Document:

Exhibit 10.13(a)

 

ATLANTIC
SOUTHEAST AIRLINES, INC.

INVESTMENT SAVINGS PLAN

 

THIS
INDENTURE is made on February 26, 2002, by ATLANTIC SOUTHEAST AIRLINES, INC.,
a corporation duly organized and existing under the laws of the State of
Georgia (hereinafter called the “Primary Sponsor”).

 

W  I
T  N  E  S  S  E  T  H:

 

WHEREAS,
the Primary Sponsor originally established the Atlantic Southeast Airlines, Inc.
Investment Savings Plan, effective October 1, 1984 (the “Plan”), and last
amended and restated the Plan by indenture effective January 1, 1989; and

 

WHEREAS, the Primary Sponsor now wishes to amend and
restate the Plan primarily to comply with and make changes permitted by the
provisions of the General Agreement on Trade and Tariffs, the Small Business
Job Protection Act of 1996, the Taxpayer Relief Act of 1997 and the Community
Renewal Tax Relief Act of 2000; and

 

WHEREAS,
the Plan is intended to be a profit sharing plan within the meaning of Treasury
Regulations Section 1.401-1(b)(1)(ii) and also contains a cash or deferred
arrangement as described in Section 401(k) of the Internal Revenue Code of
1986; and

 

WHEREAS,
the provisions of the Plan, as amended and restated herein, shall apply to Plan
Years beginning after January 1, 1997, except to the extent the provisions
are required to apply at an earlier date or to any other members to comply with
applicable law;

 

NOW,
THEREFORE, the Primary Sponsor does hereby amend and restate the Plan in its
entirety, generally effective as of January 1, 1997, except as otherwise
provided herein, to read as follows:

 

 

ATLANTIC
SOUTHEAST AIRLINES, INC.

INVESTMENT SAVINGS PLAN

 

	
   

  	
   

  	
  PAGE

  
	
  ARTICLE 1

  	
  DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  ELIGIBILITY

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
  CONTRIBUTIONS

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICE 4

  	
  ALLOCATIONS

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  INDIVIDUAL FUNDS AND INVESTMENTS OF TRUST ASSETS

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  PLAN LOANS

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
  WITHDRAWALS DURING EMPLOYMENT

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  PAYMENT OF BENEFITS ON TERMINATION OF EMPLOYMENT

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  PAYMENT OF BENEFITS OF RETIREMENT OR DISABILITY

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  DEATH BENEFITS

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
  GENERAL RULES ON DISTRIBUTIONS

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
  ADMINISTRATION OF THE PLAN

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13

  	
  CLAIM REVIEW PROCEDURE

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14

  	
  INCOMPETENT DISTRIBUTEE AND UNCLAIMED PAYMENTS

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15

  	
  PROHIBITION AGAINST DIVERSION

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16

  	
  LIMITATION OF RIGHTS

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE 17

  	
  AMENDMENT TO OR TERMINATION OF THE PLAN AND THE TRUST

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE 18

  	
  ADOPTION OF PLAN BY AFFILIATES

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE 19

  	
  QUALIFICATION AND RETURN OF CONTRIBUTIONS

  	
  35

  
	
   

  	
   

  	
   

  
	
  ARTICLE 20

  	
  INCORPORATION OF SPECIAL LIMITATIONS

  	
  35

  
	
   

  	
   

  	
   

  
	
  APPENDIX A

  	
  LIMITATION ON ALLOCATIONS

  	
  A-37

  
	
   

  	
   

  	
   

  
	
  APPENDIX B

  	
  TOP-HEAVY PROVISIONS

  	
  B-1

  
	
   

  	
   

  	
   

  
	
  APPENDIX C

  	
  SPECIAL NONDISCRIMINATION RULES

  	
  C-1

  

 

 

ARTICLE 1

DEFINITIONS

 

Wherever
used herein, the masculine pronoun shall be deemed to include the feminine, and
the singular to include the plural, unless the context clearly indicates
otherwise and the following words and phrases shall, when used herein, have the
meanings set forth below:

 

1.1           “Account”
means a Participant’s aggregate balance in the following accounts, as adjusted
pursuant to the Plan as of any given date:

 

(a)           “Deferred
Account” which shall reflect a Participant’s interest in contributions made
by a Plan Sponsor under Section 3. 1.

 

(b)           “Matching
Account” which shall reflect a Participant’s interest in matching
contributions made by a Plan Sponsor under Section 3.2.

 

(c)           “Rollover
Account” which shall reflect a Participant’s interest in contributions made
by a Plan Sponsor under Section 3.4.

 

In addition, the Plan
Administrator shall allocate the interest of a Participant in any funds
transferred to the Plan in a trust-to-trust transfer (other than Rollover
Amounts) or pursuant to the merger of another tax-qualified retirement plan
with the Plan among the above accounts as the Plan Administrator determines
best reflects the interest of the Participant.

 

1.2           “Affiliate”
means

 

(a)           any
corporation which is a member of the same controlled group of corporations
(within the meaning of Code Section 414(b)) as is a Plan Sponsor;

 

(b)           any other
trade or business (whether or not incorporated) under common control (within
the meaning of Code Section 414(c)) with a Plan Sponsor;

 

(c)           any other
corporation, partnership or other organization which is a member of an affiliated
service group (within the meaning of Code Section 414(m)) with a Plan
Sponsor; and

 

(d)           any other
entity required to be aggregated with a Plan Sponsor pursuant to regulations
under Code Section 414(o). Notwithstanding the foregoing, for purposes of
applying the limitations set forth in Appendix A and for purposes of
determining Annual Compensation under Appendix A, the references to Code
Sections 414(b) and (c) above shall be as modified by Code Section 415(h).

 

1.3           “Annual
Compensation” means wages within the meaning of Code Section 3401(a) (for
purposes of income tax withholding at the source) and all other compensation
paid to an Employee by a Plan Sponsor and Affiliates during a Plan Year for
which the Plan Sponsor

 

A-1

 

or an Affiliate, to the
extent applicable, is required to furnish the Employee a written statement
under Code Sections 6041(d), 6051(a)(3) and 6052, to the extent not in
excess of the Annual Compensation Limit for all purposes under the Plan except
for purposes of determining who are Highly Compensated Employees. Notwithstanding
the above, Annual Compensation shall be determined as follows:

 

(a)           for
purposes of determining, with respect to each Plan Sponsor, the amount of
contributions made by or on behalf of an Employee under Section 3.1 and
allocations under Section 4.1(a), Annual Compensation shall only include
amounts received for the portion of the Plan Year during which the Employee was
a Participant;

 

(b)           for
purposes of determining with respect to each Plan Sponsor, the amount of
contributions made by or on behalf of an Employee under Section 3.2 and
allocations under Section 4.1(b), and for purposes of applying the
provisions of Appendix C hereto for such Plan Years as the Secretary of the
Treasury may allow, Annual Compensation shall not be limited to amounts
received for the portion of the Plan Year during which the Employee was a
Participant;

 

(c)           for
purposes of determining the amount of contributions under Plan Section 3
and allocations under Plan Section 4 made by or on behalf of an Employee,
Annual Compensation shall not include reimbursements of pilot flight training
expenses;

 

(d)           for all
purposes under the Plan, except as provided in Subsection (e) of this
Section, Annual Compensation shall include any amount which would have been
paid during a Plan Year, but was contributed by a Plan Sponsor on behalf of an
Employee pursuant to a salary reduction agreement which is not includable in
the gross income of the Employee under Code Sections 125, 402(g)(3), 457 and,
effective on January 1, 2001, Section 132(f)(4); and

 

(e)           effective
until December 31, 1997, for purposes of applying the annual addition
limits in Appendix A, Annual Compensation shall not include the amounts described
in Subsection (d).

 

1.4           “Annual
Compensation Limit” means $150,000, which amount may be adjusted in
subsequent Plan Years based on changes in the cost of living as announced by
the Secretary of the Treasury.

 

1.5           “Beneficiary”

 

(a)           A
Participant’s Beneficiary is the person or trust that a Participant designated
most recently in writing to the Plan Administrator on such form and in
such manner as is reasonably required by the Plan Administrator. Except as
outlined in Subsection (c) below, a Participant may change his
Beneficiary at any time by providing a new written election to the Plan
Administrator on such form and in such manner as is reasonably required by
the Plan Administrator.

 

A-2

 

(b)           If the
Participant has failed to make a designation, no person designated is alive, no
trust has been established, or no Beneficiary or successor Beneficiary has been
designated who is alive, the term “Beneficiary” means:

 

(1)           the
Participant’s spouse; or

 

(2)           if
no spouse is alive, the Participant’s estate.

 

(c)           Nonspouse
Beneficiaries

 

(1)           Notwithstanding
the foregoing, the spouse of a married Participant shall be his Beneficiary
unless that spouse has consented in writing to the designation by the
Participant of some other person or trust and the spouse’s consent acknowledges
the effect of the designation and is witnessed by a notary public or a Plan
representative.

 

(2)           A
Participant may change his designation of a nonspouse beneficiary at any
time. However, a Participant may not change his designation without
further consent of his spouse unless the spouse’s consent permits designation
of another person or trust without further spousal consent and acknowledges
that the spouse has the right to limit consent to a specific beneficiary and
that the spouse voluntarily relinquishes this right.

 

(3)           The spouse’s
consent shall not be required if the Participant establishes to the
satisfaction of the Plan Administrator that

 

(A)          the
spouse cannot be located,

 

(B)           the
Participant has a court order indicating that he is legally separated or has
been abandoned (within the meaning of local law) unless a “qualified domestic
relations order” (as defined in Code Section 414(p)) provides otherwise,
or

 

(C)           there are
other circumstances as the Secretary of the Treasury prescribes.

 

If the
spouse is legally incompetent to give consent, consent by the spouse’s legal
guardian shall be deemed to be consent by the spouse.

 

(d)           If,
subsequent to the death of a Participant, the Participant’s Beneficiary dies
while entitled to receive benefits under the Plan, the successor Beneficiary,
if any, or the Beneficiary listed under Subsection (b)(1) or, if no
spouse is alive, Subsection (b)(2) shall be the Beneficiary.

 

1.6           “Board
of Directors” means the Board of Directors of the Primary Sponsor.

 

A-3

 

1.7           “Break
in Service” means the failure of an Employee, in connection with a
Termination of Employment other than by reason of death, Disability, or
attainment of a Retirement Date, to complete more than 500 Hours of Service in
any Plan Year.

 

1.8           “Code”
means the Internal Revenue Code of 1986, as amended.

 

1.9           “Deferral
Amount” means a contribution of a Plan Sponsor on behalf of a Participant
pursuant to Section 3.1.

 

1.10         “Delta
Stock” means the common stock, par value $1.50 per share, of Delta Airlines, Inc.

 

1.11         “Delta
Stock Fund” means the Individual Fund under the Plan created to hold shares
of Delta Stock.

 

1.12         “Direct
Rollover” means a payment by the Plan to the Eligible Retirement Plan
specified by the Distributee.

 

1.13         “Disability”
means a disability of a Participant within the meaning of Code Section 72(m)(7),
to the extent that the Participant is, or would be, entitled to disability
retirement benefits under the federal Social Security Act or to the extent that
the Participant is entitled to recover benefits under any long term disability
plan or policy maintained by the Plan Sponsor. The determination of whether or
not a Disability exists shall be determined by the Plan Administrator and shall
be substantiated by competent medical evidence.

 

1.14         “Distributee”
means an Employee or former Employee. In addition, the Employee’s or former
Employee’s surviving spouse and the Employee’s or former Employee’s spouse or
former spouse who is the alternate payee under a qualified domestic relations
order (as defined in Code Section 414(p)), are Distributees with regard to
the interest of the spouse or former spouse.

 

1.15         “Elective
Deferrals” means, with respect to any taxable year of the Participant, the
sum of

 

(a)           any
Deferral Amounts;

 

(b)           any
contributions made by or on behalf of a Participant under any other qualified
cash or deferred arrangement as defined in Code Section 401(k), whether or
not maintained by a Plan Sponsor, to the extent such contributions are not or
would not, but for Code Section 402(g)(1) be included in the
Participant’s gross income for the taxable year; and

 

(c)           any other
contributions made by or on behalf of a Participant pursuant to Code Section 402(g)(3).

 

A-4

 

1.16         “Eligibility
Service” means

 

(a)           for the
period beginning January 1, 1997 and ending September 30, 2000, a
twelve-consecutive-month period during which the Employee completes no less
than 1,000 Hours of Service beginning on the date on which the Employee first
performs an Hour of Service upon his employment or reemployment with the Plan
Sponsor or, in the event the Employee fails to complete 1,000 Hours of Service
in that twelve-consecutive-month period, any Plan Year thereafter during which
the Employee completes no less than 1,000 Hours of Service, including the Plan
Year which includes the first anniversary of the date the Employee first
performed an Hour of Service upon his employment or reemployment; and

 

(b)           for the
period beginning October 1, 2000, the completion of a
ninety-consecutive-day period beginning on the date on which the Employee first
performs an Hour of Service upon his employment or reemployment with the Plan
Sponsor.

 

1.17         “Eligible
Employee” means any Employee of a Plan Sponsor compensated by a Plan
Sponsor on a salaried basis other than an Employee who is

 

(a)           covered by
a collective bargaining agreement between a union and a Plan Sponsor, provided
that retirement benefits were the subject of good faith bargaining, unless the
collective bargaining agreement provides for participation in the Plan;

 

(b)           a leased
employee within the meaning of Code Section 414(n)(2);

 

(c)           deemed to
be an Employee of a Plan Sponsor pursuant to regulations under Code Section 414(o);

 

(d)           a
non-resident alien (within the meaning of Code Section 7701(b)(1)(B)) who
received no earned income (within the meaning of Code Section 911(d)(2))
from a Plan Sponsor which constitutes income from sources within the United
States (within the meaning of Code Section 861(a)(d)(3)); or

 

(e)           initially
classified by a Plan Sponsor as an independent contractor for federal income
tax purposes for the period of such classification, regardless of any subsequent
determination that any such person should have been characterized as a common
law employee of the Plan Sponsor for such period.

 

1.18         “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 the Distributee’s
Eligible Rollover Distribution. However, in the case of an Eligible Rollover
Distribution to the surviving spouse, an Eligible Retirement Plan is an
individual retirement account or individual retirement annuity.

 

1.19         “Eligible
Rollover Distribution” means any distribution of all or any portion of the
Distributee’s Account, except that an Eligible Rollover Distribution does not
include: any

 

A-5

 

distribution that is one
of a series of substantially equal periodic payments (not less frequently
than annually) made for the life (or life expectancy) of the Distributee or the
joint lives (or joint life expectancies) of the Distributee and the Distributee’s
designated Beneficiary, or for a specified period of ten years or more; any
distribution to the extent such distribution is required under Code Section 401(a)(9);
the portion of any distribution that is not includable in gross income
(determined without regard to the exclusion for net unrealized appreciation
with respect to employer securities); and, effective for distributions made
after December 31, 1999, any hardship distributions of Deferral Amounts
pursuant to Section 7.1.

 

1.20         “Employee”
means any person who is

 

(a)           a common
law employee of a Plan Sponsor or an Affiliate;

 

(b)           a leased
employee within the meaning of Code Section 414(n)(2) with respect to
a Plan Sponsor; or

 

(c)           deemed to
be an employee of a Plan Sponsor pursuant to regulations under Code Section 414(o).

 

For purposes of this
Section, an Employee shall be deemed to be a leased employee within the meaning
of Code Section 414(n)(2) if the individual is a person (other than
an Employee of the recipient) who, pursuant to an agreement between the
recipient and any other person, has performed services for the recipient (or
for the recipient and related persons determined in accordance with Code Section 414(n)(6)),
on a substantially full-time basis for a period of at least one (1) year,
and such services are performed under the primary direction and control of the
service recipient.

 

1.21         “Entry
Date” means (a) for the period beginning January 1, 1997 and
ending on September 30, 2000, January 1 and July 1 of each Plan
Year; and (b) for the period beginning October 1, 2000, “Entry Date”
means January 1, April 1, July 1, and October 1.

 

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

 

1.23         “Fiduciary”
means each Named Fiduciary and any other person who exercises or has any
discretionary authority or control regarding management or administration of
the Plan, any other person who renders investment advice for a fee or has any
authority or responsibility to do so with respect to any assets of the Plan, or
any other person who exercises or has any authority or control respecting
management or disposition of assets of the Plan.

 

1.24         “Fund”
means the amount at any given time of cash and other property held by the
Trustee pursuant to the Plan.

 

A-6

 

1.25         “Highly
Compensated Employee” means, with respect to a Plan Year, each Employee
who:

 

(a)           was at any
time during the Plan Year or the immediately preceding Plan Year an owner of
more than five percent (5%) of the outstanding stock of a Plan Sponsor or
Affiliate or more than five percent (5%) of the total combined voting power of
all stock of a Plan Sponsor or Affiliate;

 

(b)           received
Annual Compensation in excess of $80,000 during the immediately preceding Plan
Year ($85,000 during the immediately preceding Plan Year for Plan Years
beginning on or after January 1, 2000), which amount shall be adjusted for
changes in the cost of living as provided in regulations issued by the
Secretary of the Treasury; or

 

(c)           is a
former Employee who met the requirements of Subsection (a) or (b) at
the time the former Employee separated from service with the Plan Sponsor or an
Affiliate or at any time after the former Employee attained age 55.

 

1.26         “Hour
of Service” means:

 

(a)           Each hour
for which an Employee is paid, or entitled to payment, for the performance of
duties for a Plan Sponsor or any Affiliate during the applicable computation
period, and such hours shall be credited to the computation period in which the
duties are performed;

 

(b)           Each hour
for which an Employee is paid, or entitled to payment, by a Plan Sponsor or any
Affiliate 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 (including disability), layoff, jury
duty, military duty or leave of absence;

 

(c)           Each hour
for which back pay, irrespective of mitigation of damages, is either awarded or
agreed to by a Plan Sponsor or any Affiliate, and such hours shall be credited
to the computation period or periods to which the award or agreement for back
pay pertains rather than to the computation period in which the award,
agreement or payment is made; provided, that the crediting of Hours of Service
for back pay awarded or agreed to with respect to periods described in Subsection (b) of
this Section shall be subject to the limitations set forth in Subsection (f);

 

(d)           Solely for
purposes of determining whether a Break in Service has occurred, each hour
during any period that the Employee is absent from work (1) by reason of
the pregnancy of the Employee, (2) by reason of the birth of a child of
the Employee, (3) by reason of the placement of a child with the Employee
in connection with the adoption of the child by the Employee, or (4) for
purposes of caring for such child for a period immediately following its birth
or placement shall be credited (A) only in the computation period in which
the absence from work begins, if the Employee would be prevented from incurring
a Break in Service in that year solely because of that credit, or (B), in any
other case, in the next following computation period;

 

A-7

 

(e)           Without
duplication of the Hours of Service counted pursuant to Subsection (d) hereof
and solely for such purposes as required pursuant to the Family and Medical
Leave Act of 1993 and the regulations thereunder (the “FMLA”), each hour (as
determined pursuant to the FMLA) for which an Employee is granted leave under
the FMLA (1) for the birth of a child, (2) for placement with the
Employee of a child for adoption or foster care, (3) to care for the
Employee’s spouse, child or parent with a serious health condition, or (4) for
a serious health condition that makes the Employee unable to perform the
functions of the Employee’s job;

 

(f)            The Plan
Administrator shall credit Hours of Service in accordance with the provisions
of Section 2530.200b-2(b) and (c) of the U.S. Department of
Labor Regulations or such other federal regulations as may from time to
time be applicable and determine Hours of Service from the employment records
of a Plan Sponsor or in any other manner consistent with regulations
promulgated by the Secretary of Labor, and shall construe any ambiguities in
favor of crediting Employees with Hours of Service. Notwithstanding any other
provision of this Section, in no event shall an Employee be credited with more
than 501 Hours of Service during any single continuous period during which he
performs no duties for the Plan Sponsor or Affiliate; and

 

(g)           In the
event that a Plan Sponsor or an Affiliate acquires substantially all of the
assets of another corporation or entity or a controlling interest of the stock
of another corporation or merges with another corporation or entity and is the
surviving entity, then service of an Employee who was employed by the prior
corporation or entity and who is employed by the Plan Sponsor or an Affiliate
at the time of the acquisition or merger shall be counted in the manner
provided, with the consent of the Primary Sponsor, in resolutions adopted by
the Plan Sponsor which authorizes the counting of such service.

 

Notwithstanding
the foregoing, solely for purposes of determining Hours of Service for Eligible
Employees who are designated as “flight crew employees,” each hour for which
such an Employee is paid, or entitled to payment, pursuant to this Section while
designated as a “flight crew employee” shall be multiplied by 2.2857.

 

1.27         “Individual
Fund” means individual subfunds of the Fund as may be established by
the Plan Administrator from time to time for the investment of the Fund.

 

1.28         “Investment
Committee” means a committee, which may be established to direct the
Trustee with respect to investments of the Fund.

 

1.29         “Investment
Manager” means a Fiduciary, other than the Trustee, the Plan Administrator,
or a Plan Sponsor, who may be appointed by the Primary Sponsor:

 

(a)           who has
the power to manage, acquire, or dispose of any assets of the Fund or a portion
thereof; and

 

(b)           who

 

A-8

 

(1)           is
registered as an investment adviser under the Investment Advisers Act of 1940;

 

(2)           is a bank
as defined in the Investment Advisers Act of 1940; or

 

(3)           is an
insurance company qualified to perform services described in Subsection (a) above
under the laws of more than one state; and

 

(c)           who has
acknowledged in writing that he is a Fiduciary with respect to the Plan.

 

1.30         “Named
Fiduciary” means only the following:

 

(a)           the Plan
Administrator;

 

(b)           the
Trustee;

 

(c)           the
Investment Committee; and

 

(d)           the
Investment Manager.

 

1.31         “Normal
Retirement Age” means (a) age 65 for all Participants other than those
described in Subsection (b) of this Section, and (b) age 60 for
Participants designated as flight crew employees operating aircraft under FAR Part 121.

 

1.32         “Participant”
means any Employee or former Employee who has become a participant in the Plan
for so long as his vested Account has not been fully distributed pursuant to
the Plan.

 

1.33         “Plan
Administrator” means the organization or person designated to administer
the Plan by the Primary Sponsor and, in lieu of any such designation, means the
Primary Sponsor.

 

1.34         “Plan
Sponsor” means individually the Primary Sponsor and any Affiliate or other
entity which has adopted the Plan and Trust.

 

1.35         “Plan
Year” means the calendar year.

 

1.36         “Retirement
Date” means the date on which the Participant terminates employment on or
after reaching Normal Retirement Age.

 

1.37         “Rollover
Amount” means any amount transferred to the Fund by a Participant, which
amount qualifies as an Eligible Rollover Distribution under Code Section 402(c)(4),
or for rollover treatment under Code Sections 403(a)(4) or
408(d)(3)(A)(ii), and any regulations issued thereunder.

 

A-9

 

1.38         “Termination
Completion Date” means the last day of the fifth consecutive Break in
Service computation period, determined under the Plan Section which
defines Break in Service, in which a Participant completes a Break in Service.

 

1.39         “Termination
of Employment” means the termination of employment of an Employee from all
Plan Sponsors and Affiliates for any reason other than death or attainment of a
Retirement Date. Any absence from active employment of the Plan Sponsor and
Affiliates by reason of an approved leave of absence shall not be deemed for
any purpose under the Plan to be a Termination of Employment. Transfer of an
Employee from one Plan Sponsor to another Plan Sponsor or to an Affiliate shall
not be deemed for any purpose under the Plan to be a Termination of Employment.
In addition, transfer of an Employee to another employer in connection with a
corporate transaction involving a sale of assets, merger or sale of stock,
shall not be deemed to be a Termination of Employment, for purposes of the
timing of distributions under Plan Section 8.1, if the employer to which
such Employee is transferred agrees with the Plan Sponsor to accept a transfer
of assets from the Plan to its tax-qualified plan in a trust-to-trust transfer
meeting the requirements of Code Section 414(l). If the employer to which
such Employee is transferred does not agree to accept a transfer of assets from
the Plan to its tax-qualified Plan, Plan Section 8.6 is applicable in the
event that such Termination of Employment is not a distributable event under
Code Section 401(k)(10)(A).

 

1.40         “Trust”
means the trust established under an agreement between the Primary Sponsor and
the Trustee to hold the Fund or any successor agreement.

 

1.41         “Trustee”
means the trustee under the Trust.

 

1.42         “Valuation
Date” means each day on which the New York Stock Exchange is open for
business or any other day which the Plan Administrator declares to be a
Valuation Date.

 

1.43         “Year
of Vesting Service” means each Plan Year during which an Employee completes
no less than 1,000 Hours of Service. Notwithstanding anything contained herein
to the contrary, Vesting Service shall not include:

 

(a)           In the
case of an Employee who completes five consecutive Breaks in Service for
purposes of determining the vested portion of his Account derived from Plan
Sponsor contributions which accrued before his Termination Completion Date, all
service in Plan Years after his Termination Completion Date.

 

(b)           In the
case of an Employee who completes five consecutive Breaks in Service and at
that time does not have any vested right in Plan Sponsor contributions, all
service before those Breaks in Service commenced.

 

A-10

 

ARTICLE 2

ELIGIBILITY

 

2.1           New
Hires. Each Eligible Employee shall become a Participant as of the Entry
Date coinciding with or next following the date he completes his Eligibility
Service.

 

2.2           Existing
Participants. Each individual who was a Participant on December 31,
1996 shall continue to be a Participant as of January 1, 1997.

 

2.3           Former
Participants Rehired. Each former Participant who is reemployed by a Plan
Sponsor shall become a Participant as of the date of his reemployment as an
Eligible Employee.

 

2.4           Former
Employees Rehired. Each former Employee who completes his Eligibility
Service but terminates employment with a Plan Sponsor before becoming a
Participant shall become a Participant as of the latest of the date he:

 

(a)           is
reemployed;

 

(b)           would have
become a Participant if he had not incurred a Termination of Employment; or

 

(c)           becomes
an Eligible Employee.

 

ARTICLE 3

CONTRIBUTIONS

 

3.1           (a)           Deferral
Amounts. The Plan Sponsor shall make a contribution to the Fund on behalf
of each Participant who is an Eligible Employee and has elected to defer a
portion of Annual Compensation otherwise payable to him for the Plan Year and
to have such portion contributed to the Fund. The election must be made before
the Annual Compensation is payable and may only be made pursuant to an
agreement between the Participant and the Plan Sponsor which shall be in such form and
subject to such rules and limitations as the Plan Administrator may prescribe
and shall specify the percentage of Annual Compensation that the Participant
desires to defer and to have contributed to the Fund. Once a Participant has
made an election for a Plan Year, the Participant may revoke or modify his
election to increase or reduce the rate of future deferrals, as provided in
accordance with the administrative procedures provided by the Plan
Administrator. Any increase or reduction in deferrals will be effective on the
first day of the calendar quarter following the Plan Administrator’s receipt of
the Participant’s request. A Participant may revoke his election and
discontinue his deferrals at any time in accordance with the administrative
procedures provided by the Plan Administrator. The revocation will be effective
for the first payroll period following the Plan Administrator’s receipt of the
Participant’s request. The contribution made by a Plan Sponsor on behalf of a
Participant under this Section 3.1 shall be in one percent (1%)

 

A-11

 

increments
in an amount equal to the amount specified in the Participant’s deferral
agreement, but not in excess of twenty percent (20%) of the Participant’s
Annual Compensation. Pursuant to Section 4 of Appendix C, the Plan
Administrator may restrict the amount which Highly Compensated Employees may defer
under this Section 3.1.

 

(b)           Limits
on Deferral Amounts. Elective Deferrals shall in no event exceed $9,500
(for 1997) in any one taxable year of the Participant, which amount shall be
adjusted for changes in the cost of living as provided by the Secretary of the
Treasury. In the event the amount of Elective Deferrals exceeds $9,500 (for
1997) as adjusted, in any one taxable year then, (1) not later than the
immediately following March 1, the Participant may designate to the
Plan the portion of the Participant’s Deferral Amounts which consist of excess
Elective Deferrals, and (2) not later than the immediately following April 15,
the Plan may distribute the amount designated to it under Paragraph (1) above,
as adjusted to reflect income, gain, or loss attributable to it through the end
of the Plan Year, and reduced by any “Excess Deferral Amounts,” as defined in
Appendix C hereto, previously distributed or recharacterized with respect to
the Participant for the Plan Year beginning with or within that taxable year. The
payment of the excess Elective Deferrals, as adjusted and reduced, from the
Plan shall be made to the Participant without regard to any other provision in
the Plan. In the event that a Participant’s Elective Deferrals exceed $9,500,
as adjusted, in any one taxable year under the Plan and other plans of the Plan
Sponsor and its Affiliates, the Participant shall be deemed to have designated
for distribution under the Plan the amount of excess Elective Deferrals, as
adjusted and reduced, by taking into account only Elective Deferral amounts
under the Plan and other plans of the Plan Sponsor and its Affiliates.

 

3.2           Matching
Contributions. The Plan Sponsor proposes to make contributions to the Fund
with respect to each Plan Year on behalf of each Participant who is an Eligible
Employee entitled to an allocation under Plan Section 4.1(b) in an
amount equal to a percentage, as determined by the Plan Sponsor, of the
Participant’s Annual Compensation deferred by the Participant pursuant to Section 3.1,
to the extent the contribution under Plan Section 3.1 does not exceed six
percent (6%) of his Annual Compensation.

 

3.3           Forfeitures.
Forfeitures shall be used to reduce Plan Sponsor contributions made for the
Plan Year in which the forfeitures arose or the following Plan Year and not to
increase benefits.

 

3.4           Rollover
Contributions. Any Eligible Employee may, with the consent of the Plan
Administrator and subject to such rules and conditions as the Plan
Administrator may prescribe, transfer a Rollover Amount to the Fund;
provided, however, that the Plan Administrator shall not administer this
provision in a manner which is discriminatory in favor of Highly Compensated
Employees.

 

3.5           Form of
Contributions. Contributions may be made only in cash or other
property which is acceptable to the Trustee. In no event will the sum of
contributions under Plan Sections 3.1 and 3.2 exceed the deductible limits
under Code Section 404.

 

A-12

 

3.6           Military
Service. Effective December 12, 1994, notwithstanding any provision of
the Plan to the contrary, contributions, benefits and service credit with
respect to qualified military service will be provided in accordance with Section 414(u)
of the Code.

 

3.7           Corrective
Actions. Notwithstanding any provision of the Plan to the contrary, the
Plan Sponsor may make corrective distributions, contributions, allocations
or other remedial actions as required or permitted to comply with any program
promulgated by the Internal Revenue Service or the U.S. Department of Labor.

 

ARTICLE 4

ALLOCATIONS

 

4.1           (a)           Allocation
of Deferral Amounts. As soon as reasonably practicable following the date
of withholding by the Plan Sponsor, if applicable, and receipt by the Trustee,
Plan Sponsor contributions made on behalf of each Participant under Plan Section 3.1
and Rollover Amounts contributed by the
Participant, shall be allocated to the Deferred Account and
Rollover Account, respectively, of the Participant on behalf of whom the
contributions were made.

 

(b)           Allocation
of Matching Contributions. As of the last day of the Plan Year, Plan
Sponsor contributions made under Section 3.2 and forfeitures used to
reduce Plan Sponsor matching contributions, if any, for a Plan Year shall be
allocated to the Matching Account of each Participant who is employed by a Plan
Sponsor on the last day of the Plan Year who has completed at least 1,000 Hours
of Service during the Plan Year. The matching contribution for each Plan Year,
if any, shall be allocated to each eligible Participant based on his Completed
Years of Service. The matching contribution for each eligible Participant shall
be determined by multiplying the aggregate matching contribution made by the
Plan Sponsor by the ratio of the weighted amount of Deferral Amounts of the
Participant for the Plan Year to the weighted amount of Deferral Amounts of all
Participants for the Plan Year. The weighted amount of Deferral Amounts is
determined by multiplying the Participant’s Deferral Amounts, excluding
Deferral Amounts in excess of six percent (6%) of Annual Compensation, by the
appropriate percentage as provided in the following schedules, as applicable:

 

(i)            for the
period beginning January 1, 1997 and ending July 31, 1998:

 

	
  Completed

  Years of Service

  	
   

  	
  Percentage

  	
   

  
	
  Less than 1

  	
   

  	
  0

  	
  %

  
	
  1

  	
   

  	
  40

  	
  %

  
	
  2

  	
   

  	
  60

  	
  %

  
	
  3

  	
   

  	
  80

  	
  %

  
	
  4 or more

  	
   

  	
  100

  	
  %

  

 

A-13

 

(ii)           for the
period beginning August 1, 1998,

 

	
  Completed

  Years of Service

  	
   

  	
  Percentage

  	
   

  
	
  Less than 1

  	
   

  	
  20

  	
  %

  
	
  2

  	
   

  	
  30

  	
  %

  
	
  3

  	
   

  	
  40

  	
  %

  
	
  4 or more but less than 7

  	
   

  	
  50

  	
  %

  
	
  7 or more

  	
   

  	
  75

  	
  %

  

 

For purposes of the
Section, “Completed Years of Service” means the number of full years from the
Employee’s date of hire to the date on which his vested percentage is being
determined.

 

4.2           Allocation
of Earnings. As of each Valuation Date, the Trustee shall allocate the net
income or net loss of each Individual Fund to each Account in the proportion
that the value of the Account as of the Valuation Date bears to the value of
all Accounts invested in that Individual Fund as of the Valuation Date.

 

ARTICLE 5

INDIVIDUAL FUNDS AND INVESTMENTS OF TRUST ASSETS

 

5.1           Participant
Direction of Contributions. Until such time as the Plan Administrator may direct
otherwise, each Participant may direct the Plan Administrator to invest
contributions to his Account in one or more Individual Funds, including the
Delta Stock Fund, as the Participant shall designate by providing notice to the
Plan Administrator according to the procedures established by the Plan
Administrator for that purpose.

 

(a)           All
investment directions, or changes in investment directions, of contributions
shall be made in multiples of one percent (1%) in accordance with the
procedures established by the Plan Administrator. New investment directions
shall be effective as of the date that such directions are process by the Plan
Administrator in accordance with the procedures established for such purpose.

 

(b)           An
investment direction, once given, shall be deemed to be a continuing direction
until changed as otherwise provided herein. If no direction is effective for
the date a contribution is to be made, all contributions which are to be made
for such date shall be invested in such Individual Fund as the Plan
Administrator, the Investment Manager, the Investment Committee, or the
Trustee, as applicable, may determine. To the extent permissible by law,
no Fiduciary shall be liable for any loss, which results from a Participant’s
exercise or failure to exercise his investment election.

 

5.2           Participant
Directions to Transfer Among Individual Funds. A Participant may elect
according to the procedures established by the Plan Administrator to transfer,
in multiples of one percent (1%), his Account among Individual Funds. An election
under this Section 5.2

 

A-14

 

shall be effective as of
the date that such directions are processed by the Plan Administrator in
accordance with the procedures established for such purpose.

 

5.3           A
Participant who makes an election pursuant to Section 5.1 or Section 5.2
may apply the new investment direction to his current Account, all future
contributions, or both his current Account and all future contributions.

 

5.4           Loan
Fund. A Loan Fund shall be established by the Trustee on behalf of each
Participant for whom a loan is made pursuant to Article 6. The Loan Fund
shall be credited with the amount of any loan made by the Plan to the
Participant and shall be debited with all principal and interest repayments of
any such loans. Under rules established by the Plan Administrator, a
Participant’s interest in the Individual Funds shall be debited by the amount
credited to the Participant’s Loan Fund. All principal and interest repayments
debited to the Loan Fund shall be invested as contributions to the Participant’s
Account pursuant to Section 5.1. Each Loan Fund shall be invested in a
note or notes made by the Participant evidencing the promised repayment of
monies loaned to the Participant from the Fund.

 

5.5           Employer
Securities. The Trustee may acquire and hold shares of Delta Stock and
other “qualifying employer securities” (within the meaning of Code Section 4975(e)(8))
which are (a) shares of common stock issued by the Primary Sponsor or a
corporation which is a member of a controlled group of corporations which
includes the Primary Sponsor (within the meaning of Code Section 1563(a),
determined without regard to Code Sections 1563(a)(4) and (e)(3)(C)),
which are readily tradeable on an established securities market or, if there is
no such common stock, shares of common stock issued by the Primary Sponsor or a
corporation which is a member of a controlled group of corporations which
includes the Primary Sponsor (within the meaning of Code Section 1563(a),
determined without regard to Code Sections 1563(a)(4) and (e)(3)(C)),
which have voting power and dividend rights no less favorable than the voting
power and dividend rights of any other common stock issued by the Primary
Sponsor or the corporation, or (b) shares of noncallable preferred stock
issued by the Primary Sponsor, which are at all times immediately convertible
into stock described in (a) above at a reasonable conversion price.

 

5.6           404(c) Protection.
Each Member’s investment direction to the Plan Administrator with respect to
his Account shall be in a manner compliant with the requirements of ERISA Section 404(c) and
the regulations issued thereunder.

 

ARTICLE 6

PLAN LOANS

 

6.1           Eligible
Individuals. Subject to the provisions of the Plan and the Trust, each
Participant who is an Employee shall have the right, subject to prior approval
by the Plan Administrator, to borrow from the Fund. In addition, each “party in
interest,” as defined in ERISA Section 3(14), who is (a) a
Participant but no longer an Employee, (b) the Beneficiary of a deceased
Participant, or (c) an alternate payee of a Participant pursuant to the
provisions of a “qualified domestic relations order,” as defined in Code Section 414(p),
shall also have the right,

 

A-15

 

subject to prior approval
by the Plan Administrator, to borrow from the Fund; provided, however, that
loans to such parties in interest may not discriminate in favor of Highly
Compensated Employees.

 

6.2           Application.
In order to apply for a loan, a borrower must complete and submit to the Plan
Administrator documents or information required by the Plan Administrator for
this purpose.

 

6.3           Equivalent
Basis. Loans shall be available to all eligible borrowers on a reasonably
equivalent basis which may take into account the borrower’s
creditworthiness, ability to repay, and ability to provide adequate security. Loans
shall not be made available to Highly Compensated Employees, officers or
shareholders of a Plan Sponsor in an amount greater than the amount made
available to other borrowers. This provision shall be deemed to be satisfied if
all borrowers have the right to borrow the same percentage of their interest in
the Participant’s vested Account, notwithstanding that the dollar amount of
such loans may differ as a result of differing values of Participants’
vested Accounts.

 

6.4           Interest
Rate. Each loan shall bear a “reasonable rate of interest” and provide that
the loan be amortized in substantially level payments, made no less frequently
than quarterly, over a specified period of time. A “reasonable rate of interest”
shall be that rate that provides the Plan with a return commensurate with the
interest rates charged by persons in the business of lending money for loans
which would be made under similar circumstances. Notwithstanding the foregoing,
to the extent that any loan interest rate is subject to the provisions of the
Soldiers and Sailors Relief Act of 1940, it shall not exceed six percent (6%)
per annum.

 

6.5           Security.
Each loan shall be adequately secured, with the security for the outstanding
balance of all loans to the borrower to consist of one-half (1⁄2) of the borrower’s
interest in the Participant’s vested Account, or such other security as the
Plan Administrator deems acceptable.

 

6.6           Loan
Limit. Each loan, when added to the outstanding balance of all other loans
to the borrower from all retirement plans of the Plan Sponsor and its Affiliates
which are qualified under Section 401 of the Code, shall not exceed the
least of:

 

(a)           $25,000,
reduced by the excess, if any, of

 

(1)           the
highest outstanding balance of loans made to the borrower from all retirement
plans qualified under Code Section 401 of the Plan Sponsor and its
Affiliates during the one (1) year period immediately preceding the day
prior to the date on which such loan was made, over

 

(2)           the
outstanding balance of loans made to the borrower from all retirement plans
qualified under Code Section 401 of the Plan Sponsor and its Affiliates on
the date on which such loan was made;

 

A-16

 

(b)           one-half
(1⁄2) of the value of the borrower’s interest in the Account attributable to the
Participant’s Deferred Account and Rollover Account (excluding any amounts made
subject to a qualified domestic relations order as defined in Code Section 414(p));
or

 

(c)           the amount
that produces a monthly repayment of principal and interest that equals
twenty-five percent (25%) of the Participant’s monthly salary at the time the
loan is taken.

 

For purposes of this
Section, the value of the Participant’s Account attributable to a Participant’s
Deferred Account and Rollover Account shall be established as of the latest
preceding Valuation Date, or any later date on which an available valuation was
made, and shall be adjusted for any distributions or contributions made through
the date of the origination of the loan.

 

6.7           Loan
Term. Each loan, by its terms, shall be repaid within five (5) years;

 

6.8           Minimum
Amount. Each loan shall be made in an amount of no less than $1,000.

 

6.9           Limit
on Number of Loans. A borrower is permitted to have only one loan existing
under this Plan at any one time and only one loan will be permitted for a
borrower in a twelve-consecutive-month period.

 

6.10         Certain
Leaves of Absence. If a borrower incurs an unpaid leave of absence for a
period of one (1) year or less, the Plan Administrator may freeze the
borrower’s loan status and the loan will be reamortized upon the borrower’s
return to work. In this event, the limitation provided in Section 6.6(c) with
respect to twenty-five percent (25%) of the borrower’s monthly salary will be
waived for purposes of reamortization.

 

6.11         Default.
The loan shall be in default if:  (a) a
borrower fails to make any loan payment when due; (b) a Participant ceases
to be an Employee and is not otherwise a “party in interest” as defined in
ERISA Section 3(14); (c) the vested Account held as security under
the Plan for the borrower will, as a result of an impending distribution or
withdrawal, be reduced to an amount less than the amount of all unpaid
principal and accrued interest then outstanding under the loan; (d) a
borrower makes any untrue representations or warranties in connection with the
obtaining of the loan; or (e) a Participant becomes subject to a
bankruptcy proceeding or the appointment of a receiver. In that event, the Plan
Administrator may take such steps as it deems necessary to preserve the
assets of the Plan (in the case of Subsection (a), after any cure period
allowed by the Plan Administrator, if applicable, not to continue beyond the
last day of the calendar quarter following the calendar quarter in which the
required installment payment was due), including, but not limited to, directing
the Trustee to make a distribution to the borrower of an offset amount (i.e., a
deduction of the unpaid principal sum, accrued interest, and any other
applicable charge under the note evidencing the loan from the Participant’s
Account). To the extent that such distribution of an offset amount in the case
of Subsection (a) would violate the requirements of Section 401(a) or
401(k) (because for example, the deduction would have to be made from the
Participant’s Deferred Account while the Participant is an Employee), the
entire outstanding balance of the loan (including accrued interest) shall be a
deemed distribution as

 

A-17

 

provided in Treasury
Regulations under Code Section 72(p), and thereafter a distribution of an
offset amount may be made at the earliest date legally permissible or
deferred, at the Plan Administrator’s discretion applied on a basis not
discriminating in favor of Highly Compensated Employees, until the borrower
receives another distribution from the Plan. If any part of the
indebtedness under the note evidencing the loan is collected by law or through
an attorney, the borrower shall be liable for attorneys’ fees in an amount
equal to ten percent (10%) of the amount then due and all costs of collection.

 

Notwithstanding the
foregoing, a loan may be satisfied upon a Participant’s Termination of
Employment arising from the Participant’s transfer to another employer (other
than a Plan Sponsor or Affiliate) in connection with a corporate transaction
involving a sale of assets, merger, or sale of stock, by distributing the note
evidencing the debt as part of an Eligible Rollover Distribution if the
trustee, custodian, or administrator for the Eligible Retirement Plan indicates
its willingness to accept such property.

 

6.11         Regulation.
Each loan shall be made only in accordance with regulations and rulings of the
Internal Revenue Service and the Department of Labor and any supplemental loan
procedures established by the Plan Administrator. The Plan Administrator shall
be authorized to administer the loan program of this Section and shall act
in his sole discretion to ascertain whether the requirements of such
regulations and rulings and this Section have been met.

 

ARTICLE 7

WITHDRAWALS DURING EMPLOYMENT

 

7.1           Hardship
Withdrawal. The Trustee shall, upon the direction of the Plan
Administrator, withdraw all or a portion of a Participant’s Deferred Account
consisting of Deferral Amounts (but not earnings thereon) prior to the time
such account is otherwise distributable in accordance with the other provisions
of the Plan; provided, however, that any such withdrawal shall be made only if
the Participant is an Employee and demonstrates that he is suffering from “hardship”
as determined herein. For purposes of this Section, a withdrawal will be deemed
to be an account of hardship if the withdrawal is on account of:

 

(a)           expenses
for medical care described in Code Section 213(d) incurred by the
Participant, his spouse, or any dependents of the Participant (as defined in
Code Section 152) or necessary for these persons to obtain medical care
described in Code Section 213(d);

 

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

 

(d)           payment of
tuition and related educational fees for the next twelve (12) months of
post-secondary education for the Participant, his spouse, children, or
dependents;

 

A-18

 

(e)           the need
to prevent the eviction of the Participant from his principal residence or
foreclosure on the mortgage of the Participant’s principal residence; or

 

(f)            any other
contingency determined by the Internal Revenue Service to constitute an “immediate
and heavy financial need” within the meaning of Treasury Regulations Section 1.401(k)-l(d).

 

7.2           Additional
Hardship Withdrawal Requirements. In addition to the requirements set forth
in Section 7.1, any withdrawal
pursuant to Section 7.1 shall not be in excess of the amount necessary to
satisfy the need determined under Section 7.1 and
shall also be subject to the requirements of either 7.2(a) or 7.2(b).

 

(a)           (1)           The
Participant shall first obtain all withdrawals, other than hardship
withdrawals, and all nontaxable loans currently available under all plans
maintained by the Plan Sponsor;

 

(2)           the Plan
Sponsor shall not permit Elective Deferrals or after-tax employee contributions
to be made to the Plan or any other plan maintained by the Plan Sponsor, for a
period of twelve (12) months after the Participant receives the withdrawal
pursuant to this Section; and

 

(3)           the Plan
Sponsor shall not permit Elective Deferrals to be made to the Plan or any other
plan maintained by the Plan Sponsor for the Participant’s taxable year
immediately following the taxable year of the hardship withdrawal in excess of
the limit under Plan Section 3.1(b) for the taxable year, less the
amount of the Elective Deferrals made to the Plan or any other plan maintained
by the Plan Sponsor for the taxable year in which the withdrawal under this Section occurs.

 

(b)           A hardship
withdrawal shall be permitted only pursuant to the suspension method in Section 7.2(a) and
not pursuant to the certification method in this Section 7.2(b), unless
the Plan Administrator permits a hardship withdrawal pursuant to either Section 7.2(a) or
7.2(b). Under the certification method, a hardship withdrawal is permitted if
the Plan Administrator relies on the Participant’s certification by execution
of a form provided by the Plan Administrator, unless the Plan
Administrator has actual knowledge to the contrary, that the need determined
under Plan Section 6.1 cannot be relieved

 

(1)           through
reimbursement or compensation by insurance or otherwise,

 

(2)           by
reasonable liquidation of the assets of the Participant, his spouse and minor
children, to the extent that the liquidation would not itself cause an
immediate and heavy financial need and to the extent that the assets of the
spouse and minor children are reasonably available to the Participant,

 

A-19

 

(3)           by
cessation of Elective Deferrals, or

 

(4)           by other
distributions or nontaxable (at the time of the distribution) loans from plans
maintained by the Plan Sponsor or any other employer, or by borrowing from
commercial sources on reasonable commercial terms.

 

Such withdrawals shall be
made only in accordance with such other rules, policies, procedures,
restrictions, and conditions as the Plan Administrator may from time to
time adopt. Any determination of the existence of hardship and the amount to be
withdrawn on account thereof shall be made by the Plan Administrator (or such
other person as may be required to make such decisions) in accordance with
the foregoing rules as applied in a uniform and nondiscriminatory
manner; provided that, unless the Participant requests otherwise, any such
withdrawal shall include the amount necessary to pay any federal, state and
local income taxes and penalties reasonably anticipated to result from the
withdrawal. A withdrawal under this Section shall be made in a lump sum to
the Participant.

 

7.3           Account
Transfers to Plans Sponsored by Affiliates. In the event that a Participant
terminates his employment with the Primary Sponsor and is no longer eligible to
receive an allocation under Section 4 hereof and becomes an employee of an
Affiliate, such Participant may elect to transfer the value of his Account
under the Plan to the qualified plan sponsored by such Affiliate. Notwithstanding
the foregoing, a Participant’s Account may not be transferred to the plan
of an Affiliate without the Participant’s voluntary and informed election as
described in Treasury Regulation Section 1.411(d)-4, Q&A-3(b)(1)(i).
Alternatively, the Participant must be provided the opportunity to retain the
benefits, rights, and features protected under Section 411(d)(6) of
the Code with respect to any transferred amounts. The transferred amount shall
be paid in the form of a cash lump-sum payment plus a direct transfer in
kind of any outstanding Participant loans. Such transfer shall be made pursuant
to the procedures established by the Plan Administrator, and may only be
made with the consent of the plan administrator of the plan into which the
transfer is being made.

 

ARTICLE 8

PAYMENT OF BENEFITS ON TERMINATION OF EMPLOYMENT

 

8.1           Eligibility
for Payment. A Participant who has a Termination of Employment shall be
eligible to receive payment of his vested Account as soon as administratively
practicable after the Participant’s Termination of Employment.

 

8.2           Vesting.
That portion of a Participant’s Account in which he is vested at any given time
shall be:

 

(a)           his
Deferred Account and Rollover Account, which shall be fully vested and
nonforfeitable at all times; and

 

(b)           his
Matching Account computed according to the following vesting schedule:

 

A-20

 

	
  Years of

  Vesting Service

  	
   

  	
  Percentage

  Vested

  	
   

  
	
  Less than 1

  	
   

  	
  0

  	
  %

  
	
  1

  	
   

  	
  10

  	
  %

  
	
  2

  	
   

  	
  20

  	
  %

  
	
  3

  	
   

  	
  30

  	
  %

  
	
  4

  	
   

  	
  40

  	
  %

  
	
  5

  	
   

  	
  60

  	
  %

  
	
  6

  	
   

  	
  80

  	
  %

  
	
  7 or more

  	
   

  	
  100

  	
  %

  

 

If a
Participant receives a distribution from these accounts at any time when the
Participant is less than one hundred percent (100%) vested then until the
earlier of the date the Participant forfeits his nonvested Account or the
Participant’s Termination Completion Date, the vested portion of these accounts
of the Participant at any time shall be equal to “X” computed according to the
formula X=P(AB+D)-D. For purposes of the formula, “P” is the vested percentage
at the relevant time, “AB” is the Account balance at the relevant time, and “D”
is the amount of the distribution(s).

 

8.3           Cash-out/Buyback.

 

(a)           The
nonvested portion of the Account of a Participant who has had a Termination of
Employment shall be forfeited as of the earlier of the date the Participant
receives a distribution of the vested portion of his Account or the Participant’s
Termination Completion Date. For such purposes, a Participant who has had a
Termination of Employment and who is not vested in any portion of his Account,
the Participant shall be deemed to have received a distribution of his Account.

 

(b)           If a
Participant who has received (or has been deemed to have received) a
distribution of the vested portion of his Account is reemployed by a Plan
Sponsor or an Affiliate prior to his Termination Completion Date and (1) if
the Participant’s Account was partially vested, and the Participant repays to
the Fund no later than the fifth anniversary of the Participant’s reemployment
by the Plan Sponsor or an Affiliate all of that portion of his vested Account
which was paid to him or (2) if the Participant’s Account was not vested
upon his Termination of Employment, then any portion of his Account which was
forfeited shall be restored effective on the Valuation Date coinciding with or
next following the repayment or the Participant’s reemployment, respectively. The
restoration on any Valuation Date of the forfeited portion of the Account of a
Participant pursuant to the preceding sentence shall be made first from
forfeitures available for allocation on that Valuation Date, to the extent
available, and secondly from contributions by the Plan Sponsor. Only after
restorations have been made shall the remaining net income be available for
allocation under Section 4.

 

8.4           Changes
to Vesting Schedule. If a Plan amendment directly or indirectly changes the
vesting schedule, the vesting percentage for each Participant in his Account
accumulated to

 

A-21

 

the date when the
amendment is adopted shall not be reduced as a result of the amendment. In
addition, any Participant with at least three (3) years of Vesting Service
may irrevocably elect to remain under the pre-amendment vesting schedule with
respect to all of his benefits accrued both before and after the amendment.

 

8.5           Suspension
for Rehires. If a Participant has a Termination of Employment and is
subsequently reemployed by a Plan Sponsor or an Affiliate prior to receiving a
distribution of his Account under the Plan, such Participant shall not be
entitled to a distribution under this Section while he is an Employee.

 

8.6           Suspension
for Nondistributable Events. If a Participant has a Termination of
Employment which is not a distributable event as provided under Code Section 401(k)(10)(A),
the Plan Sponsor is not required to distribute such Participant’s Account to
the Participant prior to the time for distribution as otherwise provided under
the Plan.

 

ARTICLE 9

PAYMENT OF BENEFITS ON RETIREMENT OR DISABILITY

 

9.1           Eligibility
for Payment. A Participant who has reached a Retirement Date or incurs a
Disability while an Employee shall be eligible to receive payment of his
Account as soon as administratively practicable thereafter.

 

9.2           Vesting.
The Account of a Participant who has reached a Retirement Date, has attained
Normal Retirement Age while employed, or has incurred a Disability while
employed shall be fully vested and nonforfeitable.

 

ARTICLE 10

DEATH BENEFITS

 

10.1         Eligibility
for Payment. If a Participant dies before receiving a distribution of his
vested Account, his Beneficiary shall be eligible to receive payment for the
Participant’s vested Account in a cash lump sum
payment as soon as administratively
practicable following the death of the Participant. If a Participant dies after
beginning to receive a distribution of his vested Account, his Beneficiary
shall continue to receive the undistributed portion of his vested Account in
the form selected by the Participant before his death.

 

10.2         Vesting.
Accounts of deceased Participants shall be vested to the extent provided
pursuant to Article 8 or 9, as applicable. In addition, the Account of a
Participant who dies while an Employee shall be fully vested.

 

A-22

 

ARTICLE 11

GENERAL RULES ON DISTRIBUTIONS

 

11.1         Timing
and Form.

 

(a)           If the
vested Account balance of a Participant or a Beneficiary of a deceased
Participant (in the case of a deceased Participant who did not begin to receive
payment of his vested Account balance before his death) is $3,500 or less
($5,000 effective March 27, 1998), it shall be distributed in one lump sum
as soon as administratively practicable after the Participant or Beneficiary is
eligible for a distribution pursuant to Article 8, 9, or 10, as
applicable.

 

(b)           If the
vested Account balance of a Participant or a Beneficiary of a deceased
Participant (in the case of a deceased Participant who did not begin to receive
payment of his vested Account balance before his death) exceeds $3,500 ($5,000
effective March 27, 1998) and the Participant or Beneficiary is eligible
for a distribution pursuant to Article 8, 9, or 10 as applicable, the
Participant or Beneficiary will receive payment in the form of a lump sum,
unless the Participant elects to receive payment of the Account in one of the
forms listed below as soon as administratively practicable after the
Participant’s or Beneficiary’s written request to the Plan Administrator for
payment of the vested Account balance.

 

(1)           a lump-sum
payment;

 

(2)           payment in
five (5) annual installments; or

 

(3)           payment in
ten (10) annual installments, provided that this form of payment
shall not be available if payment would extend over a period exceeding the life
expectancy of the Participant or the joint lives of the Participant and his
Beneficiary.

 

No distribution of the vested Account balance of such
a Participant will be made without his request before he reaches Normal
Retirement Age.

 

(c)           Payment of
a Participant’s vested Account to the Participant will commence not later than
sixty (60) days after the last day of the Plan Year in which falls the later of
(1) the Participant reaching the earlier of Normal Retirement Age, or (2) the
Participant reaching a Retirement Date or becoming subject to a Disability
while an Employee; provided, however, that the distribution will be made at a
later date specified by the Participant (subject to Section 11.4) if the
Participant requests to delay the distribution. If the amount of the payment
required to commence on the date determined under this Subsection cannot
be ascertained by such date, or if it is not possible to make such payment on
such date because the Plan Administrator has been unable to locate the
Participant after making reasonable efforts to do so, a payment retroactive to
such date

 

A-23

 

may be
made no later than sixty (60) days after the earliest date in which the amount
of such payment can be ascertained for the date on which the Participant is
located.

 

11.2         Adjustments
for Income. Except for installment distributions, Accounts
shall not be adjusted for earnings or losses incurred after the Valuation Date
with respect to which the Account is valued for imminent payout purposes coinciding with or preceding the date of distribution of
the Account. Except as provided in Section 6.11, prior to distribution of
an Account, the Account shall be reduced by the amount necessary to satisfy the
unpaid principal, accrued interest, and penalties on any loan made to the
Participant. Notwithstanding the foregoing, in the event of a plan-to-plan
transfer described in Section 7.3 above, the Account shall not be reduced
by the outstanding loan, but the Account (with the loan intact) shall be
transferred to the recipient plan.

 

11.3         Direct
Rollovers. Notwithstanding any provisions of the Plan to the contrary that
would otherwise limit a Distributee’s election under this Article 11, a
Distributee may elect, at the time and in the manner prescribed by the
Plan Administrator, to have any portion of a distribution pursuant to this Section which
is an Eligible Rollover Distribution paid directly to an Eligible Retirement
Plan specified by the Distributee in a Direct Rollover so long as all Eligible
Rollover Distributions to a Distributee for a calendar year total or are
expected to total at least $200 and, in the case of a Distributee who elects to
directly receive a portion of an Eligible Rollover Distribution and directly
roll the balance over to an Eligible Retirement Plan, the portion that is to be
directly rolled over totals at least $500. If the Eligible Rollover
Distribution is one to which Code Sections 401(a)(11) and 417 do not apply,
such Eligible Rollover Distribution may commence less than thirty (30)
days after the notice required under Treasury Regulations Section 1.411(a)-11(c) is
given, provided that:

 

(a)           the Plan
Administrator clearly informs the Distributee that the Distributee has a right
to a period of at least thirty (30) days after receiving the notice to consider
the decision of whether or not to elect a distribution (and, if applicable, a
particular distribution option), and

 

(b)           the
Distributee, after receiving the notice, affirmatively elects a distribution.

 

11.4         Required
Minimum Distributions. Notwithstanding any other provisions of the Plan,

 

(a)           Prior to
the death of a Participant, all retirement payments hereunder shall

 

(1)           be
distributed to the Participant not later than the required beginning date (as
defined below) or,

 

(2)           be
distributed, commencing not later than the required beginning date (as defined
below) –

 

A-24

 

 

(A)          in
accordance with regulations prescribed by the Secretary of the Treasury, over
the life of the Participant or over the lives of the Participant and his
designated individual Beneficiary, if any, or

 

(B)           in
accordance with regulations prescribed by the Secretary of the Treasury, over a
period not extending beyond the life expectancy of the Participant or the joint
life and last survivor expectancy of the Participant and his designated
individual Beneficiary, if any.

 

(b)           (1)           If
–

 

(A)          the
distribution of a Participant’s retirement payments have begun in accordance
with Subsection (a)(2) of this Section, and

 

(B)           the
Participant dies before his entire vested Account has been distributed to him,

 

then the remaining portion of his vested
Account shall be distributed at least as rapidly as under the method of
distribution being used under Subsection (a)(2) of this Section as
of the date of his death.

 

(2)           If
a Participant dies before the commencement of retirement payments hereunder,
the entire interest of the Participant shall be distributed within five (5) years
after his death.

 

(3)           If
–

 

(A)          any
portion of a Participant’s vested Account is payable to or for the benefit of
the Participant’s designated individual Beneficiary, if any,

 

(B)           that
portion is to be distributed, in accordance with regulations prescribed by the
Secretary of the Treasury, over the life of the designated individual
Beneficiary or over a period not extending beyond the life expectancy of the
designated individual Beneficiary, and

 

(C)           the
distributions begin not later than one (1) year after the date of the
Participant’s death or such later date as the Secretary of the Treasury may by
regulations prescribe,

 

then, for purposes of Paragraph (2) of
this Subsection (b), the portion referred to in Subparagraph (A) of
this Paragraph (3) shall be treated as distributed on the date on which
the distributions to the designated individual Beneficiary begin.

 

(4)           If
the designated individual Beneficiary referred to in Paragraph (3)(A) of
this Subsection (b) is the surviving spouse of the Participant, then
–

 

A-25

 

(A)          the
date on which the distributions are required to begin under Paragraph (3)(C) of
this Subsection (b) shall not be earlier than the date on which the
Participant would have attained age 701⁄2, and

 

(B)           if
the surviving spouse dies before the distributions to such spouse begin, this
Subsection (b) shall be applied as if the surviving spouse were the
Participant.

 

(c)           For
purposes of this Section, the term “required beginning date” means April 1
of the calendar year following the later of the calendar year in which the
Participant attains age 701⁄2 or the calendar year in which the Participant
retires, except that in the case of a person described in Section l(b)(3) of
Appendix B the “required beginning date” shall be April 1 of the calendar
year following the calendar year in which the Participant attains age 701⁄2.  Notwithstanding the foregoing, with respect
to a Participant who attains age 701⁄2 prior to January 1, 2003, such
Participant may elect to receive minimum required distributions in accordance
with Section 401(a)(9) as in effect prior to January 1, 1997,
or, in the alternative, such Participant may elect to defer distribution, in which
event benefits will be paid in accordance with the remaining provisions of the
Plan.

 

(d)           Distributions
will be made in accordance with the regulations under Code Section 401(a)(9),
including the minimum distribution incidental benefit requirement of Treas.
Reg. Section 1.401(a)(9)-2.

 

(e)           Notwithstanding
any provision of the Plan to the contrary, for calendar years beginning on or
after January 1, 2002, distributions will be made in accordance with the
minimum distribution requirements provided in the proposed regulations under
Code Section 401(a)(9) which were issued on January 17,
2001.  This Subsection (e) shall
continue in effect until the end of the last calendar year beginning before the
effective date of final regulations issued under Code Section 401(a)(9) or
such other date as may be specified in guidance published by the Internal
Revenue Service.

 

ARTICLE 12

ADMINISTRATION
OF THE PLAN

 

12.1         Trust
Agreement.  The Primary Sponsor shall
enter into a trust agreement to establish a Trust with the Trustee designated
by the Board of Directors for the management of the Fund, which trust agreement
shall form a part of the Plan and is incorporated herein by reference.

 

12.2         Operation
of the Plan Administrator.  The
Primary Sponsor shall appoint a Plan Administrator.  If an organization is appointed to serve as
the Plan Administrator, then the Plan Administrator may designate in writing
one or more persons who may act on behalf of the Plan Administrator.  If more than one person is so designated with
respect to the same administrative

 

A-26

 

function, a majority of such persons shall constitute a quorum for the
transaction of business and shall have the full power to act on behalf of the
Plan Administrator.  The Primary Sponsor
shall have the right to remove the Plan Administrator at any time by notice in
writing.  The Plan Administrator may
resign at any time by written notice of resignation to the Trustee and the
Primary Sponsor.  Upon removal or
resignation of the plan Administrator, or in the event of the dissolution of
the Plan Administrator, the Primary Sponsor shall appoint a successor.

 

12.3         Fiduciary
Responsibility.

 

(a)           The
Plan Administrator, as a Named Fiduciary, may allocate its fiduciary responsibilities
among Fiduciaries other than the Trustee, designated in writing by the Plan
Administrator and may designate in writing persons other than the Trustee to
carry out its fiduciary responsibilities under the Plan.  The Plan Administrator may remove any person
designated to carry out its fiduciary responsibilities under the Plan by notice
in writing to such person.

 

(b)           The
Plan Administrator and each other Fiduciary may employ persons to perform
services and to render advice with regard to any of the Fiduciary’s
responsibilities under the Plan.  Charges
for all such services performed and advice rendered may be paid by the Fund to
the extent permitted by ERISA.

 

(c)           Each
Plan Sponsor shall indemnify and hold harmless each person constituting the
Plan Administrator or the Investment Committee, except those individuals who
are not a Plan Sponsor or an employee of a Plan Sponsor, from and against any
and all claims, losses, costs, expenses (including, without limitation,
attorney’s fees and court costs), damages, actions or causes of action arising
from, on account of or in connection with the performance by such person of his
duties in such capacity, other than such of the foregoing arising from, on
account of or in connection with the willful neglect or willful misconduct of
such person.

 

12.4         Duties
of the Plan Administrator.

 

(a)           The
Plan Administrator shall advise the Trustee with respect to all payments under
the terms of the Plan and shall direct the Trustee in writing to make such
payments from the Fund; provided, however, in no event shall the Trustee be
required to make such payments if the Trustee has actual knowledge that such
payments are contrary to the terms of the Plan and the Trust.

 

(b)           The
Plan Administrator shall from time to time establish rules, not contrary to the
provisions of the Plan and the Trust, for the administration of the Plan and
the transaction of its business.  All
elections and designations under the Plan by a Participant or Beneficiary shall
be made on forms prescribed by the Plan Administrator.  The Plan Administrator shall have
discretionary authority to construe the terms of the Plan and shall determine
all questions arising in the administration, interpretation and application of
the Plan, including, but not limited to, those concerning eligibility for
benefits and it shall not act so as to discriminate in favor of any
person.  All

 

A-27

 

determinations of the Plan Administrator
shall be conclusive and binding on all Employees, Participants, Beneficiaries
and Fiduciaries, subject to the provisions of the Plan and the Trust and
subject to applicable law.

 

(c)           The
Plan Administrator shall furnish Participants and Beneficiaries with all
disclosures now or hereafter required by ERISA or the Code.  The Plan Administrator shall file, as
required, the various reports and disclosures concerning the Plan and its
operations as required by ERISA and by the Code, and shall be solely
responsible for establishing and maintaining all records of the Plan and the
Trust.

 

(d)           The
statement of specific duties for a Plan Administrator in this Section is
not in derogation of any other duties which a Plan Administrator has under the
provisions of the Plan or the Trust or under applicable law.

 

12.5         Investment
Manager.  The Primary Sponsor may, by
action in writing certified by notice to the Trustee, appoint an Investment
Manager.  Any Investment Manager may be
removed in the same manner in which appointed, and in the event of any removal,
the Investment Manager shall, as soon as possible, but in no event more than
thirty (30) days after notice of removal, turn over all assets managed by it to
the Trustee or to any successor Investment Manager appointed, and shall make a
full accounting to the Primary Sponsor with respect to all assets managed by it
since its appointment as an Investment Manager.

 

12.6         Investment
Committee.  The Primary Sponsor may,
by action in writing certified by notice to the Trustee, appoint an Investment
Committee.  The Primary Sponsor shall
have the right to remove any person on the Investment Committee at any time by
notice in writing to such person.  A
person on the Investment Committee may resign at any time by written notice of
resignation to the Primary Sponsor.  Upon
such removal or resignation, or in the event of the death of a person on the
Investment Committee, the Primary Sponsor may appoint a successor.  Until a successor has been appointed, the
remaining persons on the Investment Committee may continue to act as the Investment
Committee.

 

12.7         Action
by a Plan Sponsor.  Any action to be
taken by a Plan Sponsor shall be taken by persons duly authorized by the Plan
Sponsor, except, subject to Section 17.1, amendments to, termination of,
or termination of a Plan Sponsor’s participation in the Plan or the Trust or
the determination of the basis of any Plan Sponsor contributions, may be made
only to the extent authorized by written resolution or written direction of the
Board of Directors or appropriate governing body.  Nothing herein shall be construed to prohibit
the Board of Directors or appropriate governing body from delegating to any
officer or other appropriate person of a Plan Sponsor the authority to take any
such actions as may be specified in such resolution or written direction.

 

A-28

 

ARTICLE 13

CLAIM
REVIEW PROCEDURE

 

13.1         Notice
of Denial.  If a Participant or
Beneficiary is denied a claim for benefits under a Plan, the Plan Administrator
shall provide to the claimant written notice of the denial within ninety (90)
days after the Plan Administrator receives the claim, unless special
circumstances require an extension of time for processing the claim.  If such an extension of time for processing
is required, written notice of the extension shall be furnished to the claimant
prior to the termination of the initial 90-day period.  In no event shall the extension exceed a
period of ninety (90) days from the end of such initial period.  The extension notice shall indicate the
special circumstances requiring an extension of time and the date by which the
Plan Administrator expects to render the final decision.

 

13.2         Contents
of Notice of Denial.  If a
Participant or Beneficiary is denied a claim for benefits under a Plan, the Plan
Administrator shall provide to such claimant written notice of the denial which
shall set forth:

 

(a)           the
specific reasons for the denial;

 

(b)           specific
references to the pertinent provisions of the Plan on which the denial is
based;

 

(c)           a
description of any additional material or information necessary for the
claimant to perfect the claim and an explanation of why such material or
information is necessary; and

 

(d)           an
explanation of the Plan’s claim review procedures, and the time limits
applicable to such procedures, including a statement of the claimant’s right to
bring a civil action under Sections 502(a) of ERISA following an adverse
benefit determination on review.

 

13.3         Right
to Review.  After receiving written
notice of the denial of a claim or that a domestic relations order is a
qualified domestic relations order, a claimant or his representative shall be
entitled to:

 

(a)           request
a full and fair review of the denial of the claim or determination that a
domestic relations order is a qualified domestic relations order by written
application to the Plan Administrator;

 

(b)           request,
free of charge, reasonable access to, and copies of, all documents, records,
and other information relevant to the claim;

 

(c)           submit
written comments, documents, records, and other information relating to the
denied claim to the Plan Administrator; and

 

A-29

 

(d)           a
review that takes into account all comments, documents, records, and other
information submitted by the claimant relating to the claim, without regard to
whether such information was submitted or considered in the initial benefit
determination.

 

13.4         Application
for Review.  If the claimant wishes
such a review of the decision denying his claim to benefits under the Plan or
if a claimant wishes to appeal a decision that a domestic relations order is a
qualified domestic relations order, the claimant must deliver such written
application to the Plan Administrator within sixty (60) days after receiving
written notice of the denial or notice that the domestic relations order is a
qualified domestic relations order. 
Delivery shall be considered effective only upon actual receipt by the
Plan Administrator.

 

13.5         Hearing.  Upon receiving such written application for
review, the Plan Administrator may schedule a hearing for purposes of
reviewing the claimant’s claim, which hearing shall take place not more than
thirty (30) days from the date on which the Plan Administrator received such
written application for review.

 

13.6         Notice
of Hearing.  At least ten (10) days
prior to the scheduled hearing, the claimant and his representative designated
in writing by him, if any, shall receive written notice of the date, time, and
place of such scheduled hearing.  The claimant or his representative, if
any, may request that the hearing be rescheduled, for his convenience, on
another reasonable date or at another reasonable time or place.

 

13.7         Counsel.  All claimants requesting a review of the
decision denying their claim for benefits may employ counsel for purposes of
the hearing.

 

13.8         Decision
on Review.  No later than sixty (60)
days following the receipt of the written application for review, the Plan
Administrator shall submit its decision on the review in writing to the claimant
and to his representative, if any, unless the Plan Administrator determines
that special circumstances (such as the need to hold a hearing) require an
extension of time, to a day no later than one-hundred twenty (120) days after
the date of receipt of the written application for review.  If the Plan
Administrator determines that the extension of time is required, the Plan
Administrator shall furnish to the claimant written notice of the extension
before the expiration of the initial sixty (60) day period.  The extension notice shall indicate the
special circumstances requiring an extension of time and the date by which the
Plan Administrator expects to render its decision on the review.  In the case of a decision adverse to the
claimant, the decision shall include:

 

(a)           specific
reasons for the decision;

 

(b)           specific
references to the pertinent provisions of the Plan on which the decision is
based;

 

(c)           a
statement that the claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records, and other
information relevant to the claimant’s claim for benefits; and

 

A-30

 

(d)           a
statement of the claimant’s right to bring an action under Section 502(a) of
ERISA.

 

ARTICLE 14

INCOMPETENT
DISTRIBUTEE AND UNCLAIMED PAYMENTS

 

14.1         No
benefit which shall be payable under the Plan to any person shall be subject in
any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge, and any attempt to anticipate, alienate, sell, transfer,
assign, pledge, encumber or charge the same shall be void; and no such benefit
shall in any manner be liable for, or subject to, the debts, contracts,
liabilities, engagements or torts of any person, nor shall it be subject to
attachment or legal process for, or against, such person, and the same shall
not be recognized under the Plan, except to such extent as may be required by
law.  Notwithstanding the above, this Section shall
not apply to a “qualified domestic relations order” (as defined in Code Section 414(p)),
and benefits may be paid pursuant to the provisions of such an order.  The Plan Administrator shall develop
procedures (in accordance with applicable federal regulations) to determine
whether a domestic relations order is qualified, and, if so, the method and the
procedures for complying therewith.  In
addition, a distribution to an “alternate payee” (as defined in Code Section 414(p))
shall be permitted if such distribution is authorized by a qualified domestic
relations order, even if the affected Participant has not yet separated from
service and has not yet reached the “earliest retirement age” (as defined in
Code Section 414(p)).  Unless the
terms of the qualified domestic relations order require otherwise, a
distribution shall be paid to the Alternate Payee, without the Alternate Payee’s
consent, as soon as administratively practicable after the Plan Administrator
determines that the domestic relations order is qualified and nonappealable pursuant
to Article 13.

 

14.2         Exceptions
to Anti-Alienation.  Notwithstanding
any other provision of the Plan, effective August 5, 1997, the benefit of
a Participant shall be subject to legal process and may be assigned, alienated
or attached pursuant to a court judgment or settlement provided:

 

(a)           such
Participant is ordered or required to pay the Plan in accordance with the
following:

 

(1)           a
judgment or conviction for a crime involving the Plan;

 

(2)           a
civil judgment entered by a court in an action brought in connection with a
violation of part 4 of subtitle B of Title I of ERISA; or

 

(3)           a
settlement agreement between such Participant and the Secretary of Labor, in
connection with a violation (or alleged violation) of part 4 of subtitle B of
Title I of ERISA by a fiduciary or any other person; and

 

(b)           the
judgment, order, decree, or settlement agreement shall expressly provide for
the offset of all or part of the amount ordered or required to be paid to the
Plan against such Participant’s benefits under the Plan.

 

A-31

 

14.3         Minors
and Incompetents.  Whenever any
benefit which shall be payable under the Plan is to be paid to or for the
benefit of any person who is then a minor or determined to be incompetent by
qualified medical advice, the Plan Administrator need not require the
appointment of a guardian or custodian, but shall be authorized to cause the
same to be paid over to the person having custody of such minor or incompetent,
or to cause the same to be paid to such minor or incompetent without the
intervention of a guardian or custodian, or to cause the same to be paid to a
legal guardian or custodian of such minor or incompetent if one has been
appointed or to cause the same to be used for the benefit of
such minor or incompetent.

 

14.4         Missing
Participants.  If the Plan
Administrator cannot ascertain the whereabouts of any Participant to whom a
payment is due under the Plan, the Plan Administrator may direct that the
payment and all remaining payments otherwise due to the Participant be
cancelled on the records of the Plan and the amount thereof applied as a
forfeiture in accordance with Plan provisions except that, in the event the
Participant later notifies the Plan Administrator of his whereabouts and
requests the payments due to him under the Plan, the forfeited amount shall be
restored either from Trust income or by a special contribution by the Plan
Sponsor to the Plan, as determined by the Plan Administrator, in an amount
equal to the payment to be paid to the Participants.

 

ARTICLE 15

PROHIBITION
AGAINST DIVERSION

 

At no time shall any part of the Fund be used
for or diverted to purposes other than the exclusive benefit of the
Participants or their Beneficiaries, subject, however, to the payment of all
taxes and administrative expenses and subject to the provisions of the Plan
with respect to returns of contributions. 
Expenses incurred in the administration of the Plan shall be paid from
the Trust, to the extent permitted by ERISA, unless such expenses are paid by
the Plan Sponsor; provided, further, that the Plan Sponsor may be reimbursed by
the Fund, to the extent permitted by ERISA, for Plan expenses originally paid
by the Plan Sponsor.

 

ARTICLE 16

LIMITATION
OF RIGHTS

 

Participation in the Plan shall not give any
Employee any right or claim except to the extent that such right is
specifically fixed under the terms of the Plan. 
The adoption of the Plan and the Trust by any Plan Sponsor shall not be
construed to give any Employee a right to be continued in the employ of a Plan
Sponsor or as interfering with the right of a Plan Sponsor to terminate the
employment of any Employee at any time.

 

A-32

 

ARTICLE 17

AMENDMENT
TO OR TERMINATION OF THE

PLAN AND
THE TRUST

 

17.1         Right
of Primary Sponsor to Amend or Terminate. 
The Primary Sponsor reserves the right at any time to modify or amend or
terminate the Plan or the Trust in whole or in part; provided, however, that
the Primary Sponsor shall have no power to modify or amend the Plan in such
manner as would cause or permit any portion of the funds held under a Plan to
be used for, or diverted to, purposes other than for the exclusive benefit of
Participants or their Beneficiaries, or as would cause or permit any portion of
a fund held under the Plan to become the property of a Plan Sponsor; and
provided further, that the duties or liabilities of the Trustee shall not be
increased without its written consent. 
No such modifications or amendments shall have the effect of
retroactively changing or depriving Participants or Beneficiaries of rights
already accrued under the Plan.  No Plan
Sponsor other than the Primary Sponsor shall have the right to so modify, amend
or terminate the Plan or the Trust. 
Notwithstanding the foregoing, each Plan Sponsor may terminate its own
participation in the Plan and Trust pursuant to the Plan.

 

17.2         Right
of Plan Sponsor to Terminate Participation. 
Each Plan Sponsor other than the Primary Sponsor shall have the right to
terminate its participation in the Plan and Trust by resolution of its board of
directors or other appropriate governing body and notice in writing to the
Primary Sponsor and the Trustee unless such termination would result in the
disqualification of the Plan or the Trust or would adversely affect the exempt
status of the Plan or the Trust as to any other Plan Sponsor.  If contributions by or on behalf of a Plan
Sponsor are completely terminated, the Plan and Trust shall be deemed
terminated as to such Plan Sponsor.  Any
termination by a Plan Sponsor, shall not be a termination as to any other Plan
Sponsor.

 

17.3         Plan
Termination.

 

(a)           If
the Plan is terminated by the Primary Sponsor or if contributions to the Trust
should be permanently discontinued, it shall terminate as to all Plan Sponsors
and the Fund shall be used, subject to the payment of expenses and taxes, for
the benefit of Participants and Beneficiaries, and for no other purposes, and
the Account of each affected Participant shall be fully vested and nonforfeitable,
notwithstanding the provisions of the Section of the Plan which sets forth
the vesting schedule.

 

(b)           In
the event of the partial termination of the Plan, each affected Participant’s
Account shall be fully vested and nonforfeitable, notwithstanding the
provisions of the Section of the Plan which sets forth the vesting
schedule.

 

17.4         Payments
Upon Plan Termination.  In the event
of the termination of the Plan or the Trust with respect to a Plan Sponsor, the
Accounts of the Participants with respect to the Plan as adopted by such Plan
Sponsor shall be distributed in lump sum payments pursuant to the instructions
of the Plan Administrator; provided that the Trustee shall not be required to
make any distribution until it receives a copy of an Internal Revenue Service
determination letter to the effect that the termination does not affect the
qualified status of the Plan or the exempt status of the Trust or, in the event
that such letter is applied for and is not issued, until the Trustee is

 

A-33

 

reasonably satisfied that adequate provision has been
made for the payment of all taxes which may be due and owing by the Trust.

 

17.5         Plan
Merger.  In the case of any merger or
consolidation of the Plan with, or any transfer of the assets or liabilities of
the Plan to, any other plan qualified under Code Section 401, the terms of
the merger, consolidation or transfer shall be such that each Participant would
receive (in the event of termination of the Plan or its successor immediately
thereafter) a benefit which is no less than the benefit which the Participant
would have received in the event of termination of the Plan immediately before
the merger, consolidation or transfer.

 

17.6         Optional
Benefits.  Notwithstanding any other
provision of the Plan, an amendment to the Plan –

 

(a)           which
eliminates or reduces an early retirement benefit, if any, or which eliminates
or reduces a retirement-type subsidy (as defined in regulations issued by the
Department of the Treasury), if any, or

 

(b)           which
eliminates an optional form of benefit (except to the extent otherwise provided
in Treasury Regulations),

 

shall not be effective with respect to benefits attributable to service
before the amendment is adopted.  In the
case of a retirement-type subsidy described in Subsection (a) above,
this Section shall be applicable only to a Participant who satisfies,
either before or after the amendment, the preamendment conditions for the
subsidy.

 

ARTICLE 18

ADOPTION
OF PLAN BY AFFILIATES

 

Any corporation or other business entity
related to the Primary Sponsor by function or operation and any Affiliate, if
the corporation, business entity or Affiliate is authorized to do so by written
direction adopted by the Board of Directors, may adopt the Plan and the related
Trust by action of the board of directors or other appropriate governing body
of such corporation, business entity or Affiliate.  Any adoption shall be evidenced by certified
copies of the resolutions of the foregoing board of directors or governing body
indicating the adoption and by the execution of the Trust by the adopting
corporation, or business entity or Affiliate. 
The resolution shall state and define the effective date of the adoption
of the Plan by the Plan Sponsor and, for the purpose of Code Section 415,
the “limitation year” as to such Plan Sponsor. 
Notwithstanding the foregoing, however, if the Plan and Trust as adopted
by an Affiliate or other corporation or business entity under the foregoing
provisions shall fail to receive the initial approval of the Internal Revenue
Service as a qualified Plan and Trust under Code Sections 401(a) and
501(a), any contributions by the Affiliate or other corporation or business
entity after payment of all expenses will be returned to such Plan Sponsor free
of any trust, and the Plan and Trust shall terminate, as to the adopting
Affiliate or other corporation or business entity.

 

A-34

 

ARTICLE 19

QUALIFICATION
AND RETURN OF CONTRIBUTIONS

 

19.1         Initial
Qualification Failure.  If the Plan
and the related Trust fail to receive the initial approval of the Internal
Revenue Service as a qualified plan and trust within one (1) year after
the date of denial of qualification (a) the contribution of a Plan Sponsor
after payment of all expenses will be returned to a Plan Sponsor free of the
Plan and Trust, (b) contributions made by a Participant shall be returned
to the Participant who made the contributions, and (c) the Plan and Trust
shall thereupon terminate.

 

19.2         Deductibility.  All Plan Sponsor contributions to the Plan
are contingent upon deductibility.  To
the extent permitted by the Code and other applicable laws and regulations
thereunder, upon a Plan Sponsor’s request, a contribution which was made by
reason of a mistake of fact or which was nondeductible under Code Section 404,
shall be returned to a Plan Sponsor within one (1) year after the payment
of the contribution, or the disallowance of the deduction (to the extent
disallowed), whichever is applicable.

 

In the event of a contribution which was made
by reason of a mistake of fact or which was nondeductible, the amount to be
returned to the Plan Sponsor shall be the excess of the contribution above the
amount that would have been contributed had the mistake of fact or the mistake
in determining the deduction not occurred, less any net loss attributable to
the excess.  Any net income attributable
to the excess shall not be returned to the Plan Sponsor.  No return of any portion of the excess shall
be made to the Plan Sponsor if the return would cause the balance in a
Participant’s Account to be less than the balance would have been had the
mistaken contribution not been made.

 

ARTICLE 20

INCORPORATION
OF SPECIAL LIMITATIONS

 

Appendices A, B, and C to the Plan, attached
hereto, are incorporated by reference and the provisions of the same shall
apply notwithstanding anything to the contrary contained herein.

 

[Remainder of page Intentionally
Left Blank]

 

A-35

 

APPENDIX A

LIMITATION
ON ALLOCATIONS

 

SECTION 1

 

The “annual addition” for any Participant for
any one limitation year may not exceed the lesser of:

 

(a)           $30,000,
as adjusted for changes in the cost of living as provided in regulations issued
by the Secretary of the Treasury; or

 

(b)           25%
of the Participant’s Annual Compensation.

 

SECTION 2

 

For the purposes of this Appendix A, the term
“annual addition” for any Participant means for any limitation year, the sum of
certain Plan Sponsor, Affiliate, and Participant contributions, forfeitures,
and other amounts as determined in Code Section 415(c)(2) in effect
for that limitation year.

 

SECTION 3

 

Effective until December 31, 1999, in
the event that a Plan Sponsor or an Affiliate maintains a defined benefit plan
under which a Participant also participates, the sum of the defined benefit
plan fraction and the defined contribution plan fraction for any limitation
year for any Participant may not exceed 1.0.

 

(a)           The
defined benefit plan fraction for any limitation year is a fraction:

 

(1)           the
numerator of which is the projected annual benefit of the Participant under the
defined benefit plan (determined as of the close of such year); and

 

(2)           the
denominator of which is the lesser of

 

(A)          the
product of 1.25, multiplied by the maximum annual benefit allowable under Code Section 415(b)(1)(A),
or

 

(B)           the
product of

 

(i)            1.4,
multiplied by

 

A-36

 

(ii)           the
maximum amount which may be taken into account under Section 415(b)(1)(B) of
the Code with respect to the Participant under the defined benefit plan for the
limitation year (determined as of the close of the limitation year).

 

(b)           The
defined contribution plan fraction for any limitation year is a fraction:

 

(1)           the
numerator of which is the sum of a Participant’s annual additions as of the
close of the year; and

 

(2)           the
denominator of which is the sum of the lesser of the following amounts
determined for the year and for all prior limitation years during which the
Participant was employed by a Plan Sponsor or an Affiliate:

 

(A)          the
product of 1.25, multiplied by the dollar limitation in effect under Code Section 415(c)(1)(A) for
the limitation year (determined without regard to Section 415(c)(6) of
the Code); or

 

(B)           the
product of

 

(i)            1.4,
multiplied by

 

(ii)           the
amount which may be taken into account under Code Section 415(c)(1)(B) (or
Code Section 415(c)(7), if applicable) with respect to the Participant for
the limitation year.

 

SECTION 4

 

For purposes of this Appendix A, the term “limitation
year” shall mean a Plan Year unless a Plan Sponsor elects, by adoption of a
written resolution, to use any other twelve month period adopted in accordance
with regulations issued by the Secretary of the Treasury.

 

SECTION 5

 

For purposes of applying the limitations of this
Appendix A, all defined contribution plans maintained or deemed to be
maintained by a Plan Sponsor shall be treated as one defined contribution plan,
and all defined benefit plans now or previously maintained or deemed to be
maintained by a Plan Sponsor shall be treated as one defined benefit plan.  In the event any of the actions to be taken
pursuant to Section 6 of this Appendix A or pursuant to any language of
similar import in another defined contribution plan are required to be taken as
a result of the annual additions of a Participant exceeding the limitations set
forth in Section 1 of this Appendix A, because of the Participant’s
participation in more than one defined contribution plan, the actions shall be
taken first with regard to this Plan.

 

A-37

 

SECTION 6

 

In the event that as a result of the
allocation of forfeitures to the Account of a Participant, a reasonable error
in estimating the Participant’s Annual Compensation or other similar
circumstances, the annual addition allocated to the Account of a Participant
exceeds the limitations set forth in Section 1 of this Appendix A or in
the event that the aggregate contributions made on behalf of a Participant
under both a defined benefit plan and a defined contribution plan, subject to
the reduction of allocations in other defined contribution plans required by Section 5
of this Appendix A, cause the aggregate limitation fraction set forth in Section 3
of this Appendix A to be exceeded, the Plan Administrator shall, in writing,
direct the Trustee to take such of the following actions as the Plan
Administrator shall deem appropriate, specifying in each case the amount or
amounts of contributions involved:

 

(a)           A
Participant’s annual addition shall be reduced by distributing to the
Participant contributions made by the Plan Sponsor on behalf of the Participant
pursuant to Plan Section 3.1 with respect to which no contribution is made
under Plan Section 3.2;

 

(b)           If
further reduction is necessary, contributions made by the Plan Sponsor on
behalf of the Participant pursuant to Plan Section 3.1 and contributions
of the Plan Sponsor thereon pursuant to Plan Section 3.2 shall be reduced
in the amount of the remaining excess. 
The amount of the reduction under Plan Section 3.1 shall be
distributed to the Participant.  The
amount of the reduction under Plan Section 3.2 shall be reallocated to the
Matching Accounts of Participants who are not affected by the limitation in the
same proportion as the contribution of the Plan Sponsor for the year is
allocated under Plan Section 4.1 to the Accounts of such Participants;

 

(c)           If
further reduction is necessary, forfeitures allocated to the Participant’s
Account shall be reduced by the amount of the remaining excess.  The amount of the reduction shall be
reallocated to the Matching Accounts of Participants who are not affected by
the limitations in the same proportions as the contributions of the Plan
Sponsor for the Plan Year are allocated to the Matching Accounts of such
Participants; and

 

(d)           If
the contribution of the Plan Sponsor and forfeitures would
cause the annual addition to exceed the limitations set forth herein with
respect to all Participants under the Plan, the portion of such contribution in
excess of the limitations shall be segregated in a suspense account.  While the suspense account is maintained, (1) no
Plan Sponsor contributions under the Plan shall be made which would be
precluded by this Appendix A, (2) income, gains and loses of the Fund
shall not be allocated to such suspense account and (3) amounts in the
suspense account shall be allocated in subsequent limitation years as Plan
Sponsor contributions and forfeitures under the Plan as of each Valuation Date
on which Plan Sponsor contributions may be allocated for each such limitation
year until the suspense account is exhausted. 
In the event of the termination of the Plan, the amounts in the suspense
account shall be returned to the Plan

 

A-38

 

Sponsor to the extent that such amounts may
not then be allocated to Participants’ Accounts.

 

A-39

 

APPENDIX B

TOP-HEAVY
PROVISIONS

 

SECTION 1

 

As used in this Appendix B, the following
words shall have the following meanings:

 

(a)           “Determination
Date” means, with respect to any Plan Year, the last day of the preceding
Plan Year, or, in the case of the first Plan Year, means the last day of the
first Plan Year.

 

(b)           “Key
Employee” means an Employee or former Employee (including a Beneficiary of
a Key Employee or former Key Employee) who at any time during the Plan Year
containing the Determination Date or any of the four (4) preceding Plan
Years is:

 

(1)           Was
at any time an officer of the Plan Sponsor or of any Affiliate whose Annual
Compensation was greater than fifty percent (50%) of the amount in effect under
Code Section 415(b)(1)(A) for the calendar year in which the Plan
Year ends, where the term “officer” means an administrative executive in
regular and continual service to the Plan Sponsor or Affiliate; provided,
however, that in no event shall the number of officers exceed the lesser of
Clause (A) or (B) of this Subparagraph (1), where:

 

(A)          equals
fifty (50) Employees; and

 

(B)           equals
the greater of (I) three (3) Employees or (II) ten percent (10%) of the
number of Employees during the Plan Year, with any non-integer being increased
to the next integer.

 

If for any
year no officer of the Plan Sponsor meets the requirements of this Subparagraph
(b), the highest paid officer of the Plan Sponsor for the Plan Year shall be
considered an officer for purposes of this Subparagraph (b)(1);

 

(2)           One
of the ten (10) Employees owning both (A) more than one-half percent
(1⁄2%) of the outstanding stock of the Plan Sponsor or an Affiliate, more than
one-half percent (1⁄2%) of the total combined voting power of all stock of the
Plan Sponsor or an Affiliate, or more than one-half percent (1⁄2%) of the capital
or profits interest in the Plan Sponsor or an Affiliate, and (B) the
largest percentage ownership interests in the Plan Sponsor or any of its
Affiliates, and whose Annual Compensation is equal to or greater than the
amount in effect under Section l(a) of Appendix A to the Plan for the
calendar year in which the Determination Date falls; or

 

B-1

 

(3)           An
owner of more than five percent (5%) of the outstanding stock of the Plan
Sponsor or an Affiliate or more than five percent (5%) of the total combined
voting power of all stock of the Plan Sponsor or an Affiliate; or

 

(4)           An
owner of more than one percent (1%) of the outstanding stock of the Plan
Sponsor or an Affiliate or more than one percent (1%) of the total combined
voting power of all stock of the Plan Sponsor or an Affiliate, and who in such
Plan Year had Annual Compensation from the Plan Sponsor and all of its
Affiliates of more than $150,000.

 

Employees other than Key Employees are
sometimes referred to in this Appendix B, as “non-key employees.”

 

(c)           “Required
Aggregation Group” means:

 

(1)           each
plan of the Plan Sponsor and its Affiliates which qualifies under Code Section 401
(a) in which a Key Employee is a participant, and

 

(2)           each
other plan of the Plan Sponsor and its Affiliates which qualifies under Code Section 401
(a) and which enables any plan described in Subsection (a) of
this Section to meet the requirements of Section 401(a)(4) or
410 of the Code.

 

(d)           (1)           “Top-Heavy”
means:

 

(A)          if
the Plan is not included in a Required Aggregation Group, the Plan’s condition
in a Plan Year for which, as of the Determination Date:

 

(i)            the
present value of the cumulative Accounts under the Plan for all Key Employees
exceeds sixty percent (60%) of the present value of the cumulative Accounts
under the Plan for all Participants; and

 

(ii)           the
Plan, when included in every potential combination, if any, with any or all of:

 

(I)            any
Required Aggregation Group, and

 

(II)           any
plan of the Plan Sponsor which is not part of any Required Aggregation Group
and which qualifies under Code Section 401 (a)

 

is part of a Top-Heavy Group (as defined in
Paragraph (2) of this Subsection); and

 

B-2

 

(B)           if
the Plan is included in a Required Aggregation Group, the Plan’s condition in a
Plan Year for which, as of the Determination Date:

 

(i)            the
Required Aggregation Group is a Top-Heavy Group (as defined in Paragraph (2) of
this Subsection); and

 

(ii)           the
Required Aggregation Group, when included in every potential combination, if
any, with any or all of the plans of the Plan Sponsor and its Affiliates which
are not part of the Required Aggregation Group and which qualify under Code Section 401(a),
is part of a Top-Heavy Group (as defined in Paragraph (2) of this
Subsection).

 

(C)           For
purposes of Subparagraphs (A)(ii) and (B)(ii) of this
Paragraph (1), any combination of plans must satisfy the requirements of
Sections 401(a)(4) and 410 of the Code.

 

(2)           A
group shall be deemed to be a Top-Heavy Group if:

 

(A)          the
sum, as of the Determination Date, of the present value of the cumulative
accrued benefits for all Key Employees under all plans included in such group
exceeds

 

(B)           sixty
percent (60%) of a similar sum determined for all participants in such plans.

 

(3)           (A)          For
purposes of this Section, the present value of the accrued benefit for any
participant in a defined contribution plan as of any Determination Date or last
day of a plan year shall be the sum of:

 

(i)            as
to any defined contribution plan other than a simplified employee pension, the
account balance as of the most recent valuation date occurring within the plan
year ending on the Determination Date or last day of a plan year, and

 

(ii)           as
to any simplified employee pension, the aggregate employer contributions, and

 

(iii)          an
adjustment for contributions due as of the Determination Date or last day of a
plan year.

 

In the case of a plan that is not subject to
the minimum funding requirements of Code Section 412, the adjustment in
Clause (iii) of this Subparagraph (A) shall be the amount of any
contributions actually made after the valuation date but on or before the
Determination Date or last day

 

B-3

 

of the plan year to the extent not included
under Clause (i) or (ii) of this Subparagraph (A); provided, however,
that in the first plan year of the plan, the adjustment in Clause (iii) of
this Subparagraph (A) shall also reflect the amount of any contributions
made thereafter that are allocated as of a date in such first plan year.  In the case of a plan that is subject to the
minimum funding requirements, the account balance in Clause (i) and the
aggregate contributions in Clause (ii) of this Subparagraph (A) shall
include contributions that would be allocated as of a date not later than the
Determination Date or last day of a plan year, even though those amounts are
not yet required to be contributed, and the adjustment in Clause (iii) of
this Subparagraph (A) shall be the amount of any contribution actually
made (or due to be made) after the valuation date but before the expiration of
the extended payment period in Code Section 412(c)(10) to the extent
not included under Clause (i) or (ii) of this Subparagraph (A).

 

(B)           For
purposes of this Subsection, the present value of the accrued benefit for any
participant in a defined benefit plan as of any Determination Date or last day
of a plan year must be determined as of the most recent valuation date which is
within a 12-month period ending on the Determination Date or last day of a plan
year as if such participant terminated as of such valuation date; provided,
however, that in the first plan year of a plan, the present value of the
accrued benefit for a current participant must be determined either (i) as
if the participant terminated service as of the Determination Date or last day
of a plan year or (ii) as if the participant terminated service as of such
valuation date, but taking into account the estimated accrued benefit as of the
Determination Date or last day of a plan year. 
For purposes of this Subparagraph (B), the valuation date must be the
same valuation date used for computing plan costs for minimum funding,
regardless of whether a valuation is performed that year.  The actuarial assumptions utilized in
calculating the present value of the accrued benefit for any participant in a
defined benefit plan for purposes of this Subparagraph (B) shall be
established by the Plan Administrator after consultation with the actuary for
the plan, and shall be reasonable in the aggregate and shall comport with the
requirements set forth by the Internal Revenue Service in Q&A T-26 and T-27
of Regulation Section 1.416-1.

 

(C)           For
purposes of determining the present value of the cumulative accrued benefit
under a plan for any participant in accordance with this Subsection, the
present value shall be increased by the aggregate distributions made with
respect to the participant (including distributions paid on account of death to
the extent they do not exceed the present value of the cumulative accrued
benefit existing immediately prior to death) under each plan being considered,
and under any terminated plan which if it had not been terminated would have
been in a Required Aggregation Group with the Plan, during the 5-year period
ending on the Determination

 

B-4

 

Date or last
day of the plan year that falls within the calendar year in which the
Determination Date falls.

 

(D)          For
purposes of this Paragraph (3), participant contributions which are deductible
as “qualified retirement contributions” within the meaning of Code Section 219
or any successor, as adjusted to reflect income, gains, losses, and other
credits or charges attributable thereto, shall not be considered to be part of
the accrued benefits under any plan.

 

(E)           For
purposes of this Paragraph (3), if any employee is not a Key Employee with
respect to any plan for any plan year, but such employee was a Key Employee
with respect to such plan for any prior plan year, any accrued benefit for such
employee shall not be taken into account.

 

(F)           For
purposes of this Paragraph (3), if any employee has not performed any service
for any Plan Sponsor or Affiliate maintaining the plan during the five-year
period ending on the Determination Date, any accrued benefit for that employee
shall not be taken into account.

 

(G)           (i)            In
the case of an “unrelated rollover” (as defined below) between plans which
qualify under Code Section 401(a), (a) the plan providing the
distribution shall count the distribution as a distribution under Subparagraph (C) of
this Paragraph (3), and (b) the plan accepting the distribution shall not
consider the distribution part of the accrued benefit under this Section; and

 

(ii)           in
the case of a “related rollover” (as defined below) between plans which qualify
under Code Section 401(a), (a) the plan providing the distribution
shall not count the distribution as a distribution under Subparagraph (C) of
this Paragraph (3), and (b) the plan accepting the distribution shall
consider the distribution part of the accrued benefit under this Section.

 

For purposes of this Subparagraph (G), an “unrelated
rollover” is a rollover as defined in Code Section 402(c)(4) or
408(d)(3) or a plan-to-plan transfer which is both initiated by the
participant and made from a plan maintained by one employer to a plan
maintained by another employer where the employers are not Affiliates.  For purposes of this Subparagraph (G), a “related
rollover” is a rollover as defined in Code Section 402(c)(4) or
408(d)(3) or a plan-to-plan transfer which is either not initiated by the
participant or made to a plan maintained by the employer or an Affiliate.

 

B-5

 

SECTION 2

 

(a)           Notwithstanding
anything contained in the Plan to the contrary, except as otherwise provided in
Subsection (b) of this Section, in any Plan Year during which the
Plan is Top-Heavy, allocations of Plan Sponsor contributions and forfeitures for the Plan Year for the Account of each Participant who
is not a Key Employee and who has not separated from service with the Plan
Sponsor prior to the end of the Plan Year shall not be less than three percent
(3%) of the Participant’s Annual Compensation. 
For purposes of this Subsection, an allocation to a Participant’s
Account resulting from any Plan Sponsor contribution attributable to a salary
reduction or similar arrangement shall not be taken into account.

 

(b)           (1)           The
percentage referred to in Subsection (a) of this Section for any
Plan Year shall not exceed the percentage at which allocations are made or
required to be made under the Plan for the Plan Year for the Key Employee for
whom the percentage is highest for the Plan Year.  For purposes of this Paragraph, an allocation
to the Account of a Key Employee resulting from any Plan Sponsor contribution
attributable to a salary reduction or similar agreement shall be taken into
account.

 

(2)           For
purposes of this Subsection (b), all defined contribution plans which are
members of a Required Aggregation Group shall be treated as part of the Plan.

 

(3)           This
Subsection (b) shall not apply to any plan which is a member of a
Required Aggregation Group if the plan enables a defined benefit plan which is
a member of the Required Aggregation Group to meet the requirements of Code Section 401(a)(4) or
410.

 

(4)           If
the Plan Sponsor maintains a defined benefit plan which is qualified under Code
Section 401(a) and which would be Top-Heavy within the meaning of the
Plan for its plan year ending within or coincident with the Plan Year, no
allocation shall be made pursuant to Subsection (a) of this Section on
behalf of any Participant who participates in the defined benefit plan and
acquires a year of service within the meaning of paragraphs (4), (5) and (6) of
Code Section 411(a) under the defined benefit plan for the plan year,
if the defined benefit plan provides generally that the accrued benefit of the
Participant when expressed as an annual retirement benefit shall not, when
expressed as a percentage of the Participant’s Annual Compensation, be less
than the lesser of (A) 2 percent multiplied by the number of such years of
service in plan years during which such plan was Top-Heavy, or (B) twenty
percent (20%).

 

B-6

 

SECTION 3

 

Effective until December 31, 1999, in
any limitation year (as defined in Section 4 of Appendix A to the Plan)
which contains any portion of a Plan Year in which the Plan is Top-Heavy, the
number “1.0” shall be substituted for the number “1.25” in Section 3 of
Appendix A to the Plan.

 

SECTION 4

 

Notwithstanding anything contained in the
Plan to the contrary, in any Plan Year during which the Plan is Top-Heavy, a
Participant’s interest in his Account shall not vest at any rate which is
slower than the following schedule, effective as of the first day of that Plan
Year:

 

	
  Full Years of

  Vesting Service

  	
   

  	
  Percentage

  Vested

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 2

  	
   

  	
  0

  	
  %

  
	
  2

  	
   

  	
  20

  	
  %

  
	
  3

  	
   

  	
  40

  	
  %

  
	
  4

  	
   

  	
  60

  	
  %

  
	
  5

  	
   

  	
  80

  	
  %

  
	
  6 or more

  	
   

  	
  100

  	
  %

  

 

The Schedule set forth above in this Section 4 shall be
inapplicable to a Participant who has failed to perform an Hour of Service
after the Determination Date on which the Plan has become Top-Heavy.  When the Plan ceases to be Top-Heavy, the Schedule set
forth above in this Section 4 shall cease to apply; provided however, that
the provisions of the Plan Section dealing with changes in the vesting schedule shall
apply.

 

B-7

 

APPENDIX C

SPECIAL
NONDISCRIMINATION RULES

 

SECTION 1

DEFINITIONS

 

As used in this Appendix, the following words shall have the following
meanings:

 

(a)           “Actual
Deferral Percentage” shall mean the percentage as determined in Section 2(b) below.

 

(b)           “Actual
Contribution Percentage” shall mean the percentage as determined in Section 5(b) below.

 

(c)           “Eligible
Participant” means a Participant who is an Employee during the Plan Year.

 

(d)           “Highly
Compensated Eligible Participant” means any Eligible Participant who is a
Highly Compensated Employee.

 

(e)           “Matching
Contribution” means any contribution made by a Plan Sponsor to the Employer
Matching Contribution Account and any other contributions made to a plan by a
Plan Sponsor or an Affiliate on behalf of an Employee on account of a
contribution made by the Employee or on account of an Elective Deferral.

 

(f)            “Qualified
Matching Contributions” means Matching Contributions of the Plan Sponsor or
an Affiliate that are immediately nonforfeitable when made, and which may not
be distributed, except upon one of the events described under Code Section 401(k)(2)(B) and
the regulations thereunder.  Such
contributions, if made to the Plan, shall be allocated as described in this
Appendix C to the Qualified Nonelective Employer Contribution Account for each
affected Participant.

 

(g)           “Qualified
Nonelective Contributions” means contributions of the Plan Sponsor or an
Affiliate, other than Matching Contributions or Elective Deferrals that are
immediately nonforfeitable when made, and which may not be distributed, except
upon one of the events described under Code Section 401(k)(2)(B) and
the regulations thereunder.  Such
contributions, if made to the Plan, shall be allocated as described in this
Appendix C to the Qualified Nonelective Employer Contribution Account for each
affected Participant.

 

SECTION 2

ACTUAL
DEFERRAL PERCENTAGE TEST

(a)           In
addition to any other limitations set forth in the Plan, for each Plan Year,
one of the following tests must be satisfied:

 

C-1

 

(1)           The
125 Percent Test.  The Actual
Deferral Percentage for the Highly Compensated Eligible Participants for the
Plan Year must not be more than the Actual Deferral Percentage for all other
Eligible Participants for the Plan Year, multiplied by 1.25.

 

(2)           The
Two Times Test.  The Actual Deferral
Percentage for the Highly Compensated Eligible Participants for the Plan Year
must not be more than the lesser of:

 

(A)          the
Actual Deferral Percentage for all other Eligible Participants for the Plan
Year plus two (2) percentage points; or

 

(B)           the
Actual Deferral Percentage for all other Eligible Participants for the Plan
Year, multiplied by two (2).

 

(b)           The “Actual
Deferral Percentage” for a group of Eligible Participants is equal to the
average of the ratios, calculated separately for each Eligible Participant in
such group, of the Salary Deferral Contributions contributed by the Plan
Sponsor on behalf of the Employee for the Plan Year to the Annual Compensation
of the Employee for the Plan Year.  For purposes
of this calculation:

 

(1)           the
Salary Deferral Contributions for Employees who are not Highly Compensated
Employees that are in excess of the maximum amount permitted under Code Section 401(a)(30)
shall not be taken into account; and

 

(2)           at
the election of the Plan Administrator, all or part of the Qualified Matching
Contributions and Qualified Nonelective Contributions made under the Plan may
be treated as Salary Deferral Contributions, subject to the limitations of
Treasury Regulation Section 1.401(k)-1(b)(5) and any other applicable
regulations promulgated by the Secretary of the Treasury.

 

SECTION 3

DETERMINATION
AND CORRECTION OF EXCESS CONTRIBUTIONS

 

(a)           If the
Salary Deferral Contributions contributed on behalf of the Highly Compensated
Eligible Participants are sufficient to exceed the amount permitted under the
Actual Deferral Percentage test for any Plan Year, such excess amounts shall be
considered to be “Excess Contributions.” 
The Plan Sponsor will determine the amount of Excess Contributions under
Subparagraph (b) below and will determine what share of the Excess
Contributions is attributable to each Highly Compensated Eligible Participant
under Subparagraph (c) below.  The
Plan Sponsor may then implement one or more of the corrective actions discussed
in Subparagraphs (d) and (e) below to resolve the failure of the
Actual Deferral Percentage Test so that it is considered to be passed for the
Plan Year.

 

(b)           Determination
of Total Excess Contributions. For purposes of this Section 3, “Total
Excess Contributions” means, with respect to a Plan Year, the excess of:

 

C-2

 

(1)           the
aggregate amount of Salary Deferral Contributions contributed by a Plan Sponsor
on behalf of Highly Compensated Eligible Participants for the Plan Year, over

 

(2)           the
maximum amount of Salary Deferral Contributions permitted under Section 2
of this Appendix C for the Plan Year, which shall be determined by reducing the
Salary Deferral Contributions contributed on behalf of Highly Compensated
Eligible Participants in order of the actual deferral percentages beginning
with the highest of such percentages.

 

(c)           Allocation
of Total Excess Contributions Attributable Among Highly Compensated Eligible
Participants.  The Excess
Contribution for any Plan Year attributable to a given Highly Compensated
Eligible Participant (for purposes of distribution or reclassification under
Subsections (d) below) shall be determined by the Plan Sponsor as follows:

 

(1)           The
Salary Deferral Contributions allocated to the Highly Compensated Eligible
Participant with the highest dollar amount of Salary Deferral Contributions for
the Plan Year shall be reduced by the amount required to cause that Highly
Compensated Eligible Participant’s remaining Salary Deferral Contributions for
the Plan Year to be equal to the dollar amount of the Salary Deferral
Contributions allocated to the Highly Compensated Eligible Participant with the
next highest dollar amount of Salary Deferral Contributions for the Plan
Year.  This amount is then the Excess
Contribution attributable to such Highly Compensated Eligible Participant with
the highest dollar amount of Salary Deferral Contributions which shall be
distributed or reclassified under subparagraph (d) below, unless a smaller
reduction equals the total Excess Contributions.

 

(2)           If
the total amount determined under Paragraph (1) of this Section 3(b) is
less than the total Excess Contributions, the procedure in Paragraph (1) shall
be successively repeated with the Highly Compensated Eligible Participant who
has the next highest dollar amount of Salary Deferral Contributions for the
Plan Year, and continuing as required until the total dollar amount allocated
to the Highly Compensated Eligible Participants is equal to the total Excess
Contributions attributable to Highly Compensated Eligible Participants.

 

(d)           Recharacterization
or Distribution of Excess Contributions.

 

(1)           To
the extent permitted by regulations issued by the Secretary of the Treasury,
the Plan Administrator may permit a Participant to elect, within two and
one-half months after the end of the Plan Year for which an Excess Contribution
was contributed, to treat the Excess Contribution allocated to him, unadjusted
for earnings, gains, and losses as an After-Tax Employee Contribution (such
amount to be called a “Recharacterized Amount.”)  For all purposes under the Plan other than
this Appendix C, Recharacterized Amounts shall be treated as Salary Deferral
Contributions.

 

(2)           The
Plan Sponsor may distribute the Total Excess Contributions determined in
Subparagraph (c) above, plus the income or loss thereon, to the Highly
Compensated Eligible Participants to whom such Excess Contributions were
allocated.

 

C-3

 

The income or loss
attributable to the Excess Contributions shall be determined in a manner
similar to that described in Section 4.2 of the Plan.

 

(3)           The
Excess Contributions to be distributed or recharacterized under subparagraphs (1) and
(2) above shall be reduced by Salary Deferral Contributions previously
distributed or recharacterized for the taxable year ending in the same Plan
Year, and shall also be reduced by Salary Deferral Contributions previously
distributed or recharacterized for the Plan Year beginning in such taxable
year, and by any excess Elective Deferrals as determined pursuant to Plan Section 3.1
previously distributed to the Participant for the Participant’s taxable year
ending with or within the Plan Year.

 

(4)           If
the multiple use of the Two Times Test of Sections 2(a)(2) and 5(a)(2) 
of this Appendix C, pursuant to Treasury Regulations section 1.401(m)-2,
as promulgated by the Secretary of the Treasury, requires a corrective
distribution such distribution shall be made pursuant to this Section 3,
and not Section 6, of this Appendix C.

 

(5)           Any
Matching Contribution that was based on the portion of the Salary Deferral
Contribution that is distributed or recharacterized under this Section as
an Excess Contribution shall be forfeited upon such distribution or
recharacterization.

 

If a distribution or recharacterization of the Excess
Deferral Amounts attributable to the Highly Compensated Eligible Participants
is made in accordance with this Subsection (d), the limitations in Section 2
of this Appendix C shall be treated as being met regardless of whether the
actual deferral percentage, if recalculated after such distributions, would
have satisfied the requirements of Section 2.

 

(e)           Contribution
of Qualified Nonelective Contributions or Qualified Matching Contributions.  Not later than twelve (12) months after the
end of the Plan Year, the Plan Sponsor may make a special Qualified Nonelective
Contribution or Qualified Matching Contribution on behalf of all or certain
Eligible Participants who are not Highly Compensated Eligible Participants in
an amount sufficient to satisfy (or to prevent an anticipated failure of) the
Actual Deferral Percentage Test.  Such
contribution shall be allocated to the Participant’s Qualified Nonelective
Employer Contribution Account in one of the following manners, as elected by
the Employer at the time the Qualified Nonelective Contribution or Qualified
Matching Contribution is made, until Actual Deferral Percentage Test is
satisfied, or until such Eligible Participant who is not a Highly Compensated
Eligible Participant has received his maximum Annual Additions pursuant to
Appendix A:

 

(1)           Per
Capita:  under this method, the
Qualified Nonelective Contribution is allocated to the Qualified Nonelective
Employer Contribution Account of each Eligible Participant who is not a Highly
Compensated Eligible Participant who is employed with the Plan Sponsor or an
Affiliate on the last day of the Plan Year in an equal amount.

 

(2)           Pro-Rata
to Compensation:  under this method,
the Qualified Nonelective Contribution is allocated to the Qualified
Nonelective Employer Contribution Account of each Eligible Participant who is
not a Highly Compensated Eligible Participant who is

 

C-4

 

employed with the Plan
Sponsor or an Affiliate on the last day of the Plan Year in the same ratio that
such Eligible Participant’s Annual Compensation for such Plan Year bears to the
total Annual Compensation of all such Eligible Participants for such Plan Year.

 

(3)           Pro-Rata
to Deferrals:  This method is used
for Qualified Matching Contributions. 
Under this method, the Qualified Matching Contribution is allocated to
the Qualified Nonelective Employer Contribution Account of each Eligible
Participant who is not a Highly Compensated Eligible Participant who is
employed with the Plan Sponsor or an Affiliate on the last day of the Plan Year
in the same ratio that such Eligible Participant’s Salary Deferral Contribution
for such Plan Year bears to the total Salary Deferral Contributions of all such
Eligible Participants for such Plan Year.

 

(4)           Bottom-Up:  under this method, the Qualified Nonelective
Contribution is allocated first to the Qualified Nonelective Employer
Contribution Account of the Eligible Participant who is not a Highly
Compensated Eligible Participant, whose Annual Compensation for such Plan Year
is the least of all such Participants, and who is employed on the last day of
the Plan Year, in an amount equal to the lesser of:  (A) the maximum amount which will allow
the Annual Additions to the Eligible Participant’s Account to remain within the
limits of Appendix A; or (B) such percentage of Annual Compensation as the
Employer shall designate.  Once such
maximum allocation has been made to the Qualified Nonelective Employer
Contribution Account of such Participant, this process shall be repeated with
regard to the Qualified Nonelective Employer Contribution Account of successive
Eligible Participants who are not Highly Compensated Eligible Participants who
are employed with the employer on the last day of the Plan Year, in the order
of increasing Annual Compensation, until the entire Qualified Nonelective
Contribution has been allocated.  If more
than one such Eligible Participant has Compensation for the Plan Year of a
given amount, the Qualified Nonelective Contribution shall be allocated among
all such Eligible Participants with equal Annual Compensations in alphabetical
order (last name first, then first name, then middle name) until either all
such Eligible Participants with equal Annual Compensations have received the
appropriate Qualified Nonelective Contribution or the entire Qualified
Nonelective Contribution has been allocated.

 

Notwithstanding the foregoing, nothing in this Section shall
be deemed to prevent a Plan Sponsor, in the event of an uncorrected failure of
the Actual Deferral Percentage Test, from taking any corrective measures
available pursuant to Plan Section 3.9 above.

 

SECTION 4

PLAN
ADMINISTRATOR TO MONITOR AND MAINTAIN COMPLIANCE

 

The Plan Administrator shall have the responsibility
of monitoring the Plan’s compliance with the limitations of this Appendix C and
shall have the power to take all steps it deems necessary or appropriate to
ensure compliance, including, without limitation, restricting the amount which
Highly Compensated Eligible Participants can elect to have contributed pursuant

 

C-5

 

to Plan Section 3.1.  Any actions taken by the Plan Administrator
pursuant to this Section 4 shall be pursuant to non-discriminatory procedures
consistently applied.

 

SECTION 5

ACTUAL
CONTRIBUTION PERCENTAGE TEST

 

(a)           In
addition to any other limitations set forth in the Plan, Matching Contributions
under the Plan and the amount of nondeductible employee contributions under the
Plan, for each Plan Year must satisfy one of the following tests:

 

(1)           The
125 Percent Test.  The Actual
Contribution Percentage for Highly Compensated Eligible Participants for the
Plan Year must not exceed 125% of the Actual Contribution Percentage for all
other Eligible Participants for the Plan Year; or

 

(2)           The
Two Times Test.  The Actual
Contribution Percentage for Highly Compensated Eligible Participants for the
Plan Year must not exceed the lesser of:

 

(A)          200
% of the Actual Contribution Percentage for all other Eligible Participants for
the Plan Year, and

 

(B)           the
Actual Contribution Percentage for all other Eligible Participants for the Plan
Year plus two (2) percentage points.

 

(b)           Notwithstanding
the foregoing, for purposes of this Section 5, the terms Highly
Compensated Eligible Participant and Eligible Participant shall not include any
Participant who is not eligible to receive a Matching Contribution under the
provisions of the Plan, other than as a result of the Participant failing to
contribute to the Plan or failing to have an Elective Deferral contributed to
the Plan on the Participant’s behalf.

 

(c)           Notwithstanding
the foregoing, if Qualified Matching Contributions are taken into account for
purposes of applying the Actual Deferral Percentage Test, they shall not be
taken into account under this Section 5.

 

(d)           In
applying the above tests, the Plan Administrator shall comply with any
regulations promulgated by the Secretary of the Treasury which prevent or
restrict the use of the Two Times Test for purposes of passing both the Actual
Deferral Percentage Test and the Actual Contribution Percentage Test.

 

(e)           The
“Actual Contribution Percentage” for a group of Eligible Participants is equal
to the average of the ratios, calculated separately for each Participant, of (A) to
(B), where (A) is the amount of Matching Contributions under the Plan
(excluding Qualified Matching Contributions which are used to apply the test
set forth in Section 2 of this Appendix C or Matching Contributions which
are used to satisfy the minimum required contributions to the Accounts of
Eligible Participants who are not Key Employees pursuant to Section 1 of
Appendix B to the Plan) and Employee After-Tax Contributions made under
the Plan for the

 

C-6

 

Eligible Participant for the Plan Year, and
where (B) is the Annual Compensation of the Eligible Participant for the
Plan Year.  Except to the extent limited
by Treasury Regulation Section 1.401(m)-l(b)(5) and any other
applicable regulations promulgated by the Secretary of the Treasury, a Plan
Sponsor may elect to treat Salary Deferral Contributions and Qualified
Nonelective Contributions as Matching Contributions for purpose of determining
the Actual Contribution Percentage, provided the Salary Deferral Contributions,
excluding those treated as Matching Contributions, satisfy the test set forth
in Section 2 of Appendix C.

 

SECTION 6

DETERMINATION
AND CORRECTION OF EXCESS AGGREGATE CONTRIBUTION AMOUNTS

 

(a)           If
either:

 

(1)           the
Matching Contributions and, if taken into account under Section 5 of this
Appendix C, the Salary Deferral Contributions, Qualified Nonelective
Contributions, and/or Qualified Matching Contributions made on behalf of Highly
Compensated Eligible Participants, or

 

(2)           the
After-Tax Employee Contributions made by Highly Compensated Eligible
Participants

 

are sufficient to exceed the amount permitted under
the Actual Contribution Percentage Test for any Plan Year, such excess amounts
shall be considered to be “Excess Aggregate Contributions.”  The Plan Sponsor will determine the amount of
Excess Aggregate Contributions under subparagraph (b) below, and will
determine what share of the Excess Aggregate Contribution is attributable to
each Highly Compensated Eligible Participant under Subparagraph (c) below.  The Plan Sponsor may then implement one or
more of the corrective actions discussed in Subparagraphs (d) and (e) below
to resolve the failure of the Actual Contribution Percentage Test so that it is
considered to be passed for the Plan Year.

 

(b)           Determination
of Total Excess Aggregate Contributions. 
For purposes of this Section 6, with respect to any Plan Year, “Total
Excess Aggregate Contributions” means the excess of:

 

(1)           the
aggregate amount of the Matching Contributions, After Tax Employee
Contributions, any Qualified Nonelective Contributions or Qualified Matching
Contributions, and, if taken into account under Section 5 of this Appendix
C, the Salary Deferral Contributions actually made on behalf of Highly Compensated
Eligible Participants for the Plan Year, over

 

(2)           the
maximum amount of contributions permitted under the limitations of Section 5
of this Appendix C, determined by reducing contributions made on behalf of
Highly Compensated Eligible Participants in order of their contribution
percentages, beginning with the highest of such percentages.

 

C-7

 

The determination of the Total Excess Aggregate
Contributions under this Section 6 shall be made after first determining
the excess Elective Deferrals under Section 3.1(b) of the Plan and
then determining the Excess Contributions under Section 3 of this Appendix
C.

 

(c)           Allocation
of Total Excess Aggregate Contributions Among Highly Compensated Eligible
Participants. The Excess Aggregate Contributions for any Plan Year
allocable to a given Highly Compensated Eligible Participant (for purposes of
distribution under Subsection (d) below) shall be determined by the
Plan Sponsor as follows:

 

(1)           The
Matching Contributions and After Tax Employer Contributions allocated to the
Highly Compensated Eligible Participant with the highest dollar amount of such
contributions for the Plan Year shall be reduced by the amount required to
cause that Highly Compensated Eligible Participant’s remaining Matching
Contributions and After Tax Employer Contributions for the Plan Year to be
equal to the dollar amount of such contributions allocated to the Highly
Compensated Eligible Participant with the next highest dollar amount of
Matching contributions and nondeductible contributions for the Plan Year.  This amount is then the Excess Annual
Contributions attributable to such Highly Compensated Eligible Participant with
the highest dollar amount of Matching Contributions and After Tax Employer
Contributions that shall be distributed or forfeited, unless a smaller
reduction equals the total Excess Aggregate Contributions.

 

(2)           If
the total amount distributed under Paragraph (1) is less than the total
Excess Aggregate Contributions, the procedure in Paragraph (1) shall be
successively repeated with the Highly Compensated Eligible Participant who has
the next highest dollar amount of Matching Contributions and After Tax Employer
Contributions for the Plan Year, and continuing as required until the total
dollar amount of Matching Contributions and After Tax Employer Contributions
allocated to the Highly Compensated Eligible Participants is equal to the total
Excess Aggregate Contributions attributable to Highly Compensated Eligible
Participants.

 

(d)           Distribution
or Forfeiture of Excess Aggregate Contributions

 

(1)           Before
the end of the Plan Year following the Plan Year for which the Total Excess
Aggregate Contributions were made, the amount of the Total Excess Aggregate
Contributions attributable to the Plan for the Plan Year, as adjusted to
reflect any income, gain, or loss attributable to such contributions shall be
distributed or, if the Excess Aggregate Contributions are forfeitable,
forfeited.

 

(2)           The
distribution or forfeiture for any given Highly Compensated Eligible
Participant shall be equal to the amount of the Excess Aggregate Contribution
that was allocated to such Participant under Subsection (c) above.  Such amount shall first be attributed to
After Tax Employer Contributions made by the Participant during the Plan Year
for which no corresponding Plan Sponsor contribution is made, second to any
remaining After Tax Employer Contributions made by the Participant during the
Plan Year, and third to any Matching Contributions thereon.

 

C-8

 

(3)           The
income allocable to an Excess Aggregate Contribution shall be determined in a
manner similar to that described in Section 4.2 of the Plan.

 

(4)           If
a Participant who is to receive a distribution or forfeiture of his After Tax
Employer Contribution or Matching Contribution for the year is a participant in
another plan or plans maintained by the Plan Sponsor in which Excess Aggregate
Contributions for a Plan Year are held, each such plan shall distribute or
forfeit a pro-rata share of each class of contribution based on the respective
amounts of a class of contributions made to each plan during the Plan Year.

 

(5)           The
distribution of Excess Aggregate Contributions shall be made without regard to
any other provision in the Plan.

 

(6)           If
the multiple use of the Two Times Test requires a corrective distribution
pursuant to Treasury Regulation Section 1.401m)-2, such distribution shall
be made pursuant to Section 3 of this Appendix C and not this Section 6.

 

(7)           Excess
Aggregate Contributions, including forfeited Matching Contributions, shall be
treated as Employer contributions for purposes of Code sections 404 and 415,
even if they are distributed from the Plan. 
Forfeited Matching Contributions that are reallocated to Participants’
Accounts shall be treated as Annual Additions under Appendix A for the
Participants to whose Accounts they are allocated, and for the Participants
from whose Accounts they are forfeited.

 

If a distribution or forfeiture of the total
Excess Aggregate Contributions is made in accordance with this Section 6(d),
the limitations in Section 5 of this Appendix C shall be treated as being
met regardless of whether the actual contribution percentage, if recalculated
after such distributions, would have satisfied the requirements of Section 5.

 

(e)           Contribution
of Qualified Nonelective Contributions or Qualified Matching Contributions.  Not later than twelve (12) months after the
end of the Plan Year, the Plan Sponsor may make a special Qualified Nonelective
Contribution or a Qualified Matching Contribution on behalf of Eligible
Participants who are not Highly Compensated Eligible Participants in an amount
sufficient to satisfy (or to prevent an anticipated failure of) one of the
tests set forth in Subsection 5 above. 
Such contribution shall be allocated to the Qualified Nonelective
Employer Contribution Account of one or more Eligible Participants who are not
Highly Compensated Eligible Participants in one of the methods described in Subsection 3(e) above,
as elected by the Plan Sponsor at the time the Qualified Nonelective
Contribution or Qualified Matching Contribution is made.

 

Notwithstanding the foregoing, nothing in this Section shall
be deemed to prevent a Plan Sponsor, in the event of an uncorrected failure of
the Actual Deferral Percentage Test, from taking any corrective measures
available pursuant to Plan Section 3.9 above.

 

C-9

 

SECTION 7

MULTIPLE
PLANS

 

Except to the extent limited by rules promulgated
by the Secretary of the Treasury, if a Highly Compensated Eligible Participant
is a participant in any other plan of the Plan Sponsor or any Affiliate which
includes Matching Contributions, deferrals under a cash or deferred arrangement
pursuant to Code Section 401(k), or nondeductible employee contributions,
any contributions made by or on behalf of the Participant to the other plan
shall be allocated with the same class of contributions under the Plan for
purposes of determining the Actual Deferral Percentage and Actual Contribution
Percentage under the Plan; provided, however, contributions that are made under
an “employee stock ownership plan” (within the meaning of Code Section 4975(e)(7))
shall not be combined with contributions under any plan which is not an
employee stock ownership plan (within the meaning of Code Section 4975(e)(7)).

 

Except to the extent limited by rules promulgated
by the Secretary of the Treasury, if the Plan and any other plans which include
Matching Contributions, deferrals under a cash or deferred arrangement pursuant
to Code Section 401(k), or nondeductible employee contributions are
considered as one plan for purposes of Code Section 401(a)(4) and
410(b)(1), any contributions under the other plans shall be allocated with the
same class of contributions under the Plan for purposes of determining the
Actual Contribution Percentage and Actual Deferral Percentage under the Plan;
provided, however, contributions that are made under an “employee stock
ownership plan” (within the meaning of Code Section 4975(e)(7)) shall not
be combined with contributions under any plan which is not an employee stock
ownership plan (within the meaning of Code Section 4975(e)(7)).

 

SECTION 8

ALTERNATIVE
METHOD FOR NONDISCRIMINATION TESTING

 

Effective January 1, 1999,
notwithstanding any other provision in this Appendix C to the contrary, to the
extent otherwise applicable, the limitations expressed in this Appendix C shall
not apply with respect to those Plan Years in which the Plan satisfies the
requirements of Code Sections 401(k)(11) and/or 401(k)(12).

 

C-10Exhibit 10.13(b)

 

FIRST AMENDMENT TO THE

ATLANTIC SOUTHEAST AIRLINES, INC.

INVESTMENT SAVINGS PLAN

 

THIS FIRST
AMENDMENT is made on May       , 2002, by
Atlantic Southeast Airlines, Inc., a corporation duly organized and
existing under the laws of the State of Georgia (the “Company”).

 

W  I  T  N  E
S  S  E  T  H:

 

WHEREAS, the
Company maintains the Atlantic Southeast Airlines, Inc. Investment Savings
Plan (the “Plan”), which was originally established by indenture effective as
of January 1, 1989, and last amended and restated by indenture on February 26,
2002;

 

WHEREAS, Section 13.01
of the Plan permits the Company’s Board of Directors to amend the Plan from
time to time; and

 

WHEREAS, the
Company desires to amend the Plan to correct inadvertent scrivener’s errors.

 

NOW, THEREFORE,
the Plan is hereby amended as follows:

 

1.             Effective
as of October 1, 2000, by deleting the existing Section 1.16(b) and
substituting therefor the following:

 

“(b)         for
the period beginning October 1, 2000,

 

(i)            with
respect to contributions of Deferral Amounts pursuant to Section 3.1 and
contributions of Rollover Amounts pursuant to Section 3.4, the completion
of a ninety-consecutive-day period beginning on the date on which the Employee
first performs an Hour of Service upon his employment or reemployment with the
Plan Sponsor; and

 

(ii)           with
respect to contributions by a Plan Sponsor pursuant to Section 3.2, a
twelve-consecutive-month period during which the Employee completes no less
than 1,000 Hours of Service beginning on the date on which the Employee first
performs an Hour of Service upon his employment or reemployment with a Plan
Sponsor or, in the event the Employee fails to complete 1,000 Hours of Service
in that twelve-consecutive-month period, any Plan Year thereafter during which
the Employee completes no less than 1,000 Hours of Service, including the Plan
Year in which includes the first anniversary of the date the Employee first
performs an Hour of Service upon his employment or reemployment.”

 

2.             Effective
as of January 1, 1997, by deleting the existing schedule in Section 4.1(b)(ii) related
to the allocation of matching contributions and the paragraph immediately
following such schedule and substituting therefor the following:

 

 

	
  “Completed

  Years of Service

  	
   

  	
  Percentage

  	
   

  
	
  Less than 2

  	
   

  	
  20

  	
  %

  
	
  2

  	
   

  	
  30

  	
  %

  
	
  3

  	
   

  	
  40

  	
  %

  
	
  4 or more but
  less than 7

  	
   

  	
  50

  	
  %

  
	
  7 or more

  	
   

  	
  75

  	
  %

  

 

For purposes of
this Section, “Completed Years of Service” means the number of full years from
the Employee’s date of hire to the date as of which the matching contribution
is being allocated pursuant to this Section.”

 

Except as
specifically amended hereby, the Plan shall remain in full force and effect as
prior to this First Amendment.

 

IN WITNESS
WHEREOF, the parties hereto have caused this First Amendment to be executed as
of the day and year first above written.

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  ATLANTIC SOUTHEAST
  AIRLINES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  VP Human Resources

  
								

 

2

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