plan (installments). A Participant (or the Participant’s
Beneficiary, if applicable) who is receiving distribution under a systematic
withdrawal plan may elect to accelerate installment payments or to receive a
lump sum distribution of the remainder of his Account balance. Distribution may
also be made hereunder in any non-annuity form that is a protected benefit and
is provided by the Employer in Section 1.19(d) of the Adoption
Agreement.

 

49

 

Notwithstanding
anything herein to the contrary, if a distribution to a Participant commences
on the Participant’s Required Beginning Date as determined under Subsection 2.01(ss),
the Participant may elect to receive distributions under a systematic
withdrawal plan that provides the minimum distributions required under Code Section 401(a)(9).

 

Distributions
shall be made in cash, except that distributions may be made in Fund Shares of
marketable securities (as defined in Code Section 731(c)(2)), other than
Fund Shares of Employer Stock, at the election of the Participant, pursuant to
the qualifying rollover of such distribution to a Fidelity Investments®
individual retirement account. A distribution may be made in the form of Fund
Shares of Employer Stock or an in-kind distribution of Plan investments that
are not marketable securities only if and to the extent provided in Section 1.19(d) of
the Adoption Agreement; provided, however, that notwithstanding any other
provision of the Plan to the contrary, the right of a Participant to receive a
distribution in the form of Fund Shares of Employer Stock or an in-kind
distribution of Plan investments that are not marketable securities applies
only to that portion of the Participant’s Account invested in such form at the
time of distribution.

 

13.02. Cash Out Of Small Accounts.  Notwithstanding any other provision of the
Plan to the contrary, if a Participant’s vested interest in his Account is
$5,000 (or such larger amount as may be specified in Code Section 417(e)(1))
or less, the Participant’s vested interest in his Account shall be distributed
in a lump sum as soon as practicable following the Participant’s termination of
employment because of retirement, disability, death or other termination of
employment. For purposes of this Section, until final Treasury Regulations are
issued to the contrary, if either (a) a Participant has commenced
distribution of his Account under a systematic withdrawal plan or (b) his
Account is subject to the provisions of Section 14.04 and the
Participant’s Annuity Starting Date has occurred with respect to amounts
currently held in his Account, the Participant’s vested interest in his Account
shall be deemed to exceed $5,000 (or such larger amount as may be specified in
Code Section 417(e)(1)) if the Participant’s vested interest in such
amounts exceeded such dollar amount on the Participant’s Annuity Starting Date.

 

Notwithstanding
the provisions of this Section 13.02, the Employer may determine not to
cash out Participant Accounts in accordance with the foregoing provisions,
provided that such determination is uniform with respect to all Participants
and non-discriminatory.

 

13.03. Minimum Distributions.  This Section applies to distributions
under a systematic withdrawal plan that are made on or after a Participant’s
Required Beginning Date or his date of death, if earlier. This Section shall
be interpreted and applied in accordance with the regulations under Code Section 401(a)(9),
including the minimum distribution incidental benefit requirement of Section 1.401(a)(9)-2
of the Proposed Treasury Regulations, or any successor regulations of similar
import.

 

Distribution
must be made in substantially equal annual, or more frequent, installments, in
cash, over a period certain which does not extend beyond the life expectancy or
joint life expectancies of the Participant and his Beneficiary or, if the
Participant dies prior to the commencement of distributions from his Account,
the life expectancy of the Participant’s Beneficiary. The amount to be
distributed for each calendar year for which a minimum distribution is required
shall be at least an amount equal to the quotient obtained by dividing the
Participant’s interest in his Account by the life expectancy of the Participant
or Beneficiary or the joint life and last survivor expectancy of the
Participant and his Beneficiary, whichever is applicable. The amount to be
distributed for each calendar year shall not be less than an amount equal to
the quotient obtained by dividing the Participant’s interest in his Account by
the lesser of (a) the applicable life expectancy, or (b) if a
Participant’s Beneficiary is not his spouse, the applicable divisor determined
under Section 1.401(a)(9)-2, 

 

50

 

Q&A
4 of the Proposed Treasury Regulations, or any successor regulations of similar
import. Distributions after the death of the Participant shall be made using
the applicable life expectancy under (a) above, without regard to Section 1.401(a)(9)-2
of such regulations. For purposes of this Section 13.03, life expectancy
and joint life and last survivor expectancy shall be computed by use of the
expected return multiples in Table V and VI of Section 1.72-9 of the
Treasury Regulations.

 

For
purposes of this Section 13.03, the life expectancy of a Participant or a
Beneficiary who is the Participant’s surviving spouse shall be recalculated
annually unless the Participant or the Participant’s spouse irrevocably elects
otherwise prior to the time distributions are required to begin. If not
recalculated in accordance with the foregoing, life expectancy shall be
calculated using the attained age of the Participant or Beneficiary, whichever
is applicable, as of such individual’s birth date in the first year for which a
minimum distribution is required reduced by one for each elapsed calendar year
since the date life expectancy was first calculated.

 

If
the Participant dies after distribution of his benefits has begun,
distributions to the Participant’s Beneficiary shall be made at least as
rapidly as under the method of distribution being used as of the date of the
Participant’s death.

 

A
Participant’s interest in his Account for purposes of this Section 13.03
shall be determined as of the last valuation date in the calendar year
immediately preceding the calendar year for which a minimum distribution is
required, increased by the amount of any contributions allocated to, and
decreased by any distributions from, such Account after the valuation date. Any
distribution for the first year for which a minimum distribution is required
made after the close of such year shall be treated as if made prior to the
close of such year.

 

The
Administrator shall notify the Trustee in writing whenever a distribution is
necessary in order to comply with the minimum distribution rules set forth
in this Section 13.03.

 

13.04. Direct Rollovers.  Notwithstanding any other provision of the
Plan to the contrary, a “distributee” may elect, at the time and in the manner
prescribed by the Administrator, to have any portion or all of an “eligible
rollover distribution” paid directly to an “eligible retirement plan” specified
by the “distributee” in a direct rollover; provided, however, that this
provision shall not apply if the total “eligible rollover distribution” that
the “distributee” is reasonably expected to receive for the calendar year is
less than $200 and that a “distributee” may not elect a direct rollover with
respect to a portion of an “eligible rollover distribution” if such portion
totals less than $500. For purposes of this Section 13.04, the following
definitions shall apply:

 

(a) 
“Distributee” means a Participant , the Participant’s surviving spouse, and the
Participant’s spouse or former spouse who is the alternate payee under a
qualified domestic relations order, who is entitled to receive a distribution
from the Participant’s vested interest in his Account.

 

(b) 
“Eligible retirement plan” means an individual retirement account described in
Code Section 408(a), an individual retirement annuity described in Code Section 408(b),
an annuity plan described in Code Section 403(a), or a qualified trust
described in Code Section 401(a), that accepts “eligible rollover
distributions”. However, in the case of an “eligible rollover distribution” to
a surviving spouse, an “eligible retirement plan” means an individual
retirement account or individual retirement annuity.

 

51

 

(c) 
“Eligible rollover distribution” means 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 the following:

 

(1) 
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;

 

(2) 
any distribution to the extent such distribution is required under Code Section 401(a)(9);

 

(3) the
portion of any distribution that is not includable in gross income (determined
without regard to the exclusion for net unrealized appreciation with respect to
employer securities);

 

(4) 
any hardship withdrawal of Deferral Contributions made in accordance with the
provisions of Section 10.05 or the Protected In-Service Withdrawals
Addendum to the Adoption Agreement.

 

13.05. Notice Regarding Timing and Form of
Distribution.  Within the
period beginning 90 days before a Participant’s Annuity Starting Date and
ending 30 days before such date, the Administrator shall provide such
Participant with written notice containing a general description of the
material features and an explanation of the relative values of the forms of
benefit available under the Plan and informing the Participant of his right to
defer receipt of the distribution until his Required Beginning Date and his
right to make a direct rollover.

 

Distribution
may commence fewer than 30 days after such notice is given, provided that:

 

(a) 
the Administrator 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);

 

(b) 
the Participant, after receiving the notice, affirmatively elects a
distribution, with his spouse’s written consent, if necessary;

 

(c) 
if the Participant’s Account is subject to the requirements of Section 14.04,
the following additional requirements apply:

 

(1) 
the Participant is permitted to revoke his affirmative distribution election at
any time prior to the later of (A) his Annuity Starting Date or (B) the
expiration of the seven-day period beginning the day after such notice is
provided to him; and

 

(2) 
distribution does not begin to such Participant until such revocation period ends.

 

13.06. Determination of Method of Distribution.  Subject to Section 13.02, the
Participant shall determine the method of distribution of benefits to himself
and may determine the method of distribution to his Beneficiary. Such
determination shall be made prior to the time benefits become payable under the
Plan. If the Participant does not determine the method of distribution to his
Beneficiary or if the Participant permits his Beneficiary to override his
determination, the Beneficiary, in the event of the Participant’s death, shall
determine the method of distribution of benefits to himself as if he were the
Participant. A determination by the Beneficiary must be made no later than the
close of the calendar year in which distribution would be 

 

52

 

required
to begin under Section 12.05 or, if earlier, the close of the calendar
year in which the fifth anniversary of the death of the Participant occurs.

 

13.07. Notice to Trustee.  The Administrator shall notify the Trustee in
any medium acceptable to the Trustee, which may be specified in the Service
Agreement, whenever any Participant or Beneficiary is entitled to receive
benefits under the Plan. The Administrator’s notice shall indicate the form of
payment of benefits that such Participant or Beneficiary shall receive, (in the
case of distributions to a Participant) the name of any designated Beneficiary
or Beneficiaries, and such other information as the Trustee shall require.

 

Article 14. Superseding Annuity Distribution
Provisions.

 

14.01. Special Definitions.  For purposes of this Article, the following
special definitions shall apply:

 

(a) 
“Qualified joint and survivor annuity”
means (1) if the Participant is not married on his Annuity Starting Date,
an immediate annuity payable for the life of the Participant or (2) if the
Participant is married on his Annuity Starting Date, an immediate annuity for
the life of the Participant with a survivor annuity for the life of the
Participant’s spouse (to whom the Participant was married on the Annuity
Starting Date) which is equal to at least 50 percent of the amount of the
annuity which is payable during the joint lives of the Participant and such
spouse, provided that the survivor annuity shall not be payable to a
Participant’s spouse if such spouse is not the same spouse to whom the
Participant was married on his Annuity Starting Date.

 

(b) 
“Qualified preretirement survivor annuity”
means an annuity purchased with at least 50 percent of a Participant’s vested interest
in his Account that is payable for the life of a Participant’s surviving
spouse. The Employer shall specify that portion of a Participant’s vested
interest in his Account that is to be used to purchase the “qualified
preretirement survivor annuity” in Section 1.19 of the Adoption Agreement.

 

14.02. Applicability.  The provisions of this Article shall
apply to a Participant’s Account if:

 

(a)  the Plan is a money purchase pension
plan;

 

(b)  the
Plan is an amendment and restatement of a plan that provided an annuity form of
payment and such form of payment has not been eliminated pursuant to Subsection
1.19(e) and the Forms of Payment Addendum to the Adoption Agreement;

 

(c)  the
Participant’s Account contains assets attributable to amounts directly or
indirectly transferred from a plan that provided an annuity form of payment and
such form of payment has not been eliminated pursuant to Subsection 1.19(e) and
the Forms of Payment Addendum to the Adoption Agreement.

 

14.03. Annuity Form of Payment.  To the extent provided in Section 1.19
of the Adoption Agreement, a Participant may elect distributions made in whole
or in part in the form of an annuity contract. Any annuity contract distributed
under the Plan shall be subject to the provisions of this Section 14.03
and, to the extent provided therein, Sections 14.04 through 14.09.

 

(a) 
At the direction of the Administrator, the Trustee shall purchase the annuity
contract on behalf of a Participant or Beneficiary from an insurance company.
Such annuity contract shall be nontransferable.

 

53

 

(b) 
The terms of the annuity contract shall comply with the requirements of the
Plan and distributions under such contract shall be made in accordance with
Code Section 401(a)(9) and the regulations thereunder.

 

(c) 
The annuity contract may provide for payment over the life of the Participant
and, upon the death of the Participant, may provide a survivor annuity
continuing for the life of the Participant’s designated Beneficiary. Such an
annuity may provide for an annuity certain feature for a period not exceeding
the life expectancy of the Participant or, if the annuity is payable to the
Participant and a designated Beneficiary, the joint life and last survivor
expectancy of the Participant and such Beneficiary. If the Participant dies
prior to his Annuity Starting Date, the annuity contract distributed to the
Participant’s Beneficiary may provide for payment over the life of the
Beneficiary, and may provide for an annuity certain feature for a period not
exceeding the life expectancy of the Beneficiary. The types of annuity
contracts provided under the Plan shall be limited to the types of annuities
described in Section 1.19 and the Forms of Payment Addendum to the
Adoption Agreement.

 

(d) 
The annuity contract must provide for nonincreasing payments.

 

14.04. “Qualified Joint and Survivor Annuity” and
“Qualified Preretirement Survivor Annuity” Requirements.  The requirements of this Section 14.04
apply to a Participant’s Account if:

 

(a) 
the Plan is a money purchase pension plan;

 

(b) the
Plan is a profit sharing plan and the Employer has selected distribution in the
form of a life annuity as the normal form of distribution with respect to such
Participant’s Account in Subsection 1.19(c)(2)(B) of the Adoption
Agreement; or

 

(c) the
Plan is a profit sharing plan and the Employer has specified distribution in
the form of a life annuity as the normal form of distribution in Subsection
(c)(2)(B) of the Forms of Payment Addendum to the Adoption Agreement and
the Participant’s Annuity Starting Date occurs prior to the date specified in
Subsection (c)(4) of the Forms of Payment Addendum to the Adoption
Agreement;

 

(d) 
the Participant is permitted to elect and has elected distribution in the form
of an annuity contract payable over the life of the Participant.

 

If
a Participant’s Account is subject to the requirements of this Section 14.04,
distribution shall be made to the Participant in the form of a “qualified joint
and survivor annuity” (with a survivor annuity in the percentage amount
specified by the Employer in Subsection 1.19 of the Adoption Agreement), unless
the Participant waives the “qualified joint and survivor annuity” as provided
in Section 14.05. If the Participant dies prior to his Annuity Starting
Date, distribution shall be made to the Participant’s surviving spouse, if any,
in the form of a “qualified preretirement survivor annuity”, unless the
Participant waives the “qualified preretirement survivor annuity” as provided
in Section 14.05, or the Participant’s surviving spouse elects in writing
to receive distribution in one of the other forms of payment provided under the
Plan. If the Employer has specified in Section 1.19 of the Adoption
Agreement that less than 100 percent of a Participant’s Account shall be used
to purchase the “qualified preretirement survivor annuity”, distribution of the
balance of the Participant’s vested interest in his Account that is not used to
purchase the “qualified preretirement survivor 

 

54

 

annuity”
shall be distributed to the Participant’s designated Beneficiary in accordance
with the provisions of Sections 11.04 and 12.05.

 

14.05. Waiver of the “Qualified Joint and Survivor
Annuity” and/or “Qualified Preretirement Survivor Annuity” Rights.  A Participant may waive the “qualified joint
and survivor annuity” described in Section 14.04 and elect another form of
distribution permitted under the Plan at any time during the 90-day period
ending on his Annuity Starting Date; provided, however, that if the Participant
is married, his spouse must consent in writing to such election as provided in Section 14.06.
Spousal consent is not required if the Participant elects distribution in the
form of a different “qualified joint and survivor annuity”.

 

A
Participant may waive the “qualified preretirement survivor annuity” and
designate a non-spouse Beneficiary at any time during the “applicable election
period”; provided, however, that the Participant’s spouse must consent in
writing to such election as provided in Section 14.06. The “applicable
election period” begins on the later of (1) the date the Participant’s
Account becomes subject to the requirements of Section 14.04 or (2) the
first day of the Plan Year in which the Participant attains age 35 or, if he
terminates employment prior to such date, the date he terminates employment
with the Employer and all Related Employers. The “applicable election period”
ends on the earlier of the Participant’s Annuity Starting Date or the date of
the Participant’s death. A Participant whose employment has not terminated may
elect to waive the “qualified preretirement survivor annuity” prior to the Plan
Year in which he attains age 35, provided that any such waiver shall cease to
be effective as of the first day of the Plan Year in which the Participant
attains age 35.

 

If
the Employer has specified in Section 1.19 of the Adoption Agreement that
less than 100 percent of a Participant’s Account shall be used to purchase the
“qualified preretirement survivor annuity”, the Participant may designate a
non-spouse Beneficiary for the balance of the Participant’s vested interest in
his Account that is not used to purchase the “qualified preretirement survivor
annuity”. Such designation shall not be subject to the spousal consent
requirements of Section 14.06.

 

14.06. Spouse’s Consent to Waiver.  A spouse’s written consent to a Participant’s
waiver of the “qualified joint and survivor annuity” or “qualified
preretirement survivor annuity” forms of distribution must acknowledge the
effect of the Participant’s election and must be witnessed by a Plan
representative or a notary public. In addition, the spouse’s written consent
must either (a) specify the form of distribution elected instead of the
“qualified joint and survivor annuity”, if applicable, and that such form may
not be changed (except to a “qualified joint and survivor annuity”) without
written spousal consent and specify any non-spouse Beneficiary designated by
the Participant, if applicable, and that such designation may not be changed
without written spousal consent or (b) acknowledge that the spouse has the
right to limit consent as provided in clause (a) above, but permit the
Participant to change the form of distribution elected or the designated
Beneficiary without the spouse’s further consent.

 

A
Participant’s spouse shall be deemed to have given written consent to a
Participant’s waiver if the Participant establishes to the satisfaction of a
Plan representative that spousal consent cannot be obtained because the spouse
cannot be located or because of other circumstances set forth in Code Section 401(a)(11)
and Treasury Regulations issued thereunder.

 

Any
written consent given or deemed to have been given by a Participant’s spouse
hereunder shall be irrevocable and shall be effective only with respect to such
spouse and not with respect to any subsequent spouse.

 

55

 

A
spouse’s consent to a Participant’s waiver shall be valid only if the
applicable notice described in Section 14.07 or 14.08 has been provided to
the Participant.

 

14.07. Notice Regarding “Qualified Joint and Survivor
Annuity”.  The notice
provided to a Participant under Section 14.05 shall include a written
explanation of (a) the terms and conditions of the “qualified joint and
survivor annuity” provided herein, (b) the Participant’s right to make,
and the effect of, an election to waive the “qualified joint and survivor
annuity”, (c) the rights of the Participant’s spouse under Section 14.06,
and (d) the Participant’s right to revoke an election to waive the
“qualified joint and survivor annuity” prior to his Annuity Starting Date.

 

14.08. Notice Regarding “Qualified Preretirement Survivor
Annuity”.  If a
Participant’s Account is subject to the requirements of Section 14.04, the
Administrator shall provide the Participant with a written explanation of the
“qualified preretirement survivor annuity” comparable to the written
explanation provided with respect to the “qualified joint and survivor
annuity”, as described in Section 14.07. Such explanation shall be
furnished within whichever of the following periods ends last:

 

(a) the
period beginning with the first day of the Plan Year in which the Participant
reaches age 32 and ending with the end of the Plan Year preceding the Plan Year
in which he reaches age 35;

 

(b) a
reasonable period ending after the Employee becomes an Active Participant;

 

(c) a
reasonable period ending after Section 14.04 first becomes applicable to
the Participant’s Account; or

 

(d) in
the case of a Participant who separates from service before age 35, a
reasonable period ending after such separation from service.

 

For
purposes of the preceding sentence, the two-year period beginning one year
prior to the date of the event described in Subsection 14.08(b), (c) or (d) above,
whichever is applicable, and ending one year after such date shall be
considered reasonable, provided, that in the case of a Participant who
separates from service under Subsection 14.08(d) above and subsequently
recommences employment with the Employer, the applicable period for such
Participant shall be redetermined in accordance with this Section 14.08.

 

14.09. Former Spouse.  For purposes of this Article, a former spouse
of a Participant shall be treated as the spouse or surviving spouse of the
Participant, and a current spouse shall not be so treated, to the extent
required under a qualified domestic relations order, as defined in Code Section 414(p).

 

Article 15. Top-Heavy Provisions.

 

15.01. Definitions.  For purposes of this Article, the following
special definitions shall apply:

 

(a) 
“Determination date” 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 the Plan, “determination date” means the
last day of that Plan Year.

 

56

 

(b) 
“Determination period” means the
Plan Year containing the “determination date” and the four preceding Plan
Years.

 

(c) 
“Key employee” means any Employee
or former Employee (and the  Beneficiary
of any such Employee) who at any time during the “determination period” was (1) an
officer of the Employer or a Related Employer whose annual Compensation exceeds
50 percent of the dollar limitation under Code Section 415(b)(1)(A), (2) one
of the ten Employees whose annual Compensation from the Employer or a Related
Employer exceeds the dollar limitation under Code Section 415(c)(1)(A) and
who owns (or is considered as owning under Code Section 318) one of the
largest interests in the Employer and all Related Employers, (3) a five
percent owner of the Employer and all Related Employers, or (4) a one
percent owner of the Employer and all Related Employers whose annual
Compensation exceeds $150,000. The determination of who is a “key employee”
shall be made in accordance with Code Section 416(i)(1)  and
regulations issued thereunder.

 

(d) 
“Permissive aggregation group”
means the “required aggregation group” plus any other qualified plans of the
Employer or a Related 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.

 

(e) 
“Required aggregation group”
means:

 

(1) 
Each qualified plan of the Employer or Related Employer in which at least one
“key employee” participates, or has participated at any time during the
“determination period” (regardless of whether the plan has terminated), and

 

(2) 
any other qualified plan of the Employer or Related Employer which enables a
plan described in Subsection 15.01(e)(1) above to meet the requirements of
Code Section 401(a)(4) or 410.

 

(f) “Top-heavy plan” means a plan in which any
of the following conditions exists:

 

(1) 
the “top-heavy ratio” for the plan exceeds 60 percent and the Plan is not part
of any “required aggregation group” or “permissive aggregation group”;

 

(2) 
the plan is a part of a “required aggregation group” but not part of a
“permissive aggregation group” and the “top-heavy ratio” for the “required
aggregation group” exceeds 60 percent; or

 

(3) 
the plan is a part of a “required aggregation group” and a “permissive
aggregation group” and the “top-heavy ratio” for both groups exceeds 60
percent.

 

(g) 
“Top-heavy ratio” means:

 

(1) 
With respect to the Plan, or with respect to any “required aggregation group”
or “permissive aggregation group” that consists solely of defined contribution
plans (including any simplified employee pension, as defined in Code Section 408(k)),
a fraction, the numerator of which is the sum of the account balances of all “key
employees” under the plans as of the “determination date” (including any part
of any account balance distributed during the five-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 during the
five-year period ending on the 

 

57

 

“determination
date”) of all participants under the plans as of the “determination date”. Both
the numerator and denominator of the “top-heavy ratio” shall be increased, to
the extent required by Code Section 416, to reflect any contribution which
is due but unpaid as of the “determination date”.

 

(2) 
With respect to any “required aggregation group” or “permissive aggregation
group” that includes one or more defined benefit plans which, during the
five-year period ending on the “determination date”, has covered or could cover
an Active Participant in the Plan, a fraction, the numerator of which is the
sum of the account balances under the defined contribution plans for all “key
employees” and the present value of accrued benefits under the defined benefit
plans for all “key employees”, and the denominator of which is the sum of the
account balances under the defined contribution plans for all participants and
the present value of accrued benefits under the defined benefit plans for all
participants. Both the numerator and denominator of the “top-heavy ratio” shall
be increased for any distribution of an account balance or an accrued benefit
made during the five-year period ending on the “determination date” and any
contribution due but unpaid as of the “determination date”.

 

For purposes of Subsections 15.01(g)(1) and (2) above,
the value of accounts and the present value of accrued benefits shall be
determined as of the most recent “determination date”, except as provided in
Code Section 416 and the regulations issued thereunder for the first and
second plan years of a defined benefit plan. When aggregating plans, the value
of accounts and accrued benefits shall be calculated with reference to the
“determination dates” that fall within the same calendar year. The present
value of accrued benefits shall be determined using the interest rate and
mortality table specified in Subsection 1.21(b) of the Adoption Agreement.

 

The accounts and accrued benefits of a Participant
who is not a “key employee” but who was a “key employee” in a prior year, or
who has not performed services for the Employer or any Related Employer at any
time during the five-year period ending on the “determination date”, shall be
disregarded. The calculation of the “top-heavy ratio”, and the extent to which
distributions, rollovers, and transfers are taken into account, shall be made
in accordance with Code Section 416 and the regulations issued thereunder.
Deductible employee contributions shall not be taken into account for purposes
of computing the “top-heavy ratio”.

 

For purposes of determining if the Plan, or any
other plan included in a “required aggregation group” of which the Plan is a
part, is a “top-heavy plan”, the accrued benefit in a defined benefit plan of
an Employee other than a “key employee” shall be determined under the method,
if any, that uniformly applies for accrual purposes under all plans maintained
by the Employer or a Related Employer, or, if there is no such method, as if
such benefit accrued not more rapidly than the slowest accrual rate permitted
under the fractional accrual rate of Code Section 411(b)(1)(C).

 

15.02. Application.  If the Plan is or becomes a “top-heavy plan”
in any Plan Year or is automatically deemed to be a “top-heavy plan” in
accordance with the Employer’s selection in Subsection 1.21(a)(1) of the
Adoption Agreement, the provisions of this Article shall apply and shall
supersede any conflicting provision in the Plan.

 

15.03. Minimum Contribution.  Except as otherwise specifically provided in
this Section 15.03, the Nonelective Employer Contributions made for the
Plan Year on behalf of any Active Participant who is not a “key employee” shall
not be less than the lesser of three percent (or such other percentage selected
by the 

 

58

 

Employer
in Subsection 1.21(c) of the Adoption Agreement) of such Participant’s
Compensation for the Plan Year or, in the case where neither the Employer nor
any Related Employer maintains a defined benefit plan which uses the Plan to
satisfy Code Section 401(a)(4) or 410, the largest percentage of
Employer contributions made on behalf of any “key employee” for the Plan Year,
expressed as a percentage of the “key employee’s” Compensation for the Plan
Year, unless the Employer has provided in Subsection 1.21(c) of the
Adoption Agreement that the minimum contribution requirement shall be met under
the other plan or plans of the Employer.

 

The
minimum contribution required under this Section 15.03 shall be made to
the Account of an Active Participant even though, under other Plan provisions,
the Active Participant would not otherwise be entitled to receive a
contribution, or would have received a lesser contribution for the Plan Year,
because (a) the Active Participant failed to complete the Hours of Service
requirement selected by the Employer in Subsection 1.10(d) or 1.11(c) of
the Adoption Agreement, or (b) the Participant’s Compensation was less
than a stated amount; provided, however, that no minimum contribution shall be
made for a Plan Year to the Account of an Active Participant who is not
employed by the Employer or a Related Employer on the last day of the Plan
Year.

 

The
minimum contribution for the Plan Year made on behalf of each Active
Participant who is not a “key employee” and who is a participant in a defined
benefit plan maintained by the Employer or a Related Employer shall not be less
than five percent of such Participant’s Compensation for the Plan Year, unless
the Employer has provided in Subsection 1.21(c) of the Adoption Agreement
that the minimum contribution requirement shall be met under the other plan or
plans of the Employer.

 

That
portion of a Participant’s Account that is attributable to minimum
contributions required under this Section 15.03, to the extent required to
be nonforfeitable under Code Section 416(b), may not be forfeited under
Code Section 411(a)(3)(B).

 

Notwithstanding
any other provision of the Plan to the contrary, for purposes of this Article,
Compensation shall include amounts that are not includable in the gross income
of the Participant under a salary reduction agreement by reason of the
application of Code Section 125, 132(f)(4), 402(e)(3), 402(h), or 403(b).
Compensation shall generally be based on the amount actually paid to the
Eligible Employee during the Plan Year or during that portion of the Plan Year
during which the Eligible Employee is an Active Participant, as elected by the
Employer in Subsection 1.05(c) of the Adoption Agreement.

 

15.04. Modification of Allocation Provisions to Meet
Minimum Contribution Requirements.  If the Employer elected a discretionary
Nonelective Employer Contribution in Subsection 1.11(b) of the Adoption
Agreement, the provisions for allocating Nonelective Employer Contributions
described in Subsection 5.10(b) shall be modified as provided herein to
meet the minimum contribution requirements of Section 15.03.

 

(a) 
If the Employer selected the non-integrated formula in Subsection 1.11(b)(1) of
the Adoption Agreement, Nonelective Employer Contributions shall be allocated
as follows:

 

(1) 
Nonelective Employer Contributions shall be allocated to each eligible Active
Participant, as determined under this Section 15.04, who is not a “key
employee” in the same ratio that the eligible Active Participant’s Compensation
for the Plan Year bears to the total Compensation of all such eligible Active
Participants for the Plan Year; provided, however that such ratio shall not
exceed 

 

59

 

three
percent of a Participant’s Compensation for the Plan Year (or such other
percentage selected by the Employer in Subsection 1.21(c) of the Adoption
Agreement).

 

(2) 
If any Nonelective Employer Contributions remain after the allocation in
Subsection 15.04(a)(1) above, the remaining Nonelective Employer
Contributions shall be allocated to each eligible Active Participant, as
determined under this Section 15.04, who is a “key employee” in the same
ratio that the eligible Active Participant’s Compensation for the Plan Year
bears to the total Compensation of all such eligible Active Participants for
the Plan Year; provided, however that such ratio shall not exceed three percent
of a Participant’s Compensation for the Plan Year (or such other percentage
selected by the Employer in Subsection 1.21(c) of the Adoption Agreement).

 

(3) 
If any Nonelective Employer Contributions remain after the allocation in Subsection
15.04(a)(2) above, the remaining Nonelective Employer Contributions shall
be allocated to each eligible Active Participant, as determined under this Section 15.04,
in the same ratio that the eligible Active Participant’s Compensation for the
Plan Year bears to the total Compensation of all such eligible Active
Participants for the Plan Year.

 

(b) 
If the Employer selected the integrated formula in Subsection 1.11(b)(2) of
the Adoption Agreement, the “permitted disparity limit”, as defined in Subsection
1.11(b)(2) of the Adoption Agreement, shall be reduced by the percentage
allocated under Subsection 15.04(b)(1) or (2) below, and the
allocation steps in Subsection 5.10(b)(2) shall be preceded by the
following steps:

 

(1) 
Nonelective Employer Contributions shall be allocated to each eligible Active
Participant, as determined under this Section 15.04, who is not a “key
employee” in the same ratio that the eligible Active Participant’s Compensation
for the Plan Year bears to the total Compensation of all such eligible Active
Participants for the Plan Year; provided, however that such ratio shall not
exceed three percent of a Participant’s Compensation for the Plan Year (or such
other percentage selected by the Employer in Subsection 1.21(c) of the Adoption
Agreement).

 

(2) 
If any Nonelective Employer Contributions remain after the allocation in
Subsection 15.04(b)(1) above, the remaining Nonelective Employer
Contributions shall be allocated to each eligible Active Participant, as
determined under this Section 15.04, who is a “key employee” in the same
ratio that the eligible Active Participant’s Compensation for the Plan Year
bears to the total Compensation of all such eligible Active Participants for
the Plan Year; provided, however that such ratio shall not exceed three percent
of a Participant’s Compensation for the Plan Year (or such other percentage
selected by the Employer in Subsection 1.21(c) of the Adoption Agreement).

 

(3) 
If any Nonelective Employer Contributions remain after the allocation in
Subsection 15.04(b)(2) above, the remaining Nonelective Employer
Contributions shall be allocated to each eligible Active Participant in the
same ratio that the eligible Active Participant’s Excess Compensation for the
Plan Year bears to the total Excess Compensation of all eligible Participants
for the Plan Year; provided, however, that such ratio shall not exceed three
percent (or such other percentage selected by the Employer in Subsection 1.21(c) of
the Adoption Agreement).

 

15.05. Adjustment to the Limitation on Contributions and
Benefits.  For
Limitation Years beginning prior to January 1, 2000, if the Plan is a
“top-heavy plan”, the number 100 shall be substituted for the number 125 in
determining the “defined benefit fraction”, as defined in Subsection 6.01(f) and
the “defined contribution 

 

60

 

fraction”,
as defined in Subsection 6.01(g). However, this substitution shall not take
effect with respect to the Plan in any Plan Year in which the following
requirements are satisfied:

 

(a) 
The Employer contributions for such Plan Year made on behalf of each eligible
Active Participant, as determined under Section 15.03, who is not a “key
employee” and who is a participant in a defined benefit plan maintained by the
Employer or a Related Employer is not less than 7 1o percent of
such eligible Active Participant’s Compensation.

 

(b) 
The “top-heavy ratio” for the Plan (or the “required aggregation group” or
“permissible aggregation group”, as applicable) does not exceed 90 percent.

 

The
substitutions of the number 100 for 125 shall not take effect in any Limitation
Year with respect to any Participant for whom no benefits are accrued or
contributions made for the Limitation Year.

 

15.06. Accelerated Vesting.  For any Plan Year in which the Plan is or is
deemed to be a “top-heavy plan” and all Plan Years thereafter, the top-heavy
vesting schedule selected by the Employer in Subsection 1.21(d) of the
Adoption Agreement shall automatically apply to the Plan. The top-heavy vesting
schedule applies to all benefits within the meaning of Code Section 411(a)(7) except
those already subject to a vesting schedule which vests at least as rapidly in
all cases as the schedule elected in Subsection 1.21(d) of the Adoption
Agreement, including benefits accrued before the Plan becomes a “top-heavy
plan”. Notwithstanding the foregoing provisions of this Section 15.06, the
top-heavy vesting schedule does not apply to the Account of any Participant who
does not have an Hour of Service after the Plan initially becomes or is deemed
to have become a “top-heavy plan” and such Employee’s Account attributable to
Employer Contributions shall be determined without regard to this Section 15.06.

 

15.07. Exclusion of Collectively-Bargained Employees.  Notwithstanding any other provision of this Article 15,
Employees who are included in a unit covered by an agreement which the
Secretary of Labor finds to be a collective bargaining agreement between
employee representatives and one or more employers shall not be included in
determining whether or not the Plan is a “top-heavy plan”. In addition, such
Employees shall not be entitled to a minimum contribution under Section 15.03
or accelerated vesting under Section 15.06, unless otherwise provided in
the collective bargaining agreement.

 

Article 16. Amendment and Termination.

 

16.01. Amendments by the Employer that do Not Affect
Prototype Status.  The
Employer reserves the authority through a board of directors’ resolution or
similar action, subject to the provisions of Article 1 and Section 16.04,
to amend the Plan as provided herein, and such amendment shall not affect the
status of the Plan as a prototype plan.

 

(a)           The Employer
may amend the Adoption Agreement to make a change or changes in the provisions
previously elected by it. Such amendment may be made either by (1) completing
an amended Adoption Agreement on which the Employer has indicated the change or
changes, or (2) adopting an amendment, executed by the Employer only, in
the form provided by the Prototype Sponsor, that provides replacement pages to
be inserted into the Adoption Agreement, which pages include the change or
changes. Any such amendment must be filed with the Trustee.

 

61

 

(b) 
The Employer may make a separate amendment to the Plan as necessary to satisfy
Code Section 415 or 416 because of the required aggregation of multiple
plans by completely overriding the Basic Plan Document provisions.

 

(c) 
The Employer may adopt certain model amendments published by the Internal
Revenue Service which specifically provide that their adoption shall not cause
the Plan to be treated as an individually designed plan.

 

16.02. Amendments by the Employer that Affect Prototype
Status.  The Employer
reserves the authority through a board of directors’ resolution or similar
action, subject to the provisions of Section 16.04, to amend the Plan in a
manner other than that provided in Section 16.01. However, upon making
such amendment, including, if the Plan is a money purchase pension plan, a
waiver of the minimum funding requirement under Code Section 412(d), the
Employer may no longer participate in this prototype plan arrangement and shall
be deemed to have an individually designed plan. Following such amendment, the
Trustee may transfer the assets of the Trust to the trust forming part of such
newly adopted plan upon receipt of sufficient evidence (such as a determination
letter or opinion letter from the Internal Revenue Service or an opinion of counsel
satisfactory to the Trustee) that such trust shall be a qualified trust under
the Code.

 

16.03. Amendment by the Mass Submitter Sponsor and the
Prototype Sponsor.  The
Mass Submitter Sponsor may in its discretion amend the mass submitter prototype
plan at any time, subject to the provisions of Article 1 and Section 16.04,
and provided that the Mass Submitter Sponsor mails a copy of such amendment to
each Prototype Sponsor that maintains the prototype plan or a minor modifier of
the prototype plan. Each Prototype Sponsor shall provide a copy of such
amendment to each Employer adopting its prototype plan at the Employer’s last
known address as shown on the books maintained by the Prototype Sponsor or its
affiliates.

 

The
Prototype Sponsor may, in its discretion, amend the Plan or the Adoption
Agreement, subject to the provisions of Article 1 and Section 16.04,
and provided that such amendment does not change the Plan’s status as a word
for word adoption of the mass submitter prototype plan or a minor modifier of
the mass submitter prototype plan, unless such Prototype Sponsor elects no
longer to be a sponsoring organization with respect to the mass submitter
prototype plan. The Prototype Sponsor shall provide a copy of such amendment to
each Employer adopting its prototype plan at the Employer’s last known address
as shown on the books maintained by the Prototype Sponsor or its affiliates.

 

16.04. Amendments Affecting Vested and/or Accrued Benefits.  Except as permitted by Section 16.05, Section 1.19(e) and
the Forms of Payment Addendum to the Adoption Agreement, and/or Code Section 411(d)(6) and
regulations issued thereunder, no amendment to the Plan shall be effective to
the extent that it has the effect of decreasing a Participant’s Account or
eliminating an optional form of benefit with respect to benefits attributable
to service before the amendment. Furthermore, if the vesting schedule of the
Plan is amended, the nonforfeitable interest of a Participant in his Account,
determined as of the later of the date the amendment is adopted or the date it
becomes effective, shall not be less than the Participant’s nonforfeitable
interest in his Account determined without regard to such amendment.

 

If
the Plan is a money purchase pension plan, no amendment to the Plan that
provides for a significant reduction in contributions to the Plan shall be made
unless notice has been furnished to Participants and alternate payees under a
qualified domestic relations order as provided in ERISA Section 204(h).

 

62

 

If
the Plan’s vesting schedule is amended because of a change to “top-heavy plan”
status, as described in Subsection 15.01(f), the accelerated vesting provisions
of Section 15.06 shall continue to apply for all Plan Years thereafter,
regardless of whether the Plan is a “top-heavy plan” for such Plan Year.

 

If
the Plan’s vesting schedule is amended and an Employee’s vested interest, as
calculated by using the amended vesting schedule, is less in any year than the
Employee’s vested interest calculated under the Plan’s vesting schedule
immediately prior to the amendment, the amended vesting schedule shall apply
only to Employees hired on or after the effective date of the change in vesting
schedule.

 

16.05. Retroactive Amendments made by Mass Submitter or
Prototype Sponsor.  An
amendment made by the Mass Submitter Sponsor or Prototype Sponsor in accordance
with Section 16.03 may be made effective on a date prior to the first day
of the Plan Year in which it is adopted if, in published guidance, the Internal
Revenue Service either permits or requires such an amendment to be made to
enable the Plan and Trust to satisfy the applicable requirements of the Code
and all requirements for the retroactive amendment are satisfied.

 

16.06. Termination.  The Employer has adopted the Plan with the
intention and expectation that contributions shall be continued indefinitely.
However, said Employer has no obligation or liability whatsoever to maintain
the Plan for any length of time and may amend the Plan to discontinue
contributions under the Plan or terminate the Plan at any time without any
liability hereunder for any such discontinuance or termination. The Employer
may terminate the Plan by written notice delivered to the Trustee.

 

16.07. Distribution upon Termination of the Plan.  Upon termination or partial termination of
the Plan or complete discontinuance of contributions thereunder, each
Participant (including a terminated Participant with respect to amounts not
previously forfeited by him) who is affected by such termination or partial
termination or discontinuance shall have a vested interest in his Account of
100 percent. Subject to Section 12.01 and Article 14, upon receipt of
written instructions from the Administrator, the Trustee shall distribute to
each Participant or other person entitled to distribution the balance of the
Participant’s Account in a single lump sum payment. In the absence of such
instructions, the Trustee shall notify the Administrator of such situation and
the Trustee shall be under no duty to make any distributions under the Plan
until it receives written instructions from the Administrator. Upon the
completion of such distributions, the Trust shall terminate, the Trustee shall
be relieved from all liability under the Trust, and no Participant or other
person shall have any claims thereunder, except as required by applicable law.

 

If
distribution is to be made to a Participant or Beneficiary who cannot be
located, the Administrator shall give written instructions to the Trustee to (a) escheat
the distributable amount to the State or Commonwealth of the distributee’s last
known address or (b) draw a check in the distributable amount and mail it
to the distributee’s last known address. In the absence of such instructions,
the Trustee shall make distribution to the distributee by drawing a check in
the distributable amount and mailing it to the distributee’s last known
address.

 

16.08. Merger or Consolidation of Plan; Transfer of Plan
Assets.  In case of
any merger or consolidation of the Plan with, or transfer of assets and
liabilities of the Plan to, any other plan, provision must be made so that each
Participant would, if the Plan then terminated, receive a benefit immediately
after the merger, consolidation or transfer which is equal to or greater than
the benefit he would have been entitled to receive immediately before the
merger, consolidation or transfer if the Plan had then terminated.

 

63

 

Article 17. Amendment and Continuation of Prior Plan;
Transfer of Funds to or from Other Qualified Plans.

 

17.01. Amendment and Continuation of Prior Plan.  In the event the Employer has previously
established a plan (the “prior plan”) which is a defined contribution plan
under the Code and which on the date of adoption of the Plan meets the
applicable requirements of Code Section 401(a), the Employer may, in
accordance with the provisions of the prior plan, amend and restate the prior
plan in the form of the Plan and become the Employer hereunder, subject to the
following:

 

(a) Subject
to the provisions of the Plan, each individual who was a Participant in the
prior plan immediately prior to the effective date of such amendment and
restatement shall become a Participant in the Plan.

 

(b) Except
as provided in Section 16.04, no election may be made under the vesting
provisions of the Adoption Agreement if such election would reduce the benefits
of a Participant under the Plan to less than the benefits to which he would
have been entitled if he voluntarily separated from the service of the Employer
immediately prior to such amendment and restatement.

 

(c) No
amendment to the Plan shall decrease a Participant’s accrued benefit or
eliminate an optional form of benefit, except as permitted under Section 1.19(e) and
the Forms of Payment Addendum to the Adoption Agreement.

 

(d) The
amounts standing to the credit of a Participant’s account immediately prior to
such amendment and restatement which represent the amounts properly
attributable to (1) contributions by the Participant and (2) contributions
by the Employer and forfeitures shall constitute the opening balance of his
Account or Accounts under the Plan.

 

(e) 
Amounts being paid to an Inactive Participant or to a Beneficiary in accordance
with the provisions of the prior plan shall continue to be paid in accordance
with such provisions.

 

(f) 
Any election and waiver of the “qualified preretirement survivor annuity”, as
defined in Section 14.01, in effect after August 23, 1984, under the
prior plan immediately before such amendment and restatement shall be deemed a
valid election and waiver of Beneficiary under Section 14.04 if such
designation satisfies the requirements of Sections 14.05 and 14.06, unless and
until the Participant revokes such election and waiver under the Plan.

 

(g) 
Unless the Employer and the Trustee agree otherwise, all assets of the
predecessor trust shall be deemed to be assets of the Trust as of the effective
date of such amendment. Such assets shall be invested by the Trustee as soon as
reasonably practicable pursuant to Article 8. The Employer agrees to
assist the Trustee in any way requested by the Trustee in order to facilitate
the transfer of assets from the predecessor trust to the Trust Fund.

 

17.02. Transfer of Funds from an Existing Plan.  The Employer may from time to time direct the
Trustee, in accordance with such rules as the Trustee may establish, to
accept cash, allowable Fund Shares or participant loan promissory notes
transferred for the benefit of Participants from a trust forming part of
another qualified plan under the Code, provided such plan is a defined
contribution plan. Such transferred 

 

64

 

assets
shall become assets of the Trust as of the date they are received by the
Trustee. Such transferred assets shall be credited to Participants’ Accounts in
accordance with their respective interests immediately upon receipt by the
Trustee. A Participant’s interest under the Plan in transferred assets which
were fully vested and nonforfeitable under the transferring plan or which were
transferred to the Plan in a manner intended to satisfy the requirements of
subsection (b) of this Section 17.02 shall be fully vested and
nonforfeitable at all times. A Participant’s interest under the Plan in
transferred assets which were transferred to the Plan in a manner intended to
satisfy the requirements of subsection (a) of this Section 17.02
shall be determined in accordance with the terms of the Plan unless the
transferor plan’s vesting schedule is more favorable.  Such transferred assets shall be invested by
the Trustee in accordance with the provisions of Subsection 17.01(g) as if
such assets were transferred from a prior plan. Except as otherwise provided
below, no transfer of assets in accordance with this Section 17.02 may
cause a loss of an accrued or optional form of benefit protected by Code Section 411(d)(6).

 

Effective for transfers made on or after January 1,
2002, the terms of the Plan as in effect at the time of the transfer shall
apply to the amounts transferred regardless of whether such application would
have the effect of eliminating or reducing an optional form of benefit
protected by Code Section 411(d)(6) which was previously available
with respect to any amount transferred to the Plan pursuant to this Section 17.02,
provided that such transfer satisfies the requirements set forth in either (a) or
(b):

 

(a)(1) The
transfer is conditioned upon a voluntary, fully informed election by the
Participant to transfer his entire account balance to the Plan.  As an alternative to the transfer, the
Participant is offered the opportunity to retain the form of benefit previously
available to him (or, if the transferor plan is terminated, to receive any
optional form of benefit for which the participant is eligible under the
transferor plan as required by Code Section 411(d)(6));

 

(2)  If
the defined contribution plan from which the transfer is made is a money
purchase pension plan, the Plan is a money purchase plan or, if the defined
contribution plan from which the transfer is made includes a qualified cash or
deferred arrangement, the Plan includes a cash or deferred arrangement; and

 

(3) The
transfer is made either in connection with an asset or stock acquisition,
merger or other similar transaction involving a change in employer of the
employees of a trade or business (i.e., an acquisition or disposition within
the meaning of Section 1.410(b)-2(f)) or in connection with the
participant’s change in employment status such that the participant is not
entitled to additional allocations under the transferor plan.

 

(b)(1) The
transfer satisfies the requirements of subsection (a)(1) of this Section 17.02;

 

(2) The
transfer occurs at a time when the Participant is eligible, under the terms of
the transferor plan, to receive an immediate distribution of his account;

 

(3) If
the transfer occurs on or after January 1, 2002, the transfer occurs at a
time when the participant is not eligible to receive an immediate distribution
of his entire nonforfeitable account balance in a single sum distribution that
would consist entirely of an eligible rollover distribution within the meaning
of Code Section 401(a)(31)(C); and

 

65

 

(4) The
amount transferred, together with the amount of any contemporaneous Code Section 401(a)(31)
direct rollover to the Plan, equals the entire nonforfeitable account of the
participant whose account is being transferred.

 

It
is the Employer’s obligation to ensure that all assets of the Plan, other than
those maintained in a separate trust or fund pursuant to the provisions of Section 20.10,
are transferred to the Trustee. The Trustee shall have no liability for and no
duty to inquire into the administration of such transferred assets for periods
prior to the transfer.

 

17.03. Acceptance of Assets by Trustee.  The Trustee shall not accept assets which are
not either in a medium proper for investment under the Plan, as set forth in
the Plan and the Service Agreement, or in cash. Such assets shall be
accompanied by instructions in writing (or such other medium as may be
acceptable to the Trustee) showing separately the respective contributions by
the prior employer and by the Participant, and identifying the assets
attributable to such contributions. The Trustee shall establish such accounts
as may be necessary or appropriate to reflect such contributions under the
Plan. The Trustee shall hold such assets for investment in accordance with the
provisions of Article 8, and shall in accordance with the written
instructions of the Employer make appropriate credits to the Accounts of the
Participants for whose benefit assets have been transferred.

 

17.04. Transfer of Assets from Trust.  Effective on or after January 1, 2002,
the Employer may direct the Trustee to transfer all or a specified portion of
the Trust assets to any other plan or plans maintained by the Employer or the
employer or employers of an Inactive Participant or Participants, provided that
the Trustee has received evidence satisfactory to it that such other plan meets
all applicable requirements of the Code, subject to the following:

 

(a) The assets so transferred shall be
accompanied by instructions in writing (or such other medium as may be
acceptable to the Trustee) from the Employer naming the persons for whose
benefit such assets have been transferred, showing separately the respective
contributions by the Employer and by each Inactive Participant, if any, and
identifying the assets attributable to the various contributions. The Trustee
shall not transfer assets hereunder until all applicable filing requirements
are met. The Trustee shall have no further liabilities with respect to assets
so transferred.

 

(b) A
transfer of assets made pursuant to this Section 17.04 may result in the
elimination or reduction of an optional form of benefit protected by Code Section 411(d)(6),
provided that the transfer satisfies the requirements set forth in either (1) or
(2):

 

(1)(i) The
transfer is conditioned upon a voluntary, fully informed election by the
Participant to transfer his entire Account to the other defined contribution
plan.  As an alternative to the transfer,
the Participant is offered the opportunity to retain the form of benefit previously
available to him (or, if the Plan is terminated, to receive any optional form
of benefit for which the Participant is eligible under the Plan as required by
Code Section 411(d)(6));

 

(ii)     If
the Plan is a money purchase pension plan, the defined contribution plan to
which the transfer is made must be a money purchase pension plan and if the
Plan includes a qualified cash or deferred arrangement under Code Section 401(k),
the defined contribution plan to which the transfer is made must include a
qualified cash or deferred arrangement; and

 

66

 

(iii)     The
transfer is made either in connection with an asset or stock acquisition,
merger or other similar transaction involving a change in employer of the
employees of a trade or business (i.e., an acquisition or disposition within
the meaning of Section 1.410(b)-2(f)) or in connection with the
Participant’s change in employment status such that the Participant becomes an
Inactive Participant.

 

(2)(i) The
transfer satisfies the requirements of subsection (1)(i) of this Section 17.04;

 

(ii) The
transfer occurs at a time when the Participant is eligible, under the terms of
the Plan, to receive an immediate distribution of his benefit;

 

(iii) If
the transfer occurs on or after January 1, 2002, the transfer occurs at a
time when the Participant is not eligible to receive an immediate distribution
of his entire nonforfeitable Account in a single sum distribution that would
consist entirely of an eligible rollover distribution within the meaning of
Code Section 401(a)(31)(C);

 

(iv) The
Participant is fully vested in the transferred amount in the transferee plan;
and

 

(v) The
amount transferred, together with the amount of any contemporaneous Code Section 401(a)(31)
direct rollover to the transferee plan, equals the entire nonforfeitable
Account of the Participant whose Account is being transferred.

 

Article 18. Miscellaneous.

 

18.01. Communication to Participants.  The Plan shall be communicated to all
Eligible Employees by the Employer promptly after the Plan is adopted.

 

18.02. Limitation of Rights.  Neither the establishment of the Plan and the
Trust, nor any amendment thereof, nor the creation of any fund or account, nor
the payment of any benefits, shall be construed as giving to any Participant or
other person any legal or equitable right against the Employer, Administrator
or Trustee, except as provided herein; and in no event shall the terms of
employment or service of any Participant be modified or in any way affected
hereby. It is a condition of the Plan, and each Participant expressly agrees by
his participation herein, that each Participant shall look solely to the assets
held in the Trust for the payment of any benefit to which he is entitled under
the Plan.

 

18.03. Nonalienability of Benefits. Except as
provided in Code Sections 401(a)(13)(C) and (D) (relating to offsets
ordered or required under a criminal conviction involving the Plan, a civil
judgment in connection with a violation or alleged violation of fiduciary
responsibilities under ERISA, or a settlement agreement between the Participant
and the Department of Labor in connection with a violation or alleged violation
of fiduciary responsibilities under ERISA), Section 1.401(a)-13(b)(2) of
the Treasury Regulations (relating to Federal tax levies), or as otherwise
required by law, the benefits provided hereunder shall not be subject to
alienation, assignment, garnishment, attachment, execution or levy of any kind,
either voluntarily or involuntarily, and any attempt to cause such benefits to
be so subjected shall not be recognized. The preceding sentence shall also
apply to the creation, assignment, or recognition of a right to any benefit
payable with respect to a Participant pursuant to a domestic relations order,
unless such order is determined 

 

67

 

by
the Administrator to be a qualified domestic relations order, as defined in
Code Section 414(p), or any domestic relations order entered before January 1,
1985.

 

18.04. Qualified Domestic Relations Orders Procedures. The
Administrator must establish reasonable procedures to determine the qualified
status of a domestic relations order. Upon receiving a domestic relations
order, the Administrator shall promptly notify the Participant and any
alternate payee named in the order, in writing, of the receipt of the order and
the Plan’s procedures for determining the qualified status of the order. Within
a reasonable period of time after receiving the domestic relations order, the
Administrator must determine the qualified status of the order and must notify
the Participant and each alternate payee, in writing, of its determination. The
Administrator shall provide such notice by mailing to the individual’s address
specified in the domestic relations order, or in a manner consistent with the
Department of Labor regulations.

 

If
any portion of the Participant’s Account is payable during the period the
Administrator is making its determination of the qualified status of the
domestic relations order, the Administrator must make a separate accounting of
the amounts payable. If the Administrator determines the order is a qualified
domestic relations order within 18 months of the date amounts first are payable
following receipt of the order, the Administrator shall direct the Trustee to
distribute the payable amounts in accordance with the order. If the
Administrator does not make his determination of the qualified status of the
order within the 18-month determination period, the Administrator shall direct
the Trustee to distribute the payable amounts in the manner the Plan would
distribute if the order did not exist and shall apply the order prospectively
if the Administrator later determines the order is a qualified domestic
relations order.

 

The
Trustee shall set up segregated accounts for each alternate payee when properly
notified by the Administrator.

 

A
domestic relations order shall not fail to be deemed a qualified domestic
relations order merely because it requires the distribution or segregation of
all or part of a Participant’s Account with respect to an alternate payee prior
to the Participant’s earliest retirement age (as defined in Code Section 414(p))
under the Plan. A distribution to an alternate payee prior to the Participant’s
attainment of the earliest retirement age is available only if (a) the
order specifies distribution at that time and (b) if the present value of
the alternate payee’s benefits under the Plan exceeds $5,000 as determined
under Section 13.02 (or such larger amount as may be specified in Code Section 417(e)(1)),
and the order requires, and the alternate payee consents to, a distribution
occurring prior to the Participant’s attainment of earliest retirement age.

 

18.05. Additional Rules for Paired Plans.  If the Employer has adopted both a money
purchase pension plan and a profit sharing plan under this Basic Plan Document
which are to be considered paired plans, the elections in Section 1.04 of
the Adoption Agreement must be identical with respect to both plans. When the
paired plans are “top-heavy plans”, as defined in Subsection 15.01(f), or are
deemed to be “top-heavy plans”, the money purchase pension plan shall provide
the minimum contribution required under Section 15.03, unless contributions
under the money purchase pension plan are frozen.

 

18.06. Application of Plan Provisions in Multiple Employer
Plans. 
Notwithstanding any other provision of the Plan to the contrary, if one
of the Employers designated in Subsection 1.02(b) of the Adoption
Agreement is not a Related Employer, the Prototype Sponsor reserves the right
to take any or all of the following actions:

 

(a) 
treat the Plan as a multiple employer plan;

 

68

 

(b) 
permit the Employer to amend the Plan to exclude the un-Related Employer from
participation in the Plan; or

 

(c) 
treat the Employer as having amended the Plan in the manner described in Section 16.02
such that the Employer may no longer participate in this prototype plan arrangement.

 

For
the period, if any, that the Prototype Sponsor elects to treat the Plan as a
multiple employer plan, each un-Related Employer shall be treated as a separate
Employer for purposes of contributions, application of the “ADP” and “ACP”
tests described in Sections 6.03 and 6.06, application of the Code Section 415
limitations described in Section 6.12, top-heavy determinations and
application of the top-heavy requirements under Article 15, and
application of such other Plan provisions as the Employers determine to be
appropriate. For any such period, the Prototype Sponsor shall continue to treat
the Employer as participating in this prototype plan arrangement for purposes
of Plan administration, notices or other communications in connection with the
Plan, and other Plan-related services; provided, however, that if the Employer
applies to the Internal Revenue Service for a determination letter, the
multiple employer plan shall be filed on the form appropriate for multiple
employer plans. The Administrator shall be responsible for administering the
Plan as a multiple employer plan.

 

18.07. Veterans Reemployment Rights.  Notwithstanding any other provision of the
Plan to the contrary, contributions, benefits, and service credit with respect
to qualified military service shall be provided in accordance with Code Section 414(u).
The Administrator shall notify the Trustee of any Participant with respect to
whom additional contributions are made because of qualified military service.

 

18.08. Facility of Payment.  In the event the Administrator determines, on
the basis of medical reports or other evidence satisfactory to the
Administrator, that the recipient of any benefit payments under the Plan is
incapable of handling his affairs by reason of minority, illness, infirmity or
other incapacity, the Administrator may direct the Trustee to disburse such
payments to a person or institution designated by a court which has
jurisdiction over such recipient or a person or institution otherwise having
the legal authority under state law for the care and control of such recipient.
The receipt by such person or institution of any such payments shall be
complete acquittance therefore, and any such payment to the extent thereof,
shall discharge the liability of the Trust for the payment of benefits
hereunder to such recipient.

 

18.09. Information between Employer and Trustee.  The Employer agrees to furnish the Trustee,
and the Trustee agrees to furnish the Employer, with such information relating
to the Plan and Trust as may be required by the other in order to carry out
their respective duties hereunder, including without limitation information
required under the Code and any regulations issued or forms adopted by the
Treasury Department thereunder or under the provisions of ERISA and any
regulations issued or forms adopted by the Department of Labor thereunder.

 

18.10. Effect of Failure to Qualify Under Code.  Notwithstanding any other provision contained
herein, if the Employer fails to obtain or retain approval of the Plan by the
Internal Revenue Service as a qualified Plan under the Code, the Employer may
no longer participate in this prototype Plan arrangement and shall be deemed to
have an individually designed plan.

 

18.11. Directions, Notices and Disclosure.  Any notice or other communication in
connection with this Plan shall be deemed delivered in writing if addressed as
provided below and if either actually delivered at said 

 

69

 

address
or, in the case of a letter, three business days shall have elapsed after the
same shall have been deposited in the United States mails, first-class postage
prepaid and registered or certified:

 

(a) 
If to the Employer or Administrator, to it at the address set forth in the
Adoption Agreement, and, if to the Employer, to the attention of the contact
specified in Subsection 1.02(a) of the Adoption Agreement;

 

(b) 
If to the Trustee, to it at the address set forth in Subsection 1.03(a) the
Adoption Agreement;

 

or,
in each case at such other address as the addressee shall have specified by
written notice delivered in accordance with the foregoing to the addressor’s
then effective notice address.

 

Any
direction, notice or other communication provided to the Employer, the
Administrator or the Trustee by another party which is stipulated to be in
written form under the provisions of this Plan may also be provided in any
medium which is permitted under applicable law or regulation. Any written
communication or disclosure to Participants required under the provisions of
this Plan may be provided in any other medium (electronic, telephone or
otherwise) that is permitted under applicable law or regulation.

 

18.12. Governing Law.  The Plan and the accompanying Adoption
Agreement shall be construed, administered and enforced according to ERISA, and
to the extent not preempted thereby, the laws of the Commonwealth of
Massachusetts.

 

Nothing
contained in Sections 8.02, 19.01 or 19.05 or this Section 18.13 shall be
construed in a manner which subjects a governmental plan (as defined in Code Section 414(d))
or a non-electing church plan (as described in Code Section 410(d)) to the
fiduciary provisions of Title I of ERISA.

 

Article 19. Plan Administration.

 

19.01. Powers and Responsibilities of the Administrator.  The Administrator has the full power and the
full responsibility to administer the Plan in all of its details, subject,
however, to the requirements of ERISA. In addition to the powers and
authorities expressly conferred upon it in the Plan, the Administrator shall
have all such powers and authorities as may be necessary to carry out the
provisions of the Plan, including the discretionary power and authority to
interpret and construe the provisions of the Plan, such interpretation to be
final and conclusive on all persons claiming benefits under the Plan; to make
benefit determinations; to utilize the correction programs or systems
established by the Internal Revenue Service (such as the Employee Plans
Compliance and Resolution System) or the Department of Labor; and to resolve
any disputes arising under the Plan. The Administrator may, by written
instrument, allocate and delegate its fiduciary responsibilities in accordance
with ERISA Section 405, including allocation of such responsibilities to
an administrative committee formed to administer the Plan.

 

19.02. Nondiscriminatory Exercise of Authority.  Whenever, in the administration of the Plan,
any discretionary action by the Administrator is required, the Administrator
shall exercise its authority in a nondiscriminatory manner so that all persons
similarly situated shall receive substantially the same treatment.

 

19.03. Claims and Review Procedures.  Except to the extent that the provisions of
any collective-bargaining agreement provide another method of resolving claims
for benefits under the Plan, the provisions of this Section 19.03 shall
control with respect to the resolution of such claims; provided, however, that
the 

 

70

 

Employer
may institute alternative claims procedures that are more restrictive on the
Employer and more generous with respect to persons claiming a benefit under the
Plan.

 

(a) 
Claims Procedure. Whenever a request for benefits under the Plan is
wholly or partially denied, the Administrator shall notify the person claiming
such benefits of its decision in writing. Such notification shall contain (1) specific
reasons for the denial of the claim, (2) specific reference to pertinent
Plan provisions, (3) a description of any additional material or
information necessary for such person to perfect such claim and an explanation
of why such material or information is necessary, and (4) information as
to the steps to be taken if the person wishes to submit a request for review.
Such notification shall be given within 90 days after the claim is received by
the Administrator (or within 180 days, if special circumstances require an
extension of time for processing the claim, and if written notice of such
extension and circumstances is given to such person within the initial 90-day
period). If such notification is not given within such period, the claim shall
be considered denied as of the last day of such period and such person may
request a review of his claim.

 

(b) 
Review Procedure. Within 60 days after the date on which a person
receives a written notice of a denied claim (or, if applicable, within 60 days
after the date on which such denial is considered to have occurred), such
person (or his duly authorized representative) may (1) file a written
request with the Administrator for a review of his denied claim and of
pertinent documents and (2) submit written issues and comments to the
Administrator. The Administrator shall notify such person of its decision in
writing. Such notification shall be written in a manner calculated to be
understood by such person and shall contain specific reasons for the decision
as well as specific references to pertinent Plan provisions. The decision on
review shall be made within 60 days after the request for review is received by
the Administrator (or within 120 days, if special circumstances require an
extension of time for processing the request, such as an election by the
Administrator to hold a hearing, and if written notice of such extension and
circumstances is given to such person within the initial 60-day period). If the
decision on review is not made within such period, the claim shall be
considered denied.

 

19.04. Named Fiduciary.  The Administrator is a “named fiduciary” for
purposes of ERISA Section 402(a)(1) and has the powers and
responsibilities with respect to the management and operation of the Plan
described herein.

 

19.05. Costs of Administration.  Unless some or all are paid by the Employer,
all reasonable costs and expenses (including legal, accounting, and employee
communication fees) incurred by the Administrator and the Trustee in
administering the Plan and Trust may be paid from the forfeitures (if any)
resulting under Section 11.08, or from the remaining Trust Fund. All such
costs and expenses paid from the Trust Fund shall, unless allocable to the
Accounts of particular Participants, be charged against the Accounts of all
Participants on a pro rata basis or in such other reasonable manner as may be
directed by the Employer and accepted by the Trustee.

 

Article 20. Trust Agreement.

 

20.01. Acceptance of Trust Responsibilities.  By executing the Adoption Agreement, the
Employer establishes a trust to hold the assets of the Plan that are invested
in Permissible Investments. By executing the Adoption Agreement, the Trustee
agrees to accept the rights, duties and responsibilities set forth in this
Article. If the Plan is an amendment and restatement of a prior plan, the
Trustee shall have no liability for and 

 

71

 

no
duty to inquire into the administration of the assets of the Plan for periods
prior to the date such assets are transferred to the Trust.

 

20.02. Establishment of Trust Fund.  A trust is hereby established under the Plan.
The Trustee shall open and maintain a trust account for the Plan and, as part
thereof, Accounts for such individuals as the Employer shall from time to time
notify the Trustee are Participants in the Plan. The Trustee shall accept and
hold in the Trust Fund such contributions on behalf of Participants as it may
receive from time to time from the Employer. The Trust Fund shall be fully
invested and reinvested in accordance with the applicable provisions of the
Plan in Fund Shares or as otherwise provided in Section 20.10.

 

The
Trust is intended to qualify as a domestic trust in accordance with Code Section 7701(a)(30)(E) and
any regulations issued thereunder. Accordingly, only United States persons (as
defined in Code Section 7701(a)(30) may have the authority to control all
substantial decisions regarding the Trust (including decisions to appoint,
retain or replace the Trustee), unless the Plan filed a domestic trust election
pursuant to Treasury Regulation Section 301.7701-7(f) or any
subsequent guidance issued by the Internal Revenue Service, or except as
otherwise provided in applicable regulation or legislation.

 

20.03. Exclusive Benefit.  The Trustee shall hold the assets of the
Trust Fund for the exclusive purpose of providing benefits to Participants and
Beneficiaries and defraying the reasonable expenses of administering the Plan.
No assets of the Plan shall revert to the Employer except as specifically
permitted by the terms of the Plan.

 

20.04. Powers of Trustee.  The Trustee shall have no discretion or
authority with respect to the investment of the Trust Fund but shall act solely
as a directed trustee of the funds contributed to it. In addition to and not in
limitation of such powers as the Trustee has by law or under any other
provisions of the Plan, the Trustee shall have the following powers, each of
which the Trustee exercises solely as directed Trustee in accordance with the
written direction of the Employer except to the extent a Plan asset is subject
to Participant direction of investment and provided that no such power shall be
exercised in any manner inconsistent with the provisions of ERISA:

 

(a) 
to deal with all or any part of the Trust Fund and to invest all or a part of
the Trust Fund in Permissible Investments, without regard to the law of any
state regarding proper investment;

 

(b) 
to transfer to and invest all or any part of the Trust in any collective
investment trust which is then maintained by a bank or trust company (or any
affiliate) and which is tax-exempt pursuant to Code Section 501(a) and
Rev. Rul. 81-100; provided that such collective investment trust is a
Permissible Investment; and provided, further, that the instrument establishing
such collective investment trust, as amended from time to time, shall govern
any investment therein, and is hereby made a part of the Plan and this Trust
Agreement to the extent of such investment therein;

 

(c) 
to retain uninvested such cash as it may deem necessary or advisable, without
liability for interest thereon, for the administration of the Trust;

 

(d) 
to sell, lease, convert, redeem, exchange, or otherwise dispose of all or any
part of the assets constituting the Trust Fund;

 

72

 

(e)  to borrow funds from a bank or other financial institution
not affiliated with the Trustee in order to provide sufficient liquidity to
process Plan transactions in a timely fashion, provided that the cost of
borrowing shall be allocated in a reasonable fashion to the Permissible
Investment(s) in need of liquidity;

 

(f) 
to enforce by suit or otherwise, or to waive, its rights on behalf of the
Trust, and to defend claims asserted against it or the Trust, provided that the
Trustee is indemnified to its satisfaction against liability and expenses;

 

(g) 
to employ such agents and counsel as may be reasonably necessary in collecting,
managing, administering, investing, distributing and protecting the Trust Fund
or the assets thereof and to pay them reasonable compensation;

 

(h) 
to compromise, adjust and settle any and all claims against or in favor of it
or the Trust;

 

(i) 
to oppose, or participate in and consent to the reorganization, merger,
consolidation, or readjustment of the finances of any enterprise, to pay
assessments and expenses in connection therewith, and to deposit securities
under deposit agreements;

 

(j) 
to apply for or purchase annuity contracts in accordance with Article 14;

 

(k) 
to hold securities unregistered, or to register them in its own name or in the
name of nominees;

 

(l) 
to appoint custodians to hold investments within the jurisdiction of the
district courts of the United States and to deposit securities with stock
clearing corporations or depositories or similar organizations;

 

(m) 
to make, execute, acknowledge and deliver any and all instruments that it deems
necessary or appropriate to carry out the powers herein granted;

 

(n) 
generally to exercise any of the powers of an owner with respect to all or any
part of the Trust Fund; and

 

(o) 
to take all such actions as may be necessary under the Trust Agreement, to the
extent consistent with applicable law.

 

The
Employer specifically acknowledges and authorizes that affiliates of the
Trustee may act as its agent in the performance of ministerial, nonfiduciary
duties under the Trust. The expenses and compensation of such agent shall be
paid by the Trustee.

 

The
Trustee shall provide the Employer with reasonable notice of any claim filed
against the Plan or Trust or with regard to any related matter, or of any claim
filed by the Trustee on behalf of the Plan or Trust or with regard to any
related matter.

 

20.05. Accounts.  The Trustee shall keep full accounts of all
receipts and disbursements and other transactions hereunder. Within 120 days
after the close of each Plan Year, within 90 days after termination of the
Trust, and at such other times as may be appropriate, the Trustee shall
determine the then net fair market value of the Trust Fund as of the close of
the Plan Year, as of the termination of the Trust, or as of such other time,
whichever is applicable, and shall render to the Employer and Administrator an
account of its 

 

73

 

administration
of the Trust during the period since the last such accounting, including all
allocations made by it during such period.

 

20.06. Approval of Accounts.  To the extent permitted by law, the written
approval of any account by the Employer or Administrator shall be final and
binding, as to all matters and transactions stated or shown therein, upon the
Employer, Administrator, Participants and all persons who then are or
thereafter become interested in the Trust. The failure of the Employer or
Administrator to notify the Trustee within six months after the receipt of any
account of its objection to the account shall, to the extent permitted by law,
be the equivalent of written approval. If the Employer or Administrator files
any objections within such six month period with respect to any matters or
transactions stated or shown in the account, and the Employer or Administrator
and the Trustee cannot amicably settle the question raised by such objections,
the Trustee shall have the right to have such questions settled by judicial
proceedings. Nothing herein contained shall be construed so as to deprive the
Trustee of the right to have judicial settlement of its accounts. In any
proceeding for a judicial settlement of any account or for instructions, the
only necessary parties shall be the Trustee, the Employer and the
Administrator.

 

20.07. Distribution from Trust Fund.  The Trustee shall make such distributions
from the Trust Fund as the Employer or Administrator may direct (in writing or
such other medium as may be acceptable to the Trustee), consistent with the
terms of the Plan and either for the exclusive benefit of Participants or their
Beneficiaries, or for the payment of expenses of administering the Plan.

 

20.08. Transfer of Amounts from Qualified Plan.  If amounts are to be transferred to the Plan
from another qualified plan or trust under Code Section 401(a), such transfer
shall be made in accordance with the provisions of the Plan and with such rules as
may be established by the Trustee. The Trustee shall only accept assets which
are in a medium proper for investment under this Trust Agreement or in cash,
and that are accompanied in a timely manner, as agreed to by the Administrator
and the Trustee, by instructions in writing (or such other medium as may be
acceptable to the Trustee) showing separately the respective contributions by
the prior employer and the transferring Employee, the records relating to such
contributions, and identifying the assets attributable to such contributions.
The Trustee shall hold such assets for investment in accordance with the
provisions of this Trust Agreement.

 

20.09. Transfer of Assets from Trust.  Subject to the provisions of the Plan, the
Employer may direct the Trustee to transfer all or a specified portion of the
Trust assets to any other plan or plans maintained by the Employer or the
employer or employers of an Inactive Participant or Participants, provided that
the Trustee has received evidence satisfactory to it that such other plan meets
all applicable requirements of the Code. The assets so transferred shall be
accompanied by written instructions from the Employer naming the persons for
whose benefit such assets have been transferred, showing separately the
respective contributions by the Employer and by each Participant, if any, and
identifying the assets attributable to the various contributions. The Trustee
shall have no further liabilities with respect to assets so transferred.

 

20.10. Separate Trust or Fund for Existing Plan Assets.  With the consent of the
Trustee, the Employer may maintain a trust or fund (including a group annuity
contract) under this prototype plan document separate from the Trust Fund for
Plan assets purchased prior to the adoption of this prototype plan document
which are not Permissible Investments listed in the Service Agreement. The
Trustee shall have no authority and no responsibility for the Plan assets held
in such separate trust or fund. The Employer shall be responsible for assuring
that such separate trust or fund is maintained pursuant to a separate trust
agreement signed by the 

 

74

 

Employer
and the trustee. The duties and responsibilities of the trustee of a separate
trust shall be provided by the separate trust agreement, between the Employer
and the trustee.

 

Notwithstanding
the preceding paragraph, the Trustee or an affiliate of the Trustee may agree
in writing to provide ministerial recordkeeping services for guaranteed
investment contracts held in the separate trust or fund. The guaranteed
investment contract(s) shall be valued as directed by the Employer or the
trustee of the separate trust.

 

The
trustee of the separate trust (hereafter referred to as “trustee”) shall be the
owner of any insurance contract purchased prior to the adoption of this
prototype plan document. The insurance contract(s) must provide that
proceeds shall be payable to the trustee; provided, however, that the trustee
shall be required to pay over all proceeds of the contract(s) to the
Participant’s designated Beneficiary in accordance with the distribution
provisions of this Plan. A Participant’s spouse shall be the designated
Beneficiary of the proceeds in all circumstances unless a qualified election
has been made in accordance with Article 14. Under no circumstances shall
the trust retain any part of the proceeds. In the event of any conflict between
the terms of the Plan and the terms of any insurance contract purchased
hereunder, the Plan provisions shall control.

 

Any
life insurance contracts held in the Trust Fund or in the separate trust are
subject to the following limits:

 

(a) 
Ordinary life - For purposes of these incidental insurance provisions, ordinary
life insurance contracts are contracts with both nondecreasing death benefits
and nonincreasing premiums. If such contracts are held, less than 1/2 of the
aggregate employer contributions allocated to any Participant shall be used to
pay the premiums attributable to them.

 

(b) 
Term and universal life - No more than 1/4 of the aggregate employer
contributions allocated to any participant shall be used to pay the premiums on
term life insurance contracts, universal life insurance contracts, and all
other life insurance contracts which are not ordinary life.

 

(c) 
Combination - The sum of 1/2 of the ordinary life insurance premiums and all
other life insurance premiums shall not exceed 1/4 of the aggregate employer
contributions allocated to any Participant.

 

20.11. Self-Directed Brokerage Option.  If one of the Permissible Investments under
the Plan is the self-directed brokerage option, the Employer hereby directs the
Trustee to use Fidelity Brokerage Services LLC, Member NYSE, SIPC or any of the
Trustee’s affiliates or subsidiaries (collectively, “FBS”), an affiliate of the
Trustee, to purchase or sell individual securities for Participant Accounts in
accordance with investment directions provided by such Participants. The
provision of brokerage services by FBS shall be subject to the following:

 

(a) 
The Trustee shall provide the Employer with an annual report which summarizes
brokerage transactions and transaction-related charges incurred by the Plan.

 

(b) Any
successor organization of FBS, through reorganization, consolidation, merger,
or otherwise, shall, upon consummation of such transaction, become the
successor broker in accordance with the terms of this direction provision.

 

75

 

(c) 
The Trustee and FBS shall continue to rely on this direction provision until
notified to the contrary. The Employer reserves the right to terminate this
direction upon sixty (60) days written notice to FBS (or its successor) and the
Trustee, and such termination shall also have the effect of terminating the
self-directed brokerage option for the Plan.

 

(d) 
The Trustee shall provide the Employer with a list of the types of securities
that may not be purchased or held under this self-directed brokerage option.
The Trustee shall provide the Employer with administrative procedures and fees
governing investment in and withdrawals or exchanges from the self-directed
brokerage option. The Trustee shall have no liability in the event a
Participant purchases a restricted security.

 

(e) 
Participants may authorize the use of an agent to have limited trading
authority over assets in their Accounts invested under the self-directed
brokerage option provided that the Participant completes and files with FBS a
limited trading authorization and indemnification form in the form prescribed
by FBS.

 

(f) FBS
shall provide all proxies and other shareholder materials to each Participant
with such securities allocated to his or her Account under the self-directed
brokerage option. The Participant shall have the authority to direct the
exercise of all shareholder rights attributable to the securities allocated to
his or her Account and it is intended that all such Participant directions
shall be subject to ERISA Section 404(c). The Trustee shall not exercise
any such shareholder rights in the absence of a direction from the Participant.

 

(g) 
Self-directed brokerage accounts held under the Plan are subject to fees as
more fully described in the related self-directed brokerage documents provided
to the Employer. If there are insufficient funds to cover the self-directed
brokerage account trades and expenses, a liquidation may be made to cover the
debit balance and, in doing so, the Trustee shall not be deemed to have
exercised any discretion.

 

20.12. Employer Stock Investment Option.  If one of the Permissible Investments is
equity securities issued by the Employer or a Related Employer (“Employer
Stock”), such Employer Stock must be publicly traded and “qualifying employer
securities” within the meaning of Section 407(d)(5) of ERISA. Plan
investments in Employer Stock shall be made via the Employer Stock Investment
Fund (the “Stock Fund”) which shall consist of either (i) the shares of
Employer Stock held for each Participant who participates in the Stock Fund (a
“Share Accounting Stock Fund”), or (ii) a combination of shares of
Employer Stock and short-term liquid investments, consisting of mutual fund
shares or commingled money market pool units as agreed to by the Employer and
the Trustee, which are necessary to satisfy the Stock Fund’s cash needs for
transfers and payments (a “Unitized Stock Fund”). Dividends received by the
Stock Fund are reinvested in additional shares of Employer Stock or, in the
case of a Unitized Stock Fund, in short-term liquid investments. The
determination of whether each Participant’s interest in the Stock Fund is
administered on a share-accounting or a unitized basis shall be determined by
the Employer’s election in the Service Agreement.

 

In the case of a Unitized Stock Fund, such units shall represent a
proportionate interest in all assets of the Unitized Stock Fund, which includes
shares of Employer Stock, short-term investments, and at times, receivables for
dividends and/or Employer Stock sold and payables for Employer Stock purchased.
A net asset value per unit shall be determined daily for each cash unit
outstanding of the Unitized Stock Fund. The return earned by the Unitized Stock
Fund shall represent a combination of the dividends paid on the shares of
Employer Stock held by the Unitized Stock Fund, gains or losses realized on
sales of Employer Stock, appreciation or depreciation in the market price of
those shares owned, and interest on the short-term 

 

76

 

investments held by the Unitized Stock Fund. A target range for the
short-term liquid investments shall be maintained for the Unitized Stock Fund.
The Named Fiduciary shall, after consultation with the Trustee, establish and
communicate to the Trustee in writing such target range and a drift allowance
for such short-term liquid investments. 
Such target range and drift allowance may be changed by the Named
Fiduciary, after consultation with the Trustee, provided any such change is
communicated to the Trustee in writing. 
The Trustee is responsible for ensuring that the actual short-term
liquid investments held in the Unitized Stock Fund fall within the agreed upon
target range over time, subject to the Trustee’s ability to execute open-market
trades in Employer Stock or to otherwise trade with the Employer.

 

Investments
in Employer Stock shall be subject to the following limitations:

 

(a) 
Acquisition Limit. Pursuant to the Plan, the Trust may be invested in
Employer Stock to the extent necessary to comply with investment directions
under Section 8.02 of the Plan. Notwithstanding the foregoing, effective
for Deferral Contributions made for Plan Years beginning on or after January 1,
1999, the portion of a Participant’s Deferral Contributions that the Employer
may require to be invested in Employer Stock for a Plan Year cannot exceed one
percent of such Participant’s Compensation for the Plan Year.

 

(b) 
Fiduciary Duty of Named Fiduciary. The Administrator or any person
designated by the Administrator as a named fiduciary under Section 19.01
(the “named fiduciary”) shall continuously monitor the suitability under the
fiduciary duty rules of ERISA Section 404(a)(1) (as modified by
ERISA Section 404(a)(2)) of acquiring and holding Employer Stock. The Trustee
shall not be liable for any loss, or by reason of any breach, which arises from
the directions of the named fiduciary with respect to the acquisition and
holding of Employer Stock, unless it is clear on their face that the actions to
be taken under those directions would be prohibited by the foregoing fiduciary
duty rules or would be contrary to the terms of the Plan or this Trust
Agreement.

 

(c) 
Execution of Purchases and Sales. Purchases and sales of Employer Stock
shall be made on the open market on the date on which the Trustee receives in
good order all information and documentation necessary to accurately effect
such purchases and sales or (i) if later, in the case of purchases, the
date on which the Trustee has received a transfer of the funds necessary to
make such purchases, (ii) as otherwise provided in the Service Agreement,
or (iii) as provided in Subsection (d) below. Such general rules shall
not apply in the following circumstances:

 

(1) 
If the Trustee is unable to determine the number of shares required to be
purchased or sold on such day;

 

(2) 
If the Trustee is unable to purchase or sell the total number of shares
required to be purchased or sold on such day as a result of market conditions;
or

 

(3) 
If the Trustee is prohibited by the Securities and Exchange Commission, the New
York Stock Exchange, or any other regulatory body from purchasing or selling
any or all of the shares required to be purchased or sold on such day.

 

In the event of the occurrence of the circumstances
described in (1), (2), or (3) above, the Trustee shall purchase or sell
such shares as soon as possible thereafter and, in the case of a Share
Accounting 

 

77

 

Stock
Fund, shall determine the price of such purchases or sales to be the average
purchase or sales price of all such shares purchased or sold, respectively.

 

(d) 
Purchases and Sales from or to Employer. If directed by the Employer in
writing prior to the trading date, the Trustee may purchase or sell Employer
Stock from or to the Employer if the purchase or sale is for adequate
consideration (within the meaning of ERISA Section 3(18)) and no
commission is charged. If Employer contributions or contributions made by the
Employer on behalf of the Participants under the Plan are to be invested in
Employer Stock, the Employer may transfer Employer Stock in lieu of cash to the
Trust. In such case, the shares of Employer Stock to be transferred to the
Trust will be valued at a price that constitutes adequate consideration (within
the meaning of ERISA Section 3(18)).

 

(e) 
Use of Broker to Purchase Employer Stock. The Employer hereby directs
the Trustee to use Fidelity Capital Markets, Inc., an affiliate of the
Trustee, or any other affiliate or subsidiary of the Trustee (collectively,
“Capital Markets”), to provide brokerage services in connection with all market
purchases and sales of Employer Stock for the Stock Fund, except in
circumstances where the Trustee has determined, in accordance with its standard
trading guidelines or pursuant to Employer direction, to seek expedited
settlement of trades.  The Trustee shall
provide the Employer with the commission schedule for such transactions, a copy
of Capital Markets’ brokerage placement practices, and an annual report which
summarizes all securities transaction-related charges incurred by the Plan. The
following shall apply as well:

 

(1) Any
successor organization of Capital Markets through reorganization,
consolidation, merger, or similar transactions, shall, upon consummation of
such transaction, become the successor broker in accordance with the terms of
this provision.

 

(2) The
Trustee shall continue to rely on this Employer direction until notified to the
contrary. The Employer reserves the right to terminate this authorization upon
sixty (60) days written notice to Capital Markets (or its successor) and the
Trustee and the Employer and the Trustee shall decide on a mutually-agreeable
alternative procedure for handling brokerage transactions on behalf of the
Stock Fund.

 

(f) 
Securities Law Reports. The named fiduciary shall be responsible for
filing all reports required under Federal or state securities laws with respect
to the Trust’s ownership of Employer Stock; including, without limitation, any
reports required under Section 13 or 16 of the Securities Exchange Act of
1934 and shall immediately notify the Trustee in writing of any requirement to
stop purchases or sales of Employer Stock pending the filing of any report. The
Trustee shall provide to the named fiduciary such information on the Trust’s
ownership of Employer Stock as the named fiduciary may reasonably request in
order to comply with Federal or state securities laws.

 

(g) 
Voting and Tender Offers. Notwithstanding any other provision of the
Trust Agreement the provisions of this Subsection shall govern the voting and
tendering of Employer Stock. For purposes of this Subsection, each Participant
shall be designated as a named fiduciary under ERISA with respect to shares of
Employer Stock that reflect that portion, if any, of the Participant’s interest
in the Stock Fund not acquired at the direction of the Participant in
accordance with ERISA Section 404(c).

 

The Employer, after consultation with the Trustee, shall provide and
pay for all printing, mailing, tabulation and other costs associated with the
voting and tendering of Employer Stock, except as required 

 

78

 

by
law. The Trustee, after consultation with the Employer, shall prepare the
necessary documents associated with the voting and tendering of Employer Stock,
unless the Employer directs the Trustee not to do so.

 

(1) 
Voting.

 

(A) 
When the issuer of the Employer Stock prepares for any annual or special
meeting, the Employer shall notify the Trustee thirty (30) days in advance of
the intended record date and shall cause a copy of all proxy solicitation
materials to be sent to the Trustee. If requested by the Trustee, the Employer
shall certify to the Trustee that the aforementioned materials represent the
same information that is distributed to shareholders of Employer Stock.  Based on these materials the Trustee shall
prepare a voting instruction form. At the time of mailing of notice of each
annual or special stockholders’ meeting of the issuer of the Employer Stock,
the Employer shall cause a copy of the notice and all proxy solicitation
materials to be sent to each Participant with an interest in Employer Stock
held in the Trust, together with the foregoing voting instruction form to be
returned to the Trustee or its designee. The form shall show the proportional
interest in the number of full and fractional shares of Employer Stock credited
to the Participant’s Sub-Accounts held in the Stock Fund. The Employer shall
provide the Trustee with a copy of any materials provided to the Participants
and shall (if the mailing is not handled by the Trustee) notify the Trustee
that the materials have been mailed or otherwise sent to Participants.

 

(B) 
Each Participant with an interest in the Stock Fund shall have the right to
direct the Trustee as to the manner in which the Trustee is to vote (including
not to vote) that number of shares of Employer Stock that is credited to his
Account, if the Plan uses share accounting, or, if accounting is by units of
participation, that reflects such Participant’s proportional interest in the
Stock Fund (both vested and unvested). Directions from a Participant to the
Trustee concerning the voting of Employer Stock shall be communicated in
writing, or by such other means mutually acceptable to the Trustee and the
Employer. These directions shall be held in confidence by the Trustee and shall
not be divulged to the Employer, or any officer or employee thereof, or any
other person, except to the extent that the consequences of such directions are
reflected in reports regularly communicated to any such persons in the ordinary
course of the performance of the Trustee’s services hereunder. Upon its receipt
of the directions, the Trustee shall vote the shares of Employer Stock that reflect
the Participant’s interest in the Stock Fund as directed by the Participant.
The Trustee shall not vote shares of Employer Stock that reflect a
Participant’s interest in the Stock Fund for which the Trustee has received no
direction from the Participant, except as required by law.

 

(2)  Tender Offers.

 

(A) Upon
commencement of a tender offer for any securities held in the Trust that are
Employer Stock, the Employer shall timely notify the Trustee in advance of the
intended tender date and shall cause a copy of all materials to be sent to the
Trustee.  The Employer shall certify to
the Trustee that the aforementioned materials represent the same information
distributed to shareholders of Employer Stock. Based on these materials, and
after consultation with the Employer, the Trustee shall prepare a tender
instruction form and shall 

 

79

 

provide
a copy of all tender materials to be sent to each Participant with an interest
in the Stock Fund, together with the foregoing tender instruction form, to be
returned to the Trustee or its designee. The tender instruction form shall show
the number of full and fractional shares of Employer Stock credited to the
Participant’s Account, if the Plan uses share accounting, or, if accounting is
by units of participation, that reflect the Participant’s proportional interest
in the Stock Fund (both vested and unvested). The Employer shall notify each
Participant with an interest in such Employer Stock of the tender offer and utilize
its best efforts to timely distribute or cause to be distributed to the
Participant the tender materials and the tender instruction form described
herein. The Employer shall provide the Trustee with a copy of any materials
provided to the Participants and shall (if the mailing is not handled by the
Trustee) notify the Trustee that the materials have been mailed or otherwise
sent to Participants.

 

(B) Each
Participant with an interest in the Stock Fund shall have the right to direct
the Trustee to tender or not to tender some or all of the shares of Employer
Stock that are credited to his Account, if the Plan uses share accounting, or,
if accounting is by units of participation, that reflect such Participant’s
proportional interest in the Stock Fund (both vested and unvested).  Directions from a Participant to the Trustee
concerning the tender of Employer Stock shall be communicated in writing, or by
such other means as is agreed upon by the Trustee and the Employer under the
preceding paragraph.  These directions
shall be held in confidence by the Trustee and shall not be divulged to the
Employer, or any officer or employee thereof, or any other person, except to
the extent that the consequences of such directions are reflected in reports
regularly communicated to any such persons in the ordinary course of the
performance of the Trustee’s services hereunder.  The Trustee shall tender or not tender shares
of Employer Stock as directed by the Participant. Except as otherwise required
by law, the Trustee shall not tender shares of Employer Stock that are credited
to a Participant’s Account, if the Plan uses share accounting, or, if
accounting is by units of participation, that reflect a Participant’s
proportional interest in the Stock Fund for which the Trustee has received no
direction from the Participant.

 

(C) 
A Participant who has directed the Trustee to tender some or all of the shares
of Employer Stock that reflect the Participant’s proportional interest in the
Stock Fund may, at any time prior to the tender offer withdrawal date, direct
the Trustee to withdraw some or all of such tendered shares, and the Trustee
shall withdraw the directed number of shares from the tender offer prior to the
tender offer withdrawal deadline. A Participant shall not be limited as to the
number of directions to tender or withdraw that the Participant may give to the
Trustee.

 

(D) 
A direction by a Participant to the Trustee to tender shares of Employer Stock
that reflect the Participant’s proportional interest in the Stock Fund shall
not be considered a written election under the Plan by the Participant to
withdraw, or have distributed, any or all of his withdrawable shares. If the
Plan uses share accounting, the Trustee shall credit to the Participant’s
Account the proceeds received by the Trustee in exchange for the shares of
Employer Stock tendered from the Participant’s Account. If accounting is by
units of participation, the Trustee shall credit to each proportional interest
of the Participant from which the tendered shares were taken the proceeds
received by the Trustee in exchange for the shares of Employer Stock tendered
from that interest. Pending receipt of direction 

 

80

 

(through
the Administrator) from the Participant or the named fiduciary, as provided in
the Plan, as to which of the remaining Permissible Investments the proceeds
should be invested in, the Trustee shall invest the proceeds in the Permissible
Investment specified for such purposes in the Service Agreement or, if no such
Permissible Investment has been specified, the most conservative Permissible
Investment designated by the Employer in the Service Agreement.

 

(h) 
Shares Credited. If accounting with respect to the Stock Fund is by
units of participation, then for all purposes of this Section 20.12, the
number of shares of Employer Stock deemed “reflected” in a Participant’s
proportional interest shall be determined as of the last preceding valuation
date. The trade date is the date the transaction is valued.

 

(i) 
General. With respect to all rights other than the right to vote, the
right to tender, and the right to withdraw shares previously tendered, in the
case of Employer Stock credited to a Participant’s Account or proportional
interest in the Stock Fund, the Trustee shall follow the directions of the
Participant and if no such directions are received, the directions of the named
fiduciary. The Trustee shall have no duty to solicit directions from
Participants.

 

(j) 
Conversion. All provisions in this Section 20.12 shall also apply
to any securities received as a result of a conversion to Employer Stock.

 

20.13. Voting; Delivery of Information.  The Trustee shall deliver, or cause to be
executed and delivered, to the Employer or Administrator all notices,
prospectuses, financial statements, proxies and proxy soliciting materials
received by the Trustee relating to securities held by the Trust or, if
applicable, deliver these materials to the appropriate Participant or the
Beneficiary of a deceased Participant. The Trustee shall not vote any
securities held by the Trust except in accordance with the instructions of the
Employer, Participant, or the Beneficiary of the Participant if the Participant
is deceased; provided, however, that the Trustee may, in the absence of
instructions, vote “present” for the sole purpose of allowing such shares to be
counted for establishment of a quorum at a shareholders’ meeting. The Trustee
shall have no duty to solicit instructions from Participants, Beneficiaries, or
the Employer.

 

20.14. Compensation and Expenses of Trustee.  The Trustee’s fee for performing its duties
hereunder shall be such reasonable amounts as the Trustee may from time to time
specify in the Service Agreement or any other written agreement with the Employer.
Such fee, any taxes of any kind which may be levied or assessed upon or with
respect to the Trust Fund, and any and all expenses, including without
limitation legal fees and expenses of administrative and judicial proceedings,
reasonably incurred by the Trustee in connection with its duties and
responsibilities hereunder shall, unless some or all have been paid by said
Employer, be paid either from forfeitures resulting under Section 11.08,
or from the remaining Trust Fund and shall, unless allocable to the Accounts of
particular Participants, be charged against the respective Accounts of all
Participants, in such reasonable manner as the Trustee may determine.

 

20.15. Reliance by Trustee on Other Persons.  The Trustee may rely upon and act upon any writing
from any person authorized by the Employer or the Administrator pursuant to the
Service Agreement or any other written direction to give instructions
concerning the Plan and may conclusively rely upon and be protected in acting
upon any written order from the Employer or the Administrator or upon any other
notice, request, consent, certificate, or other instructions or paper
reasonably believed by it to have been executed by a duly authorized person, so
long as it acts in good faith in taking or omitting to take any such action.
The Trustee 

 

81

 

need
not inquire as to the basis in fact of any statement in writing received from
the Employer or the Administrator.

 

The
Trustee shall be entitled to rely on the latest certificate it has received
from the Employer or the Administrator as to any person or persons authorized
to act for the Employer or the Administrator hereunder and to sign on behalf of
the Employer or the Administrator any directions or instructions, until it
receives from the Employer or the Administrator written notice that such
authority has been revoked.

 

Notwithstanding
any provision contained herein, the Trustee shall be under no duty to take any
action with respect to any Participant’s Account (other than as specified
herein) unless and until the Employer or the Administrator furnishes the
Trustee with written instructions on a form acceptable to the Trustee, and the
Trustee agrees thereto in writing. The Trustee shall not be liable for any
action taken pursuant to the Employer’s or the Administrator’s written
instructions (nor for the collection of contributions under the Plan, nor the
purpose or propriety of any distribution made thereunder).

 

20.16. Indemnification by Employer.  The Employer shall indemnify and save
harmless the Trustee, and all affiliates, employees, agents and sub-contractors
of the Trustee, from and against any and all liability or expense (including
reasonable attorneys’ fees) to which the Trustee, or such other individuals or
entities, may be subjected by reason of any act or conduct being taken in the
performance of any Plan-related duties, including those described in this Trust
Agreement and the Service Agreement, unless such liability or expense results
from the Trustee’s, or such other individuals’ or entities’, negligence or
willful misconduct.

 

20.17. Consultation by Trustee with Counsel.  The Trustee may consult with legal counsel
(who may be but need not be counsel for the Employer or the Administrator)
concerning any question which may arise with respect to its rights and duties
under the Plan and Trust, and the opinion of such counsel shall, to the extent
permitted by law, be full and complete protection in respect of any action
taken or omitted by the Trustee hereunder in good faith and in accordance with
the opinion of such counsel.

 

20.18. Persons Dealing with the Trustee.  No person dealing with the Trustee shall be
bound to see to the application of any money or property paid or delivered to
the Trustee or to inquire into the validity or propriety of any transactions.

 

20.19. Resignation or Removal of Trustee.  The Trustee may resign at any time by written
notice to the Employer, which resignation shall be effective 60 days after
delivery to the Employer. The Trustee may be removed by the Employer by written
notice to the Trustee, which removal shall be effective 60 days after delivery
to the Trustee or such shorter period as may be mutually agreed upon by the
Employer and the Trustee.

 

Except
in the case of Plan termination, upon resignation or removal of the Trustee,
the Employer shall appoint a successor trustee. Any such successor trustee
shall, upon written acceptance of his appointment, become vested with the
estate, rights, powers, discretion, duties and obligations of the Trustee
hereunder as if he had been originally named as Trustee in this Agreement.

 

Upon
resignation or removal of the Trustee, the Employer shall no longer participate
in this prototype plan and shall be deemed to have adopted an individually
designed plan. In such event, the Employer shall appoint a successor trustee
within said 60-day period and the Trustee shall transfer the assets of the
Trust to 

 

82

 

the
successor trustee upon receipt of sufficient evidence (such as a determination
letter or opinion letter from the Internal Revenue Service or an opinion of
counsel satisfactory to the Trustee) that such trust shall be a qualified trust
under the Code.

 

The
appointment of a successor trustee shall be accomplished by delivery to the
Trustee of written notice that the Employer has appointed such successor
trustee, and written acceptance of such appointment by the successor trustee.
The Trustee may, upon transfer and delivery of the Trust Fund to a successor
trustee, reserve such reasonable amount as it shall deem necessary to provide
for its fees, compensation, costs and expenses, or for the payment of any other
liabilities chargeable against the Trust Fund for which it may be liable. The
Trustee shall not be liable for the acts or omissions of any successor trustee.

 

20.20. Fiscal Year of the Trust.  The fiscal year of the Trust shall coincide
with the Plan Year.

 

20.21. Discharge of Duties by Fiduciaries.  The Trustee and the Employer and any other
fiduciary shall discharge their duties under the Plan and this Trust Agreement
solely in the interests of Participants and their Beneficiaries in accordance
with the requirements of ERISA.

 

20.22. Amendment.  In accordance with provisions of the Plan,
and subject to the limitations set forth therein, this Trust Agreement may be
amended by an instrument in writing signed by the Employer and the Trustee. No
amendment to this Trust Agreement shall divert any part of the Trust Fund to
any purpose other than as provided in Section 20.03.

 

20.23. Plan Termination.  Upon termination or partial termination of
the Plan or complete discontinuance of contributions thereunder, the Trustee
shall make distributions to the Participants or other persons entitled to
distributions as the Employer or Administrator directs in accordance with the
provisions of the Plan. In the absence of such instructions and unless the Plan
otherwise provides, the Trustee shall notify the Employer or Administrator of
such situation and the Trustee shall be under no duty to make any distributions
under the Plan until it receives written instructions from the Employer or
Administrator. Upon the completion of such distributions, the Trust shall
terminate, the Trustee shall be relieved from all liability under the Trust,
and no Participant or other person shall have any claims thereunder, except as
required by applicable law.

 

20.24. Permitted Reversion of Funds to Employer.  If it is determined by the Internal Revenue
Service that the Plan does not initially qualify under Code Section 401,
all assets then held under the Plan shall be returned by the Trustee, as
directed by the Administrator, to the Employer, but only if the application for
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
may be prescribed by regulations. Such distribution shall be made within one
year after the date the initial qualification is denied. Upon such distribution
the Plan shall be considered to be rescinded and to be of no force or effect.

 

Contributions
under the Plan are conditioned upon their deductibility under Code Section 404.
In the event the deduction of a contribution made by the Employer is disallowed
under Code Section 404, such contribution (to the extent disallowed) must
be returned to the Employer within one year of the disallowance of the
deduction.

 

Any
contribution made by the Employer because of a mistake of fact must be returned
to the Employer within one year of the contribution.

 

83

 

20.25. Governing Law.  This Trust Agreement shall be construed,
administered and enforced according to ERISA and, to the extent not preempted
thereby, the laws of the Commonwealth of Massachusetts.

 

Nothing
contained in Sections 20.04, 20.13 or 20.21 or this Section 20.25 shall be
construed in a manner which subjects a governmental plan (as defined in Code Section 414(d))
or a non-electing church plan (as described in Code Section 410(d)) to the
fiduciary provisions of Title I of ERISA.

 

84

 

ADDENDUM

 

IRS Model Amendment for Proposed Regulations Under Section 401(a)(9) of
the Internal Revenue Code

 

Distributions for Calendar Years Beginning on or After 2002. With respect
to distributions under the Plan for calendar years beginning on or after January
1, 2002, the Plan will apply the minimum distribution requirements of section
401(a)(9) of the Internal Revenue Code in accordance with the regulations under
section 401(a)(9) that were proposed on January 17, 2001, notwithstanding any
provision of the Plan to the contrary. This amendment shall continue in effect
until the end of the last calendar year beginning before the effective date of
final regulations under section 401(a)(9) or such other date as may be
specified in guidance  published by the Internal Revenue Service.

 

1

 

The CORPORATEplan for RetirementSM

ADDENDUM

Re: Economic Growth and Tax Relief Reconciliation Act of 2001

(“EGTRRA”)

Amendments for Fidelity Basic Plan Document No. 02

 

PREAMBLE

 

Adoption and Effective Date of Amendment. This
amendment of the Plan is adopted to reflect certain provisions of the Economic
Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). This amendment is
intended as good faith compliance with the requirements of EGTRRA and is to be
construed in accordance with EGTRRA and guidance issued thereunder. Except as
otherwise provided below, this amendment shall be effective as of the first day
of the first plan year beginning after December 31, 2001.

 

Supersession of Inconsistent Provisions. This
amendment shall supersede the provisions of the Plan to the extent those
provisions are inconsistent with the provisions of this amendment.

 

1.     Section 2.01(j), “Compensation,”
is hereby amended by adding the following paragraph to the end thereof:

 

Notwithstanding anything herein to the contrary, the annual
Compensation of each Participant taken into account in determining allocations
for any Plan Year beginning after December 31, 2001, shall not exceed $200,000,
as adjusted for cost-of-living increases in accordance with Code Section 401(a)(17)(B).
Annual Compensation means Compensation during the Plan Year or such other
consecutive 12-month period over which Compensation is otherwise determined
under the Plan (the determination period). The cost-of-living adjustment in
effect for a calendar year applies to annual Compensation for the determination
period that begins with or within such calendar year.

 

2.     Section 2.01(l), “Deferral
Contribution,” is hereby amended by replacing the period with a semicolon and
adding the following to the end thereof:

 

provided, however, that the term ‘Deferral Contribution’ shall exclude
all catch-up contributions as described in Section 5.03(b)(1) for
purposes of Matching Employer Contributions as described in Section 1.10
of the Adoption Agreement, unless otherwise elected by the Employer in Section (c) of
the EGTRRA Amendments Addendum to the Adoption Agreement.

 

3.     Section 2.01(tt) “Rollover
Contribution” is hereby amended as follows:

 

‘Rollover Contribution’ means any distribution from an eligible
retirement plan as defined in Section 5.06 that an Employee elects to
contribute to the Plan in accordance with the terms of such Section 5.06.

 

4.     The existing text of Section 5.03
is hereby redesignated as Section 5.03(a), and a new Section 5.03(b) is
hereby added to read as follows

 

1

 

(b)   Catch-up
Contributions.

 

(1)   If elected by the Employer in Section (a) of
the EGTRRA Amendments Addendum to the Adoption Agreement, all Participants  who are eligible to make Deferral
Contributions under the Plan and who are projected to attain age 50 before the
close of the calendar year shall be eligible to make catch-up contributions in
accordance with, and subject to the limitations of, Code Section 414(v). Such
catch-up contributions shall not be taken into account for purposes of the
provisions of the Plan implementing the required limitations of Code Sections
402(g) and 415. The Plan shall not be treated as failing to satisfy the
provisions of the Plan implementing the requirements of Code Section 401(k)(3),
401(k)(11), 401(k)(12), 410(b), or 416, as applicable, by reason of the making
of such catch-up contributions.

 

(2)   Unless otherwise elected by the Employer in Section (b) of
the EGTRRA Amendments Addendum to the Adoption Agreement, if the Plan permits
catch-up contributions, as described in paragraph (1) above on April 1, 2002,
then, notwithstanding anything herein to the contrary, effective April 1, 2002,
the limit on Deferral Contributions, as otherwise provided in Section 1.07(a)(1) (the
“Plan Limit”) shall be 60% of Compensation for the payroll period in question, provided,
however, that this Section 5.03(b)(2) shall be inapplicable if the
Plan’s Section 1.01(g)(2)(B) Amendment Effective Date is after April 1,
2002.

 

(3)   In the event that the Plan Limit is changed during
the Plan Year, for purposes of determining catch-up contributions for the Plan
Year, as described in paragraph (1) above, the Plan Limit shall be
determined pursuant to the time-weighted average method described in Proposed
Income Tax Regulation Section 1.414(v)-1(b)(2)(i).

 

5.     Section 5.06 is hereby
amended to add the following paragraph to the end thereof:

 

Unless otherwise elected by the Employer in Section (e) of
the EGTRRA Amendments Addendum to the Adoption Agreement, the Plan will accept
Participant Rollover Contributions and/or direct rollovers of distributions
made after December 31, 2001 (including Rollover Contributions received by the
Participant as a surviving spouse, or a spouse or former spouse who is an
alternate payee under a qualified domestic relations order), from the following
types of plans:

 

(a)       a qualified plan described in Code Section 401(a) or
403(a), including after-tax employee contributions (provided, however, that any
such after-tax employee contributions must be contributed in a direct
rollover);

 

(b)       an annuity contract described in Code Section 403(b),
excluding after-tax employee contributions;

 

(c)       an eligible plan under Code Section 457(b) that
is maintained by a state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision of a state; and

 

(d)       Participant Rollover Contributions of the portion of
a distribution from an individual retirement account or annuity described in
Code Section 408(a) or 408(b) that is eligible to be rolled over
and would otherwise be includible in gross income, provided, however, that the
Plan will in no event accept a rollover contribution consisting of
nondeductible individual retirement account or annuity contributions.

 

6.     The first paragraph of Section 6.02
is hereby amended by replacing the first sentence thereof with the following:

 

2

 

In no event shall the amount of Deferral Contributions made under the
Plan for a calendar year, when aggregated with the ‘elective deferrals’ made
under any other plan maintained by the Employer or a Related Employer, exceed
the dollar limitation contained in Code Section 402(g) in effect at
the beginning of such calendar year, except to the extent permitted under Section 5.03(b)(1) and
Code Section 414(v), if applicable.

 

7.     Section 6.08 is hereby
amended by adding the following sentence to the end thereof:

 

Notwithstanding anything herein to the contrary, the multiple use test
described in Treasury Regulation Section 1.401(m)-2 and this Section 6.08
shall not apply for Plan Years beginning after December 31, 2001.

 

8.     Section 6.12 is hereby
amended by adding a new subsection 6.12(e) thereto as follows:

 

(e)       Maximum Annual Additions for Limitation Years
Beginning After December 31, 2001. Notwithstanding anything
herein to the contrary, this subsection (e) shall be effective for
Limitation Years beginning after December 31, 2001. Except to the extent
permitted under Section 5.03(b)(1) and Code Section 414(v), if
applicable, the ‘annual additions’ that may be contributed or allocated to a
Participant’s Account under the Plan for any Limitation Year shall not exceed
the lesser of:

 

(1)    $40,000, as adjusted for increases in the
cost-of-living under Code Section 415(d), or

 

(2)    100 percent of the Participant’s compensation, within
the meaning of Code Section 415(c)(3), for the Limitation Year.

 

The compensation limit referred to in (2) shall not apply to any
contribution for medical benefits after separation from service (within the
meaning of Code Section 401(h) or 419 A(f)(2)) that is otherwise
treated as an ‘annual addition’.

 

9.     Section 9.04 is hereby amended
by replacing the final period in the first paragraph with a semi-colon and
adding the following to the end thereof:

 

provided, however, that notwithstanding anything herein to the contrary,
effective for Plan loans made after December 31, 2001, Plan provisions
prohibiting loans to any ‘owner-employee’ or ‘shareholder-employee’ shall cease
to apply.

 

10.   Section 10.05(b)(2) is
hereby amended by replacing the semicolon with a period and adding the
following to the end thereof:

 

Notwithstanding anything herein to the contrary, the rule in this Section 10.05(b)(2) shall
be applied to a Participant who receives a distribution after December 31, 2001,
on account of hardship, by substituting the phrase ‘the 6-month period’ for the
phrase ‘the 12-month period’.

 

11.   Section 10.05(b)(4) is
hereby amended by adding the following phrase to the beginning thereof:

 

Effective for calendar years beginning before January 1, 2002, for a
Participant who received a hardship distribution before January 1, 2001,

 

12.   The existing text of Section 11.05
is hereby redesignated as Section 11.05(a), and a new Section 11.05(b) is
hereby added to read as follows:

 

3

 

(b)   Vesting of
Matching Employer Contributions. Notwithstanding
anything herein to the contrary, the vesting schedule elected by the Employer in Section (d)(1) of
the EGTRRA Amendments Addendum to the Adoption Agreement shall apply to all
accrued benefits derived from Matching Employer Contributions for Participants
who complete an Hour of Service in a Plan Year beginning after December 31, 2001,
except as otherwise elected by the Employer in Section (d)(2) or Section (d)(3) of
the EGTRRA Amendments Addendum to the Adoption Agreement. With respect to
Participants covered by a collective bargaining agreement, the vesting schedule
elected in Section (d)(1) of the EGTRRA Amendments Addendum to the
Adoption Agreement shall take effect on a later date if so elected in Section (d)(2).
If so elected in Section (d)(3) of the EGTRRA Amendments Addendum to
the Adoption Agreement, the vesting schedule elected in Section (d)(1) shall
apply only to the accrued benefits derived from Matching Employer Contributions
made with respect to Plan Years beginning after December 31, 2001 (or such
later date as may be provided in Section (d)(2) for Participants
covered by a collective bargaining agreement).

 

13.   The existing text of Section 12.01
is hereby redesignated as Section 12.01(a), current subsections (a), (b), and
(c) thereof are redesignated as paragraphs (1), (2), and (3), respectively,
and the first sentence thereof is replaced with the following:

 

Subject to the application of Section 12.01(b), a Participant or
his Beneficiary may not receive a distribution from his Deferral Contributions,
Qualified Nonelective Employer Contributions, Qualified Matching Employer
Contributions, safe harbor Matching Employer Contributions or safe harbor
Nonelective Employer Contributions Accounts earlier than upon the Participant’s
separation from service with the Employer and all Related Employers, death, or
disability, except as otherwise provided in Article 10 or Section 12.04.

 

14.   Section 12.01 is hereby
amended by adding a new subsection (b) to the end thereof:

 

(b)   If elected by the Employer in Section (f) of
the EGTRRA Amendments Addendum to the Adoption Agreement, notwithstanding
subsection (a) of this Section 12.01, a Participant, or his
Beneficiary, may receive a distribution after December 31, 2001 (or such later
date as specified therein), from his Deferral Contributions, Qualified
Nonelective Employer Contributions, Qualified Matching Employer Contributions, safe
harbor Matching Employer Cotributions or safe harbor Nonelective Employer
Contributions Accounts on account of the Participant’s severance from
employment occurring after the dates specified in Section (f) of the
EGTRRA Amendments Addendum to the Adoption Agreement.

 

15.   Section 13.04 is hereby
amended by adding the following paragraph to the end thereof:

 

Notwithstanding
anything herein to the contrary, the following provisions shall apply to
distributions made after December 31, 2001:

 

(i)            Modification of definition of eligible
retirement plan. For purposes of this Section 13.04, an
‘eligible retirement plan’ shall also mean an annuity contract described in
Code Section 403(b) and an eligible deferred compensation plan under
Code Section 457(b) that is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state and which agrees to separately account for
amounts transferred into such plan from this Plan. The definition of ‘eligible
retirement plan’ shall also apply in the case of a distribution to a surviving
spouse, or to a spouse or former spouse who is the alternate payee under a
qualified domestic relations order, as defined in Code Section 414(p).

 

(ii)           Modification of definition of eligible rollover
distribution to exclude hardship distributions. For purposes of this Section 13.04,
any amount that is distributed on account of hardship shall 

 

4

 

not
be an ‘eligible rollover distribution’ and the ‘distributee’ may not elect to
have any portion of such a distribution paid directly to an ‘eligible
retirement plan.’

 

(iii)          Modification of definition of eligible rollover
distribution to include after-tax Employee Contributions. For purposes
of this Section 13.04, a portion of a distribution shall not fail to be an
“eligible rollover distribution” merely because the portion consists of
after-tax Employee Contributions which are not includible in gross income. However,
such portion may be transferred only to an individual retirement account or
annuity described in Code Section 408(a) or (b), or to a qualified
defined contribution plan described in Code Section 401(a) or 403(a) that
agrees to separately account for amounts so transferred, including separately
accounting for the portion of such distribution which is includible in gross
income and the portion of such distribution which is not so includible.

 

16.   Article 15 is hereby
amended by adding a new Section 15.08 at the end thereof as follows:

 

15.08.             Modification of Top-Heavy Provisions. Notwithstanding anything herein to the contrary, this
Section 15.08 shall apply for purposes of determining whether the Plan is
a top-heavy plan under Code Section 416 (g) for Plan Years beginning
after December 31, 2001, and whether the Plan satisfies the minimum benefits
requirements of Code Section 416(c) for such years. This Section modifies
the rules in this Article 15 of the Plan for Plan Years beginning
after December 31, 2001.

 

(a)   Determination of top-heavy
status.

 

(1)   Key employee. 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. For this purpose, annual
compensation means compensation within the meaning of Code Section 415(c)(3).
The determination of who is a key employee will be made in accordance with Code
Section 416(i)(1) and the applicable regulations and other guidance
of general applicability issued thereunder.

 

(2)   Determination of present
values and amounts. This Section 15.08(a)(2) shall apply for
purposes of determining the present values of accrued benefits and the amounts
of account balances of Employees as of the determination date.

 

(A)  Distributions during year
ending on the determination date. The present values of
accrued benefits and the amounts of account balances of an Employee as of the
determination date shall be increased by the distributions made with respect to
the Employee under the Plan and any plan aggregated with the Plan under Code Section 416(g) (2) during the 1-year period
ending on the determination date. The preceding sentence shall also apply to
distributions under a terminated plan which, had it not been terminated, would
have been aggregated with the Plan under Code Section 416(g)(2)(A)(i). In
the case of a distribution made for a reason other than separation from service,
death, or disability, this provision shall be applied by substituting the
phrase “5-year period” for the phrase “1-year period.” 

 

(B)   Employees not performing
services during year ending on the determination date. The accrued
benefits and accounts of any individual who has not performed 

 

5

 

services for the Employer during the 1-year period ending on the
determination date shall not be taken into account.

 

(b)   Minimum benefits.

 

(1)   Matching contributions. Matching
Employer Contributions shall be taken into account for purposes of satisfying
the minimum contribution requirements of Code Section 416(c)(2) and
the Plan. The preceding sentence shall apply with respect to Matching Employer
Contributions under the Plan or, if the Plan provides that the minimum
contribution requirement shall be met in another plan, such other plan. Matching
Employer Contributions that are used to satisfy the minimum contribution
requirements shall be treated as matching contributions for purposes of the
actual contribution percentage test and other requirements of Code Section 401(m).

 

(2)   Contributions under other plans. The Employer
may provide in the Adoption Agreement that the minimum benefit requirement
shall be met in another plan (including another plan that consists solely of a
cash or deferred arrangement which meets the requirements of Code Section 401(k)(12)
and matching contributions with respect to which the requirements of Code Section 401(m)(11)
are met).

 

(c)   Other Modifications. The top-heavy requirements
of Code Section 416 and this Article 15 shall not apply in any year
beginning after December 31, 2001, in which the Plan consists solely of a cash
or deferred arrangement which meets the requirements of Code Section 401(k)(12)
and Matching Employer Contributions with respect to which the requirements of
Code Section 401(m)(11) are met.

 

6

 

ADDENDUM

 

IRS Model Amendment for Final and Temporary Regulations

Under Internal Revenue Code Section 401(a)(9)

 

Section 1.  General
Rules

 

1.1   Effective Date. The provisions of this addendum will
apply for purposes of determining required minimum distributions for calendar
years beginning with the 2003 calendar year.

 

1.2   Precedence. The requirements of this addendum will
take precedence over any inconsistent provisions of the Plan.

 

1.3   Requirements of Treasury Regulations Incorporated. All
distributions required under this addendum will be determined and made in
accordance with the Treasury regulations under section 401(a)(9) of the
Internal Revenue Code.

 

1.4   TEFRA Section 242(b)(2) Elections. Notwithstanding
the other provisions of this addendum, distributions may be made under a
designation made before January 1, 1984, in accordance with section 242(b)(2) of
the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the
Plan that relate to section 242(b)(2) of TEFRA.

 

Section 2.  Time
and Manner of Distribution.

 

2.1   Required Beginning Date. The Participant’s entire
interest will be distributed, or begin to be distributed, to the Participant no
later than the Participant’s Required Beginning Date.

 

2.2   Death of Participant Before Distributions Begin. If
the Participant dies before distributions begin, the Participant’s entire
interest will be distributed, or begin to be distributed, no later than as
follows:

 

(a)   If the Participant’s surviving spouse is the
Participant’s sole designated Beneficiary, then, except as otherwise elected
under section 6, distributions to the surviving spouse will begin by December 31
of the calendar year immediately following the calendar year in which the
Participant died, or by December 31 of the calendar year in which the
Participant would have attained age 70 1⁄2, if later.

 

(b)   If the Participant’s surviving spouse is not the
Participant’s sole designated Beneficiary, then, except as otherwise elected
under section 6, distributions to the designated Beneficiary will begin by December
31 of the calendar year immediately following the calendar year in which the
Participant died.

 

(c)   If there is no designated Beneficiary as of September
30 of the year following the year of the Participant’s death, the Participant’s
entire interest will be distributed by December 31 of the calendar year
containing the fifth anniversary of the Participant’s death.

 

(d)   If the Participant’s surviving spouse is the
Participant’s sole designated Beneficiary and the surviving spouse dies after
the Participant but before distributions to the surviving spouse begin, this
section 2.2, other than section 2.2(a), will apply as if the surviving spouse
were the Participant.

 

For purposes of this section 2.2 and section 4, unless section 2.2(d) applies,
distributions are considered to begin on the Participant’s Required Beginning
Date. If section 2.2(d) applies, distributions are considered to begin on
the date distributions are required to begin to the surviving spouse under
section 2.2(a). If distributions under an annuity purchased from an insurance
company irrevocably commence to the Participant before the Participant’s 

 

1

 

Required Beginning Date (or to the Participant’s surviving spouse
before the date distributions are required to begin to the surviving spouse
under section 2.2(a)), the date distributions are considered to begin is the
date distributions actually commence.

 

2.3   Forms of Distribution. Unless the Participant’s
interest is distributed in the form of an annuity purchased from an insurance
company or in a single sum on or before the Required Beginning Date, as of the
first distribution calendar year distributions will be made in accordance with
sections 3 and 4 of this addendum. If the Participant’s interest is distributed
in the form of an annuity purchased from an insurance company, distributions
thereunder will be made in accordance with the requirements of section 401(a) (9) of the Code and the
Treasury regulations.

 

Section 3.  Required
Minimum Distributions During Participant’s Lifetime.

 

3.1   Amount of Required Minimum Distribution For Each
Distribution Calendar Year. During the Participant’s lifetime, the minimum
amount that will be distributed for each distribution calendar year is the
lesser of:

 

(a)   the quotient obtained by dividing the Participant’s
account balance by the distribution period in the Uniform Lifetime Table set
forth in section 1.401(a)(9)-9 of the Treasury regulations, using the
Participant’s age as of the Participant’s birthday in the distribution calendar
year; or

 

(b)   if the Participant’s sole designated Beneficiary for
the distribution calendar year is the Participant’s spouse, the quotient
obtained by dividing the Participant’s account balance by the number in the
Joint and Last Survivor Table set forth in section 1.401(a)(9)-9 of the
Treasury regulations, using the Participant’s and spouse’s attained ages as of
the Participant’s and spouse’s birthdays in the distribution calendar year.

 

3.2   Lifetime Required Minimum Distributions Continue
Through Year of Participant’s Death. Required minimum distributions will be
determined under this section 3 beginning with the first distribution calendar
year and up to and including the distribution calendar year that includes the
Participant’s date of death.

 

Section 4.  Required
Minimum Distributions After Participant’s Death.

 

4.1   Death On or After Date Distributions Begin.

 

(a)   Participant Survived by
Designated Beneficiary. If the Participant dies on or after the date
distributions begin and there is a designated Beneficiary, the minimum amount
that will be distributed for each distribution calendar year after the year of
the Participant’s death is the quotient obtained by dividing the Participant’s
account balance by the longer of the remaining life expectancy of the Participant
or the remaining life expectancy of the Participant’s designated Beneficiary, determined
as follows:

 

(1)   The Participant’s remaining
life expectancy is calculated using the age of the Participant in the year of
death, reduced by one for each subsequent year.

 

(2)   If the Participant’s
surviving spouse is the Participant’s sole designated Beneficiary, the
remaining life expectancy of the surviving spouse is calculated for each
distribution calendar year after the year of the Participant’s death using the
surviving spouse’s age as of the spouse’s birthday in that year. For
distribution calendar years after the year of the surviving spouse’s death, the
remaining life expectancy of the surviving spouse is calculated using the age
of the surviving spouse as of the spouse’s birthday in the calendar year of the
spouse’s death, reduced by one for each subsequent calendar year.

 

2

 

(3)   If the Participant’s
surviving spouse is not the Participant’s sole designated Beneficiary, the
designated Beneficiary’s remaining life expectancy is calculated using the age
of the Beneficiary in the year following the year of the Participant’s death, reduced
by one for each subsequent year.

 

(b)   No Designated Beneficiary. If
the Participant dies on or after the date distributions begin and there is no
designated Beneficiary as of September 30 of the year after the year of the
Participant’s death, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s account balance by the
Participant’s remaining life expectancy calculated using the age of the
Participant in the year of death, reduced by one for each subsequent year.

 

4.2   Death Before Date Distributions Begin.

 

(a)   Participant Survived by
Designated Beneficiary. Except as otherwise elected under section 6, if the
Participant dies before the date distributions begin and there is a designated
Beneficiary, the minimum amount that will be distributed for each distribution
calendar year after the year of the Participant’s death is the quotient
obtained by dividing the Participant’s account balance by the remaining life
expectancy of the Participant’s designated Beneficiary, determined as provided
in section 4.1.

 

(b)   No Designated Beneficiary. If
the Participant dies before the date distributions begin and there is no
designated Beneficiary as of September 30 of the year following the year of the
Participant’s death, distribution of the Participant’s entire interest will be
completed by December 31 of the calendar year containing the fifth anniversary
of the Participant’s death.

 

(c)   Death of Surviving Spouse
Before Distributions to Surviving Spouse Are Required to Begin. If the
Participant dies before the date distributions begin, the Participant’s
surviving spouse is the Participant’s sole designated Beneficiary, and the
surviving spouse dies before distributions are required to begin to the
surviving spouse under section 2.2(a), this section 4.2 will apply as if the
surviving spouse were the Participant.

 

Section 5.  Definitions.

 

5.1   Designated Beneficiary. The individual who is the
designated Beneficiary, as such term is defined under section 2.01 of the Plan,
and is the designated Beneficiary under section 401(a)(9) of the Internal
Revenue Code and section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations.

 

5.2   Distribution calendar year. A calendar year for
which a minimum distribution is required. For distributions beginning before
the Participant’s death, the first distribution calendar year is the calendar
year immediately preceding the calendar year which contains the Participant’s
Required Beginning Date. For distributions beginning after the Participant’s
death, the first distribution calendar year is the calendar year in which
distributions are required to begin under section 2.2. The required minimum
distribution for the Participant’s first distribution calendar year will be
made on or before the Participant’s Required Beginning Date. The required
minimum distribution for other distribution calendar years, including the
required minimum distribution for the distribution calendar year in which the
Participant’s Required Beginning Date occurs, will be made on or before December
31 of that distribution calendar year.

 

5.3   Life expectancy. Life expectancy as computed by use
of the Single Life Table in section 1.401(a)(9)-9 of the Treasury regulations.

 

5.4   Participant’s account balance. The account balance
as of the last valuation date in the calendar year immediately preceding the
distribution calendar year (valuation calendar year) increased by the amount of
any contributions made and allocated or forfeitures allocated to the account
balance as of dates in the valuation calendar year after the valuation date and
decreased by distributions made in the valuation 

 

3

 

calendar
year after the valuation date. The account balance for the valuation calendar
year includes any amounts rolled over or transferred to the Plan either in the
valuation calendar year or in the distribution calendar year if distributed or
transferred in the valuation calendar year.

 

5.5   Required Beginning Date. The Required Beginning Date,
as such term is defined in section 2.01 of the Plan.

 

Section 6.  Elections.

 

(a)   Participants or
Beneficiaries May Elect 5-Year Rule. Participants or Beneficiaries may
elect on an individual basis whether the 5-year rule or the life expectancy rule in
sections 2.2 and 4.2 of this addendum applies to distributions after the death
of a Participant who has a designated Beneficiary. The election must be made no
later than the earlier of September 30 of the calendar year in which
distribution would be required to begin under section 2.2 of this addendum, or
by September 30 of the calendar year which contains the fifth anniversary of
the Participant’s (or, if applicable, the surviving spouse’s) death. If neither
the Participant nor the Beneficiary makes an election under this section 6, distributions
will be made in accordance with sections 2.2 and 4.2 of this addendum.

 

(b)   Designated Beneficiary
Receiving Distributions Under 5-Year Rule May Elect Life Expectancy
Distributions. A designated Beneficiary who is receiving payments under the
5-year rule may make a new election to receive payments under the life
expectancy rule until December 31, 2003, provided that all amounts that
would have been required to be distributed under the life expectancy rule for
all distribution calendar years before 2004 are distributed by the earlier of December
31, 2003 or the end of the 5-year period.

 

4

 

The CORPORATEplan for RetirementSM

 

ADDENDUM

Re: Economic Growth and Tax Relief Reconciliation Act of 2001

(“EGTRRA”)

Second Amendment for Fidelity Basic Plan Document No. 02

 

PREAMBLE

 

Adoption and Effective Date of Amendment.  This amendment of the Plan is adopted to
reflect certain provisions of the Economic Growth and Tax Relief Reconciliation
Act of 2001 (“EGTRRA”). This amendment is intended as good faith compliance
with the requirements of EGTRRA and is to be construed in accordance with
EGTRRA and guidance issued thereunder. 
This amendment shall be effective December 1, 2003.

 

Supersession of Inconsistent Provisions.  This amendment shall supersede the provisions
of the Plan to the extent those provisions are inconsistent with the provisions
of this amendment.

 

The
following paragraph is hereby added to the end of Section 16.04:

 

Notwithstanding
anything in the Basic Plan Document or Adoption Agreement (including addenda
thereto) to the contrary, to the extent permitted by any regulation or other guidance
under the Code, forms of payment may be eliminated without the application of a
waiting period and without prior notice to Participants effective with respect
to Participants whose Annuity Starting Dates occur on or after the date the
Plan amendment eliminating such forms of payment is adopted; provided, however,
that to the extent any regulation or other guidance under the Code requires
prior notice to Participants as a precondition to the elimination of any form
of payment or imposes any other requirement on such elimination, no such
elimination shall be effective unless the Plan Administrator has complied with
such notice or other requirement.

 

1

 

The CORPORATEplan for
RetirementSM

 

ADDENDUM

Re: Economic Growth and Tax Relief Reconciliation Act of 2001

(“EGTRRA”)

Automatic Rollover

Amendments for Fidelity Basic Plan Document
No. 02

 

PREAMBLE

 

Adoption and Effective Date of Amendment.  This amendment of the Plan is adopted to
reflect the automatic rollover rules enacted as part of the Economic
Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). This amendment is
intended as good faith compliance with the requirements of EGTRRA and is to be
construed in accordance with EGTRRA and guidance issued thereunder.  This amendment shall be effective March 28,
2005.

 

Supersession of Inconsistent Provisions.  This amendment shall supersede the provisions
of the Plan to the extent those provisions are inconsistent with the provisions
of this amendment.

 

Section 13.02 is hereby amended by adding the
following paragraph at the end thereof:

 

In the event of a mandatory distribution greater than $1,000 in
accordance with the provisions of this Section 13.02 if the Participant
does not elect to have such distribution paid directly to an eligible
retirement plan specified by the Participant in a direct rollover or to receive
the distribution directly, then the Plan Administrator will pay the
distribution in a direct rollover to an individual retirement plan designated
by the Plan Administrator. Unless elected otherwise by the Employer in the
Adoption Agreement, $1,000 is substituted for $5,000 each time it appears in
this Section 13.02.

 

1

 

The CORPORATEplan for
RetirementSM

 

ADDENDUM

 

RE: Code Sections 401(k) and 401(m) 2004 Final Regulations,
Roth 401(k)

 

Amendments for Fidelity Basic Plan Document No. 02

 

PREAMBLE

 

Adoption and Effective Date of Amendment.  This amendment of the Plan is adopted to
reflect the final regulations under Internal Revenue Code (Code) sections 401(k) and
401(m) and to reflect Code section 402A as added by section 617 of the
Economic Growth and Tax Relief Reconciliation Act of 2001.  This amendment is intended as good faith
compliance with the requirements of Code sections 401(k), 401(m) and 402A
and is to be construed in accordance with guidance issued thereunder.  Except as otherwise provided in the numbered
paragraphs below, this amendment shall be effective as determined pursuant to
the rules in paragraphs A and B immediately below:

 

A.           Except as
otherwise provided in paragraph B below, this amendment shall be effective for
plan years that begin on or after January 1, 2006.

 

B.             If the Plan is
maintained pursuant to one or more collective bargaining agreements between
employee representatives and one or more employers in effect on the date
described in paragraph A above, this amendment shall be effective beginning
with the later of the first plan year beginning after the termination of the last
such agreement or the first plan year described in paragraph A above.

 

Supersession of Inconsistent Provisions.  This amendment shall supersede the provisions
of the Plan to the extent those provisions are inconsistent with the provisions
of this amendment.

 

1.               Section 5.03,
“Deferral Contributions,” is hereby amended, effective January 1, 2006, by
adding a new subsection (c) to the end thereof to provide as follows:

 

(c)                                  Roth
Deferral Contributions.

 

(1)                      General
Application.

 

(A)          This subsection
(c) will apply to contributions beginning with the effective date
specified in the Roth Deferral Contributions Addendum to the Adoption Agreement
but in no event before the first day of the first taxable year beginning on or
after January 1, 2006.

 

(B)           As of the
effective date under subparagraph (A) hereof, the Plan will accept Roth
Deferral Contributions made on behalf of Participants.  A Participant’s Roth Deferral Contributions
will be allocated to a separate account maintained for such contributions as
described in paragraph (2) of this Section 5.03(c).

 

 

(C)           Unless
specifically stated otherwise, Roth Deferral Contributions will be treated as
Deferral Contributions for all purposes under the Plan.

 

(2)                      Separate
Accounting.

 

(A)          Contributions
and withdrawals of Roth Deferral Contributions will be credited and debited to
the Roth Deferral Contributions sub-account maintained for each Participant
within the Participant’s Account.

 

(B)           The Plan will
maintain a record of the amount of Roth Deferral Contributions in each such
sub-account.

 

(C)           Gains, losses,
and other credits or charges must be separately allocated on a reasonable and
consistent basis to each Participant’s Roth Deferral Contributions sub-account
and the Participant’s other sub-accounts within the Participant’s Account under
the Plan.

 

(D)          No contributions
other than Roth Deferral Contributions and properly attributable earnings will
be credited to each Participant’s Roth Deferral Contributions sub-account.

 

(3)                      Direct Rollovers.

 

(A)          Notwithstanding
anything to the contrary in Section 13.04, a direct rollover of a
distribution from a Roth Deferral Contributions sub-account under the Plan will
only be made to another Roth Deferral Contributions account under an applicable
retirement plan described in Code section 402A(e)(1) or to a Roth IRA
described in Code section 408A and only to the extent the rollover is permitted
under the rules of Code section 402(c).

 

(B)           Notwithstanding
anything to the contrary in Section 5.06, and provided the Employer so elects
in the Roth Deferral Contributions Addendum to the Adoption Agreement, the Plan
will accept a rollover contribution to a Roth Deferral Contributions
sub-account, but only if it is a direct rollover from another Roth Deferral
Contributions account under an applicable retirement plan described in Code
section 402A(e)(1) and only to the extent the rollover is permitted under
the rules of Code section 402(c).

 

(C)           The Plan will
not provide for a direct rollover (including an automatic rollover) for
distributions from a Participant’s Roth Deferral Contributions sub-account if
the amounts of the distributions that are eligible rollover distributions are
reasonably expected to total less than $200 during a year.  In addition, any distribution from a
Participant’s Roth Deferral Contributions sub-account is not taken into account
in determining whether distributions from a Participant’s other sub-

 

 

accounts
are reasonably expected to total less than $200 during a year.  However, eligible rollover distributions from
a Participant’s Roth Deferral Contributions sub-account are taken into account
in determining whether the total amount of the Participant’s account balances
under the Plan exceeds $1,000 for purposes of mandatory distributions from the
Plan.

 

(D)          The provisions
of the Plan that allow a Participant to elect a direct rollover of only a
portion of an eligible rollover distribution but only if the amount rolled over
is at least $500 is applied by treating any amount distributed from the
Participant’s Roth Deferral Contributions sub-account as a separate
distribution from any amount distributed from the Participant’s other
sub-accounts in the Plan, even if the amounts are distributed at the same time.

 

(4)                      Correction of Excess
Contributions.  In the case of a
distribution of excess contributions to a Highly Compensated Employee, such
excess contributions shall be deemed to be pre-tax Deferral Contributions to
the extent such Highly Compensated Employee made pre-tax Deferral Contributions
for the year, and any remainder shall be deemed to be Roth Deferral
Contributions.

 

(5)                      Roth Deferral Contributions
Defined.  A Roth Deferral Contribution is
an elective deferral contribution that is:

 

(A)          Designated
irrevocably by the participant at the time of the cash or deferred election as
a Roth Deferral Contribution that is being made in lieu of all or a portion of
the pre-tax elective deferrals the participant is otherwise eligible to make
under the Plan; and

 

(B)           Treated by the
employer as includible in the participant’s income at the time the participant
would have received that amount in cash if the participant had not made a cash
or deferred election.

 

2.               Section 5.07,
“Qualified Nonelective Employer Contributions,” is hereby amended in its
entirety to provide as follows:

 

The
Employer may, in its discretion, make a Qualified Nonelective Employer
Contribution for the Plan Year in any amount necessary to satisfy or help to
satisfy the “ADP” test, described in Section 6.03, and/or the “ACP” test,
described in Section 6.06. 
Qualified Nonelective Employer contributions shall be allocated based on
Participant’s “testing compensation,” as defined in Subsection 6.01(t), rather
than Compensation, as defined in Subsection 2.01 (j).  Any Qualified Nonelective Employer Contribution
shall be allocated only as provided in this Section 5.07 (notwithstanding
anything to the contrary in Section 1.09 or in any other Plan provision).

 

Notwithstanding
anything to the contrary in Section 1.09 or in any other Plan provision,
Qualified Nonelective Employer Contributions shall be allocated to 

 

 

Participants
who were Active Participants at any time during the Plan Year and are
Non-Highly Compensated Employees pursuant to either (a) or (b) below.

 

(a)          If the Employer has not elected Section 1.09(a)(1) in
the Adoption Agreement, Qualified Nonelective Employer Contributions shall be
allocated in the ratio which each such Participant’s “testing compensation,” as
defined in Subsection 6.01(t), for the Plan Year bears to the total of all such
Participants’ “testing compensation” for the Plan Year.

 

(b)         If the Employer has elected Section 1.09(a)(1) in
the Adoption Agreement, Qualified Nonelective Employer Contributions shall be
allocated as provided in such Section 1.09(a)(1), provided, however, that
in no event shall any such allocation to an eligible Participant exceed 5% of
the “testing compensation” of such Participant for the Plan Year, and, provided
further that, notwithstanding the above, in the event the Employer elects to
disaggregate the Plan pursuant to Treasury Regulation Section 1.401(k)-1(b)(4) and
consistent with Code section 410(b)(4)(B), the Employer may choose to provide
Qualified Nonelective Employer Contributions to only those otherwise eligible
Participants who are covered by the resulting component plan that covers the
non-excludable Participants.

 

Subject
to subsection (b) hereof, Active Participants shall not be required to
satisfy any Hours of Service or employment requirement for the Plan Year in
order to receive an allocation of Qualified Nonelective Employer Contributions.

 

Qualified
Nonelective Employer Contributions shall be distributable only in accordance
with the distribution provisions that are applicable to Deferral Contributions;
provided, however, that a Participant shall not be permitted to take a hardship
withdrawal of amounts credited to his Qualified Nonelective Employer
Contributions Account after the later of December 31, 1988 or the last day
of the Plan Year ending before July 1, 1989.

 

3.               Section 6.09,
“Income or Loss on Distributable Contributions,” is hereby amended in its
entirety to provide as follows:

 

The
income or loss allocable to “excess deferrals”, “excess contributions”, and
“excess aggregate contributions” shall be determined under the following method:  The income or loss attributable to such
distributable contributions shall be the sum of (i) the income or loss on
such contributions for the “determination year”, determined under any
reasonable method, plus (ii) the income or loss on such contributions for
the “gap period”, determined under such reasonable method.  Any reasonable method used to determine
income or loss hereunder shall be used consistently for all Participants in
determining the income or loss allocable to distributable contributions
hereunder and shall be the same method that is used by the Plan in allocating
income or loss to Participants’ Accounts. 
For purposes of this paragraph, the “gap period” means the period
between the end of the “determination year” and the date of distribution;
provided, however, that income or loss for the “gap period” may be determined
as of a date that is no more than seven days before the date of distribution.

 

 

4.               Section 6.10,
“Deemed Satisfaction of ‘ADP’ Test,” is hereby amended in its entirety to
provide as follows:

 

Notwithstanding
any other provision of this Article 6 to the contrary, for any Plan Year
beginning on or after January 1, 1999, if the Employer has elected one of
the safe harbor contributions in Subsection 1.10(a)(3) or 1.11(a) (3) of the Adoption
Agreement and complies with the notice requirements described herein for such
Plan Year, the Plan shall be deemed to have satisfied the “ADP” test described
in Section 6.03.  The Employer shall
provide to each Active Participant during the Plan Year a comprehensive notice
of the Active Participant’s rights and obligations under the Plan.  Such notice shall be written in a manner
calculated to be understood by the average Active Participant.  The Employer shall provide the notice to each
Active Participant within one of the following periods, whichever is
applicable:

 

(a)            if the employee is an Active Participant 90 days
before the beginning of the Plan Year, within the period beginning 90 days and
ending 30 days before the first day of the Plan Year; or

 

(b)           if the employee becomes an Active Participant after
the date described in subsection (a) above, within the period beginning 90
days before and ending on the date he becomes an Active Participant;

 

provided,
however, that such notice shall not be required to be provided to an Active
Participant earlier than is required under any guidance published by the
Internal Revenue Service.

 

If
an Employer that provides notice that the Plan may be amended to provide a safe
harbor Nonelective Employer Contribution for the Plan Year does amend the Plan
to provide such contribution, the Employer shall provide a supplemental notice
to all Active Participants stating that a safe harbor Nonelective Employer
Contribution in the specified amount shall be made for the Plan Year.  Such supplemental notice shall be provided to
Active Participants at least 30 days before the last day of the Plan Year.

 

Notwithstanding
the foregoing, if the Employer has elected a more stringent eligibility
requirement in Section 1.04 of the Adoption Agreement for such 401(k) safe
harbor contributions than for Deferral Contributions, the Plan may be
disaggregated pursuant to Treasury Regulation section 1.401(k)-3(h)(3),
consistent with Code section 410(b)(4)(B), and deemed to have satisfied the
“ADP” test only with respect to that portion of the Plan that satisfies Code
section 401(k)(12).  The remainder of the
Plan shall be subjected to the “ADP” test described in Section 6.03.

 

If
the Employer elected to provide safe harbor Matching Employer Contributions
pursuant to Subsection 1.10(a)(3) of the Adoption Agreement or to have
deemed satisfaction of the “ACP” test with respect to Matching Employer
Contributions pursuant to the Addendum Re Safe Harbor Nonelective Employer
Contribution to the Adoption Agreement, then, notwithstanding any election the
Employer might 

 

 

have
made pursuant to Subsection 1.10(d) of the Adoption Agreement (except for
an election to apply paragraph (6) thereof), no continuing eligibility
requirements shall apply to any Matching Employer Contributions provided under
the Plan (but an election to apply paragraph (6) of Subsection 1.10(d) is
unaffected).

 

In
the event that the Plan provides for Catch-up Contributions and the Employer
elects to make Safe Harbor Matching Employer Contributions pursuant to Section 1.10(a)(3),
then, notwithstanding anything to the contrary herein, in the event that the
Addendum Re Safe Harbor Matching Employer Contribution to the Adoption
Agreement would otherwise require Matching Employer Contributions to be made
with respect to Catch-up Contributions, then the Employer shall provide such
Matching Employer Contributions with respect to Catch-up Contributions to the
extent necessary to comply with such Matching Employer Contribution requirements.

 

5.               Subsection (a) of
Section 10.05, “Hardship Withdrawals,” is hereby amended by replacing
paragraph (5) thereof and adding new paragraphs (6) and (7) as
provided below:

 

(5)                                  payments for
burial or funeral expenses for the Participant’s deceased parent, spouse,
child, or dependent (as defined in Code section 152, and, for taxable years
beginning on or after January 1, 2005, without regard to subsection (d)(1)(B) thereof);

 

(6)                                  expenses for
the repair of damage to the Participant’s principal residence that would
qualify for the casualty deduction under Code section 165 (determined without
regard to whether the loss exceeds 10% of adjusted gross income); or

 

(7)                                  any other financial need
determined to be immediate and heavy under rules and regulations issued by
the Secretary of the Treasury or his delegate; provided, however, that any such
financial need shall constitute an immediate and heavy need under this
paragraph (7) no sooner than administratively practicable following the
date such rule or regulation is issued.

 

 

The CORPORATEplan for
RetirementSM

 

ADDENDUM

 

RE: Automatic Enrollment Contributions

 

Amendments for Fidelity Basic Plan Document No. 02

 

PREAMBLE

 

Adoption and Effective Date of Amendment.  This amendment of the Plan is adopted to reflect
certain provisions of the Pension Protection Act of 2006 and to further reflect
the final regulations under Internal Revenue Code sections 401(k) and
401(m).  This amendment is intended as
good faith compliance with the PPA and such regulations and is to be construed
in accordance with applicable guidance. 
Except as otherwise provided in the numbered paragraphs below, this
amendment shall be effective as determined pursuant to the rules in
paragraphs A and B immediately below:

 

A.           Except as
otherwise provided in paragraph B below, this amendment shall be effective for
plan years that begin on or after January 1, 2006.

 

B.             If the Plan is
maintained pursuant to one or more collective bargaining agreements between
employee representatives and one or more employers in effect on the date
described in paragraph A above, this amendment shall be effective beginning
with the later of the first plan year beginning after the termination of the
last such agreement or the first plan year described in paragraph A above.

 

Supersession of Inconsistent Provisions.  This amendment shall supersede the provisions
of the Plan to the extent those provisions are inconsistent with the provisions
of this amendment.

 

1.               Section 5.03,
“Deferral Contributions,” is hereby amended, effective March 1, 2007, by
adding a new subsection (d) to the end thereof to provide as follows:

 

(d)                                 For each Eligible Employee
for whom the Employer has elected to apply the Automatic Enrollment
Contribution provisions specified in the Automatic Enrollment Contributions
Addendum to the Adoption Agreement, such Employee’s Compensation shall be
reduced by the percentage specified by the Employer in Subsection (a), as
modified from time to time as described within Subsection (b), of said Addendum
to the Adoption Agreement. These amounts shall be contributed to the Plan on
behalf of such Active Participant as pre-tax Deferral Contributions.

 

2.               The second
sentence of the fourth paragraph of Section 6.03 is hereby amended in its
entirety to provide as follows:

 

If
a Highly Compensated Employee participates in two or more cash or deferred
arrangements that have different plan years, all ‘includable contributions’
made during the Plan Year under all such arrangements shall be treated as
having been made under the 

 

 

Plan.

 

3.               The second
sentence of the fourth paragraph of Section 6.06 is hereby amended in its
entirety to provide as follows:

 

If
a Highly Compensated Employee participates in two or more such plans that have
different plan years, all ‘contribution percentage amounts’ made during the
Plan Year under such other plans shall be treated as having been contributed to
the Plan.

 

4.               Article 11
of the Plan is hereby amended, effective January 1, 2007, by adding a new Section 11.12
to the end thereof to provide as follows:

 

11.12.  PPA Vesting on Nonelective Employer
Contributions. 
Notwithstanding anything to the contrary herein, an Employer that adopts
a Plan amendment to bring the Plan’s vesting schedule into compliance with the
Pension Protection Act of 2006 (the “PPA”) with respect to Nonelective Employer
Contributions will reflect such PPA-compliant vesting schedule (the “PPA
Schedule”) in Section 1.15.  In no
event shall the PPA Schedule apply to a Participant unless the Participant has
at least one Hour of Service on or after the effective date of the amendment
adopting the PPA Schedule.  To reflect
this, the Employer will elect Section 1.15(c) and set out the
previous, non-PPA-compliant vesting schedule (the “Pre-PPA Schedule”) in the
Vesting Schedule Addendum to the Adoption Agreement (notwithstanding that the
Pre-PPA Schedule may be less favorable than the PPA Schedule).  In the event that the Employer elects to also
continue to apply the Pre-PPA Schedule to amounts attributable to contributions
for Plan Years prior to the effective date of the amendment adopting the PPA
Schedule (and notwithstanding that the Pre-PPA Schedule may be less favorable
than the PPA Schedule), the Employer will likewise reflect that election in the
Vesting Schedule Addendum to the Adoption Agreement.

 

 

The CORPORATEplan for
RetirementSM

 

ADDENDUM

 

RE: Code Sections 401(k) and 415 2007 Final Regulations

 

Katrina Emergency Tax Relief Act of 2005 and

 

Gulf Opportunity Zone Act of 2005

 

Amendments for
Fidelity Basic Plan Document No. 02

 

PREAMBLE

 

Adoption and Effective Date of Amendment.  This amendment of the Plan is adopted to
reflect the final regulations under Internal Revenue Code (Code) sections 401(k) and
415 and to reflect amendments to the Code pursuant to the Katrina Emergency Tax
Relief Act (“KETRA”) and the Gulf Opportunity Zone Act of 2005 (“GOZA”).  This amendment is intended as good faith
compliance with the requirements of Code sections 401(k), 415, KETRA, and GOZA
and is to be construed in accordance with guidance issued thereunder.  This amendment shall be effective as
described below.

 

Supersession of Inconsistent Provisions.  This amendment shall supersede the provisions
of the Plan to the extent those provisions are inconsistent with the provisions
of this amendment.

 

6.               The first
paragraph of Section 2.01(j) is hereby amended in its entirety,
effective for Plan Years and Limitation Years beginning on and after July 1,
2007, to provide as follows:

 

(j)    “Compensation” (subject to
adjustments thereto in Section 6.12(d) for purposes of Section 6.12
and in Section 5.02 for purposes of Section 5.02) means wages as
defined in Code Section 3401(a) (for purposes of income tax
withholding at the source) plus amounts that would be included in wages but for
an election under Code Section 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B),
402(k), or 457(b) and all other payments of compensation to an Eligible
Employee by the Employer (in the course of the Employer’s trade or business)
for services to the Employer while employed as an Eligible Employee for which
the Employer is required to furnish the Eligible Employee a written statement
under Code Sections 6041(d), 6051(a)(3) and 6052.  Compensation must be determined without
regard to any rules under Code Section 3401(a) that limit the
remuneration included in wages based on the nature or location of the
employment or the services performed (such as the exception for agricultural
labor in Code Section 3401(a)(2)). 
Notwithstanding anything to the contrary herein, however, severance amounts
paid after severance from employment shall be excluded from Compensation.

 

(c)          For purposes of this Section 2.01(j),
“severance amounts” are any amounts paid after severance from employment,
except a payment of regular compensation for services during the Eligible
Employee’s regular working hours, or compensation 

 

1

 

for
services outside the Eligible Employee’s regular working hours (such as
overtime or shift differential), commissions, bonuses, or other similar
payments provided such payment would have been made prior to a severance from
employment if the Eligible Employee had continued in employment with the
employer, provided such amounts are paid by the later of (A) 2-1/2 months
after or (B) the end of the Limitation Year that includes the date of the
Eligible Employee’s severance from employment with the employer (as defined in
applicable guidance).

 

(2)          For purposes of this Section 2.01(j), an
Eligible Employee has a “severance from employment” when the Eligible Employee
ceases to be an employee of the employer maintaining the plan, and an Eligible
Employee does not have a “severance from employment” if, in connection with a
change of employment, the individual’s new employer maintains such plan with
respect to the individual.  The
determination of whether an Eligible Employee ceases to be an employee of the
employer maintaining the plan is based on all of the relevant facts and
circumstances.

 

7.               The final
sentence of the third paragraph of Section 2.01(j) is hereby amended,
in its entirety, effective for Plan Years and Limitation Years beginning on and
after July 1, 2007, to provide as follows:

 

Compensation
is treated as paid on a date if it is actually paid on that date or it would
have been paid on that date but for an election under section 125, 132(f)(4),
401(k), 403(b), 408(k), 408(p)(2)(A)(i), or 457(b).

 

8.               The first
paragraph of Section 5.02 is hereby amended, effective for Plan Years
beginning on and after July 1, 2007, to provide as follows:

 

5.02        Compensation
Taken into Account in Determining Contributions.  In determining the amount or
allocation of any contribution that is based on Compensation, only Compensation
paid to a Participant for services rendered to the Employer while employed as
an Eligible Employee shall be taken into account.  Except as otherwise specifically provided in
this Article 5, for purposes of determining the amount and allocation of
contributions under this Article 5, Compensation shall not include
reimbursements or other expense allowances, fringe benefits (cash and non-cash)
moving expenses, deferred compensation, welfare benefits, and any items elected
by the Employer with respect to such contributions in Subsection 1.05(a) or
(b), as applicable, of the Adoption Agreement.

 

9.               Section 6.12(d) is
hereby amended in its entirety, effective for Limitation Years beginning on and
after July 1, 2007, to provide as follows:

 

(d)   Adjustments to Compensation:  Compensation for purposes of this Section 6.12
shall:

 

i.                              be based on the
amount actually paid or made available to the Participant (or, if earlier,
includible in the gross income of the Participant) during the Limitation Year;

 

2

 

ii.                           include amounts paid by the
later of (A) 2-1/2 months after or (B) the end of the Limitation Year
that includes the date of the Participant’s severance from employment (as
defined in  Section 2.01(j)) with
the employer if such amounts are either payments for unused accrued bona fide
sick, vacation, or other leave (but only if the Eligible Employee would have
been able to use the leave if employment had continued), or received by a
Participant pursuant to a nonqualified unfunded deferred compensation plan, but
only if the payment would have been paid to the Participant at the same time if
the Participant had continued in employment with the employer and only to the
extent that the payment is includible in the Participant’s gross income;

 

iii.                        include amounts that
otherwise would be excluded as “severance amounts” if such amounts are paid to
an individual who does not currently perform services for the employer because
of qualified military service (as used in Code Section 414(u)(1)) to the
extent those amounts do not exceed the amounts the individual would have
received if the individual had continued to perform services for the employer
rather than entering qualified military service or to a Participant who is
permanently and totally disabled;

 

iv.                       include amounts earned
during the Limitation Year but not paid during that Limitation Year solely
because of the timing of pay periods and pay dates, provided

 

1.                           such amounts
are paid during the first few weeks of the next Limitation Year;

2.                           such amounts
are included on a uniform and consistent basis with respect to all similarly
situated Participants; and

3.                           no such amounts
are included in more than one Limitation Year.

 

In
addition, for Limitation Years beginning on or after July 1, 2007,
Compensation for purposes of this Section 6.12 shall not reflect
compensation for a year greater than the limit under Code Section 401(a)(17)
that applies to that year.

 

10.         A new Section 6.12(f) and a new Section 6.12(g) are
hereby added to the end of Section 6.12, effective for Limitation Years
beginning on and after July 1, 2007, to provide as follows:

 

(f)            Anything herein to the contrary notwithstanding, in
correcting an “excess 415 amount” in a Limitation Year beginning on or after July 1,
2007, the Employer may use any appropriate correction under the Employee Plans
Compliance Resolution System, or any successor thereto.

 

(g)         Restorative payments allocated to a Participant’s
Account, which include payments made to restore losses to the Plan resulting
from actions (or a failure to act) by a fiduciary for which there is a
reasonable risk of liability under Title I of ERISA or under other applicable
federal or state law, where similarly situated Participants are similarly
treated do not give rise to an “annual addition” for any Limitation Year.

 

3

 

11.         The following language is hereby added to the end of
Section 9.07, effective August 25, 2005, to provide as follows:

 

Notwithstanding
anything herein to the contrary, however, the Employer may suspend the
obligation of a Qualified Individual defined in Section 10.09(b)(1) to
repay a Plan loan for any period beginning with the QHD Effective Date defined
in Section 10.09(c)(1) and ending not later than December 31,
2006 (the “suspension period”).  With
respect to a Qualified Individual defined in Section 10.09(b)(2) or
(3), his suspension period shall begin no earlier than the QHD Effective Date
applicable to such Qualified Individual as provided in Section 10.09(c)(2) or
(3) and ending not later than December 31, 2006, provided that such
suspension period shall not last beyond one year.  The loan repayments must resume upon the end
of the suspension period, and the term of the loan will be extended by the
duration of the suspension period. 
Interest accruing during the suspension period shall be added to the
remaining principal of the loan.  The
Qualified Individual shall repay the loan thereafter by amortization in
substantially level installments over the remaining period of the loan.

 

12.         A new Section 10.09 is hereby added to Article 10,
effective August 25, 2005, to provide as follows:

 

10.09              Qualified Hurricane Distributions.  Qualified Individuals (as defined in
subsection (b) below) may designate all or a portion of a qualifying
distribution as a Qualified Hurricane Distribution (as defined in subsection (a) below).

 

(a)          A “Qualified Hurricane Distribution” means any
distribution made on or after the QHD Effective Date (as defined in subsection (c) below)
and before January 1, 2007 to a Qualified Individual, to the extent that
such distribution, when aggregated with all other Qualified Hurricane
Distributions to the Qualified Individual made under the Plan (and under any
other plan maintained by the Employer or a Related Employer), does not exceed
$100,000.  A Qualified Hurricane
Distribution must be made in accordance with and pursuant to the distribution
provisions of the Plan, except that:

 

(1)                                  A Qualified Hurricane
Distribution of amounts attributable to Nonelective Employer Contributions,
Deferral Contributions and Qualified Nonelective Employer contributions shall
be deemed to be made after the occurrence of any distributable events otherwise
applicable under Code section 401(k)(2)(B)(i), such as termination of
employment (and shall be deemed permissible under Section 12.01), and

 

(2)                                  The requirements of Code
sections 401(a)(31), 402(f) and 3405 and Section 13.04 shall not
apply.

 

(b)         A “Qualified Individual” is an individual whose
principal place of abode on

 

4

 

(1)                                  August 28, 2005, is
located in the Hurricane Katrina disaster area (as defined in Code section
1400M(2))and who has sustained an economic loss by reason of Hurricane Katrina;

 

(2)                                  September 23, 2005, is
located in the Hurricane Rita disaster area (as defined in Code section
1400M(4)) and who has sustained an economic loss by reason of Hurricane Rita;
or

 

(3)                                  October 23, 2005, is
located in the Hurricane Wilma disaster area (as defined in Code section
1400M(6)) and who has sustained an economic loss by reason of Hurricane Wilma.

 

(c)          The QHD Effective Date is

 

(1)                                  August 25, 2005, with
respect to a Qualified Individual described in subsection (b)(1) above;

 

(2)                                  September 23, 2005,
with respect to a Qualified Individual described in subsection (b)(2) above;
and

 

(3)                                  October 23, 2005, with
respect to a Qualified Individual described in subsection (b)(3) above.

 

(d)         Provided the Plan permits rollover contributions, a
Participant who received a Qualified Hurricane Distribution may repay to the
Plan the Qualified Hurricane Distribution, provided such Qualified Hurricane
Distribution is eligible for tax-free rollover treatment.  Any such re-contribution will be treated as
having been made in a direct rollover to the Plan, must be made during the
three-year period beginning on the day after the date on which such
distribution was received and cannot exceed the amount of such distribution.

 

5

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