Document:

Ameritrade Holding Corporation

 

Exhibit 4.2

DATEK ONLINE HOLDINGS CORP.

2001 STOCK INCENTIVE PLAN

(As Adopted April 10, 2001)

(As Amended and Restated Effective as of September 9, 2002)

 

 

DATEK ONLINE HOLDINGS CORP.

2001 STOCK INCENTIVE PLAN

(AS AMENDED AND RESTATED EFFECTIVE AS OF SEPTEMBER 9, 2002)

     1.     Purpose.

     This Plan was originally adopted by Datek Online Holdings, Corp.
(“Datek”) for the purpose of strengthening Datek, by providing an incentive to
its employees, officers and directors and to the employees, officers and
directors of its Subsidiaries and thereby encouraging them to devote their
abilities and industry to the success of the business enterprise of Datek and
its Subsidiaries. It is intended that this purpose be achieved by extending to
employees (including future employees who have received a formal written offer
of employment), officers and directors of Datek and its affiliates an added
long-term incentive for high levels of performance and unusual efforts through
the grant of Incentive Stock Options and Nonqualified Stock Options (as each
term is herein defined). Pursuant to an agreement and plan of merger (the
“Merger Agreement”), Datek became a subsidiary of a newly formed corporation,
Ameritrade Holding Corporation (“Ameritrade” or the “Company”) effective as of
September 9, 2002 (the “Restatement Date”) and as of the Restatement Date
Ameritrade assumed the Plan, and all outstanding obligations hereunder. The
following provisions constitute an amendment, restatement and continuation of
the Plan as of the Restatement Date.

     2.     Definitions. For purposes of the Plan:

		
	 	     2.1 “Agreement” means the written agreement between the
Company and an Optionee evidencing the grant by the Company of an Option and
setting forth the terms and conditions thereof.

		
	 	     2.2 “Ameritrade” means Ameritrade Holding Corporation (also referred to herein as the “Company”)

		
	 	     2.3 “Board” means the Board of Directors of the Company.

		
	 	     2.4 Except as otherwise determined by the Committee at the time of grant, “Cause” means:

		
	 	     (a) in the case of an Optionee whose employment with the Company or a
Subsidiary is subject to the terms of an employment agreement between such
Optionee and the Company or Subsidiary, which employment agreement includes a
definition of “Cause”, the term “Cause” as used in this Plan or any Agreement
shall have the meaning set forth in such employment agreement during the period
that such employment agreement remains in effect; and

		
	 	     (b) in all other cases, (i) the commission by an Optionee of any act or omission
that would constitute a crime under federal, state or equivalent foreign law,
(ii) the commission by an Optionee of any act of moral turpitude, (iii) fraud,
dishonesty or other acts or omissions by an Optionee that result in a breach of
any fiduciary or other material duty to the Company and/or the Subsidiaries or
(iv) continued alcohol or other substance abuse that renders

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	 	an Optionee incapable of performing his or her material duties to the satisfaction
of the Company and/or the Subsidiaries.
	 
	 	     2.5 “Change in Capitalization” means any increase or reduction
in the number of Shares, or any change (including, but not limited to, in the
case of a spin-off, dividend or other distribution in respect of Shares, a
change in value) in the Shares or exchange of Shares for a different number or
kind of shares or other securities of the Company or another corporation, by
reason of a reclassification, recapitalization, merger, consolidation,
reorganization, spin-off, split-up, issuance of warrants or rights or
debentures, stock dividend, stock split or reverse stock split, cash dividend,
property dividend, combination or exchange of shares, repurchase of shares,
change in corporate structure or otherwise.

		
	 	     2.6 A “Change in Control” shall mean a change in the
beneficial ownership of the Company’s voting stock or a change in the
composition of the Board which occurs as follows:

		
	 	     (a) Any “person” (as such term is used in Section 13(d) and 14(d)(2) of the
Exchange Act) is or becomes a beneficial owner, directly or indirectly, of stock
of the Company representing 30 percent or more of the total voting power of the
Company’s then outstanding stock.

		
	 	     (b) A tender offer (for which a filing has been made with the Securities
Exchange Commission (“SEC”) which purports to comply with the requirements of
Section 14(d) of the Exchange Act and the corresponding SEC rules) is made for
the stock of the Company, which has not been negotiated and approved by the
Board. In case of a tender offer described in this paragraph (b), the Change in
Control will be deemed to have occurred upon the first to occur of (A) any time
during the offer when the person (using the definition in (a) above) making the
offer owns or has accepted for payment stock of the Company with 25 percent or
more of the total voting power of the Company’s stock or (B) three business days
before the offer is to terminate unless the offer is withdrawn first, if the
person making the offer could own, by the terms of the offer plus any shares
owned by this person, stock with 50 percent or more of the total voting power of
the Company’s stock when the offer terminates.

		
	 	     (c) Individuals who were the Board’s nominees for election as directors of the
Company immediately prior to a meeting of the shareholders of the Company
involving a contest for the election of directors shall not constitute a
majority of the Board following the election.

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

		
	 	     2.8 “Committee” means a committee, as described in Section
3.1, appointed by the Board from time to time to administer the Plan and to
perform the functions set forth herein.

		
	 	     2.9 “Company” means Ameritrade Holding Corporation.

		
	 	     2.10 “Datek” means Datek Online Holdings, Corp.

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	 	     2.11 “Datek Common Stock” means shares of Datek common stock prior to the Restatement
Date.

		
	 	     2.12 “Director” means a director of the Company.

		
	 	     2.13 Except as otherwise determined by the Committee at the time of grant, “Disability”
means:

		
	 	     (a) in the case of an Optionee whose employment with the Company or a
Subsidiary is subject to the terms of an employment agreement between such
Optionee and the Company or Subsidiary, which employment agreement includes a
definition of “Disability”, the term “Disability” as used in this Plan or any
Agreement shall have the meaning set forth in such employment agreement during
the period that such employment agreement remains in effect; or

		
	 	     (b) the term “Disability” as used in the Company’s long-term disability plan,
if any; or

		
	 	     (c) in all other cases, the term “Disability” as used in this Plan or any
Agreement shall mean a physical or mental infirmity which impairs the Optionee’s
ability to perform substantially his or her duties for a period of one hundred
eighty (180) consecutive days.

		
	 	     2.14 “Eligible Individual” means any director or non-voting
observer to the Board, officer or employee of the Company or a Subsidiary who is
designated by the Committee as eligible to receive Options subject to the
conditions set forth herein.

		
	 	     2.15 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

		
	 	     2.16 “Exercise Price” means the price at which an Optionee can
purchase Company Shares under the terms of an Option.

		
	 	     2.17 “Existing Datek Options” shall be as defined in Section 9, below.

		
	 	     2.18 Except as otherwise determined by the Committee at the
time of grant, the “Fair Market Value” of a Share as of any date shall be the
closing market composite price for such Shares as reported on NASDAQ on that
date or, if Shares are not traded on that date, on the next preceding date on
which Stock was traded.

		
	 	     2.19 “Incentive Stock Option” means an Option satisfying the
requirements of Section 422 of the Code and designated by the Committee as an
Incentive Stock Option.

		
	 	     2.20
“Merger Agreement” means the `Second Amended and Restated Agreement and Plan of Merger by
and between Datek, Ameritrade Holding Corporation, Arrow Stock Holding Corporation (“Ameritrade”), Arrow
Merger Corporation and Dart Merger Corp., dated as of July 26, 2002’.

		
	 	     2.21 “Nonemployee Director” means a director of the Company
who is a “nonemployee director” within the meaning of Rule 16b-3 promulgated
under the Exchange Act.

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	 	     2.22 “Nonqualified Stock Option” means an Option which is not an Incentive Stock Option.

		
	 	     2.23 “Option” means a Nonqualified Stock Option, an Incentive Stock Option, or any or
all of them.

		
	 	     2.24 “Optionee” means a person to whom an Option has been
granted under the Plan, for so long as such person continues to hold such
Option.

		
	 	     2.25 “Parent” means any corporation which is a parent
corporation (within the meaning of Section 424(e) of the Code) with respect to
the Company.

		
	 	     2.26 “Performance-Based Compensation” means any Option that is
intended to constitute “performance based compensation” within the meaning of
Section 162(m)(4)(C) of the Code and the regulations promulgated thereunder or
with respect to which it is intended that the deduction limitation contained in
Section 162(m) of the Code might not apply.

		
	 	     2.27 “Plan” means the Datek Online Holdings Corp. 2001 Stock Incentive Plan, as amended
and restated from time to time.

		
	 	     2.28 “Plan Effective Date” means April 10, 2001, the date as
of which the Plan was adopted and became effective.

		
	 	     2.29 “Replacement Option” means a replacement option automatically granted under Section
9, below.

		
	 	     2.30 “Restatement Date” means September 9, 2002.

		
	 	     2.31 “Securities Act” means the Securities Act of 1933, as amended.

		
	 	     2.32 “Shares” means the shares of common stock, par value
$0.01 per share, of the Company, and any other securities into which such shares
are changed or for which such shares are exchanged.

		
	 	     2.33 “Subsidiary” means (i) except as provided in subsection
(ii) below, any corporation which is a subsidiary corporation within the meaning
of Section 424(f) of the Code with respect to the Company, and (ii) in relation
to the eligibility to receive Options other than Incentive Stock Options and
continued employment for purposes of Options (unless the Committee determines
otherwise), any entity, whether or not incorporated, in which the Company
directly or indirectly owns 50% or more of the outstanding equity or other
ownership interests representing 50% or more of the outstanding voting power
entitled to vote in the election of directors (or their equivalent) generally.

		
	 	     2.34 “Successor Corporation” means a corporation, or a parent
or subsidiary thereof within the meaning of Section 424(a) of the Code, which
issues or assumes a stock option in a transaction to which Section 424(a) of the
Code applies.

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	 	     2.35 “Ten-Percent Stockholder” means an Eligible Individual,
who, at the time an Incentive Stock Option is to be granted to him or her, owns
(within the meaning of Section 422(b)(6) of the Code) stock possessing more than
ten percent (10%) of the total combined voting power of all classes of stock of
the Company, or of a Parent or a Subsidiary.

		
	 	     2.36 “Voting Securities” means with respect to any entity, the
shares of equity securities of such entity, as required by the context,
generally allowed to vote in the election of the board of directors of such
entity.

     3.     Administration.

		
	 	     3.1 The Plan shall be administered by the Committee, which
shall hold meetings at such times as may be necessary for the proper
administration of the Plan. The Committee shall keep minutes of its meetings.
The Committee shall be appointed by the Board in accordance with the charter and
by-laws of the Company and any agreements by and among the stockholders of the
Company.

		
	 	     3.2 No member of the Committee shall be liable for any action,
failure to act, determination or interpretation made in good faith with respect
to this Plan or any transaction hereunder. The Company hereby agrees to
indemnify each member of the Committee for all costs and expenses and, to the
extent permitted by applicable law, any liability incurred in connection with
defending against, responding to, negotiating for the settlement of or otherwise
dealing with any claim, cause of action or dispute of any kind arising in
connection with any actions in administering this Plan or in authorizing or
denying authorization to any transaction hereunder.

		
	 	     3.3 Subject to the express terms and conditions set forth
herein, the Committee shall have the power from time to time to:

		
	 	     (a) select those Eligible Individuals to whom Options shall be granted under
the Plan and to determine the number of Shares in respect of which each Option
is granted, the terms and conditions (which need not be identical) of each such
Option, including the Exercise Price per Share, the vesting schedule and the
duration of each Option, and make any amendment or modification to any Option
Agreement consistent with the terms of the Plan;

		
	 	     (b) to construe and interpret the Plan and the Options granted hereunder and
to establish, amend and revoke rules and regulations for the administration of
the Plan, including, but not limited to, correcting any defect or supplying any
omission, or reconciling any inconsistency in the Plan or in any Agreement, in
the manner and to the extent it shall deem necessary or advisable, including so
that the Plan and the operation of the Plan complies with Rule 16b-3 under the
Exchange Act, the Code to the extent applicable and other applicable law, and
otherwise to make the Plan fully effective. All decisions and determinations by
the Committee in the exercise of this power shall be final, binding and
conclusive upon the Company, its Subsidiaries, the Optionees, and all other
persons having any interest therein;

		
	 	     (c) to determine the duration and purposes for leaves of absence which may be
granted to an Optionee on an individual basis without constituting a termination of employment or service for
purposes of the Plan;

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	 	     (d) to exercise its discretion with respect to the powers and rights granted
to it as set forth in the Plan; and

		
	 	     (e) generally, to exercise such powers and to perform such acts as are deemed
necessary or advisable to promote the best interests of the Company with respect to the Plan.

     4.     Stock Subject to the Plan; Grant Limitations.

		
	 	     4.1 The maximum number of Shares that may be made the subject
of Options granted under the Plan is 15,976,268. The Company shall reserve for
the purposes of the Plan, out of its authorized but unissued Shares or out of
Shares held in the Company’s treasury, or partly out of each, such number of
Shares as shall be determined by the Board.

		
	 	     4.2 Upon the granting of an Option, the number of Shares
available under Section 4.1 for the granting of further Options shall be reduced
in connection with the granting of an Option by the number of Shares in respect
of which the Option is granted or denominated; provided, however, that if any
Option is exercised by tendering Shares, either actually or by attestation, to
the Company as full or partial payment of the Exercise Price, the maximum number
of Shares available under Section 4.1 shall be increased by the number of Shares
so tendered.

		
	 	     4.3 Whenever any outstanding Option or portion thereof
expires, is canceled, is settled in cash (including the settlement of tax
withholding obligations using Shares) or is otherwise terminated for any reason
without having been exercised or payment having been made in respect of the
entire Option, the Shares allocable to the expired, canceled, settled or
otherwise terminated portion of the Option may again be the subject of Options
granted hereunder.

     5.     Option Grants for Eligible Individuals.

		
	 	     5.1 Authority of Committee. Subject to the provisions of the
Plan, the Committee shall have full and final authority to select those Eligible
Individuals who will receive Options, and the terms and conditions of the grant
to such Eligible Individuals shall be set forth in an Agreement. Incentive Stock
Options may be granted only to Eligible Individuals who are employees of the
Company or any Subsidiary.

		
	 	     5.2 Exercise Price. The purchase price (the “Exercise Price”)
or the manner in which the Exercise Price is to be determined for Shares under
each Option shall be determined by the Committee and set forth in the Agreement;
provided, however, that the Exercise Price per Share under each Incentive Stock
Option shall not be less than 100% of the Fair Market Value of a Share on the
date the Option is granted (110% in the case of an Incentive Stock Option
granted to a Ten-Percent Stockholder).

		
	 	     5.3 Maximum Duration. Except as otherwise determined by the Committee at the
time of the grant, Options granted hereunder shall have a term of, and shall not
be exercisable after the expiration of, ten (10) years from the date it is
granted (five (5) years in the case of an Incentive Stock Option granted to a
Ten-Percent Stockholder); provided, however, the

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		Committee may provide that an Option (other than an Incentive
Stock Option) may, upon the death of the Optionee prior to the expiration of the
Option, be exercised for up to one (1) year following the date of the Optionee’s
death even if such period extends beyond ten (10) years from the date the Option
is granted. The Committee may, subsequent to the granting of any Option, extend
the term thereof, but in no event shall the term as so extended exceed the
maximum term provided for in the preceding sentence.

	 	 
	 	     5.4 Vesting; Exercisability. Except as otherwise determined by
the Committee at the time of the grant, each Option shall become vested with
respect to twenty-five percent (25%) of the total number of Shares covered by
the Option on each of the first four (4) anniversaries of the day before the
date of the grant. The Optionee must be in the employ or service of the Company
on any scheduled date of vesting, otherwise vesting will not occur. Any
fractional number of Shares resulting from the application of the foregoing
percentages shall be rounded to the next higher whole number of Shares. The
Committee may accelerate the vesting of any Option or portion thereof at any
time.

		
	 	     5.5 Deferred Delivery of Option Shares. The Committee may, in
its discretion permit Optionees to elect to defer the issuance of Shares upon
the exercise of one or more Nonqualified Stock Options granted pursuant to the
Plan. The terms and conditions of such deferral shall be determined at the time
of the grant of the Option or thereafter and shall be set forth in the Agreement
evidencing the Option.

		
	 	     5.6 Limitations on Incentive Stock Options. To the extent that
the aggregate Fair Market Value (determined as of the date of the grant) of
Shares with respect to which Incentive Stock Options granted under the Plan and
“incentive stock options” (within the meaning of Section 422 of the Code)
granted under all other plans of the Company or its Subsidiaries (in either case
determined without regard to this Section 5.6) are exercisable by an Optionee
for the first time during any calendar year exceeds $100,000, such Incentive
Stock Options shall be treated as Nonqualified Stock Options. In applying the
limitation in the preceding sentence in the case of multiple Option grants,
Options which were intended to be Incentive Stock Options shall be treated as
Nonqualified Stock Options according to the order in which they were granted
such that the most recently granted Options are first treated as Nonqualified
Stock Options.

		
	 	     5.7 Non-Transferability. No Option shall be transferable by
the Optionee except by will or by the laws of descent and distribution, and an
Option shall be exercisable during the lifetime of such Optionee only by the
Optionee or his or her guardian or legal representative. The terms of an Option
shall be final, binding and conclusive upon the beneficiaries, executors,
administrators, heirs and successors of the Optionee.

		
	 	     5.8 Method of Exercise. Except as otherwise expressly provided in the Plan, an
Option may be exercised, in whole or in part, in accordance with terms and
conditions established by the Board or the Committee at the time of grant;
provided, however, that no Option shall be exercisable after the expiration date
applicable to that Option and no Option or any portion thereof will first become
exercisable after the Participant’s termination of employment with the Company.
The full Exercise Price of each share of Common Stock purchased upon the
exercise of any Option shall be paid at the time of such exercise (except that,

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		in the case of a cashless exercise arrangement approved by the
Committee, payment may be made as soon as practicable after the exercise) and,
as soon as practicable thereafter, a certificate representing the shares so
purchased shall be delivered to the person entitled thereto. The Exercise Price
shall be payable in cash or in shares of Common Stock (valued at Fair Market
Value as of the day of exercise), or in any combination thereof, as determined
by the Board or the Committee and, to the extent provided by the Committee, a
Participant may elect to pay the Exercise Price upon the exercise of an Option
through a cashless exercise arrangement. Rights of Optionees. No Optionee shall
be deemed for any purpose to be the owner of any Shares subject to any Option
unless and until (a) the Option shall have been exercised pursuant to the terms
thereof, (b) the Company shall have issued and delivered Shares to the Optionee,
and (c) the Optionee’s name shall have been entered as a stockholder of record
on the books of the Company. Thereupon, the Optionee shall have full voting,
dividend and other ownership rights with respect to such Shares, subject to such
terms and conditions as may be set forth in the applicable Agreement.

     6.     Effect of a Termination of Employment.

		
	 	     (a) Except as otherwise determined by the Committee at the time of grant or at
any time thereafter, in the event an Optionee leaves the employ of the Company
and the Subsidiaries or ceases to serve as a Nonemployee Director of the Company
for any reason other than his or her termination for Cause, each Option
previously granted to him or her that has not already been exercised, expired or
otherwise been cancelled, and that was vested and exercisable on the date of
termination of employment or service, shall terminate thirty (30) days after the
date of such Optionee’s termination of employment or service, or on the date of
termination specified in the Option, as the case may be, whichever comes first.
Any Option that was not both vested and exercisable on the date of termination
shall expire on that date.

		
	 	     (b) If an Optionee’s employment by the Company and the Subsidiaries or service
as a Nonemployee Director of the Company is terminated for Cause, each Option
previously granted to him or her that has not already been exercised, expired or
otherwise been cancelled shall terminate at the same time the termination for
Cause becomes effective.

     7.     Adjustment Upon Changes in Capitalization.

		
	 	     (a) In the event of a Change in Capitalization, the Committee shall
conclusively determine the appropriate adjustments, if any, to (i) the maximum
number and class of Shares or other stock or securities with respect to which
Options may be granted under the Plan and (ii) subject to Section 8, the number
and class of Shares or other stock or securities which are subject to
outstanding Options granted under the Plan and the Exercise Price therefor, if
applicable.

		
	 	     (b) Any such adjustment in the Shares or other stock or securities (i) subject
to outstanding Incentive Stock Options (including any adjustments in the
Exercise Price) shall be made in such manner as not to constitute a modification
as defined by Section 424(h)(3) of the Code and only to the extent otherwise
permitted by Sections 422 and 424 of the Code or (ii) subject to outstanding
Options that are intended to qualify as Performance-Based

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		Compensation shall be made in such a manner as not to adversely affect the
treatment of the Options as Performance-Based Compensation.

	 	 
	 	     (c) If, by reason of a Change in Capitalization, an Optionee shall be entitled
to exercise an Option with respect to new, additional or different shares of
stock or securities of the Company or any other corporation, such new,
additional or different shares shall thereupon be subject to all of the
conditions, restrictions and performance criteria which were applicable to the
Shares subject to the Option, as the case may be, prior to such Change in
Capitalization.

     8.     Effect of Certain Transactions.

Except as otherwise provided in an Agreement, in the event of (a) the
liquidation or dissolution of the Company or (b) a merger or consolidation of
the Company with or into any other corporation or other entity (a
“Transaction”), the Plan and the Options issued hereunder shall continue in
effect in accordance with their respective terms, except that following a
Transaction either (i) each outstanding Option shall be treated as provided for
in the agreement entered into in connection with the Transaction or (ii) if not
so provided in such agreement, each Optionee shall be entitled to receive in
respect of each Share subject to any outstanding Options, upon exercise of any
Option following the Transaction, the same number and kind of stock, securities,
cash, property or other consideration that each holder of a Share was entitled
to receive in the Transaction in respect of a Share; provided, however, that
such stock, securities, cash, property, or other consideration shall remain
subject to all of the conditions, restrictions and performance criteria which
were applicable to the Options prior to such Transaction.

     9.     Replacement Options.

Each holder of an Option related to the common stock of Datek (“Datek Common
Stock”) which was granted pursuant to the Plan prior to the Restatement Date and
which was outstanding as of the Restatement Date after giving effect to the
transactions contemplated by the Merger Agreement, including the
reclassification of Datek stock (the “Existing Datek Options”), will, as of the
Restatement Date, be automatically granted a “Replacement Option” under the Plan
and the Existing Datek Options shall be cancelled in exchange for the
Replacement Options. The number of Shares subject to a Replacement Option shall
be equal to (i) the number of shares of Datek Common Stock subject to the
corresponding Existing Datek Option multiplied by the Exchange Ratio (as defined
in the Merger Agreement), rounded down to the nearest whole number. The Exercise
Price per Share subject to a Replacement Option shall be equal to the per-share
Exercise Price under the corresponding Existing Datek Option divided by the
Exchange Ratio, rounded up to the nearest whole cent. Other than the number of
shares of Common Stock and the Exercise Price subject thereto, the Replacement
Options granted pursuant to this Section 9 shall be subject to the same terms
and conditions as the corresponding Existing Datek Options.

     10.     Interpretation.

		
	 	     (a) The Plan is intended to comply with Rule 16b-3 promulgated under the
Exchange Act and the Committee shall interpret and administer the provisions of the

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		Plan or any Agreement in a manner consistent therewith. Any provisions
inconsistent with such Rule shall be inoperative and shall not affect the
validity of the Plan.

	 	 
	 	     (b) Unless otherwise expressly stated in the relevant Agreement, each Option
granted under the Plan is intended to be Performance-Based Compensation. The
Committee shall not be entitled to exercise any discretion otherwise authorized
hereunder with respect to such Options if the ability to exercise such
discretion or the exercise of such discretion itself would cause the
compensation attributable to such Options to fail to qualify as
Performance-Based Compensation.

     11.     Market Standoff.

In connection with any underwritten public offering by the Company of its equity
securities pursuant to an effective registration statement filed under the
Securities Act, a person shall not sell, make any short sale of, loan,
hypothecate, pledge, grant any option for the purchase of, or otherwise dispose
or transfer for value or otherwise agree to engage in any of the foregoing
transactions with respect to, any Share issued pursuant to an Option granted
under the Plan without the prior written consent of the Company or its
underwriters. Such limitations shall be in effect for such period of time as may
be requested by the Company or such underwriters and agreed to by the Company’s
officers and directors with respect to their Shares; provided, however, that in
no event shall such period exceed 180 days. Holders of Shares issued pursuant to
an Option granted under the Plan shall be subject to the market standoff
provisions of this paragraph only if the officers and directors of the Company
are also subject to similar arrangements.

In the event of any stock split, stock dividend, recapitalization, combination
of Shares, exchange of Shares or other change affecting the Company’s
outstanding Shares effected as a class without the Company’s receipt of
consideration, then any new, substituted or additional securities distributed
with respect to the Shares acquired pursuant to an Option granted under the Plan
shall be immediately subject to the provisions of this Section 11, to the same
extent the Shares are at such time covered by such provisions.

In order to enforce the limitations of this Section 11, the Company may impose
stop-transfer instructions with respect to the Shares acquired pursuant to an
Option granted under the Plan until the end of the applicable standoff period.

     12.     Termination and Amendment of the Plan or Modification of Options.

		
	 	     12.1 Plan Amendment or Termination. The Plan shall terminate
on the day preceding the tenth anniversary of the date of its adoption by the
Board and no Option may be granted thereafter. The Board may sooner terminate
the Plan and the Board may at any time and from time to time amend, modify or
suspend the Plan; provided, however, that:

		
	 	     (a) no such amendment, modification, suspension or termination shall impair or
adversely alter any Options theretofore granted under the Plan, except with the
consent of the Optionee, nor shall any amendment, modification, suspension or
termination deprive any Optionee of any Shares which he or she may have acquired
through or as a result of the Plan; and

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	 	     (b) to the extent necessary under any applicable law, regulation or exchange
requirement no amendment shall be effective unless approved by the stockholders
of the Company in accordance with applicable law, regulation or exchange
requirement.

		
	 	     12.2 Modification of Options. No modification of an Option
shall adversely alter or impair any rights or obligations under the Option
without the consent of the Optionee.

     13.     Non-Exclusivity of the Plan.

The adoption of the Plan by the Board shall not be construed as amending,
modifying or rescinding any previously approved incentive arrangement or as
creating any limitations on the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the
granting of stock options otherwise than under the Plan, and such arrangements
may be either applicable generally or only in specific cases.

     14.     Limitation of Liability.

As illustrative of the limitations of liability of the Company, but not intended
to be exhaustive thereof, nothing in the Plan shall be construed to:

		
	 	     (a) give any person any right to be granted an Option other than at the sole
discretion of the Committee;

		
	 	     (b) give any person any rights as a shareholder of the Company or any other
rights whatsoever with respect to Shares except as specifically provided in the Plan;

		
	 	     (c) limit in any way the right of the Company or any Subsidiary to terminate
the employment of any person at any time; or

		
	 	     (d) be evidence of any agreement or understanding, expressed or implied, that
the Company will employ any person at any particular rate of compensation or for
any particular period of time.

     15.     Regulations and Other Approvals; Governing Law.

		
	 	     15.1 Except as to matters of federal law, the Plan and the
rights of all persons claiming hereunder shall be construed and determined in
accordance with the laws of the State of Delaware without giving effect to
conflicts of laws principles thereof.

		
	 	     15.2 The obligation of the Company to sell or deliver Shares
with respect to Options granted under the Plan shall be subject to all
applicable laws, rules and regulations, including all applicable federal and
state securities laws, and the obtaining of all such approvals by governmental
agencies as may be deemed necessary or appropriate by the Committee.

		
	 	     15.3 The Board may make such changes as may be necessary or
appropriate to comply with the rules and regulations of any government
authority, or to obtain for Eligible Individuals granted Incentive Stock Options
the tax benefits under the applicable provisions of the Code and regulations
promulgated thereunder.

11

 

		
	 	     15.4 Each Option is subject to the requirement that, if at any
time the Committee determines, in its discretion, that the listing, registration
or qualification of Shares issuable pursuant to the Plan is required by any
securities exchange or under any state or federal law, or the consent or
approval of any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, the grant of an Option or the issuance of
Shares, no Options shall be granted or payment made or Shares issued, in whole
or in part, unless listing, registration, qualification, consent or approval has
been effected or obtained free of any conditions as acceptable to the Committee.

		
	 	     15.5 Notwithstanding anything contained in the Plan or any
Agreement to the contrary, in the event that the disposition of Shares acquired
pursuant to the Plan is not covered by a then current registration statement
under the Securities Act, and is not otherwise exempt from such registration,
such Shares shall be restricted against transfer to the extent required by the
Securities Act and Rule 144 or other regulations thereunder. The Committee may
require any individual receiving Shares pursuant to an Option granted under the
Plan, as a condition precedent to receipt of such Shares, to represent and
warrant to the Company in writing that the Shares acquired by such individual
are acquired without a view to any distribution thereof and will not be sold or
transferred other than pursuant to an effective registration thereof under said
Act or pursuant to an exemption applicable under the Securities Act or the rules
and regulations promulgated thereunder. The certificates evidencing any of such
Shares shall be appropriately amended or have an appropriate legend placed
thereon to reflect their status as restricted securities as aforesaid.

		
	 	     15.6 Notwithstanding anything in this Plan to the contrary,
the Company may make any necessary or desirable modifications or amendments to
the Plan or Options, including termination of any or all Options without payment
therefore, in order to obtain or perfect any exemption or other relief from the
Securities and Exchange Commission in connection with this Plan or any other
equity plan of the Company or any of its Subsidiaries.

     16.     Miscellaneous.

		
	 	     16.1 Multiple Agreements. The terms of each Option may differ
from other Options granted under the Plan at the same time, or at some other
time. The Committee may also grant more than one Option to a given Eligible
Individual during the term of the Plan, either in addition to, or in
substitution for, one or more Options previously granted to that Eligible
Individual.

		
	 	     16.2 Withholding of Taxes.

		
	 	     (a) At such times as an Optionee recognizes taxable income in connection with
the receipt of Shares or cash hereunder (a “Taxable Event”), the Optionee shall
pay to the Company an amount equal to the federal, state and local income taxes
and other amounts as may be required by law to be withheld by the Company in
connection with the Taxable Event (the “Withholding Taxes”) prior to the
issuance, or release from escrow, of such Shares or the payment of such cash.
The Company shall have the right to deduct from any payment of cash to an
Optionee an amount equal to the minimum Withholding Taxes in satisfaction of the
obligation to pay Withholding Taxes. The Committee may provide in the

12

 

		
		Agreement at the time of grant, or at any time thereafter, that the Optionee, in
satisfaction of the obligation to pay Withholding Taxes to the Company, may
elect to have withheld a portion of the Shares then issuable to him or her
having an aggregate Fair Market Value equal to the Withholding Taxes.

	 	 
	 	     (b) If an Optionee makes a disposition, within the meaning of Section 424(c)
of the Code and regulations promulgated thereunder, of any Share or Shares
issued to such Optionee pursuant to the exercise of an Incentive Stock Option
within the two-year period commencing on the day after the date of the grant or
within the one-year period commencing on the day after the date of transfer of
such Share or Shares to the Optionee pursuant to such exercise, the Optionee
shall, within ten (10) days of such disposition, notify the Company thereof, by
delivery of written notice to the Company at its principal executive office.

13Ameritrade Holding Corporation

 

Exhibit 4.2

 

 

 

 

AMERITRADE HOLDING CORPORATION ASSOCIATES

401(k) PROFIT SHARING PLAN AND TRUST

 

 

 

 

Copyright 2001 SunGard Corbel

All Rights Reserved

 

 

AMERITRADE HOLDING CORPORATION ASSOCIATES

401(k) PROFIT SHARING PLAN AND TRUST

 

 

TABLE OF CONTENTS

ARTICLE I

DEFINITIONS

ARTICLE II

ADMINISTRATION

	 	 	 	 	 	 	 
	2.1	 	
POWERS AND RESPONSIBILITIES OF THE EMPLOYER
	 	 	13	 
	
	
	
	

	2.2	 	
DESIGNATION OF ADMINISTRATIVE AUTHORITY
	 	 	14	 
	
	
	
	

	2.3	 	
POWERS AND DUTIES OF THE ADMINISTRATOR
	 	 	14	 
	
	
	
	

	2.4	 	
RECORDS AND REPORTS
	 	 	16	 
	
	
	
	

	2.5	 	
APPOINTMENT OF ADVISERS
	 	 	16	 
	
	
	
	

	2.6	 	
PAYMENT OF EXPENSES
	 	 	16	 
	
	
	
	

	2.7	 	
CLAIMS PROCEDURE
	 	 	16	 
	
	
	
	

	2.8	 	
CLAIMS REVIEW PROCEDURE
	 	 	17	 

ARTICLE III

ELIGIBILITY

	 	 	 	 	 	 	 
	3.1	 	
CONDITIONS OF ELIGIBILITY
	 	 	20	 
	
	
	
	

	3.2	 	
EFFECTIVE DATE OF PARTICIPATION
	 	 	20	 
	
	
	
	

	3.3	 	
DETERMINATION OF ELIGIBILITY
	 	 	21	 
	
	
	
	

	3.4	 	
TERMINATION OF ELIGIBILITY
	 	 	21	 
	
	
	
	

	3.5	 	
OMISSION OF ELIGIBLE EMPLOYEE
	 	 	21	 
	
	
	
	

	3.6	 	
INCLUSION OF INELIGIBLE EMPLOYEE
	 	 	21	 
	
	
	
	

	3.7	 	
REHIRED EMPLOYEES AND BREAKS IN SERVICE
	 	 	21	 
	
	
	
	

	3.8	 	
ELECTION NOT TO PARTICIPATE
	 	 	22	 

ARTICLE IV

CONTRIBUTION AND ALLOCATION

	 	 	 	 	 	 	 
	4.1	 	
FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION
	 	 	22	 
	
	
	
	

	4.2	 	
PARTICIPANT’S SALARY REDUCTION ELECTION
	 	 	23	 
	
	
	
	

	4.3	 	
TIME OF PAYMENT OF EMPLOYER CONTRIBUTION
	 	 	27	 
	
	
	
	

	4.4	 	
ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS
	 	 	27	 
	
	
	
	

	4.5	 	
ACTUAL DEFERRAL PERCENTAGE TESTS
	 	 	32	 
	
	
	
	

	4.6	 	
ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE TESTS
	 	 	35	 
	
	
	
	

	4.7	 	
ACTUAL CONTRIBUTION PERCENTAGE TESTS
	 	 	37	 

 

 

	 	 	 	 	 	 	 
	
	
	
	

	4.8	 	
ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE TESTS
	 	 	40	 
	
	
	
	

	4.9	 	
MAXIMUM ANNUAL ADDITIONS
	 	 	43	 
	
	
	
	

	4.10	 	
ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS
	 	 	45	 
	
	
	
	

	4.11	 	
ROLLOVERS AND PLAN-TO-PLAN TRANSFERS FROM QUALIFIED PLANS
	 	 	46	 
	
	
	
	

	4.12	 	
DIRECTED INVESTMENT ACCOUNT
	 	 	48	 
	
	
	
	

	4.13	 	
QUALIFIED MILITARY SERVICE
	 	 	50	 

ARTICLE V

VALUATIONS

	 	 	 	 	 	 	 
	5.1	 	
VALUATION OF THE TRUST FUND
	 	 	50	 
	
	
	
	

	5.2	 	
METHOD OF VALUATION
	 	 	50	 

ARTICLE VI

DETERMINATION AND DISTRIBUTION OF BENEFITS

	 	 	 	 	 	 	 
	6.1	 	
DETERMINATION OF BENEFITS UPON RETIREMENT
	 	 	51	 
	
	
	
	

	6.2	 	
DETERMINATION OF BENEFITS UPON DEATH
	 	 	51	 
	
	
	
	

	6.3	 	
DISABILITY RETIREMENT BENEFITS
	 	 	53	 
	
	
	
	

	6.4	 	
DETERMINATION OF BENEFITS UPON TERMINATION
	 	 	53	 
	
	
	
	

	6.5	 	
DISTRIBUTION OF BENEFITS
	 	 	54	 
	
	
	
	

	6.6	 	
DISTRIBUTION OF BENEFITS UPON DEATH
	 	 	57	 
	
	
	
	

	6.7	 	
TIME OF SEGREGATION OR DISTRIBUTION
	 	 	59	 
	
	
	
	

	6.8	 	
DISTRIBUTION FOR MINOR OR INCOMPETENT BENEFICIARY
	 	 	59	 
	
	
	
	

	6.9	 	
LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN
	 	 	60	 
	
	
	
	

	6.10	 	
PRE-RETIREMENT DISTRIBUTION
	 	 	60	 
	
	
	
	

	6.11	 	
ADVANCE DISTRIBUTION FOR HARDSHIP
	 	 	60	 
	
	
	
	

	6.12	 	
QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION
	 	 	62	 

ARTICLE VII

TRUSTEE

	 	 	 	 	 	 	 
	7.1	 	
BASIC RESPONSIBILITIES OF THE TRUSTEE
	 	 	62	 
	
	
	
	

	7.2	 	
INVESTMENT POWERS AND DUTIES OF THE TRUSTEE
	 	 	63	 
	
	
	
	

	7.3	 	
OTHER POWERS OF THE TRUSTEE
	 	 	64	 
	
	
	
	

	7.4	 	
LOANS TO PARTICIPANTS
	 	 	67	 
	
	
	
	

	7.5	 	
DUTIES OF THE TRUSTEE REGARDING PAYMENTS
	 	 	68	 

 

 

	 	 	 	 	 	 	 
	
	
	
	

	7.6	 	
TRUSTEE’S COMPENSATION AND EXPENSES AND TAXES
	 	 	68	 
	
	
	
	

	7.7	 	
ANNUAL REPORT OF THE TRUSTEE
	 	 	69	 
	
	
	
	

	7.8	 	
AUDIT
	 	 	69	 
	
	
	
	

	7.9	 	
RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE
	 	 	70	 
	
	
	
	

	7.10	 	
TRANSFER OF INTEREST
	 	 	71	 
	
	
	
	

	7.11	 	
TRUSTEE INDEMNIFICATION
	 	 	71	 
	
	
	
	

	7.12	 	
DIRECT ROLLOVER
	 	 	71	 
	
	
	
	

	7.13	 	
EMPLOYER SECURITIES AND REAL PROPERTY
	 	 	72	 

ARTICLE VIII

AMENDMENT, TERMINATION AND MERGERS

	 	 	 	 	 	 	 
	8.1	 	
AMENDMENT
	 	 	72	 
	
	
	
	

	8.2	 	
TERMINATION
	 	 	73	 
	
	
	
	

	8.3	 	
MERGER, CONSOLIDATION OR TRANSFER OF ASSETS
	 	 	74	 

ARTICLE IX

TOP HEAVY

	 	 	 	 	 	 	 
	9.1	 	
TOP HEAVY PLAN REQUIREMENTS
	 	 	74	 
	
	
	
	

	9.2	 	
DETERMINATION OF TOP HEAVY STATUS
	 	 	74	 

ARTICLE X

MISCELLANEOUS

	 	 	 	 	 	 	 
	10.1	 	
PARTICIPANT’S RIGHTS
	 	 	77	 
	
	
	
	

	10.2	 	
ALIENATION
	 	 	77	 
	
	
	
	

	10.3	 	
CONSTRUCTION OF PLAN
	 	 	78	 
	
	
	
	

	10.4	 	
GENDER AND NUMBER
	 	 	78	 
	
	
	
	

	10.5	 	
LEGAL ACTION
	 	 	78	 
	
	
	
	

	10.6	 	
PROHIBITION AGAINST DIVERSION OF FUNDS
	 	 	79	 
	
	
	
	

	10.7	 	
EMPLOYER’S AND TRUSTEE’S PROTECTIVE CLAUSE
	 	 	79	 
	
	
	
	

	10.8	 	
INSURER’S PROTECTIVE CLAUSE
	 	 	79	 
	
	
	
	

	10.9	 	
RECEIPT AND RELEASE FOR PAYMENTS
	 	 	80	 
	
	
	
	

	10.10	 	
ACTION BY THE EMPLOYER
	 	 	80	 
	
	
	
	

	10.11	 	
NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY
	 	 	80	 
	
	
	
	

	10.12	 	
HEADINGS
	 	 	81	 
	
	
	
	

	10.13	 	
APPROVAL BY INTERNAL REVENUE SERVICE
	 	 	81	 

 

 

	 	 	 	 	 	 	 
	
	
	
	

	10.14	 	
UNIFORMITY
	 	 	81	 

ARTICLE XI

PARTICIPATING EMPLOYERS

	 	 	 	 	 	 	 
	11.1	 	
ADOPTION BY OTHER EMPLOYERS
	 	 	81	 
	
	
	
	

	11.2	 	
REQUIREMENTS OF PARTICIPATING EMPLOYERS
	 	 	81	 
	
	
	
	

	11.3	 	
DESIGNATION OF AGENT
	 	 	82	 
	
	
	
	

	11.4	 	
EMPLOYEE TRANSFERS
	 	 	82	 
	
	
	
	

	11.5	 	
PARTICIPATING EMPLOYER CONTRIBUTION AND FORFEITURES
	 	 	82	 
	
	
	
	

	11.6	 	
AMENDMENT
	 	 	82	 
	
	
	
	

	11.7	 	
DISCONTINUANCE OF PARTICIPATION
	 	 	82	 
	
	
	
	

	11.8	 	
ADMINISTRATOR’S AUTHORITY
	 	 	83	 

 

 

AMERITRADE HOLDING CORPORATION ASSOCIATES

401(k) PROFIT SHARING PLAN AND TRUST

                  THIS AGREEMENT, hereby made and entered into this      day of
     , by and between Ameritrade Holding Corporation
(herein referred to as the “Employer”) and INTRUST Bank, N.A. (herein referred
to as the “Trustee”).

W I T N E S S E T H:

                  WHEREAS, the Employer heretofore established a Profit Sharing Plan and
Trust effective January 19, 1981 (hereinafter called the “Effective Date”)
known as Ameritrade Holding Corporation Associates Profit Sharing Plan and
Trust (“Profit Sharing Plan”). The Profit Sharing Plan was restated effective
January 1, 1997. The Profit Sharing Plan was again restated effective May 1,
1999 and became known as the Ameritrade Holding Corporation Associates 401(k)
Profit Sharing Plan and Trust (“Plan”). Effective July 1, 1999 the Ameritrade
Holding Corporation Associates 401(k) Plan was merged into the Plan. The
Employer continues the Plan in recognition of the employees’ contribution to
its successful operation and for the exclusive benefit of its eligible
employees; and

                  WHEREAS, under the terms of the Plan, the Employer has the ability to
amend the Plan, provided the Trustee joins in such amendment if the provisions
of the Plan affecting the Trustee are amended;

                  NOW, THEREFORE, effective January 1, 2001, except as otherwise provided,
the Employer and the Trustee in accordance with the provisions of the Plan
pertaining to amendments thereof, hereby amend the Plan in its entirety and
restate the Plan to provide as follows:

ARTICLE I

DEFINITIONS

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

         1.2 “Administrator” means the Employer unless another person or entity has
been designated by the Employer pursuant to Section 2.2 to administer the Plan
on behalf of the Employer.

         1.3 “Affiliated Employer” means any corporation which is a member of a
controlled group of corporations (as defined in Code Section 414(b)) which
includes the Employer; any trade or business (whether or not incorporated)
which is under common control (as defined in Code Section 414(c)) with the
Employer; any organization (whether or not incorporated) which is a member of
an affiliated service group (as defined in Code Section 414(m)) which includes
the Employer; and any other entity required to be aggregated with the Employer
pursuant to Regulations under Code Section 414(o).

1

 

         1.4 “Aggregate Account” means, with respect to each Participant, the value
of all accounts maintained on behalf of a Participant, whether attributable to
Employer or Employee contributions, subject to the provisions of Section 9.2.

         1.5 “Anniversary Date” means the last day of the Plan Year.

         1.6 “Beneficiary” means the person (or entity) to whom the share of a
deceased Participant’s total account is payable, subject to the restrictions of
Sections 6.2 and 6.6.

         1.7 “Code” means the Internal Revenue Code of 1986, as amended or replaced
from time to time.

         1.8 “Compensation” with respect to any Participant means such
Participant’s compensation within the meaning of Code Section 415(c)(3) and
shall include those items of compensation described in Treas. Reg. §
1.415-2(d)(2) and shall exclude those items described in Treas. Reg. §
1.415-2(d)(3) and all of the following (even if includible in gross income):
reimbursements or other expense allowances, fringe benefits (cash and
non-cash), moving expenses, deferred compensation and welfare benefits.

                  For purposes of this Section, the determination of Compensation shall be
made by including amounts which are contributed by the Employer pursuant to a
salary reduction agreement and which are not includible in the gross income of
the Participant under Code Sections 125, 132(f)(4), 402(e)(3), 402(h)(1)(B),
403(b) or 457(b), and Employee contributions described in Code Section
414(h)(2) that are treated as Employer contributions.

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

                  Compensation in excess of $150,000 shall be disregarded. Such amount
shall be adjusted for increases in the cost of living in accordance with Code
Section 401(a)(17), except that the dollar increase in effect on January 1 of
any calendar year shall be effective for the Plan Year beginning with or within
such calendar year. For any short Plan Year the Compensation limit shall be an
amount equal to the Compensation limit for the calendar year in which the Plan
Year begins multiplied by the ratio obtained by dividing the number of full
months in the short Plan Year by twelve (12).

                  For Plan Years beginning after December 31, 1996, for purposes of
determining Compensation, the family member aggregation rules of Code Section
401(a)(17) and Code Section 414(q)(6) (as in effect prior to the Small Business
Job Protection Act of 1996) are eliminated.

                  If any class of Employees is excluded from the Plan, then Compensation for
any Employee who becomes eligible or ceases to be eligible to participate
during a Plan Year shall only include Compensation while the Employee is an
Eligible Employee.

                  For purposes of this Section, if the Plan is a plan described in Code
Section 413(c) or 414(f) (a plan maintained by more than one Employer), the
limitation applies separately with respect to the Compensation of any
Participant from each Employer maintaining the Plan.

2

 

                  For Plan Years prior to the Plan Year which includes the adoption date of
this amendment and restatement, Compensation means compensation determined
pursuant to the Plan then in effect.

         1.9 “Contract” or “Policy” means any life insurance policy, retirement
income policy or annuity contract (group or individual) issued pursuant to the
terms of the Plan. In the event of any conflict between the terms of this Plan
and the terms of any contract purchased hereunder, the Plan provisions shall
control.

         1.10 “Deferred Compensation” with respect to any Participant means the
amount of the Participant’s total Compensation which has been contributed to
the Plan in accordance with the Participant’s deferral election pursuant to
Section 4.2 excluding any such amounts distributed as excess “annual additions”
pursuant to Section 4.10(a).

         1.11 “Designated Investment Alternative” means a specific investment
identified by name by the Employer (or such other Fiduciary who has been given
the authority to select investment options) as an available investment under
the Plan to which Plan assets may be invested by the Trustee pursuant to the
investment direction of a Participant.

         1.12 “Directed Investment Option” means one or more of the following:

	 	 	 	         (a) a Designated Investment Alternative.
	 
	 	 	 	         (b) any other investment permitted by the Plan and the
Participant Direction Procedures to which Plan assets may be
invested by the Trustee pursuant to the investment direction of a
Participant.

         1.13 “Early Retirement Date.” This Plan does not provide for a retirement
date prior to Normal Retirement Date.

         1.14 “Elective Contribution” means the Employer contributions to the Plan
of Deferred Compensation excluding any such amounts distributed as excess
“annual additions” pursuant to Section 4.10(a). In addition, any Employer
Qualified Non-Elective Contribution made pursuant to Section 4.1(c) and Section
4.6(b) which is used to satisfy the “Actual Deferral Percentage” tests shall be
considered an Elective Contribution for purposes of the Plan. Any contributions
deemed to be Elective Contributions (whether or not used to satisfy the “Actual
Deferral Percentage” tests or the “Actual Contribution Percentage” tests) shall
be subject to the requirements of Sections 4.2(b) and 4.2(c) and shall further
be required to satisfy the nondiscrimination requirements of Regulation
1.401(k)-1(b)(5) and Regulation 1.401(m)-1(b)(5), the provisions of which are
specifically incorporated herein by reference.

         1.15 “Eligible Employee” means any Employee.

                  Employees who are Leased Employees within the meaning of Code Sections
414(n)(2) and 414(o)(2) shall not be eligible to participate in this Plan.

                  Employees who are nonresident aliens (within the meaning of Code Section
7701(b)(1)(B)) and who receive no earned income (within the meaning of Code
Section 911(d)(2)) from the Employer which constitutes income from sources
within the United

3

 

States (within the meaning of Code Section 861(a)(3)) shall
not be eligible to participate in this Plan.

                  Employees of Affiliated Employers shall not be eligible to participate in
this Plan unless such Affiliated Employers have specifically adopted this Plan
in writing.

                  Employees who are eligible to participate in any other defined
contribution plan which is intended to be qualified under Code Section 401(a)
shall not be eligible to participate in this Plan.

                  Notwithstanding any other provision of the Plan, individuals who are not
treated as common law employees by the Employer on its payroll records are
excluded from Plan participation even if a court or administrative agency
determines that such individuals are common law employees and not independent
contractors.

         1.16 “Employee” means any person who is employed by the Employer or
Affiliated Employer, and excludes any person who is employed as an independent
contractor. Employee shall include Leased Employees within the meaning of Code
Sections 414(n)(2) and 414(o)(2) unless such Leased Employees are covered by a
plan described in Code Section 414(n)(5) and such Leased Employees do not
constitute more than 20% of the recipient’s non-highly compensated work force.

         1.17 “Employer” means Ameritrade Holding Corporation and any successor
which shall maintain this Plan; and any predecessor which has maintained this
Plan. The Employer is a corporation, with principal offices in the State of
Nebraska. In addition, where appropriate, the term Employer shall include any
Participating Employer (as defined in Section 11.1) which shall adopt this
Plan.

         1.18 “Excess Aggregate Contributions” means, with respect to any Plan
Year, the excess of the aggregate amount of the Employer matching contributions
made pursuant to Section 4.1(b) and any qualified non-elective contributions or
elective deferrals taken into account pursuant to Section 4.7(c) on behalf of
Highly Compensated Participants for such Plan Year, over the maximum amount of
such contributions permitted under the limitations of Section 4.7(a)
(determined by hypothetically reducing contributions made on behalf of Highly
Compensated Participants in order of the actual contribution ratios beginning
with the highest of such ratios). Such determination shall be made after first
taking into account corrections of any Excess Deferred Compensation pursuant to
Section 4.2 and taking into account any adjustments of any Excess Contributions
pursuant to Section 4.6.

         1.19 “Excess Compensation” with respect to any Participant means the
Participant’s Compensation which is in excess of the Taxable Wage Base. For any
short year, the Taxable Wage Base shall be reduced by a fraction, the numerator
of which is the number of full months in the short year and the denominator of
which is twelve (12).

         1.20 “Excess Contributions” means, with respect to a Plan Year, the excess
of Elective Contributions used to satisfy the “Actual Deferral Percentage”
tests made on behalf of Highly Compensated Participants for the Plan Year over
the maximum amount of such contributions permitted under Section 4.5(a)
(determined by hypothetically reducing contributions made on behalf of Highly
Compensated Participants in order of the actual deferral ratios beginning with

4

 

the highest of such ratios). Excess Contributions shall be treated as an
“annual addition” pursuant to Section 4.9(b).

         1.21 “Excess Deferred Compensation” means, with respect to any taxable
year of a Participant, the excess of the aggregate amount of such Participant’s
Deferred Compensation and the elective deferrals pursuant to Section 4.2(f)
actually made on behalf of such Participant for such taxable year, over the
dollar limitation provided for in Code Section 402(g), which is incorporated
herein by reference. Excess Deferred Compensation shall be treated as an
“annual addition” pursuant to Section 4.9(b) when contributed to the Plan
unless distributed to the
affected Participant not later than the first April 15th following the
close of the Participant’s taxable year. Additionally, for purposes of Sections
9.2 and 4.4(f), Excess Deferred Compensation shall continue to be treated as
Employer contributions even if distributed pursuant to Section 4.2(f). However,
Excess Deferred Compensation of Non-Highly Compensated Participants is not
taken into account for purposes of Section 4.5(a) to the extent such Excess
Deferred Compensation occurs pursuant to Section 4.2(d).

         1.22 “Fiduciary” means any person who (a) exercises any discretionary
authority or discretionary control respecting management of the Plan or
exercises any authority or control respecting management or disposition of its
assets, (b) renders investment advice for a fee or other compensation, direct
or indirect, with respect to any monies or other property of the Plan or has
any authority or responsibility to do so, or (c) has any discretionary
authority or discretionary responsibility in the administration of the Plan.

         1.23 “Fiscal Year” means the Employer’s accounting year of 12 months
commencing on October 1st of each year and ending the following September 30th.

         1.24 “Forfeiture” means that portion of a Participant’s Account that is
not Vested, and occurs on the last day of the Plan Year in which the
Participant incurs five (5) consecutive 1-Year Breaks in Service. In addition,
the term Forfeiture shall also include amounts deemed to be Forfeitures
pursuant to any other provision of this Plan.

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

         1.26 “415 Compensation” with respect to any Participant means such
Participant’s wages, salaries, fees for professional services and other amounts
received (without regard to whether or not an amount is paid in cash) for
personal services actually rendered in the course of employment with the
Employer maintaining the Plan to the extent that the amounts are includible in
gross income (including, but not limited to, commissions paid salesmen,
compensation for services on the basis of a percentage of profits, commissions
on insurance premiums, tips, bonuses, fringe benefits, and reimbursements or
other expense allowances under a nonaccountable plan as described in Regulation
1.62-2(c)) for a Plan Year.

                  “415 Compensation” shall exclude (a)(1) contributions made by the Employer
to a plan of deferred compensation to the extent that, the contributions are
not includible in the gross income of the Participant for the taxable year in
which contributed, (2) Employer contributions made on behalf of an Employee to
a simplified employee pension plan described in Code Section 408(k) to the
extent such contributions are excludable from the Employee’s gross income, (3)
any distributions from a plan of deferred compensation; (b) amounts realized
from

5

 

the exercise of a non-qualified stock option, or when restricted stock (or
property) held by an Employee either becomes freely transferable or is no
longer subject to a substantial risk of forfeiture; (c) amounts realized from
the sale, exchange or other disposition of stock acquired under a qualified
stock option; and (d) other amounts which receive special tax benefits, or
contributions made by the Employer (whether or not under a salary reduction
agreement) towards the purchase of any annuity contract described in Code
Section 403(b) (whether or not the contributions are actually excludable from
the gross income of the Employee).

                  For “limitation years” beginning after December 31, 1997, for purposes of
this Section, the determination of “415 Compensation” shall include any
elective deferral (as defined in Code Section 402(g)(3)), and any amount which
is contributed or deferred by the Employer at
the election of the Participant and which is not includible in the gross
income of the Participant by reason of Code Sections 125, 132(f)(4) or 457.

         1.27 “414(s) Compensation” means any definition of compensation that
satisfies the nondiscrimination requirements of Code Section 414(s) and the
Regulations thereunder. The period for determining 414(s) Compensation must be
either the Plan Year or the calendar year ending with or within the Plan Year.
An Employer may further limit the period taken into account to that part of the
Plan Year or calendar year in which an Employee was a Participant in the
component of the Plan being tested. The period used to determine 414(s)
Compensation must be applied uniformly to all Participants for the Plan Year.

                  For Plan Years beginning after December 31, 1996, for purposes of this
Section, the family member aggregation rules of Code Section 414(q)(6) (as in
effect prior to the Small Business Job Protection Act of 1996) are eliminated.

         1.28 “Highly Compensated Employee” means, for Plan Years beginning after
December 31, 1996, an Employee described in Code Section 414(q) and the
Regulations thereunder, and generally means any Employee who:

	 	 	 	         (a) was a “five percent owner” as defined in Section 1.33(c)
at any time during the “determination year” or the “look-back
year”; or
	 
	 	 	 	         (b) for the “look-back year” had “415 Compensation” from the
Employer in excess of $80,000. The $80,000 amount is adjusted at
the same time and in the same manner as under Code Section 415(d),
except that the base period is the calendar quarter ending
September 30, 1996.

                  The “determination year” means the Plan Year for which testing is being
performed, and the “look-back year” means the immediately preceding twelve (12)
month period.

                  Notwithstanding the above, for the first Plan Year beginning after
December 31, 1996, the “look-back year” shall be the calendar year ending with
or within the Plan Year for which testing is being performed, and the
“determination year” (if applicable) shall be the period of time, if any, which
extends beyond the “look-back year” and ends on the last day of the Plan Year
for which testing is being performed (the “lag period”).

6

 

                  A highly compensated former Employee is based on the rules applicable to
determining Highly Compensated Employee status as in effect for the
“determination year,” in accordance with Regulation 1.414(q)-1T, A-4 and IRS
Notice 97-45 (or any superseding guidance).

                  In determining whether an Employee is a Highly Compensated Employee for a
Plan Year beginning in 1997, the amendments to Code Section 414(q) stated above
are treated as having been in effect for years beginning in 1996.

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

                  In determining who is a Highly Compensated Employee, Employees who are
non-resident aliens and who received no earned income (within the meaning of
Code Section 911(d)(2)) from the Employer constituting United States source
income within the meaning of Code Section 861(a)(3) shall not be treated as
Employees. Additionally, all Affiliated Employers shall be taken into account
as a single employer and Leased Employees within the meaning of Code Sections
414(n)(2) and 414(o)(2) shall be considered Employees unless such Leased
Employees are covered by a plan described in Code Section 414(n)(5) and are not
covered in any qualified plan maintained by the Employer. The exclusion of
Leased Employees for this purpose shall be applied on a uniform and consistent
basis for all of the Employer’s retirement plans. Highly Compensated Former
Employees shall be treated as Highly Compensated Employees without regard to
whether they performed services during the “determination year.”

         1.29 “Highly Compensated Participant” means any Highly Compensated
Employee who is eligible to participate in the component of the Plan being
tested.

         1.30 “Hour of Service” means (1) each hour for which an Employee is
directly or indirectly compensated or entitled to compensation by the Employer
for the performance of duties (these hours will be credited to the Employee for
the computation period in which the duties are performed); (2) each hour for
which an Employee is directly or indirectly compensated or entitled to
compensation by the Employer (irrespective of whether the employment
relationship has terminated) for reasons other than performance of duties (such
as vacation, holidays, sickness, jury duty, disability, lay-off, military duty
or leave of absence) during the applicable computation period (these hours will
be calculated and credited pursuant to Department of Labor regulation
2530.200b-2 which is incorporated herein by reference); (3) each hour for which
back pay is awarded or agreed to by the Employer without regard to mitigation
of damages (these hours will be credited to the Employee for the computation
period or periods to which the award or agreement pertains rather than the
computation period in which the award, agreement or payment is made). The same
Hours of Service shall not be credited both under (1) or (2), as the case may
be, and under (3).

                  Notwithstanding (2) above, (i) no more than 501 Hours of Service are
required to be credited to an Employee on account of any single continuous
period during which the Employee performs no duties (whether or not such period
occurs in a single computation period);

7

 

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

                  For purposes of (2) above, a payment shall be deemed to be made by or due
from the Employer regardless of whether such payment is made by or due from the
Employer directly, or indirectly through, among others, a trust fund, or
insurer, to which the Employer contributes or pays premiums and regardless of
whether contributions made or due to the trust fund, insurer, or other entity
are for the benefit of particular Employees or are on behalf of a group of
Employees in the aggregate.

                  For purposes of this Section, Hours of Service will be credited for
employment with other Affiliated Employers. The provisions of Department of
Labor regulations 2530.200b-2(b) and (c) are incorporated herein by reference.

         1.31 “Income” means the income or losses allocable to Excess Deferred
Compensation, Excess Contributions or Excess Aggregate Contributions which
amount shall be allocated in the same manner as income or losses are allocated
pursuant to Section 4.4(e).

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

         1.33 “Key Employee” means an Employee as defined in Code Section 416(i)
and the Regulations thereunder. Generally, any Employee or former Employee (as
well as each of the Employee’s or former Employee’s Beneficiaries) is
considered a Key Employee if the Employee, at any time during the Plan Year
that contains the “Determination Date” or any of the preceding four (4) Plan
Years, has been included in one of the following categories:

	 	 	 	         (a) an officer of the Employer (as that term is defined within
the meaning of the Regulations under Code Section 416) having
annual “415 Compensation” greater than 50 percent of the amount in
effect under Code Section 415(b)(1)(A) for any such Plan Year.
	 
	 	 	 	         (b) one of the ten employees having annual “415 Compensation”
from the Employer for a Plan Year greater than the dollar
limitation in effect under Code Section 415(c)(1)(A) for the
calendar year in which such Plan Year ends and owning (or
considered as owning within the meaning of Code Section 318) both
more than one-half percent interest and the largest interests in
the Employer.
	 
	 	 	 	         (c) a “five percent owner” of the Employer. “Five percent
owner” means any person who owns (or is considered as owning within
the meaning of Code Section 318) more than five percent (5%) of the
outstanding stock of the Employer or stock possessing more than
five percent (5%) of the total combined

8

 

	 	 	 	voting power of all stock
of the Employer or, in the case of an unincorporated business, any
person who owns more than five percent (5%) of the capital or
profits interest in the Employer. In determining percentage
ownership hereunder, employers that would otherwise be aggregated
under Code Sections 414(b), (c), (m) and (o) shall be treated as
separate employers.
	 
	 	 	 	         (d) a “one percent owner” of the Employer having an annual
“415 Compensation” from the Employer of more than $150,000. “One
percent owner” means any person who owns (or is considered as
owning within the meaning of Code Section 318) more than one
percent (1%) of the outstanding stock of the Employer or stock
possessing more than one percent (1%) of the total combined voting
power of all stock of the Employer or, in the case of an
unincorporated business, any person who owns more than one percent
(1%) of the capital or profits interest in the Employer. In
determining percentage ownership hereunder, employers that would
otherwise be aggregated under Code Sections 414(b), (c), (m) and
(o) shall be treated as separate employers. However, in determining
whether an individual has “415 Compensation” of more than $150,000,
“415 Compensation” from each employer required to be aggregated
under Code Sections 414(b), (c), (m) and (o) shall be taken into
account.

                  For purposes of this Section, the determination of “415 Compensation”
shall be made by including amounts which are contributed by the Employer
pursuant to a salary reduction agreement and which are not includible in the
gross income of the Participant under Code Sections 125, 132(f)(4), 402(e)(3),
402(h)(1)(B), 403(b) or 457(b), and Employee contributions described in Code
Section 414(h)(2) that are treated as Employer contributions.

         1.34 “Late Retirement Date” means the first day of the month coinciding
with or next following a Participant’s actual Retirement Date after having
reached Normal Retirement Date.

         1.35 “Leased Employee” means, for Plan Years beginning after December 31,
1996, any person (other than an Employee of the recipient Employer) who
pursuant to an agreement between the recipient Employer and any other person or
entity (“leasing organization”) has performed services for the recipient (or
for the recipient and related persons determined in accordance with Code
Section 414(n)(6)) on a substantially full time basis for a period of at least
one year, and such services are performed under primary direction or control by
the recipient Employer. Contributions or benefits provided a Leased Employee by
the leasing organization which are attributable to services performed for the
recipient Employer shall be treated as provided by the recipient Employer.
Furthermore, Compensation for a Leased Employee shall only include Compensation
from the leasing organization that is attributable to services performed for
the recipient Employer. A Leased Employee shall not be considered an Employee
of the recipient Employer:

	 	 	 	         (a) if such employee is covered by a money purchase pension
plan providing:

	 	 	 	(1) a nonintegrated employer contribution rate of at least
10% of compensation, as defined in Code Section 415(c)(3),
but for Plan Years beginning prior to January 1, 1998,
including amounts which are contributed by the Employer
pursuant to a salary reduction agreement and

9

 

	 	 	 	which are not
includible in the gross income of the Participant under Code
Sections 125, 402(e)(3), 402(h)(1)(B), 403(b) or 457(b), and
Employee contributions described in Code Section 414(h)(2)
that are treated as Employer contributions, but for Plan
Years beginning prior to January 1, 2001, excluding amounts
that are not includible in gross income under Code Section
132(f)(4);
	 
	 	 	 	(2) immediate participation;
	 
	 	 	 	(3) full and immediate vesting; and

	 	 	 	         (b) if Leased Employees do not constitute more than 20% of the
recipient Employer’s nonhighly compensated work force.

         1.36 “Non-Elective Contribution” means the Employer contributions to the
Plan excluding, however, contributions made pursuant to the Participant’s
deferral election provided for in Section 4.2 and any Qualified Non-Elective
Contribution used in the “Actual Deferral Percentage” tests.

         1.37 “Non-Highly Compensated Participant” means, for Plan Years beginning
after December 31, 1996, any Participant who is not a Highly Compensated
Employee. However, for purposes of Section 4.5(a) and Section 4.6, if the prior
year testing method is used, a Non-Highly
Compensated Participant shall be determined using the definition of Highly
Compensated Employee in effect for the preceding Plan Year.

         1.38 “Non-Key Employee” means any Employee or former Employee (and such
Employee’s or former Employee’s Beneficiaries) who is not, and has never been a
Key Employee.

         1.39 “Normal Retirement Age” means the Participant’s 65th birthday, or the
Participant’s 5th anniversary of joining the Plan, if later. A Participant
shall become fully Vested in the Participant’s Account upon attaining Normal
Retirement Age.

         1.40 “Normal Retirement Date” means the first day of the month coinciding
with or next following the Participant’s Normal Retirement Age.

         1.41 “1-Year Break in Service” means the applicable computation period
during which an Employee has not completed more than 500 Hours of Service with
the Employer. Further, solely for the purpose of determining whether a
Participant has incurred a 1-Year Break in Service, Hours of Service shall be
recognized for “authorized leaves of absence” and “maternity and paternity
leaves of absence.” Years of Service and 1-Year Breaks in Service shall be
measured on the same computation period.

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

                  A “maternity or paternity leave of absence” means an absence from work for
any period by reason of the Employee’s pregnancy, birth of the Employee’s
child, placement of a

10

 

child with the Employee in connection with the adoption
of such child, or any absence for the purpose of caring for such child for a
period immediately following such birth or placement. For this purpose, Hours
of Service shall be credited for the computation period in which the absence
from work begins, only if credit therefore is necessary to prevent the Employee
from incurring a 1-Year Break in Service, or, in any other case, in the
immediately following computation period. The Hours of Service credited for a
“maternity or paternity leave of absence” shall be those which would normally
have been credited but for such absence, or, in any case in which the
Administrator is unable to determine such hours normally credited, eight (8)
Hours of Service per day. The total Hours of Service required to be credited
for a “maternity or paternity leave of absence” shall not exceed the number of
Hours of Service needed to prevent the Employee from incurring a 1-Year Break
in Service.

         1.42 “Participant” means any Eligible Employee who participates in the
Plan and has not for any reason become ineligible to participate further in the
Plan.

         1.43 “Participant Direction Procedures” means such instructions,
guidelines or policies, the terms of which are incorporated herein, as shall be
established pursuant to Section 4.12 and observed by the Administrator and
applied and provided to Participants who have Participant Directed Accounts.

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

                  A separate accounting shall be maintained with respect to that portion of
the Participant’s Account attributable to Employer matching contributions made
pursuant to Section 4.1(b), Employer discretionary contributions made pursuant
to Section 4.1(d) and any Employer Qualified Non-Elective Contributions.

         1.45 “Participant’s Combined Account” means the total aggregate amount of
each Participant’s Elective Account and Participant’s Account.

         1.46 “Participant’s Directed Account” means that portion of a
Participant’s interest in the Plan with respect to which the Participant has
directed the investment in accordance with the Participant Direction Procedure.

         1.47 “Participant’s Elective Account” means the account established and
maintained by the Administrator for each Participant with respect to the
Participant’s total interest in the Plan and Trust resulting from the Employer
Elective Contributions used to satisfy the “Actual Deferral Percentage” tests.
A separate accounting shall be maintained with respect to that portion of the
Participant’s Elective Account attributable to such Elective Contributions
pursuant to Section 4.2 and any Employer Qualified Non-Elective Contributions.

         1.48 “Participant’s Transfer/Rollover Account” means the account
established and maintained by the Administrator for each Participant with
respect to the Participant’s total interest in the Plan resulting from amounts
transferred to this Plan from a direct plan-to-plan transfer and/or with
respect to such Participant’s interest in the Plan resulting from amounts
transferred from another qualified plan or “conduit” Individual Retirement
Account in accordance with Section 4.11.

11

 

                  A separate accounting shall be maintained with respect to that portion of
the Participant’s Transfer/Rollover Account attributable to transfers (within
the meaning of Code Section 414(l)) and “rollovers.”

         1.49 “Plan” means this instrument, including all amendments thereto.

         1.50 “Plan Year” means the Plan’s accounting year of twelve (12) months
commencing on January 1st of each year and ending the following December 31st.

         1.51 “Qualified Non-Elective Contribution” means any Employer
contributions made pursuant to Section 4.1(c) and Section 4.6(b) and Section
4.8(f). Such contributions shall be considered an Elective Contribution for the
purposes of the Plan and may be used to satisfy the “Actual Deferral
Percentage” tests or the “Actual Contribution Percentage” tests.

         1.52 “Regulation” means the Income Tax Regulations as promulgated by the
Secretary of the Treasury or a delegate of the Secretary of the Treasury, and
as amended from time to time.

         1.53 “Retired Participant” means a person who has been a Participant, but
who has become entitled to retirement benefits under the Plan.

         1.54 “Retirement Date” means the date as of which a Participant retires
whether such retirement occurs on a Participant’s Normal Retirement Date or
Late Retirement Date (see Section 6.1).

         1.55 “Taxable Wage Base” means, with respect to any Plan Year, the
contribution and benefit base in effect under Section 230 of the Social
Security Act at the beginning of the Plan Year.

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

         1.57 “Top Heavy Plan” means a plan described in Section 9.2(a).

         1.58 “Top Heavy Plan Year” means a Plan Year during which the Plan is a
Top Heavy Plan.

         1.59 “Trustee” means the person or entity named as trustee herein or in
any separate trust forming a part of this Plan, and any successors.

         1.60 “Trust Fund” means the assets of the Plan and Trust as the same shall
exist from time to time.

         1.61 “Valuation Date” means the Anniversary Date and may include any other
date or dates deemed necessary or appropriate by the Administrator for the
valuation of the Participants’ accounts during the Plan Year, which may include
any day that the Trustee, any transfer agent appointed by the Trustee or the
Employer or any stock exchange used by such agent, are open for business.

12

 

         1.62 “Vested” means the nonforfeitable portion of any account maintained
on behalf of a Participant.

         1.63 “Year of Service” means the computation period of twelve (12)
consecutive months, herein set forth, during which an Employee has at least
1000 Hours of Service.

                     For purposes of eligibility for participation, the initial computation
period shall begin with the date on which the Employee first performs an Hour
of Service. The participation computation period beginning after a 1-Year Break
in Service shall be measured from the date on which an Employee again performs
an Hour of Service. The participation computation period shall shift to the
Plan Year which includes the anniversary of the date on which the Employee
first performed an Hour of Service. An Employee who is credited with the
required Hours of Service in both the initial computation period (or the
computation period beginning after a 1-Year Break in Service) and the Plan Year
which includes the anniversary of the date on which the Employee first
performed an Hour of Service, shall be credited with two (2) Years of Service
for purposes of eligibility to participate.

                     For vesting purposes, the computation periods shall be the Plan Year,
including periods prior to the Effective Date of the Plan.

                     The computation period shall be the Plan Year if not otherwise set forth
herein.

                     Notwithstanding the foregoing, for any short Plan Year, the determination
of whether an Employee has completed a Year of Service shall be made in
accordance with Department of Labor regulation 2530.203-2(c). However, in
determining whether an Employee has completed a Year of Service for benefit
accrual purposes in the short Plan Year, the number of the Hours of Service
required shall be proportionately reduced based on the number of full months in
the short Plan Year.

                     Years of Service with any Affiliated Employer shall be recognized.

ARTICLE II

ADMINISTRATION

2.1 POWERS AND RESPONSIBILITIES OF THE EMPLOYER

		
	 	         (a) In addition to the general powers and responsibilities
otherwise provided for in this Plan, the Employer shall be
empowered to appoint and remove the Trustee and the Administrator
from time to time as it deems necessary for the proper
administration of the Plan to ensure that the Plan is being
operated for the exclusive benefit of the Participants and their
Beneficiaries in accordance with the terms of the Plan, the Code,
and the Act. The Employer may appoint counsel, specialists,
advisers, agents (including any nonfiduciary agent) and other
persons as the Employer deems necessary or desirable in connection
with the exercise of its fiduciary duties under this Plan. The
Employer may compensate such agents or advisers from the assets of
the Plan as fiduciary expenses (but not including any business
(settlor) expenses of the Employer), to the extent not paid by the
Employer.

13

 

		
	 	         (b) The Employer may, by written agreement or designation,
appoint at its option an Investment Manager (qualified under the
Investment Company
Act of 1940 as amended), investment adviser, or other agent to
provide direction to the Trustee with respect to any or all of the
Plan assets. Such appointment shall be given by the Employer in
writing in a form acceptable to the Trustee and shall specifically
identify the Plan assets with respect to which the Investment
Manager or other agent shall have authority to direct the
investment.
	 
	 	         (c) The Employer shall establish a “funding policy and
method,” i.e., it shall determine whether the Plan has a short run
need for liquidity (e.g., to pay benefits) or whether liquidity is
a long run goal and investment growth (and stability of same) is a
more current need, or shall appoint a qualified person to do so.
The Employer or its delegate shall communicate such needs and goals
to the Trustee, who shall coordinate such Plan needs with its
investment policy. The communication of such a “funding policy and
method” shall not, however, constitute a directive to the Trustee
as to the investment of the Trust Funds. Such “funding policy and
method” shall be consistent with the objectives of this Plan and
with the requirements of Title I of the Act.
	 
	 	         (d) The Employer shall periodically review the performance of
any Fiduciary or other person to whom duties have been delegated or
allocated by it under the provisions of this Plan or pursuant to
procedures established hereunder. This requirement may be satisfied
by formal periodic review by the Employer or by a qualified person
specifically designated by the Employer, through day-to-day conduct
and evaluation, or through other appropriate ways.

2.2 DESIGNATION OF ADMINISTRATIVE AUTHORITY

                     The Employer shall be the Administrator. The Employer may appoint any
person, including, but not limited to, the Employees of the Employer, to
perform the duties of the Administrator. Any person so appointed shall signify
acceptance by filing written acceptance with the Employer. Upon the resignation
or removal of any individual performing the duties of the Administrator, the
Employer may designate a successor.

2.3 POWERS AND DUTIES OF THE ADMINISTRATOR

                     The Employer shall be the Administrator. The Employer will appoint any
person or persons, including, but not limited to, the Employees of the
Employer, to perform the duties of the Administrator. Any person so appointed
shall signify acceptance by filing written acceptance with the Employer. Upon
the resignation or removal of any individual performing the duties of the
Administrator, the Employer may designate a successor. Any Administrator
hereunder may assign any of its duties hereunder to any Employees of the
Employer or such other persons deemed appropriate.

                     The primary responsibility of the Administrator is to administer the Plan
for the exclusive benefit of the Participants and their Beneficiaries, subject
to the specific terms of the Plan. The Administrator shall administer the Plan
in accordance with its terms and shall have the power and discretion to
construe the terms of the Plan and to determine all questions arising in
connection with the administration, interpretation, and application of the
Plan. Any such

14

 

determination by the Administrator shall be conclusive and
binding upon all persons. The Administrator may establish procedures, correct
any defect, supply any information, or reconcile any inconsistency in such
manner and to such extent as shall be deemed necessary or advisable to carry
out the purpose of the Plan; provided, however, that any procedure,
discretionary act, interpretation or construction shall be done in a
nondiscriminatory manner based upon uniform
principles consistently applied and shall be consistent with the intent
that the Plan shall continue to be deemed a qualified plan under the terms of
Code Section 401(a), and shall comply with the terms of the Act and all
regulations issued pursuant thereto. The Administrator shall have all powers
necessary or appropriate to accomplish the Administrator’s duties under the
Plan.

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

		
	 	         (a) the discretion to conclusively determine all questions
arising under the Plan including the power to determine eligibility
of Employees and the rights of Participants and other persons
entitled to benefits under the Plan and their respective benefits,
and to remedy ambiguities, inconsistencies or omissions;
	 
	 	         (b) to compute, certify, and direct the Trustee with respect
to the amount and the kind of benefits to which any Participant
shall be entitled hereunder;
	 
	 	         (c) to authorize and direct the Trustee with respect to all
discretionary or otherwise directed disbursements from the Trust;
	 
	 	         (d) to maintain all necessary records for the administration
of the Plan;
	 
	 	         (e) to conclusively interpret the provisions of the Plan and
to make and publish such rules for regulation of the Plan as are
consistent with the terms hereof;
	 
	 	         (f) to determine the size and type of any Contract to be
purchased from any insurer, and to designate the insurer from which
such Contract shall be purchased;
	 
	 	         (g) to compute and certify to the Employer and to the Trustee
from time to time the sums of money necessary or desirable to be
contributed to the Plan;
	 
	 	         (h) to consult with the Employer and the Trustee regarding the
short and long-term liquidity needs of the Plan in order that the
Trustee can exercise any investment discretion in a manner designed
to accomplish specific objectives;
	 
	 	         (i) to prepare and implement a procedure to notify Eligible
Employees that they may elect to have a portion of their
Compensation deferred or paid to them in cash;
	 
	 	         (j) to act as the named Fiduciary responsible for
communications with Participants as needed to maintain Plan
compliance with Act Section 404(c), 

15

 

		
	 	including, but not limited to,
the receipt and transmitting of Participant’s directions as to the
investment of their account(s) under the Plan and the formulation
of policies, rules, and procedures pursuant to which Participants
may give investment instructions with respect to the investment of
their accounts;
	 
	 	         (k) to determine the validity of, and take appropriate action
with respect to, any qualified domestic relations order received by
it; and
	 
	 	         (l) to assist any Participant regarding the Participant’s
rights, benefits, or elections available under the Plan.

                     Notwithstanding any other provision of the Plan to the contrary, benefits
under the Plan will be paid only if the Administrator, in its discretion,
determines that the applicant is entitled to them under the terms of the Plan.

2.4 RECORDS AND REPORTS

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

2.5 APPOINTMENT OF ADVISERS

                     The Administrator, or the Trustee with the consent of the Administrator,
may appoint counsel, specialists, advisers, agents (including nonfiduciary
agents) and other persons as the Administrator or the Trustee deems necessary
or desirable in connection with the administration of this Plan, including but
not limited to agents and advisers to assist with the administration and
management of the Plan, and thereby to provide, among such other duties as the
Administrator may appoint, assistance with maintaining Plan records and the
providing of investment information to the Plan’s investment fiduciaries and to
Plan Participants.

2.6 PAYMENT OF EXPENSES

                     All expenses of administration may be paid out of the Trust Fund unless
paid by the Employer. Such expenses shall include any expenses incident to the
functioning of the Administrator, or any person or persons retained or
appointed by any Named Fiduciary incident to the exercise of their duties under
the Plan, including, but not limited to, fees of accountants, counsel,
Investment Managers, agents (including nonfiduciary agents) appointed for the
purpose of assisting the Administrator or the Trustee in carrying out the
instructions of Participants as to the directed investment of their accounts
and other specialists and their agents, the costs of any bonds required
pursuant to Act Section 412, and other costs of administering the Plan. Until
paid, the expenses shall constitute a liability of the Trust Fund.

2.7 CLAIMS PROCEDURE

                     Claims for benefits under the Plan may be filed in writing with the
Administrator. Written notice of the disposition of a claim shall be furnished
to the claimant within ninety (90)

16

 

days after the application is filed, or such
period as is required by applicable law or Department of Labor regulation. In
the event the claim is denied, the reasons for the denial shall be specifically
set forth in the notice in language calculated to be understood by the
claimant, pertinent provisions of the Plan shall be cited, and, where
appropriate, an explanation as to how the claimant can perfect the claim will
be provided. In addition, the claimant shall be furnished with an explanation
of the Plan’s claims review procedure.

2.8 CLAIMS REVIEW PROCEDURE

                     Claims Made on or Before December 31, 2001. Any Employee, former
Employee, or Beneficiary of either, who has been denied a benefit by a decision
of the
Administrator pursuant to Section 2.7 shall be entitled to request the
Administrator to give further consideration to a claim by filing with the
Administrator a written request for a hearing. Such request, together with a
written statement of the reasons why the claimant believes the claim should be
allowed, shall be filed with the Administrator no later than sixty (60) days
after receipt of the written notification provided for in Section 2.7. The
Administrator shall then conduct a hearing within the next sixty (60) days, at
which the claimant may be represented by an attorney or any other
representative of such claimant’s choosing and expense and at which the
claimant shall have an opportunity to submit written and oral evidence and
arguments in support of the claim. At the hearing (or prior thereto upon five
(5) business days written notice to the Administrator) the claimant or the
claimant’s representative shall have an opportunity to review all documents in
the possession of the Administrator which are pertinent to the claim at issue
and its disallowance. Either the claimant or the Administrator may cause a
court reporter to attend the hearing and record the proceedings. In such event,
a complete written transcript of the proceedings shall be furnished to both
parties by the court reporter. The full expense of any such court reporter and
such transcripts shall be borne by the party causing the court reporter to
attend the hearing. A final decision as to the allowance of the claim shall be
made by the Administrator within sixty (60) days of receipt of the appeal
(unless there has been an extension of sixty (60) days due to special
circumstances, provided the delay and the special circumstances occasioning it
are communicated to the claimant within the sixty (60) day period). Such
communication shall be written in a manner calculated to be understood by the
claimant and shall include specific reasons for the decision and specific
references to the pertinent Plan provisions on which the decision is based.

                     Claims Made on or after January 1, 2002. For purposes of this subsection,
the following words or phrases when capitalized have the meaning set forth
below:

                     “Adverse Benefit Determination” means a denial, reduction or the
termination of, or a failure to provide or make payment (in whole or in part)
with respect to a Claim for a benefit, including any such denial, reduction,
termination, or failure to provide or make payment that is based on a
determination of a Participant’s or Beneficiary’s eligibility to participate in
the Plan.

                     “Claim” means a request for a benefit or eligibility to participate in the
Plan, made by a Claimant in accordance with the Plan’s procedures for filing
Claims in Section 2.7.

                     “Notice or Notification” means the delivery or furnishing of information
to an individual in a manner that satisfies applicable Department of Labor
regulations with respect to material required to be furnished or made available
to an individual.

17

 

                     “Relevant Documents” include documents, records or other information with
respect to a Claim that were relied upon by the Administrator in making the
benefit determination; were submitted to, considered by or generated for the
Administrator in the course of making the benefit determination, without regard
to whether such documents, records or other information were relied upon by the
Administrator in making the benefit determination; demonstrate compliance with
administrative processes and safeguards required in making the benefit
determination; or constitute a statement of policy or guidance with respect to
the Plan concerning the denied benefit for the Participant’s circumstances,
without regard to whether such advice was relied upon by the Administrator in
making the benefit determination.

                      In order for a communication from a claimant to constitute a valid Claim,
it must satisfy the following:

		
	 	Any Claim submitted by a claimant must be in writing on the
appropriate Claim form (or in such other manner acceptable to the
Administrator) and delivered, along with any supporting comments,
documents, records and other information, to the Administrator in
person or by mail postage paid to the address for the Administrator
provided in the summary plan description.
	 
	 	Claims and appeals of denied Claims may be pursued by a Participant
or an authorized representative of the Participant (each of whom
will be referred to as a claimant). However, the Plan may
establish reasonable procedures for determining whether an
individual has been authorized to act on behalf of a Participant.

                     Initial Claim Review. The initial Claim review will be conducted by the
Administrator with or without the presence of the claimant as determined by the
Administrator in its discretion. The Administrator will consider the
applicable terms and provisions of the Plan and amendments to the Plan,
information and evidence that is presented by the Claimant and any other
information it deems relevant. In reviewing the Claim, the Administrator will
also consider, and be consistent with prior determinations of, Claims from
other Claimants who were similarly situated and which have been processed
through the Plan’s claims and appeals procedures within the past 24 months.

                     Initial Benefit Determination. The Administrator will notify the claimant
of the Plan’s determination within a reasonable period of time, but in any
event (except as described below) within 90 days after receipt of the Claim by
the Administrator. The Administrator may extend the period for making the
benefit determination by 90 days if it determines that such an extension is
necessary due to matters beyond the control of the Plan and if it notifies the
claimant prior to the expiration of the initial 90-day period of circumstances
requiring the extension of time and the date by which the Administrator expects
to render a decision.

                     Notification of Adverse Benefit Determination. The Administrator will
provide a claimant with written or electronic Notice of Adverse Benefit
Determination in accordance with applicable Department of Labor regulations.
The notification will set forth in a manner calculated to be understood by the
claimant the specific reason or reasons for the Adverse Benefit Determination;
reference to the specific provision or provisions of the Plan on which the
determination is based; a description of any additional material or information
necessary for the

18

 

claimant to perfect the Claim and an explanation of why such
material or information is necessary; and a description of the Plan’s review
procedures and the time limits applicable to such procedures, including a
statement of the claimant’s right to bring a civil action under Section 502(a)
of the Act following an Adverse Benefit Determination on Review.

                     Procedure for Filing a Review of an Adverse Benefit Determination. Any
appeal of an Adverse Benefit Determination by a claimant must be brought to the
Administrator within 60 days after receipt of the Notice of the Adverse Benefit
Determination. Failure to appeal within such 60-day period will be deemed to
be a failure to exhaust all administrative remedies under the Plan. The appeal
must be in writing utilizing the appropriate form provided by the Administrator
(or in such other manner acceptable to the Administrator), provided, however,
that if the Administrator does not provide the appropriate form, no particular
form is required to be utilized by the Participant. The appeal must be filed
with the Administrator at the address listed in the summary plan description.
A claimant will have the opportunity to submit written comments, documents,
records and other information relating to the Claim.

                     Review Procedures for Adverse Benefit Determinations. The Administrator
will provide a review that takes into account all comments, documents, records
and other information submitted by the claimant without regard to whether such
information was submitted or considered in the initial benefit determination.
The claimant will be provided, upon request and free of charge, reasonable
access to and copies of all Relevant Documents. The review procedure may not
require more than two levels of appeals of an Adverse Benefit Determination.

                     Timing and Notification of Benefit Determination on Review. The
Administrator will notify the claimant within a reasonable period of time, but
in any event within 60 days after the claimant’s request for a review, unless
the Administrator determines that special circumstances require an extension of
time for processing the review of the Adverse Benefit Determination. If the
Administrator determines that an extension is required, written Notice will be
furnished to the claimant prior to the end of the initial 60-day period
indicating the special circumstances requiring an extension of time and the
date by which the Plan expects to render the determination on review, which in
any event will be within 60 days from the end of the initial 60-day period. If
such an extension is necessary due to a failure of the Claimant to submit the
information necessary to decide the Claim, the period in which the Committee is
required to make a decision will be tolled from the date on which the
notification is sent to the claimant until the claimant adequately responds to
the request for additional information.

                     Notification of Benefit Determination on Review. The Committee will
provide a written or electronic Notice of Plan’s Benefit Determination On
Review, in accordance with applicable Department of Labor regulations. The
Notice will set forth the specific reason or reasons for the Adverse Benefit
Determination; reference to the specific provision or provisions of the Plan on
which the determination is based; a statement that the claimant is entitled to
receive, upon request and free of charge, reasonable access to and copies of
all Relevant Documents; and a statement of the claimant’s right to bring a
civil action under Section 502(a) of the Act following an Adverse Benefit
Determination on Review.

                     Statute of Limitations. No cause of action may be brought by a claimant
who has received an Adverse Benefit Determination later than two years
following the date of such Adverse Benefit Determination.

19

 

                  Administrator’s Decision Final. Subject to applicable law, any
interpretation of the provisions of the Plan and any decision on any matter
within the discretion of the Administrator made by the Administrator shall be
binding on all persons. Any misstatement or other mistake of fact shall be
corrected when it becomes known and the Administrator shall make such
adjustment on account thereof as it considers equitable and practicable.

ARTICLE III

ELIGIBILITY

3.1 CONDITIONS OF ELIGIBILITY

                     Any Eligible Employee, with respect to salary reduction elections pursuant
to Section 4.2, who has attained age 21 shall be eligible to participate
hereunder as of the first day of the month coinciding with or next following
the Employee’s date of hire. However, any Employee who was a Participant in the
Plan prior to the effective date of this amendment and restatement shall
continue to participate in the Plan.

                     However, with respect to Employer matching contributions pursuant to
Section 4.1(b), any Eligible Employee who has attained age 21 and has completed
more than 500
Hours of Service and is employed on the last day of the Plan Year shall be
eligible to receive Employer matching contributions. With respect to Employer
Qualified Non-Elective Contributions pursuant to Section 4.1(c) and Employer
discretionary contributions pursuant to Section 4.1(d), any Eligible Employee
who has attained age 21 and has completed one (1) Year of Service and is
employed on the last day of the Plan Year shall be eligible to receive Employer
Qualified Non-Elective Contributions and Employer discretionary contributions.
However, any employee who was eligible to receive an Employer matching
contribution, an Employer Qualified Non-Elective Contribution, and/or an
Employer discretionary contribution prior to the effective date of this
amendment and restatement shall retain said eligibility.

3.2 EFFECTIVE DATE OF PARTICIPATION

                     An Eligible Employee shall become a Participant effective as of the first
day of the month coinciding with or next following the date on which such
Employee met the eligibility requirements of Section 3.1, provided said
Employee was still employed as of such date (or if not employed on such date,
as of the date of rehire if a 1-Year Break in Service has not occurred or, if
later, the date that the Employee would have otherwise entered the Plan had the
Employee not terminated employment).

                     If an Employee, who has satisfied the Plan’s eligibility requirements and
would otherwise have become a Participant, shall go from a classification of a
noneligible Employee to an Eligible Employee, such Employee shall become a
Participant on the date such Employee becomes an Eligible Employee or, if
later, the date that the Employee would have otherwise entered the Plan had the
Employee always been an Eligible Employee.

                     If an Employee, who has satisfied the Plan’s eligibility requirements and
would otherwise become a Participant, shall go from a classification of an
Eligible Employee to a noneligible class of Employees, such Employee shall
become a Participant in the Plan on the date such Employee again becomes an
Eligible Employee, or, if later, the date that the Employee would have
otherwise entered the Plan had the Employee always been an Eligible Employee.

20

 

However, if such Employee incurs a 1-Year Break in Service, eligibility will be
determined under the Break in Service rules set forth in Section 3.7.

3.3 DETERMINATION OF ELIGIBILITY

                     The Administrator shall determine the eligibility of each Employee for
participation in the Plan based upon information furnished by the Employer.
Such determination shall be conclusive and binding upon all persons, as long as
the same is made pursuant to the Plan and the Act. Such determination shall be
subject to review pursuant to Section 2.8.

3.4 TERMINATION OF ELIGIBILITY

                              In the event a Participant shall go from a classification of an Eligible
Employee to an ineligible Employee, such Former Participant shall continue to
vest in the Plan for each Year of Service completed while a noneligible
Employee, until such time as the Participant’s Account is forfeited or
distributed pursuant to the terms of the Plan. Additionally, the Former
Participant’s interest in the Plan shall continue to share in the earnings and
losses of the Trust Fund.

3.5 OMISSION OF ELIGIBLE EMPLOYEE

                     If, in any Plan Year, any Employee who should be included as a Participant
in the Plan is erroneously omitted and discovery of such omission is not made
until after a contribution
by the Employer for the year has been made and allocated, then the
Employer shall make a subsequent contribution, if necessary after the
application of Section 4.4(c), so that the omitted Employee receives a total
amount which the Employee would have received (including both Employer
contributions and earnings thereon) had the Employee not been omitted. Such
contribution shall be made regardless of whether it is deductible in whole or
in part in any taxable year under applicable provisions of the Code.

3.6 INCLUSION OF INELIGIBLE EMPLOYEE

                     If, in any Plan Year, any person who should not have been included as a
Participant in the Plan is erroneously included and discovery of such inclusion
is not made until after a contribution for the year has been made and
allocated, the Employer shall be entitled to recover the contribution made with
respect to the ineligible person provided the error is discovered within twelve
(12) months of the date on which it was made. Otherwise, the amount contributed
with respect to the ineligible person shall constitute a Forfeiture for the
Plan Year in which the discovery is made. Notwithstanding the foregoing, any
Deferred Compensation made by an ineligible person shall be distributed to the
person (along with any earnings attributable to such Deferred Compensation).

3.7 REHIRED EMPLOYEES AND BREAKS IN SERVICE

		
	 	         (a) If any Participant becomes a Former Participant due to
severance from employment with the Employer and is reemployed by
the Employer before a 1-Year Break in Service occurs, the Former
Participant shall become a Participant (in the same manner as if
severance from employment with the Employer had not occurred) as of
the reemployment date.

21

 

		
	 	         (b) If any Participant becomes a Former Participant due to
severance from employment with the Employer and is reemployed after
a 1-Year Break in Service has occurred, Years of Service shall
include Years of Service prior to the 1-Year Break in Service
subject to the following rules:

		
	 	(1) In the case of a Former Participant who under the Plan
does not have a nonforfeitable right to any interest in the
Plan resulting from Employer contributions, Years of Service
before a period of 1-Year Break in Service will not be taken
into account if the number of consecutive 1-Year Breaks in
Service equal or exceed the greater of (A) five (5) or (B)
the aggregate number of pre-break Years of Service. Such
aggregate number of Years of Service will not include any
Years of Service disregarded under the preceding sentence by
reason of prior 1-Year Breaks in Service.
	 
	 	(2) A Former Participant shall participate in the Plan as of
the date of reemployment.

		
	 	         (c) After a Former Participant who has severed employment with
the Employer incurs five (5) consecutive 1-Year Breaks in Service,
the Vested portion of said Former Participant’s Account
attributable to pre-break service shall not be increased as a
result of post-break service. In such case, separate accounts will
be maintained as follows:

		
	 	(1) one account for nonforfeitable benefits attributable to
pre-break service; and
	 
	 	(2) one account representing the Participant’s Employer
derived account balance in the Plan attributable to
post-break service.

3.8 ELECTION NOT TO PARTICIPATE

                     An Employee, for Plan Years beginning on or after the later of the
adoption date or effective date of this amendment and restatement, may not
elect not to participate in the Plan.

ARTICLE IV

CONTRIBUTION AND ALLOCATION

4.1 FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION

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

		
	 	         (a) The amount of the total salary reduction elections of all
Participants made pursuant to Section 4.2(a), which amount shall be
deemed an Employer Elective Contribution.
	 
	 	         (b) On behalf of each Participant who is eligible to share in
matching contributions for the Plan Year, a discretionary matching
contribution equal to a uniform percentage of each such
Participant’s Deferred Compensation, the exact 

22

 

		
	 	percentage, if any,
to be determined each year by the Employer, which amount, if any,
shall be deemed an Employer Non-Elective Contribution.
	 
	 	             Except, however, in applying the matching percentage specified
above, only salary reductions up to a fixed percentage of
Compensation or dollar amount as determined on an annual basis by
resolution of the Board of Directors shall be considered.
	 
	 	         (c) On behalf of each Non-Highly Compensated Participant who
is eligible to share in the Qualified Non-Elective Contribution for
the Plan Year, a discretionary Qualified Non-Elective Contribution
equal to a uniform percentage of each eligible individual’s
Compensation, the exact percentage, if any, to be determined each
year by the Employer. Any Employer Qualified Non-Elective
Contribution shall be deemed an Employer Elective Contribution.
	 
	 	         (d) A discretionary amount, which amount, if any, shall be
deemed an Employer Non-Elective Contribution.
	 
	 	         (e) Additionally, to the extent necessary, the Employer shall
contribute to the Plan the amount necessary to provide the top
heavy minimum contribution. All contributions by the Employer
pursuant to this subsection (e) shall be made in cash.

4.2 PARTICIPANT’S SALARY REDUCTION ELECTION

		
	 	         (a) Prior to January 1, 2002, each Participant may elect to
defer Compensation which would have been received in the Plan Year,
but for the deferral election, by up to 15%. Beginning April 1,
2002, each Participant may elect to defer Compensation which would
have been received in the Plan Year,
but for the deferral election, by up to 50%. A deferral
election (or modification of an earlier election) may not be made
with respect to Compensation which is currently available on or
before the date the Participant executed such election. For
purposes of this Section, Compensation shall be determined prior to
any reductions made pursuant to Code Sections 125, 132(f)(4) for
Plan Years beginning after December 31, 2000, 402(e)(3),
402(h)(1)(B), 403(b) or 457(b), and Employee contributions
described in Code Section 414(h)(2) that are treated as Employer
contributions.
	 
	 	             The amount by which Compensation is reduced shall be that
Participant’s Deferred Compensation and be treated as an Employer
Elective Contribution and allocated to that Participant’s Elective
Account.
	 
	 	         (b) The balance in each Participant’s Elective Account shall
be fully Vested at all times and, except as otherwise provided
herein, shall not be subject to Forfeiture for any reason.
	 
	 	         (c) Notwithstanding anything in the Plan to the contrary,
amounts held in the Participant’s Elective Account may not be
distributable (including any offset of loans) earlier than:

23

 

		
	 	(1) a Participant’s separation from service, or death;
	 
	 	(2) a Participant’s attainment of age 59 1/2;
	 
	 	(3) the termination of the Plan without the existence at the
time of Plan termination of another defined contribution plan
or the establishment of a successor defined contribution plan
by the Employer or an Affiliated Employer within the period
ending twelve months after distribution of all assets from
the Plan maintained by the Employer. For this purpose, a
defined contribution plan does not include an employee stock
ownership plan (as defined in Code Section 4975(e)(7) or
409), a simplified employee pension plan (as defined in Code
Section 408(k)), or a simple individual retirement account
plan (as defined in Code Section 408(p));
	 
	 	(4) the date of disposition by the Employer to an entity that
is not an Affiliated Employer of substantially all of the
assets (within the meaning of Code Section 409(d)(2)) used in
a trade or business of such corporation if such corporation
continues to maintain this Plan after the disposition with
respect to a Participant who continues employment with the
corporation acquiring such assets;
	 
	 	(5) the date of disposition by the Employer or an Affiliated
Employer who maintains the Plan of its interest in a
subsidiary (within the meaning of Code Section 409(d)(3)) to
an entity which is not an Affiliated Employer but only with
respect to a Participant who continues employment with such
subsidiary; or
	 
	 	(6) the proven financial hardship of a Participant, subject
to the limitations of Section 6.11.

		
	 	         (d) For each Plan Year, a Participant’s Deferred Compensation
made under this Plan and all other plans, contracts or arrangements
of the Employer maintaining this Plan shall not exceed, during any
taxable year of the Participant, the limitation imposed by Code
Section 402(g), as in effect at the beginning of such taxable year.
If such dollar limitation is exceeded, a Participant will be deemed
to have notified the Administrator of such excess amount which
shall be distributed in a manner consistent with Section 4.2(f).
The dollar limitation shall
be adjusted annually pursuant to the method provided in Code
Section 415(d) in accordance with Regulations.
	 
	 	         (e) Prior to January 1, 2002, in the event a Participant has
received a hardship distribution from the Participant’s Elective
Account pursuant to Section 6.11(b) or pursuant to Regulation
1.401(k)-1(d)(2)(iv)(B) from any other plan maintained by the
Employer, then such Participant shall not be permitted to elect to
have Deferred Compensation contributed to the Plan for a period of
twelve (12) months following the receipt of the distribution.
Furthermore, the dollar limitation under Code Section 402(g) shall
be reduced, with respect to the Participant’s taxable year
following the taxable year in which the hardship distribution was

24

 

		
	 	made, by the amount of such Participant’s Deferred Compensation, if
any, pursuant to this Plan (and any other plan maintained by the
Employer) for the taxable year of the hardship distribution.
	 
	 	         (f) If a Participant’s Deferred Compensation under this Plan
together with any elective deferrals (as defined in Regulation
1.402(g)-1(b)) under another qualified cash or deferred arrangement
(as described in Code Section 401(k)), a simplified employee
pension (as described in Code Section 408(k)(6)), a simple
individual retirement account plan (as described in Code Section
408(p)), a salary reduction arrangement (within the meaning of Code
Section 3121(a)(5)(D)), a deferred compensation plan under Code
Section 457(b), or a trust described in Code Section 501(c)(18)
cumulatively exceed the limitation imposed by Code Section 402(g)
(as adjusted annually in accordance with the method provided in
Code Section 415(d) pursuant to Regulations) for such Participant’s
taxable year, the Participant may, not later than March 1 following
the close of the Participant’s taxable year, notify the
Administrator in writing of such excess and request that the
Participant’s Deferred Compensation under this Plan be reduced by
an amount specified by the Participant. In such event, the
Administrator may direct the Trustee to distribute such excess
amount (and any Income allocable to such excess amount) to the
Participant not later than the first April 15th following the close
of the Participant’s taxable year. Any distribution of less than
the entire amount of Excess Deferred Compensation and Income shall
be treated as a pro rata distribution of Excess Deferred
Compensation and Income. The amount distributed shall not exceed
the Participant’s Deferred Compensation under the Plan for the
taxable year (and any Income allocable to such excess amount). Any
distribution on or before the last day of the Participant’s taxable
year must satisfy each of the following conditions:

		
	 	(1) the distribution must be made after the date on which the
Plan received the Excess Deferred Compensation;
	 
	 	(2) the Participant shall designate the distribution as
Excess Deferred Compensation; and
	 
	 	(3) the Plan must designate the distribution as a
distribution of Excess Deferred Compensation.

		
	 	               Any distribution made pursuant to this Section 4.2(f) shall be
made first from unmatched Deferred Compensation and, thereafter,
from Deferred
Compensation which is matched. Matching contributions which
relate to such Deferred Compensation shall be forfeited.
	 
	 	         (g) Notwithstanding Section 4.2(f) above, a Participant’s
Excess Deferred Compensation shall be reduced, but not below zero,
by any distribution of Excess Contributions pursuant to Section
4.6(a) for the Plan Year beginning with or within the taxable year
of the Participant.
	 
	 	         (h) At Normal Retirement Date, or such other date when the
Participant shall be entitled to receive benefits, the fair market
value of the 

25

 

		
	 	Participant’s Elective Account shall be used to
provide additional benefits to the Participant or the Participant’s
Beneficiary.
	 
	 	         (i) Employer Elective Contributions made pursuant to this
Section may be segregated into a separate account for each
Participant in a federally insured savings account, certificate of
deposit in a bank or savings and loan association, money market
certificate, or other short-term debt security acceptable to the
Trustee until such time as the allocations pursuant to Section 4.4
have been made.
	 
	 	         (j) The Employer and the Administrator shall implement the
salary reduction elections provided for herein in accordance with
the following:

		
	 	(1) A Participant must make an initial salary deferral
election within a reasonable time, not to exceed thirty (30)
days, after entering the Plan pursuant to Section 3.2. If the
Participant fails to make an initial salary deferral election
within such time, then such Participant may thereafter make
an election in accordance with the rules governing
modifications. The Participant shall make such an election by
entering into a written salary reduction agreement with the
Employer and filing such agreement with the Administrator.
Such election shall initially be effective beginning with the
pay period following the acceptance of the salary reduction
agreement by the Administrator, shall not have retroactive
effect and shall remain in force until revoked.
	 
	 	(2) A Participant may modify a prior election during the Plan
Year and concurrently make a new election by filing a written
notice with the Administrator within a reasonable time before
the pay period for which such modification is to be
effective. However, modifications to a salary deferral
election shall only be permitted monthly, during election
periods established by the Administrator prior to the first
day of each month. Any modification shall not have
retroactive effect and shall remain in force until revoked.
	 
	 	(3) A Participant may elect to prospectively revoke the
Participant’s salary reduction agreement in its entirety at
any time during the Plan Year by providing the Administrator
with thirty (30) days written notice of such
revocation (or upon such shorter notice period as may be
acceptable to the Administrator). Such revocation shall
become effective as of the beginning of the first pay period
coincident with or next following the expiration of the
notice period. Furthermore, the termination of the
Participant’s employment, or the cessation of participation
for any reason, shall be deemed to revoke any salary
reduction agreement then in effect, effective immediately
following the close of the pay period within which such
termination or cessation occurs.

26

 

4.3 TIME OF PAYMENT OF EMPLOYER CONTRIBUTION

                     The Employer may make its contribution to the Plan for a particular Plan
Year at such time as the Employer, in its sole discretion, determines. If the
Employer makes a contribution for a particular Plan Year after the close of
that Plan Year, the Employer will designate to the Trustee the Plan Year for
which the Employer is making its contribution.

4.4 ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS

		
	 	         (a) The Administrator shall establish and maintain an account
in the name of each Participant to which the Administrator shall
credit as of each Anniversary Date, or other Valuation Date, all
amounts allocated to each such Participant as set forth herein.
	 
	 	         (b) The Employer shall provide the Administrator with all
information required by the Administrator to make a proper
allocation of the Employer contributions for each Plan Year. Within
a reasonable period of time after the date of receipt by the
Administrator of such information, the Administrator shall allocate
such contribution as follows:

		
	 	(1) With respect to the Employer Elective Contribution made
pursuant to Section 4.1(a), to each Participant’s Elective
Account in an amount equal to each such Participant’s
Deferred Compensation for the year.
	 
	 	(2) With respect to the Employer Non-Elective Contribution
made pursuant to Section 4.1(b), to each Participant’s
Account in accordance with Section 4.1(b).
	 
	 	Only Participants who have completed more than 500 Hours of
Service during the Plan Year and are actively employed on the
last day of the Plan Year shall be eligible to share in the
matching contribution for the year.
	 
	 	(3) With respect to the Employer Qualified Non-Elective
Contribution made pursuant to Section 4.1(c), to each
Participant’s Elective Account when used to satisfy the
“Actual Deferral Percentage” tests or Participant’s Account
in accordance with Section 4.1(c).
	 
	 	Only Non-Highly Compensated Participants who have completed a
Year of Service during the Plan Year and are actively
employed on the last day of the Plan Year shall be eligible
to share in the Qualified Non-Elective Contribution for the
year.
	 
	 	(4) With respect to the Employer Non-Elective Contribution
made pursuant to Section 4.1(d), in the following manner:

		
	 	(i) A dollar amount equal to 5.7% of the sum of each
Participant’s total Compensation plus Excess
Compensation shall be allocated to each Participant’s
Account. If the Employer does not contribute such
amount for all Participants, each Participant 

27

 

		
	 	will be
allocated a share of the contribution in the same
proportion that the Participant’s total Compensation
plus the Participant’s total Excess Compensation for
the Plan Year bears to the total Compensation plus the
total Excess Compensation of all Participants for that
year.
	 
	 	(ii) The balance of the Employer Non-Elective
Contribution over the amount allocated above, if any,
shall be allocated to each Participant’s Account in the
same proportion that the Participant’s total
Compensation for the Plan Year bears to the total
Compensation of all Participants for such year.

		
	 	         No other qualified plan or simplified employee pension,
as defined in Code Section 408(k), maintained by the Employer
shall (A) impute disparity pursuant to Regulation
1.401(a)(4)-7 for any Participant and (B) provide for
permitted disparity pursuant to Code Section 401(l).
	 
	 	         Additionally, for Plan Years beginning after December
31, 1994, the cumulative permitted disparity limit for a
Participant is thirty-five (35) total cumulative permitted
disparity years. Total cumulative permitted disparity years
means the number of years credited to the Participant for
allocation or accrual purposes under this Plan, any other
qualified plan or simplified employee pension plan (whether
or not terminated) ever maintained by the Employer. For
purposes of determining the Participant’s cumulative
permitted disparity limit, all years ending in the same
calendar year are treated as the same year. If the
Participant has not benefited under a defined benefit or
target benefit plan for any year beginning after December 31,
1993, then such Participant has no cumulative disparity
limit.
	 
	 	         Notwithstanding the preceding paragraphs, any
Participant whose cumulative permitted disparity limit would
exceed thirty-five (35) will receive the allocation above by
substituting total Compensation for Excess Compensation.
	 
	 	Only Participants who have completed a Year of Service during
the Plan Year and are actively employed on the last day of
the Plan Year shall be eligible to share in the discretionary
contribution for the year.

		
	 	         (c) As of each Anniversary Date any amounts which became
Forfeitures since the last Anniversary Date (reduced by the amount
of any such Forfeitures used to restore previous forfeitures) shall
first be used to pay any Plan expenses which are not otherwise
paid by the Employer or which are not charged to Participants’
Accounts under the Plan and shall then be allocated to
Participants’ Accounts and used to reduce the applicable
contribution of the
Employer hereunder for the Plan Year in which such Forfeitures
occur in the following manner:

28

 

		
	 	(1) Forfeitures attributable to Employer matching
contributions made pursuant to Section 4.1(b) shall be used
to reduce the Employer contribution for the Plan Year in
which such Forfeitures occur. If no Employer matching
contribution is made during the Plan Year, the Forfeitures
shall then be allocated among Participant’s Accounts of those
Participants otherwise eligible to share in the allocation of
Employer matching contributions in accordance with Section
4.1(b) based upon the same proportion that each such
Participant’s Salary Reduction Contributions for the Plan
Year bears to the total Participants’ Salary Reduction
Contributions of all such Participants for the Plan Year.
	 
	 	(2) Forfeitures attributable to Employer discretionary
contributions made pursuant to Section 4.1(d) shall be
allocated among the Participants’ Accounts of Participants
otherwise eligible to share in the allocation of
discretionary contributions for the year in the same
proportion that each such Participant’s Compensation for the
year bears to the total Compensation of all such Participants
for the year.

		
	 	               Provided, however, that in the event the allocation of
Forfeitures provided herein shall cause the “annual addition” (as
defined in Section 4.9) to any Participant’s Account to exceed the
amount allowable by the Code, the excess shall be reallocated in
accordance with Section 4.10.
	 
	 	         (d) For any Top Heavy Plan Year, Non-Key Employees not
otherwise eligible to share in the allocation of contributions and
Forfeitures as provided above, shall receive the minimum allocation
provided for in Section 4.4(f) if eligible pursuant to the
provisions of Section 4.4(h).
	 
	 	         (e) As of each Valuation Date, any earnings or losses (net
appreciation or net depreciation) of the Trust Fund shall be
allocated in the same proportion that each Participant’s and Former
Participant’s time weighted average nonsegregated accounts bear to
the total of all Participants’ and Former Participants’ time
weighted average nonsegregated accounts as of such date. Earnings
or losses with respect to a Participant’s Directed Account shall be
allocated in accordance with Section 4.12.
	 
	 	               Participants’ transfers from other qualified plans deposited
in the general Trust Fund shall share in any earnings and losses
(net appreciation or net depreciation) of the Trust Fund in the
same manner provided above. Each segregated account maintained on
behalf of a Participant shall be credited or charged with its
separate earnings and losses.
	 
	 	         (f) Minimum Allocations Required for Top Heavy Plan Years:
Notwithstanding the foregoing, for any Top Heavy Plan Year, the sum
of the Employer contributions and Forfeitures allocated to the
Participant’s Combined Account of each Non-Key Employee shall be
equal to at least three percent (3%) of such Non-Key Employee’s
“415 Compensation” (reduced by contributions and forfeitures, if
any, allocated to each Non-Key Employee in any defined contribution
plan included with this Plan in a Required Aggregation Group).

29

 

		
	 	However, if (1) the sum of the Employer contributions and
Forfeitures allocated
to the Participant’s Combined Account of each Key Employee for
such Top Heavy Plan Year is less than three percent (3%) of each
Key Employee’s “415 Compensation” and (2) this Plan is not required
to be included in an Aggregation Group to enable a defined benefit
plan to meet the requirements of Code Section 401(a)(4) or 410, the
sum of the Employer contributions and Forfeitures allocated to the
Participant’s Combined Account of each Non-Key Employee shall be
equal to the largest percentage allocated to the Participant’s
Combined Account of any Key Employee. However, in determining
whether a Non-Key Employee has received the required minimum
allocation, such Non-Key Employee’s Deferred Compensation and
matching contributions needed to satisfy the “Actual Contribution
Percentage” tests pursuant to Section 4.7(a) shall not be taken
into account.
	 
	 	               However, no such minimum allocation shall be required in this
Plan for any Non-Key Employee who participates in another defined
contribution plan subject to Code Section 412 included with this
Plan in a Required Aggregation Group.
	 
	 	         (g) For purposes of the minimum allocations set forth above,
the percentage allocated to the Participant’s Combined Account of
any Key Employee shall be equal to the ratio of the sum of the
Employer contributions and Forfeitures allocated on behalf of such
Key Employee divided by the “415 Compensation” for such Key
Employee.
	 
	 	         (h) For any Top Heavy Plan Year, the minimum allocations set
forth above shall be allocated to the Participant’s Combined
Account of all Non-Key Employees who are Participants and who are
employed by the Employer on the last day of the Plan Year,
including Non-Key Employees who have (1) failed to complete a Year
of Service; and (2) declined to make mandatory contributions (if
required) or, in the case of a cash or deferred arrangement,
elective contributions to the Plan.
	 
	 	         (i) For the purposes of this Section, “415 Compensation” in
excess of $150,000 (or such other amount provided in the Code)
shall be disregarded. Such amount shall be adjusted for increases
in the cost of living in accordance with Code Section
401(a)(17)(B), except that the dollar increase in effect on January
1 of any calendar year shall be effective for the Plan Year
beginning with or within such calendar year. If “415 Compensation”
for any prior determination period is taken into account in
determining a Participant’s minimum benefit for the current Plan
Year, the “415 Compensation” for such determination period is
subject to the applicable annual “415 Compensation” limit in effect
for that prior period. For this purpose, in determining the minimum
benefit in Plan Years beginning on or after January 1, 1989, the
annual “415 Compensation” limit in effect for determination periods
beginning before that date is $200,000 (or such other amount as
adjusted for increases in the cost of living in accordance with
Code Section 415(d) for determination periods beginning on or after
January 1, 1989, and in accordance with Code Section 401(a)(17)(B)
for determination periods beginning on or after January 1, 1994).
For determination periods beginning prior 

30

 

		
	 	to January 1, 1989, the
$200,000 limit shall apply only for Top Heavy Plan Years and shall
not be adjusted. For any short Plan Year the “415 Compensation”
limit shall be an amount equal to the “415 Compensation” limit for
the calendar year in
which the Plan Year begins multiplied by the ratio obtained by
dividing the number of full months in the short Plan Year by twelve
(12).
	 
	 	         (j) Notwithstanding anything herein to the contrary,
Participants who terminated employment for any reason during the
Plan Year shall share in the salary reduction contributions made by
the Employer for the year of termination without regard to the
Hours of Service credited.
	 
	 	         (k) Notwithstanding anything in this Section to the contrary,
all information necessary to properly reflect a given transaction
may not be available until after the date specified herein for
processing such transaction, in which case the transaction will be
reflected when such information is received and processed. Subject
to express limits that may be imposed under the Code, the
processing of any contribution, distribution or other transaction
may be delayed for any legitimate business reason (including, but
not limited to, failure of systems or computer programs, failure of
the means of the transmission of data, force majeure, the failure
of a service provider to timely receive values or prices, and the
correction for errors or omissions or the errors or omissions of
any service provider). The processing date of a transaction will be
binding for all purposes of the Plan.
	 
	 	         (l) Notwithstanding anything to the contrary, if this is a
Plan that would otherwise fail to meet the requirements of Code
Section 410(b)(1) and the Regulations thereunder because Employer
contributions would not be allocated to a sufficient number or
percentage of Participants for a Plan Year, then the following
rules shall apply:

		
	 	(1) The group of Participants eligible to share in the
Employer’s contribution and Forfeitures for the Plan Year
shall be expanded to include the minimum number of
Participants who would not otherwise be eligible as are
necessary to satisfy the applicable test specified above. The
specific Participants who shall become eligible under the
terms of this paragraph shall be those who have not separated
from service prior to the last day of the Plan Year and have
completed the greatest number of Hours of Service in the Plan
Year.
	 
	 	(2) If after application of paragraph (1) above, the
applicable test is still not satisfied, then the group of
Participants eligible to share in the Employer’s contribution
and Forfeitures for the Plan Year shall be further expanded
to include the minimum number of Participants who have
separated from service prior to the last day of the Plan Year
as are necessary to satisfy the applicable test. The specific
Participants who shall become eligible to share shall be
those Participants who have completed the greatest number of
Hours of Service in the Plan Year before terminating
employment.

31

 

		
	 	(3) Nothing in this Section shall permit the reduction of a
Participant’s accrued benefit. Therefore any amounts that
have previously been allocated to Participants may not be
reallocated to satisfy these requirements. In such event, the
Employer shall make an additional contribution equal to the
amount such affected Participants would have
received had they been included in the allocations, even if
it exceeds the
amount which would be deductible under Code Section 404. Any
adjustment to the allocations pursuant to this paragraph
shall be considered a retroactive amendment adopted by the
last day of the Plan Year.
	 
	 	(4) Notwithstanding the foregoing, if the portion of the Plan
which is not a Code Section 401(k) or 401(m) plan would fail
to satisfy Code Section 410(b) if the coverage tests were
applied by treating those Participants whose only allocation
would otherwise be provided under the top heavy formula as if
they were not currently benefiting under the Plan, then, for
purposes of this Section 4.4(l), such Participants shall be
treated as not benefiting and shall therefore be eligible to
be included in the expanded class of Participants who will
share in the allocation provided under the Plan’s non top
heavy formula.

4.5 ACTUAL DEFERRAL PERCENTAGE TESTS

		
	 	         (a) Maximum Annual Allocation: For each Plan Year beginning
after December 31, 1996, the annual allocation derived from
Employer Elective Contributions to a Highly Compensated
Participant’s Elective Account shall satisfy one of the following
tests:

		
	 	(1) The “Actual Deferral Percentage” for the Highly
Compensated Participant group shall not be more than the
“Actual Deferral Percentage” of the Non-Highly Compensated
Participant group (for the preceding Plan Year if the prior
year testing method is used to calculate the “Actual Deferral
Percentage” for the Non-Highly Compensated Participant group)
multiplied by 1.25, or
	 
	 	(2) The excess of the “Actual Deferral Percentage” for the
Highly Compensated Participant group over the “Actual
Deferral Percentage” for the Non-Highly Compensated
Participant group (for the preceding Plan Year if the prior
year testing method is used to calculate the “Actual Deferral
Percentage” for the Non-Highly Compensated Participant group)
shall not be more than two percentage points. Additionally,
the “Actual Deferral Percentage” for the Highly Compensated
Participant group shall not exceed the “Actual Deferral
Percentage” for the Non-Highly Compensated Participant group
(for the preceding Plan Year if the prior year testing method
is used to calculate the “Actual Deferral Percentage” for the
Non-Highly Compensated Participant group) multiplied by 2.
The provisions of Code Section 401(k)(3) and Regulation
1.401(k)-1(b) are incorporated herein by reference.

32

 

		
	 	However, in order to prevent the multiple use of the
alternative method described in (2) above and in Code Section
401(m)(9)(A), any Highly Compensated Participant eligible to
make elective deferrals pursuant to Section 4.2 and to make
Employee contributions or to receive matching contributions
under this Plan or under any other plan maintained by the
Employer or an Affiliated Employer shall have a combination
of such Participant’s Elective Contributions and Employer
matching contributions
reduced pursuant to Section 4.6(a) and Regulation 1.401(m)-2,
the provisions of which are incorporated herein by reference.

		
	 	         (b) For the purposes of this Section “Actual Deferral
Percentage” means, with respect to the Highly Compensated
Participant group and Non-Highly Compensated Participant group for
a Plan Year, the average of the ratios, calculated separately for
each Participant in such group, of the amount of Employer Elective
Contributions allocated to each Participant’s Elective Account for
such Plan Year, to such Participant’s “414(s) Compensation” for
such Plan Year. The actual deferral ratio for each Participant and
the “Actual Deferral Percentage” for each group shall be calculated
to the nearest one-hundredth of one percent. Employer Elective
Contributions allocated to each Non-Highly Compensated
Participant’s Elective Account shall be reduced by Excess Deferred
Compensation to the extent such excess amounts are made under this
Plan or any other plan maintained by the Employer.
	 
	 	               Notwithstanding the above, if the prior year test method is
used to calculate the “Actual Deferral Percentage” for the
Non-Highly Compensated Participant group for the first Plan Year of
this amendment and restatement, the “Actual Deferral Percentage”
for the Non-Highly Compensated Participant group for the preceding
Plan Year shall be calculated pursuant to the provisions of the
Plan then in effect.
	 
	 	         (c) For the purposes of Sections 4.5(a) and 4.6, a Highly
Compensated Participant and a Non-Highly Compensated Participant
shall include any Employee eligible to make a deferral election
pursuant to Section 4.2, whether or not such deferral election was
made or suspended pursuant to Section 4.2.
	 
	 	               Notwithstanding the above, if the prior year testing method is
used to calculate the “Actual Deferral Percentage” for the
Non-Highly Compensated Participant group for the first Plan Year of
this amendment and restatement, for purposes of Section 4.5(a) and
4.6, a Non-Highly Compensated Participant shall include any such
Employee eligible to make a deferral election, whether or not such
deferral election was made or suspended, pursuant to the provisions
of the Plan in effect for the preceding Plan Year.
	 
	 	         (d) For the purposes of this Section and Code Sections
401(a)(4), 410(b) and 401(k), if two or more plans which include
cash or deferred arrangements are considered one plan for the
purposes of Code Section 401(a)(4) or 410(b) (other than Code
Section 410(b)(2)(A)(ii)), the cash or deferred arrangements
included in such plans shall be treated as one arrangement. In
addition, two or more cash or deferred arrangements may be
considered as a 

33

 

		
	 	single arrangement for purposes of determining
whether or not such arrangements satisfy Code Sections 401(a)(4),
410(b) and

401(k). In such a case, the cash or deferred
arrangements included in such plans and the plans including such
arrangements shall be treated as one arrangement and as one plan
for purposes of this Section and Code Sections 401(a)(4), 410(b)
and 401(k). Any adjustment to the Non-Highly Compensated
Participant actual deferral ratio for the prior year shall be made
in accordance with Internal Revenue Service Notice 98-1 and any
superseding guidance. Plans may be aggregated under this paragraph
(d) only if they have the same plan year. Notwithstanding the
above, for Plan Years
beginning after December 31, 1996, if two or more plans which
include cash or deferred arrangements are permissively aggregated
under Regulation
1.410(b)-7(d), all plans permissively aggregated must use
either the current year testing method or the prior year testing
method for the testing year.
	 
	 	               Notwithstanding the above, an employee stock ownership plan
described in Code Section 4975(e)(7) or 409 may not be combined
with this Plan for purposes of determining whether the employee
stock ownership plan or this Plan satisfies this Section and Code
Sections 401(a)(4), 410(b) and 401(k).
	 
	 	         (e) For the purposes of this Section, if a Highly Compensated
Participant is a Participant under two or more cash or deferred
arrangements (other than a cash or deferred arrangement which is
part of an employee stock ownership plan as defined in Code Section
4975(e)(7) or 409) of the Employer or an Affiliated Employer, all
such cash or deferred arrangements shall be treated as one cash or
deferred arrangement for the purpose of determining the actual
deferral ratio with respect to such Highly Compensated Participant.
However, if the cash or deferred arrangements have different plan
years, this paragraph shall be applied by treating all cash or
deferred arrangements ending with or within the same calendar year
as a single arrangement.
	 
	 	         (f) For the purpose of this Section, for Plan Years beginning
after December 31, 1996, when calculating the “Actual Deferral
Percentage” for the Non-Highly Compensated Participant group, the
prior year testing method shall be used. Any change from the
current year testing method to the prior year testing method shall
be made pursuant to Internal Revenue Service Notice 98-1, Section
VII (or superseding guidance), the provisions of which are
incorporated herein by reference.
	 
	 	         (g) Notwithstanding anything in this Section to the contrary,
the provisions of this Section and Section 4.6 may be applied
separately (or will be applied separately to the extent required by
Regulations) to each plan within the meaning of Regulation
1.401(k)-1(g)(11). Furthermore, for Plan Years beginning after
December 31, 1998, the provisions of Code Section 401(k)(3)(F) may
be used to exclude from consideration all Non-Highly Compensated
Employees who have not satisfied the minimum age and service
requirements of Code Section 410(a)(1)(A).

34

 

4.6 ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE TESTS

                     In the event (or if it is anticipated) that the initial allocations of the
Employer Elective Contributions made pursuant to Section 4.4 do (or might) not
satisfy one of the tests set forth in Section 4.5(a) for Plan Years beginning
after December 31, 1996, the Administrator shall adjust Excess Contributions
pursuant to the options set forth below:

		
	 	         (a) On or before the fifteenth day of the third month
following the end of each Plan Year, but in no event later than the
close of the following Plan Year, the Highly Compensated
Participant having the largest dollar amount of Elective
Contributions shall have a portion of such Participant’s Elective
Contributions distributed until the total amount of Excess
Contributions has been distributed, or until the amount of such
Participant’s Elective Contributions equals the Elective
Contributions of the Highly Compensated Participant having the
second largest dollar amount of Elective Contributions. This
process shall continue until the total amount of Excess
Contributions has been distributed. In determining the amount
of Excess Contributions to be distributed with respect to an
affected Highly Compensated Participant as determined herein, such
amount shall be reduced pursuant to Section 4.2(f) by any Excess
Deferred Compensation previously distributed to such affected
Highly Compensated Participant for such Participant’s taxable year
ending with or within such Plan Year.

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

		
	 	(i) may be postponed but not later than the close of
the Plan Year following the Plan Year to which they are
allocable;
	 
	 	(ii) shall be adjusted for Income; and
	 
	 	(iii) shall be designated by the Employer as a
distribution of Excess Contributions (and Income).

		
	 	(2) Any distribution of less than the entire amount of Excess
Contributions shall be treated as a pro rata distribution of
Excess Contributions and Income.
	 
	 	(3) Matching contributions which relate to Excess
Contributions shall be forfeited unless the related matching
contribution is distributed as an Excess Aggregate
Contribution pursuant to Section 4.8.

		
	 	         (b) Notwithstanding the above, within twelve (12) months after
the end of the Plan Year, the Employer may make a special Qualified
Non-Elective Contribution in accordance with one of the following
provisions which contribution shall be allocated to the
Participant’s Elective Account of each Non-Highly Compensated
Participant eligible to share in the allocation in accordance with
such provision. The Employer shall provide the Administrator with
written notification of the amount of the contribution being made
and for which provision it is being made pursuant to:

35

 

		
	 	(1) A special Qualified Non-Elective Contribution may be made
on behalf of Non-Highly Compensated Participants in an amount
sufficient to satisfy (or to prevent an anticipated failure
of) one of the tests set forth in Section 4.5(a). Such
contribution shall be allocated in the same proportion that
each Non-Highly Compensated Participant’s 414(s) Compensated
for the year (or prior year if the prior year testing method
is being used) bears to the total 414(s) Compensation of all
Non-Highly Compensated Participants for such year.
	 
	 	(2) A special Qualified Non-Elective Contribution may be made
on behalf of Non-Highly Compensated Participants in an amount
sufficient to satisfy (or to prevent an anticipated failure
of) one of the tests set forth in Section 4.5(a). Such
contribution shall be allocated in the same proportion that
each Non-Highly Compensated Participant electing salary
reductions
pursuant to Section 4.2 in the same proportion that each such
Non-Highly Compensated Participant’s Deferred Compensation
for the year (or at the end of the prior Plan Year if the
prior year testing method is being used)
bears to the total Deferred Compensation of all such
Non-Highly Compensated Participants for such year.
	 
	 	(3) A special Qualified Non-Elective Contribution may be made
on behalf of Non-Highly Compensated Participants in an amount
sufficient to satisfy (or to prevent an anticipated failure
of) one of the tests set forth in Section 4.5(a). Such
contribution shall be allocated in equal amounts (per
capita).
	 
	 	(4) A special Qualified Non-Elective Contribution may be made
on behalf of Non-Highly Compensated Participants electing
salary reductions pursuant to Section 4.2 in an amount
sufficient to satisfy (or to prevent an anticipated failure
of) one of the tests set forth in Section 4.5(a). Such
contribution shall be allocated for the year (or at the end
of the prior Plan Year if the prior year testing method is
used) to each Non-Highly Compensated Participant electing
salary reductions pursuant to Section 4.2 in equal amounts
(per capita).
	 
	 	(5) A special Qualified Non-Elective Contribution may be made
on behalf of Non-Highly Compensated Participants in an amount
sufficient to satisfy (or to prevent an anticipated failure
of) one of the tests set forth in Section 4.5(a). Such
contribution shall be allocated to the Non-Highly Compensated
Participant having the lowest 414(s) Compensation, until one
of the tests set forth in Section 4.5(a) is satisfied (or is
anticipated to be satisfied), or until such Non-Highly
Compensated Participant has received the maximum “annual
addition” pursuant to Section 4.9. This process shall
continue until one of the tests set forth in Section 4.5(a)
is satisfied (or is anticipated to be satisfied).

		
	 	               Notwithstanding the above, at the Employer’s discretion,
Non-Highly Compensated Participants who are not employed at the end
of the 

36

 

		
	 	Plan Year (or at the end of the prior Plan Year if the prior
year testing method is being used) shall not be eligible to receive
a special Qualified Non-Elective Contribution and shall be
disregarded.
	 
	 	               Notwithstanding the above, for Plan Years beginning after
December 31, 1998, if the testing method changes from the current
year testing method to the prior year testing method, then for
purposes of preventing the double counting of Qualified
Non-Elective Contributions for the first testing year for which the
change is effective, any special Qualified Non-Elective
Contribution on behalf of Non-Highly Compensated Participants used
to satisfy the “Actual Deferral Percentage” or “Actual Contribution
Percentage” test under the current year testing method for the
prior year testing year shall be disregarded.
	 
	 	         (c) If during a Plan Year, it is projected that the aggregate
amount of Elective Contributions to be allocated to all Highly
Compensated Participants under this Plan would cause the Plan to
fail the tests set forth in Section 4.5(a), then the Administrator
may automatically reduce the deferral amount of affected
Highly Compensated Participants, beginning with the Highly
Compensated Participant who has the highest deferral ratio until it
is anticipated the Plan will pass the tests or until the actual
deferral ratio equals the actual deferral ratio of the Highly
Compensated Participant having the next highest actual deferral
ratio. This
process may continue until it is anticipated that the Plan
will satisfy one of the tests set forth in Section 4.5(a).
Alternatively, the Employer may specify a maximum percentage of
Compensation that may be deferred.
	 
	 	         (d) Any Excess Contributions (and Income) which are
distributed on or after 2 1/2 months after the end of the Plan Year
shall be subject to the ten percent (10%) Employer excise tax
imposed by Code Section 4979.

4.7 ACTUAL CONTRIBUTION PERCENTAGE TESTS

		
	 	         (a) The “Actual Contribution Percentage” for Plan Years
beginning after December 31, 1996 for the Highly Compensated
Participant group shall not exceed the greater of:

		
	 	(1) 125 percent of such percentage for the Non-Highly
Compensated Participant group (for the preceding Plan Year if
the prior year testing method is used to calculate the
“Actual Contribution Percentage” for the Non-Highly
Compensated Participant group); or
	 
	 	(2) the lesser of 200 percent of such percentage for the
Non-Highly Compensated Participant group (for the preceding
Plan Year if the prior year testing method is used to
calculate the “Actual Contribution Percentage” for the
Non-Highly Compensated Participant group), or such percentage
for the Non-Highly Compensated Participant group (for the
preceding Plan Year if the prior year testing method is used
to calculate the “Actual Contribution Percentage” for the
Non-Highly Compensated Participant group) plus 2 percentage
points. However, to prevent the multiple use of the
alternative method described in this paragraph and 

37

 

		
	 	Code
Section 401(m)(9)(A), any Highly Compensated Participant
eligible to make elective deferrals pursuant to Section 4.2
or any other cash or deferred arrangement maintained by the
Employer or an Affiliated Employer and to make Employee
contributions or to receive matching contributions under this
Plan or under any plan maintained by the Employer or an
Affiliated Employer shall have a combination of Elective
Contributions and Employer matching contributions reduced
pursuant to Regulation 1.401(m)-2 and Section 4.8(a). The
provisions of Code Section 401(m) and Regulations
1.401(m)-1(b) and 1.401(m)-2 are incorporated herein by
reference.

		
	 	         (b) For the purposes of this Section and Section 4.8, “Actual
Contribution Percentage” for a Plan Year means, with respect to the
Highly Compensated Participant group and Non-Highly Compensated
Participant group (for the preceding Plan Year if the prior year
testing method is used to calculate the “Actual Contribution
Percentage” for the Non-Highly Compensated Participant group), the
average of the ratios (calculated separately for each Participant
in each group and rounded to the nearest one-hundredth of one
percent) of:

		
	 	(1) the sum of Employer matching contributions made pursuant
to Section 4.1(b) on behalf of each such Participant for such
Plan Year; to

		
	 	(2) the Participant’s “414(s) Compensation” for such Plan
Year.

		
	 	               Notwithstanding the above, if the prior year testing method is
used to calculate the “Actual Contribution Percentage” for the
Non-Highly Compensated Participant group for the first Plan Year of
this amendment and restatement, for purposes of Section 4.7(a), the
“Actual Contribution Percentage” for the Non-Highly Compensated
Participant group for the preceding Plan Year shall be determined
pursuant to the provisions of the Plan then in effect.
	 
	 	         (c) For purposes of determining the “Actual Contribution
Percentage,” only Employer matching contributions contributed to
the Plan prior to the end of the succeeding Plan Year shall be
considered. In addition, the Administrator may elect to take into
account, with respect to Employees eligible to have Employer
matching contributions pursuant to Section 4.1(b) allocated to
their accounts, elective deferrals (as defined in Regulation
1.402(g)-1(b)) and qualified non-elective contributions (as defined
in Code Section 401(m)(4)(C)) contributed to any plan maintained by
the Employer. Such elective deferrals and qualified non-elective
contributions shall be treated as Employer matching contributions
subject to Regulation 1.401(m)-1(b)(5) which is incorporated herein
by reference. However, the Plan Year must be the same as the plan
year of the plan to which the elective deferrals and the qualified
non-elective contributions are made.
	 
	 	         (d) For purposes of this Section and Code Sections 401(a)(4),
410(b) and 401(m), if two or more plans of the Employer to which
matching contributions, Employee contributions, or both, are made
are treated as one plan for purposes of Code Sections 401(a)(4) or
410(b) (other than the average benefits 

38

 

		
	 	test under Code Section
410(b)(2)(A)(ii)), such plans shall be treated as one plan. In
addition, two or more plans of the Employer to which matching
contributions, Employee contributions, or both, are made may be
considered as a single plan for purposes of determining whether or
not such plans satisfy Code Sections 401(a)(4), 410(b) and 401(m).
In such a case, the aggregated plans must satisfy this Section and
Code Sections 401(a)(4), 410(b) and 401(m) as though such
aggregated plans were a single plan. Any adjustment to the
Non-Highly Compensated Participant actual contribution ratio for
the prior year shall be made in accordance with Internal Revenue
Service Notice 98-1 and any superseding guidance. Plans may be
aggregated under this paragraph (d) only if they have the same plan
year. Notwithstanding the above, for Plan Years beginning after
December 31, 1996, if two or more plans which include cash or
deferred arrangements are permissively aggregated under Regulation
1.410(b)-7(d), all plans permissively aggregated must use either
the current year testing method or the prior year testing method
for the testing year.
	 
	 	               Notwithstanding the above, an employee stock ownership plan
described in Code Section 4975(e)(7) or 409 may not be aggregated
with this Plan for purposes of determining whether the employee
stock ownership plan or this Plan satisfies this Section and Code
Sections 401(a)(4), 410(b) and 401(m).
	 
	 	         (e) If a Highly Compensated Participant is a Participant under
two or more plans (other than an employee stock ownership plan as
defined in Code Section 4975(e)(7) or 409) which are maintained by
the Employer or an Affiliated Employer to which matching
contributions, Employee contributions, or both, are made, all such
contributions on behalf of such Highly Compensated Participant
shall be aggregated for purposes of determining such Highly
Compensated
Participant’s actual contribution ratio. However, if the plans
have different plan years, this paragraph shall be applied by
treating all plans ending with or within the same calendar year as
a single plan.
	 
	 	         (f) For purposes of Sections 4.7(a) and 4.8, a Highly
Compensated Participant and Non-Highly Compensated Participant
shall include any Employee eligible to have Employer matching
contributions (whether or not a deferral election was made or
suspended) allocated to the Participant’s account for the Plan
Year.
	 
	 	               Notwithstanding the above, if the prior year testing method is
used to calculate the “Actual Contribution Percentage” for the
Non-Highly Compensated Participant group for the first Plan Year of
this amendment and restatement, for the purposes of Section 4.7(a),
a Non-Highly Compensated Participant shall include any such
Employee eligible to have Employer matching contributions (whether
or not a deferral election was made or suspended) allocated to the
Participant’s account for the preceding Plan Year pursuant to the
provisions of the Plan then in effect.
	 
	 	         (g) For the purpose of this Section, for Plan Years beginning
after December 31, 1996, when calculating the “Actual Contribution
Percentage” for the Non-Highly Compensated Participant group, the
prior year testing method 

39

 

		
	 	shall be used. Any change from the
current year testing method to the prior year testing method shall
be made pursuant to Internal Revenue Service Notice 98-1, Section
VII (or superseding guidance), the provisions of which are
incorporated herein by reference.
	 
	 	         (h) Notwithstanding anything in this Section to the contrary,
the provisions of this Section and Section 4.8 may be applied
separately (or will be applied separately to the extent required by
Regulations) to each plan within the meaning of Regulation
1.401(k)-1(g)(11). Furthermore, for Plan Years beginning after
December 31, 1998, the provisions of Code Section 401(k)(3)(F) may
be used to exclude from consideration all Non-Highly Compensated
Employees who have not satisfied the minimum age and service
requirements of Code Section 410(a)(1)(A).

4.8 ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE TESTS

		
	 	         (a) In the event (or if it is anticipated) that, for Plan
Years beginning after December 31, 1996, the “Actual Contribution
Percentage” for the Highly Compensated Participant group exceeds
(or might exceed) the “Actual Contribution Percentage” for the
Non-Highly Compensated Participant group pursuant to Section
4.7(a), the Administrator (on or before the fifteenth day of the
third month following the end of the Plan Year, but in no event
later than the close of the following Plan Year) shall direct the
Trustee to distribute to the
Highly Compensated Participant having the largest dollar
amount of contributions determined pursuant to Section 4.7(b)(1),
the Vested portion of such contributions (and Income allocable to
such contributions) and, if forfeitable, forfeit such non-Vested
contributions attributable to Employer matching contributions (and
Income allocable to such forfeitures) until the total amount of
Excess Aggregate Contributions has been distributed, or until the
Participant’s remaining amount equals the amount of contributions
determined pursuant to Section 4.7(b)(1) of the
Highly Compensated Participant having the second largest
dollar amount of contributions. This process shall continue until
the total amount of Excess Aggregate Contributions has been
distributed.
	 
	 	               If the correction of Excess Aggregate Contributions
attributable to Employer matching contributions is not in
proportion to the Vested and non-Vested portion of such
contributions, then the Vested portion of the Participant’s Account
attributable to Employer matching contributions after the
correction shall be subject to Section 6.5(h).
	 
	 	         (b) Any distribution and/or forfeiture of less than the entire
amount of Excess Aggregate Contributions (and Income) shall be
treated as a pro rata distribution and/or forfeiture of Excess
Aggregate Contributions and Income. Distribution of Excess
Aggregate Contributions shall be designated by the Employer as a
distribution of Excess Aggregate Contributions (and Income).
Forfeitures of Excess Aggregate Contributions shall be treated in
accordance with Section 4.4.

40

 

		
	 	         (c)   Excess Aggregate Contributions, including forfeited
matching contributions, shall be treated as Employer contributions
for purposes of Code Sections 404 and 415 even if distributed from
the Plan.
	 
	 	                Forfeited matching contributions that are reallocated to
Participants’ Accounts for the Plan Year in which the forfeiture
occurs shall be treated as an “annual addition” pursuant to Section
4.9(b) for the Participants to whose Accounts they are reallocated
and for the Participants from whose Accounts they are forfeited.
	 
	 	         (d)   The determination of the amount of Excess Aggregate
Contributions with respect to any Plan Year shall be made after
first determining the Excess Contributions, if any, to be treated
as after-tax voluntary Employee contributions due to
recharacterization for the plan year of any other qualified cash or
deferred arrangement (as defined in Code Section 401(k)) maintained
by the Employer that ends with or within the Plan Year or which are
treated as after-tax voluntary Employee contributions due to
recharacterization pursuant to Section 4.6(a).
	 
	 	         (e)   If during a Plan Year the projected aggregate amount of
Employer matching contributions to be allocated to all Highly
Compensated Participants under this Plan would, by virtue of the
tests set forth in Section 4.7(a), cause the Plan to fail such
tests, then the Administrator may automatically reduce
proportionately or in the order provided in Section 4.8(a) each
affected Highly Compensated Participant’s projected share of such
contributions by an amount necessary to satisfy one of the tests
set forth in Section 4.7(a).
	 
	 	         (f)   Notwithstanding the above, within twelve (12) months after
the end of the Plan Year, the Employer may make a special Qualified
Non-Elective Contribution in accordance with one of the following
provisions which contribution shall be allocated to the
Participant’s Account of each Non-Highly Compensated eligible to
share in the allocation in accordance with such provision. The
Employer shall provide the Administrator with written notification
of the amount of the contribution being made and for which
provision it is being made pursuant to:

		
	 	         (1)   A special Qualified Non-Elective Contribution may be made
on behalf of Non-Highly Compensated Participants in an amount
sufficient to satisfy (or to prevent an anticipated failure
of) one of the tests set forth in Section 4.7. Such
contribution shall be allocated in the same proportion that
each Non-Highly Compensated Participant’s 414(s) Compensation
for the year (or prior year if the prior year testing method
is being used) bears to the total 414(s) Compensation of all
Non-Highly Compensated Participants for such year.
	 
	 	         (2)   A special Qualified Non-Elective Contribution may be made
on behalf of Non-Highly Compensated Participants in an amount
sufficient to satisfy (or to prevent an anticipated failure
of) one of the tests set forth in Section 4.7. Such
contribution shall be allocated in the same proportion

41

 

		
	 	that each Non-Highly Compensated Participant electing salary
reductions pursuant to Section 4.2 in the same proportion
that each such Non-Highly Compensated Participant’s Deferred
Compensation for the year (or at the end of the prior Plan
Year if the prior year testing method is being used) bears to
the total Deferred Compensation of all such Non-Highly
Compensated Participants for such year.

		
	 	         (3)   A special Qualified Non-Elective Contribution may be made
on behalf of Non-Highly Compensated Participants in an amount
sufficient to satisfy (or to prevent an anticipated failure
of) one of the tests set forth in Section 4.7. Such
contribution shall be allocated in equal amounts (per
capita).
	 
	 	         (4)   A special Qualified Non-Elective Contribution may be made
on behalf of Non-Highly Compensated Participants electing
salary reductions pursuant to Section 4.2 in an amount
sufficient to satisfy (or to prevent an anticipated failure
of) one of the tests set forth in Section 4.5(a). Such
contribution shall be allocated for the year (or at the end
of the prior Plan Year if the prior year testing method is
used) to each Non-Highly Compensated Participant electing
salary reductions pursuant to Section 4.2 in equal amounts
(per capita).
	 
	 	         (5)   A special Qualified Non-Elective Contribution may be made
on behalf of Non-Highly Compensated Participants in an amount
sufficient to satisfy (or to prevent an anticipated failure
of) one of the tests set forth in Section 4.7. Such
contribution shall be allocated to the Non-Highly Compensated
Participant having the lowest 414(s) Compensation, until one
of the tests set forth in Section 4.7 is satisfied (or is
anticipated to be satisfied), or until such Non-Highly
Compensated Participant has received the maximum “annual
addition” pursuant to Section 4.9. This process shall
continue until one of the tests set forth in Section 4.7 is
satisfied (or is anticipated to be satisfied).

		
	 	         Notwithstanding the above, at the Employer’s discretion,
Non-Highly Compensated Participants who are not employed at the end
of the Plan Year (or at the end of the prior Plan Year if the prior
year testing method is being used) shall not be eligible to receive
a special Qualified Non-Elective Contribution and shall be
disregarded.
	 
	 	         Notwithstanding the above, for Plan Years beginning after
December 31, 1998, if the testing method changes from the current
year testing method to the prior year testing method, then for
purposes of preventing the double counting of Qualified
Non-Elective Contributions for the first testing year for which the
change is effective, any special Qualified Non-Elective
Contribution on behalf of Non-Highly Compensated Participants used
to satisfy the “Actual Deferral Percentage” or “Actual Contribution
Percentage” test under the current year testing method for the
prior year testing year shall be disregarded.

42

 

		
	 	         (g)   Any Excess Aggregate Contributions (and Income) which are
distributed on or after 2 1/2 months after the end of the Plan Year
shall be subject to the ten percent (10%) Employer excise tax
imposed by Code Section 4979.

4.9   MAXIMUM ANNUAL ADDITIONS

		
	 	         (a)   Notwithstanding the foregoing, for “limitation years”
beginning after December 31, 1994, the maximum “annual additions”
credited to a Participant’s accounts for any “limitation year”
shall equal the lesser of: (1) $30,000 adjusted annually as
provided in Code Section 415(d) pursuant to the Regulations, or (2)
twenty-five percent (25%) of the Participant’s “415 Compensation”
for such “limitation year.” If the Employer contribution that would
otherwise be contributed or allocated to the Participant’s accounts
would cause the “annual additions” for the “limitation year” to
exceed the maximum “annual additions,” the amount contributed or
allocated will be reduced so that the “annual additions” for the
“limitation year” will equal the maximum “annual additions,” and
any amount in excess of the maximum “annual additions,” which would
have been allocated to such Participant may be allocated to other
Participants. For any short “limitation year,” the dollar
limitation in (1) above shall be reduced by a fraction, the
numerator of which is the number of full months in the short
“limitation year” and the denominator of which is twelve (12).
	 
	 	         (b)   For purposes of applying the limitations of Code Section
415, “annual additions” means the sum credited to a Participant’s
accounts for any “limitation year” of (1) Employer contributions,
(2) Employee contributions, (3) forfeitures, (4) amounts allocated,
after March 31, 1984, to an individual medical account, as defined
in Code Section 415(l)(2) which is part of a pension or annuity
plan maintained by the Employer and (5) amounts derived from
contributions paid or accrued after December 31, 1985, in taxable
years ending after such date, which are attributable to
post-retirement medical benefits allocated to the separate account
of a key employee (as defined in Code Section 419A(d)(3)) under a
welfare benefit plan (as defined in Code Section 419(e)) maintained
by the Employer. Except, however, the “415 Compensation” percentage
limitation referred to in paragraph (a)(2) above shall not apply
to: (1) any contribution for medical benefits (within the meaning
of Code Section 419A(f)(2)) after separation from service which is
otherwise treated as an “annual addition,” or (2) any amount
otherwise treated as an “annual addition” under Code Section
415(l)(1).
	 
	 	         (c)   For purposes of applying the limitations of Code Section
415, the transfer of funds from one qualified plan to another is
not an “annual addition.” In addition, the following are not
Employee contributions for the purposes of Section 4.9(b)(2): (1)
rollover contributions (as defined in Code Sections 402(e)(6),
403(a)(4), 403(b)(8) and 408(d)(3)); (2) repayments of loans made
to a Participant from the Plan; (3) repayments of distributions
received by an Employee pursuant to Code Section 411(a)(7)(B)
(cash-outs); (4) repayments of distributions received by an
Employee pursuant to Code Section 411(a)(3)(D) (mandatory
contributions); and (5) Employee contributions to a simplified
employee pension excludable from gross income under Code Section
408(k)(6).

43

 

		
	 	         (d)   For purposes of applying the limitations of Code Section
415, the “limitation year” shall be the Plan Year.
	 
	 	         (e)   For the purpose of this Section, all qualified defined
contribution plans (whether terminated or not) ever maintained by
the Employer shall be treated as one defined contribution plan.
	 
	 	         (f)   For the purpose of this Section, if the Employer is a
member of a controlled group of corporations, trades or businesses
under common control (as defined by Code Section 1563(a) or Code
Section 414(b) and (c) as modified by Code Section 415(h)), is a
member of an affiliated service group (as defined by Code Section
414(m)), or is a member of a group of entities required to be
aggregated pursuant to Regulations under Code Section 414(o), all
Employees of such Employers shall be considered to be employed by a
single Employer.
	 
	 	         (g)   For the purpose of this Section, if this Plan is a Code
Section 413(c) plan, each Employer who maintains this Plan will be
considered to be a separate Employer.
	 
	 	         (h)(1)   If a Participant participates in more than one defined
contribution plan maintained by the Employer which have different
Anniversary Dates, the maximum “annual additions” under this Plan
shall equal the maximum “annual additions” for the “limitation
year” minus any “annual additions” previously credited to such
Participant’s accounts during the “limitation year.”

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

		
	 	         (i)   Notwithstanding anything contained in this Section to the
contrary, the limitations, adjustments and other requirements
prescribed in this Section shall at all times comply with the
provisions of Code Section 415 and the Regulations thereunder.

44

 

4.10   ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS

		
	 	         (a)   If, as a result of the allocation of Forfeitures, a
reasonable error in estimating a Participant’s Compensation, a
reasonable error in determining the amount of elective deferrals
(within the meaning of Code Section 402(g)(3)) that may be made
with respect to any Participant under the limits of Section 4.9 or
other facts and circumstances to which Regulation 1.415-6(b)(6)
shall be applicable, the “annual additions” under this Plan would
cause the maximum “annual additions” to be exceeded for any
Participant, the “excess amount” will be disposed of in one of the
following manners, as uniformly determined by the Administrator for
all Participants similarly situated.

		
	 	         (1)   Any unmatched Deferred Compensation and, thereafter,
proportionately from Deferred Compensation which is matched
and matching contributions which relate to such Deferred
Compensation, will be reduced to the extent they would reduce
the “excess amount.” The Deferred Compensation (and for
“limitation years” beginning after December 31, 1995, any
gains attributable to such Deferred Compensation) will be
distributed to the Participant and the Employer matching
contributions (and for “limitation years” beginning after
December 31, 1995, any gains attributable to such matching
contributions) will be used to reduce the Employer
contribution in the next “limitation year”;
	 
	 	         (2)   If, after the application of subparagraph (1) above, an
“excess amount” still exists, and the Participant is covered
by the Plan at the end of the “limitation year,” the “excess
amount” will be used to reduce the Employer contribution
(including allocation of any Forfeitures) for such
Participant in the next “limitation year,” and each
succeeding “limitation year” if necessary;
	 
	 	         (3)   If, after the application of subparagraphs (1) and (2)
above, an “excess amount” still exists, and the Participant
is not covered by the Plan at the end of the “limitation
year,” the “excess amount” will be held unallocated in a
“Section 415 suspense account.” The “Section 415 suspense
account” will be applied to reduce future Employer
contributions (including allocation of any Forfeitures) for
all remaining Participants in the next “limitation year,” and
each succeeding “limitation year” if necessary;
	 
	 	         (4)   If a “Section 415 suspense account” is in existence at
any time during the “limitation year” pursuant to this
Section, it will not participate in the allocation of
investment gains and losses of the Trust Fund. If a “Section
415 suspense account” is in existence at any time during a
particular “limitation year,” all amounts in the “Section 415
suspense account” must be allocated and reallocated to
Participants’ accounts before any Employer contributions or
any Employee contributions may be made to the Plan for that
“limitation year.” Except as provided in (1) above, 

45

 

		
	 	“excess amounts” may not be distributed to Participants or Former
Participants.

		
	 	         (b)   For purposes of this Article, “excess amount” for any
Participant for a “limitation year” shall mean the excess, if any,
of (1) the “annual additions” which would be credited to the
Participant’s account under the terms of the Plan without regard to
the limitations of Code Section 415 over (2) the maximum “annual
additions” determined pursuant to Section 4.9.
	 
	 	         (c)   For purposes of this Section, “Section 415 suspense
account” shall mean an unallocated account equal to the sum of
“excess amounts” for all Participants in the Plan during the
“limitation year.”

4.11   ROLLOVERS AND PLAN-TO-PLAN TRANSFERS FROM QUALIFIED PLANS

		
	 	         (a)   With the consent of the Administrator, amounts may be
transferred (within the meaning of Code Section 414(l)) to this
Plan from other tax qualified plans under Code Section 401(a) by
Eligible Employees, provided the trust from which such funds are
transferred permits the transfer to be made and the transfer will
not jeopardize the tax exempt status of the Plan or Trust or create
adverse tax consequences for the Employer. Prior to accepting any
transfers to which this Section applies, the Administrator may
require an opinion of counsel that the amounts to be transferred
meet the requirements of this Section. The amounts transferred
shall be set up in a separate account herein referred to as a
Participant’s Transfer/Rollover Account. Furthermore, for vesting
purposes, the Participant’s portion of the Participant’s
Transfer/Rollover Account attributable to any transfer shall be
subject to Section 6.4(b).
	 
	 	         Except as permitted by Regulations (including Regulation
1.411(d)-4), amounts attributable to elective contributions (as
defined in Regulation 1.401(k)-1(g)(3)), including amounts treated
as elective contributions, which are transferred from another
qualified plan in a plan-to-plan transfer (other than a direct
rollover) shall be subject to the distribution limitations provided
for in Regulation 1.401(k)-1(d).
	 
	 	         (b)   With the consent of the Administrator, the Plan may accept
a “rollover” by Eligible Employees, provided the “rollover” will
not jeopardize the tax exempt status of the Plan or create adverse
tax consequences for the Employer. Prior to accepting any
“rollovers” to which this Section applies, the Administrator may
require the Employee to establish (by providing opinion of counsel
or otherwise) that the amounts to be rolled over to this Plan meet
the requirements of this Section. The amounts rolled over shall be
set up in a separate account herein referred to as a “Participant’s
Transfer/Rollover Account.” Such account shall be fully Vested at
all times and shall not be subject to Forfeiture for any reason.
	 
	 	         For purposes of this Section, the term “qualified plan” shall
mean any tax qualified plan under Code Section 401(a), or, any
other plans from which distributions are eligible to be rolled over
into this Plan pursuant to the Code. The 

46

 

		
	 	term “rollover” means: (i)
amounts transferred to this Plan directly from another qualified
plan; (ii) distributions received by an Employee from other
“qualified
plans” which are eligible for tax-free rollover to a
“qualified plan” and which are transferred by the Employee to this
Plan within sixty (60) days following receipt thereof; (iii)
amounts transferred to this Plan from a conduit individual
retirement account provided that the conduit individual retirement
account has no assets other than assets which (A) were previously
distributed to the Employee by another “qualified plan,” (B) were
eligible for tax-free rollover to a “qualified plan” and (C) were
deposited in such conduit individual retirement account within
sixty (60) days of receipt thereof; (iv) amounts distributed to the
Employee from a conduit individual retirement account meeting the
requirements of clause (iii) above, and transferred by the Employee
to this Plan within sixty (60) days of receipt thereof from such
conduit individual retirement account; and (v) any other amounts
which are eligible to be rolled over to this Plan pursuant to the
Code.
	 
	 	         (c)   Amounts in a Participant’s Transfer/Rollover Account shall
be held by the Trustee pursuant to the provisions of this Plan and
may not be withdrawn by, or distributed to the Participant, in
whole or in part, except as provided in paragraph (d) of this
Section. The Trustee shall have no duty or responsibility to
inquire as to the propriety of the amount, value or type of assets
transferred, nor to conduct any due diligence with respect to such
assets; provided, however, that such assets are otherwise eligible
to be held by the Trustee under the terms of this Plan.
	 
	 	         (d)   The Administrator, at the election of the Participant,
shall direct the Trustee to distribute all or a portion of the
amount credited to the Participant’s Transfer/Rollover Account. Any
distributions of amounts held in a Participant’s Transfer/Rollover
Account shall be made in a manner which is consistent with and
satisfies the provisions of Section 6.5, including, but not limited
to, all notice and consent requirements of Code Section 411(a)(11)
and the Regulations thereunder. Furthermore, such amounts shall be
considered as part of a Participant’s benefit in determining
whether an involuntary cash-out of benefits may be made without
Participant consent.
	 
	 	         (e)   The Administrator may direct that Employee transfers and
rollovers made after a Valuation Date be segregated into a separate
account for each Participant until such time as the allocations
pursuant to this Plan have been made, at which time they may remain
segregated or be invested as part of the general Trust Fund or be
directed by the Participant pursuant to Section 4.12.
	 
	 	         (f)   This Plan shall not accept any direct or indirect
transfers (as that term is defined and interpreted under Code
Section 401(a)(11) and the Regulations thereunder) from a defined
benefit plan, money purchase plan (including a target benefit
plan), stock bonus or profit sharing plan which would otherwise
have provided for a life annuity form of payment to the
Participant.
	 
	 	         (g)   Notwithstanding anything herein to the contrary, a
transfer directly to this Plan from another qualified plan (or a
transaction having the effect of such 

47

 

		
	 	a transfer) shall only be
permitted if it will not result in the elimination or reduction of
any “Section 411(d)(6) protected benefit” as described in Section
8.1.

4.12   DIRECTED INVESTMENT ACCOUNT

		
	 	         (a)   Participants may, subject to a procedure established by
the Administrator (the Participant Direction Procedures) and
applied in a uniform nondiscriminatory manner, direct the Trustee,
in writing (or in such other form which is acceptable to the
Trustee), to invest all of their accounts in specific assets,
specific funds or other investments permitted under the Plan and
the Participant Direction Procedures. That portion of the interest
of any Participant so directing will thereupon be considered a
Participant’s Directed Account.
	 
	 	         (b)   As of each Valuation Date, all Participant Directed
Accounts shall be charged or credited with the net earnings, gains,
losses and expenses as well as any appreciation or depreciation in
the market value using publicly listed fair market values when
available or appropriate as follows:

		
	 	(1)   to the extent that the assets in a Participant’s Directed
Account are accounted for as pooled assets or investments,
the allocation of earnings, gains and losses of each
Participant’s Directed Account shall be based upon the total
amount of funds so invested in a manner proportionate to the
Participant’s share of such pooled investment; and
	 
	 	(2)   to the extent that the assets in the Participant’s
Directed Account are accounted for as segregated assets, the
allocation of earnings, gains and losses from such assets
shall be made on a separate and distinct basis.

		
	 	         (c)   Investment directions will be processed as soon as
administratively practicable after proper investment directions are
received from the Participant. No guarantee is made by the Plan,
Employer, Administrator or Trustee that investment directions will
be processed on a daily basis, and no guarantee is made in any
respect regarding the processing time of an investment direction.
Notwithstanding any other provision of the Plan, the Employer,
Administrator or Trustee reserves the right to not value an
investment option on any given Valuation Date for any reason deemed
appropriate by the Employer, Administrator or Trustee. Furthermore,
the processing of any investment transaction may be delayed for any
legitimate business reason (including, but not limited to, failure
of systems or computer programs, failure of the means of the
transmission of data, force majeure, the failure of a service
provider to timely receive values or prices, and correction for
errors or omissions or the errors or omissions of any service
provider). The processing date of a transaction will be binding for
all purposes of the Plan and considered the applicable Valuation
Date for an investment transaction.
	 
	 	         (d)   The Participant Direction Procedures shall provide an
explanation of the circumstances under which Participants and their
Beneficiaries may give investment instructions, including, but need
not be limited to, the following:

48

 

		
	 	         (1)   the conveyance of instructions by the Participants and
their Beneficiaries to invest Participant Directed Accounts
in Directed Investment Options;
	 
	 	         (2)   the name, address and phone number of the Fiduciary (and,
if applicable, the person or persons designated by the
Fiduciary to act on its behalf) responsible for providing
information to the Participant or a Beneficiary upon request
relating to the Directed Investment Options;
	 
	 	         (3)   applicable restrictions on transfers to and from any
Designated Investment Alternative;
	 
	 	         (4)   any restrictions on the exercise of voting, tender and
similar rights related to a Directed Investment Option by the
Participants or their Beneficiaries;
	 
	 	         (5)   a description of any transaction fees and expenses which
affect the balances in Participant Directed Accounts in
connection with the purchase or sale of Directed Investment
Options; and
	 
	 	         (6)   general procedures for the dissemination of investment
and other information relating to the Designated Investment
Alternatives as deemed necessary or appropriate, including
but not limited to a description of the following:

		
	 	         (i)   the investment vehicles available under the Plan,
including specific information regarding any Designated
Investment Alternative;
	 
	 	         (ii)   any designated Investment Managers; and
	 
	 	         (iii)   a description of the additional information which
may be obtained upon request from the Fiduciary
designated to provide such information.

		
	 	         (e)   With respect to any Employer stock which is allocated to a
Participant’s Directed Investment Account, the Participant or
Beneficiary shall direct the Trustee with regard to any voting,
tender and similar rights associated with the ownership of Employer
stock, (hereinafter referred to as the “Stock Rights”) as follows:

		
	 	         (1)   each Participant or Beneficiary shall direct the Trustee
to vote or otherwise exercise such Stock Rights in accordance
with the provisions, conditions and terms of any such Stock
Rights;
	 
	 	         (2)   such directions shall be provided to the Trustee by the
Participant or Beneficiary in accordance with the procedure
as established by the Administrator and the Trustee shall
vote or otherwise exercise such Stock 

49

 

		
	 	Rights with respect to
which it has received directions to do so under this Section;
and

		
	 	(3)   to the extent to which a Participant or Beneficiary does
not instruct the Trustee to vote or otherwise exercise such
Stock Rights, such Participants or Beneficiaries shall be deemed to have
directed the Trustee that such Stock Rights remain nonvoted
and unexercised.

		
	 	         (f)   Any information regarding investments available under the
Plan, to the extent not required to be described in the Participant
Direction Procedures, may be provided to the Participant in one or
more written documents (or in any other form including, but not
limited to, electronic media) which are separate from the
Participant Direction Procedures and are not thereby incorporated
by reference into this Plan.
	 
	 	         (g)   The Administrator may, in its discretion, include in or
exclude by amendment or other action from the Participant Direction
Procedures such instructions, guidelines or policies as it deems
necessary or appropriate to ensure proper administration of the
Plan, and may interpret the same accordingly.

4.13   QUALIFIED MILITARY SERVICE

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

ARTICLE V

VALUATIONS

5.1   VALUATION OF THE TRUST FUND

         The Administrator shall direct the Trustee, as of each Valuation Date, to
determine the net worth of the assets comprising the Trust Fund as it exists on
the Valuation Date. In determining such net worth, the Trustee shall value the
assets comprising the Trust Fund at their fair market value (or their
contractual value in the case of a Contract or Policy) as of the Valuation Date
and shall deduct all expenses for which the Trustee has not yet obtained
reimbursement from the Employer or the Trust Fund. The Trustee may update the
value of any shares held in the Participant Directed Account by reference to
the number of shares held by that Participant, priced at the market value as of
the Valuation Date.

5.2   METHOD OF VALUATION

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

50

 

business on the Valuation
Date, which bid price shall be obtained from a registered broker or an
investment banker. In determining the fair market value of assets other than
securities for which
trading or bid prices can be obtained, the Trustee may appraise such
assets itself, or in its discretion, employ one or more appraisers for that
purpose and rely on the values established by such appraiser or appraisers.

ARTICLE VI

DETERMINATION AND DISTRIBUTION OF BENEFITS

6.1   DETERMINATION OF BENEFITS UPON RETIREMENT

         Every Participant may terminate employment with the Employer and retire
for the purposes hereof on the Participant’s Normal Retirement Date. However, a
Participant may postpone the termination of employment with the Employer to a
later date, in which event the participation of such Participant in the Plan,
including the right to receive allocations pursuant to Section 4.4, shall
continue until such Participant’s Late Retirement Date. Upon a Participant’s
Retirement Date or attainment of Normal Retirement Date without termination of
employment with the Employer, or as soon thereafter as is practicable, the
Trustee shall distribute, at the election of the Participant, all amounts
credited to such Participant’s Combined Account in accordance with Section 6.5.

6.2   DETERMINATION OF BENEFITS UPON DEATH

		
	 	         (a)   Upon the death of a Participant before the Participant’s
Retirement Date or other termination of employment, all amounts
credited to such Participant’s Combined Account shall become fully
Vested. The Administrator shall direct the Trustee, in accordance
with the provisions of Sections 6.6 and 6.7, to distribute the
value of the deceased Participant’s accounts to the Participant’s
Beneficiary.
	 
	 	         (b)   Upon the death of a Former Participant, the Administrator
shall direct the Trustee, in accordance with the provisions of
Sections 6.6 and 6.7, to distribute any remaining Vested amounts
credited to the accounts of a deceased Former Participant to such
Former Participant’s Beneficiary.
	 
	 	         (c)   Any security interest held by the Plan by reason of an
outstanding loan to the Participant or Former Participant shall be
taken into account in determining the amount of the death benefit.
	 
	 	         (d)   The Administrator may require such proper proof of death
and such evidence of the right of any person to receive payment of
the value of the account of a deceased Participant or Former
Participant as the Administrator may deem desirable. The
Administrator’s determination of death and of the right of any
person to receive payment shall be conclusive.
	 
	 	         (e)   The Beneficiary of the death benefit payable pursuant to
this Section shall be the Participant’s spouse. Except, however,
the Participant may designate a Beneficiary other than the spouse
if:

51

 

		
	 	(1)   the spouse has waived the right to be the Participant’s
Beneficiary, or
	 
	 	(2)   the Participant is legally separated or has been
abandoned (within the meaning of local law) and the
Participant has a court order to such effect (and there is no
“qualified domestic relations order” as defined in Code
Section 414(p) which provides otherwise), or
	 
	 	(3)   the Participant has no spouse, or
	 
	 	(4)   the spouse cannot be located.

		
	 	         In such event, the designation of a Beneficiary shall be made
on a form satisfactory to the Administrator. A Participant may at
any time revoke a designation of a Beneficiary or change a
Beneficiary by filing written (or in such other form as permitted
by the Internal Revenue Service) notice of such revocation or
change with the Administrator. However, the Participant’s spouse
must again consent in writing (or in such other form as permitted
by the Internal Revenue Service) to any change in Beneficiary
unless the original consent acknowledged that the spouse had the
right to limit consent only to a specific Beneficiary and that the
spouse voluntarily elected to relinquish such right.
	 
	 	         (f)   In the event no valid designation of Beneficiary exists,
or if the Beneficiary is not alive at the time of the Participant’s
death, the death benefit will be paid in the following order of
priority to:

		
	 	(1)   the Participant’s surviving spouse;
	 
	 	(2)   the Participant’s children, including adopted children,
per stirpes;
	 
	 	(3)   the Participant’s surviving parents, in equal shares; or
	 
	 	(4)   the Participant’s estate.

		
	 	         If the Beneficiary does not predecease the Participant, but
dies prior to distribution of the death benefit, the death benefit
will be paid to the Beneficiary’s estate.
	 
	 	         (g)   Notwithstanding anything in this Section to the contrary,
if a Participant has designated the spouse as a Beneficiary, then a
divorce decree or a legal separation that relates to such spouse
shall revoke the Participant’s designation of the spouse as a
Beneficiary unless the decree or a qualified domestic relations
order (within the meaning of Code Section 414(p)) provides
otherwise.
	 
	 	         (h)   Any consent by the Participant’s spouse to waive any
rights to the death benefit must be in writing (or in such other
form as permitted by the Internal Revenue Service), must
acknowledge the effect of such waiver, and be witnessed by a Plan
representative or a notary public. Further, the spouse’s

52

 

		
	 	consent must be irrevocable and must acknowledge the specific
nonspouse Beneficiary.

6.3   DISABILITY RETIREMENT BENEFITS

         No disability benefits are provided in this Plan. If a Participant’s
employment is terminated because of disability, the Participant’s benefits
shall be determined pursuant to Section 6.4.

6.4   DETERMINATION OF BENEFITS UPON TERMINATION

		
	 	         (a)   If a Participant’s employment with the Employer is
terminated for any reason other than death or retirement, then such
Participant shall be entitled to such benefits as are provided
hereinafter pursuant to this Section 6.4.
	 
	 	         Distribution of the funds due to a Terminated Participant
shall be made on the occurrence of an event which would result in
the distribution had the Terminated Participant remained in the
employ of the Employer (upon the Participant’s death or Normal
Retirement). However, at the election of the Participant, the
Administrator shall direct the Trustee that the entire Vested
portion of the Terminated Participant’s Combined Account be payable
to such Terminated Participant. Any distribution under this
paragraph shall be made in a manner which is consistent with and
satisfies the provisions of Section 6.5, including, but not limited
to, all notice and consent requirements of Code Section 411(a)(11)
and the Regulations thereunder.
	 
	 	         If, for Plan Years beginning after August 5, 1997, the value
of a Terminated Participant’s Vested benefit derived from Employer
and Employee contributions does not exceed $5,000 and, if the
distribution is made prior to March 22, 1999, has never exceeded
$5,000 at the time of any prior distribution, then the
Administrator shall direct the Trustee to cause the entire Vested
benefit to be paid to such Participant in a single lump sum.
	 
	 	         (b)   The Vested portion of any Participant’s Account shall be a
percentage of the total amount credited to the Participant’s
Account determined on the basis of the Participant’s number of
Years of Service according to the following schedule:

Vesting Schedule

	 	 	 	 	 	 
	Years of Service	 	Percentage
	Less than 2
	 	 	0 	%
	
	
	
	

	 	2
	 	 	20 	%
	
	
	
	

	 	3
	 	 	40 	%
	
	
	
	

	 	4
	 	 	60 	%
	
	
	
	

	 	5
	 	 	80 	%
	
	
	
	

	 	6
	 	 	100 	%

53

 

		
	 	         (c)    Notwithstanding the vesting schedule above, the Vested
percentage of a Participant’s Account shall not be less than the
Vested percentage attained as of the later of the effective date or
adoption date of this amendment and restatement.
	 
	 	         (d)    Notwithstanding the vesting schedule above, upon the
complete discontinuance of the Employer contributions to the Plan
or upon any full or partial termination of the Plan, all amounts
then credited to the account of any affected Participant shall
become 100% Vested and shall not thereafter be subject to
Forfeiture.
	 
	 	         (e)    The computation of a Participant’s nonforfeitable
percentage of such Participant’s interest in the Plan shall not be
reduced as the result of any direct or indirect amendment to this
Plan. In the event that the Plan is amended to change or modify any
vesting schedule, or if the Plan is amended in any way that
directly or indirectly affects the computation of the Participant’s
nonforfeitable percentage, or if the Plan is deemed amended by an
automatic change to a top heavy vesting schedule, then each
Participant with at least three (3) Years of Service as of the
expiration date of the election period may elect to have such
Participant’s nonforfeitable percentage computed under the Plan
without regard to such amendment or change. If a Participant fails
to make such election, then such Participant shall be subject to
the new vesting schedule. The Participant’s election period shall
commence on the adoption date of the amendment and shall end sixty
(60) days after the latest of:

	 	 	 	(1)    the adoption date of the amendment,
	 
	 	 	 	(2)    the effective date of the amendment, or
	 
	 	 	 	(3)    the date the Participant receives written notice of the
amendment from the Employer or Administrator.

		
	 	         (f)    In determining Years of Service for purposes of vesting
under the Plan, Years of Service prior to the vesting computation
period in which an Employee attains age eighteen shall be excluded.

6.5  DISTRIBUTION OF BENEFITS

		
	 	         (a)    The Administrator, pursuant to the election of the
Participant, shall direct the Trustee to distribute to a
Participant or such Participant’s Beneficiary any amount to which
the Participant is entitled under the Plan in one or more of the
following methods:

	 	 	 	(1)    One lump-sum payment in cash or in property allocated to
the Participant’s account except, however, for property
distributions made prior to the earlier of (A) the effective
date of an amendment limiting distribution in property to
property allocated to the Participant’s account,
or (B) the 

54

 

	 	 	 	adoption date of this amendment and restatement,
distributions in property are not limited to property in the
Participant’s account.
	 
	 	 	 	(2)    Payments over a period certain in monthly, quarterly,
semiannual, or annual cash installments. In order to provide
such installment payments, the Administrator may (A)
segregate the aggregate amount thereof in a separate,
federally insured savings account, certificate of deposit in
a bank or savings and loan association, money market
certificate or other liquid short-term security or (B)
purchase a nontransferable annuity contract for a term
certain (with no life contingencies) providing for such
payment. The period over which such payment is to be made
shall not extend beyond the Participant’s life expectancy (or
the life expectancy of the Participant and the Participant’s
designated Beneficiary).

		
	 	         (b)    Any distribution to a Participant, for Plan Years
beginning after August 5, 1997, who has a benefit which exceeds
$5,000 or, if the distribution is made prior to March 22, 1999, has
ever exceeded $5,000 at the time of any prior distribution, shall
require such Participant’s written (or in such other form as
permitted by the Internal Revenue Service) consent if such
distribution commences prior to the time the benefit is
“immediately distributable.” A benefit is “immediately
distributable” if any part of the benefit could be distributed to
the Participant (or surviving spouse) before the Participant
attains (or would have attained if not deceased) the later of the
Participant’s Normal Retirement Age or age 62. However, for
distributions prior to October 17, 2000, if a Participant has begun
to receive distributions pursuant to an optional form of benefit
under which at least one scheduled periodic distribution has not
yet been made, and if the value of the Participant’s benefit,
determined at the time of the first distribution under that
optional form of benefit, exceeded $5,000, then the value of the
Participant’s benefit prior to October 17, 2000 is deemed to
continue to exceed such amount.
	 
	 	         (c)    The following rules will apply to the consent requirements
set forth in subsection (b):

	 	 	 	(1)    The Participant must be informed of the right to defer
receipt of the distribution. If a Participant fails to
consent, it shall be deemed an election to defer the
commencement of payment of any benefit. However, any election
to defer the receipt of benefits shall not apply with respect
to distributions which are required under Section 6.5(d).
	 
	 	 	 	(2)    Notice of the rights specified under this paragraph shall
be provided no less than thirty (30) days and no more than
ninety (90) days before the date the distribution commences.
	 
	 	 	 	(3)    Written (or such other form as permitted by the Internal
Revenue Service) consent of the Participant to the
distribution must not be made before the Participant receives
the notice and must not be made more than ninety (90) days
before the date the distribution commences.

55

 

	 	 	 	(4)    No consent shall be valid if a significant detriment is
imposed under the Plan on any Participant who does not
consent to the distribution.

		
	 	                  Any such distribution may commence less than thirty (30) days
after the notice required under Regulation 1.411(a)-11(c) is given,
provided that: (1) the Administrator clearly informs the
Participant that the Participant 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 (2) the
Participant, after receiving the notice, affirmatively elects a
distribution.
	 
	 	         (d)    Notwithstanding any provision in the Plan to the contrary,
the distribution of a Participant’s benefits made on or after
January 1, 1997 shall be made in accordance with the following
requirements and shall otherwise comply with Code Section 401(a)(9)
and the Regulations thereunder (including Regulation
1.401(a)(9)-2), the provisions of which are incorporated herein by
reference:

	 	 	 	(1)    A Participant’s benefits shall be distributed or must
begin to be distributed not later than April 1st of the
calendar year following the later of (i) the calendar year in
which the Participant attains age 70 1/2 or (ii) the calendar
year in which the Participant retires, provided, however,
that this clause (ii) shall not apply in the case of a
Participant who is a “five (5) percent owner” at any time
during the Plan Year ending with or within the calendar year
in which such owner attains age 70 1/2. Such distributions
shall be equal to or greater than any required distribution.
	 
	 	 	 	Alternatively, distributions to a Participant must begin no
later than the applicable April 1st as determined under the
preceding paragraph and must be made over a period certain
measured by the life expectancy of the Participant (or the
life expectancies of the Participant and the Participant’s
designated Beneficiary) in accordance with Regulations.
	 
	 	 	 	(2)    Distributions to a Participant and the Participant’s
Beneficiaries shall only be made in accordance with the
incidental death benefit requirements of Code Section
401(a)(9)(G) and the Regulations thereunder.

		
	 	                  With respect to distributions under the Plan made for calendar
years beginning on or after January 1, 2002, the Plan will apply
the minimum distribution requirements of Code Section 401(a)(9) in
accordance with the Regulations under Code Section 401(a)(9) that
were proposed on January 17, 2001, notwithstanding any provision of
the Plan to the contrary. This amendment shall continue in effect
until the end of the last calendar year beginning before the
effective date of final Regulations under Code Section 401(a)(9) or
such other date specified in guidance published by the Internal
Revenue Service.
	 
	 	         (e)    For purposes of this Section, the life expectancy of a
Participant and a Participant’s spouse may, at the election of the
Participant or the Participant’s spouse, be redetermined in
accordance with Regulations. The election, once made, shall be
irrevocable. If no election is made by the time distributions must
commence, 

56

 

		
	 	then the life expectancy of the Participant and the
Participant’s spouse shall not be subject to recalculation.
Life expectancy and joint and last survivor expectancy shall be
computed using the return multiples in Tables V and VI of
Regulation 1.72-9.
	 
	 	         (f)    The restrictions imposed by this Section shall not apply
if a Participant has, prior to January 1, 1984, made a written
designation to have retirement benefits paid in an alternative
method acceptable under Code Section 401(a)(9) as in effect prior
to the enactment of the Tax Equity and Fiscal Responsibility Act of
1982.
	 
	 	         (g)    All annuity Contracts under this Plan shall be
non-transferable when distributed. Furthermore, the terms of any
annuity Contract purchased and distributed to a Participant or
spouse shall comply with all of the requirements of the Plan.
	 
	 	         (h)    If a distribution is made to a Participant who has not
severed employment and who is not fully Vested in the Participant’s
Account and the Participant may increase the Vested percentage in
such account, then, at any relevant time the Participant’s Vested
portion of the account will be equal to an amount (“X”) determined
by the formula:

X equals P(AB plus D) – D

		
	 	                  For purposes of applying 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 distribution.

6.6  DISTRIBUTION OF BENEFITS UPON DEATH

		
	 	         (a)(1)    The death benefit payable pursuant to Section 6.2 shall
be paid to the Participant’s Beneficiary within a reasonable time
after the Participant’s death by either of the following methods,
as elected by the Participant (or if no election has been made
prior to the Participant’s death, by the Participant’s Beneficiary)
subject, however, to the rules specified in Section 6.6(b):

	 	 	 	(i)    One lump-sum payment in cash or in property
allocated to the Participant’s account except, however,
for property distributions made prior to the earlier of
(A) the effective date of an amendment limiting
distribution in property to property allocated to the
Participant’s account, or (B) the adoption date of this
amendment and restatement, distributions in property
are not limited to property in the Participant’s
account.
	 
	 	 	 	(ii)    Payment in monthly, quarterly, semi-annual, or
annual cash installments over a period to be determined
by the Participant or the Participant’s Beneficiary.
After periodic installments commence, the Beneficiary
shall have the right to direct the Trustee to reduce
the period over which such periodic installments
shall be made, and the 

57

 

	 	 	 	Trustee shall adjust the cash
amount of such periodic installments accordingly.

	 	 	 	(2)    In the event the death benefit payable pursuant to
Section 6.2 is payable in installments, then, upon the death
of the Participant, the Administrator may direct the Trustee
to segregate the death benefit into a separate account, and
the Trustee shall invest such segregated account separately,
and the funds accumulated in such account shall be used for
the payment of the installments.

		
	 	         (b)    Notwithstanding any provision in the Plan to the contrary,
distributions upon the death of a Participant shall be made in
accordance with the following requirements and shall otherwise
comply with Code Section 401(a)(9) and the Regulations thereunder.
If it is determined, pursuant to Regulations, that the distribution
of a Participant’s interest has begun and the Participant dies
before the entire interest has been distributed, the remaining
portion of such interest shall be distributed at least as rapidly
as under the method of distribution selected pursuant to Section
6.5 as of the date of death. If a Participant dies before receiving
any distributions of the interest in the Plan or before
distributions are deemed to have begun pursuant to Regulations,
then the death benefit shall be distributed to the Participant’s
Beneficiaries by December 31st of the calendar year in which the
fifth anniversary of the Participant’s date of death occurs.
	 
	 	                  However, the 5-year distribution requirement of the preceding
paragraph shall not apply to any portion of the deceased
Participant’s interest which is payable to or for the benefit of a
designated Beneficiary. In such event, such portion may, at the
election of the Participant (or the Participant’s designated
Beneficiary) be distributed over a period not extending beyond the
life expectancy of such designated Beneficiary provided such
distribution begins not later than December 31st of the calendar
year immediately following the calendar year in which the
Participant died. However, in the event the Participant’s spouse
(determined as of the date of the Participant’s death) is the
designated Beneficiary, the requirement that distributions commence
within one year of a Participant’s death shall not apply. In lieu
thereof, distributions must commence on or before the later of: (1)
December 31st of the calendar year immediately following the
calendar year in which the Participant died; or (2) December 31st
of the calendar year in which the Participant would have attained
age 70 1/2. If the surviving spouse dies before distributions to
such spouse begin, then the 5-year distribution requirement of this
Section shall apply as if the spouse was the Participant.
	 
	 	         (c)    For purposes of Section 6.6(b), the election by a
designated Beneficiary to be excepted from the 5-year distribution
requirement must be made no later than December 31st of the
calendar year following the calendar year of the Participant’s
death. Except, however, with respect to a designated Beneficiary
who is the Participant’s surviving spouse, the election must be
made by the earlier of: (1) December 31st of the calendar year
immediately following the calendar year in which the Participant
died or, if later, December 31st of the calendar year in which the
Participant would have attained age 70 1/2; or (2) December 31st of
the calendar year which contains the fifth anniversary of the date
of the Participant’s death. An 

58

 

		
	 	election by a designated Beneficiary
must be in writing (or
in such other form as permitted by the Internal Revenue
Service) and shall be irrevocable as of the last day of the
election period stated herein. In the absence of an election by the
Participant or a designated Beneficiary, the 5-year distribution
requirement shall apply.
	 
	 	         (d)    For purposes of this Section, the life expectancy of a
Participant and a Participant’s spouse may, at the election of the
Participant or the Participant’s spouse, be redetermined in
accordance with Regulations. The election, once made, shall be
irrevocable. If no election is made by the time distributions must
commence, then the life expectancy of the Participant and the
Participant’s spouse shall not be subject to recalculation. Life
expectancy and joint and last survivor expectancy shall be computed
using the return multiples in Tables V and VI of Regulation 1.72-9.
	 
	 	         (e)    For purposes of this Section, any amount paid to a child
of the Participant will be treated as if it had been paid to the
surviving spouse if the amount becomes payable to the surviving
spouse when the child reaches the age of majority.
	 
	 	         (f)    Subject to the spouse’s right of consent afforded under
the Plan, the restrictions imposed by this Section shall not apply
if a Participant has, prior to January 1, 1984, made a written
designation to have death benefits paid in an alternative method
acceptable under Code Section 401(a)(9) as in effect prior to the
enactment of the Tax Equity and Fiscal Responsibility Act of 1982.

6.7  TIME OF SEGREGATION OR DISTRIBUTION

                  Except as limited by Sections 6.5 and 6.6, whenever the Trustee is to make
a distribution or to commence a series of payments the distribution or series
of payments may be made or begun on such date or as soon thereafter as is
practicable. However, unless a Former Participant elects in writing to defer
the receipt of benefits (such election may not result in a death benefit that
is more than incidental), the payment of benefits shall begin not later than
the sixtieth (60th) day after the close of the Plan Year in which the latest of
the following events occurs: (a) the date on which the Participant attains the
earlier of age 65 or the Normal Retirement Age specified herein; (b) the tenth
(10th) anniversary of the year in which the Participant commenced participation
in the Plan; or (c) the date the Participant terminates service with the
Employer.

                  Notwithstanding the foregoing, the failure of a Participant to consent to
a distribution that is “immediately distributable” (within the meaning of
Section 6.5), shall be deemed to be an election to defer the commencement of
payment of any benefit sufficient to satisfy this Section.

6.8  DISTRIBUTION FOR MINOR OR INCOMPETENT BENEFICIARY

                  In the event a distribution is to be made to a minor or incompetent
Beneficiary, then the Administrator may direct that such distribution be paid
to the legal guardian, or if none
in the case of a minor Beneficiary, to a parent of such Beneficiary or a
responsible adult with whom the Beneficiary maintains residence, or to the
custodian for such Beneficiary under the Uniform Gift to Minors Act or Gift to
Minors Act, if such is permitted by the laws of the state in which said

59

 

Beneficiary resides. Such a payment to the legal guardian, custodian or parent
of a minor Beneficiary shall fully discharge the Trustee, Employer, and Plan
from further liability on account thereof.

6.9  LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN

                  In the event that all, or any portion, of the distribution payable to a
Participant or Beneficiary hereunder shall, at the later of the Participant’s
attainment of age 62 or Normal Retirement Age, remain unpaid solely by reason
of the inability of the Administrator, after sending a registered letter,
return receipt requested, to the last known address, and after further diligent
effort, to ascertain the whereabouts of such Participant or Beneficiary, the
amount so distributable shall be treated as a Forfeiture pursuant to the Plan.
Notwithstanding the foregoing, effective January 1, 2001, or if later, the
adoption date of this amendment and restatement, if the value of a
Participant’s Vested benefit derived from Employer and Employee contributions
does not exceed $5,000, then the amount distributable may, in the sole
discretion of the Administrator, either be treated as a Forfeiture, or be paid
directly to an individual retirement account described in Code Section 408(a)
or an individual retirement annuity described in Code Section 408(b) at the
time it is determined that the whereabouts of the Participant or the
Participant’s Beneficiary cannot be ascertained. In the event a Participant or
Beneficiary is located subsequent to the Forfeiture, such benefit shall be
restored, first from Forfeitures, if any, and then from an additional Employer
contribution if necessary. However, regardless of the preceding, a benefit
which is lost by reason of escheat under applicable state law is not treated as
a Forfeiture for purposes of this Section nor as an impermissable forfeiture
under the Code.

6.10  PRE-RETIREMENT DISTRIBUTION

                  Unless otherwise provided, at such time as a Participant shall have
attained the age of 59 1/2 years, the Administrator, at the election of the
Participant who has not severed employment with the Employer, shall direct the
Trustee to distribute all or a portion of the amount then credited to the
Participant’s Combined Account and the Participant’s Transfer/Rollover Account
maintained on behalf of the Participant. However, no distribution from the
Participant’s Account shall occur prior to 100% vesting. In the event that the
Administrator makes such a distribution, the Participant shall continue to be
eligible to participate in the Plan on the same basis as any other Employee.
Any distribution made pursuant to this Section shall be made in a manner
consistent with Section 6.5, including, but not limited to, all notice and
consent requirements of Code Section 411(a)(11) and the Regulations thereunder.

                  Notwithstanding the above, pre-retirement distributions from a
Participant’s Elective Account shall not be permitted prior to the Participant
attaining age 59 1/2 except as otherwise permitted under the terms of the Plan.

6.11  ADVANCE DISTRIBUTION FOR HARDSHIP

		
	 	         (a)    The Administrator, at the election of the Participant,
shall direct the Trustee to distribute to any Participant in any
one Plan Year up to the lesser of 100% of the Participant’s
Elective Account valued as of the last Valuation Date or the amount
necessary to satisfy the immediate and heavy financial need of the
Participant. Any distribution made pursuant to this Section shall
be deemed to be 

60

 

		
	 	made as of the first day of the Plan Year or, if
later, the Valuation Date immediately preceding the date of
distribution, and the Participant’s Elective Account shall be
reduced accordingly. Withdrawal under this Section is deemed to be
on account of an immediate and heavy financial need of the
Participant only if the withdrawal is for:

	 	 	 	(1)    Medical expenses described in Code Section 213(d)
incurred by the Participant, the Participant’s spouse, or any
of the Participant’s dependents (as defined in Code Section
152) or necessary for these persons to obtain medical care as
described in Code Section 213(d);
	 
	 	 	 	(2)    The costs directly related to the purchase (excluding
mortgage payments) of a principal residence for the
Participant;
	 
	 	 	 	(3)    Payment of tuition, related educational fees, and room
and board expenses for the next twelve (12) months of
post-secondary education for the Participant and the
Participant’s spouse, children, or dependents; or
	 
	 	 	 	(4)    Payments necessary to prevent the eviction of the
Participant from the Participant’s principal residence or
foreclosure on the mortgage on that residence.

		
	 	         (b)    No distribution shall be made pursuant to this Section
unless the Administrator, based upon the Participant’s
representation and such other facts as are known to the
Administrator, determines that all of the following conditions are
satisfied:

	 	 	 	(1)    The distribution is not in excess of the amount of the
immediate and heavy financial need of the Participant. The
amount of the immediate and heavy financial need may include
any amounts necessary to pay any federal, state, or local
income taxes or penalties reasonably anticipated to result
from the distribution;
	 
	 	 	 	(2)    The Participant has obtained all distributions, other
than hardship distributions, and all nontaxable (at the time
of the loan) loans currently available under all plans
maintained by the Employer;
	 
	 	 	 	(3)    The Plan, and all other plans maintained by the Employer,
provide that the Participant’s elective deferrals and
after-tax voluntary Employee contributions will be suspended
for at least twelve (12) months after receipt of the hardship
distribution or, the Participant, pursuant to a legally
enforceable agreement, will suspend elective deferrals and
after-tax
voluntary Employee contributions to the Plan and all other
plans maintained by the Employer for at least twelve (12)
months after receipt of the hardship distribution; and
	 
	 	 	 	(4)    The Plan, and all other plans maintained by the Employer,
provide that the Participant may not make elective deferrals
for the Participant’s taxable year immediately following the
taxable year of the hardship 

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	 	 	 	distribution in excess of the
applicable limit under Code Section 402(g) for such next
taxable year less the amount of such Participant’s elective
deferrals for the taxable year of the hardship distribution.

		
	 	         (c)    Notwithstanding the above, distributions from the
Participant’s Elective Account pursuant to this Section shall be
limited, as of the date of distribution, to the Participant’s
Elective Account as of the end of the last Plan Year ending before
July 1, 1989, plus the total Participant’s Deferred Compensation
after such date, reduced by the amount of any previous
distributions pursuant to this Section and Section 6.10.
	 
	 	         (d)    Any distribution made pursuant to this Section shall be
made in a manner which is consistent with and satisfies the
provisions of Section 6.5, including, but not limited to, all
notice and consent requirements of Code Section 411(a)(11) and the
Regulations thereunder.

6.12  QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION

                  All rights and benefits, including elections, provided to a Participant in
this Plan shall be subject to the rights afforded to any “alternate payee”
under a “qualified domestic relations order.” Furthermore, a distribution to an
“alternate payee” shall be permitted if such distribution is authorized by a
“qualified domestic relations order,” even if the affected Participant has not
separated from service and has not reached the “earliest retirement age” under
the Plan. For the purposes of this Section, “alternate payee,” “qualified
domestic relations order” and “earliest retirement age” shall have the meaning
set forth under Code Section 414(p).

ARTICLE VII

TRUSTEE

7.1  BASIC RESPONSIBILITIES OF THE TRUSTEE

		
	 	         (a)    The Trustee shall have the following categories of
responsibilities:

	 	 	 	(1)    Consistent with the “funding policy and method”
determined by the Employer, to invest, manage, and control
the Plan assets subject, however, to the direction of a
Participant with respect to Participant Directed Accounts,
the Employer or an Investment Manager appointed by the
Employer or any agent of the Employer;
	 
	 	 	 	(2)    At the direction of the Administrator, to pay benefits
required under the Plan to be paid to Participants, or, in
the event of their death, to their Beneficiaries; and
	 
	 	 	 	(3)    To maintain records of receipts and disbursements and
furnish to the Employer and/or Administrator for each Plan
Year a written annual report pursuant to Section 7.7.

		
	 	         (b)    In the event that the Trustee shall be directed by a
Participant (pursuant to the Participant Direction Procedures), or
the Employer, or an 

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	 	Investment Manager or other agent appointed by
the Employer with respect to the investment of any or all Plan
assets, the Trustee shall have no liability with respect to the
investment of such assets, but shall be responsible only to execute
such investment instructions as so directed.

	 	 	 	(1)    The Trustee shall be entitled to rely fully on the
written (or other form acceptable to the Administrator and
the Trustee, including, but not limited to, voice recorded)
instructions of a Participant (pursuant to the Participant
Direction Procedures), or the Employer, or any Fiduciary or
nonfiduciary agent of the Employer, in the discharge of such
duties, and shall not be liable for any loss or other
liability, resulting from such direction (or lack of
direction) of the investment of any part of the Plan assets.
	 
	 	 	 	(2)    The Trustee may delegate the duty of executing such
instructions to any nonfiduciary agent, which may be an
affiliate of the Trustee or any Plan representative.
	 
	 	 	 	(3)    The Trustee may refuse to comply with any direction from
the Participant in the event the Trustee, in its sole and
absolute discretion, deems such directions improper by virtue
of applicable law. The Trustee shall not be responsible or
liable for any loss or expense which may result from the
Trustee’s refusal or failure to comply with any directions
from the Participant.
	 
	 	 	 	(4)    Any costs and expenses related to compliance with the
Participant’s directions shall be borne by the Participant’s
Directed Account, unless paid by the Employer.

		
	 	         (c)    If there shall be more than one Trustee, they shall act by
a majority of their number, but may authorize one or more of them
to sign papers on their behalf.

7.2  INVESTMENT POWERS AND DUTIES OF THE TRUSTEE

		
	 	         (a)    The Trustee shall invest and reinvest the Trust Fund to
keep the Trust Fund invested without distinction between principal
and income and in such securities or property, real or personal,
wherever situated, as the Trustee shall deem advisable, including,
but not limited to, stocks, common or preferred,
open-end or closed-end mutual funds, bonds and other evidences
of indebtedness or ownership, and real estate or any interest
therein. The Trustee shall at all times in making investments of
the Trust Fund consider, among other factors, the short and
long-term financial needs of the Plan on the basis of information
furnished by the Employer. In making such investments, the Trustee
shall not be restricted to securities or other property of the
character expressly authorized by the applicable law for trust
investments; however, the Trustee shall give due regard to any
limitations imposed by the Code or the Act so that at all times the
Plan may qualify as a qualified Profit Sharing Plan and Trust.

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	 	         (b)    The Trustee may employ a bank or trust company pursuant to
the terms of its usual and customary bank agency agreement, under
which the duties of such bank or trust company shall be of a
custodial, clerical and record-keeping nature.
	 
	 	         (c)    The Trustee may transfer to a common, collective, pooled
trust fund or money market fund maintained by any corporate Trustee
or affiliate thereof hereunder, all or such part of the Trust Fund
as the Trustee may deem advisable, and such part or all of the
Trust Fund so transferred shall be subject to all the terms and
provisions of the common, collective, pooled trust fund or money
market fund which contemplate the commingling for investment
purposes of such trust assets with trust assets of other trusts.
The Trustee may transfer any part of the Trust Fund intended for
temporary investment of cash balances to a money market fund
maintained by INTRUST Bank, N.A. or its affiliates. The Trustee may
withdraw from such common, collective, pooled trust fund or money
market fund all or such part of the Trust Fund as the Trustee may
deem advisable.

7.3  OTHER POWERS OF THE TRUSTEE

                The Trustee, in addition to all powers and authorities under common law,
statutory authority, including the Act, and other provisions of the Plan, shall
have the following powers and authorities, to be exercised in the Trustee’s
sole discretion:

		
	 	         (a)    To purchase, or subscribe for, any securities or other
property and to retain the same. In conjunction with the purchase
of securities, margin accounts may be opened and maintained;
	 
	 	         (b)    To sell, exchange, convey, transfer, grant options to
purchase, or otherwise dispose of any securities or other property
held by the Trustee, by private contract or at public auction. No
person dealing with the Trustee shall be bound to see to the
application of the purchase money or to inquire into the validity,
expediency, or propriety of any such sale or other disposition,
with or without advertisement;
	 
	 	         (c)    To vote upon any stocks, bonds, or other securities; to
give general or special proxies or powers of attorney with or
without power of substitution; to exercise any conversion
privileges, subscription rights or other options, and to make any
payments incidental thereto; to oppose, or to consent to, or
otherwise participate in, corporate reorganizations or other
changes affecting corporate
securities, and to delegate discretionary powers, and to pay
any assessments or charges in connection therewith; and generally
to exercise any of the powers of an owner with respect to stocks,
bonds, securities, or other property. However, the Trustee shall
not vote proxies relating to securities for which it has not been
assigned full investment management responsibilities. In those
cases where another party has such investment authority or
discretion, the Trustee will deliver all proxies to said party who
will then have full responsibility for voting those proxies;

64

 

		
	 	         (d)    To cause any securities or other property to be registered
in the Trustee’s own name, in the name of one or more of the
Trustee’s nominees, in a clearing corporation, in a depository, or
in book entry form or in bearer form, but the books and records of
the Trustee shall at all times show that all such investments are
part of the Trust Fund;
	 
	 	         (e)    To borrow or raise money for the purposes of the Plan in
such amount, and upon such terms and conditions, as the Trustee
shall deem advisable; and for any sum so borrowed, to issue a
promissory note as Trustee, and to secure the repayment thereof by
pledging all, or any part, of the Trust Fund; and no person lending
money to the Trustee shall be bound to see to the application of
the money lent or to inquire into the validity, expediency, or
propriety of any borrowing;
	 
	 	         (f)    To keep such portion of the Trust Fund in cash or cash
balances as the Trustee may, from time to time, deem to be in the
best interests of the Plan, without liability for interest thereon;
	 
	 	         (g)    To accept and retain for such time as the Trustee may deem
advisable any securities or other property received or acquired as
Trustee hereunder, whether or not such securities or other property
would normally be purchased as investments hereunder;
	 
	 	         (h)    To make, execute, acknowledge, and deliver any and all
documents of transfer and conveyance and any and all other
instruments that may be necessary or appropriate to carry out the
powers herein granted;
	 
	 	         (i)    To settle, compromise, or submit to arbitration any
claims, debts, or damages due or owing to or from the Plan, to
commence or defend suits or legal or administrative proceedings,
and to represent the Plan in all suits and legal and administrative
proceedings;
	 
	 	         (j)    To employ suitable agents and counsel and to pay their
reasonable expenses and compensation, and such agent or counsel may
or may not be agent or counsel for the Employer;
	 
	 	         (k)    To apply for and procure from responsible insurance
companies, to be selected by the Administrator, as an investment of
the Trust Fund such annuity, or other Contracts (on the life of any
Participant) as the Administrator shall deem proper; to exercise,
at any time or from time to time, whatever rights and privileges
may be granted under such annuity, or other Contracts; to collect,
receive, and settle for the proceeds of all such annuity or
other Contracts as and when entitled to do so under the provisions
thereof;
	 
	 	         (l)    To invest funds of the Trust in time deposits or savings
accounts bearing a reasonable rate of interest or in cash or cash
balances without liability for interest thereon, including the
specific authority to invest in any type of deposit of the Trustee
(or of a financial institution related to a Trustee);

65

 

		
	 	         (m)    To invest in Treasury Bills and other forms of United
States government obligations;
	 
	 	         (n)    To invest in shares of investment companies registered
under the Investment Company Act of 1940, including any money
market fund advised by or offered through INTRUST Bank, N.A.;
	 
	 	         (o)    To sell, purchase and acquire put or call options if the
options are traded on and purchased through a national securities
exchange registered under the Securities Exchange Act of 1934, as
amended, or, if the options are not traded on a national securities
exchange, are guaranteed by a member firm of the New York Stock
Exchange regardless of whether such options are covered;
	 
	 	         (p)    To deposit monies in federally insured savings accounts or
certificates of deposit in banks or savings and loan associations
including the specific authority to make deposit into any savings
accounts or certificates of deposit of the Trustee (or a financial
institution related to the Trustee);
	 
	 	         (q)    To pool all or any of the Trust Fund, from time to time,
with assets belonging to any other qualified employee pension
benefit trust created by the Employer or any Affiliated Employer,
and to commingle such assets and make joint or common investments
and carry joint accounts on behalf of this Plan and Trust and such
other trust or trusts, allocating undivided shares or interests in
such investments or accounts or any pooled assets of the two or
more trusts in accordance with their respective interests;
	 
	 	         (r)    To appoint a nonfiduciary agent or agents to assist the
Trustee in carrying out any investment instructions of Participants
and of any Investment Manager or Fiduciary, and to compensate such
agent(s) from the assets of the Plan, to the extent not paid by the
Employer;
	 
	 	         (s)    To do all such acts and exercise all such rights and
privileges, although not specifically mentioned herein, as the
Trustee may deem necessary to carry out the purposes of the Plan.
	 
	 	         (t)    For purposes of satisfying the requirements of Department
of Labor Prohibited Transaction Class Exemption 77-4 in connection
with the purchase or sale of shares of the American Independence
Fund Trust by the Trustee, the Employer acknowledges that it has
received the prospectus for the American Independence Fund Trust
together with the other information required by such exemption, and
approves the purchase and sale of shares of the American
Independence Fund Trust. If the rate of investment advisory fees
or other fees
charged by the American Independence Fund Trust and paid by
the Plan are increased after execution of this document, the
Employer shall be notified of any such change in writing and must
provide written approval to the continued holding of any shares of
the American Independence Fund Trust acquired by the Plan prior to
such change.

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7.4  LOANS TO PARTICIPANTS

		
	 	         (a)    The Trustee may, in the Trustee’s discretion, make loans
to Participants and Beneficiaries under the following
circumstances: (1) loans shall be made available to all
Participants and Beneficiaries on a reasonably equivalent basis;
(2) loans shall not be made available to Highly Compensated
Employees in an amount greater than the amount made available to
other Participants and Beneficiaries; (3) loans shall bear a
reasonable rate of interest; (4) loans shall be adequately secured;
and (5) loans shall provide for periodic repayment over a
reasonable period of time.
	 
	 	         (b)    Loans made pursuant to this Section (when added to the
outstanding balance of all other loans made by the Plan to the
Participant) may, in accordance with a uniform and
nondiscriminatory policy established by the Administrator, be
limited to the lesser of:

	 	 	 	(1)    $50,000 reduced by the excess (if any) of the highest
outstanding balance of loans from the Plan to the Participant
during the one year period ending on the day before the date
on which such loan is made, over the outstanding balance of
loans from the Plan to the Participant on the date on which
such loan was made, or
	 
	 	 	 	(2)    one-half (1/2) of the present value of the
non-forfeitable accrued benefit of the Participant under the
Plan.

		
	 	                  For purposes of this limit, all plans of the Employer shall be
considered one plan.
	 
	 	         (c)    Loans shall provide for level amortization with payments
to be made not less frequently than quarterly over a period not to
exceed five (5) years. However, loans used to acquire any dwelling
unit which, within a reasonable time, is to be used (determined at
the time the loan is made) as a “principal residence” of the
Participant shall provide for periodic repayment over a reasonable
period of time that may exceed five (5) years. For this purpose, a
“principal residence” has the same meaning as a “principal
residence” under Code Section 1034. Loan repayments may be
suspended under this Plan as permitted under Code Section
414(u)(4).
	 
	 	         (d)    Any loans granted or renewed shall be made pursuant to a
Participant loan program. Such loan program shall be established in
writing and must include, but need not be limited to, the
following:

	 	 	 	(1)    the identity of the person or positions authorized to
administer the Participant loan program;
	 
	 	 	 	(2)    a procedure for applying for loans;
	 
	 	 	 	(3)    the basis on which loans will be approved or denied;

67

 

	 	 	 	(4)    limitations, if any, on the types and amounts of loans
offered;
	 
	 	 	 	(5)    the procedure under the program for determining a
reasonable rate of interest;
	 
	 	 	 	(6)    the types of collateral which may secure a Participant
loan; and
	 
	 	 	 	(7)    the events constituting default and the steps that will
be taken to preserve Plan assets.

		
	 	                  Such Participant loan program shall be contained in a separate
written document which, when properly executed, is hereby
incorporated by reference and made a part of the Plan. Furthermore,
such Participant loan program may be modified or amended in writing
from time to time without the necessity of amending this Section.
	 
	 	         (e)    Any loan to a Participant under the Plan shall be repaid
immediately upon the Participant’s termination of employment with
the Employer or treated as in default unless (i) the Participant,
within 30 days of his termination of employment elects to transfer
the balances in such Participant’s Combined Account and/or Rollover
Account to an eligible retirement plan that will accept a transfer
of a plan loan or (ii) the balance in such Participant’s Combined
Account and Rollover Account is otherwise scheduled to be
transferred to another qualified plan.
	 
	 	         (f)    Notwithstanding anything in this Plan to the contrary, if
a Participant or Beneficiary defaults on a loan made pursuant to
this Section, then the loan default will be a distributable event
to the extent permitted by the Code and Regulations.
	 
	 	         (g)    Notwithstanding anything in this Section to the contrary,
any loans made prior to the date this amendment and restatement is
adopted shall be subject to the terms of the plan in effect at the
time such loan was made.

7.5  DUTIES OF THE TRUSTEE REGARDING PAYMENTS

                  At the direction of the Administrator, the Trustee shall, from time to
time, in accordance with the terms of the Plan, make payments out of the Trust
Fund. The Trustee shall not be responsible in any way for the application of
such payments.

7.6  TRUSTEE’S COMPENSATION AND EXPENSES AND TAXES

                  The Trustee shall be paid such reasonable compensation as set forth in the
Trustee’s fee schedule (if the Trustee has such a schedule) or as agreed upon
in writing by the Employer and the Trustee. However, an individual serving as
Trustee who already receives full-time pay from the Employer shall not receive
compensation from the Plan. In addition, the Trustee shall be reimbursed for
any reasonable expenses, including reasonable counsel fees incurred by it as
Trustee. Such compensation and expenses shall be paid from the Trust Fund
unless paid or advanced by the Employer. All taxes of any kind whatsoever that
may be levied or

68

 

assessed under existing or future laws upon, or in respect of,
the Trust Fund or the income thereof, shall be paid from the Trust Fund.

7.7  ANNUAL REPORT OF THE TRUSTEE

		
	 	         (a)    Within a reasonable period of time after the later of the
Anniversary Date or receipt of the Employer contribution for each
Plan Year, the Trustee, or its agent, shall furnish to the Employer
and Administrator a written statement of account with respect to
the Plan Year for which such contribution was made setting forth:

	 	 	 	(1)    the net income, or loss, of the Trust Fund;
	 
	 	 	 	(2)    the gains, or losses, realized by the Trust Fund upon
sales or other disposition of the assets;
	 
	 	 	 	(3)    the increase, or decrease, in the value of the Trust
Fund;
	 
	 	 	 	(4)    all payments and distributions made from the Trust Fund;
and
	 
	 	 	 	(5)    such further information as the Trustee and/or
Administrator deems appropriate.

		
	 	         (b)    The Employer, promptly upon its receipt of each such
statement of account, shall acknowledge receipt thereof in writing
and advise the Trustee and/or Administrator of its approval or
disapproval thereof. Failure by the Employer to disapprove any such
statement of account within thirty (30) days after its receipt
thereof shall be deemed an approval thereof. The approval by the
Employer of any statement of account shall be binding on the
Employer and the Trustee as to all matters contained in the
statement to the same extent as if the account of the Trustee had
been settled by judgment or decree in an action for a judicial
settlement of its account in a court of competent jurisdiction in
which the Trustee, the Employer and all persons having or claiming
an interest in the Plan were parties. However, nothing contained in
this Section shall deprive the Trustee of its right to have its
accounts judicially settled if the Trustee so desires.

7.8  AUDIT

		
	 	         (a)    If an audit of the Plan’s records shall be required by the
Act and the regulations thereunder for any Plan Year, the
Administrator shall direct the Trustee to engage on behalf of all
Participants an independent qualified public accountant for that
purpose. Such accountant shall, after an audit of the books and
records of the Plan in accordance with generally accepted auditing
standards, within a reasonable period after the close of the Plan
Year, furnish to the Administrator and the Trustee a report of the
audit setting forth the accountant’s opinion as to whether any
statements, schedules or lists that are required by Act Section 103
or the Secretary of Labor to be filed with the Plan’s annual
report, are presented fairly in conformity with generally accepted
accounting principles applied consistently.

69

 

		
	 	         (b)    All auditing and accounting fees shall be an expense of
and may, at the election of the Employer, be paid from the Trust
Fund.
	 
	 	         (c)    If some or all of the information necessary to enable the
Administrator to comply with Act Section 103 is maintained by a
bank, insurance company, or similar institution, regulated,
supervised, and subject to periodic examination by a state or
federal agency, then it shall transmit and certify the accuracy of
that information to the Administrator as provided in Act Section
103(b) within one hundred twenty (120) days after the end of the
Plan Year or such other date as may be prescribed under regulations
of the Secretary of Labor.

7.9  RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE

		
	 	         (a)    Unless otherwise agreed to by both the Trustee and the
Employer, a Trustee may resign at any time by delivering to the
Employer, at least thirty (30) days before its effective date, a
written notice of resignation.
	 
	 	         (b)    Unless otherwise agreed to by both the Trustee and the
Employer, the Employer may remove a Trustee at any time by
delivering to the Trustee, at least thirty (30) days before its
effective date, a written notice of such Trustee’s removal.
	 
	 	         (c)    Upon the death, resignation, incapacity, or removal of any
Trustee, a successor may be appointed by the Employer; and such
successor, upon accepting such appointment in writing and
delivering same to the Employer, shall, without further act, become
vested with all the powers and responsibilities of the predecessor
as if such successor had been originally named as a Trustee herein.
Until such a successor is appointed, the remaining Trustee or
Trustees shall have full authority to act under the terms of the
Plan.
	 
	 	         (d)    The Employer may designate one or more successors prior to
the death, resignation, incapacity, or removal of a Trustee. In the
event a successor is so designated by the Employer and accepts such
designation, the successor shall, without further act, become
vested with all the powers and responsibilities of the predecessor
as if such successor had been originally named as Trustee herein
immediately upon the death, resignation, incapacity, or
removal of the predecessor.
	 
	 	         (e)    Whenever any Trustee hereunder ceases to serve as such,
the Trustee shall furnish to the Employer and Administrator a
written statement of account with respect to the portion of the
Plan Year during which the individual or entity served as Trustee.
This statement shall be either (i) included as part of the annual
statement of account for the Plan Year required under Section 7.7
or (ii) set forth in a special statement. Any such special
statement of account should be rendered to the Employer no later
than the due date of the annual statement of account for the Plan
Year. The procedures set forth in Section 7.7 for the approval by
the Employer of annual statements of account shall apply to any
special statement of account rendered hereunder and approval by the
Employer of any 

70

 

		
	 	such special statement in the manner provided in
Section 7.7 shall have the same effect upon the statement as the
Employer’s approval of an annual statement of account. No successor
to the Trustee shall have any duty or responsibility to investigate
the acts or transactions of any predecessor who has rendered all
statements of account required by Section 7.7 and this
subparagraph.

7.10  TRANSFER OF INTEREST

                  Notwithstanding any other provision contained in this Plan, the Trustee at
the direction of the Administrator shall transfer the Vested interest, if any,
of a Participant to another trust forming part of a pension, profit sharing or
stock bonus plan maintained by such Participant’s new employer and represented
by said employer in writing as meeting the requirements of Code Section 401(a),
provided that the trust to which such transfers are made permits the transfer
to be made.

7.11  TRUSTEE INDEMNIFICATION

                  The Employer agrees to indemnify and hold harmless the Trustee against any
and all claims, losses, damages, expenses and liabilities the Trustee may incur
in the exercise and performance of the Trustee’s power and duties hereunder,
unless the same are determined to be due to gross negligence or willful
misconduct.

7.12  DIRECT ROLLOVER

		
	 	         (a)    Notwithstanding any provision of the Plan to the contrary
that would otherwise limit a “distributee’s” election under this
Section, a “distributee” may elect, at the time and in the manner
prescribed by the Administrator, to have any portion of an
“eligible rollover distribution” that is equal to at least $500
paid directly to an “eligible retirement plan” specified by the
“distributee” in a “direct rollover.”
	 
	 	         (b)    For purposes of this Section the following definitions
shall apply:

	 	 	 	(1)    An “eligible rollover distribution” is any distribution
of all or any portion of the balance to the credit of the
“distributee,” except that an “eligible rollover
distribution” does not include: any distribution that is one
of a series of substantially equal periodic payments (not
less frequently than annually) made for the life (or life
expectancy) of the “distributee” or the joint lives (or joint
life expectancies) of the “distributee” and the
“distributee’s” designated beneficiary, or for a specified
period of ten years or more; any distribution to the extent
such distribution is required under Code Section 401(a)(9);
the portion of any other distribution that is not includible
in gross income (determined without regard to the exclusion
for net unrealized appreciation with respect to employer
securities); any hardship distribution described in Code
Section 401(k)(2)(B)(i)(IV); and any other distribution that
is reasonably expected to total less than $200 during a year.

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	 	 	 	(2)    An “eligible retirement plan” is an individual retirement
account described in Code Section 408(a), an individual
retirement annuity described in Code Section 408(b), an
annuity plan described in Code Section 403(a), or a qualified
trust described in Code Section 401(a), that accepts the
“distributee’s” “eligible rollover distribution.” However, in
the case of an “eligible rollover distribution” to the
surviving spouse, an “eligible retirement plan” is an
individual retirement account or individual retirement
annuity.
	 
	 	 	 	(3)    A “distributee” includes an Employee or former Employee.
In addition, the Employee’s or former Employee’s surviving
spouse and the Employee’s or former Employee’s spouse or
former spouse who is the alternate payee under a qualified
domestic relations order, as defined in Code Section 414(p),
are “distributees” with regard to the interest of the spouse
or former spouse.
	 
	 	 	 	(4)    A “direct rollover” is a payment by the Plan to the
“eligible retirement plan” specified by the “distributee.”

7.13  EMPLOYER SECURITIES AND REAL PROPERTY

                  The Trustee shall be empowered to acquire and hold “qualifying Employer
securities” and “qualifying Employer real property,” as those terms are defined
in the Act, provided, however, that the Trustee shall not be permitted to
acquire any “qualifying Employer securities” or “qualifying Employer real
property” if, immediately after the acquisition of such securities or property,
the fair market value of all “qualifying Employer securities” and “qualifying
Employer real property” held by the Trustee hereunder should amount to more
than 100% of the fair market value of all the assets in the Trust Fund.

ARTICLE VIII

AMENDMENT, TERMINATION AND MERGERS

8.1  AMENDMENT

		
	 	         (a)    The Employer shall have the right at any time to amend
this Plan, subject to the limitations of this Section. However, any
amendment which affects the rights, duties or responsibilities of
the Trustee or Administrator may only be made with the Trustee’s or
Administrator’s written consent. Any such amendment shall become
effective as provided therein upon its execution. The Trustee shall
not be required to execute any such amendment unless the amendment
affects the duties of the Trustee hereunder.
	 
	 	         (b)    No amendment to the Plan shall be effective if it
authorizes or permits any part of the Trust Fund (other than such
part as is required to pay taxes and administration expenses) to be
used for or diverted to any purpose other than for the exclusive
benefit of the Participants or their Beneficiaries or estates; or
causes any reduction in the amount credited to the account of any
Participant; or causes or permits any portion of the Trust Fund to
revert to or become property of the Employer.

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	 	         (c) Except as permitted by Regulations (including Regulation
1.411(d)-4) or other IRS guidance, no Plan amendment or transaction
having the effect of a Plan amendment (such as a merger, plan
transfer or similar transaction) shall be effective if it
eliminates or reduces any “Section 411(d)(6) protected benefit” or
adds or modifies conditions relating to “Section 411(d)(6)
protected benefits” which results in a further restriction on such
benefits unless such “Section 411(d)(6) protected benefits” are
preserved with respect to benefits accrued as of the later of the
adoption date or effective date of the amendment. “Section
411(d)(6) protected benefits” are benefits described in Code
Section 411(d)(6)(A), early retirement benefits and retirement-type
subsidies, and optional forms of benefit. A Plan amendment that
eliminates or restricts the ability of a Participant to receive
payment of the Participant’s interest in the Plan under a
particular optional form of benefit will be permissible if the
amendment satisfies the conditions in (1) and (2) below:

		
	 	(1) The amendment provides a single-sum distribution form
that is otherwise identical to the optional form of benefit
eliminated or restricted. For purposes of this condition (1),
a single-sum distribution form is otherwise identical only if
it is identical in all respects to the eliminated or
restricted optional form of benefit (or would be identical
except that it provides greater rights to the Participant)
except with respect to the timing of payments after
commencement.
	 
	 	(2) The amendment is not effective unless the amendment
provides that the amendment shall not apply to any
distribution with an annuity starting date earlier than the
earlier of: (i) the ninetieth (90th) day after the date the
Participant receiving the distribution has been furnished a
summary that reflects the amendment and that satisfies the
Act requirements at 29 CFR 2520.104b-3 (relating to a summary
of material modifications) or (ii) the first day of the
second Plan Year following the Plan Year in which the
amendment is adopted.

8.2     TERMINATION

		
	 	         (a) The Employer shall have the right at any time to terminate
the Plan by delivering to the Trustee and Administrator written
notice of such termination. Upon any full or partial termination,
all amounts credited to the affected Participants’ Combined
Accounts shall become 100% Vested as provided in Section 6.4 and
shall not thereafter be subject to forfeiture, and all unallocated
amounts, including Forfeitures, shall be allocated to the accounts
of all Participants in accordance with the provisions hereof.
	 
	 	         (b) Upon the full termination of the Plan, the Employer shall
direct the distribution of the assets of the Trust Fund to
Participants in a manner which is consistent with and satisfies the
provisions of Section 6.5. Distributions to a Participant shall be
made in cash or in property allocated to the Participant’s account
or through the purchase of irrevocable nontransferable deferred
commitments from an insurer except, however, for property
distributions made 

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	 	prior to the earlier of (A) the effective date
of an amendment limiting distribution in property to property
allocated to the Participant’s account, or (B) the adoption date of
this amendment and restatement, distributions in property are not
limited to property in the Participant’s account. Except as
permitted by Regulations, the termination of the Plan shall not
result in the reduction of “Section 411(d)(6) protected benefits”
in accordance with Section 8.1(c).

8.3     MERGER, CONSOLIDATION OR TRANSFER OF ASSETS

                           This Plan and Trust may be merged or consolidated with, or its assets
and/or liabilities may be transferred to any other plan and trust only if the
benefits which would be received by a Participant of this Plan, in the event of
a termination of the Plan immediately after such transfer, merger or
consolidation, are at least equal to the benefits the Participant would have
received if the Plan had terminated immediately before the transfer, merger or
consolidation, and such transfer, merger or consolidation does not otherwise
result in the elimination or reduction of any “Section 411(d)(6) protected
benefits” in accordance with Section 8.1(c).

ARTICLE IX

TOP HEAVY

9.1     TOP HEAVY PLAN REQUIREMENTS

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

9.2     DETERMINATION OF TOP HEAVY STATUS

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

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

		
	 	         (b) Aggregate Account: A Participant’s Aggregate Account as of
the Determination Date is the sum of:

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	 	(1) the Participant’s Combined Account balance as of the most
recent valuation occurring within a twelve (12) month period
ending on the Determination Date.
	 
	 	(2) an adjustment for any contributions due as of the
Determination Date. Such adjustment shall be the amount of
any contributions actually made after the Valuation Date but
due on or before the Determination Date, except for the first
Plan Year when such adjustment shall also reflect the amount
of any contributions made after the Determination Date that
are allocated as of a date in that first Plan Year.
	 
	 	(3) any Plan distributions made within the Plan Year that
includes the Determination Date or within the four (4)
preceding Plan Years. However, in the case of distributions
made after the Valuation Date and prior to the Determination
Date, such distributions are not included as distributions
for top heavy purposes to the extent that such distributions
are already included in the Participant’s Aggregate Account
balance as of the Valuation Date. Notwithstanding anything
herein to the contrary, all distributions, including
distributions made prior to January 1, 1984, and
distributions under a terminated plan which if it had not
been terminated would have been required to be included in an
Aggregation Group, will be counted. Further, distributions
from the Plan (including the cash value of life insurance
policies) of a Participant’s account balance because of death
shall be treated as a distribution for the purposes of this
paragraph.
	 
	 	(4) any Employee contributions, whether voluntary or
mandatory. However, amounts attributable to tax deductible
qualified voluntary employee contributions shall not be
considered to be a part of the Participant’s Aggregate
Account balance.
	 
	 	(5) with respect to unrelated rollovers and plan-to-plan
transfers (ones which are both initiated by the Employee and
made from a plan maintained by one employer to a plan
maintained by another employer), if this Plan provides the
rollovers or plan-to-plan transfers, it shall always consider
such rollovers or plan-to-plan transfers as a distribution
for the purposes of this Section. If this Plan is the plan
accepting such rollovers or plan-to-plan transfers, it shall
not consider such rollovers or plan-to-plan transfers as part
of the Participant’s Aggregate Account balance. However,
rollovers or plan-to-plan transfers accepted prior to January
1, 1984 shall be considered as part of the Participant’s
Aggregate Account balance.
	 
	 	(6) with respect to related rollovers and plan-to-plan
transfers (ones either not initiated by the Employee or made
to a plan maintained by the same employer), if this Plan
provides the rollover or plan-to-plan transfer, it shall not
be counted as a distribution for purposes of this Section. If
this Plan is the plan accepting such rollover or plan-to-plan
transfer, it shall consider such rollover or plan-to-plan
transfer as part of the Participant’s 

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	 	Aggregate Account
balance, irrespective of the date on which such rollover or
plan-to-plan transfer is accepted.
	 
	 	(7) For the purposes of determining whether two employers are
to be treated as the same employer in (5) and (6) above, all
employers aggregated under Code Section 414(b), (c), (m) and
(o) are treated as the same employer.

		
	 	         (c) “Aggregation Group” means either a Required Aggregation
Group or a Permissive Aggregation Group as hereinafter determined.

		
	 	(1) Required Aggregation Group: In determining a Required
Aggregation Group hereunder, each plan of the Employer in
which a Key Employee is a participant in the Plan Year
containing the Determination Date or any of the four
preceding Plan Years, and each other plan of the Employer
which enables any plan in which a Key Employee participates
to meet the requirements of Code Sections 401(a)(4) or 410,
will be required to be aggregated. Such group shall be known
as a Required Aggregation Group.
	 
	 	In the case of a Required Aggregation Group, each plan in the
group will be considered a Top Heavy Plan if the Required
Aggregation Group is a Top Heavy Group. No plan in the
Required Aggregation Group will be considered a Top Heavy
Plan if the Required Aggregation Group is not a Top Heavy
Group.
	 
	 	(2) Permissive Aggregation Group: The Employer may also
include any other plan not required to be included in the
Required Aggregation Group, provided the resulting group,
taken as a whole, would continue to satisfy the provisions of
Code Sections 401(a)(4) and 410. Such group shall be known as
a Permissive Aggregation Group.
	 
	 	In the case of a Permissive Aggregation Group, only a plan
that is part of the Required Aggregation Group will be
considered a Top Heavy Plan if the Permissive Aggregation
Group is a Top Heavy Group. No plan in the Permissive
Aggregation Group will be considered a Top Heavy Plan if the
Permissive Aggregation Group is not a Top Heavy Group.
	 
	 	(3) Only those plans of the Employer in which the
Determination Dates fall within the same calendar year shall
be aggregated in order to determine whether such plans are
Top Heavy Plans.
	 
	 	(4) An Aggregation Group shall include any terminated plan of
the Employer if it was maintained within the last five (5)
years ending on the Determination Date.

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

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

		
	 	         (f) “Top Heavy Group” means an Aggregation Group in which, as
of the Determination Date, the sum of:

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

		
	 	         exceeds sixty percent (60%) of a similar sum determined for
all Participants.

ARTICLE X

MISCELLANEOUS

10.1     PARTICIPANT’S RIGHTS

                           This Plan shall not be deemed to constitute a contract between the
Employer and any Participant or to be a consideration or an inducement for the
employment of any Participant or Employee. Nothing contained in this Plan shall
be deemed to give any Participant or Employee the right to be retained in the
service of the Employer or to interfere with the right of the Employer to
discharge any Participant or Employee at any time regardless of the effect
which such discharge shall have upon the Employee as a Participant of this
Plan.

10.2     ALIENATION

		
	 	         (a) Subject to the exceptions provided below, and as otherwise
permitted by the Code and the Act, no benefit which shall be
payable out of the Trust Fund to any person (including a
Participant or the Participant’s Beneficiary) shall be subject in
any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, or charge, and any attempt to anticipate,
alienate, sell, transfer, assign, pledge, encumber, or charge the
same shall be void; and no such benefit shall in any manner be
liable for, or subject to, the debts, contracts, liabilities,
engagements, or torts of any such person, nor shall it be subject
to attachment or legal process for or against such person, and the
same shall not be recognized by the Trustee, except to such extent
as may be required by law.

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	 	         (b) Subsection (a) shall not apply to the extent a Participant
or Beneficiary is indebted to the Plan, by reason of a loan made
pursuant to Section 7.4. At the time a distribution is to be made
to or for a Participant’s or Beneficiary’s benefit, such proportion
of the amount to be distributed as shall equal such indebtedness
shall be paid to the Plan, to apply against or discharge such
indebtedness. Prior to making a payment, however, the Participant
or Beneficiary must be given written notice by the Administrator
that such indebtedness is to be so paid in whole or part from the
Participant’s Combined Account. If the Participant or Beneficiary
does not agree that the indebtedness is a valid claim against the
Vested Participant’s Combined Account, the Participant or
Beneficiary shall be entitled to a review of the validity of the
claim in accordance with procedures provided in Sections 2.7 and
2.8.

		
	 	         (c) Subsection (a) shall not apply to a “qualified domestic
relations order” defined in Code Section 414(p), and those other
domestic relations orders permitted to be so treated by the
Administrator under the provisions of the Retirement Equity Act of
1984. The Administrator shall establish a written procedure to
determine the qualified status of domestic relations orders and to
administer distributions under such qualified orders. Further, to
the extent provided under a “qualified domestic relations order,” a
former spouse of a Participant shall be treated as the spouse or
surviving spouse for all purposes under the Plan.

		
	 	         (d) Subsection (a) shall not apply to an offset to a
Participant’s accrued benefit against an amount that the
Participant is ordered or required to pay the Plan with respect to
a judgment, order, or decree issued, or a settlement entered into,
on or after August 5, 1997, in accordance with Code Sections
401(a)(13)(C) and (D).

10.3     CONSTRUCTION OF PLAN

                           This Plan and Trust shall be construed and enforced according to the Code,
the Act and the laws of the State of Nebraska, other than its laws respecting
choice of law, to the extent not pre-empted by the Act.

10.4     GENDER AND NUMBER

                           Wherever any words are used herein in the masculine, feminine or neuter
gender, they shall be construed as though they were also used in another gender
in all cases where they would so apply, and whenever any words are used herein
in the singular or plural form, they shall be construed as though they were
also used in the other form in all cases where they would so apply.

10.5     LEGAL ACTION

                           In the event any claim, suit, or proceeding is brought regarding the Trust
and/or Plan established hereunder to which the Trustee, the Employer or the
Administrator may be a party, and such claim, suit, or proceeding is resolved
in favor of the Trustee, the Employer or the

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                           Administrator, they shall be
entitled to be reimbursed from the Trust Fund for any and all costs, attorney’s
fees, and other expenses pertaining thereto incurred by them for which they
shall have become liable.

10.6     PROHIBITION AGAINST DIVERSION OF FUNDS

		
	 	         (a) Except as provided below and otherwise specifically
permitted by law, it shall be impossible by operation of the Plan
or of the Trust, by termination of either, by power of revocation
or amendment, by the happening of any contingency, by collateral
arrangement or by any other means, for any part of the corpus or
income of any Trust Fund maintained pursuant to the Plan or any
funds contributed thereto to be used for, or diverted to, purposes
other than the exclusive benefit of Participants, Former
Participants, or their Beneficiaries.

		
	 	         (b) In the event the Employer shall make an excessive
contribution under a mistake of fact pursuant to Act Section
403(c)(2)(A), the Employer may demand repayment of such excessive
contribution at any time within one (1) year following the time of
payment and the Trustees shall return such amount to the Employer
within the one (1) year period. Earnings of the Plan attributable
to the contributions may not be returned to the Employer but any
losses attributable thereto must reduce the amount so returned.

		
	 	         (c) Except for Sections 3.5, 3.6, and 4.1(e), any contribution
by the Employer to the Trust Fund is conditioned upon the
deductibility of the contribution by the Employer under the Code
and, to the extent any such deduction is disallowed, the Employer
may, within one (1) year following the final determination of the
disallowance, whether by agreement with the Internal Revenue
Service or by final decision of a competent jurisdiction, demand
repayment of such disallowed contribution and the Trustee shall
return such contribution within one (1) year following the
disallowance. Earnings of the Plan attributable to the contribution
may not be returned to the Employer, but any losses attributable
thereto must reduce the amount so returned.

10.7     EMPLOYER’S AND TRUSTEE’S PROTECTIVE CLAUSE

                           The Employer, Administrator and Trustee, and their successors, shall not
be responsible for the validity of any Contract issued hereunder or for the
failure on the part of the insurer to make payments provided by any such
Contract, or for the action of any person which may delay payment or render a
Contract null and void or unenforceable in whole or in part.

10.8     INSURER’S PROTECTIVE CLAUSE

                           Except as otherwise agreed upon in writing between the Employer and the
insurer, an insurer which issues any Contracts hereunder shall not have any
responsibility for the validity of this Plan or for the tax or legal aspects of
this Plan. The insurer shall be protected and held harmless in acting in
accordance with any written direction of the Trustee, and shall have no duty to
see to the application of any funds paid to the Trustee, nor be required to
question any actions directed by the Trustee. Regardless of any provision of
this Plan, the insurer shall not be

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required to take or permit any action or
allow any benefit or privilege contrary to the terms of any Contract which it
issues hereunder, or the rules of the insurer.

10.9     RECEIPT AND RELEASE FOR PAYMENTS

                           Any payment to any Participant, the Participant’s legal representative,
Beneficiary, or to any guardian or committee appointed for such Participant or
Beneficiary in accordance with the provisions of the Plan, shall, to the extent
thereof, be in full satisfaction of all claims hereunder against the Trustee
and the Employer, either of whom may require such Participant, legal
representative, Beneficiary, guardian or committee, as a condition precedent to
such payment, to execute a receipt and release thereof in such form as shall be
determined by the Trustee or Employer.

10.10     ACTION BY THE EMPLOYER

                           Whenever the Employer under the terms of the Plan is permitted or required
to do or perform any act or matter or thing, it shall be done and performed by
a person duly authorized by its legally constituted authority.

10.11     NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY

                           The “named Fiduciaries” of this Plan are (1) the Employer, (2) the
Administrator, (3) the Trustee and (4) any Investment Manager appointed
hereunder. The named Fiduciaries shall have only those specific powers, duties,
responsibilities, and obligations as are specifically given them under the Plan
including, but not limited to, any agreement allocating or delegating their
responsibilities, the terms of which are incorporated herein by reference. In
general, the Employer shall have the sole responsibility for making the
contributions provided for under Section 4.1; and shall have the authority to
appoint and remove the Trustee and the Administrator; to formulate the Plan’s
“funding policy and method”; and to amend or terminate, in whole or in part,
the Plan. The Administrator shall have the sole responsibility for the
administration of the Plan, including, but not limited to, the items specified
in Article II of the Plan, as the same may be allocated or delegated
thereunder. The Administrator shall act as the named Fiduciary responsible for
communicating with the Participant according to the Participant Direction
Procedures. The Trustee shall have the sole responsibility of management of the
assets held under the Trust, except to the extent directed pursuant to Article
II or with respect to those assets, the management of which has been assigned
to an Investment Manager, who shall be solely responsible for the management of
the assets assigned to it, all as specifically provided in the Plan. Each named
Fiduciary warrants that any directions given, information furnished, or action
taken by it shall be in accordance with the provisions of the Plan, authorizing
or providing for such direction, information or action. Furthermore, each named
Fiduciary may rely upon any such direction, information or action of another
named Fiduciary as being proper under the Plan, and is not required under the
Plan to inquire into the propriety of any such direction, information or
action. It is intended under the Plan that each named Fiduciary shall be
responsible for the proper exercise of its own powers, duties, responsibilities
and obligations under the Plan as specified or allocated herein. No named
Fiduciary shall guarantee the Trust Fund in any manner against investment loss
or depreciation in asset value. Any person or group may serve in more than one
Fiduciary capacity.

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10.12     HEADINGS

                           The headings and subheadings of this Plan have been inserted for
convenience of reference and are to be ignored in any construction of the
provisions hereof.

10.13     APPROVAL BY INTERNAL REVENUE SERVICE

                           Notwithstanding anything herein to the contrary, if, pursuant to an
application for qualification filed by or on behalf of the Plan by the time
prescribed by law for filing the Employer’s return for the taxable year in
which the Plan is adopted, or such later date that the Secretary of the
Treasury may prescribe, the Commissioner of Internal Revenue Service or the
Commissioner’s delegate should determine that the Plan does not initially
qualify as a tax-exempt plan under Code Sections 401 and 501, and such
determination is not contested, or if contested, is finally upheld, then if the
Plan is a new plan, it shall be void ab initio and all amounts contributed to
the Plan by the Employer, less expenses paid, shall be returned within one (1)
year and the Plan shall terminate, and the Trustee shall be discharged from all
further obligations. If the disqualification relates to an amended plan, then
the Plan shall operate as if it had not been amended.

10.14     UNIFORMITY

                           All provisions of this Plan shall be interpreted and applied in a uniform,
nondiscriminatory manner. In the event of any conflict between the terms of
this Plan and any Contract purchased hereunder, the Plan provisions shall
control.

ARTICLE XI

PARTICIPATING EMPLOYERS

11.1     ADOPTION BY OTHER EMPLOYERS

                           Notwithstanding anything herein to the contrary, with the consent of the
Employer and Trustee, any other corporation or entity, whether an affiliate or
subsidiary or not, may adopt this Plan and all of the provisions hereof, and
participate herein and be known as a Participating Employer, by a properly
executed document evidencing said intent and will of such Participating
Employer.

11.2     REQUIREMENTS OF PARTICIPATING EMPLOYERS

		
	 	         (a) Each such Participating Employer shall be required to use
the same Trustee as provided in this Plan.

		
	 	         (b) The Trustee may, but shall not be required to, commingle,
hold and invest as one Trust Fund all contributions made by
Participating Employers, as well as all increments thereof.

		
	 	         (c) Any expenses of the Plan which are to be paid by the
Employer or borne by the Trust Fund shall be paid by each
Participating Employer in the same proportion that the total amount
standing to the credit of all Participants employed by such
Employer bears to the total standing to the credit of all
Participants.

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11.3     DESIGNATION OF AGENT

                           Each Participating Employer shall be deemed to be a party to this Plan;
provided, however, that with respect to all of its relations with the Trustee
and Administrator for the purpose of this Plan, each Participating Employer
shall be deemed to have designated irrevocably the Employer as its agent.
Unless the context of the Plan clearly indicates the
contrary, the word “Employer” shall be deemed to include each
Participating Employer as related to its adoption of the Plan.

11.4     EMPLOYEE TRANSFERS

                           In the event an Employee is transferred between Participating Employers,
accumulated service and eligibility shall be carried with the Employee
involved. No such transfer shall effect a termination of employment hereunder,
and the Participating Employer to which the Employee is transferred shall
thereupon become obligated hereunder with respect to such Employee in the same
manner as was the Participating Employer from whom the Employee was
transferred.

11.5     PARTICIPATING EMPLOYER CONTRIBUTION AND FORFEITURES

                           Any contribution or Forfeiture subject to allocation during each Plan Year
shall be allocated only among those Participants of the Employer or
Participating Employers making the contribution or by which the forfeiting
Participant was employed. However, if the contribution is made, or the
forfeiting Participant was employed, by an Affiliated Employer, in which event
such contribution or Forfeiture shall be allocated among all Participants of
all Participating Employers who are Affiliated Employers in accordance with the
provisions of this Plan. On the basis of the information furnished by the
Administrator, the Trustee may keep separate books and records concerning the
affairs of each Participating Employer hereunder and as to the accounts and
credits of the Employees of each Participating Employer. The Trustee may, but
need not, register Contracts so as to evidence that a particular Participating
Employer is the interested Employer hereunder, but in the event of an Employee
transfer from one Participating Employer to another, the employing
Participating Employer shall immediately notify the Trustee thereof.

11.6     AMENDMENT

                           Amendment of this Plan by the Employer at any time when there shall be a
Participating Employer hereunder shall only be by the written action of each
and every Participating Employer and with the consent of the Trustee where such
consent is necessary in accordance with the terms of this Plan.

11.7     DISCONTINUANCE OF PARTICIPATION

                           Any Participating Employer shall be permitted to discontinue or revoke its
participation in the Plan at any time. At the time of any such discontinuance
or revocation, satisfactory evidence thereof and of any applicable conditions
imposed shall be delivered to the Trustee. The Trustee shall thereafter
transfer, deliver and assign Contracts and other Trust Fund assets allocable to
the Participants of such Participating Employer to such new trustee as shall

82

 

have been designated by such Participating Employer, in the event that it has
established a separate qualified retirement plan for its employees provided,
however, that no such transfer shall be made if the result is the elimination
or reduction of any “Section 411(d)(6) protected benefits” as described in
Section 8.1(c). If no successor is designated, the Trustee shall retain such
assets for the Employees of said Participating Employer pursuant to the
provisions of Article VII hereof. In no such event shall any part of the corpus
or income of the Trust Fund as it relates to such Participating Employer be
used for or diverted for purposes other than for the exclusive benefit of the
Employees of such Participating Employer.

11.8     ADMINISTRATOR’S AUTHORITY

                           The Administrator shall have authority to make any and all necessary rules
or regulations, binding upon all Participating Employers and all Participants,
to effectuate the purpose of this Article.

                           IN WITNESS WHEREOF, this Plan has been executed the day and year first
above written.

	 	 	 
	 	 	
Ameritrade Holding Corporation
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
By
	 	 	

	 	 	
Title
	 	 	

	 	 	        EMPLOYER
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
INTRUST Bank, N.A.
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
By
	 	 	

	 	 	
Title
	 	 	

	 	 	        TRUSTEE

83

 

PARTICIPATION AGREEMENT

Ameritrade, Inc., by executing this Participation Agreement, elects to continue
to be a Participating Employer in the Ameritrade Holding Corporation Associates
401(k) Profit Sharing Plan and Trust (“Plan”), as if the Participating Employer
were a signatory to this amendment and restatement. The Participating Employer
adopts, accepts, and agrees to be bound by, all of the elections granted under
the provisions of the Plan as reflected in this amendment and restatement. The
Participating Employer’s adoption of this Plan and execution of this
Participation Agreement constitutes the adoption of the amendment and
restatement of the Plan.

	 	 	 
	 	 	
Ameritrade, Inc.
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
By:
	 	 	

	 	 	
Name:
	 	 	

	 	 	
Title:
	 	 	

	 	 	
Date:
	 	 	

Acceptance by Ameritrade Holding Corporation as the signatory Employer and by
INTRUST Bank, N. A. as the Trustee.

	 	 	 
	Ameritrade Holding Corporation	 	
INTRUST Bank, N. A.
	
	
	
	

	 	 	 
	
	
	
	

	By:	 	
By:
	
	 	

	Name:	 	
Name:
	
	 	

	Title:	 	
Title:
	
	 	

	Date:	 	
Date:
	
	 	

84

 

PARTICIPATION AGREEMENT

Ameritrade Services Co., Inc., by executing this Participation Agreement,
elects to continue to be a Participating Employer in the Ameritrade Holding
Corporation Associates 401(k) Profit Sharing Plan and Trust (“Plan”), as if the
Participating Employer were a signatory to this amendment and restatement. The
Participating Employer adopts, accepts, and agrees to be bound by, all of the
elections granted under the provisions of the Plan as reflected in this
amendment and restatement. The Participating Employer’s adoption of this Plan
and execution of this Participation Agreement constitutes the adoption of the
amendment and restatement of the Plan.

	 	 	 
	 	 	
Ameritrade Services Co., Inc.
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
By:
	 	 	

	 	 	
Name:
	 	 	

	 	 	
Title:
	 	 	

	 	 	
Date:
	 	 	

Acceptance by Ameritrade Holding Corporation as the signatory Employer and by
INTRUST Bank, N. A. as the Trustee.

	 	 	 
	Ameritrade Holding Corporation	 	
INTRUST Bank, N. A.
	
	
	
	

	 	 	 
	
	
	
	

	By:	 	
By:
	
	 	

	Name:	 	
Name:
	
	 	

	Title:	 	
Title:
	
	 	

	Date:	 	
Date:
	
	 	

85

 

PARTICIPATION AGREEMENT

Financial Passport, Inc., by executing this Participation Agreement, elects to
continue to be a Participating Employer in the Ameritrade Holding Corporation
Associates 401(k) Profit Sharing Plan and Trust (“Plan”), as if the
Participating Employer were a signatory to this amendment and restatement. The
Participating Employer adopts, accepts, and agrees to be bound by, all of the
elections granted under the provisions of the Plan as reflected in this
amendment and restatement. The Participating Employer’s adoption of this Plan
and execution of this Participation Agreement constitutes the adoption of the
amendment and restatement of the Plan.

	 	 	 
	 	 	
Financial Passport, Inc.
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
By:
	 	 	

	 	 	
Name:
	 	 	

	 	 	
Title:
	 	 	

	 	 	
Date:
	 	 	

Acceptance by Ameritrade Holding Corporation as the signatory Employer and by
INTRUST Bank, N. A. as the Trustee.

	 	 	 
	Ameritrade Holding Corporation	 	
INTRUST Bank, N. A.
	
	
	
	

	 	 	 
	
	
	
	

	By:	 	
By:
	
	 	

	Name:	 	
Name:
	
	 	

	Title:	 	
Title:
	
	 	

	Date:	 	
Date:
	
	 	

86

 

PARTICIPATION AGREEMENT

OnMoney Financial Services Corporation, by executing this Participation
Agreement, elects to continue to be a Participating Employer in the Ameritrade
Holding Corporation Associates 401(k) Profit Sharing Plan and Trust (“Plan”),
as if the Participating Employer were a signatory to this amendment and
restatement. The Participating Employer adopts, accepts, and agrees to be
bound by, all of the elections granted under the provisions of the Plan as
reflected in this amendment and restatement. The Participating Employer’s
adoption of this Plan and execution of this Participation Agreement constitutes
the adoption of the amendment and restatement of the Plan.

	 	 	 
	 	 	
OnMoney Financial Services Corporation
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
By:
	 	 	

	 	 	
Name:
	 	 	

	 	 	
Title:
	 	 	

	 	 	
Date:
	 	 	

Acceptance by Ameritrade Holding Corporation as the signatory Employer and by
INTRUST Bank, N. A. as the Trustee.

	 	 	 
	Ameritrade Holding Corporation	 	
INTRUST Bank, N. A.
	
	
	
	

	 	 	 
	
	
	
	

	By:	 	
By:
	
	 	

	Name:	 	
Name:
	
	 	

	Title:	 	
Title:
	
	 	

	Date:	 	
Date:
	
	 	

87

 

PARTICIPATION AGREEMENT

TradeCast, Inc., by executing this Participation Agreement, elects to continue
to be a Participating Employer in the Ameritrade Holding Corporation Associates
401(k) Profit Sharing Plan and Trust (“Plan”), as if the Participating Employer
were a signatory to this amendment and restatement. The Participating Employer
adopts, accepts, and agrees to be bound by, all of the elections granted under
the provisions of the Plan as reflected in this amendment and restatement. The
Participating Employer’s adoption of this Plan and execution of this
Participation Agreement constitutes the adoption of the amendment and
restatement of the Plan.

	 	 	 
	 	 	
TradeCast, Inc.
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
By:
	 	 	

	 	 	
Name:
	 	 	

	 	 	
Title:
	 	 	

	 	 	
Date:
	 	 	

Acceptance by Ameritrade Holding Corporation as the signatory Employer and by
INTRUST Bank, N. A. as the Trustee.

	 	 	 
	Ameritrade Holding Corporation	 	
INTRUST Bank, N. A.
	
	
	
	

	 	 	 
	
	
	
	

	By:	 	
By:
	
	 	

	Name:	 	
Name:
	
	 	

	Title:	 	
Title:
	
	 	

	Date:	 	
Date:
	
	 	

88

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